Deck 3: Corporate Social Responsibility

Question 1

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called the big business principle.

Answer 1

False

Question 2

Businesses that comply with laws and public policies are meeting a minimum level of social responsibility expected by the public.

Answer 2

True

Question 3

Huge businesses can disproportionately influence politics, shape tastes, and dominate public discourse.

Answer 3

True

Question 4

Laws and regulations help create a level playing field for businesses that compete against one another.

Question 5

Less than 25% of CEOs surveyed in a Korn/Ferry International poll said that it was their personal responsibility to manage their company's reputation.

Question 6

Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate.

Question 7

The concept of corporate social responsibility is rooted in the meaning "to pledge back," creating a commitment to give back to society and the organization's stakeholders.

Question 8

Corporate social responsibility is the idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals.

Question 9

Only G-8 nations are affected by corporate operations, and as a result, social responsibility has not yet become a worldwide expectation.

Question 10

Business leaders who follow the stewardship principle believe they have an obligation to see that everyone benefits from the firms' actions.

Question 11

As a response to the conflict between long- and short-term profit making, an enlightened self-interest point of view would be the least useful and practical approach.

Question 12

Which of the following statements is true about corporate social responsibility?

A) Businesses should monitor and prevent social problems in advance of their becoming major issues.
B)
B) A company should seek maximum profits from its operations in order to provide the best for society.
C) Corporations should be accountable for any actions that affect people, their communities, and the environment.
D) Both A and C, but not

Question 13

Corporate power says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it.

Question 14

The iron law of responsibility says that:

A) In the long run, those who do not use power responsibly will lose it.
B) In the short run, sacrifice social goals for economic goals.
C) Law is most important, more than social or economic responsibility.
D) In the long run, economic responsibility leads to social responsibility.

Question 15

An argument against corporate social responsibility is that it imposes unequal costs among competitors.

Question 16

Which of the following companies is being the most socially responsible?

A) A company trying its best to operate in a way which will help local students get education and jobs.
B) A company halting its production of toxic gases after it discovered that people objected to this practice and threatened legal action.
C) A company trying to maximize its profits and then contributing to an environmental protection fund.
D) A company changing its product design to comply with regulatory mandates.

Question 17

Corporations have a role in establishing their community's:

A) Tax base.
B) Safety.
C) Economic growth.
D) All of the above.

Question 18

One of the most appealing arguments in favor of corporate social responsibility for business supporters is that voluntary social acts may head off increased government regulation.

Question 19

Corporate power refers to:

A) The capability of competitors to influence legislation, trade, and the stock market, based on their organizational resources.
B) The capability of politicians to influence corporations, employees, and unions, based on their organizational resources.
C) The capability of corporations to influence government, the economy, and society, based on their organizational resources.
D) The capability of CEOs to influence product development, employee morale, and currency indices, based on their organizational resources.

Question 20

Being socially responsible means that a company must abandon its other missions.

Question 21

A company who complies with the laws and regulations set by the government is:

A) Meeting the minimum level of social responsibility expected by the public.
B) Meeting the maximum level of social responsibility expected by the public.
C) Not meeting government expectation.
D) Following a practice of enlightened self-interest.

Question 22

Reason(s) for adopting an enlightened self-interest approach is (are):

A) Reasonable short-run costs are incurred, but socially responsible activities are promoted.
B) The public's attitude toward the company is positive in the long run.
C) The stockholders' pressures for short-run profits are satisfied.
D) All of the above.

Question 23

Modern corporations should be socially responsible because they:

A) Are responsible to the stockholders of the company.
B) Create jobs, influencing the lives of employees.
C) Are highly profitable.
D) Generate dividends for the company stockholders.

Question 24

Which of the following is not an example of the charity principle?

A) Endowing public libraries.
B) Supporting settlement houses for the poor.
C) Supporting a governmental protection agency.
D) Donating money to a family-counseling center.

Question 25

Executive conscience, acts of charity, and philanthropic funding are examples of:

A) Corporate social stewardship.
B) Corporate social responsiveness.
C) Corporate/Business Ethics
D) Corporate/Global Citizenship

Question 26

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:

A) Corporate social stewardship.
B) Corporate social responsiveness.
C) Corporate/Business Ethics.
D) Corporate/Global Citizenship.

Question 27

Philanthropic funding and public relations are two examples of corporate social responsibility:

A) Drivers of the Corporate Social Responsiveness phase.
B) Policy instruments of the Corporate Social Stewardship phase.
C) Policy instruments of the Corporate Social Responsiveness phase.
D) Drivers of the Charity Principle phase.

Question 28

Which of the following is an argument in favor of corporate social responsibility?

