Deck 2: Orporate Citi7cnship: Social Responsibility Ferformancc, Sustolinability

Question 1

A survey done by Walker Information shows that the public believes that CSR does not factor into a company's reputation at all.

Answer 1

False

Question 2

One of the biggest advances in corporate social performance is that all agree that performance criteria need only be responsive and not anticipatory.

Answer 2

False

Question 3

A society more satisfied with corporate social responsiveness,performance,and citizenship will invariably have reduced criticism of business.

Answer 3

False

Question 4

Friedman never proposed that businesses had any obligation to act ethically.

Question 5

Proponents of the concept of corporate social responsiveness believe that the focus of corporate social responsibility on accountability or obligation is not dynamic enough to describe business's willingness and activity to respond to social demands.

Question 6

An argument for corporate social responsibility is that it helps business compete in the global economy.

Question 7

The CSR Pyramid is a stakeholder model--that is,each of its components addresses different stakeholders.

Question 8

Research has indicated that improvements in corporate social performance are associated with improved fmancial results.

Question 9

In practical terms,the socially responsible firm mw;t be involved in philanthropy,as society expects it.

Question 10

Carroll's Corporate Social Performance Model helps managers understand that social responsibility is separate and distinct from financial performance.

Question 11

The company town,in which a major employer builds homes and commercial buildings,and provides the goods and services needed by its employees,is an example of paternalistic social responsibility.

Question 12

Corporate social performance emphasizes the financial results of what the finn hopes to accomplish.

Question 13

In Carroll's four-part defmition of corporate social responsibility,ethical responsibilities are required of business only by society,and not by businesses themselves.

Question 14

Social screening is the mechanism by which socially conscious investors choose their investment advisors.

Question 15

Corporate social responsiveness is focused on the action phase of management response to social demands.

Question 16

The marketplace in the classical view of economics,while being a good allocator of goods and services,does not do a good job of ensuring that business always acts fairly and ethically.

Question 17

The corporate social performance concept has not yet spread to the business community.

Question 18

Philanthropy is the term by Adam Smith in Wealth of Nations to describe the operation of self interest resulting in the good of society.

Question 19

In order to operate with a true stakeholder perspective,firms must accept the multiple bottom line view.

Question 20

Social responsible investing is a very new concept,originating in the early 1990s.

Question 21

Which of the following is not one of the responsibilities in Carroll's four-part defrnition of corporate social responsibility?

A)economic
B)social
C)legal
D)philanthropic

Question 22

The part of corporate social responsibility that focuses on business's voluntary activities which are not normally expected of a firm is

A)economic.
B)legal.
C)ethical.
D)philanthropic.

Question 23

The classical view of economics holds that a society can best determine its needs and wants through

A)a centrally planned economy.
B)govermnent owned factors of production.
C)democracy.
D)the marketplace.

Question 24

Corporate social responsiveness emphasizes

A)obligation and accountability.
B)action and activity.
C)outcomes and results.
D)socially responsible investing.

Question 25

The portrays the concurrent fulfilhnent of the firm's economic,legal,ethical and philanthropic responsibilities

A)Pyramid of Corporate Social Responsibility
B)Corporate Citizenship concepts
C)Social Response Cycle
D)None of these

Question 26

The concept of business responsibility that is based on concern for the various groups that are affected by a business is known as the

A)legal model.
B)classical economic model.
C)ethical model.
D)stakeholder model.

Question 27

The socially responsible frrm should strive to do all of the following EXCEPT

A)Make a profit
B)obey the preferred laws
C)Be ethical
D)Be a good corporate citizen

Question 28

The early definition of corporate social responsibility was

A)seriously considering the impact of the company's actions on society.
B)maximizing profits.
C)accomplishing the finn's social action goals.
D)that the corporation had not only economic and legal obligations,but also certain responsibilities to society which extended beyond those obligations.

Question 29

The part of corporate social responsibility that focuses on fair prices and profits is

A)economic.
B)legal.
C)ethical.
D)philanthropic.

Question 30

The fact that business leaders in the late 19th century felt they had to show that large corporations were a force for social good is an example of

A)the iron cage of rationality.
B)socialism.
C)paternalism.
D)the iron law of oligarchy.

Question 31

Which of the following practices is not a modification of the classical economic model?

