Deck 14: Competing on Marketing and Supply Chain Management

Question 1

A stakeholder is any group or individual who can affect or is affected by a firm s actions.

Answer 1

True

Question 2

Social issue participation does not add much value to a firm.

Answer 2

True

Question 3

The accommodative strategy a firm might take regarding CSR is much more focused on following legal regulations and standards than the defensive strategy.

Answer 3

False

Question 4

From the institutional perspective, the proactive activities firms carry out regarding CSR are indicative of the formal regulations drafted by the managers based on their desire to do the right thing.

Question 5

A promoter of the CSR approach would argue that as long as there is competition, there will be both winners and losers.

Question 6

Managers should continue to keep CSR on the backburner until regulations and social issues in developing countries rise.

Question 7

The negative view regarding codes of conduct suggests that many firms may not be acting sincerely but only writing codes as window dressing.

Question 8

In a free market approach to the purpose of a firm, the shareholder is the single most important stakeholder, while in a CSR approach argues that all stakeholders have a right to bargain for a fair deal.

Question 9

The institution-based view says that a code of conduct is a good start towards developing CSR because, despite its weaknesses, it is still a move in a good direction.

Question 10

The free market approach is responsible for much of the rapid internationalizing and globalization of many multinational enterprises (MNEs).

Question 11

A key insight of the institution-based view of CSR is that individuals and organizations make rational choices given the right kind of incentives.

Question 12

The institution-based view concerning the effectiveness of the CSR approach focuses on the strategic responses of the firms.

Question 13

The resource-based view of CSR helps test the link between CSR and economic performance.

Question 14

Free market advocates argue that firms may lose their character if they focus solely on profit maximization.

Question 15

What is range anxiety?

A) A malfunction common to many EVs onboard GPS tracking systems
B) A concern that EVs might run out of battery before reaching the next charge station
C) An industry code word for tightening emission standards
D) A concern that the Nissan Leaf will not be distribured to one s market

Question 16

The CSR approach draws upon Adam Smith s idea that the pursuit of economic self-interest within legal and ethical bounds leads to efficient markets.

Question 17

The business of business is business is a quote most representing the free market approach to a firm s purpose.

Question 18

The CSR approach argues that economic self-interests are not a trustworthy guide for firm decision making and may breed greed, excesses, and abuses.

Question 19

CSR is becoming something that many firms are integrating into the core of their operations and mindset.

Question 20

The secondary stakeholders are constituents on whom the firm relies for its continuous survival and prosperity.

Question 21

Which of the following is NOT one of the four segments of the strategic response framework?

A) Accommodative
B) Proactive
C) Interactive
D) Defensive

Question 22

Which of the following most describes a free market advocate s view of the CSR approach?

A) Managers never receive any benefits from taking social responsibility.
B) Managers may choose their own self-interest over the public s interest.
C) Managers are to be concerned with the interests of all their stakeholders.
D) Manager will lose their focus on profit maximization if they seek to address social issues.

Question 23

One consequence of internationalizing a firm s CSR is:

A) Cultural differences hinder effective CSR for the first few years in a foreign country.
B) Profits are usually cut but goodwill and other intangible assets increased.
C) Employees and communities domestically may be ignored or have fewer resources to work with.
D) It is easily imitated.

Question 24

Which of the following strategic responses that a firm might have regarding CSR often involves drafting a code of conduct?

A) Accommodative
B) Reactive
C) Proactive
D) Defensive

Question 25

What was one of the steps Nissan took to ensure a successful launch of the Leaf?

A) It set the list price at $44,600
B) It prohibited environmental activists from previewing the Leaf
C) It limited the launch to just seven states
D) It advertised the Leaf as a rugged SUV

Question 26

Atmospheric greenhouse gas levels are:

A) Increasing at a slowing rate
B) Increasing at an accelerating rate
C) Decreasing at a slowing rate
D) Decreasing at an accelerating rate

Question 27

____ is the consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains a firm seeks.

A) Corporate social responsibility
B) Capitulation
C) Global sustainability
D) Code of conduct

Question 28

Advocates who defend CSR would most likely argue:

A) That increased regulation and standards may force firms to innovate, and thus add to the competitiveness of an industry.
B) That regulation leads to higher costs and reduced competitiveness.
C) That the amount of competition in an industry would remain unchanged, but the industry would experience tighter profit margins as they matched new regulations.
D) That competition will remain unchanged but profits will increase.

