Comm. CSR Midterm

Thomas Friedman wrote that we are in the era of ______.

Globalization 3.0

What service would be known as a "digital philanthropy?"

GoFundMe

Recent research has indicated that ______.

people are more honest in the morning than in the afternoon

For a hair care salon shop that is a privately owned business, which of the following is NOT likely to be a stakeholder?

the New York Stock Exchange (NYSE)

Being able to prioritize among stakeholder groups is important because ______.

the interests of different stakeholder groups often conflict

When responding to stakeholder concerns, the ability of the firm to maximize opportunity and minimize risk is known as the ______.

CSR target

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to do no harm to its stakeholders within its operating environment.

Ethical responsibility

Which of the following is NOT an objective outcome of corporate social responsibility?

A firm focuses on the fluid process by which value is created for multiple stakeholders

The law allowed the boards of directors of Vermont firms to consider factors in addition to shareholder value when deciding whether to accept a takeover offer is known as the ______.

Ben & Jerry's Law

According to the textbook, corporate social responsibility is strongest when ______.

business leaders view their role as stewards of resources owned by others

The "Stop BEZOS" Act proposed by Senators Bernie Sanders and Elizabeth Warren sought to force companies to ______.

ensure companies paid their fair share of taxes

Which of the following is NOT an example of a company's sustainability efforts?

ensuring products come from fair labor areas

Energy companies and industrial manufacturers set up the United States Climate Action Partnership (USCAP), which supports carbon limits and trading. This is an illustration of which argument for corporate social responsibility?

rational

James Rogers (the CEO of Duke Energy) once stated: "If you are not at the table when these negotiations are going on, you're going to be on the menu." This illustrates what argument for CSR?

rational

In examining how affluence drives CSR, it is important to know that the concept of being better off is ______.

relative

In the 1790s, consumer boycotts occurred in reactions to which of the following?

slave-harvested sugar

A(n) ______ in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization's objectives.

stakeholder

Which of the following is NOT an example of societal stakeholders?

employees

The ______ argument for CSR assumes that firms act most effectively when they are incentivized to do so.

economic

In the United States, the idea of the benefit corporation was established in which year?

2010

According to the textbook, how does globalization affect the flow of information?

Because of globalization, information is communicated more effectively.

How might stakeholders living in affluent societies impose their values on firms' overseas operations?

- A group of consumers protest the environmental affects of an oil company's operations in South America. - U.S.-based employees of a coffee company strike because of poor labor conditions in the company's overseas coffee fields. - The U.S. government passes a Transparency in Supply Chains Act to ensure firms are using fair labor practices throughout the world.

The United Nations' Principles of Responsible Management Education (PRME) include which of the following?

- to interact with managers of business corporations to extend our knowledge of their challenges in meeting social and environmental responsibilities - to develop the capabilities of students to work for an inclusive and sustainable economy - to facilitate and support dialog with multiple stakeholders on critical issues related to global social responsibility and sustainability

Who is most likely the author of the following quote? "It is salutary to ask about any organization, 'If it did not exist, would we invent it?' 'Only if it could do something better or more useful than anyone else' would have to be the answer, and profit would be the means to that larger end."

Charles Handy

The decision in ______ allowed corporations greater freedom to finance political ads/campaigns.

Citizens United

The ______ is typically recognized as the earliest modern business corporation.

East India Company

______ stakeholders are external to the firm.

Economic and societal

Corporate social responsibility only influences some aspects of a company's operations.

False

Since the early 19th century, managers have consistently paid attention to the interests of all stakeholders.

False

Social media is irrelevant to companies because they share information through other means.

False

The earth's resources continue to replenish themselves at the same rates as the human population grows.

False

The moral argument for corporate social responsibility focuses on adopting the path of least resistance with regard to issues of concern that make common and business sense.

False

Value creation is the same for every business and every stakeholder

False

Charles Handy argued for which of the following ideas?

Firms should seek societal goals beyond making profits.

What is the CNN test?

How will this be viewed by watchers of CNN when broadcast around the world?

What characterizes the current era of globalization?

Individuals are the main agents of globalization.

How does affluence lead to more rapidly shifting public attention on issues of concern?

It leads to a more engaged civil society.

According to the textbook, why is corporate social responsibility increasingly crucial to business success?

It provides a mission and strategy around which a firm's multiple stakeholders can rally.

How does strategic CSR seek evolution of the current economic model?

