Ch. 3

The role that most influenced a firm's corporate social responsibility program, according to the BSR survey, was the _____.

CEO

What is the primary purpose for government requiring an independent certification of B corporations?

So the firm proves they are socially responsible, not just making a claim.

When a business applies resources to social programs, some argue that they risk lowering which business indicators? (Check all that apply.)

Their economic efficiency Company profits

The iron law of responsibility is defined as _____.

those who do not use power in a socially responsible way will tend to lose power

Match the stage of global corporate citizenship with its correct strategic intent listed: 1. Elementary 2. Engaged 3. Innovative 4. Integrative 5. Transforming

1. Legal compliance 2. License to operate 3. Business case 4. Value proposition 5. market creation/social change

Place the phases of corporate social responsibility in chronological order, starting with the earliest phase.

1. corp. social stewardship 2. corp. social responsiveness 3. corp/bus. ethics 4. corp/global citizenship

Place the five stages of global corporate citizenship in their correct order. (Place Stage 1 on top.) Instructions

1. elementary 2. engaged 3. innovated 4. integrated 5. transforming

Match term: 1. Social stewardship 2. social responsiveness 3. ethics 4. citizenship

1. public relations 2. political lobbying 3. CEO leadership ethics 4. Sustainability audits/reports

A for-profit business model that blends social and financial goals for the purpose of solving social problems is called a(n)

B corp

Identify the difference(s) between a B corporation and a benefit corporation. (Check all that apply.)

B corporations are certified entities, but benefit corporations are incorporated. B corporations must achieve a minimum performance score to retain their status, but benefit corporations self-report their progress.

What is the current business trend in managing social, economic and legal responsibilities?

Balancing the need to meet all social, economic and legal challenges

How did the United States initially attempt to restrain corporate power? (Check all that apply.)

Banking regulations Antitrust legislation Consumer protection laws

Which term indicates that harm to society should be corrected?

CSR

How does corporate social responsibility (CSR) differ from corporate citizenship?

Corporate citizenship means taking social actions, and CSR obligates firms to be socially responsible.

Visionary CEOs clearly see citizenship as an opportunity to create which benefits for their organizations? (Check all that apply.)

Create value for the firm Gain a competitive advantage

What are some advantages of having a good corporate reputation? (Check all that apply.)

Increased attractiveness to employees Repeat purchases by loyal customers

Major corporations influence the community in what way(s)? (Check all that apply.)

Job creation, Standard of living, Tax base

The Global Reporting Initiative (GRI) Guidelines are characterized by which of these statements? (Check all that apply.)

Many global business representatives work together to develop the Guidelines. The Guidelines provide common metrics for firms to compare their performance with other firms.

Why is addressing economic performance no longer enough for business?

Many investors link economic performance to social issues.

Which social issue did Dan Price address by lowering his own yearly salary to $70,000, according to the case Corporate Social Responsibility at Gravity Payments?

Massive income inequality

What term is used to define the organizations created by social entrepreneurs?

Social ventures

Which statement(s) below are accurate regarding B corporation certification? (Check all that apply.)

They must meet independent, social and environmental performance standards. Performance is evaluated by the organization's impact on the community, employees, consumers, and the environment.

An example of a firm taking action that abuses the iron law of responsibility is _____.

discouraging union membership

The negative effect(s) of corporate power can include _____. (Check all that apply.)

price-fixing political manipulation employment reduction

A major trend in corporate social reporting is _____.

publishing a single integrated report that combines legally required financial data with social and environmental results

Dan Price annually donated about what percentage of company profits to charity, according to the case Corporate Social Responsibility at Gravity Payments?

10%

What percentage of the 4,900 large and mid-cap firms surveyed issued CSR reports, according to the KPMG survey in 2017?

75%

Why would businesses seek to discourage government regulation through acts of corporate social responsibility?

Absence of regulation provides businesses with increased freedom in their decision making.

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

Corporate power

The positive effect(s) of corporate power can include _____. (Check all that apply.)

Economic opportunities, helpful products, useful technologies

A social audit is a systematic evaluation of an organization's performance related to which business goal(s)? (Check all that apply.)

Environmental Ethical Social

What is the current primary motivator for most companies to publish social responsibility reports, according to one study?

Ethical concerns

True or false: According to the Global Reporting Initiative (GRI), when companies consider sustainability, they must consider economic, environmental, social, and governance areas of their performance and impacts.

True

In the United States, when did the idea of corporate social responsibility first begin?

Twentieth century

A recent BSR survey found that the goal of most corporate citizenship managers is to integrate corporate social responsibility with a company's _____. (Check all that apply.)

Values, operations, Culture

Companies that are guided by enlightened self-interest tend to have what kind of interactions with their stakeholders? (Check all that apply.)

Working closely with government regulators Being more open to stakeholder expectations Cooperating with legislators

The concept of providing stakeholders value that results in a firm's long run self-interest is called _____.

enlightened self-interest

The benefit(s) of publishing social audit performance results include(s) _____. (Check all that apply.)

improving the firm's overall performance identifying stakeholder needs helping businesses gauge social progress

Which type of corporate social reporting has taken off in Japan, Brazil, Mexico, and Spain, according to the KPMG survey in 2017?

integrated reporting