Deck 16: Business and Community Stakeholders

Question 1

The company's overriding concern after making the decision to close a plant should be for the firm to move as quickly as possible.

Answer 1

False

Question 2

Outsourcing has invariably provided excellent results for the companies utilizing that strategy.

Answer 2

False

Question 3

Firms can provide support to survivors of job losses by providing emotional,directional,tactical and informational support.

Answer 3

True

Question 4

It is usually easy to assess the true motives behind businesses' giving.

Question 5

A company may create a positive impact in the community by giving time and talents of its managers.

Question 6

Some observers worry that in times of crisis,corporate philanthropy becomes a zero sum game in that contributions that go to alleviate the crisis then do not go to causes that need them.

Question 7

Community foundations are non-profit organizations that specialize in grant writing and locating sources of corporate philanthropy.

Question 8

Outsourcing refers to the relocation of business processes to a different company.

Question 9

Outsourcing today affects both blue collar and white collar jobs.

Question 10

Many companies are willing to give employees time to engage in and support community projects.

Question 11

Corporate philanthropy involves primarily the giving of financial resources,and managerial time and talent.

Question 12

Responsibility is considered a standard of excellence in corporate community involvement.

Question 13

Monitoring the company's community involvement projects entails review and control.

Question 14

Cause-related marketing is one of the clearest examples of corporate philanthropy.

Question 15

In practice,it is relatively simple to determine the motives behind business giving.

Question 16

Making profits and addressing social concerns are not mutually exclusive.

Question 17

The categories of recipients to whom corporations give remain stable over time.

Question 18

The major reason that health and welfare is one of the largest categories of business giving is the huge amount donated to programs for needy children.

Question 19

Business involvement in the community represents enlightened self-interest.

Question 20

The business community now encompasses the entire world.

Question 21

Guidelines for developing a community involvement strategy include all of the following steps except

A)Stick with projects that employees are more likely to want to get involved.
B)they should meet the same standards of cost-effectiveness as other parts of the business.
C)the corporation should capitalize on its talents and resources.
D)decisions about which projects to undertake should take place at the highest levels of management.

Question 22

Which of the following is not a standard of excellence by which corporate community involvement should be judged?

A)crisis management
B)accountability
C)infrastructure
D)measurement

Question 23

Standards of excellence in corporate community involvement include all of the following except

A)leadership.
B)efficiency.
C)issues management.
D)relationship building.

Question 24

Community involvement is most commonly manifested through

A)donations of money and like-kind gifts.
B)donating the time and talents of its employees.
C)sponsoring one of its employees for government office.
D)beautification projects at the company's place of business.

Question 25

Philanthropy,as it is used in the textbook,means

A)donations of corporate employees' time and talents.
B)a desire to help mankind by acts of charity.
C)business giving of financial resources.
D)altruistic acts that benefit all of society.

Question 26

Companies can benefit from volunteer programs that they sponsor in all of the ways shown below except

A)improving employee skills and training.
B)increasing productivity at work.
C)encouraging teamwork.
D)developing leadership skills.

Question 27

Being more systematic about the company's relationship with the community often results in developing a

A)community involvement initiative.
B)community action program.
C)community partnership plan.
D)community crisis center.

Question 28

The biggest change in corporate philanthropy since 2001 was its alignment with which of the following?

A)Business objectives
B)Corporate reputation
C)Branding
D)Each of these

Question 29

Selection of projects for a community action program grows out of

A)an application process.
B)matching community needs with company resources.
C)needs identified by board members.
D)grassroots lobbying efforts.

Question 30

Business support for the arts has been increasing.

Question 31

Community involvement focuses on the contribution of

A)employee time and talent.
B)financial resources.
C)gifts in kind.
D)used equipment.

Question 32

Educational recipients of giving include each of the following except

A)Student matching gifts
B)Capital grants including endowments
C)Departmental research grants
D)Scholarships and fellowships

Question 33

Steps in developing a community action program include all of the following except

A)knowing the community.
B)knowing the company's resources.
C)building bridges to the community.
D)monitoring projects.

Question 34

The second step in managing the performance of a community action program is

A)knowing the community.
B)knowing the company's resources.
C)selecting the resources to use.
D)monitor the projects.

