B-Ethics Chapter 4

By recognizing ______ rather than ______, corporations must maintain a long-term perspective rather than simply delivering quarterly earnings numbers. A. stakeholders; shareholders B. customers; investors C. community partners; shareholders D. shareholders; stakeholders

A

Corporations pursue operational efficiency through detailed monitoring of their bottom line in all of the following areas except: A. ethical activities B. financial performance C. social activities D. environmental activities

A

The definition of corporate social responsibility assumes the corporation ______. A. is operating in a competitive environment B. is committed to a retrenchment strategy C. complies with federal and state legal obligations D. is committed to a moderate growth strategy

A

Which approach to CSR argues that philanthropic initiatives are authorized without concern for the corporation's overall profitability? A. Altruistic B. Ethical C. Economic D. Strategic

A

______ are the actions of an organization that target achieving a social benefit over and above maximizing profits for its shareholders and meeting all legal obligations. A. Corporate social responsibility B. Corporate social obligation C. Corporate conscience D. Corporate citizenship

A

Organizations pursuing a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to "do the right thing" for all their stakeholders follow a(n) _______ initiative. A. altruistic CSR B. strategic CSR C. ethical CSR D. economic CSR

C

Southwest Airlines supports the Ronald McDonald Houses with donations of both dollars and employee-donated volunteer hours. This is an example of which CSR? A. Strategic B. Economic C. Altruistic D. Ethical

C

______ implies that an organization operates with an awareness of its obligation to society. A. Corporate social responsibility B. Corporate social obligation C. Corporate conscience D. Corporate citizenship

C

The modern social contract approach argues that since a corporation depends on society for its existence and continued growth, there is an obligation for that corporation to meet the demands of society rather than the demands of a targeted group of customers only.

True

Corporate social responsibility refers to the actions of an organization that target the achievement of a social benefit over and above maximizing profits for its shareholders and meeting all of its legal obligations (t/f)

true

Corporations merely experimenting with CSR initiatives run the risk of creating adverse results and ending up worse than when they started.

true

Many corporations are now reporting a triple bottom line in their annual reports that includes updates on their social and environmental activities in addition to their bottom line financial performance.

true

As far back as 1969, Henry Ford recognized that corporations operate in an isolated environment.

False

In the last 10 years, one-third of the planet's resources have been consumed.

False

Lay-offs reduce corporation costs and only affect the laid off employees.

False

Organizations that demonstrate a "conscience" beyond profit generation inevitably attract the same amount of attention as organizations that are bottom line-driven.

False

The Greenhouse Gas Association (GHGA) promotes the standardization of carbon trading on a global scale.

False

The social contract approach is a very simplistic model that argues that the corporation only has an obligation to itself.

False

There are four distinctive types of CSR: economic, ethical, altruistic, and strategic.

False

What are the five major trends behind CSR phenomenon?

transparency, knowledge, sustainability, globalization, the failure of the public sector

adapting annual reports that provide social and environmental updates alongside their primary bottom-line financial performance

triple bottom line approach

An organization runs the smallest risk of being perceived as using self-serving behavior when it uses strategic CSR.

False

Economic CSR is the purest or most legitimate type of CSR.

False

the perspective that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers

Instrumental Approach

Transparency is a major trend behind the CSR phenomenon.

True

The triple bottom line is an effective means of reporting an organization's efforts only if their activities are measurable.

?

Many, if not most, developing countries are governed by ______ regimes. A. dysfunctional B. effective C. efficient D. controlling

A

the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations

Corporate Social Responsibility

In a _______, a corporate executive is an employee of the owners of the business. A. capitalist, public property system B. socialist, state-owned system C. laissez-faire, public property system D. free-enterprise, private property system

D

The greatest period of reform in the U.S. produced all of the following, except: A. Unemployment laws B. The minimum wage C. Child labor laws D. Sexual harassment laws

D

the perspective that a corporation has an obligation to society over and above the expectations of its shareholders

Social Contract Approach

Altruistic CSR takes a philanthropic approach by underwriting specific initiatives to give back to the company's local community or to designated national or international programs.

True

Corporate citizenship is an alternative term for corporate social responsibility, implying that the organization is a citizen responsible for meeting all of its obligations.

True

Friedman's view of the corporate world supports the rights of individuals to make money with their investments.

True

From an ethical perspective, Friedman argues that it would be unethical for a corporation to do anything other than deliver profits for which investors have entrusted it with their funds in the purchase of shares in the corporation.

