Question 1

From an institutional perspective, proactive activities are indicative of all the following EXCEPT:
A)Normative beliefs.
B)Cognitive beliefs.
C) The desire to do the right thing.
D) An absence of "window dressing."

Accepted Answer

Proactive activities are indicative of normative beliefs, cognitive beliefs, and the desire to do the right thing. Therefore, the absence of "window dressing" is not indicative of proactive activities.

Question 2

In regard to managers and CSR, the following are true EXCEPT:
A)All sides of the CSR debate agree that managers have a unique and central role.
B)All sides of the CSR debate agree as to how managers should implement their role.​
C) As a stakeholder group, managers are unique in terms of potential coordination.
D) Managers are positioned at the center of all the stakeholder relationships.

Accepted Answer

While all sides agree that managers have a unique and central role in implementing CSR, there is no consensus on how exactly this role should be fulfilled. Therefore, statement B is false.

Question 3

All firms have a different combination of resources; therefore, from a resource-based perspective:
A)​Studies that over-sample firms ready for CSR will find a negative relationship with economic performance.
B)​Not every firm's economic performance is likely to benefit from CSR.
C) ​A firm's striving toward a high level of CSR will be economically beneficial to the firm.
D) ​Complementary assets will have no effect on the ability to fully utilize a firm's CSR potential.

Accepted Answer

Since all firms have a different combination of resources, not every firm's economic performance is likely to benefit from CSR. This means that the relationship between CSR and economic performance will vary depending on the firm's resources and capabilities. Some firms may benefit from CSR initiatives, while others may not see any significant economic gains.

Question 4

Those who are opposed to strong efforts toward CSR would use which of the following arguments?
A)​"Green taxes" simply force firms to pay real costs that they otherwise place on others.
B)​CSR externalizes an internality.
C) ​Tough environmental regulation leads to higher costs and reduced competitiveness.
D) ​Stringent environmental regulation will motivate firms to innovate.

Accepted Answer

Opponents of CSR often argue that implementing strong environmental regulations or corporate social responsibility initiatives can lead to increased costs for businesses, which could in turn reduce their competitiveness. They may also argue that these efforts are unnecessary, as market forces and innovation will eventually lead to better environmental outcomes without government intervention. This view is often associated with free-market or conservative economic ideologies. Choice C reflects this argument. Choices A, B, and D are not indicative of an argument against CSR.

Question 5

Numerous components within a firm, such as formal management control systems and informal relationships between managers and employees that may be especially relevant to CSR are often called:
A)​Complementary assets.
B)​Accommodative strategy.
C) ​Global sustainability.
D) ​Social issue participation.

Accepted Answer

The components within a firm, such as formal management control systems and informal relationships between managers and employees, that are important for implementing CSR are often referred to as complementary assets. These assets are an important part of a firm's overall strategy to effectively implement and integrate CSR into its operations.

Question 6

Those who feel that firms that expand into emerging economies are failing their CSR responsibilities are most likely to claim that:
A)It potentially hurts corporate profits.
B)Shareholder returns are reduced.​
C) Fails to provide employment to host countries.
D) Domestic employees and communities pay the price for the overseas expansion.

Accepted Answer

Those who believe that firms expanding into emerging economies are failing in their CSR responsibilities often argue that domestic employees and communities pay the price for overseas expansion. They may argue that firms should prioritize the well-being of their domestic employees and communities before expanding abroad.

Question 7

Although a code of conduct tangibly expresses values of an organization, seeing it as window dressing is the assessment of the:​
A)​Negative view.
B)​Positive view.
C) ​Institutional view.
D) ​Instrumental view.

Accepted Answer

The negative view sees a code of conduct as mere window dressing, implying it is superficial and not genuinely implemented.

Question 8

In regard to the link between CSR and economic performance:
A)There is conclusive evidence of a direct, positive link between CSR and economic performance
B)No studies report a definitive positive relationship.
C) Almost all studies find a negative relationship or no relationship.
D) It appears some firms are not cut out for a CSR-intensive strategy.

Accepted Answer

While some studies have suggested a positive link between CSR and economic performance, there is still debate on the subject. Many studies have found no relationship or a negative relationship between CSR and economic performance. It is also possible that some firms may not be suited for a CSR-intensive strategy, as it may not align with their values or resources. Therefore, the best choice is D.

