Question 1

​Expanding overseas often comes at the expense of domestic employees and communities,who are primary stakeholders.

Accepted Answer

Expanding overseas often requires the company to redirect resources and attention away from their domestic operations, which can lead to downsizing and job losses for domestic employees. It can also have an impact on the surrounding communities, who may face economic challenges without the presence of the company. Therefore, expanding overseas can come at the expense of these primary stakeholders.

Question 2

There is no conclusive evidence of a direct,positive link between CSR and economic performance,such as profits and shareholder returns.

Accepted Answer

While CSR may positively impact reputation and stakeholder trust, there is still debate and lack of clear evidence about its direct impact on economic performance.

Question 3

Primary stakeholder groups are defined as "those who influence or affect,or are influenced or affected by,the corporation,but they are not engaged in transactions with the corporation and are not essential for its survival."

Accepted Answer

This definition is incorrect, as primary stakeholders are typically those who are engaged in transactions with the corporation and are essential for its survival, such as shareholders, employees, customers, and suppliers. The definition provided in the question may refer to secondary stakeholders.

Question 4

Suppliers and customers are typically considered primary stakeholders.

Accepted Answer

Suppliers and customers are crucial to the success of a business, therefore they are considered primary stakeholders.

Question 5

​CSR-related resources are valuable because they are almost always rare.

Accepted Answer

CSR-related resources, while valuable, are not almost always rare. Many companies can adopt similar CSR practices, making them not rare but potentially widely implemented across industries.

Question 6

Advocates of shareholder capitalism argue that if firms attempt to attain social goals,it will actually help them focus on profit maximization (and its derivative,shareholder value maximization).

Accepted Answer

The answer of Advocates of shareholder capitalism argue that if...

Question 7

​CSR-related resources are mostly in the form of tangible technologies.

Accepted Answer

CSR (Corporate Social Responsibility) resources can take many forms, including tangible technologies such as sustainable energy solutions, but they can also include intangible resources such as employee volunteer programs, ethical business practices, and community partnerships.

Question 8

The five forces framework reinforces the important point that all industries are equal in terms of their exposure to CSR challenges.

Accepted Answer

The five forces framework does not address CSR challenges directly, but rather is a tool for analyzing the competitive forces that shape an industry's profitability. Industries vary in their exposure to CSR challenges, such as environmental impact or labor practices, depending on their specific products and operations.

Question 9

The idea that MNEs should not interfere in the domestic political affairs of the host country has been enshrined in a number of codes of MNE but CSR advocates have stressed the necessity for MNEs to engage in actions that often constitute political activity.

Accepted Answer

While the idea of non-interference in domestic political affairs is enshrined in codes of MNEs, CSR advocates argue that MNEs should engage in actions that can be seen as political activity, such as promoting human rights or lobbying for policy changes.

Question 10

​A narrow focus on CSR sees it as integral to profit maximization,rather than separate from profit maximization.

Accepted Answer

The answer of ​A narrow focus on CSR sees it...

Question 11

​The bargaining power of buyers in influencing firms to be socially responsible may be even more powerful than the bargaining power of suppliers.

Accepted Answer

Buyers have the power to choose which products they purchase, and they may prefer to buy from socially responsible companies. This can have a significant impact on a firm's reputation and bottom line, making it more likely for the firm to engage in socially responsible actions. On the other hand, while suppliers may influence a firm's supply chain, they typically have less direct influence over a firm's corporate social responsibility practices.

Question 12

When facing mounting pressures to be more socially responsible,most firms resist until some first-mover firms deviate from the norms in order to score competitive points with game-changing new products.

Accepted Answer

This statement is true as it is commonly observed that firms tend to resist social responsibility until some first-mover firms take the initiative and create a competitive advantage by introducing new products or practices that deviate from traditional norms.

Question 13

Milton Friedman,a University of Chicago economist and Nobel laureate,suggested: "The business of business is business."

Accepted Answer

Milton Friedman did indeed suggest that "The business of business is business," meaning that the primary goal of a business should be to make a profit and serve the interests of its shareholders.

Question 14

​Most MNEs reportedly outperform local firms in environmental management by voluntarily following "green practices."

Accepted Answer

Many studies have shown that MNEs tend to have more robust and formalized environmental management practices and policies compared to local firms. This is often attributed to a combination of factors such as greater access to resources, pressure from stakeholders, and a desire to maintain a positive reputation. Additionally, some MNEs may also voluntarily adopt environmentally-friendly practices out of a concern for sustainability and corporate social responsibility.

Question 15

​A firm with employees that hold strong convictions about being socially responsible in the way they carry out the firm's activities is a rare but highly imitable.

Accepted Answer

A firm's culture, including the strong convictions of its employees about being socially responsible, is deeply ingrained and shaped by shared values and beliefs over time, making it difficult for other firms to imitate quickly or easily.

Question 16

​Given the increased number of challenges to firms to improve their level of corporate responsibility,firms may want to proactively embrace CSR and partner with those groups doing the challenging in finding solutions.

Accepted Answer

Embracing CSR and partnering with groups challenging firms can help improve a company's corporate responsibility level, and is therefore a proactive approach.

