Question 1

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

Accepted Answer

This is the commonly accepted definition of a stakeholder in business. This is the definition of a stakeholder according to the stakeholder theory.

Question 2

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

Accepted Answer

Social issue participation can enhance a firm's reputation, attract and retain customers and employees, and drive innovation.

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.

Accepted Answer

The defensive strategy is more focused on meeting legal requirements and doing the minimum required for compliance, while the accommodative strategy involves taking a more proactive approach to CSR beyond just following laws.

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.

Accepted Answer

Proactive CSR activities are often driven by a combination of ethical considerations, stakeholder expectations, and strategic business benefits, rather than solely by formal regulations or managers' personal desires 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.

Accepted Answer

A promoter of the Corporate Social Responsibility (CSR) approach would argue that businesses can thrive while also benefiting society and the environment, suggesting that success in business does not have to come at the expense of others. CSR emphasizes sustainable and ethical practices that aim for a positive impact on society, suggesting a win-win scenario rather than a zero-sum game of winners and losers.

Question 6

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

Accepted Answer

Managers should not keep CSR on the backburner, regardless of the state of regulations and social issues in developing countries. It is important for companies to prioritize CSR initiatives and take responsibility for their impact on society and the environment. Waiting for regulations and social issues to improve before taking action is not a proactive approach and may harm the reputation and success of the company in the long run. Managers should not keep CSR on the backburner, rather they should prioritize it as an important aspect of their business operations. While regulations and social issues in developing countries may pose challenges, incorporating CSR into business practices can have long-term benefits for both the company and society. It is important for managers to take a proactive approach towards CSR and work towards sustainable and ethical business practices.

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.

Accepted Answer

The negative view is that codes of conduct may be written as a formality or for PR purposes, rather than as a sincere commitment to ethical behavior. Codes of conduct can be seen as insincere if they are not followed and are only written for the purpose of appearance or public relations.

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.

Accepted Answer

In a free market approach, the primary purpose of a firm is to maximize profits for shareholders, making them the most important stakeholder. In contrast, CSR approach focuses on the responsibility of a firm towards all stakeholders, including shareholders, employees, customers, suppliers, and local communities, and argues that they all have a right to fair treatment and benefits. In a free market approach, the ultimate goal of a firm is to maximize shareholder wealth, while in a CSR approach, the firm has a responsibility towards all stakeholders and not just the shareholders.

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.

Accepted Answer

The statement accurately reflects the institution-based view, which acknowledges that a code of conduct may have weaknesses but still sees it as a positive step towards implementing CSR practices. The institution-based view acknowledges that a code of conduct is not sufficient for full CSR implementation, but it still recognizes it as a positive step towards increasing ethical behavior in organizations. Therefore, the statement is true.

Question 10

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

Accepted Answer

The free market approach allows MNEs to expand their operations globally by reducing trade barriers and encouraging international competition. This has led to the rapid internationalizing and globalization of many MNEs. The free market approach allows for the unrestricted flow of goods, services, and capital across international borders, which has facilitated the rapid internationalization and globalization of many MNEs. This approach emphasizes competition, efficiency, and innovation, which has incentivized firms to expand their operations globally to tap into new markets and resources.

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.

Accepted Answer

The institution-based view of CSR emphasizes that individuals and organizations act in a rational manner, taking into account the incentives and norms in their institutional environment. This perspective highlights the importance of setting up appropriate incentives and regulations to encourage socially responsible behavior.

Question 12

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

Accepted Answer

The institution-based view emphasizes the strategic responses of firms towards social and environmental issues, including the adoption of CSR practices. It suggests that firms should align their CSR strategies with the expectations of local institutions and stakeholder groups, in order to enhance their legitimacy and improve their operational performance. The institution-based view analyzes how firms respond to external institutional pressures, and how their actions align with societal norms and expectations. It looks at how firms strategically adopt CSR practices to gain legitimacy, reputation, and access to resources, and argues that firms that align their CSR practices with institutional norms in the host country are more effective in achieving their goals. Therefore, the effectiveness of the CSR approach is viewed through a strategic lens in the institution-based view.

Question 13

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

Accepted Answer

The resource-based view of CSR suggests that a company's resources, including its socially responsible initiatives, can lead to economic benefits such as increased competitive advantage and improved financial performance. Therefore, this approach can help test the link between CSR and economic performance. The resource-based view of CSR assumes that a company's resources (including its social and environmental initiatives) can contribute to its economic performance. By examining whether or not firms that engage in CSR see improved financial results, the resource-based view can help 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.

Accepted Answer

The answer of Free market advocates argue that firms may...

Question 15

What is range anxiety?

Accepted Answer

Range anxiety refers to the fear or concern that an electric vehicle might run out of battery before reaching the next charging station, leaving the driver stranded. This is a common concern among those considering buying an EV, as the range of these vehicles is still somewhat limited compared to gasoline-powered vehicles. Range anxiety is the fear or concern that an electric vehicle might run out of battery charge before reaching the next available charge station or destination, leading to being stranded on the road.

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.

Accepted Answer

The answer of The CSR approach draws upon Adam Smith...

Question 17

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

Accepted Answer

The quote "the business of business is business" is often associated with the free market approach which emphasizes the primary goal of a firm is to maximize profits and shareholder value. The quote "The business of business is business" is often associated with Milton Friedman and represents a view that a firm's sole purpose should be to maximize profits for its shareholders. This aligns with the free market approach to business.

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.

Accepted Answer

The CSR approach believes that economic self-interests can lead to negative consequences, such as greed and abuses. Therefore, it encourages firms to consider broader social and environmental concerns in their decision making. The CSR (Corporate Social Responsibility) approach emphasizes that firms should also consider the impact of their actions on society and the environment, rather than solely prioritizing economic self-interest. This is because relying on economic self-interest as the sole guide for decision making may lead to unethical behavior and negative consequences for stakeholders, as seen in cases such as Enron and the financial crisis of 2008. Therefore, the CSR approach argues for a more balanced and socially responsible approach to business decision making.

Question 19

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

Accepted Answer

CSR (Corporate Social Responsibility) has become an essential aspect that many companies focus on to integrate into their business structure, culture, and strategy. Firms have recognized its importance and are aligning their operations with social and environmental goals to make a positive impact on society. Many firms are recognizing the importance of CSR (Corporate Social Responsibility) and are incorporating it into their business strategies and value systems.

Question 20

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

Accepted Answer

Secondary stakeholders are those who indirectly affect or are affected by a company's actions, such as the media, trade associations, and special interest groups, but are not essential for its immediate survival like primary stakeholders (e.g., employees, customers, suppliers, shareholders).

Quiz 14: Competing on Marketing and Supply Chain Management