Deck 3:  Stakeholders and Corporate Social Responsibility

Question 1

In 1931, the concept of stakeholder theory was first presented by A.A. Berle who suggested that managers should be guardians of the investments of the organization. The expansion of this custodianship to include the wider community was developed by _________ and is the genesis of current stakeholder theory.

A) Edward Freeman
B) E. Merrick Dodd, Jr.
C) Milton Friedman
D) Archie Carroll

Answer 1

B

Question 2

_____________ is the degree to which the issues raised by the stakeholder must be dealt with in a time-sensitive manner.

A) Power
B) Legitimacy
C) Urgency
D) Reliability

Answer 2

C

Question 3

Traditional stakeholders for a firm include all of the following except

A) Employees
B) Suppliers
C) The government
D) Competitors

Answer 3

D

Question 4

_______________ reporting is a concept that is receiving momentum as a way of satisfying the reporting and disclosure needs of various stakeholder groups, although many companies refer to the concept as an accountability report.

A) Double-bottom line
B) Double-top line
C) Triple-top line
D) Triple-bottom line

Question 5

_____________ managers not only meet the minimum legal standards but are proactive in presenting ethical leadership to the firm's employees and other stakeholders.

A) Emoral
B) Immoral
C) Amoral
D) Moral

Question 6

______________ managers focus only on their own goals and the goals of the company and consider legal requirements as constants or barriers that are ignored when their corporate actions are implemented.

A) Emoral
B) Immoral
C) Amoral
D) Moral

Question 7

_____________ is the extent to which the organization can influence or impose its will on the stakeholder group.

A) Power
B) Legitimacy
C) Urgency
D) Reliability

Question 8

A ____________ is a new type of corporation that addresses issues related to financial, social, and environmental objectives.

A) Customer corporation
B) Stakeholder corporation
C) Benefit corporation
D) Management corporation

Question 9

______________ is defined as assigning a function or task that was previously done within a company to an external third party.

A) Insourcing
B) Macrosourcing
C) Microsourcing
D) Outsourcing

Question 10

Which coffee shop paid $1.26 per pound for fair trade coffee beans in the case?

A) Mountain People's Co-Op
B) Whole Foods
C) Costa Coffee
D) Starbucks

Question 11

Which of the following is not one of the key trust factors between the firm and the stakeholder____________?

A) Rational prediction of outcomes
B) Emotion
C) Financial return
D) A clear moral element

Question 12

A(n) _____________ manager is a manager who would be considered ethically neutral and who does not focus proactively on ethical issues.

A) Emoral
B) Immoral
C) Amoral
D) Moral

Question 13

The concept of triple-bottom line was first introduced by _______________ in his book Cannibals With Forks: The Triple Bottom Line of Twenty-First Century Business.

A) John Elkington
B) Adam Smith
C) Milton Friedman
D) Michael Porter

Question 14

The article titled "The Social Responsibility of Business Is to Increase Its Profits" that was published in the New York Times Magazine was written by ________________.

A) Edward Freeman
B) E. Merrick Dodd, Jr.
C) Milton Friedman
D) Archie Carroll

Question 15

The CEO of FreeTrade USA is ____________ who stated that the program allows the farmers to deal directly with the wholesaler, eliminating up to five different middlemen that could include a local buyer, a miller, an exporter, a shipper, and an importer.

A) Paul Rice
B) Owen D. Young
C) Sandy Weil
D) A.A. Berle

Question 16

In the opening case, _______________ is the organization that certifies companies that can have the Fair Trade logo on their products.

A) WorldFair
B) CountryFair
C) Fair Trade USA
D) MultiFair

Question 17

The assumption that the actions of the corporation are desirable, proper, or appropriate within the limits of the corporation is called _______________.

A) Power
B) Legitimacy
C) Urgency
D) Reliability

Question 18

Suppliers are key players in the stakeholder spectrum. Intel corporation has a developed a code of conduct. Which of these is not a component of the code?

A) The supplier must be in strict compliance with the law
B) The supplier must be U.S. registered
C) The supplier must have respect for competition
D) The supplier must not have any conflicts of interest with other parties

Question 19

Which of the following is NOT one of the three types of moral values according to Archie Carroll?

A) Emoral
B) Immoral
C) Amoral
D) Moral

Question 20

______________ argued that in a free market system in which people are allowed to own property, the executives of the company need to be considered as the employees hired by the shareholders.

A) Edward Freeman
B) E. Merrick Dodd, Jr.
C) Milton Friedman
D) Archie Carroll

Question 21

Nongovernmental Organizations (NGOs) are increasingly important stakeholders to firms as influencers, on such aspects as human rights, the natural environment, and in the emerging world. Which is a not a factor to consider when working with NGOs?

A) Transaction costs
B) Brand impact
C) Competitive position
D) Financial stability

Question 22

________________ uses the potential synergies that can be created between their operational activities and their philanthropic activities.

