Question 1

Which one of the following statements is correct?&#10;A)Most religions include commandments about socially responsible investment (SRI).&#10;B)SRI is a fairly recent concept and is therefore not touched by most world religions.&#10;C)Very few religions include commandments about SRI.&#10;D)None of the above.

Accepted Answer

A

Question 2

Socially-responsible investment (SRI)funds ...&#10;A)underperform relative to the stock market as well as relative to conventional funds.&#10;B)underperform relative to conventional funds.&#10;C)outperform relative to the stock market.&#10;D)None of the above.

Accepted Answer

The performance of socially-responsible investment (SRI) funds relative to the stock market and conventional funds can vary widely, and there is no definitive evidence that they consistently underperform or outperform.

Question 3

Which one of the following definitions of corporate social responsibility (CSR)is correct?&#10;A)CSR deals with the managerial consideration of non-market forces or social aspects of corporate activity outside a market or regulatory framework and includes consideration of issues such as employee welfare, community programmes, charitable donations, and environmental protection.&#10;B)CSR deals with the managerial consideration of market forces.&#10;C)CSR deals with the managerial consideration of non-market forces or social aspects of corporate activity within a market or regulatory framework and includes consideration of issues such as employee welfare, community programmes, charitable donations, and environmental protection.&#10;D)CSR deals with the managerial consideration of market forces or social aspects of corporate activity outside a market or regulatory framework and includes consideration of issues such as employee welfare, community programmes, charitable donations, and environmental protection.

Accepted Answer

Corporate Social Responsibility (CSR) encompasses managerial actions considering non-market forces or social aspects outside the market or regulatory frameworks. It includes initiatives like employee welfare, community programs, charitable donations, and environmental protection, which are not directly related to market forces or regulatory compliance but are undertaken for the broader social good and ethical considerations.

Question 4

Which one of the following statements is correct?&#10;A)CSR attributes normally include community relations and the environment.&#10;B)An exclusionary screen is also sometimes called a sin industry.&#10;C)Tobacco is an example of a frequently used exclusionary screen.&#10;D)All of the above.

Accepted Answer

A) CSR (Corporate Social Responsibility) attributes often include actions taken to positively impact the community and the environment.
B) An exclusionary screen refers to screening out certain industries or companies from an investment portfolio based on ethical or moral reasons. It is also known as a sin industry screen.
C) Tobacco is a common example of an excluded industry due to its negative health impacts and controversial ethical considerations. 
Therefore, all three statements (A, B, and C) are correct, making option D the best choice.

Question 5

Empirical evidence suggests that &#8230;&#10;A)Firms with better corporate governance are more likely to engage in CSR.&#10;B)Firms from common law countries have lower CSR ratings.&#10;C)Firms from Scandinavian countries have the highest CSR ratings.&#10;D)All of the above.

Accepted Answer

Empirical evidence supports all the statements provided: A) Firms with better corporate governance are indeed more likely to engage in Corporate Social Responsibility (CSR) as good governance often aligns with ethical, sustainable, and socially responsible practices. B) Firms from common law countries often have lower CSR ratings compared to those from civil law countries, possibly due to differences in regulatory frameworks, stakeholder engagement, and societal expectations. C) Firms from Scandinavian countries are frequently found to have the highest CSR ratings, likely due to the region's strong emphasis on sustainability, social equality, and corporate responsibility.

Question 6

The empirical literature suggests that ...&#10;A)Only CSR improving the firm's relations with its primary stakeholders improves financial performance.&#10;B)There is a positive link between firm performance and CSR.&#10;C)CSR is higher in common law countries.&#10;D)It is not important to distinguish between the type of corporate social responsibility (CSR)when studying the impact on firm performance.

Accepted Answer

The answer of The empirical literature suggests that ...&#10;A)Only CSR...

Deck 13: Corporate Social Responsibility and Socially Responsible Investment