Deck 1: What Is CSR

Question 1

"In a democratic society, power is taken away from those who abuse it" is a workable definition of ______.

A)Carroll's CSR rule
B)the Iron Law of Social Responsibility
C)the Alien Tort Claims Act
D)an accommodative view of CSR

Answer 1

B

Question 2

If Facebook is seen to be dominating the social media market, what type of corporate social responsibility would it be violating?

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

Answer 2

B

Question 3

All those who in some way are related to a firm's activities are known as ______.

A)shareholders
B)public
C)stakeholders
D)clients

Answer 3

C

Question 4

The rational argument for corporate social responsibility is summarized by the Iron Law of Social Responsibility, which states that ______.

A)ultimately it is government, not business, that is responsible for a satisfying society
B)responsibility for a just society is everyone's responsibility
C)in a free society, discretionary abuse of societal responsibilities leads, eventually, to mandated reprisals
D)concern for CSR must be the first priority of the courts

Question 5

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to produce an acceptable return for investors.

A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Question 6

In the 1790s, consumer boycotts occurred in reactions to which of the following?

A)slave-harvested sugar
B)cheap cotton from the United States
C)the high price of fuel (lamp) oil
D)the use of the Royal Navy in England to transport slaves

Question 7

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to act within the framework of laws and regulations drawn up by the government and judiciary.

A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Question 8

Which of the following exist to define the rules and structures of society within which all organizations must operate?

A)for-profits
B)governments
C)nonprofits
D)religion

Question 9

Energy companies and industrial manufacturers set up the United States Climate Action Partnership (USCAP), which supports carbon limits and trading.This is an illustration of which argument for corporate social responsibility?

A)ethical
B)moral
C)rational
D)economic

Question 10

Which of the following is NOT part of Archie Carroll's pyramid of corporate social responsibility?

A)stakeholder responsibility
B)legal responsibility
C)discretionary responsibility
D)ethical responsibility

Question 11

Which of these is NOT a for-profit business?

A)Facebook
B)Nike
C)Red Cross
D)Uber

Question 12

With the rise of agency theory, there has been a renewed focus on what group in companies?

A)managers
B)employees
C)clients
D)shareholders

Question 13

James Rogers (the CEO of Duke Energy) once stated: "If you are not at the table when these negotiations are going on, you're going to be on the menu." This illustrates what argument for CSR?

A)moral
B)economic
C)rational
D)ethical

Question 14

Which of the following is an example of an economic argument for corporate social responsibility?

A)A company invests in clean energy for its vehicles because it saves money on transportation.
B)A company installs skylights in its stores to lower lighting costs.
C)A company provides gym memberships to its employees to lower health-care costs.
D)All of these are examples of economic arguments for CSR.

Question 15

A central part of the moral argument for corporate social responsibility comes from the thinking that ______.

A)businesses have to pay taxes, so they should have to be responsible in other ways as well
B)society cannot afford all its needs unless business is forced to go beyond just paying taxes
C)business leaders and shareholders make money, so they should be morally responsible to society, especially to the poor
D)a large part of business success comes as much from actions that are congruent with societal values and norms as from factors internal to the company

Question 16

In contrast to Milton Friedman's argument, David Packard argued that ______.

A)businesses exist not only to make money but also to contribute to society
B)the sole purpose of businesses is to make money
C)businesses need not consider all stakeholders
D)shareholders are responsible for the larger community within which a firm operates

Question 17

The rational argument for CSR rests on ______.

A)sanction avoidance
B)social norms
C)moral integrity
D)societal rules

Question 18

Strategic CSR expounds the ______ argument in favor of corporate social responsibility.

A)financial
B)economic
C)political
D)social

Question 19

An application of Milton Friedman's argument is ______.

A)providing workers time off to volunteer in their communities
B)establishing a recycling program
C)maximizing shareholder returns
D)clearly defining ethical concerns along a product's supply chain

Question 20

Which of the following best describes nonprofit organizations?

A)They emerge to do social good when the political will or the profit motive is insufficient to address society's needs.
B)They emerge primarily to meet the religious or spiritual needs of a society
C)They emerge to supplement businesses that do not make profits.
D)They emerge to meet the needs of governments that do not have adequate financial resources to address society's needs.

Question 21

Consequentialist (or utilitarian) reasoning justifies action in terms of the outcomes generated (e.g., the greatest good for the greatest number of people).Such reasoning is part of which argument for corporate social responsibility?

A)ethical
B)moral
C)rational
D)economic

Question 22

Financial scandals around the turn of this century at Enron, WorldCom, Adelphia, HealthSouth, and others led to which of the following?

A)greater reliance on nonstandard accounting practices
B)less reliance on nonstandard accounting practices
C)new laws and governmental rulings that limit business's discretionary actions
D)revocation of laws and rulings that limit business's discretionary actions

Question 23

From a corporate social responsibility perspective, a firm's success is primarily related to its ability to ______.

