Deck 18: The Community and the Corporation

Question 1

The community relies heavily on business, but business is not mutually dependent on the community.

Answer 1

False

Question 2

Social capital refers to the norms and networks that enable collective action.

Answer 2

True

Question 3

Strategic philanthropy emphasizes the links between corporate contributions and business goals, such as creating demand for a product or service.

Answer 3

True

Question 4

The term community refers to a company's area of local business influence.

Question 5

The construction industry has taken the lead in creating programs to revitalize neighborhood housing.

Question 6

An important aspect of the business-community relationship is corporate philanthropy.

Question 7

Many community problems are people problems, involving hopes, attitudes, sentiments, and expectations for better human conditions.

Question 8

Which company is known for encouraging its employees to volunteer their time and expertise to the community?

A) Exxon Corp.
B) Whole Foods Markets.
C) Bank of America.
D) Both B and C, but not

Question 9

How has ING created such a remarkable diversity of community initiatives?

A) By donating 5 percent of its pre-tax profits to community service projects.
B) By encouraging employees to devote 5 hours a month to community projects.
C) By delegating responsibility for corporate citizenship programs to business unit managers.
D) All of the above.

Question 10

Charitable donations are defined as gifts of products or services.

Question 11

The term community is sometimes improperly used to refer to a range of groups that are affected by an organization's actions, whether or not they are in the immediate vicinity.

Question 12

All corporate contributions benefit their donors directly.

Question 13

Business depends on the community for:

A) Education.
B) Public services.
C) Transportation systems.
D) All of the above.

Question 14

Which of the following statements is true about the relationship between business and the community?

A) It is one of mutual interdependence.
B) Business has more responsibility towards community than the community does towards business.
C) Communities possess more social power than businesses do.
D) All of the above statements are true.

Question 15

Corporations are prohibited from giving more than 10 percent of its income for philanthropic purposes.

Question 16

Civic engagement is a major way in which companies carry out their corporate citizenship mission.

Question 17

Many companies have turned to technology to improve the amount and effectiveness of employee volunteerism.

Question 18

Which company committed to investing 10 percent of its pre-tax profits in rural development projects such as children's immunizations?

A) ING.
B) Unilever.
C) Hindustan Lever.
D) Whole Foods.

Question 19

Community relations departments work primarily on the national level to link the corporation to community stakeholders.

Question 20

Foreign-owned corporations typically establish and use corporate foundations less frequently than U.S. firms.

Question 21

When companies like Whole Foods Markets work to address community problems, their actions help create:

A) Legal obligations.
B) Social capital.
C) Corporate foundations.
D) Social contracts.

Question 22

Which of the following is not included among purposes for establishing community relations departments by businesses?

A) To work with local governments.
B) To manage donations of goods and services.
C) To encourage employee volunteerism in nonprofit and civic groups.
D) Manage international relations projects for economic development.

Question 23

Social capital is a phrase that describes the following, except:

A) The goodwill that is engendered by the fabric of social relations.
B) A close relationship between companies and groups in the community.
C) The norms and networks that enable collective action.
D) All of the above are described by social capital.

Question 24

What percentage of Microsoft's annual contributions is dedicated to minority owned businesses?

A) 1 percent.
B) 2 percent.
C) 5 percent.
D) 10 percent.

Question 25

Foreign-owned corporations use foundations:

A) More frequently than U.S. firms.
B) Less frequently than U.S. firms.
C) About as often as U.S. firms.
D) Only for setting up disaster relief.

Question 26

Which of the following is a good way for a business to express its commitment to corporate citizenship?

A) Community relations programs.
B) By behaving responsibly toward all its stakeholders.
C) By correcting problems associated with its operations.
D) All of the above.

Question 27

The term civic engagement describes:

A) The active involvement of businesses and individuals in improving communities.
B) A competitive, free market environment.
C) Strong governmental regulation to control businesses at the municipal level.
D) A close and collaborative business-government relationship.

Question 28

Which of the following sectors receives the largest percentage of corporate cash and in-kind contributions?

A) Health and human services.
B) Education.
C) Civic and community.
D) Culture and arts.

Question 29

Which of the following statements is true about community relations?

