Deck 12: Strategic CSR

Question 1

According to the textbook,strategic CSR is not about ________ but instead is about ________.

A)philanthropy; day-to-day operations
B)day-to-day operations; profit optimization
C)profit optimization; day-to-day operations
D)day-to-day operations; strategic corporate philanthropy

Answer 1

A

Question 2

Today,the United States makes approximately ________ percent of the clothing its consumers purchased compared to ________ percent in 1990.

A)3,50
B)25,75
C)75,25
D)10,80

Answer 2

A

Question 3

When a US retail clothing company outsources production overseas,it addresses the issue of a livable wage within the United States.According to Porter and Kramer's framework,what is this an example of?

A)A generic social issue
B)Strategic corporate philanthropy
C)Value chain social impacts
D)The social dimension of a competitive context

Answer 3

A

Question 4

Which of the following is NOT one of the components of the working definition of strategic CSR?

A)Understanding and responding to needs of stakeholders
B)Responsibly addressing environmental sustainability
C)Incorporating a CSR perspective within the firm's culture and strategic planning processes
D)Any actions taken are directly related to core operations.

Question 5

Which activist organization's activity resulted in Citigroup's adoption of wide-ranging environmental metrics in the criteria it uses to grant loans?

A)EarthFirst!
B)Greenpeace
C)Rainforest Action Network (RAN)
D)Sierra Club

Question 6

In 1911,a US Supreme Court ruling forced Standard Oil to

A)pay its employees more fairly.
B)hire members of minority groups.
C)break up into separate companies.
D)remove lead from its gasoline.

Question 7

According to the textbook,corporate social responsibility concerns the economic,legal,ethical,and ________ issues that stakeholders view as directly related to the firm's plans and actions.

A)environmental
B)governance
C)social
D)discretionary

Question 8

The International Labour Organization (ILO)estimates that there are ________ economically active 5- to 14-year-olds in the Asia-Pacific region.

A)less than 1 million
B)approximately 5 million
C)approximately 50 million
D)more than 100 million

Question 9

Johnson & Johnson's "Credo" places ________ as its lowest priority.

A)employees
B)customers
C)stockholders
D)Johnson & Johnson treats all its stakeholders equally.

Question 10

According to the textbook,prominent business leaders,such as Bill Gates and Muhammad Yunus,have sought to reform the underlying principles of ________ by urging firms to ________.

A)strategic CSR,adopt goals of profit maximization.
B)capitalist ideology,adopt goals of profit optimization.
C)strategic CSR,adopt goals beyond a focus on profit.
D)capitalist ideology,adopt goals beyond a focus on profit.

Question 11

In what decade did the Fair Trade label first appear?

A)1960s
B)1970s
C)1980s
D)1990s

Question 12

According to the textbook,the firm

A)exists independently of its stakeholders.
B)exists to solve social,moral,and ethical problems.
C)exists only with the support of shareholders.
D)does not exist independently of its stakeholders.

Question 13

High-frequency traders

A)base decisions on a company's long-term future prospects.
B)base decisions on a company's diverse set of stakeholders.
C)do not base decisions on a company's primary stakeholders.
D)do not base decisions on a company's long-term future prospects.

Question 14

A focus on profit optimization orients the manager toward

A)short-term profits.
B)the interests of ETF shareholders.
C)the interests of a broader collection of constituent interests.
D)It orients the manager toward all of these.

Question 15

Which of the following is NOT one of the three levels in Porter and Kramer's framework for incorporating a social decision in firms' strategic decision making?

A)Generic social issues
B)Strategic corporate philanthropy
C)Value chain social impacts
D)Social dimensions of the competitive context

Question 16

Which activist organization's activity resulted in Shell's change of course regarding the breakup of the Brent Spar oil platform?

A)EarthFirst!
B)Greenpeace
C)Rainforest Action Network (RAN)
D)Sierra Club

Question 17

Which of the following is NOT an example of strategic CSR?

A)Dell plants a tree for each computer it sells.
B)Nike addresses the issue of a livable wage in countries where its products are manufactured.
C)Budweiser provides education about alcohol abuse to high school students.
D)Unilever provides affordable cleaning products in developing countries.

Question 18

For a US chocolate company,addressing the issue of child labor in the countries where cocoa beans are harvested is

A)a generic social issue.
B)strategic corporate philanthropy.
C)a value chain social impact.
D)the social dimension of a competitive context.

