SM131 Midterm 1
The Walmart Foundation committed over $100m to increase the economic mobility of workers. Walmart gave away over 800 scholarships to their associates and dependents for higher education. Walmart also committed $25m to improve community disaster response. All of these actions show that Walmart is fulfilling which responsibility under the Carroll test? A.Economic B.Legal C.Ethical D.Philanthropic E.Benevolent
D
The emergence of management has converted this from a social ornament and luxury into the true capital of any economy: A. Skilled labor B. Credit cards C. Financial instruments D. Knowledge E. Unskilled labor
D
What attributes of stakeholders determine whether managers pay attention to them? A. Proximity, urgency and legal rights B. Legal rights C. Power and legal rights D. Urgency, legitimacy and power E. Voting rights, power and legitimacy
D
What does the "stake" in stakeholder mean? A. A defined set of rules governing who legally can determine outcomes B. A barrier to entry in an industry C. Rights of employees, customers and owners only D. A person who has interest, right or ownership position in something E. A preference for one way of doing things
D
Which of the following about primary and secondary stakeholders is true? A. Animals can be considered primary social stakeholders if their lives are in danger. B. Primary social stakeholders always have a lot of power C. Government can only be a secondary stakeholder D. Secondary social stakeholders advocate for people E. Future human generations are always secondary stakeholders
D
Which of these SDGs is NOT a top 4 priority for US businesses? A. Decent work and economic growth B. Responsible consumption and production C. Climate action D. Industry, Innovation and Infrastructure E. Gender equality
D
Which of these is NOT part of the Triple Bottom Line? A) Profit B) Planet C) People D) Purpose
D
What strategy should you employ with a Non-Supportive stakeholder?
Defend
"The only group that has a more claim on the corporation is the people who own shares of the stocks" can be best attributed to: A. Michael Porter B. Edward Freeman C. Michael Sandal D. Peter Drucker E. Milton Friedman
E
According to Drucker, which of the following allowed low-wage countries to become efficient enough to compete with higher-wage countries? A. Trade-unions B. Automation C. Information Technology D. Research and Development E. Training
E
According to Drucker, which of the following is most responsible for the sacrifice of long-range wealth-producing capacity to short-term gains? A. National culture B. Lack of common goals and shared values C. Labor unions D. Innovation E. Hostile takeovers
E
According to Freeman, what is the 'So What?' of the emerging story about business? A. Business is about purpose B. Get the purpose right profits will follow C. Business is about working together to create value together D. Create value for stakeholders without making tradeoffs E. All of the above
E
According to the Forbes articles, the Business Round table's recent affirmed: A. Maximizing shareholder value is the sole purpose of a corporation. B. Milton Freidman's belief that corporations should put social good ahead of profit. C. Generating the best quarterly income statements is sole purpose of a corporation. D. Changing from GAAP to IFRS is in the best interest of American businesses. E. Maximizing social impact is the purpose of a corporation.
E
According to the reading, what percentage of companies are impacted by SDG's? A. About 33% B. About 50% C. About 66% D. About 75% E. About 100%
E
Companies often make supply chain decisions based on which criteria: A. Labor costs B. Labor regulations C. Environmental standards D. Tax laws E. All of the above
E
Sustainable business practices should produce results which are: A. Viable B. Equitable C. Sustainable D. Bearable E. All of the above
E
Triple bottom line is often also called: A. Product, People, Planet B. Product, People, Profit C. Profit, Payout, Promises D. Product, Payout, Pension E. Profit, People, Planet
E
What does ESG stand for? A. Extra societal goals B. Earnings C. Environmental special goals D. Enriching social goals E. Environmental social governance
E
What is greenwashing? A. New energy and water conversation standards for laundry appliance. B. A new generation of laundry detergent developed by Unilever. C. Shareholders allowing for lower corporate value if companies are environmentally friendly. D. Giving money to political ecological organization. E. Seeking to convey the image of CSR when it is not true.
E
When reviewing a company's MSCI ESG report one may find all of the following except A.ESG Rating Distribution for the industry B.ESG Ratings Scorecard C.Litigation fines and Settlement expenses D.Board member profiles E.Number of employees by location
E
Which is true of corporations? A. They come with large personal risks for investors B. They have simple governance structures C. They represent a small amount of business activity in the US D. They are the most common type of business in the US E. They can draw large amount of capital from many investors
E
Which of the following categories would a stakeholder be in who is low potential for threat and cooperation? A. Supportive B. Ally C. Non-supportive D. Mixed-blessing E. Marginal
E
Which of the following is NOT a characteristic of business objectives? A. They determine how people are allocated to tasks B. They determine the key activities that must occur C. They determine who you compete against D. They determine the structure of a business E. They determine the future of the business
E
Which of the following is NOT one of the Five Key questions of Stakeholder management? A. What strategies or actions should the firm take to address their challenges? B. Who are our organization's stakeholders? C. What are our stakeholders' stakes? D. What responsibilities does the firm have toward its stakeholders? E. Why do the stakeholders want to be involved with the firm?