Question 17

Reactive strategy often involves an "out of sight,out of mind" mentality.

Accepted Answer

Reactive strategy is characterized by a tendency to respond only when a problem has already emerged, rather than taking proactive measures to prevent it in the first place. This often results in a "band-aid" solution that addresses the immediate issue, but doesn't necessarily address the underlying cause. Additionally, this mentality may lead businesses to focus on short-term fixes rather than long-term planning and prevention. The "out of sight, out of mind" mentality refers to the tendency to ignore potential problems or areas of improvement if they are not currently visible or causing immediate issues.

Question 18

​Managers who treat CSR as a nuisance,involving regulation,added costs,and liability are overestimating the potential business opportunities associated with CSR.

Accepted Answer

The statement suggests that managers who see CSR as a nuisance are underestimating the potential business opportunities associated with it, not overestimating.

Question 19

Although framed in a domestic versus overseas context,the heart of this debate boils down to the foundational thorny point that frustrates CSR advocates: In a capitalist society,the shareholders-otherwise known as capitalists-are the ones who matter at the end of the day.

Accepted Answer

The statement accurately reflects the central challenge for advocates of CSR, which is how to reconcile the profit-driven interests of shareholders with broader stakeholder concerns related to corporate responsibility and social impact.

Question 20

Although costs of complying with tough environmental laws may be high,these "green" taxes simply force firms to pay the "real" costs of their activities they were previously placing on others.​

Accepted Answer

Green taxes are designed to internalize the negative externalities caused by business activities, which means that businesses are paying the real costs associated with their operations, including environmental costs that were previously borne by society and the environment. While compliance costs can be high, they encourage companies to adopt cleaner production processes and invest in more efficient technologies, which can ultimately benefit both the environment and their bottom line in the long run.

Quiz 12: Strategizing With Corporate Social Responsibility

​Expanding overseas often comes at the expense of domestic employees and communities,who are primary stakeholders.

There is no conclusive evidence of a direct,positive link between CSR and economic performance,such as profits and shareholder returns.

Primary stakeholder groups are defined as "those who influence or affect,or are influenced or affected by,the corporation,but they are not engaged in transactions with the corporation and are not essential for its survival."

Suppliers and customers are typically considered primary stakeholders.

​CSR-related resources are valuable because they are almost always rare.

Advocates of shareholder capitalism argue that if firms attempt to attain social goals,it will actually help them focus on profit maximization (and its derivative,shareholder value maximization).

​CSR-related resources are mostly in the form of tangible technologies.

The five forces framework reinforces the important point that all industries are equal in terms of their exposure to CSR challenges.

The idea that MNEs should not interfere in the domestic political affairs of the host country has been enshrined in a number of codes of MNE but CSR advocates have stressed the necessity for MNEs to engage in actions that often constitute political activity.

​A narrow focus on CSR sees it as integral to profit maximization,rather than separate from profit maximization.

​The bargaining power of buyers in influencing firms to be socially responsible may be even more powerful than the bargaining power of suppliers.

When facing mounting pressures to be more socially responsible,most firms resist until some first-mover firms deviate from the norms in order to score competitive points with game-changing new products.

Milton Friedman,a University of Chicago economist and Nobel laureate,suggested: "The business of business is business."

​Most MNEs reportedly outperform local firms in environmental management by voluntarily following "green practices."

​A firm with employees that hold strong convictions about being socially responsible in the way they carry out the firm's activities is a rare but highly imitable.

​Given the increased number of challenges to firms to improve their level of corporate responsibility,firms may want to proactively embrace CSR and partner with those groups doing the challenging in finding solutions.

Reactive strategy often involves an "out of sight,out of mind" mentality.

​Managers who treat CSR as a nuisance,involving regulation,added costs,and liability are overestimating the potential business opportunities associated with CSR.

Although framed in a domestic versus overseas context,the heart of this debate boils down to the foundational thorny point that frustrates CSR advocates: In a capitalist society,the shareholders-otherwise known as capitalists-are the ones who matter at the end of the day.

Although costs of complying with tough environmental laws may be high,these "green" taxes simply force firms to pay the "real" costs of their activities they were previously placing on others.​

Expanding overseas often comes at the expense of domestic employees and communities,who are primary stakeholders.

CSR-related resources are valuable because they are almost always rare.

CSR-related resources are mostly in the form of tangible technologies.

A narrow focus on CSR sees it as integral to profit maximization,rather than separate from profit maximization.

The bargaining power of buyers in influencing firms to be socially responsible may be even more powerful than the bargaining power of suppliers.

Most MNEs reportedly outperform local firms in environmental management by voluntarily following "green practices."

A firm with employees that hold strong convictions about being socially responsible in the way they carry out the firm's activities is a rare but highly imitable.

Given the increased number of challenges to firms to improve their level of corporate responsibility,firms may want to proactively embrace CSR and partner with those groups doing the challenging in finding solutions.

Managers who treat CSR as a nuisance,involving regulation,added costs,and liability are overestimating the potential business opportunities associated with CSR.

Although costs of complying with tough environmental laws may be high,these "green" taxes simply force firms to pay the "real" costs of their activities they were previously placing on others.