True

In contrast to the alleged immorality of altruistic CSR, critics argue that strategic CSR is ethically commendable since these initiatives benefit stakeholders while meeting fiduciary obligations to the company's shareholders.

True

It is unfair to accuse companies with CSR initiatives of abandoning their moral responsibility to their stakeholders.

True

It may be easy to make a public commitment to CSR, but actually delivering on that commitment to the satisfaction of your customers can be much harder to achieve.

True

Many organizations find it difficult to make the transition from CSR as a theoretical concept to CSR as an operational policy.

True

One of the newest and increasingly questionable practices in the world of CSR is the notion of making your operations "carbon neutral."

True

philanthropic approach to CSR in which organizations underwrite specific initiatives to give back to the company's local community or to designated national or international programs

altruistic CSR

Corporate ________________________ implies that the organization is responsible for meeting all of its obligations.

citizenship

alternative term for CSR, implying that the organization is a responsible citizen in meeting all its obligations

corporate citizenship

alternative term for CSR, implying that the organization is run with awareness of its obligations to society

corporate conscience

purest or most legitimate types of CSR in which organizations pursue a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to do the right thing for all their stakeholders

ethical CSR

CSR initiatives haven been shown to generate immediate financial gains to the organization after implementation.

false

Corporate conscience is an antonym for corporate social responsibility, implying that the organization is not a citizen responsible for meeting all of its obligations.

false

In an economic approach to corporate management a corporation's only obligation is to maximize profits for its shareholders through the provision of goods and services that meet the needs of its customers.

false

philanthropic approach to CSR in which organizations target programs that will generate the most positive publicity or goodwill for the organization but that run the greatest risk of being perceived as self-serving behavior on the part of the organization

strategic CSR

Which is the most legitimate type of CSR? A. Altruistic B. Ethical C. Economic D. Strategic

B

Who stated that it would be unethical for a corporation to do anything other than deliver profits for its investors? A. Henry Ford II B. Milton Friedman C. Steve Jobs D. Allen Greenspan

B

. All of the following are major trends behind the CSR phenomenon except: A. sustainability B. globalization C. the failure of the private sector D. knowledge

C

Corporations that experiment with CSR initiatives run the risk of creating all of the following results, except: A. employees feel that they are working for an insincere organization B. the public sees the initiative as little more than a token action C. shareholders feel that their organization will deliver bigger profits with their initiatives D. the organization does not see much benefit of CSR and therefore sees no need to develop the concept

C

If an organization commits to CSR initiatives, then there must be ______. A. short-term commitments B. both short and long-term commitments C. commitments perceived as real by customers D. real commitments

C

In November 2006, the Deutsche Bank teamed up with more than a dozen investment banks and five carbon-trading organizations in Europe to create the __________. A. Carbon Counter Association (CCA) B. Greenhouse Gas Association (GHGA) C. European Carbon Investors and Services Association (ECIS) D. Clean Air Association (CAA)

C

Many CSR initiatives ______. A. generate immediate financial gains to the organization B. do not generate long-term financial gains to the organization C. do not generate immediate financial gains to the organization D. generate enough financial gains for the organization to break even

C

Many companies adopted a policy of _______ only after the surprising public response to issues companies did not previously consider to be part of their business responsibilities. A. social conscience B. instrumental citizenship C. corporate social responsibility D. social contracts

C

As early as 1969, it was recognized that corporations ______. A. actions do not impact their external environment B. do not operate in an isolated environment C. can actually increase their profits by being socially responsible D. have a responsibility to shareholders before stakeholders

B

In the last 30 years alone, we have consumed ______ of the planet's resources. A. 1/4 B. 1/3 C. 1/2 D. 4/5

B

Which approach to corporate management is considered simplistic because it assumes that there are no external consequences to the actions of the corporation? A. Shareholder approach B. Social contract approach C. Economic approach D. Instrumental approach

B

Which approach to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders? A. Shareholder approach B. Social contract approach C. Economic approach D. Instrumental approach

D

Which of the following is one of the newest and increasingly questionable practices in the world of CSR? A. Risk management and emergency preparedness B. Water conservation C. Greenhouse gas conscience D. "Carbon neutral" operations

D

______ CSR encompasses philanthropic activities targeted toward programs that generate the most positive publicity or goodwill for the organization. A. Altruistic B. Ethical C. Economic D. Strategic

D

______ implies that the organization is a citizen, responsible for meeting all of its obligations. A. Corporate ethics B. Ethical obligation C. Corporate conscience D. Corporate citizenship

D