Global Bus Test 1

discuss the business justification for CSR and how corporations worldwide are working to report on and measure value created through CSR activities.

CSR is the expectations that society has of organizations. Businesses should embrace CSR because it leads to innovation, cost savings, brand differentiation, long-term thinking, and customer/employee engagement. Corporations worldwide are following this approach to become more competitive. Firms respond to CSR pressures in 4 approaches: defensive, cost-benefit, strategic and innovation and learning.

Explain (define and discuss) the iron law of responsibility

In the long run, those who do not use power in a manner society considers responsible will tend to lose it.

Briefly explain the social contract concept. discuss one example using the walmart case

The social contract is a set of laws and regulations or "rules of the game" established by society. It is a shared understanding of expectations between business and society. The social contract was broken by Walmart bc it's invasion with big businesses shut down local businesses. This affected communities and many members of society lost their jobs.

Define and discuss the pyramid of CSR

There are four components that make up the Pyramid of CSR. The largest is economic which encourages companies to maximize sales and minimize costs. The second most important is legal. Companies should adhere to regulations and follow laws. Following is ethical which means avoiding questionable practices and being just/right. The last part of the pyramid is philanthropic which means being a good corporate citizen.

define the stakeholder corporation and discuss the main components that would be important to a company as they worked towards a goal

a stakeholder is anyone who can affect or be affected by an organization. The central element is stakeholder inclusiveness. The main components would be interacting with stakeholders and managing.

when the interests of management and owners are not aligned, there will likely be an a. agency problem b. free agency dilemma c. shareholder rebellion d. shareholder resolution

a. agency problem

public relations deals with the government a. as one of many publics b. as its exclusive focus c. primarily through lobbying efforts d. primarily through campaign contributions

a. as one of many publics

___ is depicted as an action-oriented variant of CSR a. corporate social responsiveness b. corporate social responsibility c. corporate society responsibility d. corporate social performance

a. corporate social responsiveness

a contract in which a corporation agrees to make payments to key officers in the event of a chance in the control of the corporation is called a. golden parachute b. golden handcuffs c. greenmail d. the silver rule

a. golden parachute

corporate social responsibility emphasizes a. obligation and accountability b. action only c. outcomes and results d. socially responsible investing

a. obligation and accountability

the view of the firm that recognizes just suppliers and customers as stakeholders is the a. production view b. managerial view c. ownership view d. stakeholder view

a. production view

strengths of pluralism include all of the following except a. pursuit of self-interest b. prevention of concentrations of power c. a built-in set of checks and balances d. maximization of freedom of expression

a. pursuit of self-interest

The ___ portrays the concurrent fulfillment of the firm's economic, legal, ethical and philanthropic responsibilities a. pyramid of corporate social responsibility b. corporate citizenship concepts c. social response cycle d. none of these

a. pyramid of corporate social responsibility (legal: adhere to regulations, follow rules; ethical: good, right, avoid ? practices; philanthropic: be a good corporate citizen)

the demographics, lifestyles, and social values of a society determine the firm's a. social environment b. economic environment c. political environment d. technological environment

a. social environment

the balanced scorecard is best describes as an example of a. the production view of the firm b. a sustainability model c. shareholder thinking d. shareholder power

b. a sustainability model

congruence between the organization's activities and society's expectations is called a. alignment b. legitimacy c. social normals d. acceptability

b. legitimacy

the enterprise-level strategy may address the firms a. obligations to stakeholders b. role in society c. implications of cohesion d. competition strategy

b. role in society

for sustainable development to become a reality, which approach offers the best opportunity for this to happen? a. socioeconomic b. stakeholder c. shareholder d. organizational

b. stakeholder

which of the following characteristics of an industry does not add to the creation of visibly and controversial social problems? a. intense advertising b. creation of pollution c. geographic location d. products that affect health

c. geographic location

the practice of obtaining critical information from within a company and then using that information for one's own financial gain is a. arbitrage b. programmed training c. insider trading d. hedging

c. insider trading

the first and primary argument for corporate social responsibility is a. it is a way to gain more power b. business is best equipped to handle social problems c. it is in business's best long range interest to be socially responsible d. the free-market economic system has proven to be ineffective in dealing with social problems

