BA 300 COMPREHENSIVE EXAMINATION
GUIDE 2026 COMPLETE QUESTIONS AND
ANSWERS
◉ Normative corporate social responsibility.
Answer: How corporations should engage in CSR programs because
it's the right or moral thing to do, even at the expense of profits
(bank account for child's education and return went down bc bank
was using money)
◉ Arguments against Normative CSR.
Answer: - Violates owners' property rights
- Presumes that managers have better moral skills than
shareholders
- Weakens management's accountability to shareholders
- Distracts management from its primary purpose
◉ Impact of Normative CSR.
Answer: - Going Concern: Shareholders' expectations are
undermined, and owners of record at announcement pay for entire
CSR redirection
- Startup: Investors purchase IPO shares with full knowledge of
potential for lower market price
, ◉ Stakeholder Theory.
Answer: ethical theory stating that social responsibility is paying
attention to the interest of every affected stakeholder in every aspect
of a firm's operation
◉ Ethical Justifications.
Answer: - Powerful corporations can help alleviate global
inequalities
- Stakeholder approach leads to greater liberty for the vulnerable
- Capitalism will only be efficient if the masses buy into it
- Consider non-Western values: Economic actors should pursue what
is sufficent
◉ The Power Argument.
Answer: - a corporation's purpose is to "use its resources to advance
the interest of all those who are most affected by its corporate
activities"
- "with great power comes great responsibility"
- "the limited capacities of government and the power and influence
of corporations require that the corporations address these social
problems"
◉ A key CSR Distinction.
GUIDE 2026 COMPLETE QUESTIONS AND
ANSWERS
◉ Normative corporate social responsibility.
Answer: How corporations should engage in CSR programs because
it's the right or moral thing to do, even at the expense of profits
(bank account for child's education and return went down bc bank
was using money)
◉ Arguments against Normative CSR.
Answer: - Violates owners' property rights
- Presumes that managers have better moral skills than
shareholders
- Weakens management's accountability to shareholders
- Distracts management from its primary purpose
◉ Impact of Normative CSR.
Answer: - Going Concern: Shareholders' expectations are
undermined, and owners of record at announcement pay for entire
CSR redirection
- Startup: Investors purchase IPO shares with full knowledge of
potential for lower market price
, ◉ Stakeholder Theory.
Answer: ethical theory stating that social responsibility is paying
attention to the interest of every affected stakeholder in every aspect
of a firm's operation
◉ Ethical Justifications.
Answer: - Powerful corporations can help alleviate global
inequalities
- Stakeholder approach leads to greater liberty for the vulnerable
- Capitalism will only be efficient if the masses buy into it
- Consider non-Western values: Economic actors should pursue what
is sufficent
◉ The Power Argument.
Answer: - a corporation's purpose is to "use its resources to advance
the interest of all those who are most affected by its corporate
activities"
- "with great power comes great responsibility"
- "the limited capacities of government and the power and influence
of corporations require that the corporations address these social
problems"
◉ A key CSR Distinction.
