Deck 4: Corporate Social Responsibility

Question 1

Apart from achieving a social benefit over and above maximizing profits for its shareholders, corporate social responsibility also requires an organization to meet all its legal obligations.

Answer 1

True

Question 2

Layoffs reduce corporation costs and only affect the laid-off employees.

Answer 2

False
Explanation: The laid-off employees are obviously hardest hit by this decision; it also has other far-reaching consequences. The communities in which those employees reside have now lost the spending power of those employees.

Question 3

Organizations find it easy to make the transition from corporate social responsibility (CSR) as a theoretical concept to CSR as an operational policy due to the major trends driving it.

Answer 3

False
Explanation: Even with major trends driving CSR, many organizations have found it difficult to make the transition from CSR as a theoretical concept to CSR as an operational policy.

Question 4

Henry Ford II recognized the fact that corporations operate in an isolated environment.

Question 5

The social contract approach to corporate management is the perspective that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers.

Question 6

The employees of Brennerz Inc. are encouraged to cycle to work every day to reduce environmental pollution. The given scenario exemplifies corporate ethics.

Question 7

Globalization represents a new stage of capitalist development, this time with public institutions in place to protect society by balancing private corporate interests against broader public interests.

Question 8

Friedman's view of the corporate world supports the rights of individuals to make money with their investments.

Question 9

Extabet Enterprises donates a certain percentage of their profit to local charities, but it does not comply with all the legal industry standards of operating in a safe working environment. This depicts corporate social responsibility (CSR).

Question 10

The policy of "doing well by doing good" refers to the belief that doing good for the company is just good business.

Question 11

Doing what is in the best long-term interest of a customer invariably fails to achieve what is best for a company.

Question 12

The instrumental approach to corporate management is the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.

Question 13

U.S. citizens consider the public sector as the most appropriate venue for addressing a growing list of social problems.

Question 14

With the transition to an information-based economy, it has become impossible for consumers and investors to have any information at their disposal than at any time in history.

Question 15

Corporate citizenship is an element of corporate social responsibility (CSR).

Question 16

Corporate ethics refers to the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.

Question 17

Instrumental approach to corporate management is the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.

Question 18

The social contract approach is a very simplistic model that argues that the corporation only has an obligation to itself.

Question 19

Transparency is a major trend behind the corporate social responsibility (CSR) phenomenon.

Question 20

Milton Friedman asserted that there are five major trends behind the corporate social responsibility (CSR) phenomenon.
F. Keefe asserted that there are five major trends behind the corporate social responsibility (CSR) phenomenon.

Question 21

All CSR initiatives invariably generate immediate financial gains to the organization after implementation.

Question 22

Altruistic corporate social responsibility (CSR) represents a type of CSR in which organizations pursue a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities, and their ethical responsibilities to do the right thing for all their stakeholders.

Question 23

The Kyoto Protocol requires developed nations to reduce their greenhouse gas emissions only by modifying their domestic industries.

Question 24

The country of Cadmia was hit by a hurricane. Singerz Corporation responded to the devastation caused by the hurricane by donating fuel for transportation supplying relief aid. In addition, it announced a direct cash donation of $1 million to support the relief and rebuilding efforts. This is an example of strategic corporate social responsibility (CSR).

Question 25

The practice of making operations "carbon neutral" is a way to offset whatever damage is being done to the environment due to greenhouse gas emissions by purchasing credits from "carbon-positive" projects to balance out emissions.

Question 26

In contrast to the alleged immorality of altruistic corporate social responsibility (CSR), critics argue that strategic CSR is ethically commendable since these initiatives benefit stakeholders while meeting fiduciary obligations to the company's shareholders.

Question 27

Anderson Enterprises (AE) issues free meal coupons to its employees and also provides them with travel allowances. This illustrates that AE pursues the triple bottom-line approach.

Question 28

Ethical CSR is the purest or most legitimate form of CSR.

Question 29

There are several standard ways to measure the achievements of the triple bottom-line approach.

Question 30

Strategic corporate social responsibility (CSR) targets programs that will generate the most positive publicity or goodwill for the organization.

Question 31

Strategic corporate social responsibility (CSR) runs the greatest risk of being perceived as self-serving behavior on the part of the organization.

Question 32

The Chicago Climate Futures Exchange (CCFE) promotes the standardization of carbon trading on a global scale.

Question 33

Corporations merely experimenting with corporate social responsibility initiatives run the risk of creating adverse results as the public sees little more than a token action that is concerned with publicity rather than community.

Question 34

Altruistic corporate social responsibility (CSR) targets programs that will generate the most positive publicity or goodwill for the organization.

