Question 1
1. Which of the following is the most accurate statement regarding the merger of two big tobacco companies in the United States.
A. Evidence of social responsibility anti-smoking efforts is a requirement for the government to approve tobacco mergers pursuant to the Clayton Ac.
B. It may be in the long-term self-interest of the merged company to promote its new brand of e-cigarettes (electronic cigarettes) as a socially responsible “wellness” alternative to traditional tobacco products.
C. The merged company should avoid all socially responsible activities since they can be costly, and mergers are very expensive due to all the professional legal, accounting, and financial fees involved.
D. If the merged company is regarded as a “dominant” one in the market, the head of the Department of Health and Human Services cabinet department can require that the merged company engage in a lot of social responsibility activities.
0.5 points
Question 2
1. The U.S. government bans the sale in the United States of Whirly-Wheel, a child’s toy, which the government deems dangerous. For this reason, it is most accurate to say that it is:
Illegal to sell the toy outside the United States
Illegal and unethical to sell the toy outside of the United States
Legal but possibly immoral to sell the toy outside of the United States
Socially responsible to sell the toy outside of the U.S. if the manufacturer’s shareholders benefit.
0.5 points
Question 3
1. Chainsaw Charlie is the CEO of a big, successful corporate employer with a major presence in the community. The company pays its taxes and obeys the law. Charlie is asked by community leaders to get his company involved in some charitable and civic activities in the community. Chainsaw Charlie’s haughty and mocking response is: “Screw the museum! We pay our taxes, so let the government take care of the poor, the homeless, and the hungry. That’s not our job. But feel free to give you own money. Ha!” Chainsaw Charlie is acting:
a. In a socially irresponsible manner based on modern day notions and societal expectations of “corporate social responsibility.”
b. Legally since there generally is no legal obligation for business to help charities and get involved in civic affairs.
c. Immorally pursuant to Ethical Egoism if by being socially responsible in a prudent, smart, shrewd, and strategic manner would help and benefit Charlie and his company in the long-term.
d. All of the above.
0.5 points
Question 4
1. Silvano is a successful entrepreneur but his company is not involved in any civic affairs or charitable activities in the local community. Silvano likely could be characterized as:
Guilty of legal nonfeasance and subject to prosecution.
Immoral pursuant to the Last Resort principle for not “lending a hand” in the community.
Immoral pursuant to Legal Positivism.
Socially irresponsible.

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