It seeks to reform the current system so that value is created broadly by integrating a CSR perspective into firm strategy and throughout operations.

In 2012, ______ became the first company in California to become a benefit corporation.

Patagonia

A corporation's ______ is its responsibilities and obligations as determined by corporate law and founding corporate charters.

Public purpose

Which of the following does the textbook NOT provide as an example of a corporation's sustainability efforts?

Sea World's program to nurse sick animals back to health

Which publication published Milton Friedman's article "The Responsibility of Business to Increase Its Profits?"

The NY times

Why does the textbook's author not consider the natural environment a stakeholder?

The natural environment lacks agency.

What is the significance of the BRIC and CIVETS economies?

These economies will allow more and more consumers to join the middle class.

Why do young children not meet the textbook author's definition of stakeholder?

They do not have capacity to affect the firm's operations.

A firm continuing to publicly deny the existence of global warming is in defensive mode.

True

By adopting a rational argument for corporate social responsibility, firms seek to interpret evolving societal values and stakeholder expectations, and they act to avoid future sanctions.

True

One definition of corporate social responsibility is "a responsibility among firms to meet the needs of their stakeholders and a responsibility among stakeholders to hold firms to account for their actions."

True

Social responsibility is more than a set of abstract standards.

True

The Internet and globalization are bridging the wealth gap between affluent and non-affluent people because less affluent people now have more access to information.

True

The U.S. Supreme Court has held that corporations have the right to donate to political campaigns.

True

The United Nations' Principles of Responsible Management Education (PRME) are important because ______.

a growing awareness and acceptance of CSR is a necessary component of meaningful change

A central part of the moral argument for corporate social responsibility comes from the thinking that ______.

a large part of business success comes as much from actions that are congruent with societal values and norms as from factors internal to the company

Staff at Google compelled the company to back away from a Pentagon contract using Google's artificial intelligence software. This action shows the influence of ______.

activist stakeholders

The firms most likely to succeed in today's rapidly evolving global environment will be those best able to ______ by balancing the conflicting interests of multiple stakeholders.

adapt to their environment

The "Ben & Jerry's law" passed by the Vermont legislature ______.

allows firms to consider factors other than shareholder value when deciding whether to accept a takeover offer

According to the textbook, the businesses most likely to succeed in today's rapidly evolving global environment will be those best able to ______.

balance the conflicting interests of multiple stakeholders

Strategic CSR expounds the ______ argument in favor of corporate social responsibility.

economic

60 Minutes exposed the mislabeling of products by the flooring company Lumber Liquidators, and the EPA threatened to withhold approval for selling Volkswagen and Audi diesel models. These are both examples of ______.

corporate stakeholder responsibility

In 1994, top executives of the seven largest tobacco companies testified in Congress that they did not believe that cigarettes were addictive. What stakeholder was prioritized the least due to this action?

customers

According to Simon Zadek's corporate responsibility theory, a company faces the greatest danger when it is in ______ mode while facing a(n) ______ issue.

defensive; institutionalized

Benefit corporations and certified B Corps are ______.

different entities, one a legal entity and the other a certification process

According to Archie Carroll's pyramid of corporate social responsibility, a firm's ______ is to take proactive, strategic behaviors that benefit both the firm and society.

discretionary responsibility

The textbook author argues that ______ offers the most efficient tools to deliver social progress.

for-profit firms

Which of the following exist to define the rules and structures of society within which all organizations must operate?

governments

What is the first step in stakeholder prioritization?

identify and engage the set of stakeholders that are relevant to the firm

The rational argument for corporate social responsibility is summarized by the Iron Law of Social Responsibility, which states that ______.

in a free society, discretionary abuse of societal responsibilities leads, eventually, to mandated reprisals

Compared to European firms, U.S. firms are ______.

less likely to take a multiconstituency approach to CSR

In Zadek's model, an irrelevant issue is characterized by ______.

low strategic relevance and latent issue

Which of the following is NOT one of the five stages of learning organizations go through when developing a sense of corporate responsibility?

offensive

While all stakeholder types may be considered important, what is the stakeholder order of importance for the firm (from most important to least important)?

organizational, economic, and societal

Corporate governance is regulated by ______.

the states

According to the text, the range of firm behavior that generates value for both internal and external stakeholders in sufficient quantities is termed ______.

the strategic CSR window of opportunity

Corporate social responsibility can be defined as the responsibility of firms to act in accordance with stakeholder needs.

true