A) Lowers economic efficiency and profit.
B) Discourages government regulation.
C) Places responsibility on business rather than individuals.
D) Imposes unequal costs among competitors.

Question 29

Scholars have found:

A) No relationship between social and financial performance.
B) A negative relationship between social and financial performance.
C) An inverse relationship between social and financial performance.
D) A positive association between social and financial performance.

Question 30

Which of the following examples does not show a company guided by enlightened self-interest?

A) A company providing the best quality product at a fair price.
B) A company providing assistance to employees who attend evening college.
C) A company breaking past records by maximizing quarterly profits.
D) A company vice-president invited to attend a local community's town planning meeting.

Question 31

The idea that the wealthiest members of society should be charitable toward those less fortunate is the:

A) Giving USA Foundation.
B) Social funds principle.
C) Stewardship principle.
D) Charity principle.

Question 32

When the Odwalla Company sought to improve the safety of its fresh juice drinks by pasteurizing voluntarily, they were:

A) Seeking to satisfy their stakeholders.
B) Discouraging government regulation.
C) Correcting social problems caused by business.
D) None of the above.

Question 33

Which of the following is not a driver of the Corporate Social Responsiveness phase of Corporate Social Responsibility?

A) Religious/ethnic beliefs.
B) Social unrest/protest.
C) Stakeholder pressures.
D) Public policy/government regulations.

Question 34

When the CEO of General Electric appointed the company's first VP of Corporate Citizenship, he was demonstrating:

A) Enlightened self-interest.
B) A responsibility to stockholders.
C) An attempt to balance economic, legal and social responsibilities.
D) The iron law of responsibility.

Question 35

The obligation to see that everyone, particularly those in need or at risk, benefits from their firms' actions is called:

A) Giving USA Foundation.
B) Stewardship principle.
C) Social funds principle.
D) Charity principle.

Question 36

When undertaking social initiatives, a company:

A) Must take out social responsibility insurance.
B) Will always receive long-term profits.
C) May sacrifice short-term profits.
D) Risks going bankrupt in nearly all cases.

Question 37

All of the following are examples of the phases of Corporate Social Responsibility except:

A) Corporate/Global Citizenship.
B) Corporate Charity Principle.
C) Corporate Social Stewardship.
D) Corporate/Business Ethics.

Question 38

HP Brazil, a subsidiary of Hewlett-Packard, developed the Digital Garage project to:

A) Promote the sale of PCs and notebook computers in the Brazilian consumer market.
B) Assist with natural resource conservation and recycling programs in their plant.
C) Empower less privileged Brazilian youth to participate in the growing technological society.
D) All of the above.

Question 39

Social responsibility reflects:

A) The type of governmental rule and degree of individual freedom in a nation.
B) Social activists' power and the extent that social regulation is found in a country.
C) Cultural values and traditions, taking different forms in different societies.
D) All of the above.

Question 40

Socially responsible actions frequently occur as a result of:

A) A genuine desire to promote worthy social goals.
B) A wish to project a caring corporate image.
C) An obligation to follow the law.
D) All of the above.

Question 41

Provide three arguments in favor of corporate social responsibility.

Question 42

According to Barlow v.
A) The laws prohibited charitable contributions, at that time.

A)P. Smith Manufacturing:
B) Charitable contributions were bad corporate investments for the short term.
C) Socially responsible actions must be approved by a majority of the firm's stakeholders.
D) Socially responsible actions are in investment in the future, thus an allowable expense.

Question 43

Positive reputation can be valued as an intangible corporate:

A) Asset.
B) Liability.
C) Charity.
D) Expense.

Question 44

Describe the iron law of responsibility.

Question 45

How can a company focus on the needs of its stakeholders without neglecting its shareholder obligations?

Question 46

Define and provide an illustration of a modern-day expression of both the charity principle and the stewardship principle.

Question 47

Explain why a business should seek to balance its economic, legal and social obligations.

Question 48

Which of the following is an argument against corporate social responsibility?

A) Requires skills businesses may lack.
B) Balances corporate power with responsibility.
C) Improves business value and reputation.
D) Corrects social problems caused by business.

Question 49

Provide three arguments against corporate social responsibility.

Question 50

The costs of corporate social responsibility may ultimately be passed on to the:

A) Employees through fewer health benefits.
B) Consumer through high prices.
C) Investor through stock splits.
D) Taxpayers by the government.

Question 51

Define and provide an example of a business practicing enlightened self-interest.

Question 52

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because:

A) Business people do not have the skill-set to solve societal problems.
B) The private sector is not mandated to solve these issues.
C) Both A and
D) None of the above.