Deck 9: Corporate Social Responsibility

Question 1

The pragmatic approach is more proactive and affirmative than the strategic approach because it asks companies to identify and acknowledge company activities that can do harm and encourages firms to scrutinize their practices and address potential harms by focusing on their own value-chain activities.

Answer 1

False

Question 2

The economic responsibilities of a firm involve its primary function of producing goods and services that consumers need and want, while making an acceptable profit.

Answer 2

True

Question 3

The __________ reason for CSR offers managers a stronger basis for making decisions about which stakeholders and social responsibility issues should garner their attention and resources given the multitude of options available.

Answer 3

strategic

Question 4

The late economist __________ said that management should "make as much money as possible while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical custom."

Question 5

Constructive engagement of stakeholders, including critics, is replacing the "just trust us" plea of yesteryear as executives conclude that the plea rarely works in a world of regular corporate scandals.

Question 6

A stakeholder is "any party who is affected by the business and its actions and who has a stake in what the organization does and how it performs.

Question 7

According to Harvard Professor Michael Porter and co-author Mark Kramel, the strategic reason for having CSR play a prominent role in a firm is that in evaluating the firm's CSR, executives should begin by scrutinizing the social impacts of the company's value chain.

Question 8

An organization that does not fulfill its philanthropic responsibilities is acting unethically.

Question 9

__________, such as environmental damage, are costs to society that are produced by companies but not reflected in the company's cost structure.

Question 10

CalPERS, the California Public Employees' Retirement System pressures the companies it invests in to engage in good corporate governance and socially responsible practices in areas such as __________ and __________.

Question 11

The ethical reason is based on the recognition that business must use its power responsibly in society or risk losing it. Corporations exist as legal entities with certain advantages (such as limited liability) because society allows them to do so, and these corporate rights and advantages can be removed from firms that are perceived to be irresponsible.

Question 12

__________ are those shareholders who clearly care about the financial and the social bottom line of a business.

Question 13

In the strategic perspective, social responsibility is seen as appropriate because it is "the right thing to do."

Question 14

Organizations are finding that in the area of Corporate Social Responsibility (CSR), it is becoming increasingly difficult to separate __________ organizational ethics from __________ social responsibility.

Question 15

Social responsibility efforts can backfire if the public perceives that the company engages in CSR programs only if and when it can profit from doing so.

Question 16

The __________ reason for corporate social responsibility argues that businesses, as part of society, have a responsibility to behave in the right way.

Question 17

Literature on corporate social performance suggests three reasons that corporations should care about social responsibility: pragmatic, economic, and regulatory. These are mutually exclusive and they do not overlap.

Question 18

The most strategic CSR initiatives are those that remove the social dimension from the firm's overall competitive strategy.

Question 19

If the socially responsible business practices are costly, firms should not perform them.

Question 20

The three reasons that corporations should care about social responsibility are __________, __________, and __________.

Question 21

Legal responsibilities go beyond ethical responsibilities to encompass the more general responsibility to avoid harm and do what's right.

Question 22

Section 404 of the Sarbanes-Oxley Act (SOX) is credited with removing internal financial control systems in public companies since the cost of doing so is thought to be exorbitant by small firms.

Question 23

_________ responsibilities center on the corporation's participation in activities that promote human welfare or goodwill, generally through donations of time and money or products and services.

A) Economic
B) Ethical
C) Legal
D) Philanthropic

Question 24

As the chief production manager at ABC Manufacturing, Amanda always argues that her sole responsibility is to maximize profits for ABC's shareholders. Amanda is prescribing to which of these responsibilities?

A) Economic
B) Ethical
C) Legal
D) Philanthropic

Question 25

As a new manager, your friend Jason is interested in learning why should his company care about social responsibility. Based on what you have learned, you should tell him that his company should care about social responsibility for all of the following reasons EXCEPT:

A) pragmatic
B) regulatory
C) ethical
D) strategic

Question 26

The Social Investment Forum reported that socially responsible investing grew from $40 billion in 1984 to nearly $4 trillion in 2012.

Question 27

A firm's financial responsibility is primary and the bedrock of corporate social responsibility because without financial viability, the other responsibilities become moot issues.

Question 28

ABC Tobacco, a USA tobacco company, understands that it is illegal to advertise or sell cigarettes to minors in the United States and the company follows this principle in the United States. However, ABC continues to promote and sell its products to minors in countries that have no such legal restrictions. ABC is violating which of these responsibilities?