Question 29

Which one of the following is NOT one of the three sets of drivers related to the urgency of global sustainability?

A) Firms from the United States are internationalizing more rapidly than ever before
B) The increasingly active role of NGOs as monitors and enforcers of social standards
C) Rising levels of population and poverty call for new ideas and solutions
D) Industrialization has created some irreversible effects on the environment

Question 30

Unlike his industry peers, Duke Energy CEO Jim Rogers has been bitten by the climate bug and has voluntarily worked to reduce greenhouse gas emissions. This exemplifies a ____ strategy.

A) Reactive
B) Defensive
C) Accommodative
D) Proactive

Question 31

Which of the following is NOT one of the three areas proactive firms regularly engage in regarding CSR?

A) Actively participating in regional, national, and international policy discussions.
B) Frequently updating their codes of conduct to match new legislation and maintaining a number of managers that regard CSR as important to the firm s success.
C) Often building alliances with stakeholder groups.
D) Often engaging in voluntary activities that go beyond what is required by regulation.

Question 32

Which of the following best describes a firm taking a reactive strategy regarding CSR?

A) The firm focuses most on following regulations.
B) Nothing disastrous is happening in the industry, so social issues are not a concern of the firm.
C) The firm constantly anticipates responsibility and endeavors to do more than is required.
D) A number of upper managers in the firm often remind the organization about its CSR.

Question 33

What is the difference between shareholders and stakeholders? Which one is typically more important for firms focused on CSR?

Question 34

Which of the following is most closely aligned with the free market view of why a firm exists?

A) A firm s main focus is to serve as a vehicle for addressing the interests of the stakeholders.
B) A firm is created to bring equality to the world economic gap.
C) A firm is created to generate profit and address the interests of the shareholders.
D) A firm s aim is to address social issues with a practical business perspective.

Question 35

Environmental groups or fair labor practice groups that challenge firms to maintain high standards are examples of:

A) Primary stakeholder groups
B) Secondary stakeholder groups
C) Shareholders
D) CSRs

Question 36

The view that most closely follows the idea that a firm s code of conduct may be written mostly as a tool to help make good profits and not really aid the firm in becoming more ethical is which of the following?

A) Negative
B) Instrumental
C) Cognitive
D) Positive

Question 37

When Nissan invited interested buyers to pre-order the Leaf by putting down a refundable $99 fee:

A) Nissan received no reservations, a crushing blow to the shift toward EVs
B) Nissan received 250 reservations, a lukewarm response
C) Nissan received almost 2,000 reservations, bolstering the team s confidence in the Leaf
D) Nissan received 6,000 reservations and had to stop accepting new reservations

Question 38

Which of the following is NOT part of the triple bottom line?

A) Economic performance
B) Financial performance
C) Environmental performance
D) Social performance

Question 39

Home Depot and Lowe s both being able to monitor that their lumber suppliers in Latin America are only working out of renewable forests is an example of valuable capabilities but low ____.

A) Rarity
B) Imitability
C) Organization
D) Value

Question 40

What is defined as the ability to meet the needs of the present without compromising the ability of future generations to meet their needs?

A) Capitulation
B) Global sustainability
C) Corporate social responsibility
D) Social activism

Question 41

What are the major reasons driving the CSR movement?

Question 42

Why is organization considered the complementary asset to a firm gaining profitability from following CSR?

Question 43

What is the challenge in drawing conclusions from previous studies linking CSR and economic performance?

Question 44

Pick one of the managerial implications for action regarding CSR. Describe the implication and discuss the benefits and challenges.

Question 45

Describe the proactive strategy of approaching CSR. Give an example and tell how this strategy is becoming more popular for internationalizing firms.