c. it is in business's best long range interest to be socially responsible

corporate social performance emphasizes a. obligation and accountability b. action only c. outcomes and results d. socially responsible investing

c. outcomes and results

a social audit can be thought of as a. the first step in planning b. a narrow list of activites c. planning and control system d. a brief experimentation

c. planning and control system

major institutions in a pluralistic, special-interest society will inevitably receive a. praise b. special favors c. scrutiny and criticism d. tax advantages

c. scrutiny and criticism

which of the following is not a direct concern for the SA 8000 certification standard? a. child labor b. forced labor c. socially responsibly investing d. working hours

c. socially responsible investing

screening, shareholder advocacy, and community investing are core strategies of a. the balanced scorecard b. the CRS pyramid c. sustainable and responsible investing d. the triple bottom line concept

c. sustainable and responsible investing

all of the following are arguments commonly made against corporate social responsibility except a. social problems should be addressed first by the free-market economic system, and then, if necessary, by the government b. business is not equipped to handle social activities c. business already has enough power- it should not be given more d. business did not create all of today's social problems so it should not be expected to solve them

d. business did not create all of today's social problems so it should not be expected to solve them

which of the following is not listed as a general issue involving social or ethical ramifications within the relationship between business and society? a. downsizing pension programs b. toxic waste disposal c. insider trading d. death penalties

d. death penalties

which of the steps in the strategic management process informs all the rest? a. goal formulation b. strategy formulation c. strategic control d. environmental analysis

d. environmental analysis

the concept of enterprise-level strategy is the idea that best links a. ethics to performance b. strategy to performance c. public policy to performance d. ethics to strategy

d. ethics to strategy

the micro level of legitimacy refers to achieving and maintaining legitimacy by conforming to societal expectations for a. the business system as a whole b. public policy partnerships c. non-government organizations d. individual business

d. individual business

the peanut corporation of America is a. is a place you would want to work as a taste tester b. is an example of CSR sustainability c. is a good corporate citizenship d. is something we should learn from

d. is something we should learn from

which of the following is not an attribute upon which managers judge the importance of stakeholders a. power b. urgency c. legitimacy d. nationality

d. nationality

the primary purpose of the Sarbanes-Oxley Act is to a. provide rules regulating the relationship between CEOs and boards b. limit the power of corporate boards c. restrict the flow of corporate money into politics d. provide better protection for investors in public companies by improving the financial reporting of those companies

d. provide better protection for investors in pubic companies by improving the financial reporting of those companies

some authors indicate that the corporate model needs redefinition because all of the following except a. business size b. socioeconomic power c. inadequacy of the ownership model and its implications d. responsiveness

d. responsiveness

one of the main ways in which shareholder activists communicate their concerns to management is through a. the internet b. blogging c. advertisements in mass media outlets d. shareholder resolutions

d. shareholder resolutions

the Civil Corporation identifies four ways in which business firms respond to social pressures. which of the following is not one of those? a. defensive approach b. cost-benefit approach c. strategic approach d. stakeholder approach

d. stakeholder approach

the concept of business responsibility that is based on concern for the various groups that are affected by a business is known as the a. legal model b. classical economic model c. ethical model d. stakeholder model

d. stakeholder model

the view of stakeholders that recognizes the firms responsibilities to all stakeholders, but sees them as separate types of groups, interdependent with each other, whether they have an ownership stake or not, is called the a. strategic approach b. multi fiduciary approach c. stakeholder typology d. stakeholder synthesis approach

d. stakeholder synthesis approach

the view of the firm that recognizes a wide variety of groups as stakeholders is the a. production view b. managerial view c. ownership view d. stakeholder view

d. stakeholder view

the classical view of economics holds that a society can best determine its needs and wants through a. a centrally planned economy b. government owned factors of production c. democracy d. the marketplace

d. the marketplace

business organizations must address the legitimate needs and expectations of stakeholders because a. it is required by law b. it is the right thing to do c. stakeholders force them to d. they will need to, in order to be successful in the long run

d. they will need to, in order to be successful in the long run

Enron is a good example of strategic CSR

false

business can do just about anything it wants because we do not live in a socially conscious environment

