CH. 7
"Licence to operate" refers to the greater leeway a firm may have as a result of corporate citizenship.
A
"We will consider social, ethical, and environmental factors in our business decisions only if doing so is in the financial interest of the firm." This view is consistent with a profit-driven model of Corporate Sustainability.
A
According to Carroll's Pyramid of Corporate Social Responsibility, it is essential that a firm satisfy its economic responsibilities, such as profit generation, before any other social responsibilities.
A
According to Carroll's Pyramid of Social Responsibility, profits resulting from the satisfaction of the economic responsibilities of the firm are necessary before any other responsibilities; responsibilities, including legal, ethical, and philanthropic can be carried out.
A
All of the responsibilities have always existed in Carroll's pyramid of corporate social responsibility, but which two responsibilities have only become significant recently? A) Ethical and philanthropic responsibilities B) Philanthropic and economic responsibilities C) Economic and ethical responsibilities D) Managerial and economic responsibilities E) Legal and managerial responsibilities
A
An argument for social responsibility is that corporate virtue is good for profit.
A
Corporate social responsibility (CSR) is the way that corporations achieve a balance between social, economic, and environmental responsibilities.
A
Corporate sustainability considers that companies may profit from society's shifting expectations regarding environmental issues.
A
Corporations and society are interwoven rather than distinct entities.
A
Corporations are legitimate because they have been granted power by society.
A
Corporations exist as legal persons.
A
Diane is very proud of her accomplishments as CEO. She is pleased that, under her leadership, her company is auditing the corporation's impact on society and the environment in addition to measuring economic factors. She has been able to demonstrate that her firm is a good Corporate Citizen.
A
Legal responsibilities change as a result of shifting ethical expectations
A
Managing Solutions is a nonprofit organization dedicated to ensuring that environmental and social considerations are fully embedded in all aspects of corporations' business activities and that these priorities not be considered less important than financial goals. Managing Solutions is committed to fostering the Holistic Corporate Sustainability model.
A
Milton Friedman, a Nobel Prize winner in economics, is often quoted as saying the only social responsibility of business is to make profits.
A
Some corporations have built their competitive advantage on social responsibility initiatives or strategies which set it apart from its competitors.
A
The VBA model incorporates five frameworks in common usage by academics and managers: corporate social responsibility (CSR), business ethics (BE), stakeholder management (SM), sustainability (SUS), and corporate citizenship (CC).
A
The argument against social responsibility is that it increases costs for the organization.
A
The extended role of corporations includes all of the following, except: A) receiver B) administrator C) enabler D) channel E) provider
A
The roles of business as moral actors result in three levels of analysis. These levels include all of the following, except: A) Societal B) Institutional C) Individual D) Organizational
A
Those in opposition of the basic principles of corporate social responsibility argue that it is the government, and not the corporations, which holds jurisdiction over social policy.
A
XYZ Corporation has adopted a corporate sustainability perspective that ensures the company follows government regulations and attends to charitable expectations placed on them by society. This is consistent with the ________ level of corporate sustainability and reflects the ________ view of corporate social responsibility. A) Compliance-driven; Social B) Compliance-driven; Personal C) Caring; Personal D) Caring; Social E) None of the answers.
A
Triple-E Bottom Line examines firms' performance relative to three key financial indicators.
B
Under the traditional shareholders model of the amoral view of social responsibility, a firm is ONLY responsible for maximizing profits for shareholders.
