Question 1

Which of the following exemplifies what the descriptive approach to corporate social responsibility is most concerned with?&#10;A)A large retail chain pays its employees a living wage.&#10;B)A small business implements a recycling program.&#10;C)A firm focuses on the fluid process by which value is created for multiple stakeholders.&#10;D)A manufacturing company requires its suppliers to use fair labor practices.

Accepted Answer

The descriptive approach to corporate social responsibility (CSR) is concerned with how companies are actually behaving and operating in regards to CSR, rather than based on a normative or prescriptive approach. Option C aligns with this approach because it focuses on how a firm creates value for multiple stakeholders, which is a descriptive way of looking at CSR. The other options involve specific actions that companies may take to engage in CSR, which is not the primary focus of the descriptive approach.

Question 2

A corporation CANNOT do which of the following?&#10;A)sue and be sued&#10;B)be criminally prosecuted&#10;C)own property&#10;D)create law

Accepted Answer

A corporation cannot create law. That is the role of the legislative branch of government.

Question 3

In Buckley v.Valeo, the U.S.Supreme Court ruled explicitly that ______.&#10;A)corporations have different tax liabilities than individuals&#10;B)corporations and individuals have common tax liabilities&#10;C)religious institutions cannot make political donations&#10;D)political donations are free speech

Accepted Answer

In Buckley v. Valeo, the U.S. Supreme Court ruled that political donations are a form of free speech that is protected under the First Amendment of the U.S. Constitution. The court struck down certain provisions of the Federal Election Campaign Act that imposed limits on individual campaign contributions and independent expenditures by individuals, arguing that such limitations violated the constitutional rights of citizens to express themselves through political action. This ruling has been influential in shaping campaign finance laws in the United States, and has been the subject of ongoing debate and controversy.

Question 4

What did the Citizens United case decide?&#10;A)Corporations enjoy the same First Amendment rights to free speech as individuals.&#10;B)The Bill of Rights applies to corporations.&#10;C)Corporations may vote.&#10;D)Corporations have a duty to protect their employees from discrimination.

Accepted Answer

The Citizens United case decided that corporations enjoy the same First Amendment rights to free speech as individuals, specifically in the context of political spending. This decision paved the way for more corporate spending in political campaigns, leading to concerns about the influence of money in politics.

Question 5

In the United States, the idea of the benefit corporation was established in which year?&#10;A)1810&#10;B)1910&#10;C)1970&#10;D)2010

Accepted Answer

The idea of the benefit corporation was established in 2010 in the United States when Maryland became the first state to legally recognize this new type of corporation.

Question 6

If we are going to argue that a corporation has ______ we would like it to fulfill, we also need to grant ______ that protect its ability to exist and do what it is designed to do.&#10;A)responsibilities; rights&#10;B)rights; responsibilities&#10;C)purposes; rights&#10;D)responsibilities; immunities

Accepted Answer

If we expect a corporation to have responsibilities, we must also grant it rights that allow it to fulfill those responsibilities. However, this does not mean that corporations should be immune from accountability for actions that violate ethical or legal standards. Therefore, granting corporations certain rights and protections should not absolve them of their responsibilities to society.

Question 7

Corporate governance is regulated by ______.&#10;A)the federal government&#10;B)the states&#10;C)the cities in which corporations reside&#10;D)the corporations themselves

Accepted Answer

Corporate governance is primarily regulated by the states in the United States, as corporations are chartered at the state level and state laws govern corporate structure and behavior.

Question 8

A corporation's ______ is its responsibilities and obligations as determined by corporate law and founding corporate charters.&#10;A)direction&#10;B)general goal&#10;C)public purpose&#10;D)main objective

Accepted Answer

The term "public purpose" reflects a corporation's legal and ethical responsibilities toward society and the communities in which it operates. It goes beyond just the corporation's main objective or general goal and encompasses a broader sense of social and environmental responsibility. The other options do not fully capture this concept.

Question 9

Benefit corporations and certified B Corps are ______.&#10;A)legal entities in all states of the United States&#10;B)primarily located in European countries&#10;C)different names for the same types of companies&#10;D)different entities, one a legal entity and the other a certification process

Accepted Answer

Benefit corporations are a legal entity that is distinct from traditional for-profit corporations, while certified B Corps are companies that have undergone a certification process to meet certain standards of social and environmental performance, accountability, and transparency. Therefore, they are two different entities, one being a legal entity and the other being a certification process. While benefit corporations are currently only recognized in certain states of the United States, certified B Corps are found in many different countries around the world.

