Deck 15: Global Corporate Social Responsibility and Environmental Sustainability

Question 1

Advocates of the shareholder's perspective toward value creation tend to oppose activities that reduce a firm's profitability.

Answer 1

True

Question 2

The three dimensions of corporate social responsibility and environmental sustainability are social, economic, and scientific.

Answer 2

True

Question 3

Individuals that have the least impact on corporate governance are considered to be stakeholders of an organization.

Answer 3

False

Question 4

Stake refers to claim and interest, and the term stake holding defines the interdependent relationship between constituents.

Question 5

All managers in an organization are created as equals.

Question 6

A global presence presents more opportunities for experimentation and innovation for a global company.

Question 7

Great companies believe that business is an intrinsic part of society.

Question 8

Stockholders own the corporations to which they fund resources.

Question 9

Companies have acted on the false assumption that sustainability will add costs and decrease their competitiveness.

Question 10

Global organizations are successful because they contribute to the wealth and health of every country they operate in.

Question 11

The myopic view of values emphasizes that companies view value creation as something that happens in a bubble that includes only the company and its customers.

Question 12

Shifting production activities to lower-wage locations is a sustainable solution to competitive challenges.

Question 13

The top management of an organization has no influence on the extent to which the organization will adapt the concept of shared value.

Question 14

According to the old value equation, value can be increased by increasing the price.

Question 15

The main rationale of the neoclassical theory is to create economic value in order to provide a financial return to stockholders since they invest their capital in the firm.

Question 16

Globalization requires that companies respond to the needs of many societies.

Question 17

A negative correlation always exists between sustainability and competitiveness.

Question 18

According to the neoclassical theory, the sole purpose of a firm is to manage resources according to the societies' interests.

Question 19

The new idea in business and marketing is that profit can and should be aligned with creating economic and social value in any truly successful socially responsible business.

Question 20

As a move toward sustainability, organizations take advantage of a new law setting standards for environmental regulations and gain greater competitive advantage.

Question 21

Which of the following is referred to as the big new idea in business and marketing?

A) the emphasis on pushing products
B) the focus of a business to maximize profits
C) the responsibility of a business to create value
D) the provision for customer-perceived benefits

Question 22

Which of the following is the first stage in creating a sustainable competitive advantage?

A) making value chains sustainable
B) viewing compliance as an opportunity
C) designing sustainable products and services
D) developing new business models

Question 23

Which of the following will most likely give an organization a sense of identity?

A) short-term perspectives
B) purpose and values
C) profit maximization
D) customer retention

Question 24

Members of society are stakeholders who are affected by corporate activities.

Question 25

A consumer is considered to be a stakeholder ________.

A) when they stay away from influencing corporate governance
B) when they show concerns about the working conditions in a company
C) when they refrain from getting involved in the marketing exchange process
D) when they acquire an aversion toward an organization's services

Question 26

Which of the following statements is true about shareholders?

A) They are not entitled to a distribution of the dividend income.
B) They have direct equity interest in the firms to which they fund resources.
C) They have no rights to transfer their shares to other investors.
D) They emphasize corporate responsibility over financial profitability.

Question 27

Members of a society cannot influence businesses to contribute to change.

Question 28

According to Peter Drucker, the purpose of a business must lie in ________.

A) managing power
B) increasing control
C) maximizing share value
D) supporting society

Question 29

A company's relationship with its customers has least impact on its credibility.

Question 30

________, a key stakeholder, is responsible for shaping the overall mission or goals of an organization.

A) A customer
B) An employee
C) A shareholder
D) The management

Question 31

Which of the following statements is true of employees as stakeholders of an organization?

A) Employees are always aware of competitive alternatives and are therefore not subject to inequitable treatment.
B) Employees are voluntary stakeholders and have limited bargaining power.
C) Employees hold securities and lend financial resources to firms.
D) Employees are responsible for shaping the overall mission or goal and the strategy and structure of the organization.

Question 32

Which of the following is a challenge faced by organizations in the second stage of moving toward a sustainable growth?

A) to increase efficiencies and reduce harmful environmental impact
B) to set standards for environmental regulations
C) to identify compliance as an opportunity to competitive advantage
D) to recognize the ways sustainability can create consumer value

Question 33

________ lend financial resources to firms but don't own these corporations in a meaningful sense.

A) Customers
B) Employees
C) Stockholders
D) Vendors

Question 34

Shareholders that provide corporations with financial resources are typically concerned with capital appreciation.

Question 35

Which of the following is essential in organizing corporate social responsibility as a means to attain competitive advantage?

A) translating existing business strategies and methods into policies on ethical and social issues
B) communicating corporate policies on environmental impact and human rights on a need-to-know basis
C) adopting only a top-down approach for strategic planning and development
D) integrating social, economic, and technological issues into all dimensions of a business

Question 36

Which of the following best defines the concept of shared value?

A) creating economic value in a way that also creates value for society
B) creating economic value by means of maximizing profits
C) creating economic value in a way that reduces prices
D) creating economic value by increasing the quantity of products

Question 37

The concept of outsourcing to low-wage countries is an effort to please shareholders.

Question 38

Companies committed to effective corporate social responsibilities do not extend this concept to their relationship with suppliers.

Question 39

Which of the following statements is true about the new concept of value creation?

A) It defines value based on stockholder welfares.
B) It creates a profit-centric value.
C) It defines value as only customer-perceived benefits.
D) It creates real economic and social value.

Question 40

A strong commitment toward corporate social responsibilities contributes to an organization's employee retention.

Question 41

Explain briefly about the big new idea in marketing.

Question 42

What are the stages that a company goes through to attain a sustainable competitive advantage?

Question 43

________ are key stakeholders in the marketing exchange process.

A) Stockholders
B) Employees
C) Shareholders
D) Customers

Question 44

Which of the following statements is true of members of society as stakeholders of an organization?

A) Members of society are external stakeholders, and are therefore not affected by corporate activities.
B) Collaboration between members of civil society, the private sector, and the public sector can lead to intractable and complex global problems.
C) Members of society have become powerful catalysts and can use modern communication technology to form protest alliances.
D) Members of society do not have the power to force businesses to contribute to change.

Question 45

Which of the following statements is true about the relationship between consumers and an organization's corporate social responsibilities?

A) Consumers' image of the organization and their purchasing powers are influenced by it.
B) Consumers are not considered as powerful stakeholders and the organization's poor relationship with them does not affect its credibility.
C) Consumers today view the quality of products and services as a key issue more than social responsibility.
D) Consumers are not concerned about the organization's corporate ethical behavior.