Question 1

Why is it important to think of firm performance with respect to corporate social responsibility on a continuum rather than a dichotomy?

Accepted Answer

The answer of Why is it important to think of...

Question 2

The real cost of a gallon of gasoline, after accounting for all costs and removing all existing subsidies, is estimated to be less than $1.

Accepted Answer

The real cost of a gallon of gasoline is difficult to determine precisely, but it typically includes the cost of crude oil extraction and refining, transportation, distribution, and retailing, as well as taxes and various externalities such as air pollution, climate change, and public health impacts. According to a 2016 study by the International Monetary Fund, the global average cost of gasoline (excluding subsidies) was $1.43 per liter, which is equivalent to $5.41 per gallon. However, this estimate does not include many indirect costs that are difficult to measure, such as the costs of military protection, insurance against accidents and spills, and damage to ecosystems and biodiversity. Furthermore, some countries and regions may have lower or higher costs depending on their specific circumstances, such as the availability of domestic resources or alternative fuels, the level of taxation and regulation, and the degree of market competition. Therefore, it is unlikely that the real cost of a gallon of gasoline could be less than $1 in most parts of the world.

Question 3

The ______ focuses primarily on resource utilization and waste reduction.

Accepted Answer

The circular economy is an economic system that focuses primarily on resource utilization and waste reduction. It aims to keep resources in use for as long as possible, extract the maximum value from them while they are in use, and then recover and regenerate products and materials at the end of their useful life. Therefore, the circular economy is the best choice that fits the given description.

Question 4

Is a major retailer that employs thousands of people, but pays women less than men for the same job a better or worse firm (in terms of corporate social responsibility) than a major sporting goods manufacturer which outsources many of its jobs to other countries.

Accepted Answer

The answer of Is a major retailer that employs thousands...

Question 5

Whole Foods Supermarkets' use of a color-coded stoplight scale to assess and support sustainable seafood products is an example of which of the three interlinked steps in measuring CSR?

Accepted Answer

The color-coded stoplight labeling system used by Whole Foods is an example of labeling, which is one of the three interlinked steps in measuring CSR. The labels indicate which seafood products are sustainably sourced (green), which should be consumed with caution (yellow), and which should be avoided (red). This system makes it easier for consumers to make informed and sustainable choices when purchasing seafood products.

Question 6

Which company has introduced the idea of an environmental profit and loss (EP&L) account?

Accepted Answer

PUMA was the first company to introduce the idea of an environmental profit and loss (EP&L) account in 2010. It is a measure of the environmental impact a company's operations have on the planet in monetary terms. It helps companies identify the true cost of their environmental impact, allowing them to focus on reducing their negative impact while promoting sustainable practices.

Question 7

At present, the Global Reporting Initiative (GRI) has developed to where "many countries now require [it], either by law or as a condition of stock exchange listing" largely because its model of reporting is relatively simple.

Accepted Answer

The widespread adoption of the Global Reporting Initiative (GRI) is not primarily because its model of reporting is relatively simple, but rather because it provides a comprehensive framework for sustainability reporting that is recognized internationally. Governments and stock exchanges endorse it to promote transparency and accountability in environmental, social, and governance (ESG) matters.

Question 8

An example of a lifecycle analysis conducted during the design stages of a product would be a ______.

Accepted Answer

A lifecycle analysis conducted during the design stages of a product would be a carbon tax, as it would assess the environmental impact of the product throughout its lifecycle, from raw material extraction to disposal.

Question 9

A CSR measure that captures performance on financial, environmental, and social metrics is known as ______.

Accepted Answer

The triple bottom line is a framework for measuring performance that takes into account financial, environmental, and social factors, also known as the "three Ps": profits, planet, and people. This approach is widely recognized as a comprehensive way to evaluate a company's CSR performance. Integrated reporting refers to a practice of combining a company's financial and non-financial performance information in a single report, but it may not necessarily cover all three bottom lines. Performance auditing and scope entirety are not commonly used terms in CSR measurement.

Question 10

Enron is a good example of how good things had become in terms of corporate responsibility at the end of the 20th century.

Accepted Answer

Enron was involved in one of the biggest corporate scandals in history in 2001, revealing a lack of corporate responsibility and ethical behavior.

Question 11

In terms of strategic CSR, it is essential to think of firm performance as a dichotomy rather than a continuum.

Accepted Answer

Strategic CSR views firm performance as a continuum, recognizing a range of outcomes from social to financial benefits, rather than a simple either/or scenario.

Question 12

One industry that is particularly problematic to use such ratings as ecolabels is ______.

Accepted Answer

The food industry is particularly problematic to use ratings as ecolabels because there are various factors to consider. For example, a product may be organic but still have negative impacts on biodiversity if the production method involves deforestation. Additionally, some labels may prioritize certain aspects of sustainability over others, making it difficult for consumers to determine which label aligns with their values. Furthermore, there is a lack of standardized criteria and oversight, leading to potential abuse of the labeling system by companies seeking to greenwash their products.

Question 13

An important concept in corporate social responsibility is that the responsibility ______.

Accepted Answer

Corporate social responsibility is a bidirectional concept, meaning that both the corporation and the government have a role to play in ensuring that businesses operate in a socially responsible manner.

Question 14

Instead of valuing natural capital, current financial and accounting models treat essential natural components such as water and air quality as ______ when accounting for profits and losses.

Accepted Answer

Valuing natural capital as "free" is the most common practice among financial and accounting models, which means the natural components are not assigned any monetary value and are not considered as assets or liabilities.

Question 15

Although we have some intuitive sense of which firms are good and which are bad, we are presently unable to compare one firm to another reliably across all aspects of operations, because ______.

Accepted Answer

The answer of Although we have some intuitive sense of...

Question 16

Is a tobacco firm that employs tens of thousands of people and pays significant taxes a better or worse firm (in terms of corporate social responsibility performance) than a supermarket that sells food but pays its employees low wages?

Accepted Answer

The answer of Is a tobacco firm that employs tens...

Question 17

Since the late 1990s, the measurement of corporate social responsibility has become increasingly uniform and widely accepted across all industries.

Accepted Answer

While there has been significant progress in the measurement of corporate social responsibility (CSR), there is still no universally accepted standard, and practices vary widely across different industries and regions.

Question 18

Which of the following companies has been cited as a leader in CSR, while not also engaging in unethical conduct?

Accepted Answer

Patagonia has consistently been cited as a leader in CSR, with a strong commitment to environmental sustainability, fair labor practices, and support for grassroots environmental organizations. There have not been any major scandals or instances of unethical conduct associated with the company. Kellogg's and PepsiCo also have strong CSR programs, but have faced criticism and allegations of unethical conduct, such as sourcing palm oil from suppliers known to engage in deforestation. Volkswagen, on the other hand, has faced significant backlash for engaging in unethical conduct related to emissions cheating, despite previous efforts to promote CSR.

Question 19

Corporate social responsibility reporting suffers from the potential for greenwash.

Accepted Answer

Corporate social responsibility reporting is not always authentic and can be misleading, often termed as "greenwash." Companies may report on their social and environmental initiatives to improve their public reputation without actually making significant efforts towards sustainability. This is a common criticism of CSR reporting.

Question 20

If you wanted to institute a wellness program at your company, based on behavioral economics, what would be the types of nudges would you use to get workers to participate?

Accepted Answer

The answer of If you wanted to institute a wellness...

Quiz 8: Compliance and Accountability