Question 10

A ______ approach to corporate social responsibility starts with a predetermined outcome and then works out how to achieve it.&#10;A)normative&#10;B)descriptive&#10;C)conservative&#10;D)critical

Accepted Answer

A normative approach to corporate social responsibility is focused on establishing what is considered to be morally and ethically right and then working towards achieving that outcome. This approach involves setting standards or principles for responsible behavior and then designing policies and strategies to achieve those norms. In contrast, a descriptive approach aims to describe and understand the current state of corporate social responsibility practices without making value judgments about what is right or wrong. Conservative and critical approaches are less common in the realm of corporate social responsibility theory and practice.

Question 11

The ______ is typically recognized as the earliest modern business corporation.&#10;A)East India Company&#10;B)Ford Motor Company&#10;C)Lorillard Tobacco Company&#10;D)Southern Pacific Railroad

Accepted Answer

The answer of The ______ is typically recognized as the...

Question 12

Dodge v.Ford stands for the legal principle that ______.&#10;A)managers and directors have a legal duty to put shareholders' interests above all others&#10;B)managers, not shareholders, have the legal authority to determine workers' wages&#10;C)the interests of multiple stakeholders must be considered in business practices&#10;D)corporations have a legal duty to act in socially responsible ways

Accepted Answer

The answer of Dodge v.Ford stands for the legal principle...

Question 13

In terms of oversight, liability, responsibility, and regulation, ______ is considered the friendliest place to do business in the United States.&#10;A)California&#10;B)Delaware&#10;C)Florida&#10;D)Texas

Accepted Answer

The answer of In terms of oversight, liability, responsibility, and...

Question 14

Which of the following is NOT an objective outcome of corporate social responsibility?&#10;A)A large retail chain pays its employees a living wage.&#10;B)A small business implements a recycling program.&#10;C)A firm focuses on the fluid process by which value is created for multiple stakeholders.&#10;D)A manufacturing company requires its suppliers to use fair labor practices.

Accepted Answer

The answer of Which of the following is NOT an...

Question 15

Why is Dartmouth College v.Woodward an important case in CSR?&#10;A)It illustrates the important relationship between education and other societal institutions.&#10;B)It sets the legal precedent that corporations are understood to be legal individuals.&#10;C)It establishes legal autonomy for educational institutions to teach controversial subjects such as the theory of evolution.&#10;D)It sets the legal precedent of requiring state funding for public education.

Accepted Answer

The answer of Why is Dartmouth College v.Woodward an important...

Question 16

A ______ approach to corporate social responsibility allows the outcome to emerge, rather than imposing a fixed view about what should or should not happen.&#10;A)normative&#10;B)descriptive&#10;C)conservative&#10;D)critical

Accepted Answer

The answer of A ______ approach to corporate social responsibility...

Question 17

The law allowed the boards of directors of Vermont firms to consider factors in addition to shareholder value when deciding whether to accept a takeover offer is known as the ______.&#10;A)Vermont Maple Suger Growers Law&#10;B)Ben & Jerry's Law&#10;C)Mount Snow Association Law&#10;D)St.Johnsbury Transport Law

Accepted Answer

The answer of The law allowed the boards of directors...

Question 18

In 2012, ______ became the first company in California to become a benefit corporation.&#10;A)Lululemon&#10;B)Google&#10;C)Apple&#10;D)Patagonia

Accepted Answer

The answer of In 2012, ______ became the first company...

Question 19

Which Supreme Court case initially developed the idea of corporate personhood?&#10;A)Santa Clara County v.Southern Pacific Railroad&#10;B)Trustees of Dartmouth College v.Woodward&#10;C)Buckley v.Valeo&#10;D)First National Bank of Boston v.Bellotti

Accepted Answer

The answer of Which Supreme Court case initially developed the...

Question 20

Buckley v.Valeo extended what right to a corporation?&#10;A)protection from unionization&#10;B)ability to donate to political campaigns&#10;C)ability to sue states&#10;D)right to privacy

Accepted Answer

The answer of Buckley v.Valeo extended what right to a...

Question 21

Delaware is considered to be the friendliest place to do business in the United States.Describe the reasons why this is so as well as the positive and negative implications of the reasons.

Accepted Answer

The answer of Delaware is considered to be the friendliest...

Question 22

Compared to European firms, U.S.firms are ______.&#10;A)more likely to take a multiconstituency approach to CSR&#10;B)less likely to take a multiconstituency approach to CSR&#10;C)equally likely to take a multiconstituency approach to CSR&#10;D)much more socially responsible

Accepted Answer

The answer of Compared to European firms, U.S.firms are ______.&#10;A)more...

Question 23

Laws establishing benefit corporations impose legal requirements for firms to ______.&#10;A)implement a stakeholder model&#10;B)implement a shareholder model&#10;C)pay a living wage to all employees&#10;D)use only environmentally sustainable manufacturing processes

Accepted Answer

The answer of Laws establishing benefit corporations impose legal requirements...