A)philanthropy
B)community obligations
C)owner contra I
D)paternalism

Question 32

Corporate social performance emphasizes

A)obligation and accountability.
B)action and activity.
C)outcomes and results.
D)socially responsible investing.

Question 33

The modern era of corporate social responsibility (from the 1950s to today)

A)emphasizes general awareness of social and moral concerns.
B)has seen decreased awareness of the issue.
C)emphasizes specific issues.
D)is marked by legislation requiring ethical business behavior.

Question 34

Corporate social responsibility emphasizes

A)obligation and accountability.
B)action and activity.
C)outcomes and results.
D)socially responsible investing.

Question 35

All of the following are arguments commonly made against corporate social responsibility except

A)social problems should be addressed first by the free-market economic system,and then,if necessary,by goverrnnent.
B)business is not equipped to handle social activities.
C)business already has enough power--it should not be given more.
D)business did not create today's social problems,so it should not be expected to solve them.

Question 36

The part of corporate social responsibility that focuses on fulfilling the social contract by following the law is

A)economic.
B)legal.
C)ethical.
D)philanthropic.

Question 37

The most efficient use of corporate wealth to benefit the public is though contributions to charity and other worthy causes which is called

A)taxation.
B)philanthropy.
C)paternalism.
D)corporate welfare.

Question 38

The concept of business responsibility based on using laws to constrain business behavior is referred to as the

A)neoclassical economic model.
B)socialist model.
C)legal model.
D)stakeholder model.

Question 39

The part of corporate social responsibility that focuses on activities and practices that are expected by society,but not codified into law,is

A)economic.
B)legal.
C)ethical.
D)philanthropic.

Question 40

The traditional concept of business responsibility in the United States is based on

A)democracy.
B)socialism.
C)the classical economic model.
D)the neoclassical economic model.

Question 41

The Triple Bottom Line encompasses all of the following spheres of performance except

A)economic.
B)social.
C)envirornnental.
D)philanthropic.

Question 42

The Triple Bottom Line concept focuses on economic,social,and envirornnental performance,the key elements of

A)sustainability.
B)growth.
C)corporate social responsibility.
D)corporate social responsiveness.

Question 43

Which of the following is not an argument commonly used in favor of corporate social responsibility?

A)Business is best equipped to handle social problems.
B)It is in the long range interest of business to be socially responsible.
C)Being socially responsible helps ward off goverrnnent intervention and regulation.
D)Business has the resources to combat social problems.

Question 44

Financial returns from socially conscious investment funds are

A)competitive with returns from other investments.
B)higher than returns from other investments.
C)slightly lower than returns from other investments.
D)much lower than returns from other investments.

Question 45

Which of the following is not a characteristic of a socially responsible company?

A)makes products that are safe
B)makes above average financial returns
C)does not pollute air or water
D)recycles within the company

Question 46

The argument against CSR focuses on the consequence of the requirement that business must internalize costs that it formerly passed on to society in the form of dirty air and unsafe products,the costs of which might necessitate raising prices.

A)Resources Available
B)Business not equipped
C)Dilutes Business purpose
D)Global Competitiveness

Question 47

Which entity publishes "The 100 Best Companies to Work For"?

A)The Conference Board
B)Fortune Magazine
C)Wait Disney
D)The U.S.Chamber of Commerce

Question 48

The view of corporate citizenship that embraces all that is implied in the concepts of social responsibility,responsiveness,and performance is the view.

A)unlimited
B)broad
C)narrow
D)limited

Question 49

The narrow view of corporate citizenship focuses solely on

A)ecological issues.
B)employee relations.
C)corporate community relations.
D)stakeholder management.

Question 50

Carroll's corporate social performance model can be used in all of the ways listed below except

A)providing a conceptualization that could lead to better managed social performance.
B)providing answers to specific social problems.
C)using it as a planning tool.
D)identifying categories within which the organization can be situated.

Question 51

The first and primary argument for corporate social responsibility is

A)it is a way to gain more power.
B)business is best equipped to handle social problems.
C)it is in business's long range interest to be socially responsible.
D)the free-market economic system has proven to be ineffective in dealing with social problems.

Question 52

The relationship between corporate social performance and financial performance is viewed from three different perspectives.The most popular view is based on the belief that

A)socially responsible firms are more fmancially profitable.
B)more profitable firms have the ability to be more socially responsible.
C)social responsibility and financial performance are inter-related and affect each other.
D)there is no relationship between social responsibility and fmancial performance.