false

business, by virtue of its place in society, has an inherent right to exist

false

once stakeholders have been identified, the firm can safely assume that they will remain the same for several years

false

one of the reasons that the stakeholder model is becoming more popular is because the stakeholder environment is finally calming down after several decades of turbulence

false

stakeholders are the ones of shares in a corp

false

the corporation is currently viewed as having a specialized purpose of providing a profit through he provision of goods and services

false

the iron law of responsibility states that people who use power wisely will be rewarded with more power

false

the steps of the strategic management process are most effective if done sequentially in the order specified in the textbook

false

there is a growing consensus that ethics should not be a central component of strategic management

false

there is some early evidence that the Sarbanes-Oxley Act has made little difference in the attention financial executives pay to shareholder reports

false

to be most effective, a social audit should be isolated from other aspects of the strategic management process

false

to get a corporation to respond to its demands a stakeholder must hold all three attributes of power, legitimacy, and urgency

false

the social contract is a set of rights and duties imposed on citizens by their government

false (by bus and society)

pluralism is a condition in which there is a concentration of power among societys groups and orgs

false (diffusion of power)

why are inside directors seen as problematic in corporate governance? define agency issue

inside directors are problematic because they have close, inside ties with the firm. Corporate governance should be ethical. There is risk for too much control and decision making that can lead to ones own personal gain. This is why outside directors are more beneficial and reliable. The agency issue is when the interests of management and owners are not aligned.

Balanced Scorecard is a strategic planning and management system. Describe the main principles and comment on the goals of the system.

performance measures to give managers and executives a more balanced view of organizational performance. it is a vision and strategy for perspectives in financial, customer, international business and learning and growth performance.

why would a firm elect to perform a social audit, when it is not required? what benefits can accrue from a social audit?

social audits are a planning and control system. this shows their concern for societies expectations and want to ensure credibility. it involves how the company is functioning economically, socially and environmentally. this could increase stakeholder loyalties, social programs, goals and increase profit.

discuss the enterprise-level strategy and why it is significant to the strategic planning process

the enterprise level strategy is the most important in the strategic planning procress linking ethics to strategy. it addresses a firms role in society.

who are the stakeholders of marist college? provide examples and briefly discuss their relative importance to the school.

the stakeholders of Marist college are the students, faculty and surrounding communities. students are the biggest stakeholders bc without them Marist is not a running college. they are greatly affected by the decisions of the school. faculty provide the work that is necessary to run the school. the surrounding area is also affected because people affected the business and neighborhoods.

what are some issues associated with CEO pay?

there are issues with overpaying CEOS for their work since CEOs have a major say in companies. Often, they have too much control that leads to self-benefiting decisions. They have a say on pension and retirement funds or insight on company information. There is a linkage to performance. Their power can majorly influence compensation without regard to actual successes or failures.

a childs assumption that he or she will have a higher standard of living than the previous generation is called the revolution of rising expectations

true

a major distinction between the managerial view of the firm and stakeholder view is the recognition that groups who think they have a stake in the firm are properly included as stakeholders, whether managers of the firm agree with them or not

true

as environmental uncertainty increases, firms tend to increase their buffering and bridging activities

true

audit committees arguably have the most responsibility of all board committees

true

corporate public policy is a firm's posture or position regarding the public, social, global, and ethical aspects of stakeholders and corporate functioning

true

penalties under the Sarbanes-Oxley Act can include fines and prison time

true

research has indicated that performance in corporate social performance are associated with improved financial results

true

some analysts believe that business's social legitimacy is fragile

true

some authors now argue that stakeholder inclusion is the key to corporate success

true

the CSR pyramid is a stakeholder model

true

the corporate system as a whole rarely addresses the idea of social legitimacy

true

the global reporting initiative (GRI) is attempting to overcome one of the major obstacles to the advance of effective social auditing by providing standardized measures for social reporting

true

the major condition of modern corporations that contributes to the corporate governance problem is the separation of ownership from control

true

the marketplace in the classical view of economics, while being a good allocator of goods and services, does not do a good job of ensuring that business always acts fairly and ethical

true

the primary factor behind the transition from a relatively simple business model to the highly complex state we now have is public recognition that the business org is no longer the sole property or interest of its owners

true