A) Fewer than half of companies have a written policy or mission statement for their community relations program.
B) More than 80 percent of companies include a statement in their annual report on their commitment to community relations.
C) About 10 percent of companies factor community involvement into their overall strategic plan.
D) Businesses still generally regard community relations as a nuisance and a drain on economic resources.

Question 30

Which of the following non-profit, locally funded and controlled organizations offer housing rehabilitation and financial services to neighborhood residents?

A) Habitat for Humanity.
B) Community Reinvestment Services.
C) Community Business Program.
D) Neighborhood Housing Services.

Question 31

Average corporate giving in the Unites States:

A) Is disproportionately high for non-U.S. firms.
B) Is far below the 10 percent tax deduction now permitted.
C) Has decreased steadily in the past decade.
D) All of the above.

Question 32

Which of the following is a reason for businesses to get involved in the community?

A) To win local support for business activity.
B) To build social capital.
C) To meet stakeholder demands.
D) All of the above.

Question 33

Another term for corporate giving is corporate:

A) Welfare.
B) Goodwill.
C) Philanthropy.
D) Citizenship.

Question 34

What is the most critical social issue facing communities, according to community relations managers?

A) Education.
B) Health care.
C) Public safety.
D) Housing.

Question 35

How do companies encourage their employees to volunteer their time?

A) By publicizing specific projects.
B) By offering recognition for service.
C) By publicizing opportunities to serve.
D) All of the above.

Question 36

Habitat for Humanity is considered a:

A) Corporation.
B) Government division.
C) Nongovernmental organization.
D) Homelessness program.

Question 37

For what is Grameen Bank in Bangladesh internationally recognized?

A) For donating large amounts of employee time to the local community.
B) For financing low-income housing for local residents.
C) For providing small loans to individual entrepreneurs who would not normally qualify for loans.
D) For providing high quality welfare-to-work job training programs in its community.

Question 38

Minority enterprises often do business in locations with:

A) High crime rates.
B) Poor transportation.
C) Low-quality public services.
D) All of the above.

Question 39

The share of all giving made up by in-kind contributions of products and services has been:

A) Rising steadily over the past decade.
B) Declining steadily over the past decade.
C) Remaining relatively constant over the past decade.
D) Declining sharply over the past decade.

Question 40

Which company gives all of its earnings to charity?

A) Seventh Generation.
B) The Body Shop.
C) Newman's Own.
D) Patagonia.

Question 41

Discuss the ways a business can demonstrate organized involvement with the community. Which way do you feel is the most important? Why?

Question 42

Which of the following is not a distinct period in corporate involvement in education reform from the 1980s to the present?

A) Direct involvement with the schools.
B) Public policy initiatives in education.
C) Collaboration for systemic reform.
D) Total quality management of the education system.

Question 43

Factor conditions are strategic contributions focusing on:

A) The supply of trained workers, physical infrastructure, and natural resources.
B) Policies that create a more productive environment for competition.
C) The demand for a product or service.
D) All of the above.

Question 44

Discuss the three forms of gifts typically made by corporations and their foundations. Which form of gift do you think is most valuable, and why?

Question 45

In your opinion, what are the most pressing and significant concerns facing communities today? Why do you think so? How would a business' community relations department address that concern?

Question 46

Analyze why a business may wish to get involved in community relations. What benefits accrue to businesses that actively participate in their communities?

Question 47

Explain four strategies that businesses can use to help them get the most benefit from their contributions. Cite examples of companies that adopt these strategies.

Question 48

Describe how companies can target their corporate contributions strategically to meet the needs of the recipient while satisfying business goals and objectives. Cite an example.

Question 49

According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company's competitiveness?

A) Context for strategy and rivalry.
B) Demand conditions.
C) Stakeholder management.
D) Factor conditions.

Question 50

Discuss both the community services desired by businesses and the requests made to communities by businesses.

Question 51

In a study conducted by the Council on Foundations, companies with high Corporate Philanthropy Index (CPI) scores:

A) Gave more money than companies with low CPI scores.
B) Had better reputations and generated more admiration than others did.
C) Gave more of their time to community projects than others did.
D) All of the above.

Question 52

Which of the following is not a strategy to help companies get the most benefit from their contributions?

A) Use hard-nosed business methods to assess the impact of gifts.
B) Align priorities with employee interests.
C) Establish priorities even if they come into conflict with firm core values.
D) Draw on unique competencies of the business.