Question 1

The idea that MNEs should not interfere in the domestic political affairs of the host country has been enshrined in a number of codes of MNE but CSR advocates have stressed the necessity for MNEs to engage in actions that often constitute political activity.

Accepted Answer

This statement is true. Some of the actions that constitute political activity by MNEs include advocating for human rights, supporting civic engagement, and promoting democracy.

Question 2

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

False

Question 3

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 CSR aims to achieve this goal by considering the environmental, social, and economic impacts of business practices and decisions.

Question 4

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

Accepted Answer

While some CSR advocates may hold socialist beliefs, not all of them do, and the idea that nearly all advocates argue for a revival of socialism is not accurate.

Question 5

Advocates of shareholder capitalism argue that if firms attempt to attain social goals, it will actually help them focus on profit maximization and its derivative, shareholder value maximization).

Accepted Answer

The answer of Advocates of shareholder capitalism argue that if...

Question 6

Milton Friedman, a University of Chicago economist and Nobel laureate, suggested: "The business of business is business."

Accepted Answer

This quote summarizes Friedman's belief that the main objective of a business is to maximize profits for its shareholders, rather than also considering social or ethical responsibilities.

Question 7

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 been critical or even hostile towards the company in the past. This is because independent certification through NGOs adds credibility and transparency to a company's CSR efforts, and can serve as a way to demonstrate a commitment to social responsibility and sustainability.

Question 8

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 other civil society stakeholders have gained significant power and influence in holding firms and governments accountable for their actions, through advocacy, public campaigns, and pressure tactics. They have also been instrumental in shaping legislation and policies related to social and environmental issues. Globalization has provided new channels for engagement and activism, enabling civil society actors to amplify their impact and reach broader audiences through digital platforms and international networks.

Question 9

The anti-WTO protests in Seattle in 1999 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 protests in Seattle were largely fueled by a sense that globalization was benefiting corporations at the expense of workers and the environment, and that the WTO was exacerbating this trend. Many protestors also criticized the lack of social responsibility exhibited by firms that relocate factories and jobs to countries with weaker labor and environmental regulations.

Question 10

The five forces framework reinforces the important point that all industries are equal in terms of their exposure to CSR challenges.

Accepted Answer

The five forces framework does not make any reference to CSR challenges. It is a tool used to analyze the competitive forces in an industry. Therefore, it does not suggest that all industries are equal in terms of their exposure to CSR challenges.

Question 11

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 12

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 concentrated, there are fewer players and they are more likely to recognize the impact of their actions on each other and on the industry as a whole. This can lead to a greater sense of shared responsibility and a recognition of the need to adopt higher CSR standards to promote the long-term sustainability of the industry.

Question 13

Since 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 suggests that a firm's economic performance is based on its unique resources and capabilities, and therefore not every firm's performance is likely to benefit from CSR. Factors such as the industry, market conditions, and stakeholder preferences can impact how CSR affects a firm's performance.

Question 14

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, the competitors are more likely to recognize their mutual interdependence and the impact of their actions on each other. This can lead to a greater awareness of the need for higher CSR standards in order to maintain the long-term viability of the industry.

Question 15

There is no conclusive evidence of a direct, positive link between CSR and economic performance, such as profits and shareholder returns.

Accepted Answer

While there have been studies and arguments that suggest a possible correlation between CSR and positive economic performance in the long run, there is no clear and direct evidence of a causal relationship between the two. The relationship between CSR and economic performance can be complex and context-specific.

Question 16

Reactive Strategy often involves an "out of sight, out of mind" mentality.

Accepted Answer

Reactive Strategy typically involves only addressing problems as they arise and not being proactive in preventing them. Therefore, there may be a lack of attention or consideration given to issues that are not currently causing problems.

Question 17

Primary stakeholder groups are defined as "those who influence or affect, or are influenced or affected by, the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival."

Accepted Answer

This is a incorrect statement. Primary stakeholder groups are those who engage in transactions with the corporation or are essential for its survival, such as shareholders, employees, customers, suppliers, and creditors.

Question 18

Suppliers and customers are typically considered primary stakeholders.

Accepted Answer

Suppliers and customers are considered primary stakeholders as they have a direct impact and interest in the company's activities and success. Other primary stakeholders include employees, shareholders, and creditors.

Question 19

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

Accepted Answer

This definition of a stakeholder is widely accepted and acknowledged by various organizations and scholars.

Question 20

Although framed in a domestic versus overseas context, the heart of this debate boils down to the foundational thorny point that frustrates CSR advocates: In a capitalist society, the shareholders-otherwise known as capitalists-are the ones who matter at the end of the day.

Accepted Answer

The statement accurately reflects the crux of the debate around CSR in a capitalist society. Shareholders hold significant sway in corporate decision-making, which can create conflicts with CSR initiatives that prioritize the needs of other stakeholders, such as employees, communities, and the environment.

Quiz 12: Strategizing With Corporate Social Responsibility

The idea that MNEs should not interfere in the domestic political affairs of the host country has been enshrined in a number of codes of MNE but CSR advocates have stressed the necessity for MNEs to engage in actions that often constitute political activity.

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

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."

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

Advocates of shareholder capitalism argue that if firms attempt to attain social goals, it will actually help them focus on profit maximization and its derivative, shareholder value maximization).

Milton Friedman, a University of Chicago economist and Nobel laureate, suggested: "The business of business is business."

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

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.

The anti-WTO protests in Seattle in 1999 are indicative of resentment against globalization and a perceived lack of CSR in firms, particularly those that relocate offices and jobs) to foreign countries.

The five forces framework reinforces the important point that all industries are equal in terms of their exposure to CSR challenges.

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

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.

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

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.

There is no conclusive evidence of a direct, positive link between CSR and economic performance, such as profits and shareholder returns.

Reactive Strategy often involves an "out of sight, out of mind" mentality.

Primary stakeholder groups are defined as "those who influence or affect, or are influenced or affected by, the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival."

Suppliers and customers are typically considered primary stakeholders.

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

Although framed in a domestic versus overseas context, the heart of this debate boils down to the foundational thorny point that frustrates CSR advocates: In a capitalist society, the shareholders-otherwise known as capitalists-are the ones who matter at the end of the day.