GENBUS 441 Final
In strategy formulation (as part of strategic planning), in addition to asking "What can we do?", "What might we do?" and "What do we want to do?", we also ask
"What should we do?"
________% of adults own more than ______% of the global assets
2% and 50%
Perhaps the most vulnerable strategy to stakeholder CSR concerns would be
A focused strategy targeting "lifestyle brands."
A central part of the moral argument for CSR comes from the thinking that
A large part of business success comes as much from actions that are congruent with societal values as from factors internal to the company.
Legal compliance is:
A minimum standard for societal legitimacy.
Foxconn announced that it will improve working conditions for all employees at its factories by which of the following:
ALL OF THE ABOVE
One of Walmart's most recent initiatives to reduce its overall environmental impact by sourcing more produce locally is intended to have which following result
ALL OF THE ABOVE
STRATEGY:
ALL OF THE ABOVE
Growing affluence means that:
Affluent societies can and do hold firms to higher standards.
Milton Friedman argued:
Against CSR
The Sarbanes-Oxley Act of 2002:
All of the above
To be successful, a CSR officer should have which of the following characteristics associated with his or her position:
All of the above
Advocacy for firms to be socially responsible may arise from:
All of the above.
In the United States, The Alien Tort Claims Act:
Allows foreigners to sue U.S. firms in U.S. courts for transgressions that take place in other countries
Though CSR involves the firm's overall direction and day-to-day activities, its implementation begins with the ____________
Annual strategic planning process
In the reading "So what's the business case for corporate social responsibility" Mallen Baker states that
Any business taking specific actions in the name of social responsibility needs to have a business case.
Tradeoffs among competing stakeholder interests:
Are common and should be expected.
That need, toward which the organization strives, forms the basis of its:
Aspirations or vision
Society can be broken down into three main elements, which include:
Businesses, government, and nonprofits (or NGOs)
In terms of CSR implementation, the ____ should establish an effective CSR policy and insure that it is institutionalized within the firm.
CEO
Pepsi's initiatives in looking for a more environmentally friendly plastic bottle would also provide benefits in the area(s) of
COST SAVINGS
Strategic and tactical decisions are evaluated for their impact on the firm's various stakeholders with the use of a ___________
CSR filter
The CSR context of Strategy, or Strategic CSR, assumes first, that CSR is important, if not critical to a sustainable business and, second, that
CSR must be embedded, or deeply integrated, into the firm
As a result of ______, a sole focus on the linkage among vision, mission, strategy, and tactics is insufficient to achieve the firm's goals:
Complexity
The "CNN Test" refers to:
Considering the media impact of decisions
According to the study conducted by Boston College's Center for Corporate Citizenship, where does an organization's most significant external pressure for good corporate citizenship come from?
Consumers
Some believe that the growing interest in CSR results from
Countervailing forces that seek to resist or at least influence globalization
According to a 2002 Gallup poll, Americans perceive that ethics among business leaders have:
DECLINED
CSR can affect the economic performance of the firm when formerly ____________ actions evolve into ______________ considerations:
Discretionary/ethical.
CSR Thresholds are driven by different cultural expectations further complicate firms' operating ________
ENVIRONMENT
CSR serves as "brand insurance" by
Enabling the firm to develop credibility among stakeholders
CSR and profit are mutually exclusive goals?
FALSE
CSR helps corporations maximize their potential and benefit the widest number of constituent groups. The concept of corporate personhood was not developed with this goal in mind and, as such, is not essential for the fluid operation of a market economy.
FALSE
Ethical consumption is the extent to which customers are willing to base their purchase decision on values over the above concerns about price and not hold firms accountable when they transgress those values.
FALSE
The FCPA was enacted in 2005 after the Enron scandal
FALSE
The value to a firm of ethical or socially responsible behavior depends on customerevaluation and board member respnoses.
FALSE
What are the four components that are essential to defining strategic CSR?
Firms incorporate a CSR perspective within their strategic planning process, any actions taken are directly related to the core operations, the firm incorporates the stakeholder perspective, the firm shifts from a short term perspective to managing the firm's resources and relations with key stakeholders over to medium to longer term.
In which of the following circumstances does a corporation NOT benefit society?
Fund governmental campaigns
Which of the following is not a Walmart CSR-related initiative?
Grounding its fleet of trucks during daylight hours.
he Sarbanes-Oxley Act of 2002:
Holds executive officers to a greater standard of responsibility
________________ perspective assumes a zero sum game and a confrontational view:
INDUSTRY PERSPECTIVE
THE FIRM'S MOST VALUABLE RESOURCES OR MOST INNOVATIVE CAPABILITIES ARE:
ITS COMPETENCIES
the resources perspective:
Ignores much of the context in which the firm operates.
