Deck 9: Corporate Social Responsibility

Question 1

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."

Answer 1

Milton Friedman

Question 2

The strategic reason for having CSR play a prominent role in a firm advanced by Harvard
Professor Michael Porter argues that in evaluating the firm's CSR,executives should begin by scrutinizing the social impacts of the company's value chain.

Answer 2

True

Question 3

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 3

True

Question 4

Even if social responsible business practices are costly,firms must perform them anyway.

Question 5

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

Question 6

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

Question 7

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 8

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

Question 9

The _________ reason that corporations should care about social responsibility stands for the proposition that corporations must anticipate stakeholder concerns and act defensively to protect their reputation and viability.

Question 10

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

Question 11

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

Question 12

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 13

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 14

The three reasons that corporations should care about social responsibility are ___________,
________________ and _____________.

Question 15

The most strategic CSR initiatives are those that add a social dimension to the firm's overall
competitive strategy.

Question 16

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

Question 17

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.

Question 18

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

Question 19

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.

Question 20

______ ______ _________ (3 words)are those shareholders who clearly care about the financial and the social bottom line of a business.

Question 21

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 22

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 23

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)None of the above

Question 24

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 25

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

Question 26

The Social Investment Forum reported that socially responsible investing grew from $40
billion in 1984 to nearly $3 trillion in 2007 (out of $25 trillion in the US marketplace).

Question 27

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

Question 28

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 29

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

Question 30

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

Question 31

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 32

Failure to be socially responsible is costly.