Question 24

The textbook author argues that ______ offers the most efficient tools to deliver social progress.&#10;A)government&#10;B)for-profit firms&#10;C)not-for-profit firms&#10;D)families

Accepted Answer

The answer of The textbook author argues that ______ offers...

Question 25

The &#34;Ben & Jerry's law&#34; passed by the Vermont legislature ______.&#10;A)requires ice cream to be provided to all schoolchildren at least once per year&#10;B)requires the use of only non-GMO ingredients in food products&#10;C)allows firms to set maximum pay for CEOs at 20 times the average pay in the firm&#10;D)allows firms to consider factors other than shareholder value when deciding whether to accept a takeover offer

Accepted Answer

The answer of The &#34;Ben & Jerry's law&#34; passed by...

Question 26

A corporation is a fictitious legal person that is endowed with many of the characteristics of a human being.

Accepted Answer

The answer of A corporation is a fictitious legal person...

Question 27

The U.S.Supreme Court has made several landmark rulings on &#34;corporate personhood.&#34; Some argue that the Court's decisions have used inconsistent logic.Describe why the Court's logic has or has not been inconsistent.

Accepted Answer

The answer of The U.S.Supreme Court has made several landmark...

Question 28

According to Yvon Chouinard, founder of the Patagonia company, one of the primary benefits of becoming a benefit corporation is that ______.&#10;A)it makes it harder for a new owner to abandon the firm's social mission&#10;B)it makes employees more dedicated to the social mission of the firm&#10;C)it makes the company's products much more desirable to socially conscious customers&#10;D)it makes it more difficult for a company to pollute the natural environment

Accepted Answer

The answer of According to Yvon Chouinard, founder of the...

Question 29

The incorporation process (corporate governance) in the United States is currently regulated ______.&#10;A)under state, rather than federal, law&#10;B)under federal, rather than state, law&#10;C)under both federal and state law&#10;D)under local, state, and federal law

Accepted Answer

The answer of The incorporation process (corporate governance) in the...

Question 30

Limited liability means that no one can sue a corporation.

Accepted Answer

The answer of Limited liability means that no one can...

Question 31

Value creation is the same for every business and every stakeholder.

Accepted Answer

The answer of Value creation is the same for every...

Question 32

Describe the differences between Benefit Corporations and B Corps.Do you think either of these designations is necessary? Why or why not?

Accepted Answer

The answer of Describe the differences between Benefit Corporations and...

Question 33

What is corporate personhood, and how does it relate to corporate social responsibility?

Accepted Answer

The answer of What is corporate personhood, and how does...

Question 34

The U.S.Supreme Court has held that corporations have the right to donate to political campaigns.

Accepted Answer

The answer of The U.S.Supreme Court has held that corporations...

Question 35

The concept of &#34;corporate personhood&#34; in the United States recognizes that ______.&#10;A)corporations are primarily made up of groups of persons&#10;B)physical resources of corporations (buildings, machines, etc.) are secondary to human resources&#10;C)humans have a natural tendency to anthropomorphize inanimate objects such as buildings&#10;D)a corporation is a fictitious legal person that is endowed with many of the rights and responsibilities of a human being

Accepted Answer

The answer of The concept of &#34;corporate personhood&#34; in the...

Question 36

The decision in ______ allowed corporations greater freedom to finance political ads/campaigns.&#10;A)Buckley v.Valeo&#10;B)Citizens United&#10;C)Dartmouth College v.Woodward&#10;D)Dodge v.Ford

Accepted Answer

The answer of The decision in ______ allowed corporations greater...

Question 37

One survey revealed that nearly 80% of executives admit they would &#34;take actions to improve quarterly earnings at the expense of long-term value creation.&#34; Why are they wrong?

Accepted Answer

The answer of One survey revealed that nearly 80% of...

Question 38

Describe the difference between traditional approaches to corporate social responsibility, which focus on objective outcomes, and strategic CSR, which focuses on value creation.

Accepted Answer

The answer of Describe the difference between traditional approaches to...

Question 39

Firms will survive in the long run to the extent that managers consistently create ______ for the firm's broad range of stakeholders.&#10;A)profits&#10;B)goodwill&#10;C)value&#10;D)harmony

Accepted Answer

The answer of Firms will survive in the long run...

Question 40

The &#34;Stop BEZOS&#34; Act proposed by Senators Bernie Sanders and Elizabeth Warren sought to force companies to ______.&#10;A)unionize&#10;B)provide a livable wage&#10;C)ensure companies paid their fair share of taxes&#10;D)mandated companies not outsource

Accepted Answer

The answer of The &#34;Stop BEZOS&#34; Act proposed by Senators...

Deck 5: Corporate Rights and Responsibilities