Question 1

Social screening is the mechanism by which socially conscious investors choose their investment advisors.

Accepted Answer

Social screening is the mechanism by which socially conscious investors choose their investments, not their investment advisors. Socially conscious investors may choose investment advisors who have expertise in socially responsible investing, but the screening process itself is focused on the specific investments and their impact on society and the environment.

Question 2

The CSR Pyramid is a stakeholder model--that is,each of its components addresses different stakeholders.

Accepted Answer

The CSR Pyramid includes four components, each of which addresses a different stakeholder group: economic responsibility for shareholders, legal responsibility for compliance with laws and regulations, ethical responsibility for the values and standards of the organization, and philanthropic responsibility for contributing to society.

Question 3

A society more satisfied with corporate social responsiveness,performance,and citizenship will invariably have reduced criticism of business.

Accepted Answer

False

Question 4

Corporate social performance emphasizes the financial results of what the firm hopes to accomplish.

Accepted Answer

Corporate social performance encompasses not only financial performance but also the firm's impact on social, environmental, and ethical issues. It reflects the firm's commitment to creating value for all stakeholders, not just shareholders.

Question 5

Corporate social responsiveness is focused on the action phase of management response to social demands.

Accepted Answer

Corporate social responsiveness refers to the actions taken by corporations to address social demands or issues. Therefore, it is focused on the action phase of management response.

Question 6

The company town,in which a major employer builds homes and commercial buildings,and provides the goods and services needed by its employees,is an example of paternalistic social responsibility.

Accepted Answer

The company town is an example of paternalistic social responsibility, as the employer takes on responsibility for the well-being of its workers by providing housing, goods, and services.

Question 7

The marketplace in the classical view of economics,while being a good allocator of goods and services,does not do a good job of ensuring that business always acts fairly and ethically.

Accepted Answer

The classical view of economics emphasizes the efficiency of the market in allocating goods and services but does not address issues of fairness or ethical behavior by businesses.

Question 8

In practical terms,the socially responsible firm must be a good corporate citizen.

Accepted Answer

The answer of In practical terms,the socially responsible firm must...

Question 9

Arguments against corporate social responsibility tend to focus on the ethical category.

Accepted Answer

Arguments against corporate social responsibility can focus on a variety of reasons, including financial concerns and the belief that businesses should focus solely on maximizing profits. The ethical category is just one aspect that may be considered.

Question 10

In order to operate with a true stakeholder perspective,firms must accept the multiple bottom line view.

Accepted Answer

The multiple bottom line view recognizes that a firm's success is not just measured by financial performance, but also by its impact on society and the environment. This perspective allows firms to consider the needs and interests of all stakeholders in their decision-making processes.

Question 11

Philanthropy is the term by Adam Smith in Wealth of Nations to describe the operation of self interest resulting in the good of society.

Accepted Answer

The term philanthropy was not coined by Adam Smith in Wealth of Nations. Smith primarily emphasized the role of self-interest and competition in promoting economic growth and prosperity. The term philanthropy refers to the practice of using wealth to promote the well-being of others, which is not a central focus of Smith's theories.

Question 12

Carroll's Corporate Social Performance Model helps managers understand that social responsibility is separate and distinct from financial performance.

Accepted Answer

Carroll's Corporate Social Performance Model integrates social responsibility into the core framework of a business, suggesting that social responsibility and financial performance are interconnected and should be considered together for sustainable success.

Question 13

Research has indicated that improvements in corporate social performance are associated with improved financial results.

Accepted Answer

Many studies have shown a positive correlation between strong corporate social responsibility practices and financial performance. This is likely due to factors such as improved reputation, reduced risk, and increased employee and customer loyalty.

Question 14

Proponents of the concept of corporate social responsiveness believe that the focus of corporate social responsibility on accountability or obligation is not dynamic enough to describe business's willingness and activity to respond to social demands.

Accepted Answer

Proponents of the concept of corporate social responsiveness believe that the traditional focus of corporate social responsibility on accountability or obligation is not sufficient and that businesses must be willing and active in responding to social demands in a dynamic way.

Question 15

A survey done by Walker Information shows that the public thinks that CSR factors impact a company's reputation even more than its quality,service,and price do.

Accepted Answer

The answer of A survey done by Walker Information shows...

Question 16

An argument for corporate social responsibility is that it helps business compete in the global economy.

Accepted Answer

The answer of An argument for corporate social responsibility is...

Question 17

Social responsible investing is a very new concept,originating in the early 1990s.

Accepted Answer

Socially responsible investing dates back to the 18th century, but it gained momentum in the 1960s during the civil rights movement and expanded in the 1970s as advocacy groups began to focus on social and environmental concerns in the investment process.

Question 18

One of the biggest advances in corporate social performance is that the performance criteria for measuring financial performance and social responsibility have been agreed upon.

Accepted Answer

While there have been efforts to develop criteria for measuring both financial performance and social responsibility, there is not yet a widely agreed upon set of criteria.

Question 19

In Carroll's four-part definition of corporate social responsibility,ethical responsibilities are required of business by society.

Accepted Answer

Ethical responsibilities are expected by society, not required. They go beyond legal obligations and involve doing what is right, fair, and just.

Question 20

The corporate social performance concept has not yet spread to the business community.

Accepted Answer

This statement is false. The concept of corporate social performance has been widely adopted by the business community, with many companies realizing the importance of integrating social and environmental considerations into their operations.

Quiz 2: Corporate Citizenship: Social Responsibility, Responsiveness, and Performance