Question 9

A firm that participates in social causes not directly related to the management of its primary stakeholders is engaged in: ​
A)​Secondary stakeholder groups.
B)​Defensive strategy.
C) ​Social issue participation.
D) ​Global sustainability.

Accepted Answer

Social issue participation refers to when a firm participates in social causes not directly related to the management of its primary stakeholders. This can include supporting causes such as environmental sustainability, education, or healthcare, among others. Defensive strategy refers to a reactive approach to addressing potential threats or issues, while global sustainability refers to a focus on global environmental and social issues. Secondary stakeholder groups are those who are indirectly affected by a firm's actions, such as the community or government.

Question 10

An example of a secondary stakeholder group is:
A)Social and environmental groups.
B)Suppliers.
C) Customers.
D) Governments.

Accepted Answer

Social and environmental groups are examples of secondary stakeholders because they are not directly involved in business operations but still have an interest in the company's actions and impact on society and the environment. They may advocate for particular social or environmental issues and seek to influence the company's policies and practices in these areas. Suppliers, customers, and governments are typically considered primary stakeholders with a more direct relationship and impact on the company.

Question 11

Which of the following would NOT be considered an underlying motivation behind MNEs' voluntary "green practices"?
A)​Worldwide CSR pressures in general.
B)​Requirements of MNE headquarters for worldwide compliance of higher CSR standards.
C) ​Host country laws and norms.
D) ​CSR demands made by customers in developed economies.

Accepted Answer

Host country laws and norms are not voluntary; they are mandatory regulations that MNEs must comply with, unlike voluntary green practices motivated by CSR pressures or demands.

Question 12

An example of a primary stakeholder group is:
A)Media.
B)Social activists.
C) Environmental groups.
D) Employees.

Accepted Answer

Primary stakeholders are those who are directly involved or affected by a company's operations and decisions. Employees are a clear example of a primary stakeholder group as they are directly affected by the company's actions and decisions, such as layoffs or changes in working conditions. Media, social activists, and environmental groups are all examples of secondary stakeholders who may have an interest in the company but are not directly impacted by its actions.

Question 13

From a corporate governance perspective, MNEs are: ​
A)​Doing nothing wrong by maximizing shareholder returns.
B)​Shirking their domestic CSR when they devote resources overseas.
C) ​Foolish to focus on CSR.
D) ​None of the above.

Accepted Answer

The answer of From a corporate governance perspective, MNEs are:...

Question 14

In the post-Great Recession environment, the responsibility of managers means:​
A)​Relegating CSR to the "back burner."
B)​Responding to changing societal expectations of the social and environmental roles of firms.
C) ​Remembering that the business of business is business.
D) ​Following only those CSR standards that are globally unambiguous.

Accepted Answer

In the post-Great Recession environment, managers can no longer ignore the changing societal expectations of the social and environmental roles of firms. Therefore, they must respond to these new expectations rather than relegate CSR to the "back burner." While the business of business is still important, it is important to remember that firms must also be good corporate citizens and follow globally unambiguous CSR standards. However, as the expectations of society continue to evolve, managers need to be prepared to adapt and change their CSR strategies accordingly.

Question 15

Reactive firms:
A)Actively participate in regional, national, and international policy discussions.
B)Often build alliances with stakeholder groups.
C) Engage in voluntary activities that go beyond what the regulations require.
D) React negatively to aspects of CSR that may increase costs.

Accepted Answer

Reactive firms typically respond to CSR initiatives only when necessary, often viewing them as a cost burden rather than an opportunity, hence they may react negatively to CSR aspects that increase costs.

Question 16

Some CSR advocates who question motives of firms implementing CSR are pleased that:
A)Firms are embarking on some tangible CSR journey.
B)CSR's legitimacy is rising on the organizational agenda.
C) By adopting codes of conduct (even if only for "window dressing" purposes), they create a set of criteria against which they can be judged.
D) All of the above.

Accepted Answer

The statement in the question suggests that CSR advocates who question motives of firms implementing CSR are still pleased with the fact that firms are attempting to embark on some tangible CSR journey. Additionally, the advocates are pleased that the legitimacy of CSR is rising on the organizational agenda. Lastly, even if the firms only adopt codes of conduct for "window dressing" purposes, the advocates are still pleased because it creates a set of criteria against which they can be judged. Therefore, all of the above choices are correct.