A)incorporate stakeholder concerns into its business model
B)maximize the use of all its internal and external resources
C)minimize its tax liabilities
D)create more energy-efficient manufacturing processes

Question 24

A firm sponsors a 5k race, contributing the race fees to a local charity.According to Archie Carroll's pyramid of corporate social responsibility, the firm is meetings its ______.

A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Question 25

CSR refers to both ______.

A)an input and an output
B)ethics and outcomes
C)a process and an outcome
D)a theory and an application

Question 26

Society benefits most when firms focus purely on their own financial success.This statement best reflects the ideas of ______.

A)Charles Handy
B)Adam Smith
C)David Packard
D)Milton Friedman

Question 27

The call for social responsibility among businesses is generally recognized as a concept that began in which time period?

A)the early late 20th century, after the impact of the Industrial Revolution
B)the late 20th century and early 21st century, after numerous widespread financial scandals
C)ancient times, as early as the writings of Socrates
D)the 17th century, after concerns about the excesses of the East India Company were publicized

Question 28

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to do no harm to its stakeholders within its operating environment.

A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Question 29

Peter Drucker stated, "Profit for a company is like oxygen for a person.If you don't have enough of it, you're out of the game.But if you think your life is about breathing, you're really missing something." This statement reflects the ______ argument for corporate social responsibility.

A)ethical
B)moral
C)rational
D)economic

Question 30

Which of the following is NOT a characteristic of corporate social responsibility?

A)It is a static target that does not change.
B)It is an evolving concept.
C)It varies across countries and cultures.
D)It is both critical and controversial.

Question 31

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to take proactive, strategic behaviors that benefit both the firm and society.

A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Question 32

Applying Archie Carroll's pyramid of corporate social responsibility, when a firm closes due to financial mismanagement and bankruptcy, it has not met its ______.

A)economic responsibility
B)legal responsibility
C)ethical responsibility
D)discretionary responsibility

Question 33

By adopting a rational argument for corporate social responsibility, firms seek to ______.

A)do the right thing from an ethical perspective
B)to interpret evolving societal values and stakeholder expectations
C)make larger societal contributions than simply creating profit
D)go above and beyond the basic ethical and moral expectations of a society

Question 34

Since the early 19th century, managers have consistently paid attention to the interests of all stakeholders.

Question 35

In terms of social activism, what book could be credited with being a catalyst for the environmental movement?

A)The Perfect Storm
B)Prodigal Summer
C)The Water Knife
D)The Silent Spring

Question 36

The Malden Mills textile plant is an important case study in CSR because ______.

A)it showed that some things are more important than profit
B)it demonstrated the futility of the textile industry in New England
C)it illustrated that no firm, whatever the motivation, can or should indefinitely spend money it does not have
D)it showed the downsides of outsourcing

Question 37

For a hair care salon shop that is a privately owned business, which of the following is NOT likely to be a stakeholder?

A)tax authorities
B)customers
C)suppliers of hair dryers
D)the New York Stock Exchange (NYSE)

Question 38

Corporate social responsibility adds value because it allows companies to reflect the needs and concerns of their various stakeholder groups.This statement reflects the ______ argument for CSR.

A)ethical
B)moral
C)rational
D)economic

Question 39

There is widespread agreement among corporate executives about the necessity of corporate social responsibility.

Question 40

According to the textbook, corporate social responsibility is strongest when ______.

A)business leaders view their role as stewards of resources owned by others
B)lower-level employees take the lead in developing socially responsible practices in the workplace
C)consumers demand higher levels of social responsibility
D)government requires specific business practices

Question 41

The textbook states that corporate social responsibility is both a process and an outcome.What does this mean?

Question 42

Define and discuss briefly the ethical, moral, rational, and economic arguments for corporate social responsibility.Of the four components, which one is more relevant to you and why?

Question 43

The moral argument for corporate social responsibility focuses on adopting the path of least resistance with regard to issues of concern that make common and business sense.

Question 44

The textbook states that corporate social responsibility "is a fluid concept." What does this mean?

Question 45

The book argues that the strongest of the four (ethical, moral, rational, and economic) arguments supporting CSR is the economic one.Why does it argue that to be true?

Question 46

Define corporate social responsibility.What arguments in favor of CSR seem most important to you? How is CSR different from strategic CSR?

Question 47

By adopting a rational argument for corporate social responsibility, firms seek to interpret evolving societal values and stakeholder expectations, and they act to avoid future sanctions.

Question 48

Describe the famous example of the Malden Mills fire and discuss Aaron Feuerstein's response to the fire.Was his response an example of corporate social responsibility? Why or why not? What are some other approaches the company could have taken?

Question 49

One definition of corporate social responsibility is "a responsibility among firms to meet the needs of their stakeholders and a responsibility among stakeholders to hold firms to account for their actions."