B
Which of the following ISO standards incorporates social responsibility? A) 9001 B) 26000 C) 14000 D) 9002 E) 14001
B
Which of the following was not included in Carroll's Pyramid of Social Responsibility? A) Economic responsibilities B) Managerial responsibilities C) Legal responsibilities D) Ethical responsibilities E) Philanthropic responsibilities
B
"Importers Are Us" has endeavoured to be a good corporate citizen by providing support for community education within the countries from which they import product. This is an example of which component of social responsibility? A) Legal responsibilities B) Managerial responsibilities C) Philanthropic responsibilities D) Economic responsibilities E) Ethical responsibilities
C
Businesses today must recognize that they are not just responsible to their local constituency; they have rights and duties that apply to a global community and thus must be concerned with common humanity. This statement best reflects: A) Limited view of Corporate Citizenship B) Extended view of Corporate Citizenship C) Business citizenship D) Equivalent view of Corporate Citizenship E) None of the answers
C
Which of the following statements is inconsistent with Milton Friedman's argument regarding the responsibility of a firm? A) Profit maximization is the primary purpose of business. B) Labour leaders' only responsibility is to serve the interests of their unions. C) Free and open competition is beneficial to business. D) The only social responsibility of business is to make profits. E) All of the answers are consistent with his position
E
"A business is not a person," Bill argued. "It is not possible to impose moral sanctions on businesses like you would on a person." Bill's position is compatible with which view of social responsibility? A) Amoral B) Personal C) Social D) B and C, but not A E) None of the answers.
B
A local business has received negative media attention because of plans to relocate its factory. The media's focus on the social impact of this decision on the local community where the factory is currently located reflects the ________ principle of corporate social responsibility. The manager of the facility has responded that she is relocating the plant to a site where there will be less environmental impact. The manager is applying the ________ principle of corporate social responsibility. A) public responsibility; legitimacy B) public responsibility; managerial discretion C) managerial discretion; public responsibility D) legitimacy; public responsibility E) legitimacy; managerial discretion
B
Being a good corporate citizen falls under which kind of social responsibility depicted in the pyramid of social responsibility? A) Legal responsibilities B) Philanthropic responsibilities C) Ethical responsibilities D) Managerial responsibilities E) Economic responsibilities
B
Business citizenship includes the responsibilities of corporate citizenship on a local and national basis but excludes a global or universal scope
B
Business has an obligation as a social institution; society gives and can take away the power of business to operate or sanction it if it operates outside of societal expectations. This statement reflects the principle of: A) Managerial discretion B) Legitimacy C) Shareholder management D) Public responsibility E) None of the answers.
B
Corporate sustainability includes all of the following, except: A) Profit B) Legality C) Caring D) Compliance E) Synergy
B
Despite an ethical argument to the contrary, recent research show that satisfying social responsibilities usually has a negative effect on a firm's profitability.
B
Ethical and social responsibilities have only become expectations placed on the firm in recent years.
B
Ethical responsibilities are easier for a business to deal with than are legal responsibilities.
B
Frank is considering relocating his company to a region of the country where the negative environmental impact will be reduced. This decision will have a negative impact on the firm's long term financial performance. Frank's decision is, however, consistent with the Corporate Sustainability model.
B
Fundamentalism, in the context of CSR, refers to theories that argue that a firm has responsibility for the social welfare and progress of society.
B
Prioritizing profit over social and environmental concerns is consistent with a corporate sustainability model.
B
Reputation management is often referred to as the "business and society approach."
B
Responsibilities for being a good corporate citizen and being profitable are mutually exclusive.
B
Salvo is considering shutting down a local factory. It is recognized that this will have a negative social impact on the community in which Salvo is located. The CEO argues, however, that social considerations should not outweigh economic factors. The CEO's view is most compatible with the ________ model of corporate sustainability. A) Holistic B) Profit-driven C) Caring D) Synergistic E) None of the answers.
B
Social impact management focuses on corporations' impact on society and the environment, rather than the influence exerted by society over business actions.
B
The ISO 26000 standard extends far beyond the original ISO 9000 standard by including strict standards for environmental protection.
B
The amoral view of social responsibility focuses on the activities of the firm that already conform to usually accepted or established patterns of conduct.
B
The generation of profit was found to be the fundamental element of the VBA model.
B
The personal view of social responsibility concludes that the corporation is indeed a social institution.
