Davis’s model is a list of 5 propositions that describe how and why businesses should adhere to the obligation to take action that protects and improves the welfare of society as well as of the organization: Show Proposition 1: SOCIAL RESPONSIBILITY ARISES FROM SOCIAL POWER. This proposition is derived from the understanding that a business has significant amount of influence on and power over various critical issues like Environment, Minority Employment, Neighbourhood Development etc., All business in the country primarily determines the various situations like employment,environment and overall atmosphere that the citizens get to live in. Since business has power and influence over the society, the society can and should hold the businesses responsible for social conditions that result from the exercise of the power. Proposition 2: BUSINESS SHALL OPERATE AS A 2 WAY OPEN SYSTEM, WITH OPEN RECEIPT OF INPUTS FROM SOCIETY AND OPEN DISCLOSURE OF ITS OPERATIONS TO THE PUBLIC. Business must be willing to listen to what must be done to sustain or improve social welfare. In turn, the society must be willing to listen to business reports on what is is doing to meet its social responsibilities. DAVIS suggests that there must be ongoing, honest and open communications between business and society’s representatives if the overall welfare of society’s representatives if the overall welfare of society is to be maintained or improved. Proposition 3: THE SOCIAL COSTS AND BENEFITS OF AN ACTIVITY, PRODUCT or SERVICE, SHALL BE THOROUGHLY CALCULATED AND CONSIDERED IN DECIDING WHETHER TO PROCEED WITH IT. The technical feasibility and economic profitability and the shot term and long term consequences of all business activities should be considered before undertaking them. Proposition 4: THE SOCIAL COSTS RELATED TO EACH ACTIVITY, PRODUCT OR SERVICE SHALL BE PASSED ON TO THE CUSTOMER: The proposition states that business cannot be expected to completely finance activities that may be socially advantageous but economically disadvantageous. The costs of maintaining socially desirable activities within business should be passed on to consumers through higher prices for the goods or services related to these activities. Proposition 5: BUSINESS INSTITUTIONS, AS CITIZENS, HAVE THE RESPONSIBILITY TO BECOME INVOLVED IN CERTAIN SOCIAL PROBLEMS THAT ARE OUTSIDE THEIR NORMAL AREAS OF OPERATION: – If a business possesses the expertise to solve a social problem with which it may not be directly associated, it should be held responsible for helping society solve that problem. Since the business eventually will reap an increased profit from a generally improved society, businesses should share in the responsibility of all citizenry to generally improve society. Which of the following is a benefit that is most closely associated with ethical behavior? Free Multiple Choice Answer: Answer: B Which of the following is the primary effect of teaching supervisors about the importance of ethics? Free Multiple Choice Answer: Answer: D According to the Davis model of corporate social responsibility,businesses need to help solve societal issues that may be outside their normal realm of action because: Free Multiple Choice Answer: Answer: C Which of the following is true about organizations whose employees are unethical? Multiple Choice Shelley is an accountant at an aerospace company that is going through a financial crisis.To show profits for the company,she uses a fund to transfer money from one account to another.However,this transfer is against right accounting standards.In this scenario,Shelley is guilty of: Multiple Choice In the context of the Davis model of corporate social responsibility,businesses must listen to the public to understand what can be done to improve society as a whole because businesses: Multiple Choice Which of the following is a proposition of the Davis model of corporate social responsibility? Multiple Choice Ethics is best defined as the: Multiple Choice The Davis model of corporate social responsibility states that the social costs related to each activity,product,or service shall be passed on to the consumer.This implies that: Multiple Choice Corporate social responsibility is best defined as the: Multiple Choice Ethical behavior is part of a range of behaviors that ensure: Multiple Choice In the context of benefits of ethical behavior,ethics helps in: Multiple Choice In the context of ethical behavior,the termbusiness ethics acts as an oxymoron when: Multiple Choice Companies that practice ethical behavior: Multiple Choice Which of the following is a disadvantage most closely associated with organizations whose employees are unethical? Multiple Choice In the context of the Davis model of corporate social responsibility,it is important for businesses to act in socially responsible ways because businesses: Multiple Choice Business decisions should not simply be focused on the degree of economic profit to be earned.There are other factors,including societal consequences,which need to be considered when making decisions about the direction of a business.To which proposition of the Davis model of corporate social responsibility does this strictly pertain? Multiple Choice Being an ethical organization helps in: Multiple Choice
Boris,a production manager at Flensel Inc.,asks his subordinates to learn how to distinguish what is morally right.In the context of corporate social responsibility,Boris is talking about the importance of _____. Multiple Choice Which of the following is true of business ethics? Multiple Choice What is Davis model?The Technology Acceptance Model (Davis, 1989), or TAM, posits that there are two factors that determine whether a computer system will be accepted by its potential users: (1) perceived usefulness, and (2) perceived ease of use.
What are the three concepts of social responsibility?there are three concepts of social responsibility: (1) profit responsibility, (2) stakeholder responsibility, and (3) societal responsibility. holds that companies have a simple duty: to maximize profits for their owners or stockholders.
What is corporate social responsibility quizlet?Corporate Social Responsibility. A manner of doing business that takes into account the economic, social and environmental impact of the company's actions.
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Which of the following is a proposition of the davis model of corporate social responsibility?
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