Chapter 2
The concept of business responsibility based on using laws to constrain business behavior is referred to as the A. legal model B. owner control C. stakeholder approach D. stakeholder model
A
The narrow view of corporate citizenship focuses solely on A. corporate community relations B. Corporate Social Responsiveness C. funding sources D. global competitiveness
A
The traditional concept of business responsibility in the United States is based on A. classical economic model B. legal model C. stakeholder approach D. stakeholder model
A
The modern era of corporate social responsibility (from the 1950s to today) A. emphasizes specific issues B. it is in business's long range interest to be socially responsible. C. obey the preferred laws D. philanthropy
A
A survey done by Walker Information shows that the public believes that CSR does not factor into a company's reputation at all. True False
False
In order to operate with a true stakeholder perspective, firms must accept the multiple bottom line view. True False
True
Proponents of the concept of corporate social responsiveness believe that the focus of corporate social responsibility on accountability or obligation is not dynamic enough to describe business's willingness and activity to respond to social demands. True False
True
All of the following are arguments commonly made against corporate social responsibility except A. business did not create today's social problems, so it should not be expected to solve them. B. funding sources C. it is in business's long range interest to be socially responsible. D. obey the preferred laws
A
Corporate social responsibility emphasizes A. action and activity B. obligation and accountability C. outcomes and results D. paternalism
B
corporate social performance emphasizes A. economic B. ethical C. outcomes and results D. the marketplace
C
The classical view of economics holds that a society can best determine its needs and wants through A. funding sources B. owner control C. social D. the marketplace
D
Carroll's Corporate Social Performance Model helps managers understand that social responsibility is separate and distinct from financial performance. True False
True
Corporate social responsiveness is focused on the action phase of management response to social demands. True False
True
Research has indicated that improvements in corporate social performance are associated with improved financial results. True False
True
According to the Business Case for CSR, a reason companies are becoming more socially responsible is all of the following except A. Access to capital B. global competitiveness C. stakeholder approach D. sustainability
A
Financial returns from socially conscious investment funds are A. competitive with returns from other investments B. socially responsible firms are more financially profitable C. States that there is an interactive relationship among social performance, financial performance, and corporate reputation. D. views social responsibility as driven by the firm's financial performance.
A
The part of corporate social responsibility that focuses on fair prices and profits is A. economic B. ethical C. legal D. social
A
Which entity publishes annual "World's Most Admired Companies" rankings? A. Fortune Magazine B. limited C. stakeholder approach D. sustainability
A
Benefits to companies of good corporate citizenship include all of the following except A. competitive with returns from other investments B. fewer government regulations C. socially responsible firms are more financially profitable D. views social responsibility as driven by the firm's financial performance.
B
The part of corporate social responsibility that focuses on activities and practices that are expected by society, but not codified into law, is A. economic B. ethical C. legal D. social
B
is depicted as an action- oriented variant of CSR A. corporate community relations B. Corporate Social Responsiveness C. funding sources D. global competitiveness
B
The view of corporate citizenship that embraces all that is implied in the concepts of social responsibility, responsiveness, and performance is the view. A. corporate community relations B. Corporate Social Responsiveness C. funding sources D. limited
D
The Triple Bottom Line encompasses all of the following spheres of performance except A. philanthropic B. stakeholder approach C. stakeholder model D. sustainability
A
Social screening is the mechanism by which socially conscious investors choose their investment advisors. True False
True
The CSR Pyramid is a stakeholder model--that is, each of its components addresses different stakeholders. True False
True
The company town, in which a major employer builds homes and commercial buildings, and provides the goods and services needed by its employees, is an example of paternalistic social responsibility. True False
True
Social responsible investing is a very new concept, originating in the early 1990s. True False
False
In practical terms, the socially responsible firm mw;t be involved in philanthropy, as society expects it. True False
False
The marketplace in the classical view of economics, while being a good allocator of goods and services, does not do a good job of ensuring that business always acts fairly and ethically. True False
True
An argument for corporate social responsibility is that it helps business compete in the global economy. True False
False
Corporate social performance emphasizes the financial results of what the firm hopes to accomplish. True False
False
Friedman never proposed that businesses had any obligation to act ethically. True False
False
In Carroll's four-part definition of corporate social responsibility, ethical responsibilities are required of business only by society, and not by businesses themselves. True False
False
Corporate Social Responsiveness emphasizes A. paternalism B. owner control C. outcomes and results D. action and activity
D
The Triple Bottom Line concept focuses on economic, social, and environmental performance, the key elements of A. action and activity B. outcomes and results C. philanthropic D. sustainability
D
The argument against CSR focuses on the consequence of the requirement that business must internalize costs that it formerly passed on to society in the form of dirty air and unsafe products, the costs of which might necessitate raising prices. A. corporate community relations B. Corporate Social Responsiveness C. funding sources D. global competitiveness
D
The concept of business responsibility that is based on concern for the various groups that are affected by a business is known as the A. legal model B. owner control C. stakeholder approach D. stakeholder model
D
A society more satisfied with corporate social responsiveness, performance, and citizenship will invariably have reduced criticism of business. True False
True
Which entity publishes "The 100 Best Companies to Work For"? A. Fortune Magazine B. limited C. stakeholder approach D. sustainability
A
Which of the following is not a characteristic of a socially responsible company? A. global competitiveness B. Makes above average financial returns C. providing answers to specific social problems D. States that there is an interactive relationship among social performance, financial performance, and corporate reputation.
