Deck 10: Strategic CSR

Question 1

According to the textbook, corporate social responsibility concerns the economic, legal, ethical, and ______ issues that stakeholders view as directly related to the firm's plans and actions.

A)environmental
B)governance
C)social
D)discretionary

Answer 1

D

Question 2

For a footwear manufacturer, prospect of government legislation on outsourcing labor issue represents which one of the three levels in Porter and Kramer's framework for incorporating a social decision in firms' strategic decision-making?

A)generic social issues
B)strategic corporate philanthropy
C)value chain social impacts
D)social dimensions of the competitive context

Answer 2

D

Question 3

Which of the following is NOT one of the three levels in Porter and Kramer's framework for incorporating a social decision in firms' strategic decision-making?

A)generic social issues
B)strategic corporate philanthropy
C)value chain social impacts
D)social dimensions of the competitive context

Answer 3

B

Question 4

Which company was behind the creation of the Equator Principles?

A)Amazon
B)Patagonia
C)Unilever
D)Citigroup

Question 5

Which organization's activity resulted in Citigroup's adoption of wide-ranging environmental metrics in the criteria it uses to grant loans?

A)EarthFirst!
B)Greenpeace
C)Rainforest Action Network (RAN)
D)Sierra Club

Question 6

When a U.S.retail clothing company outsources production overseas, it addresses the issue of a livable wage within the United States.According to Porter and Kramer's framework, what is this an example of?

A)a generic social issue
B)strategic corporate philanthropy
C)value chain social impacts
D)the social dimension of a competitive context

Question 7

Johnson & Johnson's "Credo" places ______ as its lowest priority.

A)employees
B)customers
C)stockholders
D)Johnson & Johnson treats all its stakeholders equally

Question 8

A focus on profit optimization orients the manager toward ______.

A)short-term profits
B)the interests of ETF shareholders
C)the interests of a broader collection of constituent interests
D)all of these

Question 9

Which activist organization's activity resulted in Shell's change of course regarding the breakup of the Brent Spar oil platform?

A)EarthFirst!
B)Greenpeace
C)Rainforest Action Network (RAN)
D)Sierra Club

Question 10

According to the textbook, the firm ______.

A)exists independently of its stakeholders
B)exists to solve social, moral, and ethical problems
C)exists only with the support of shareholders
D)does not exist independently of its stakeholders

Question 11

Which of the following is NOT one of the components of the working definition of strategic CSR?

A)understanding and responding to needs of stakeholders
B)responsibly addressing environmental sustainability
C)incorporating a CSR perspective within the firm's culture and strategic planning processes
D)any actions taken are directly related to core operations

Question 12

According to the textbook, strategic CSR is not about ______ but instead is about ______.

A)sharing value; creating value
B)creating value; sharing value
C)sharing value; meeting primary stakeholders' desires
D)meeting primary stakeholders' desires; meeting all stakeholders' desires

Question 13

What is a possible issue with Dell working with a partner to plant a tree for each computer it sells?

A)Dell looks like it is greenwashing
B)Dell appears to exploit low-income consumers
C)Dell has no perceived expertise in planting trees
D)Dell appears to act counter to its vision

Question 14

For a U.S.chocolate company, addressing the issue of child labor in the countries where cocoa beans are harvested is ______.

A)a generic social issue
B)strategic corporate philanthropy
C)a value chain social impact
D)the social dimension of a competitive context

Question 15

Adopting a stakeholder perspective to decision-making in strategic CSR is that it can correct what critics have said is a tendency to prioritize what stakeholder group?

A)shareholders
B)the government
C)boards of directors
D)the communities in which business reside

Question 16

High-frequency traders ______.

A)base decisions on a company's long-term future prospects
B)base decisions on a company's diverse set of stakeholders
C)do not base decisions on a company's primary stakeholders
D)do not base decisions on a company's long-term future prospects

Question 17

According to the textbook, prominent business leaders, such as Bill Gates and Muhammad Yunus, have sought to reform the underlying principles of ______ by urging firms to ______.