A CSR audit is most effective when
Its results are publicized internally and externally.
Probably the best example of good crisis management has been provided by
Johnson and Johnson and Tylenol
The statement the "business of business is business" is often attributed to
Milton Friedman
Fair trade includes all of the following except
No government restrictions on growing coffee
In seeking to prioritize its stakeholders, what is one of the key points a firm needs to keep in mind?
No organization can afford to ignore consistently the interests of an important stakeholder
WALMART IS:
None of the above.
In Europe, pressure for CSR is more likely to come from:
Nonprofits (NGOs).
_____________ is where the CSR officer can hope to make the most progress in terms of
Operations
The pursuit of _______, however, is so broad a mandate that it offers little guidance about where to begin or what to do:
PROFITS
In the Buckley vs. Valeo case, the court ruled that....
Political donations by corporations are free speech and are protected by the constitution
A CSR ombudsman:
Provides both employees and executives with a way of expressing CSR concerns.
Over the longer term, the text recommends all of the following methods to help implement CSR effectively throughout the organization, except:
Replacing CEOs who do not support CSR
In addressing the value of the corporation to society, we are inherently determining what position it deserves in the ________ strata.
SOCIAL
Who is the leader of the Fair Trade Act?
STARBUCKS
The CSR Officer must undertake all of the following activities, except:
Select business-level strategies based on CSR effectiveness
Which company paid the largest fine to date under teh FCPA?
Siemens
Walmart's sales are so dominate in some categories, such as household cleaning agents, that:
Some observers have expressed concern about the impact of Walmart would have on the economy if it failed.
The range of firm behavior that generates both economic and social value in sufficient quantities is the _____________.
Strategic CSR Window of Opportunity
The CSR Filter is a conceptual screen through which ___________________ are evaluated for their impact on the firm's various stakeholders
Strategic and tactical decisions
Porter's Five Forces Model does not include
TAX RATES
All stakeholders (internal and external) need to understand the firm's CSR position and how that stance affects them
TRUE
As of 2011, 42% (210 of 500) of companies in the S&P 500 separate the roles of CEO and Chair of the Board?
TRUE
It was Justice John Paul Steven's argument that because companies are without feelings, consciences or desires, they shouldn't benefit from laws protecting ordinary citizens
TRUE
The U.S. now makes 3% of the cloting its consumers purchase, compared to about 50% in the 1990's
TRUE
The primary duties of the board of directors are to provide strategic advice and to represent shareholder interest.
TRUE
Charles Handy argued
That firms should seek societal goals beyond just profits.
An unchecked, unbridled pursuit of economic value, without regard to the social consequences (e.g., such as a manufacturing process that generates excessive pollution), creates a _________:
The CSR Deficit.
"In a democratic society, power is taken away from those who abuse it" is a workable definition of:
The Iron Law of Social Responsibility.
The central conflict surrounding the discussion of CSR is
The need for firms to strike a balance between CSR and profi
Today, advocates of CSR outside the firm have greater opportunities to effectively mobilize their efforts because of:
The revolution in communications technology
Firms that sell based on price are likely:
To attract less attention from consumers on issues unrelated to price
Which of the following is not part of Walmart's stated environmental goals?
To buy only from ecologically friendly and certified suppliers
Which case centered on a dispute between a college and New Hampshire legislature's attempt to force the college to become a public institution and originated the idea of corporate personhood?
Trustees of Dartmouth College v. Woodward
Who said "I have never understood shareholder value as it leaves so many things out. Shareholders give their money just once, whereas the employees work everyday."
Wendelin Wiedking, CEO of Porsche
A significant indication of the extent of integration of CSR into corporate culture is:
Whether rewards and penalties are aligned with CSR objectives.
In Buchanan's take on the Business-Society Social Contract, the issue of "internalized" or "externalized" is related to the question of
Who pays for the costs of value creation.