Question 35

Ethical corporate social responsibility (CSR) is a philanthropic approach to corporate social responsibility in which organizations underwrite specific initiatives to give back to the company's local community or to designated national or international programs.

Question 36

The practices of making a company's operations "carbon neutral" was initially developed as a solution for those industries, such as airlines or automobile companies, that face significant challenges in reducing their emissions.

Question 37

Emissions credits are fixed for every market, and they cannot be bought or sold.

Question 38

Critics have argued that, from an ethical perspective, altruistic corporate social responsibility (CSR) is immoral since it represents a violation of shareholder rights if they are not given the opportunity to vote on the initiatives launched in the name of corporate social responsibility.

Question 39

There are four distinctive types of corporate social responsibility (CSR)-economic, ethical, altruistic, and strategic.

Question 40

One of the newest and increasingly questionable practices in the world of corporate social responsibility (CSR) is the notion of making operations "carbon neutral."

Question 41

Which of the following statements is true of the social contract approach to corporate management?

A)The primary focus of the old social contract laid emphasis on equal advancement in the quality of life and economic growth.
B)The modern social contract approach argues that there is an obligation for the corporation to meet the demands of society rather than just the demands of a targeted group of customers.
C)The consequences of the modern social contract approach to corporate management is growth at the expense of rising costs, wages growing at a lower rate than inflation, and so on.
D)The main focus of the old social contract was to maintain a longer-term perspective than just the delivery of quarterly earnings numbers.

Question 42

Which of the following statements is true of Milton Friedman's view of the corporate world?

A)Friedman argues that it is not considered unethical for a corporation to just deliver the profits of the company to the society rather than delivering it to its investors.
B)Friedman's position illustrates that an organization has a social responsibility that goes beyond serving the interests of their stockholders.
C)Friedman's theory that a company no longer requires senior executives to be accountable to the board of directors has been a crucial turning point in the business world.
D)Friedman argues that, as an employee of the corporation, a manager has an ethical obligation to fulfill his role in delivering on the expectations of his employers.

Question 43

What is the difference between the old social contract approach and the modern social contract approach to corporate management?

A)The old social contract emphasizes advancement in the quality of life, whereas the modern social contract approach emphasizes monetary and financial advancement.
B)The old social contract approach argues that there is an obligation for the corporation to meet the demands of society, whereas the modern social contract approach argues that a company's obligation is only to its shareholders.
C)The modern social contract approach focuses on the delivery of quarterly earnings numbers, from a short-term perspective, whereas the old social contract focuses on maintaining a longer-term perspective.
D)The modern social contract approach aims to meet the demands of all stakeholders and the shareholders, whereas the old social contract approach was based only on economic growth.

Question 44

Which of the following is an example of an organization's instrumental approach to corporate social responsibility (CSR)?

A)Anonymous Minds, an advertising firm, provides employees with healthy meals and has a gymnasium at their workplace.
B)Anderson Inc. provides employees with cab services or gives them full fuel allowance.
C)Larsen's Corp., an investment company, uses different mechanisms to increase profits and has performance incentives for its employees.
D)GreenSpin Inc. uses biodegradable plastic containers in its office cafeteria.

Question 45

Hoffmann Enterprises (HE), a manufacturer of industrial goods, primarily focuses on meeting the demands of the market with quality products. It also undertakes environmental protection endeavors that promote the use of renewable sources of energy. HE illustrates the _____ approach to corporate management.

A)free-enterprise
B)instrumental
C)shareholder
D)social contract

Question 46

Which of the following illustrates that a company has failed at implementing corporate social responsibility (CSR)?

A)It does not provide stock options for its employees.
B)It does not pay all taxes related to the profitable business operations.
C)It does not operate in hazardous working environments.
D)It does not provide flexible working hours to its employees.

Question 47

Corporate social responsibility (CSR) always assumes that a corporation is:

A)operating in a competitive environment.
B)reluctant in committing itself to follow a retrenchment strategy.
C)permitted to ignore federal and state legal obligations.
D)working only toward achieving its profit goals.

Question 48

Happy Times (HT) is an alcohol manufacturing brand that deals with several types of alcoholic beverages. HT uses social media for promoting the message of responsible drinking. It sponsors the FreeTaxi program for customers with HT membership on Christmas and New Year's Eve. It has also initiated several community welfare projects where a percentage of the profits go to the Hunger Relief Fund for Children. In the given scenario, which of the following is best illustrated?

A)Ethical ambiguity
B)Universal ethics
C)Emotional contagion
D)Corporate citizenship

Question 49

Which of the following is an example of corporate social responsibility (CSR)?

A)Brenner Enterprises gives its employees greater freedom in choosing projects.
B)Dawson Inc. uses a clean-fuel technology shuttle for employee conveyance.
C)Larsen Inc. provides free lunch coupons to its employees.
D)Infinite Corp. promotes team building activities for employees.

