Questions: 25 Nation A builds a new highway next to citizens' properties. In the months following, littering as well as several highway accidents result in damage to the properties. The property owners war sue the government for damages, but are restrained by: Comity of Nations Sovereign Immunity Act of State Doctrine 26 Vivian's company is considering building a huge new department store in a small town. The community argues that the store will disrupt local commerce and harm local business owners. Vivian argues that the store will save money for customers and bring more jobs to the community. Which moral standard of social responsibility best fits the business's argument? Moral Minimum Standard Corporate Citizenship Moral Standard Stakeholder Theory Moral Standard Profit-Maximizing Moral Standard 27 Meg's company decided to build an additional factory in a small community. When the community started a protest because of the negative impact the factory would potentially have, Meg's company promised to prevent and pay for any negative impact to the community. It also offers to build a community park to balance out the negative impact the factory might cause. Which moral standard of social responsibility best explains the business's behavior? Stakeholder Theory Moral Standard Moral Minimum Standard Profit-Maximizing Moral Standard Corporate Citizenship Moral Standard

Question 25:

The property owners are restrained by Sovereign Immunity.

• Comity of Nations: This principle refers to the mutual recognition of legislative, executive, and judicial acts between different nations. It is not directly applicable to domestic legal issues such as property damage caused by a highway.

• Sovereign Immunity: This legal doctrine holds that a sovereign or state cannot commit a legal wrong and is immune from civil suit or criminal prosecution. In this context, it means that the government cannot be sued without its consent, which is why the property owners are restrained from suing for damages.

• Act of State Doctrine: This doctrine is a principle in international law that a nation is immune from being sued in the courts of another country for its sovereign acts. It is not relevant to the domestic issue described.

Question 26:

The moral standard of social responsibility that best fits the business's argument is the Profit-Maximizing Moral Standard.

• Moral Minimum Standard: This standard suggests that businesses should operate within the law and make a profit while avoiding harm. It does not specifically address the benefits of saving money for customers or creating jobs.

• Corporate Citizenship Moral Standard: This standard emphasizes the role of businesses in contributing positively to society and the environment, beyond just making a profit. While it could relate to job creation, it is broader than the argument presented.

• Stakeholder Theory Moral Standard: This theory focuses on balancing the interests of all stakeholders, including employees, customers, and the community. While it considers the community's concerns, it does not specifically align with the argument of saving money and creating jobs.

• Profit-Maximizing Moral Standard: This standard suggests that the primary responsibility of a business is to maximize profits for its shareholders. The argument that the store will save money for customers and bring more jobs aligns with this standard, as it focuses on economic benefits.

Question 27:

The moral standard of social responsibility that best explains the business's behavior is the Stakeholder Theory Moral Standard.

• Stakeholder Theory Moral Standard: This standard emphasizes considering the interests and well-being of all stakeholders, including the community. By promising to prevent and pay for any negative impact and offering to build a community park, the company is addressing the concerns of the community, which aligns with this standard.

• Moral Minimum Standard: This standard involves doing the least harm and operating within the law. While the company's actions go beyond the minimum by offering additional benefits, this standard does not fully capture the proactive engagement with the community.

• Profit-Maximizing Moral Standard: This standard focuses on maximizing profits, which is not the primary focus of the company's actions in this scenario, as they are addressing community concerns.

• Corporate Citizenship Moral Standard: This standard involves businesses acting as responsible citizens by contributing positively to society. While the company's actions could be seen as part of corporate citizenship, the specific focus on stakeholder interests aligns more closely with the Stakeholder Theory.