MGMT 3211 Chapter 3

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

the view that holds it is in a company's self-interest in the long run to provide true value to its stakeholder

bottom of the pyramid

the world's poor; also refers to creative business actions to develop products and services that meet the needs of the world's poor

As a response to the conflict between long- and short-term profit making, an enlightened self-interest point of view would be the least useful and practical approach.

False

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

False

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

False

Reports have shown that 70 percent of consumers said they would buy a product even if they did not like the company's reputation behind the product.

False

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

False

An argument against corporate social responsibility is that it imposes unequal costs among competitors.

True

Businesses that comply with laws and public policies are meeting a minimum level of social responsibility expected by the public.

True

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

True

Given the immeasurable power in the hands of the leaders of large, global corporations, social responsibility has become a worldwide expectation.

True

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

True

In the United States, the idea of corporate social responsibility appeared around the start of the 20th century.

True

Laws and regulations help create a level playing field for businesses that compete against one another.

True

One of the most appealing arguments in favor of corporate social responsibility for business supporters is that voluntary social acts may head off increased government regulation.

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

social enterprise

a business that adopts social benefit as its core mission and uses its resources to improve human and environmental well-being

B corporation

a business that is certified by an external organization to verify the blending of its social objectives with its financial goals

social entrepreneur

an individual driven to create and sustain social value rather than solely economic value in business

microfinance

occurs when financial organizations provide loans to low-income clients or a community of borrowers who traditionally lack access to banking or related services

iron law of responsibility

the belief that those who do not use their power in ways that society considers responsible will tend to lose their power in the long run

reputation

the desirable or undesirable qualities associated with an organization or its actors that may influence the organization's relationships with its stakeholders

corporate social responsibility

the idea that businesses should act in a way that enhances society and their stakeholders and be held accountable for any of its actions that affect people, their communities, and their environment

social entrepreneurship

the identification of a social need and using entrepreneurial skills to address this need

corporate power

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