Question 1

In a widely adapted definition promoted by the ILO, child labour refers to work done by persons under the age of:

Accepted Answer

D

Question 2

An environmental view of CSR argues that companies should engage in CSR if and only if it has direct or indirect benefits for shareholder value.

Accepted Answer

An environmental view of CSR argues that companies should engage in CSR because it is the right thing to do for the environment and society, regardless of whether it has immediate benefits for shareholder value.

Question 3

Triple bottom line refers to social, environmental and medical performance.

Accepted Answer

Triple bottom line refers to social, environmental, and economic performance.

Question 4

Human rights are rights that a person is entitled to beyond a certain level of wealth.

Accepted Answer

Human rights are inherent and applicable to all individuals regardless of their level of wealth, social status, or any other factor. They include rights such as the right to life, freedom of expression, and the right to a fair trial, among others.

Question 5

A critical aspect of CSR is that it is voluntary.

Accepted Answer

CSR stands for Corporate Social Responsibility, which refers to a company's efforts to contribute to environmental, social, and ethical issues beyond its legal obligations. Since CSR is a voluntary initiative, companies can choose to engage in CSR activities based on their own values and beliefs rather than legal requirements. While some companies adopt CSR as a strategy to gain competitive advantage or maintain their reputation, others see it as a moral obligation to give back to society.

Question 6

In the context of CSR, a pro-active strategy consists of actively fighting political interest groups that advocate unreasonable demands on business.

Accepted Answer

A pro-active CSR strategy does not consist of fighting against political interest groups. Rather, it involves taking actions that promote social and environmental responsibility by the business itself.

Question 7

A pollution haven is a city or region that absorbs pollution created elsewhere such as to reduce overall levels of pollution.

Accepted Answer

A pollution haven is a city or region that has lax environmental regulations and attracts polluting industries, leading to higher levels of pollution. It does not reduce overall levels of pollution.

Question 8

Primary stakeholders of a company are:

Accepted Answer

Primary stakeholders of a company are those individuals or groups on whom the company depends for its continuous survival and prosperity. These stakeholders have a direct interest in the company's activities and are directly engaged in transactions with the company. They include customers, employees, shareholders, suppliers, and creditors. The company's success is closely tied to the satisfaction, loyalty, and support of these stakeholders. Thus, it is essential for a company to manage these stakeholders effectively and to meet their needs and expectations.

Question 9

Implicit CSR refers to corporate activity that benefits society by companies:

Accepted Answer

Implicit CSR involves companies following social and environmental standards that are set by law, rather than voluntarily exceeding those standards or engaging in philanthropy.

Question 10

The view that companies have a moral obligation to do more for society than maximize shareholder value is generally known as:

Accepted Answer

The view that companies have a moral obligation to do more for society than maximize shareholder value is known as the normative view. This is because the normative view is concerned with ethical principles and values that ought to guide behavior, rather than describing how things are currently done (descriptive view). The instrumental view is focused on the outcomes or consequences of actions, while the institutional view is concerned with the rules and structures that shape behavior. The normal view is not a recognized term in business ethics.

Question 11

________ are used to ensure that suppliers operate to the ethical standards set by a company.

Accepted Answer

All three terms—standards of engagement, codes of conduct, and codes of ethics—are used to ensure that suppliers adhere to the ethical standards set by a company. They serve as guidelines or rules that outline expected behaviors and practices.

Question 12

The competition between countries trying to attract foreign investors by offering them ever more lenient employment standards is also known as:

Accepted Answer

The competition between countries trying to attract foreign investors by offering them ever more lenient employment standards is called "race to the bottom." This term refers to the trend of countries lowering social and environmental standards in order to attract foreign investment and maintain competitiveness in global markets. Ultimately, this harms workers and the environment while benefiting only multinational corporations seeking to cut costs.

Quiz 9: Global Integration and Multilateral Organizations