According to the text, Strategic CSR, including using the "CSR filter", is the intersection between
a firm's strategy (the operational context of the firm) and the firm's stakeholders (the societal context of the firm)
the growing use of electronic communications media makes which of the following more possible?
all of the above
The terms and phrases "Strategic CSR Window of Opportunity", "shared value", and "sustainability sweet spots" are all similar in referring to
an alignment in economic value sought by the firm and social value sought by external stakeholders
The term company comes from a combination of the Latin words cum and panis, the literal translation of which originally meant
breaking bread together
In terms of a CSR threshold, Walmart would probably fit in the ____ competitive scope and seek competitive advantage by ____ and would therefore have a relatively ____ threshold as a result.
broad, cost, high
______________ are actions that a firm can do, such as pay its bills and produce some value-added good or service:
capabilities
In Simon Zadek's "five stages of learning", the _____ stage is regarded as the highest in terms of developing a sense of corporate social responsibility and involves the promotion of industry-wide CSR practices.
civil
From the books perspective the carbonated soft drink concentrate industry has weak power of suppliers and buyers, a low threat of new entrants and industry rival and a high threat of substitutes.
correct
In a SWOT analysis, the goal of a firm's strategy is to recognize its strengths and align them with the opportunities that are present in the environment, enruing that the strategy and tactics remain consistent with its vision and mission.
correct
From Society's perspective, the primary purpose of business is to
create wealth
Following the recent events in Japan and in the realization that new levels of nuclear safety may called for, the leading producers of nuclear power in the U.S. have formed a coalition to explore anticipated public concerns and potential regulatory responses. According to the text, this would be an example of _____ CSR policy.
defensive
If a firm pursues CSR initiatives in order to reduce costs or increase value creation, it would be following the ______ argument for CSR
economic
Globalization has
empowered both corporations and stakeholders
the very first step in strategic planning is
environmental analysis
Globalization is making it easier for companies to hide poor strategic CSR choices.
false
The final, and most important, component of strategic CSR is the shift from a medium term perspect when managing the firm's resources and stakeholders relations to a short term perspective.
false
A "high" CSR threshold would be the equivalent of
low exposure to CSR pressures
The primary purpose of business from business' perspective is to
make a profit
The _________ of an organization is what the organization is going to do to attain its vission.
misson
Saying that Bill Gates has a duty to "give back" would be based on the _____ argument for CSR.
moral
If threat or constraint is one side of the coin, the other side is
opportunity.
The license to operate, on a macro level, is
permission granted by society for business enterprises to operate and pursue profits.
In Buchanan's take on the Business-Society Social Contract, the answers to the given questions will be answered within either _______ or _______.
public policy, the marketplace
The argument for CSR that focuses on avoiding social sanctions, such as increased regulatory control, is the ______ argument.
rational
According to the text, waiting until a "tipping point" where stakeholder backlash is already apparent before taking action would be a ________ approach to CSR.
reactionary
Taking a stakeholder perspective, a firm will identify, prioritize and _______ its stakeholders
respond to
In the article "Why Corporate Social Responsibility Needs Ethics", the author makes the point that
responsibility is one of the five core values that define the idea of ethics so that corporate social responsibility is a necessary but not sufficient condition for ethical behavior
Firms can only maximize _______ value in a globalizing world by utilizing strategies that address the needs of key _________
shareholder;stakeholders
The Environmental Constraints of the firm are related to
sociocultural, legal and stakeholder factors, and the influence of markets and technology
Johnson & Johnson's "Credo" places ____________ as its lowest priority
stockholders
Since the structure of a firm should follow the dictum that "form follows function," _______most heavily influences the firm's organizational design:
strategy
The strongest argument against CSR which is related to the trend of globalization of markets is
that customers are unwilling to pay a premium for more costly CSR products
In Ian Davis' critique of the "business of business is business", he states that the perspective can be blind to two important realities. The first is that social issues are not so much tangential to business as fundamental to it. The second is
that it puts off or avoids the need to address questions of ethics and legitimacy
Phase I of globalization has to do with
the empowerment of corporations.
The textbook takes a "stakeholder approach," which means the book addresses:
those who effect or are affected by the firm's goals
A tactical or strategic decision that runs counter to stakeholder interests can undermine the firm's sustainable competitive advantage.
true
In the eighteenth century, Adam Smith reasoned it would be in producers' self interest to be honest because to do otherwise would threaten the reputations and goodwill on which ongoing trading within their community depends.
true
Generally, data on "ethical consumerism" shows that most consumers are concerned about environmental or social issues and that
very few (less than 5%) consumers show consistent ethical and green purchasing behaviors
"The College of Business and Economics will be among the most respected business schools in the West, known for high quality graduates, research impact, entrepreneurial spirit, and creativity." This is a statement of the ______________ of the College of Business and Economics.
vision
A firm's aspirations are most closely associated with its:
vision
After evaluating each of Walmart's constituent stakeholders and the net positive/negative impacts Walmart has on them, from a CSR perspective we might sum them up and ask
whether Walmart is sustainable on its present course.