B
The principle of public responsibility means that business is responsible to society for providing employment opportunities.
B
The social interpenetration viewpoint argues against the responsibility of business for social responsibility.
B
The view that the corporation has little or no social responsibility is an example of which amoral view of social responsibility? A) Legal recognition B) Fundamentalism C) Individual agreement D) Immorality E) Traditional shareholders model
B
To satisfy its legal responsibilities, according to Carroll, a firm must meet more than the minimal legal requirements imposed upon them.
B
Triple-E Bottom Line ensures that companies add economic value to society.
B
Frank, the CEO has been evaluating its CSR policy. For the past several years, the firm has been a significant contributor, of both time and financial resources, to an NGO that serves to educate society on the dangers of drunk driving. Frank reminds the board of directors that the firm's shareholders made a commitment to this organization to provide these supports for ten more years. In focusing on the need to satisfy this commitment, Frank is applying which Amoral-View Theory of Social Responsibility? A) Fundamentalism B) Legal Recognition C) Individual Agreement D) B and C, not A E) None,no amoral theory would argue for a firm's commitment to charitable behaviour.
C
Managerial discretion involves: A) Resource dependence B) Adherence to societal norms C) Latitude of action D) External expectations E) Societal expectations
C
Opponents of corporate responsibility would not argue that: A) business lacks training in social skills. B) any purpose other than profit-maximization is not socially responsible. C) it is not appropriate to ignore social matters. D) social policy is not the jurisdiction of business. E) business have no authority to act in social areas.
C
This standards setting organization already has formulated standards for risk, quality, environmental, and energy management: A) CSP B) CSR C) ISO D) BE E) None of the answers.
C
ABC Inc. is considering merging with XYZ Corporation and the new enterprise will be called Alphabet Inc. One of the conditions of the merger being negotiated is the implication of XYZ's very positive reputation with its stakeholder groups. Regarding the reputation of XYZ, the negotiators must consider that a good reputation: A) enhances competitive positioning B) requires continuous effort to maintain C) can be an asset D) All of the answers E) None of the answers
D
Kids Think Inc. has a long history of contributing to the local community in which it operates and has been recognized for its corporate volunteer program that places employees into local schools to promote literacy. Recently, the company has expanded its mandate to give financial and other forms of support to literacy programs in the developing world, even though they do not operate within those regions. Kids Think Inc. can be considered to be moving from a ________ citizenship model to a ________ citizenship model. A) corporate; business B) local; sustainability C) business; corporate D) local; global E) None of the answers
D
The expectations placed on business to improve the quality of life of stakeholders are consistent with the ________ dimension of Carroll's Pyramid of Social Responsibility. A) economic responsibilities B) legal responsibilities C) ethical responsibilities D) philanthropic responsibilities E) managerial responsibilities
D
Franko has focused on making Financial Futures a good corporate citizen. As a result, Financial Futures may benefit in which of the following? A) Operational efficiency B) Risk management C) Employee recruitment, motivation, and retention D) Creativity and innovation E) All of the answers
E
Social impact assessment evaluates all of the following areas of business, except: A) Purpose B) Legitimate rights of stakeholders C) Metrics D) Quality of life E) Government policy
E
The VBA model incorporates which of the following frameworks: A) stakeholder management (SM) B) business ethics (BE) C) corporate social responsibility (CSR) D) sustainability (SUS) E) All of the answers.
E
The VBA model represents three core concepts which are: A) Value B) Accountability C) Balance D) Only value and balance E) Value, balance, and accountability
E
The extended view of corporate citizenship focuses on: A) stewardship B) rebranding C) enlightened self-interest D) giving back E) civil rights
E
Which of the following statements are consistent with the social view of social responsibility? A) Concludes that firms are social institutions B) Society sanctions firms to operate C) The firm has economic responsibility D) A and B but not C E) All of the answers.
E