Question 35

Benefits of employee volunteerism include all the following except

A)builds brand awareness and affinity.
B)creates qualifiable social impact.
C)encourages teamwork.
D)promotes leadership and skill development.

Question 36

Which of the following is not a guideline for developing a community involvement strategy?

A)Employees should be involved.
B)Involvement should be in areas that the company knows best.
C)The company should get involved in projects that will help it make more profit.
D)The best kind of support is that which helps others help themselves.

Question 37

Reports indicate the international development will see increased funding even in recessions.

Question 38

Which of the following is not a way in which companies can benefit from volunteer programs?

A)developing strong ties with local government officials
B)developing the local labor pool
C)recruiting and retaining employees
D)improving the company's reputation

Question 39

The most important issue in corporate community involvement is

A)crimes or public safety.
B)K-12 education.
C)housing.
D)health and wellness.

Question 40

Which of the following is not a reason commonly given for community involvement?

A)moral justification.
B)positions the company to help themselves
C)companies can develop community support and trust.
D)a way to help employees build their resumés

Question 41

Which of the following is not a reason that some people want more transparency in corporate philanthropy?

A)recent accounting scandals
B)to close tax loopholes
C)concern that some donations go to terrorist organizations
D)concern that some donations are made to get around campaign finance laws

Question 42

Employees might consider their roles in plant closings

A)to be to fight for their jobs.
B)an extension of numerous employee rights issues.
C)an opportunity to find better employment.
D)a chance to form an employee-owned business.

Question 43

After the decision to close a plant,management can take all the following actions except

A)provide advance notice to the employees or community.
B)close cold turkey.
C)help the community attract a replacement industry.
D)Provide transfer,relocation,and outplacement benefits.

Question 44

Which of the following is a reason that corporate giving has slowed?

A)the recession of the early 1990s
B)mergers and acquisitions
C)cause-related marketing
D)all of these

Question 45

After the decision to close a plant has been made,actions that management should take may include all of the following except

A)provide advance notice to employees and the community.
B)phase out the business gradually.
C)announce the decision in the press before telling employees and community leaders.
D)help the community attract replacement industry.

Question 46

Cause branding is similar to cause-related marketing,but

A)is done with more dissimilar organizations.
B)is a more formalized arrangement.
C)is a longer term commitment.
D)is usually less successful.

Question 47

Which of the following is not a category of recipient to whom corporations often give money?

A)education
B)arts and culture
C)athletic teams
D)civic and community activities

Question 48

An approach by which corporate giving is designed in a way that best fits with the firm's overall mission and goals is called

A)strategic philanthropy.
B)mission-driven giving.
C)goal-directed philanthropy.
D)directed giving.

Question 49

Which of the following actions is not usually a viable alternative to closing a plant?

A)diversify revenue sources
B)sell the plant to a new owner
C)create an employee-owned firm
D)seek tax breaks that will help profits

Question 50

Which of the following is not a category of corporate contributions programs?

A)community giving for which there is little or no expected benefit for the business.
B)gifts that support long-term strategic business goals while also meeting a critical community need.
C)giving that benefits the business wherein the benefit is its primary motivation.
D)firms whose donations usually go to children's programs

Question 51

All of the following are critical factors in influencing corporate giving priorities except

A)changes in the workforce.
B)community needs.
C)benefits of responding to natural disasters.
D)directions from CEO/Board.

Question 52

One way in which philanthropy can be made strategic is to

A)consult with a tax professional to get the maximum deductions.
B)bring contribution programs into sharper alignment with business endeavors.
C)distribute contributions as widely as possible.
D)eliminate contributions to inefficient non-profit organizations.

Question 53

Fund-raising efforts by large non-profit organizations like United Way,who in turn donate funds to specific causes,are called

A)federated drives.
B)consolidated campaigns.
C)multi-gift campaigns.
D)umbrella drives.

Question 54

Employee ownership of a business whose former owners were considering shutting it down

A)almost always results in bankruptcy.
B)assures worker/owners continued employment.
C)in most cases,results in employees having to take significant wage and benefit reductions to make the business profitable.
D)forces workers to think like owners.

Question 55

Of the portion of corporate philanthropy that goes to education,most of donations go to

A)executive education programs.
B)higher education.
C)pre-school programs.
D)private schools rather than public institutions.