E
Which of the following is not a commitment of the BRT? A.Investing in our employees B.Dealing fairly and equally with our suppliers C.Supporting the communities in which we work D.Delivering Value to our customers E.They are all commitments of the BRT
E
Which of the following leadership principles is not a leadership principle at Walmart? A. Control your expenses better than your competition B. Share profits with your associates C. Swim upstream D. Listen to everyone in your company E. Lower customers' expectations
E
Which one is not a basic category of stakeholders ? A. Employees B. Community C. Owners D. Consumers E. Human rights groups
E
Secondary Nonsocial Stakeholders
Environmental interest groups, animal welfare organizations
Primary Stakeholders
Have a direct stake in the organization and its success
Secondary Stakeholders
Have a public or special interest stake in the organization that is more indirect
What level of threat and cooperation are Mixed Blessing stakeholders?
High threat, high cooperation
What level of threat and cooperation are Non-Supportive stakeholders?
High threat, low cooperation
Generally, what type of stakeholder are a company's board of directors?
Supportive (low threat/high cooperation)
Before Etsy's IPO, what type of stakeholders were their employees, and what strategy should you use with them?
Supportive, Involve
Effective management involves companies having a "Values Statement" that incorporates its stakeholders.
True
In general, stakeholders have a claim on the business because the business has a potential to harm or benefit them.
True
What is CSV (creating shared values)?
a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.
CSR examples
a)Google invested $1.5 billion into renewable energy b)Disney invested $100 Million in children's hospitals
Edward Freeman
a)identify stakeholder groups b)make decisions that takes them into account
Milton Friedman maximize profit
a)within law b) without violating social standards
Secondary Social Stakeholders
government regulators, civic institutions, social pressure groups, media and academic commentators, trade bodies, competitors
Social Stakeholders
include people and organizations involved in your business
Primary Nonsocial Stakeholders
natural environment, future generations, nonhuman species
Nonsocial stakeholders
refer to entities such as animals, the environment and generations of people who haven't yet been born
What is CSR (Corporate Social Responsibility)?
where businesses look at how they can better serve society as a whole, thereby improving its public image and relations.
Creating shared value calls for all the followings, EXCEPT: A. Enabling local cluster development B. Redefining productivity in the supply chain C. Investments in short term competitiveness D. Investments that address social objectives E. Recreating products and markets
C
During the first 3 months of COVID-19, Chipotle decided to close all of its stores. However, as time passed and a partnership formed with UberEats, Chipotle was able to open. UberEats would deliver Chipotle orders with no delivery charge to customers within a 15 mile radius of the store. Both companies did very well as a result of this partnership. What is the Threat and Cooperation level of UberEats to Chipotle? A.Low for Threat and High for Cooperation B.Low for Threat and Low for Cooperation C.High for Threat and High for Cooperation D.High for Threat and Low for Cooperation E.None of the above, they are in 2 different industries
C
The number of SDGs is: A. 14 B. 7 C. 17 D. 12 E. 21
C
The people for the Ethical Treat of Animals (PETA) is an activist group that targeted McDonald's for not doing enough for animal welfare issues. It started a campaign that said "McCruelty - I'm Hating It". What strategy would you adopt with PETA as a stakeholder? A.Increase your advertising B.Observe their actions C.Consult on their areas of concern and interests D.Monitor their campaigns and tactics E.Attempt to turn them into supporters
C
Which of the following is NOT a form of business? A) Partnership B) S Corporation C) B Corporation D) Sole Proprietorship
C
What strategy should you employ with a Mixed Blessing stakeholder?
Collaborative
CSR can achieve all of the following, EXCEPT: A. Enhance relationships with suppliers B. Provide access to investment and funding opportunities C. Attract, retain, and maintain a satisfied workforce D. Decrease customer retention E. Improve results by lowering operational costs
D
Starbucks decided to stop using plastic straws after media reports showed that many sea turtles had plastic straws wedged in their noses. The Sea Turtle Conservatory, a non-profit organization that works to help sea turtles all over the world, exerted a lot of pressure on beverage companies to forgo plastic straws and replace them with paper straws. The Sea Turtle Conservancy is an example of what type of stakeholder? A.Primary Social B.Primary Non-Social C.Secondary Social D.Secondary Non-Social E.Social Non-Primary
D
Primary Social Stakeholders
*Shareholders, employees, customers*, suppliers, local communities
Drucker believes that the business enterprise only has two basic functions. They are: A. Innovation and marketing B. Finance and innovation C. Research and development, and production D. Production and marketing E. Innovation and production
A
Freeman told a story about how his son asked him, "which is more important, your family or your job?" What was he illustrating with this story? A. It's important to accept a challenge to our values as important in what we do B. He should get involved more with his son's activities C. How he can compromise with his son and go on a trip and be involved in family activities? D. It's important to spend time with his son playing basketball E. It's impossible to balance the interests of the stakeholders
A
The SDG compass is: A. A guide to help companies measure and manage their contribution to SDG's. B. A system that "points" companies to global opportunities. C. A system that brings companies together. D. A system of do's and don't for companies to adhere to. E. A guide for compliance to UN regulations.