Question 19

According to the textbook,strategic CSR is not about ________ but instead is about ________.

A)sharing value; creating value
B)creating value; sharing value
C)sharing value; meeting primary stakeholders' desires
D)meeting primary stakeholders' desires; meeting all stakeholders' desires

Question 20

________ seek firms with a share price that reflects sound economic fundamentals,while ________ seek firms based on whether they the share price will rise.

A)Speculators,investors
B)Investors,speculators
C)Stakeholders,shareholders
D)Shareholders,stakeholders

Question 21

Corporate social responsibility allows executives to address stakeholder concerns in ways that carry strategic benefits for the firm.

Question 22

Starbuck's Coffee and Farmer Equity (C.A.F.E.)Practices do NOT include guidelines for coffee farmers in which area?

A)Product quality
B)Educational requirements for suppliers
C)Social responsibility
D)Environmental leadership

Question 23

Globalization has dramatically changed the clothing industry over the past 25 years.Describe the changes that have occurred and analyze their effects on firms from a corporate social responsibility perspective.

Question 24

In 2013,more than 1,100 people were crushed to death when a clothing factory complex collapsed in what country?

A)Bangladesh
B)India
C)Indonesia
D)Pakistan

Question 25

Starbucks has been accused of profiting at the expense of coffee growers.

Question 26

Describe the perspectives of Bill Gates and Muhammad Yunus on the future of capitalism.Do you agree with these perspectives? Explain your reasoning.

Question 27

"Increasingly,the idea that shareholders have the best interest of the firm at heart is hard to defend." Analyze that quote and provide your reaction.Do you agree or disagree with the statement?

Question 28

A commodity's fair trade price represents

A)a premium over the market price for the good.
B)a living wage for the producers or suppliers.
C)the average wage of the country in which the good was produced.
D)a legally mandated minimum price.

Question 29

When did Dunkin' Donuts start serving only fair trade coffee in its stores?

A)1983
B)1993
C)2003
D)Dunkin' Donuts does not serve fair trade coffee.

Question 30

Which of the following is NOT a criticism of fair trade?

A)Fair trade distorts the market by encouraging the overproduction of goods that are economically unsustainable.
B)Fair trade does not really improve the incomes or working conditions of farmers and workers in the developing world.
C)Fair trade is open to abuse by firms that want to appear more socially responsible than they actually are.
D)The certification process of defining what is fair is open to debate.

Question 31

Global retail sales of Fairtrade products reached an estimated ________ in 2013.

A)£1.4 billion ($2 billion)
B)£2.4 billion ($3.5 billion)
C)£4.4 billion ($6.3 billion)
D)£10.4 billion ($15 billion)

Question 32

Ethical behavior is not a prerequisite assumption for strategic CSR.

Question 33

Nike today is one of the most progressive global corporations in terms of its ability to balance the various competing pressures up and down the supply chain.

Question 34

What can societal stakeholders expect from firms in terms of supply chain management?

Question 35

GAP received negative publicity when it was discovered that

A)underage children were making the firm's clothing in India.
B)the dyes used in its blue jeans were very harmful to the environment.
C)the cotton used to make its jeans was bought at extremely low prices from highly subsidized farming operations in the United States.
D)Each of these problems was revealed in an investigative report of GAP by the UK newspaper The Observer.

Question 36

The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act was designed as a legislative response to the 2008 financial crisis,but it also contains an important clause related to

A)conflict minerals.
B)fair trade practices.
C)greenwashing.
D)The Dodd-Frank Act addresses all of these issues.

Question 37

Which of the following has NOT happened since Apple received negative publicity over the working conditions at its largest supplier factory,Foxconn in China?

A)Apple moved some of its production operations to Mexico.
B)Apple released a report that comprehensively assessed working conditions in firms that represent 97% of its materials,manufacturing,and procurement spending.
C)Foxconn announced it will increase wages,reduce overtime,and improve working conditions.
D)Apple agreed to have all its supplier factories audited by a third-party organization,the Fair Labor Association.

Question 38

Should Starbucks form partnerships with farmers in Guatemala? Why or why not?

Question 39

Strategic CSR is essentially the intersection between sustainability and business ethics.

Question 40

When did the UK government pass the Modern Slavery Act?

A)1965
B)1975
C)1995
D)2015