Chapter 3 tb questions

When a company publishes the results of a social audit they are meeting the demands of local governments' taxation policies.

False

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

True

In the first stage of corporate citizenship, the elementary stage, managers are uninterested and uninvolved with social issues.

True

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.

True

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.

False

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

False

Global corporate citizenship refers to putting an organization's commitment to social and environmental responsibility into practice locally.

False

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

False

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

True

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

False

Positive reputation can be valued as an intangible corporate: A. Asset. B. Liability. C. Charity. D. Expense.

A. Asset.

The costs of corporate social responsibility may ultimately be passed on to the: A. Supplier through discounts. B. Consumer through high prices. C. Investor through stock splits. D. Taxpayers by the government.

B. Consumer through high prices.

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.

B. Create jobs, influencing the lives of employees.

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.

C. A company breaking past records by maximizing quarterly profits.

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called: A. Balanced Corporation. B. B Lab. C. B Corporation. D. CSR Corporation.

C. B Corporation.

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.

A. A company trying its best to operate in a way which will help local students get education and jobs.

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.

A. In the long run, those who do not use power responsibly will lose it.

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.

A. Religious/ethnic beliefs.

Which of the following is an argument against corporate social responsibility? A. Requires skills businesses may lack. B. Creates an imbalance between corporate power and its economic responsibility. C. Improves business value and reputation. D. A majority of stockholders are against it.

A. Requires skills businesses may lack.

Good corporate citizens: A. Strive to conduct all business dealings in an ethical manner. B. Make a concerted effort to balance the needs of all stakeholders. C. Work to protect the environment. D. All of the above.

All above

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.

B. Discourages government regulation.

The issue of reactive management policies occurs in which stage of global corporate citizenship? A. Transforming. B. Engaged. C. Integrated. D. Innovative.

B. Engaged.

The most significant motivator of corporate social reporting is: A. Government reporting requirements. B. Ethical concerns. C. Financial concerns. D. Employee demand.

B. Ethical concerns.

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.

B. Policy instruments of the Corporate Social Stewardship phase.

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 B. D. None of the above.

C. Both A and B.

Some companies have created a department of corporate citizenship to: A. Adopt the United Nations' Global Compact Principles. B. Decentralize under common leadership wide-ranging corporate citizenship functions. C. Centralize under common leadership wide-ranging corporate citizenship functions. D. Narrow the job of the public relations office.

C. Centralize under common leadership wide-ranging corporate citizenship functions.

This inter-American organization (North and South America) was created to unite organizations focusing on corporate social responsibility from Canada to Chile. A. Business for Social Responsibility. B. Canadian Business for Social Responsibility. C. Forum Empresa. D. Foundacion Empresay Sociedad.

C. Forum Empresa.

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally it is called: A. Corporate Social Responsibility. B. Global Sustainability. C. Global Corporate Citizenship. D. Community Investing.

C. Global Corporate Citizenship.

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.

C. May sacrifice short-term profits.

Which of these is not an objective of the Global Reporting Initiative (GRI)? A. Combining long-term profitability with ethical goals, social justice, and environmental care. B. Measuring social performance across companies. C. Providing tax incentives for global corporate citizens. D. Reflecting the interests of business, labor, civil society, and financial markets.

C. Providing tax incentives for global corporate citizens.

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.

C. The capability of corporations to influence government, the economy, and society, based on their organizational resources.

Managers responding to the needs of the local education system as a normal or routine aspect of its operations is an example of an organization in the: A. Innovative stage. B. Integrated stage. C. Transforming stage. D. Engaged stage.

C. Transforming stage.

Global social audit standards concentrate on: A. Internally focused economic benefits for the firm. B. Externally focused social benefits for the environment. C. Externally focused social benefits for key stakeholders. D. All of the above.

D. All of the above.

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.

D. All of the above.

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. 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 B.

D. Both A and C, but not B.

Companies demonstrate global corporate citizenship by: A. Building reactive stakeholder partnerships. B. Finding business opportunities that serve society. C. Integrating concern for both financial and social performance. D. Both B and C, but not A.

D. Both B and C, but not A.

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.

D. Corporate/Global Citizenship.

BSR (formerly Business for Social Responsibility) helps its 300 member companies: A. Lobby Congress for socially responsible legislation. B. Discover tax shelters for social program expenditures. C. Conduct social audits. D. Develop sustainable business strategies.

D. Develop sustainable business strategies.

Business leaders, like automaker Henry Ford developed these programs to support the recreational and health needs of their employees. A. Corporate social responsibility programs. B. Corporate citizenship programs. C. Social networking programs. D. Paternalistic programs.

D. Paternalistic programs.

According to Barlow v. A.P. Smith Manufacturing: A. The laws prohibited charitable contributions, at that time. 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 an investment in the future, thus an allowable expense.

D. Socially responsible actions are an investment in the future, thus an allowable expense.

Corporate citizenship refers to a set of beliefs stating that socially responsible behavior is a good idea.

False