Question 1

According to the textbook, how does globalization affect the flow of information?

Accepted Answer

A)  Because of globalization, information is communicated more effectively.
B)  Globalization allows companies to operate in many countries.
C)  Globalization provides more people access to newspapers.
D)  Globalization does not affect the flow of information. A

Question 2

Sustainability efforts of a firm deal with ______.

Accepted Answer

A)  labor issues
B)  environmental issues
C)  long-term profitability
D)  legal compliance B

Question 3

Which of the following does the textbook NOT provide as an example of a corporation's sustainability efforts?

Accepted Answer

A)  Sea World's program to nurse sick animals back to health
B)  General Electric's Ecoimagination program
C)  Unilever's firm-wide sustainable living program
D)  Toyota's hybrid car A

Question 4

Which of the following is an example of Adam Smith's view of the business world?

Accepted Answer

A)  A small local store treats its workers well to preserve the goodwill of the community.
B)  A U.S.-based manufacturing company opens a plant in a developing country to save labor costs.
C)  A multinational corporation ignores its environmental issues in Asia because its consumers are in Europe.
D)  A business fails to pay its workers adequately because, despite complaints from the workers, lower pay is more profitable.

Question 5

CSR serves as "brand insurance" by ______.

Accepted Answer

A)  enabling the firm to develop credibility among stakeholders
B)  creating a great public relations campaign to extol the firm's CSR efforts
C)  enabling the firm to grow internationally
D)  expanding current products and services to reach the poor

Question 6

The Twitter Revolution played an important part in which of the following?

Accepted Answer

A)  Tiananmen Square protests in China
B)  Tunisia's Jasmine Revolution
C)  bus boycotts in the American South
D)  Russian Revolution

Question 7

What are the two different types of social technologies and why are they important to businesses?

Accepted Answer

The answer of What are the two different types of...

Question 8

What service would be known as a "digital philanthropy?"

Accepted Answer

A)  PayPal
B)  Wikipedia
C)  Philanthropy.com
D)  GoFundMe

Question 9

According to the text, brands are ______.

Accepted Answer

A)  a focal point of corporate success
B)  less important today than in the past
C)  not as important in BRIC countries
D)  becoming less important due to globalization

Question 10

Because of globalization, firms must meet varying cultural standards of what is acceptable.

Accepted Answer

A) True 
 B)False

Question 11

The world's population is becoming not only larger but also ______.

Accepted Answer

A)  more prone to communicable diseases
B)  more dispersed throughout rural areas
C)  more dependent on global sources of freshwater
D)  more concentrated in urban areas

Question 12

Discrimination based on gender is generally prohibited in developed societies.Cultural relativism, however, may require companies to take different approaches to gender equality in countries where women are segregated from male workers.How should a company be practicing CSR deal with such situations?

Accepted Answer

The answer of Discrimination based on gender is generally prohibited...

Question 13

How does strategic CSR seek evolution of the current economic model?

Accepted Answer

A)  It seeks to reform the current system so that value is created broadly by integrating a CSR perspective into firm strategy and throughout operations.
B)  It seeks to create a new economic system that does not have the flaws of the current model.
C)  It seeks a piecemeal fix of the current economic model by addressing small issues over a longer period of time.
D)  It seeks to develop the current system through government regulation of firm practices.

Question 14

According to the textbook, why is corporate social responsibility increasingly crucial to business success?

Accepted Answer

A)  CSR is not crucial to business success; it is just a recommendation for companies.
B)  CSR initiatives ensure consumers spend more money at the business.
C)  Businesses cannot be profitable without CSR initiatives.
D)  It provides a mission and strategy around which a firm's multiple stakeholders can rally.

Question 15

Social media is allowing consumers to ______.

Accepted Answer

A)  completely understand the CSR of companies
B)  interact with firms in real time in ways that shape their purchase decisions
C)  select the most environmentally friendly products
D)  try more products virtually before purchasing

Question 16

In the Internet Age, the problem is no longer an individual lacking access to sufficient information, but in having access to ______.

Accepted Answer

A)  too much disinformation
B)  sufficient overall information
C)  international information
D)  enough useful information

Question 17

What is the significance of the BRIC and CIVETS economies?

Accepted Answer

A)  These economies will have the most opportunity for profitability in 5 years.
B)  These economies have the most lax regulations and, therefore, are the easiest markets for firms to enter.
C)  These economies will allow more and more consumers to join the middle class.
D)  These economies are not significant for firms.

Question 18

The best way for a company to protect its brand is ______.

Accepted Answer

A)  to hire the best public relations firm it can afford
B)  to integrate a CSR perspective throughout operations
C)  to limit its advertising budget
D)  nonexistent; there is really no way a company can protect its brand

Question 19

According to the textbook, why do corporate social responsibility initiatives tend to gain more traction in affluent societies?

Accepted Answer

A)  Consumers in developing countries do not care about CSR issues.
B)  Consumers in developed societies expect more from the companies whose products they buy.
C)  Corporations in affluent societies can spend more money on CSR initiatives.
D)  Businesses in developing countries do not have competition and, thus, do not need to have CSR initiatives.

Question 20

IKEA faced negative publicity in its home country when it ______.

Accepted Answer

A)  included religious leaders in the catalog it distributed throughout Europe
B)  airbrushed women out of photos in the Saudi version of its catalog
C)  included women in photos in catalogs it distributed throughout the Middle East
D)  created a website highlighting the importance of sustainability practices

Exam 2: The Driving Forces of CSR