A) Economic
B) Ethical
C) Legal
D) Philanthropic

Question 29

Some analysts argue that the more stringent regulatory environment resulting in the post Sarbanes-Oxley period increases shareholder confidence in financial reporting.

Question 30

As a business owner, Bianca sees the government regulations as representing the minimum norms and standards of business conduct agreed upon within the society. Bianca is prescribing to which of these responsibilities?

A) Economic
B) Ethical
C) Legal
D) Philanthropic

Question 31

Which of the following is questioned by some as whether it is a corporate "responsibility" at all?

A) Economic
B) Ethical
C) Legal
D) Philanthropic

Question 32

Jacob, CEO of AI Corporation, believes that his company must use its power responsibly in society or risk losing it. Jacob is utilizing which rationale for valuing social responsibility?

A) Pragmatic
B) Regulatory
C) Ethical
D) Philanthropic

Question 33

According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is considered to be of primary importance to organizations.

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

Question 34

In the __________ perspective, social responsibility is seen as appropriate because it is "the right thing to do."

A) pragmatic
B) economic
C) ethical
D) strategic

Question 35

The __________ reason, why corporations should care about social responsibility, is based upon the recognition that business must use its power responsibly in society or risk losing it. Corporations exist as legal entities with certain advantages (such as limited liability) because society allows them to do so, and these corporate rights and advantages can be removed from firms that are perceived to be irresponsible.

A) pragmatic
B) economic
C) ethical
D) strategic

Question 36

Over the long run, to be successful, firms with excellent socially responsible strategies need to worry less about their business strategies.

Question 37

Since the passage of Sarbanes-Oxley few firms have been prosecuted and fewer high level executives have received jail terms proving convincingly that the legislation is flawed.

Question 38

According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is a societal expectation that is not necessarily codified into law.

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

Question 39

Corporate social responsibility (CSR) consists of which four kinds of responsibilities:

A) Economic, ethical, societal, and altruistic
B) Economic, legal, ethical, and altruistic
C) Fiscal, legal, societal, and philanthropic
D) Economic, legal, ethical, and philanthropic

Question 40

One argument that social responsibility does "pay" focuses on the value of a company's reputation with key stakeholders such as customers, business partners, and employees.

Question 41

Interface Carpets, a stellar example of sustainability in action, lists seven fronts of Mount Sustainability. Which is NOT one of the firm's goals to meet its total sustainability status? a. Redesigning commerce
B) Sensitizing stakeholders
C) Using renewable energy
D) Ensuring benign emissions
E) Eliminating waste
F) Competing through cost

Question 42

The __________ dimension of the triple bottom line refers to a firm's impacts on multiple stakeholders such as employees, customers, suppliers, and the broader community.

A) economic
B) social
C) environmental
D) regulatory

Question 43

Referring to the Corporate Social Responsibility (CSR) pyramid, how do legal responsibilities differ from ethical responsibilities? Provide specific examples to support your distinction.

Question 44

The term __________ is sometimes used to represent harmony among three dimensions of economic, social and environmental impacts.

A) philanthropic
B) ethics
C) bottom-line
D) sustainability

Question 45

The triple bottom line addresses all of these EXCEPT a firm's:

A) economic impact
B) social impact
C) environmental impact
D) regulatory impact

Question 46

Typical Codes of Conduct cover conduct described below. In the aftermath of Bhopal, the chemical industry wishing to demonstrate responsible corporate citizenship has added which additional behaviors set out below. a. Legal compliance
B) Continuous improvement, communication with external stakeholders and training of suppliers on the standards
C) Community awareness and emergency response
D) Pollution prevention
E) Safe distribution of chemicals in transit
F) Employee health and safety
G) Safe handling of chemicals from manufacture through disposal

Question 47

Discuss the pro and cons for a firm of discussing its philanthropic activities internally and externally.

Question 48

Which of the items listed is NOT a product of a "favorable corporate reputation." a. Charge more for its products and services
B) Attract, Hire and keep higher quality applicants/employees
C) Enhance their access to better capital markets
D) Attract investors
E) Ignore the Foreign Corrupt Practices Act

Question 49

Which of the following defines costs to society, such as environmental damage, that are produced by companies but not reflected in the company's cost structure? a. Externalities
B) Ethical dilemmas
C) Philanthropic activities
D) Triple bottom-line

Question 50

Some companies use __________ as an umbrella term to encompass all CSR efforts that make business more sustainable in the long term, including environmental efforts.

A) philanthropic
B) ethics
C) bottom-line
D) sustainability