Question 50

Henry Ford II recognized that _____.

A)corporations' actions have no impact on their environmental conditions
B)corporations do not operate in an isolated environment
C)corporations were only economic enterprises and not social institutions
D)corporations have no responsibility toward their shareholders or their stakeholders

Question 51

In addition to achieving social benefits, which of the following best illustrates an example of a company effectively implementing corporate social responsibility (CSR)?

A)It provides its employees with free lunch.
B)It allows flexible working hours for its employees.
C)It gives better pricing deals to older clients.
D)It fulfills all its legal obligations.

Question 52

Spark Inc. (SI), a multinational corporation, had reported large losses in the previous financial year. To overcome these losses, the company planned to take the instrumental approach to corporate management. Which of the following best illustrates this approach?

A)It provides employees with healthy meals and has a gymnasium at the workplace.
B)It provides employees with cab services or gives them fuel allowance.
C)It uses its resources to enhance the productivity of employees and thus increases profits.
D)It uses biodegradable plastic containers in its office cafeteria.

Question 53

The instrumental approach to corporate social responsibility (CSR) states that:

A)the only obligation of a corporation is to promote socialist economic planning.
B)a corporation has an obligation to society over and above the expectations of its shareholders.
C)the only obligation of a corporation is to maximize profits for its shareholders.
D)a corporation has an obligation to the community and environment.

Question 54

Which of the following companies implements Milton Friedman's view of the corporate world?

A)A company that donates a certain portion of profit to an organization for underprivileged children
B)A company that makes as much profit as possible to ensure that the investments made by the company are successful
C)A company that stipulates that profits should be earned at any cost, be it deception or fraud
D)A company that believes its social responsibility is beyond serving the interests of its stockholders

Question 55

Which of the following best illustrates the social contract approach to corporate management?

A)Indibean Inc. promotes extensive work shifts.
B)Armac Inc. asks its employees to work on holidays to increase profits.
C)At Clark Enterprises, there have been substantial layoffs to control costs.
D)At Redder Enterprises, employees' wages have grown at a higher rate than inflation.

Question 56

Which approach to corporate social responsibility (CSR) assumes that there are no external consequences to the actions of the corporation and its managers?

A)Instrumental approach
B)Social contract approach
C)Trident approach
D)Utilitarian approach

Question 57

Which of the following statements is true of corporate social responsibility (CSR)?

A)The social contract approach to CSR states that the only obligation of a corporation is to maximize profits for its shareholders.
B)The awakening to CSR for most companies happened only after being surprised by public responses to issues that had not previously been a part of their business responsibilities.
C)The instrumental approach to CSR states that a corporation has an obligation to society over and above the expectations of its shareholders.
D)The ideology of CSR speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system."

Question 58

The _____ approach to corporate management refers to the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.

A)social contract
B)shareholder
C)free-enterprise
D)instrumental

Question 59

The term "_____" is best defined as the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.

A)value ethics
B)virtue ethics
C)corporate conscience
D)corporate aggressiveness

Question 60

According to the _____ to management, by recognizing stakeholders and not just shareholders, corporations must maintain a long-term perspective rather than simply delivering quarterly earnings numbers.

A)social contract approach
B)Kantian approach
C)virtue approach
D)instrumental approach

Question 61

_____ corporate social responsibility (CSR) refers to the philanthropic approach to CSR in which organizations target programs that will generate the most positive publicity or goodwill for the organization but which runs the greatest risk of being perceived as self-serving behavior on the part of the organization.

A)Altruistic
B)Ethical
C)Economic
D)Strategic

Question 62

Corporations that experiment with corporate social responsibility (CSR) initiatives run the risk of creating adverse results as:

A)employees feel that they are working for an insincere, uncaring organization.
B)the public sector is considered the best or most appropriate venue for addressing a growing list of social problems.
C)customers feel ignored since the corporation focuses solely on helping the community.
D)the organization sees the benefit of CSR but does not feel the need to develop the concept.

Question 63

Organizations pursue operational efficiency through detailed monitoring of their _____, that is, how much money is left after all the bills have been paid from the revenue generated from the sale of their prod­uct or service.

A)strategic policies
B)bottom line
C)employment remuneration
D)financial resourcing

Question 64

The policy of corporate social responsibility (CSR), where doing what's best for the customers translates into what's best for the company in the long run, exemplifies the _____.

A)social contagion theory
B)concept of doing well by doing good
C)concept of the unity of opposites
D)effective altruism theory

Question 65

Why is it difficult for many organizations to make the transition from corporate social responsibility (CSR) as a theoretical concept to CSR as an operational policy?