Question 53

The relationship between corporate social performance and financial performance is viewed from three different perspectives.The perspective that views social responsibility as a "fair weather" concept

A)has been studied extensively.
B)views social responsibility as driven by the frrm's fmancial performance.
C)is the most popular of the three perspectives.
D)sees an interactive relationship among social performance,financial performance,and corporate reputation.

Question 54

Which entity publishes annual "World's Most Admired Companies" rankings?

A)The Conference Board
B)Fortune Magazine
C)Wait Disney
D)The U.S.Chamber of Commerce

Question 55

According to the Business Case for CSR,a reason companies are becoming more socially responsible is all of the following except

A)Access to capital
B)Increased revenue
C)Cost savings
D)Customer demand

Question 56

is depicted as an action- oriented variant of CSR

A)Corporate Social Responsiveness
B)Corporate Social Responsibility
C)Corporate Societal Responsibility
D)Corporate Social Performance

Question 57

Benefits to companies of good corporate citizenship include all of the following except

A)improved employee relations.
B)improved customer relations.
C)improved business performance.
D)fewer goverrnnent regulations.

Question 58

Which of the following is not a dimension of Carroll's corporate social performance model?

A)social responsibility categories
B)funding sources
C)philosophy of social responsiveness
D)issues

Question 59

The relationship between corporate social performance and financial performance is viewed from three different perspectives.The symbiotic view

A)states that fmancial performance determines social performance.
B)high social performance leads to improved financial performance.
C)states that there is an interactive relationship among social performance,financial performance,and corporate reputation.
D)is synonymous with the contingency view of Husted.

Question 60

The book,The Civil Corporation,identifies four ways in which business fmns respond to social pressures.Which of the following is not one of those?

A)defensive approach
B)cost-benefit approach
C)strategic approach
D)stakeholder approach

Question 61

In Carroll's four-part defmition of corporate social responsibility,he includes philanthropic responsibilities,yet he describes these as voluntary or discretionary.Explain this seeming contrast between a responsibility and a voluntary
activity.

Question 62

In the 1890s,the Robber Barons began to use their personal wealth and the wealth accumulated by their corporations to enhance the social good.Their philanthropic activities were encouraged,in part,because public opinion was demanding that the government do something to limit their power.Is this type of activity still occurring in
the United States? Why or why not?

Question 63

Distinguish between the concepts of corporate social responsibility,corporate social responsiveness,corporate social
performance,and corporate citizenship.How are these ideas different from each other? How are they similar?

Question 64

Are the awards described in the textbook effective ways of promoting the idea of corporate social performance?
Why or why not?

Question 65

Explain why Business for Social Responsibility (BSR)was formed.

Question 66

One of the arguments that opponents of corporate social responsibility use is that business already has enough
power,so society should not grant it more power by relying on it to alleviate social problems.Evaluate this argument.

Question 67

Summarize the argumeut used to explain why the concept of corporate social responsiveness is an improvement over corporate social responsibility.

Question 68

The primary argument for corporate social responsibility states that for business to have a healthy climate in which to operate in the future,it must take current action to assure its long-term viability.Is this long-range self-interest
argument valid? Does it encompass all that society wants from business?

Question 69

The Generous Corporation argues that corporations began their philanthropic activities primarily out of self­ interest.By doing so,they are able to keep govermnent from intervening in their business activities and imposing more regulations on them.Assuming that this argument is valid,and the firms' motives are primarily self interested,evaluate whether or not the motives are important.That is,are fmns' philanthropic activities less valuable because
they are motivated by self interest? Explain your answer.

Question 70

Describe socially responsible investing.

Question 71

One of the arguments against corporate social responsibility is that by requiring more ofU.S.corporations,they may be put at a disadvantage relative to foreign competitors.Evaluate this argument.

Question 72

Which of the three bottom lines encompassed by the Triple Bottom Line do you consider most important? Explain
your answer.

Question 73

Explain the concept of "multiple bottom lines." Why do advocates of this approach prefer it over the traditional method of measuring the finn's fmancial performance?

Question 74

Discuss the methods used by Fortune magazine to determine how fmns are ranked as to Social Responsibility.Do you think the ranking is fair? Why or why not?

Question 75

Explain why the emergence of large corporations in the late 19th century helped shift society's view away from the
classical economic view.