MGMT 3211 Chapter 3
Corporate power says that in the long run, those who do not use power in ways that society considers responsible will tend to lose it.
False
enlightened self-interest
the view that holds it is in a company's self-interest in the long run to provide true value to its stakeholder
bottom of the pyramid
the world's poor; also refers to creative business actions to develop products and services that meet the needs of the world's poor
As a response to the conflict between long- and short-term profit making, an enlightened self-interest point of view would be the least useful and practical approach.
False
Being socially responsible means that a company must abandon its other missions.
False
Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate.
False
Reports have shown that 70 percent of consumers said they would buy a product even if they did not like the company's reputation behind the product.
False
The capability of corporations to influence government, the economy, and society, based on their organizational resources is called the big business principle.
False
An argument against corporate social responsibility is that it imposes unequal costs among competitors.
True
Businesses that comply with laws and public policies are meeting a minimum level of social responsibility expected by the public.
True
Corporate social responsibility is the idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals.
True
Given the immeasurable power in the hands of the leaders of large, global corporations, social responsibility has become a worldwide expectation.
True
Huge businesses can disproportionately influence politics, shape tastes, and dominate public discourse.
True
In the United States, the idea of corporate social responsibility appeared around the start of the 20th century.
True
Laws and regulations help create a level playing field for businesses that compete against one another.
True
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.
True
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.
True
social enterprise
a business that adopts social benefit as its core mission and uses its resources to improve human and environmental well-being
B corporation
a business that is certified by an external organization to verify the blending of its social objectives with its financial goals
social entrepreneur
an individual driven to create and sustain social value rather than solely economic value in business
microfinance
occurs when financial organizations provide loans to low-income clients or a community of borrowers who traditionally lack access to banking or related services
iron law of responsibility
the belief that those who do not use their power in ways that society considers responsible will tend to lose their power in the long run
reputation
the desirable or undesirable qualities associated with an organization or its actors that may influence the organization's relationships with its stakeholders
corporate social responsibility
the idea that businesses should act in a way that enhances society and their stakeholders and be held accountable for any of its actions that affect people, their communities, and their environment
social entrepreneurship
the identification of a social need and using entrepreneurial skills to address this need
corporate power
the strength and capability of corporations to influence government, the economy, and society, based on their organizational resources
