Deck 9: Corporate Social Responsibility

Question 1

The Social Investment Forum reported that socially responsible investing grew from $40 billion in 1984 to nearly $4 trillion in 2012.

Answer 1

True

Question 2

Constructive engagement of stakeholders, including critics, is replacing the "just trust us" plea of yesteryear as executives conclude that the plea rarely works in a world of regular corporate scandals.

Answer 2

True

Question 3

Some analysts argue that the more stringent regulatory environment resulting in the post Sarbanes-Oxley period increases shareholder confidence in financial reporting.

Answer 3

True

Question 4

The most strategic CSR initiatives are those that remove the social dimension from the firm's overall competitive strategy.

Question 5

The economic responsibilities of a firm involve its primary function of producing goods and services that consumers need and want, while making an acceptable profit.

Question 6

The __________ reason for CSR offers managers a stronger basis for making decisions about which stakeholders and social responsibility issues should garner their attention and resources given the multitude of options available.

Question 7

The ________ reason for corporate social responsibility argues that businesses, as part of society, have a responsibility to behave in the right way.

Question 8

Since the passage of Sarbanes-Oxley few firms have been prosecuted and fewer high level executives have received jail terms proving convincingly that the legislation is flawed.

Question 9

______ ______ ______ (3 words) are those shareholders who clearly care about the financial and the social bottom line of a business.

Question 10

A firm's financial responsibility is primary and the bedrock of corporate social responsibility because without financial viability, the other responsibilities become moot issues.

Question 11

Even if socially responsible business practices are costly, firms must perform them anyway.

Question 12

The late economist ________ said that management should "make as much money as possible while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical custom."

Question 13

Organizations are finding that in the area of Corporate Social Responsibility (CSR), it is becoming increasingly difficult to separate _______ organizational ethics from ______ social responsibility.

Question 14

An organization that does not fulfill its philanthropic responsibilities is acting unethically.

Question 15

According to Harvard Professor Michael Porter, the strategic reason for having CSR play a prominent role in a firm is that in evaluating the firm's CSR, executives should begin by scrutinizing the social impacts of the company's value chain.

Question 16

The three reasons that corporations should care about social responsibility are ______, ______ and ________.

Question 17

_____, such as environmental damage, are costs to society that are produced by companies but not reflected in the company's cost structure.

Question 18

Section 404 of the Sarbanes-Oxley Act (SOX) is credited with improving internal financial control systems in public companies even if the cost of doing so is thought to be exorbitant by small firms.

Question 19

The pragmatic approach is more proactive and affirmative than the strategic approach because it asks companies to identify and acknowledge company activities that can do harm and encourages firms to scrutinize their practices and address potential harms by focusing on their own value-chain activities.

Question 20

CalPERS, the California Public Employees' Retirement System pressures the companies it invests in to engage in good corporate governance and socially responsible practices in areas such as ______ and ______.

Question 21

Corporate social responsibility (CSR) consists of which four kinds of responsibilities:

A) Economic, ethical, societal, and altruistic
B) Economic, legal, ethical, and altruistic
C) Fiscal, legal, societal, and philanthropic
D) Economic, legal, ethical, and philanthropic

Question 22

Typical Codes of Conduct cover conduct described below. In the aftermath of Bhopal, the chemical industry wishing to demonstrate responsible corporate citizenship has added which additional behaviors set out below. a. Legal compliance
B) Continuous improvement, communication with external stakeholders and training of suppliers on the standards
C) Community awareness and emergency response
D) Pollution prevention
E) Safe distribution of chemicals in transit
F) Employee health and safety
G) Safe handling of chemicals from manufacture through disposal

Question 23

The term __________ is sometimes used to represent harmony among three dimensions of economic, social and environmental impacts.

A) philanthropic
B) ethics
C) bottom-line
D) sustainability

Question 24

According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is a societal expectation that is not necessarily codified into law.

A) economic
B) ethical
C) legal
D) philanthropic

Question 25

According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is considered to be of primary importance to organizations.

A) economic
B) ethical
C) legal
D) philanthropic

Question 26

Referring to the Corporate Social Responsibility (CSR) pyramid, how do legal responsibilities differ from ethical responsibilities? Provide specific examples to support your distinction.

Question 27

The ______ reason, why corporations should care about social responsibility, is based upon the recognition that business must use its power responsibly in society or risk losing it. Corporations exist as legal entities with certain advantages (such as limited liability) because society allows them to do so, and these corporate rights and advantages can be removed from firms that are perceived to be irresponsible.

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

Question 28

Interface Carpets, a stellar example of sustainability in action, lists seven fronts of Mount Sustainability. Which is NOT one of the firm's goals to meet its total sustainability status? a. Redesigning commerce
B) Sensitizing stakeholders
C) Using renewable energy
D) Ensuring benign emissions
E) Eliminating waste
F) Competing through cost

Question 29

Which of the items listed is NOT a product of a "favorable corporate reputation." a. Charge more for its products and services
B) Attract, Hire and keep higher quality applicants/employees
C) Enhance their access to better capital markets
D) Attract investors
E) Ignore the Foreign Corrupt Practices Act

Question 30

Over the long run, to be successful, firms with excellent socially responsible strategies need to worry less about their business strategies.

Question 31

In the __________ perspective, social responsibility is seen as appropriate because it is "the right thing to do."

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