Question 1

By employing the standards of CSR, the barriers to entry for the industry actually go down.

Accepted Answer

CSR (Corporate Social Responsibility) standards often increase barriers to entry as they require additional resources and compliance efforts, which can be challenging for new entrants.

Question 2

Numerous protests around the world are indicative of resentment against globalization and a perceived lack of CSR in firms, particularly those that relocate offices (and jobs) to foreign countries.

Accepted Answer

The statement accurately reflects the current social and economic climate. Many people feel that globalization has led to job losses and exploitation, and that companies that move their operations to countries with lower labor standards are not acting responsibly. This has contributed to the rise of populist movements and anti-globalization protests in many countries.

Question 3

According to the text, one driver of CSR in the twenty-first century is the declining levels of population in some countries.

Accepted Answer

The text does not mention declining levels of population as a driver of CSR in the twenty-first century.

Question 4

Global sustainability is the number one goal of a firm.

Accepted Answer

The primary goal of most firms is typically to maximize shareholder value or profit, although sustainability can be an important consideration.

Question 5

Companies have had their CSR policies certified by NGOs that might otherwise be hostile.

Accepted Answer

It is possible for companies to have their CSR policies certified by NGOs that may have previously criticized or opposed their practices. This can be seen as a way for companies to demonstrate their commitment to social responsibility and sustainability and improve their reputation among stakeholders. However, it is also important to consider the credibility and independence of the certifying NGOs.

Question 6

Compared with the relatively expanded power of national governments in the wake of globalization, NGOs and other civil society stakeholders have lost the ability to affect firms and their management or to impact legislation.

Accepted Answer

NGOs and civil society stakeholders continue to have the ability to affect firms and their management through various means such as advocacy, consumer pressure, and shareholder activism. They also continue to impact legislation through lobbying and public campaigns. However, their power may be limited compared to that of national governments in certain contexts.

Question 7

The driving forces of the CSR school are the widening of the gap between the haves and have-nots and the astonishing speed of technological development.

Accepted Answer

The answer of The driving forces of the CSR school...

Question 8

Governments and communities whose laws and regulations must be obeyed are considered primary stakeholders.

Accepted Answer

Governments and communities have the power to create laws and regulations that must be followed by individuals and organizations, making them primary stakeholders.

Question 9

CSR advocates argue that a free market system that takes the pursuit of self-interest and profit as its guiding light may in practice fail to constrain itself, thus often breeding greed, excesses, and abuses.

Accepted Answer

CSR advocates argue that a focus on profit and self-interest can lead to unethical behavior and negative consequences for society and the environment. They believe that businesses have a responsibility to consider the impact of their actions on stakeholders beyond just shareholders.

Question 10

CSR standards are more difficult for firms in a concentrated and competitive industry.​

Accepted Answer

In a concentrated and competitive industry, firms may be more focused on short-term profits and cost-cutting measures to stay competitive, making it harder to prioritize and invest in CSR initiatives that may not have immediate financial benefits. Additionally, in such industries, there may be more pressure to keep up with competitors' practices rather than innovating in socially responsible ways.

Question 11

The more concentrated an industry is, the more likely that competitors will recognize their mutual interdependence based on old ways of doing business that are not up to the higher CSR standards.

Accepted Answer

When an industry is more concentrated, there are fewer players, and they become more dependent on each other. This can lead to an understanding of mutual interdependence and a common interest in maintaining higher CSR standards.

Question 12

Because each firm is different (a basic assumption of the resource-based view), not every firm's economic performance is likely to benefit from CSR.

Accepted Answer

The resource-based view acknowledges that each firm has unique strengths and capabilities that shape its competitive advantage and economic performance. Thus, what works for one firm in terms of CSR may not work for another firm, as their resources, capabilities, and strategic objectives differ. Therefore, not every firm's economic performance is likely to benefit from CSR.

Question 13

A stakeholder is "any group or individual who can affect or is affected by the achievement of the organization's objectives."

Accepted Answer

This is the definition of a stakeholder as per various management and business theories, including the stakeholder theory by R. Edward Freeman.

Question 14

Socially and environmentally conscious suppliers are not likely to have greater bargaining power than those that are not, regardless of how differentiated their products are.

Accepted Answer

Socially and environmentally conscious suppliers may have greater bargaining power than those that are not, as their products may have a unique selling point and a more loyal customer base that is willing to pay a premium price for sustainable and ethical products. Additionally, with increasing consumer awareness and demand for sustainable products, suppliers that can meet this demand may have a stronger bargaining position.

Question 15

"Stakeholders" of the firm are the same thing as shareholders.

Accepted Answer

Stakeholders refer to anyone who has a vested interest in the success or failure of the firm, including shareholders, employees, customers, suppliers, and the community. Shareholders are just one subset of stakeholders who have a financial investment in the company.

Question 16

Looking at the "big picture" enables managers to understand the drivers underpinning global sustainability as simple and straightforward.

Accepted Answer

Understanding the drivers of global sustainability is complex and involves multiple interconnected factors such as economic, environmental, social, and political elements.

Question 17

A key goal for CSR is global sustainability, which is defined as the ability "to meet the needs of the present without compromising the ability of future generations to meet their needs."

Accepted Answer

This is the commonly accepted definition of global sustainability and a key goal for CSR.

Question 18

With a stakeholder view, firms look at the triple bottom line of economic, social, and environmental performance.

Accepted Answer

This statement is true. A stakeholder view considers not only financial performance, but also the impact of the company on society and the environment. The triple bottom line framework is commonly used to evaluate a company's overall sustainability and success.

Question 19

Firms pursuing a reactive CSR strategy actively participate in policy discussions, build alliances with stakeholder groups, and voluntarily go beyond what the regulations require.

Accepted Answer

The answer of Firms pursuing a reactive CSR strategy actively...

Question 20

Nearly all CSR advocates argue for a revival of socialism in the world.

Accepted Answer

While CSR advocates do argue for accountability and responsibility of corporations towards society and the environment, it does not necessarily involve advocating for socialism. There are various ways in which CSR can be implemented within a capitalist framework as well.

Quiz 12: Strategizing With Corporate Social Responsibility