Question 56

For employee ownership of a business to work,

A)the company must have a large market share.
B)the company must treat its employees ethically.
C)senior managers must be elected democratically.
D)employees must believe they have role to play in leading the company.

Question 57

Outsourcing refers to

A)small (usually fewer than ten employees)layoffs.
B)transferring employees to overseas postings.
C)layoffs at small companies.
D)the relocation of business processes to a different company.

Question 58

The primary reason given for support of higher education programs is

A)the value of a liberal arts education.
B)civic duty.
C)to increase the pool of trained personnel.
D)to have an educated voter pool.

Question 59

The "third sector" is composed of

A)schools.
B)non-profit organizations.
C)churches.
D)households.

Question 60

The direct linking of a business's product or service to a specified charity is

A)cause-related marketing.
B)a public purpose partnership.
C)cause branding.
D)a joint venture.

Question 61

Provide a short answer to each of these questions.Be sure to fully explain your answer.
How does the Deloitte Touche Tohmatsu Corporate Social Responsibility Report makes the case for corporate social responsibility?

Question 62

Outplacement services seek to

A)minimize the severance costs to workers.
B)place displace workers in other jobs within the same company.
C)provide employee benefits to displaced workers for at least one year.
D)minimize cost and disruption to the company and maximize benefits to the displaced workers.

Question 63

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe how a company can provide support to "survivors" of a layoff.

Question 64

Provide a short answer to each of these questions.Be sure to fully explain your answer.
A key step in developing a community action program is knowing the company's community.What is involved in this step?

Question 65

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Discuss how Transparency International fulfills its mission to deter and disclose corporate corruption around the world.

Question 66

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
One of the major questions in corporate giving to higher education is whether the donations should be "with strings attached" or not.Should corporate giving have specific expectations attached to it?

Question 67

Provide a short answer to each of these questions.Be sure to fully explain your answer.
One justification for corporate involvement in the community is that business has a moral responsibility to build a relationship with the community and to be sensitive to its impact on the world around it.Discuss this justification using the Seven Standards of Excellence in Corporate Community Involvement.

Question 68

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe UPS's success in volunteer programs.

Question 69

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Assume that you are the general manager at a plant that will be closing in one year.It is a small plant,and so is not subject to the Worker Adjustment and Retraining Notification Act (WARN).Should you give your employees advance notice of the closing? Why or why not?

Question 70

Provide a short answer to each of these questions.Be sure to fully explain your answer.
One of the recommended actions for a company that has made its decision to close a plant is to help attract a replacement industry.How likely is this to occur?

Question 71

The Worker Adjustment and Retraining Notification Act (WARN)requires firms employing 100 or more workers to notify workers of a large layoff or shutdown at least ____ in advance.

A)six months
B)sixty days
C)one year
D)one month

Question 72

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
There is debate over the benefits and costs associated with outsourcing.This has become such an important topic in the United States that it was a central issue in the 2004 Presidential campaign,and statistics are being kept on mass layoffs.Visit the Bureau of Labor Statistics website at http://www.bls.gov/mls/home.htm.Review some of the statistics provided there.What trends do you see? Does this information alter your view of outsourcing in any way?

Question 73

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Delineate the arguments for and against the practice of cause-related marketing.

Question 74

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Review the pros and cons of outsourcing.

Question 75

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Evaluate the Minnesota HEALS project,funded by General Mills.Was this an appropriate use of corporate funds?

Question 76

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Calls for more transparency in corporate giving programs has again raised the question of the role of business in society.Summarize the reasons for more transparency and the reasons against it.

Question 77

According to the CECP,motivations for giving include all the following except

A)charitable.
B)commercial.
C)community investment.
D)competitiveness.

Question 78

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Pick a company that you are interested in (maybe you or your parent work there,or it is a company that you would like to work for).Research its giving history.What did you find out? Is it clear how the program fits with the firm's business activities?

Question 79

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What reasons to corporate executives use to justify corporate giving to the arts?

Question 80

According to Braithwaite,advice for communicating with employees who are being lad off include all the following except

A)Be complete.
B)Be consistent.
C)Inform affected employees first.
D)Inform competitors.