Question 17

In regard to the extent of CSR challenges, the following are true EXCEPT:
A)All industries are equal in terms of their exposure to CSR challenges.
B)Energy- and materials-intensive industries (such as chemicals) have been criticized.
C) Firms that are major outsourcers in foreign countries have been criticized.
D) Some firms have turned to NGO critics to have the NGOs certify their policies.

Accepted Answer

All industries are not equal in terms of their exposure to CSR challenges. Different industries face different types and levels of CSR challenges based on their operations, supply chains, and impact on the environment and society. Energy- and materials-intensive industries (such as chemicals) and firms that are major outsourcers in foreign countries are some of the industries that are often criticized for their CSR practices. Some firms may also turn to NGO critics to improve their CSR policies, but this is not a universal strategy that all firms use to address CSR challenges.

Question 18

The participation of which of the following groups is essential in an accommodative strategy? ​
A)​NGOs.
B)​Managers.
C) ​Consumers.
D) ​Suppliers.

Accepted Answer

Managers are essential in an accommodative strategy as they are responsible for implementing and overseeing the strategy within the organization.

Question 19

As seen through the instrumental view of CSR, those who are skeptical of CSR compliance claim:
A)That firms may not necessarily be sincere.
B)That firms may be compelled to appear to be sensitive to CSR by impression management-in other words, "window dressing."
C) That many firms may chase fads by following what others are doing, while not having truly internalized the need for CSR.
D) That CSR activities simply represent a useful means to help make good profits; firms are not necessarily becoming more "ethical."

Accepted Answer

The answer of As seen through the instrumental view of...

Question 20

There is agreement throughout society that:
A)Overseas expansion is good because it helps improve standards of living around the world.
B)A negative possibility of overseas expansion is that it may cause loss of jobs in the home country.
C) Firms should stick strictly to business within a country and not seek to impose their views of human rights on other countries that have different views.
D) Firms have a responsibility to do whatever is necessary to assure that the human rights that are respected in the home country are implemented in host countries.

Accepted Answer

While there may be varying opinions on the benefits and risks of overseas expansion, it is widely recognized that one potential negative consequence is the loss of jobs in the home country. This issue should be carefully considered and addressed by firms engaging in overseas expansion. The other options (A, C, and D) are not universally agreed upon and have varying levels of support and criticism.

Quiz 12: Strategizing With Corporate Social Responsibility

From an institutional perspective, proactive activities are indicative of all the following EXCEPT:

In regard to managers and CSR, the following are true EXCEPT:

All firms have a different combination of resources; therefore, from a resource-based perspective:

Those who are opposed to strong efforts toward CSR would use which of the following arguments?

Numerous components within a firm, such as formal management control systems and informal relationships between managers and employees that may be especially relevant to CSR are often called:

Those who feel that firms that expand into emerging economies are failing their CSR responsibilities are most likely to claim that:

Although a code of conduct tangibly expresses values of an organization, seeing it as window dressing is the assessment of the:​

In regard to the link between CSR and economic performance:

A firm that participates in social causes not directly related to the management of its primary stakeholders is engaged in: ​

An example of a secondary stakeholder group is:

Which of the following would NOT be considered an underlying motivation behind MNEs' voluntary "green practices"?

An example of a primary stakeholder group is:

From a corporate governance perspective, MNEs are: ​

In the post-Great Recession environment, the responsibility of managers means:​

Reactive firms:

Some CSR advocates who question motives of firms implementing CSR are pleased that:

In regard to the extent of CSR challenges, the following are true EXCEPT:

The participation of which of the following groups is essential in an accommodative strategy? ​

As seen through the instrumental view of CSR, those who are skeptical of CSR compliance claim:

There is agreement throughout society that:

Although a code of conduct tangibly expresses values of an organization, seeing it as window dressing is the assessment of the:

A firm that participates in social causes not directly related to the management of its primary stakeholders is engaged in:

From a corporate governance perspective, MNEs are:

In the post-Great Recession environment, the responsibility of managers means:

The participation of which of the following groups is essential in an accommodative strategy?