A
Which of these people came up with the idea of Conscious Capitalism? A) John Mackey B) Michael Porter C) Milton Friedman D) Mark Kramer
A
Which of Carroll's 4 Pillars of CSR are NOT required from businesses today? A) Philanthropic B) Legal C) Economic D) Ethical
A and D
In the Coke and Pepsi Case, what category of stakeholder was the CSE (Center for Science and Environment)?
Secondary Social Stakeholder
Marish Manwani (Unilever) advocated for a program that did what? A. Free glasses and eye exams for people in India B. Provided soap for hand-washing C. Provided clean water D. Low cost incubators for babies in developing countries E. A low-cost SARS test
B
SDG stands for: A. Simple Decision Guide B. Sustainable Development Goals C. Sustainable Development Grants D. Subsided Direct Grants E. Sustainable & Desirable Governance
B
The responsibilities a firm has toward its stakeholders can be all of the followings, EXCEPT: A. Philanthropic B. Welfare C. Ethical D. Economic E. Legal
B
Which of the following is the first and most crucial question to be asked in defining the purpose and mission of a business? A. Who are our competitors? B. Who is our customer? C. What does the customer buy? D. Where is our budget? E. What is our business?
B
Which of these represent Carroll's components of CSR? A. Legal, societal, philanthropic, and moral. B. Economic, legal, ethical, and philanthropic. C. Philanthropic, legal, individual, and reportable. D. Economic, legal, societal, and personal. E. Economic, ideal, moral, and spatial.
B
Which of the following was NOT one of Starbucks' CSR initiatives? A) Race Together B) CAFE (Sustainable Coffee Sourcing) C) Anti - Gun Campaign D) Tuition For Workers
B and D
According to Drucker, the one valid definition of business purpose is to create a customer. According to Drucker, which of the following best described what customers value? A. Getting the highest quality product B. Maximizing the utility that the product provides them with C. Something that provides them with social status D. Getting what they want before they know they want it E. Getting low priced goods and/or services for their money
B
According to Drucker, which of the following is the single largest reason for the decline of existing organizations: A. Lack of logic and statistical analysis B. Lack of innovation C. Lack of available skilled workers D. Lack of marketing E. Lack of scientific management
B
Drucker would be more likely to believe that: A. Studying business skill is what matters most for leadership success B. Balancing a professional education with humanities/liberal arts is critical C. The BU Hub is a waste of time D. That the humanities arts such as ethnography or history have little to offer to managers E. That philosophy has no role in business
B
Generating economic value by in a way that also produces value for society by addressing its challenges would be advocated by which thinker? A. John Stewart Mill B. Michael Porter C. Milton Friedman D. Friedrich Hayek E. Ed Freeman
B
In 2019, H&M launched a line of clothing titled "Conscious". The company claims to use 'organic' cotton and recycled polyester. However, at quick glance, the line is nothing but a shelled marketing tactic used to make themselves appear more environmentally friendly. What is this called? A.Sustainable Production B.CSR Greenwashing C.SRI Investment in products D.Corporate Citizenship E.CSV: New Markets and Products
B
In August 2019, the Business Roundtable issued a new Statement on the Purpose of a Corporation. The signatories to the Statement bound themselves to "a fundamental commitment to all of our stakeholders." Prior to this Statement, the idea about stakeholder importance and management was extensively studied and written about by which of the following individuals? A.Milton Friedman B.Edward Freeman C.Peter Drucker D.Michael Porter E.Adam Smith
B
In the Netflix documentary called "Tiger King"; we are introduced to Joe Exotic, a zoo owner who breeds tigers and lions for show in order to make a profit. We are also introduced to Carole Baskin, a woman who wants to save the tigers and lions from captivity through her non-profit "Big Cat Rescue ". "Big Cat Rescue" is what type of stakeholder? A. Primary Social Stakeholder B. Secondary Non-Social Stakeholder C. Primary Non-Social Stakeholder D. Secondary Social Stakeholder
B
In the Ted Talk, 'business is about purpose', Edward Freeman states there are 3 flaws in the story of the purpose of business. Which of the following is not one of them? A. Money is the purpose B. Purpose needs Profits C. People are not simple beings about self interest D. Business and ethics are contradictions
B
In CSR, social programs and business activities are integrated and embedded.
False
One of the former arguments in support of CSR is that it is the Fiduciary Duty of managers to make a profit for the firm.
False
Stakeholder Perspectives is based on creating different levels between stakeholders.
False
The weights for each of the categories: Environmental, Social and Governance remain consistent across all industries.
False
What strategy should you employ with a Supportive stakeholder?
Involve
What level of threat and cooperation are Marginal stakeholders?
Low Threat, Low Cooperation
What level of threat and cooperation are Supportive stakeholders?
Low threat, high cooperation
Generally, what type of stakeholder are a company's unionized employees?
Mixed Blessing (high threat/high cooperation)
What strategy should you employ with a Marginal stakeholder?
Monitor
Generally, what type of stakeholder are advocacy groups?
Nonsupportive (high threat/low cooperation)
In the Coke and Pepsi Case, what category of stakeholder was the water and land?
Primary Nonsocial Stakeholder
In the Coke and Pepsi Case, what category of stakeholder were the farmers?
Primary Social Stakeholder