A) Constricted philanthropy
B) Peripheral philanthropy
C) Dispersed philanthropy
D) Strategic philanthropy

Question 23

Which of the following types of firms recognizes the current and future benefits of interactions with various stakeholders?

A) Skeptical firm
B) Pragmatic firm
C) Engaged firm
D) Idealistic firm

Question 24

All of the following are strategic configurations related to corporate philanthropy except

A) Targeted philanthropy
B) Peripheral philanthropy
C) Dispersed philanthropy
D) Strategic philanthropy

Question 25

Based on an audit done by Verité in 2004, ______________ of audited firms in India were in violation of minimum wage rules.

A) 21%
B) 36%
C) 60%
D) 67%

Question 26

The relationship between stakeholders and the firm is based on mutual moral and ethical commitments.

Question 27

Total corporate social responsibilities are based on economic, legal, ethical, and discretionary responsibilities.

Question 28

A firm which has a high level of commitment from both a market and competence orientation is described as having a(n) ________________ configuration.

A) Constricted philanthropy
B) Peripheral philanthropy
C) Dispersed philanthropy
D) Strategic philanthropy

Question 29

______________ responsibilities are those responsibilities in which society does not have a clear message to present to businesses as to what their course of action should be.

A) Entrenched
B) Endured
C) Socially balanced
D) Discretionary

Question 30

A firm whose philanthropy focus is high for competence orientation and low for market orientation is described as a(n) _________________ configuration.

A) Constricted philanthropy
B) Peripheral philanthropy
C) Dispersed philanthropy
D) Strategic philanthropy

Question 31

____________ is concerned with the general public's perceptions and beliefs about the firm.

A) Corporate image
B) Corporate reputation
C) Corporate identity
D) Corporate trust

Question 32

Which of the following approaches is not a model of employee engagement with CSR ?

A) Transactional
B) Philanthropic
C) Relational
D) Developmental

Question 33

Corporate social responsibility can be defined as the obligation companies have to develop and implement courses of action that aid in social issues that impact society.

Question 34

A moral manager does not focus proactively on ethical issues nor does he or she try to purposely go against the social and legal norms that are expected of the firm by society.

Question 35

According to the three-dimensional model of corporate performance presented by Archie Carroll, all of the following are questions that should be asked except

A) What components should be included in the definition of corporate social responsibility?
B) What are the overall external social issues that the firm must acknowledge?
C) How can the firm maximize profitability?
D) How will the firm address the social issues that affect its operations?

Question 36

_______________ CSR is the integration of CSR philosophy into the decision-making processes of the firm

A) Project-oriented
B) Quality-oriented
C) Strategic
D) Transformational

Question 37

Which of the following types of philanthropy configuration is based on a firm having both a low market and low competence orientation?

A) Constricted philanthropy
B) Peripheral philanthropy
C) Dispersed philanthropy
D) Strategic philanthropy

Question 38

_______________ organizations use stakeholder demands and expectations as the core of the corporate philanthropy.

A) Targeted philanthropy
B) Peripheral philanthropy
C) Dispersed philanthropy
D) Strategic philanthropy

Question 39

An amoral manager is one who not only does not care how his or her decisions impact the stakeholders, but the actions are actively counter intuitive to what is the right and ethical thing to do.

Question 40

The underlying motivation of the Benefit Corporation concept is that corporations can focus on both shareholder value and provide social and environmental goods to society.

Question 41

A benefit corporation is an organization that integrates financial, social, and environmental objectives.

Question 42

The relationship between the firm and its suppliers is solely commercial and financially based.

Question 43

The common goal of most NGO campaigns is to use customer and public pressure to force the corporation to adjust its strategic focus.

Question 44

Compare and contrast the different roles of customers, suppliers, and NGOs as stakeholders.

Question 45

The triple bottom-line is not just a link between stakeholders and the firm but is also a valuable tool the firm uses to enhance its long-term sustainability from both a financial and a nonfinancial perspective.

Question 46

The customer-firm relationship is based on ethical principles as well as commercial criteria.

Question 47

In a short essay, define corporate social responsibility, and discuss its components.

Question 48

In a short essay, define power, urgency and legitimacy with respect to stakeholder theory.

Question 49

In a short essay, define and discuss the difference between immoral, amoral, and moral management styles.

Question 50

In a short essay, list and discuss the four types of corporate philanthropy.

Question 51

A low level of trust allows stringent corporate governance structures to be developed to monitor the actions of the top-level managers.

Question 52

Placing the firm's support toward a single philanthropic cause via public relations or advertising is not strategic philanthropy. In fact, this "cause-related" marketing can backfire and lead to mistrust and suspicion about the true motives of the firm.

Question 53

Global CSR incudes aspects of economic responsibility, legal responsibility, ethical responsibility, and global philanthropic responsibility.