Deck 9: Community Relations and Strategic Philanthropy

Question 1

Which of the following provides the best description of the community stakeholder for an organization?

A) The community to be concerned with is the immediate neighborhood where most of the organization's patrons live and work.
B) The entire city in which the organization operates will be affected by the organization, and therefore this defines the community stakeholder.
C) The entire county in which the organization is located is the community stakeholder because the impact of the organization reaches beyond the city to the entire county.
D) The community aspect of the stakeholder model includes the entire region in which the company operates.
E) The community includes those members of society who are aware of, concerned by, or in some way affected by the operations and outputs of the organization.

Answer 1

E

Question 2

Which of the following best describes the importance of corporate philanthropy in the 1980s?

A) The cost-cutting nature of businesses in this decade left corporate philanthropy as a low priority for most organizations.
B) Many firms began to establish separate foundations to make donations to charitable causes during the 1980s.
C) Most business leaders understood the benefits of well-managed corporate philanthropy initiatives and implemented formal programs.
D) The public first began to question the role of business in society, and many individuals called for corporations to give back to society.
E) Most companies took a haphazard approach to corporate philanthropy causing little good to come as a result.

Answer 2

A

Question 3

What would be the best way for Anheuser-Busch to assist victims of a natural disaster in keeping with the philosophy of strategic philanthropy?

A) Donate money to the victims of the natural disaster
B) Build a new bottling facility in the area of the disaster to provide new employment opportunities
C) Bottle drinking water and distribute it to the victims
D) Send volunteers to rebuild homes that were destroyed in the natural disaster
E) Provide beer and other alcoholic beverages to the victims of the natural disaster

Answer 3

C

Question 4

What is a "living wage"?

A) Federal minimum wage that can be paid to employees
B) Level of wages designed to help individuals live comfortably
C) Average wage paid by a particular industry in a specific region
D) Required wage to keep employees above the area's poverty level
E) Ethical obligation to pay employees a reasonable wage

Question 5

Which of the following is not one of the steps in the process for planning and implementing strategic philanthropy?

A) Engage
B) Collect
C) Research
D) Organize and design
E) Spend

Question 6

You are the Director of Social Responsibility for a major athletic shoe and apparel company. Which of the following options would most closely fulfill the objectives of strategic social responsibility for your company?

A) Donating athletic shoes to a professional athletic team in order to increase the company's exposure
B) Allowing employees to volunteer at a local charity of choice on company time for one hour per week
C) Giving athletic shoes and apparel to disadvantaged youths
D) Having employees volunteer at a youth shelter and delivering athletic shoes for their sports programs
E) Sponsoring a charity-oriented golf tournament by donating monetary funds to the cause

Question 7

How could the value of employee volunteer programs be enhanced for a firm to better align these programs with strategic philanthropy goals?

A) Volunteer programs could be oriented to benefit the immediate community surrounding the firm.
B) Programs could be geared toward improving the morale of the employees who participate.
C) Programs should emphasize synergies between employees' current and future job-related aptitudes and nonprofit needs.
D) Volunteer programs should be mandatory for all employees so as to encourage all employees to think about social causes.
E) Firms could heavily advertise their volunteer efforts to create a more favorable public image.

Question 8

What does cause-related marketing do?

A) Links corporate resources and knowledge to address broader social, customer, employee, and supplier problems and needs
B) Ties an organization's product or service directly to a social concern
C) Provides an opportunity to associate a company's name and brands to a particular sports event
D) Consists of purposeful marketing that provides consumers with needed product information
E) Creates a link between an environmental cause and the company as a whole

Question 9

What is the main purpose of the "organize and design" step of the process for planning and implementing strategic philanthropy?

A) Gaining the interest and support of management early on so as to ease the approval process in the future
B) Deciding what resources and dollars should be spent on certain strategic philanthropy efforts
C) Creating interest in all the company's stakeholders in order to increase their support of the strategic philanthropy process
D) Collecting information covering the internal organization and programs that might intersect with the competencies of the company
E) Classifying funding opportunities according to the level of need and alignment with organizational competencies

Question 10

What is not a concern that top managers may have to deal with in regards to strategic philanthropy?

A) Determining whether there are tax incentives for corporate giving
B) Having to defend the company's commitment to charity to various stakeholder groups
C) Showing support for the firm's philanthropic efforts
D) Budgeting the resources required to manage philanthropic efforts
E) Being well versed in the performance benefits of social responsibility

Question 11

Which of the following is not one of the direct benefits associated with strategic philanthropy?

A) Companies with a strategic approach to philanthropy experience rewards in the workplace.
B) Companies receive a tax deduction on their charitable contributions.
C) Companies may find their employee recruitment practices to be more effective and enhanced.
D) Strategic philanthropy should ease government regulations on the company.
E) Companies should experience enhanced customer loyalty.