B
Which of the following is not an argument commonly used in favor of corporate social responsibility? A. Access to capital B. Business is best equipped to handle social problems C. makes above average financial returns D. providing answers to specific social problems
B
Which of the following practices is not a modification of the classical economic model? A. legal B. owner control C. paternalism D. philanthropy
B
Carroll's corporate social performance model can be used in all of the ways listed below except A. global competitiveness B. Makes above average financial returns C. providing answers to specific social problems D. States that there is an interactive relationship among social performance, financial performance, and corporate reputation.
C
The book, The Civil Corporation, identifies four ways in which business firms respond to social pressures. Which of the following is not one of those? A. Access to capital B. global competitiveness C. stakeholder approach D. sustainability
C
The fact that business leaders in the late 19th century felt they had to show that large corporations were a force for social good is an example of A. legal B. owner control C. paternalism D. philanthropy
C
The first and primary argument for corporate social responsibility is A. business did not create today's social problems, so it should not be expected to solve them. B. funding sources C. it is in business's long range interest to be socially responsible. D. obey the preferred laws
C
The part of corporate social responsibility that focuses on fulfilling the social contract by following the law is A. economic B. ethical C. legal D. social
C
The relationship between corporate social performance and financial performance is viewed from three different perspectives. The most popular view is based on the belief that A. competitive with returns from other investments B. fewer government regulations C. socially responsible firms are more financially profitable D. views social responsibility as driven by the firm's financial performance.
C
The relationship between corporate social performance and financial performance is viewed from three different perspectives. The symbiotic view A. competitive with returns from other investments B. socially responsible firms are more financially profitable C. States that there is an interactive relationship among social performance, financial performance, and corporate reputation. C. views social responsibility as driven by the firm's financial performance.
C
Which of the following is not a dimension of Carroll's corporate social performance model? A. corporate community relations B. Corporate Social Responsiveness C. funding sources D. global competitiveness
C
The early definition of corporate social responsibility was A. emphasizes specific issues B. it is in business's long range interest to be socially responsible. C. obligation and accountability D. seriously considering the impact of the company's actions on society.
D
The most efficient use of corporate wealth to benefit the public is though contributions to charity and other worthy causes which is called A. Corporate Social Responsiveness B. global competitiveness C. paternalism D. philanthropy
D
The part of corporate social responsibility that focuses on business's voluntary activities which are not normally expected of a firm is A. legal B. owner control C. paternalism D. philanthropic
D
The portrays the concurrent fulfillment of the firm's economic, legal, ethical and philanthropic responsibilities A. Business is best equipped to handle social problems. B. Corporate Social Responsiveness C. global competitiveness D. Pyramid of Corporate Social Responsibility
D
The corporate social performance concept has not yet spread to the business community True False
False
The relationship between corporate social performance and financial performance is viewed from three different perspectives. The perspective that views social responsibility as a "fair weather" concept A. competitive with returns from other investments B. fewer government regulations C. socially responsible firms are more financially profitable D. views social responsibility as driven by the firm's financial performance.
D
The socially responsible firm should strive to do all of the following EXCEPT A. business did not create today's social problems, so it should not be expected to solve them. B. funding sources C. it is in business's long range interest to be socially responsible. D. obey the preferred laws
D
Which of the following is not one of the responsibilities in Carroll's four-part definition of corporate social responsibility? A. economic B. ethical C. legal D. social
D
One of the biggest advances in corporate social performance is that all agree that performance criteria need only be responsive and not anticipatory. True False
False
Philanthropy is the term by Adam Smith in Wealth of Nations to describe the operation of self interest resulting in the good of society. True False
False