A)strategic CSR; adopt goals of profit maximization
B)capitalism; adopt goals of profit optimization
C)strategic CSR; adopt goals beyond profit optimization
D)capitalism; adopt goals beyond profit maximization

Question 18

______ seek firms with a share price that reflects sound economic fundamentals, while ______ seek firms based on whether the share price will rise.

A)Speculators; investors
B)Investors; speculators
C)Stakeholders; shareholders
D)Shareholders; stakeholders

Question 19

Which of the following is NOT an example of strategic CSR?

A)Dell plants a tree for each computer it sells.
B)Nike addresses the issue of a livable wage in countries where its products are manufactured.
C)Budweiser provides education about alcohol abuse to high school students.
D)Unilever provides affordable cleaning products in developing countries.

Question 20

In 1911, a U.S.Supreme Court ruling forced Standard Oil to ______.

A)pay its employees more fairly
B)hire members of minority groups
C)break up into separate companies
D)remove lead from its gasoline

Question 21

Adopting a CSR perspective presupposes what type of relationship between the firm and its stakeholders?

A)circular
B)iterative
C)curvilinear
D)transformative

Question 22

Recently, Facebook, Google, Apple, and Amazon--among the largest publicly traded companies in the world--have found themselves facing calls for what type of legislation?

A)privacy
B)free speech
C)antitrust
D)deceptive practices

Question 23

What word best describes the relationship between CSR and philanthropy?

A)strong
B)direct
C)tangential
D)spurious

Question 24

Strategic CSR is not about philanthropy; it is about ______.

A)ethics
B)day-to-day operations
C)ends over means
D)tactics

Question 25

Describe the perspectives of Bill Gates and Muhammad Yunus on the future of capitalism.Do you agree with these perspectives? Explain your reasoning.

Question 26

"Increasingly, the idea that shareholders have the best interest of the firm at heart is hard to defend." Analyze that quote and provide your reaction.Do you agree or disagree with the statement?

Question 27

According to the textbook, strategic CSR is not about ______ but instead is about ______.

A)philanthropy; day-to-day operations
B)day-to-day operations; profit optimization
C)profit optimization; day-to-day operations
D)day-to-day operations; strategic corporate philanthropy

Question 28

When did the U.K.government pass the Modern Slavery Act?

A)1965
B)1975
C)1995
D)2015

Question 29

Strategic CSR is essentially the intersection between sustainability and business ethics.

Question 30

Should Starbucks form partnerships with farmers in Guatemala? Why or why not?

Question 31

Which company's Credo places customers first and shareholders (stockholders) last as a "final responsibility?"

A)Dunkin Donuts
B)Nike
C)Patagonia
D)Johnson & Johnson

Question 32

One solution that companies have found to resist pressure for short-term planning orientation is to ______.

A)eliminate boards of directors
B)adopt the SEC list of investing best practices
C)delist themselves from the stock market
D)increase the use of CSR consultants like McKinsey

Question 33

Strategic CSR is ______.

A)caring capitalism
B)inclusive capitalism
C)social capitalism
D)market capitalism

Question 34

Why has Toms Shoes been criticized for the effects its "buy one, give one" business model? What would be a better strategy for it to pursue?

Question 35

Ethical behavior is not a prerequisite assumption for strategic CSR.

Question 36

Stock options are a problem because they _________.

A)emphasize the interests of directors
B)emphasize the interests of headhunters
C)emphasize the interests of short-term investors
D)emphasize the interests of stock analysts

Question 37

Corporate social responsibility allows executives to address stakeholder concerns in ways that carry strategic benefits for the firm.

Question 38

Which of the following is a strategic CSR focus versus a mainstream CSR focus?

A)peripheral activities (philanthropy)
B)mandatory imposition of what a minority sees as ideal
C)objective set of activities (predetermined)
D)focuses on core operations