Question 12

Which of the following examples best aligns a company's competencies and strategic goals with philanthropic activity?

A) A local gas station has a program in which its employees are partnered with disadvantaged youths as mentors.
B) Ben and Jerry's Homemade ice cream company donates a percentage of its pretax profits to support peace initiatives.
C) The local telephone company donates money to the Youth Soccer Foundation to help pay for the upkeep of soccer fields and equipment.
D) A hair salon donates one dollar of every haircut to support the local food bank's annual holiday food drive.
E) Merck uses its pharmaceutical expertise to develop a drug to combat river blindness and donates millions of doses to poor countries.

Question 13

Which of the following best defines strategic philanthropy?

A) The synergistic use of an organization's core competencies and resources to address key stakeholders' interests and to achieve both organizational and social benefits
B) Donating financial resources to help social causes and the community in general
C) Addressing the needs of various stakeholder groups through cooperative efforts intended to benefit the community and society
D) Tying consumer purchases to the specific marketing objectives of a brand or product
E) Any act of benevolence and goodwill, such as making gifts to charities, volunteering for community projects, and taking action to benefit others

Question 14

Which of the following describes the contagion effect that can occur when one business moves into an area?

A) New jobs will be created in the community, which will decrease unemployment and boost the overall economy.
B) A move can signal to other firms that the area is a viable and attractive place for others to locate, and more businesses will follow.
C) A move can signal to other firms that the area is congested and not worth entering.
D) The community will be grateful to the company for locating within its limits and reward it with certain property tax benefits.
E) The overall skill level of employees in the community will improve, which may lead other companies to recruit workers from this community.

Question 15

What is one of the main weaknesses of cause-related marketing?

A) Consumers do not see their contributions as really helping an important cause.
B) Cause-related marketing activities have not shown potential to affect consumer buying patterns.
C) They help companies become aware that supporting social causes can support business goals.
D) Consumers have difficulty recalling exact philanthropic relationships between companies and causes.
E) It promises donations to a specific cause that is important to company stakeholders.

Question 16

In order to be considered "strategic," corporate philanthropy must be

A) valuable to the community and society as a whole.
B) aligned with the values of the employees in order to increase their motivation and satisfaction.
C) related to the interests of the customers in order to sustain long-term, mutually beneficial relationships.
D) aligned with the values, core competencies, and long-term plans of the organization.
E) communicated to all stakeholders of the organization.

Question 17

Which of the following is not an example of a cause-related marketing effort?

A) Avon sells beauty products through its "pink ribbon" campaign and donates a percentage of the proceeds to fund breast cancer research.
B) American Express donates a percentage of its credit card charges to the Statue of Liberty and Ellis Island Restoration Fund.
C) Regis Hair Salons offers $10 haircuts for its "Clip for the Cure" campaign for which the proceeds went to cancer research.
D) Bankers Trust Private Bank develops and introduces a "Wealth of Responsibility" program to assist wealthy families in planning for philanthropy.
E) Sales from New Covent Garden's pea and ham soup were donated to help renovate a homeless shelter's charity kitchens.

Question 18

The organizational function dedicated to building and maintaining relationships and trust with the community is known as

A) the social activity department.
B) the marketing department.
C) customer service.
D) community relations.
E) stakeholder management group.

Question 19

What does the "engage" step of the process for planning and implementing strategic philanthropy consist of?

A) Gaining the interest and support of management early on so as to ease the approval process in the future
B) Deciding what resources and dollars should be spent on certain strategic philanthropy efforts
C) Creating interest in all the company's stakeholders in order to increase their support of the strategic philanthropy process
D) Collecting information covering the internal organization and programs that might intersect with the competencies of the company
E) Classifying funding opportunities according to the level of need and alignment with organizational competencies

Question 20

Which of the following statements least demonstrates strategic philanthropy?

A) A talk show geared toward mothers supports a children's foundation to enhance the social and cultural development of disadvantaged children
B) A chemical company implements a vanpooling system to cut back on environmental pollution and also carefully designs its chemical processes to minimize environmental damage
C) A healthcare-based company works with other healthcare systems to make health insurance available to residents who cannot afford it
D) Employees at a telecommunications company are encouraged to serve food at a food kitchen in order to help the homeless
E) A computer software company creates and funds technology-based learning centers nationwide to help underprivileged citizens learn about technology

Question 21

What economic impact does a company have on a community?

Question 22

How can the traditional approach to corporate philanthropy be described?

Question 23

What can a company do to become a neighbor of choice?

Question 24

Give an example of cause-related marketing and an example of strategic philanthropy.

Question 25

What are some of the benefits a company receives by encouraging its employees to participate in volunteer programs?

Question 26

What is volunteerism, and who benefits from it?