Deck 4: Corporate Social Responsibility

Question 1

With the transition to an information-based economy,consumers and investors have more information at their disposal than at any time in history.

Answer 1

True

Question 2

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.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

The instrumental approach is a simplistic model that focuses on the internal world of the corporation.

Question 5

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

Question 6

Corporate Social Responsibility (CSR)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 7

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

Question 8

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

Question 9

Corporate citizenship is an element of corporate social responsibility.

Question 10

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.

Question 11

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

Question 12

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

Question 13

Joseph F.Keefe asserts that there are five major trends behind the corporate social responsibility phenomenon. F.Keefe asserts that there are three major trends behind the corporate social responsibility phenomenon.
Joseph

Question 14

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

Question 15

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.

Question 16

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

Question 17

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

Question 18

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 19

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.

Question 20

The employees of Brennerz Inc.are encouraged to cycle to work every day to reduce environmental pollution.This is an example of corporate social responsibility.

Question 21

One of the newest and increasingly questionable practices in the world of CSR is the notion of making operations "carbon neutral."

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

Altruistic CSR represents a type of corporate social responsibility (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 27

Altruistic CSR type of philanthropic activity targets programs that will generate the most positive publicity or goodwill for the organization.

Question 28

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

Question 29

Strategic CSR targets programs that will generate the most positive publicity or goodwill for the organization.

Question 30

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 direct cash donation of $1 million to support the relief and rebuilding efforts.This is an example of strategic corporate social responsibility (CSR).

Question 31

Ethical 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 32

Strategic CSR runs the greatest risk of being perceived as self-serving behavior on the part of the organization.

Question 33

Critics have argued that,from an ethical perspective,altruistic 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 34

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 35

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 36

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 37

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

Question 38

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

Question 39

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 40

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

Question 41

Which of the following approaches to corporate management is considered simplistic because it assumes that there are no external consequences to the actions of a corporation?

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

Question 42

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

Question 43

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 the workplace.
B) Anderson Inc.provides employees with cab facility or gives them 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 44

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 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 _____ to corporate management.

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

Question 46

Which of the following is an example of corporate social responsibility?

A) Brenner Enterprises gives its employees greater freedom in choosing projects.
B) Dawson Inc.uses 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 47

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) Many companies awoke to CSR only after being surprised by public responses to issues they had not previously thought were 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) An organization's discovery of the significance of CSR is never intentional; it is always a result of unexpected media attention.

Question 48

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

A) Friedman argues that it would be unethical for a corporation to just deliver the profits to its investors rather than giving something back to the society.
B) Friedman's position illustrates that an organization has a social responsibility that goes beyond serving the interests of their stockholders.
C) Friedman stipulates that profits can be earned "with deception or fraud."
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 49

Corporate social responsibility assumes that the corporation:

A) is operating in a competitive environment.
B) is committed to follow a retrenchment strategy exclusively.
C) is permitted to ignore federal and state legal obligations.
D) is exclusively committed to a moderate growth strategy.

Question 50

The difference between old social contract approach to corporate management and modern social contract approach is that the:

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

Question 51

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 the 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 52

The _____ 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 approach
B) shareholder approach
C) free-enterprise approach
D) instrumental approach

Question 53

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 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

The _____ to corporate social responsibility assumes that there are no external consequences to the actions of the corporation and its managers.

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

Question 56

_____ 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.

A) Value chain
B) Virtue ethics
C) Corporate conscience
D) Circles of sustainability

Question 57

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

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

Question 58

Happy Times (HT)is an alcohol manufacturing brand that manufactures and sells 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.Which of the following aspects of Happy Times is illustrated in this scenario?

A) Virtue ethics
B) Universal ethics
C) Corporate governance
D) Corporate citizenship

Question 59

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

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

Question 60

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

A) stakeholders
B) competitors
C) statutory auditors
D) distributors

Question 61

Corporate social responsibility initiatives:

A) focus more on profit maximization than customer relationships.
B) do not generate long-term financial gains to the organization.
C) do not always generate immediate financial gains to the organization.
D) focus more on financial gains for the company than legal compliance.

Question 62

_____ is one of the newest and increasingly questionable practices in the world of CSR.

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

Question 63

Which of the following is a criticism of the triple bottom-line (3BL)approach?

A) 3BL does not take a holistic view of what constitutes sustainability for the company.
B) 3BL has a narrow view of what constitutes profit for the company.
C) Under the 3BL approach,an organization focuses more on financial goals rather than social and environmental goals.
D) There has been no real evidence of how 3BL can be measured.

Question 64

According to Joseph

A) transparency
B) nationalization
C) failure of the private sector
D) failure of the industrial sector
F)Keefe,_____ is a major trend behind the corporate social responsibility phenomenon.

Question 65

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) achieve economies of scale
C) backward integrated
D) carbon neutral

Question 66

According to Joseph

A) Nationalization
B) Globalization
C) The failure of the private sector
D) The failure of the industrial sector
F)Keefe,which of the following is a major trend behind the corporate social responsibility phenomenon?

Question 67

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

A) Adbel Inc.issues free meal coupon to its employees.
B) Brenerz Enterprises reduces its industrial waste by half and provides cab service 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 leaves and medical insurances for all their employees.

Question 68

_____ implies that an organization operates with an awareness of its obligation to the society.

Question 69

_____ implies that an organization is responsible for meeting all its legal and social obligations.

Question 70

According to Henry Ford II,which of the following is true of corporations?

A) He recognized that corporations' actions do not impact their external environment.
B) He recognized that corporations do not operate in an isolated environment.
C) He recognized that corporations were only economic enterprises and not social institutions.
D) He recognized that corporations have a responsibility to shareholders before stakeholders.

Question 71

In _____,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 CSR
B) strategic CSR
C) ethical CSR
D) economic CSR

Question 72

According to Joseph

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 the complete confidence in the public sector as the best and most appropriate venue for addressing a growing list of social problems.
F)Keefe,which of the following is true of the major trends behind the corporate social responsibility phenomenon?

Question 73

The policy of _____ is the premise of corporate social responsibility where doing what's best for the customers translates into what's best for the company in the long run.

A) social contagion theory
B) doing well by doing good
C) social threefolding theory
D) delivering quarterly earnings numbers

Question 74

Which of the following approaches considers a company's social,economic,and environmental impact rather than focusing solely on its financial impact?

A) Just-in-time
B) Double bottom line
C) Social contract
D) Triple bottom line

Question 75

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

Question 76

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

A) the 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) the 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 77

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)_____ initiative.

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

Question 78

_____ CSR refers to philanthropic approach to corporate social responsibility 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 79

The _____ approach to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders.

Question 80

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 _____ CSR.

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