Question 1

There is a positive influence of CSR on the consumer evaluation of companies and their purchasing decisions,according to recent studies.

Accepted Answer

A large body of research confirms the positive influence of CSR on consumer evaluations of companies and product purchase intentions across a broad range of product categories.

Question 2

As a stakeholder group,customers are interested in dividends and capital appreciation.

Accepted Answer

Customers are interested in value and warranties.

Question 3

Environmental sustainability is a value embraced by the most competitive and successful multinational companies.

Accepted Answer

Environmental sustainability is now a value embraced by the most competitive and successful multinational companies. The McKinsey Corporation's survey of more than 400 senior executives of companies around the world found that 92 percent agreed with former Sony president Akio Morita that the environmental challenge will be one of the central issues in the 21^st century.

Question 4

Many of the benefits from sustainability projects are intangible,making it difficult to calculate the ROI.

Accepted Answer

The payback period for sustainability projects is on a different time frame. Even when their future benefits can be forecast, sustainability projects often require longer-term payback windows.

Question 5

The ROI on a sustainability project generally is easy to quantify.

Accepted Answer

The ROIs on sustainability projects are often very difficult to quantify because of the unavailability of data, the intangibility of the benefits, and the long-term payback period of such projects.

Question 6

Sustainability projects often require shorter-term payback windows than other projects.

Accepted Answer

The payback period is on a different time frame. Even when their future benefits can be forecast, sustainability projects often require longer-term payback windows.

Question 7

Demands for greater corporate responsibility are decreasing today.

Accepted Answer

Today, demands for greater corporate responsibility have accelerated. These include corporate critics, social investors, activists, and, increasingly, customers who claim to assess corporate responsibility when making purchasing decisions.

Question 8

Sustainability is being increasingly recognized as a source of cost efficiencies and revenue growth.

Accepted Answer

A CEO survey on sustainability by Accenture debunks the notion that sustainability and profitability are mutually exclusive corporate goals. The study found that sustainability is being increasingly recognized as a source of cost efficiencies and revenue growth. In many companies, sustainability activities have led to increases in revenue and profits.

Question 9

The Higgs Index enables companies to compare environmental performance outcomes in order to improve their environmental impact and is an example of how rivals work together to resolve complex problems.

Accepted Answer

Rival firms like Nike, Walmart, and Patagonia have started working with a number of stakeholder groups through the Sustainable Apparel Coalition in order to improve the environmental impact of their products. They convened a group of 10 apparel companies in the belief that the adoption of a single, standardized index would drive efficiency and innovation across the apparel value chain and reduce environmental impact and supply chain risks. The so-called Higgs Index enabled companies to compare environmental performance outcomes in areas such as energy efficiency, material waste, water use, and sustainable raw materials.

Question 10

The ROIs on sustainability projects are often very difficult to quantify because the data necessary to calculate ROI accurately are often not available when it comes to sustainability projects.

Accepted Answer

The ROIs on sustainability projects are often very difficult to quantify for a number of reasons. Among these is the fact that the data necessary to calculate ROI accurately are often not available when it comes to sustainability projects. However, sustainability programs may often find their success beyond company boundaries, so internal systems and process metrics cannot capture all the relevant numbers.

Question 11

The intangible benefits of sustainability projects,such as reducing risks,staying ahead of regulations,pleasing communities,and enhancing employee morale,are substantial even when they are difficult to quantify.

Accepted Answer

Just as companies spend large fortunes on launching advertising campaigns or initiating R and D projects without a clear quantification of financial returns, sustainability investments are necessary even when it is difficult to calculate the ROE of such investments. The alternative of not making these investments is often no longer feasible.

Question 12

As a stakeholder group,creditors are interested in taxes and compliance with regulations.

Accepted Answer

Creditors are interested in the payment of interest and the repayment of principal.

Question 13

Sustainability initiatives rarely have difficulty making it through the conventional approval process within corporations because managers are not concerned about their return on investment.

Accepted Answer

Sustainability initiatives often have difficulty making it through the conventional approval process within corporations. This is primarily because, before companies make investments in projects, managers want to know their return on investment.

Question 14

Partnering with governments,communities,suppliers,customers,and rivals is a way to manage conflicting stakeholder interests.

Accepted Answer

Although it often appears the interests of stakeholder groups are in conflict with each other, leading companies are increasingly realizing that learning to partner with governments and communities, suppliers, customers, and even longtime rivals is essential for dealing with big, complex problems.

Question 15

Shell,NEC,and Procter and Gamble have been measuring their performance according to what has been called a triple bottom line.This technique involves an assessment of financial,social,and environmental performance.

Accepted Answer

Many companies are now measuring what has been called a triple bottom line. This involves assessing financial, social, and environmental performance. Shell, NEC, Procter and Gamble, and others have recognized that failing to account for the environmental and social costs of doing business poses risks to the company and its community.

Question 16

Social responsibility is the idea that organizations are not only accountable to stockholders but also to the community-at-large.

Accepted Answer

Social responsibility is the expectation that businesses or individuals will strive to improve the overall welfare of society. From the perspective of a business, this means that managers must take active steps to make society better by virtue of the business being in existence.

Question 17

For many successful firms,environmental values are not central to the company culture and management processes.

Accepted Answer

For many successful firms, environmental values are now becoming a central part of their cultures and management processes. Environmental impacts are being audited and accounted for as the third bottom line.

Question 18

As a stakeholder group,communities are interested in good citizenship behavior.

Accepted Answer

Communities are interested in good citizenship behavior such as charities, employment, and not polluting the environment.

Question 19

What constitutes socially responsible behavior changes over time.

Accepted Answer

What constitutes socially responsible behavior changes over time. In the 1970s affirmative action was a high priority; during the 1990s and up to the present time, the public has been concerned about environmental quality.

Question 20

A key stakeholder group that appears to be particularly susceptible to corporate social responsibility (CSR)initiatives is customers.

Accepted Answer

A key stakeholder group that appears to be particularly susceptible to corporate social responsibility (CSR) initiatives is customers. Surveys indicate a strong positive relationship between CSR behaviors and consumer reaction to the products and services of a firm.

Quiz 1: Strategic Management: Creating Competitive Advantages