A)Corporations are aware of the disintegrative strategy that CSR can deploy and hence do not engage in its initiatives.
B)Employees refuse to work with such initiatives as they do not get paid for it.
C)Managers are unable to design initiatives that will benefit their company and the public.
D)Delayed response in financial gains tests the commitment of those organizations that are inclined to dispense with experimental initiatives.

Question 66

Which of the following, according to JosephF. Keefe, is a major trend behind the phenomenon of corporate social responsibility (CSR)?

A)Increased transparency of companies
B)Increased nationalization
C)Failure of the private sector
D)Failure of globalization in corporations

Question 67

According to JosephF. Keefe, which of the following is a major trend behind the corporate social responsibility (CSR) phenomenon?

A)Nationalization
B)Globalization
C)The failure of the private sector
D)The failure of the industrial sector

Question 68

The approach that considers a company's social, financial, and environmental impact rather than focusing solely on its financial impact is the _____ approach.

A)corporate governance
B)double bottom-line
C)ethical governance
D)triple bottom-line

Question 69

According to JosephF. Keefe, which of the following is true of the major trends behind the corporate social responsibility (CSR) phenomenon?

A)Companies easily conceal whatever they do (good or ill) as it will not be known at all.
B)Globalization represents a new stage of capitalist development, this time with public institutions in place to protect society by balancing private corporate interests against broader public interests.
C)Corporations are under increasing pressure from diverse stakeholder constituencies to demonstrate that business plans and strategies are environmentally sound and contribute to sustainable development.
D)In the United States and other developed nations, citizens have complete confidence in the public sector as the best and most appropriate venue for addressing a growing list of social problems.

Question 70

In _____ corporate social responsibility (CSR), organizations take a philanthropic approach by underwriting specific initiatives to give back to the company's local community or to designated national or international programs.

A)altruistic
B)Kantian
C)utilitarian
D)deontological

Question 71

A criticism of the triple bottom-line (3BL) approach is that _____.

A)it does not take a holistic view of what constitutes sustainability for a company
B)it has a narrow view of what constitutes profit for a company
C)there is a higher focus on financial goals rather than on social and environmental goals
D)there is no record or real evidence on how it can be measured

Question 72

A true statement about corporate social responsibility (CSR) initiatives is that they _____.

A)have maximum efficiency when approached from a strict view of just profit maximization
B)do not generate long-term financial gains to the organization
C)do not always generate immediate financial gains to the organization
D)have been easily transformed from being a theoretical concept to an operational concept

Question 73

Which of the following illustrates a firm having a triple bottom-line (3BL) approach?

A)Adbel Inc. issues free meal coupons to its employees.
B)Brenerz Enterprises reduces its industrial waste by half and provides cab services for its employees.
C)Brink-T Technologies donates ten percent of its profit to charity, reduces toxic emission from its plants, and has ten percent increase in financial turnovers.
D)Amelia and Lewis Enterprises provides longer maternity/paternity leaves and free medical insurances for all their employees.

Question 74

The definition of corporate social responsibility as the actions of an organization that prioritize social benefit over maximizing profits and meeting legal obligations assumes that:

A)the corporation has maximum market share.
B)the corporation is operating in a competitive environment.
C)the corporation is committed to a non-aggressive growth strategy.
D)the laws of the country in which the corporation operates is not too restrictive.

Question 75

Organizations pursuing a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to do the right thing for all their stakeholders follow a(n) _____ corporate social responsibility (CSR) initiative.

A)altruistic
B)strategic
C)ethical
D)economic

Question 76

The most famous advocate of the instrumental approach model to corporate social responsibility is the Nobel Prize-winning economist _____.

A)Milton Friedman
B)Henry Ford II
C)Jim Roberts
D)Joseph F. Keefe

Question 77

Bector Airlines supports relief camps in the Republic of Cadmia with donations of both money and employee-donated volunteer hours. It also provides packaged food in times of natural crises such as hurricanes, earthquakes, etc. This is an example of _____ corporate social responsibility (CSR).

A)strategic
B)economic
C)altruistic
D)ethical

Question 78

The practices of making a company's operations _____ to offset damage to the environment through their greenhouse gas emissions was initially developed as a solution for those industries that face significant challenges in reducing their emissions.

A)focus on consumerism
B)environmentally harmless
C)backward integrated
D)carbon neutral

Question 79

Another term for corporate social responsibility (CSR) is _____.

A)corporate absolutism
B)corporate consequentialism
C)corporate citizenship
D)corporate ownership

Question 80

_____ is one of the newest and increasingly questionable practices in the world of corporate social responsibility (CSR).

A)Risk management
B)Water conservation
C)Positive greenhouse approach
D)Carbon neutral operations