Chapter #3 (308)

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

A

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

T

Concerns about corporate social responsibility are exemplified by which of these statements? 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

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

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 of these answers are correct: Finding business opportunities that serve society and integrating concern for both financial and social performance.

D

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 these answers are correct.

D

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

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

T

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

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

Organizations founded with a core mission to create and sustain social value are called social: A) Entrepreneurships. B) Non-profits. C) Ventures. D) Capitalists.

C

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

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

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

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

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

F

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 of these answers are correct. D) Neither of these answers is correct.

C

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

F

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

A social audit is a systematic evaluation of an organization's social, ethical, and environmental performance.

T

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 these answers are correct.

D

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

The term corporate power means that in the long run, those who do not use power in ways that society considers responsible will tend to lose it.

F

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

F

The core mission of a social entrepreneur is to create and sustain social rather than economic value.

T

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

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

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

B

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

B

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

C

What is one advantage of operating as a B corporation? A) They are tax-free organizations. B) Financial reporting is not required. C) Audits are not required. D) Government certifications are frequently conferred.

D

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

F

To qualify as a B corporation, a business must be certified by a state government agency.

F

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

T

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

F

Those in support of corporate social responsibility believe the practice: 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

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

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called: A) Corporate power. B) CEO power. C) Corporate citizenship. D) Corporate media.

C

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

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

T

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

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

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 of these answers are correct: Businesses should monitor and prevent social problems in advance of their becoming major issues; and corporations should be accountable for any actions that affect people, their communities, and the environment.

D

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

T

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.

T