BUS 378 - Bus, Gov & Society - Chap 3 Quiz

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called the big business principle. True False

False

Which of the following examples does not show a company guided by enlightened self-interest? A company vice-president invited to attend a local community's town planning meeting. A company providing assistance to employees who attend evening college. A company providing the best quality product at a fair price. A company breaking past records by maximizing quarterly profits.

A company breaking past records by maximizing quarterly profits.

When a company publishes the results of a social audit they are meeting the demands of local governments' taxation policies. true false

false

Modern corporations should be socially responsible because they: Are responsible to the stockholders of the company. Generate dividends for the company stockholders. Create jobs, influencing the lives of employees. Are highly profitable.

Create jobs, influencing the lives of employees.

Business leaders, like automaker Henry Ford developed these programs to support the recreational and health needs of their employees. Paternalistic Programs Corporate social responsibility programs. Corporate citizenship programs. Social networking programs.

Paternalistic Programs

The costs of corporate social responsibility may ultimately be passed on to the: a. Investor through stock splits. b. Taxpayers by the government. c. Consumer through high prices d. Supplier through discounts.

c. Consumer through high prices

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called: CSR Corporation. Balanced Corporation. B Lab. B Corporation.

B Corporation

Corporate citizenship refers to a set of beliefs stating that socially responsible behavior is a good idea True False

False

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. True False

False

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally it is called: Global Sustainability. Global Corporate Citizenship Community Investing. Corporate Social Responsibility.

Global Corporate Citizenship

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 false

true

An argument against corporate social responsibility is that it imposes unequal costs among competitors. true false

true

Managers responding to the needs of the local education system as a normal or routine aspect of its operations is an example of an organization in the: Innovative stage. Engaged stage. Transforming stage. Integrated stage.

Transforming stage.

Which of the following is an argument against corporate social responsibility? Improves business value and reputation. Creates an imbalance between corporate power and its economic responsibility. A majority of stockholders are against it. Requires skills businesses may lack.

Requires skills businesses may lack.

Some companies have created a department of corporate citizenship to: a. Narrow the job of the public relations office. b. Centralize under common leadership wide-ranging corporate citizenship functions c. Decentralize under common leadership wide-ranging corporate citizenship functions. d. Adopt the United Nations' Global Compact Principles.

b. Centralize under common leadership wide-ranging corporate citizenship functions

Which of the following is an argument in favor of corporate social responsibility? Places responsibility on business rather than individuals. Lowers economic efficiency and profit. Imposes unequal costs among competitors. Discourages government regulation.

Discourages government regulation.

Enlightened self-interest is the idea that the wealthiest members of society should be charitable toward those less fortunate. True False

False

Global corporate citizenship refers to putting an organization's commitment to social and environmental responsibility into practice locally. True False

False

This inter-American organization (North and South America) was created to unite organizations focusing on corporate social responsibility from Canada to Chile. Business for Social Responsibility. Canadian Business for Social Responsibility. Foundacion Empresay Sociedad. Forum Empresa.

Forum Empresa.

Philanthropic funding and public relations are two examples of corporate social responsibility: Policy instruments of the Corporate Social Stewardship phase Policy instruments of the Corporate Social Responsiveness phase. Drivers of the Corporate Social Responsiveness phase. Drivers of the Charity Principle phase.

Policy instruments of the Corporate Social Stewardship phase

Corporate power refers to: The capability of corporations to influence government, the economy, and society, based on their organizational resources. The capability of CEOs to influence product development, employee morale, and currency indices, based on their organizational resources. The capability of politicians to influence corporations, employees, and unions, based on their organizational resources. The capability of competitors to influence legislation, trade, and the stock market, based on their organizational resources.

The capability of corporations to influence government, the economy, and society, based on their organizational resources.

Reason(s) for adopting an enlightened self-interest approach is (are): Reasonable short-run costs are incurred, but socially responsible activities are promoted. The public's attitude toward the company is positive in the long run. The stockholders' pressures for short-run profits are satisfied. All of the above.

All of the above.

Corporate social responsibility is the idea that businesses interact with the organization's stakeholders for social good while they pursue economic goals. True False

True

In the first stage of corporate citizenship, the elementary stage, managers are uninterested and uninvolved with social issues. True False

True

Which of these is not an objective of the Global Reporting Initiative (GRI)? a. Providing tax incentives for global corporate citizens b. Reflecting the interests of business, labor, civil society, and financial markets. c. Combining long-term profitability with ethical goals, social justice, and environmental care. d. Measuring social performance across companies.

a. Providing tax incentives for global corporate citizens

Good corporate citizens: Strive to conduct all business dealings in an ethical manner. Make a concerted effort to balance the needs of all stakeholders. Work to protect the environment. All of the above.

all of the above

Positive reputation can be valued as an intangible corporate: Expense. Asset. Liability. Charity.

asset

When undertaking social initiatives, a company: a. Must take out social responsibility insurance. b. May sacrifice short-term profits c. Risks going bankrupt in nearly all cases. d. Will always receive long-term profits.

b. May sacrifice short-term profits

Which of the following companies is being the most socially responsible? A company changing its product design to comply with regulatory mandates. A company trying to maximize its profits and then contributing to an environmental protection fund. A company trying its best to operate in a way which will help local students get education and jobs A company halting its production of toxic gases after it discovered that people objected to this practice and threatened legal action.

A company trying its best to operate in a way which will help local students get education and jobs

Global social audit standards concentrate on: Internally focused economic benefits for the firm. Externally focused social benefits for the environment. Externally focused social benefits for key stakeholders. All of the above.

All of the above.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because: Business people do not have the skill-set to solve societal problems. The private sector is not mandated to solve these issues. Both A and B None of the above.

Both A and B

Which of the following statements is true about corporate social responsibility? Businesses should monitor and prevent social problems in advance of their becoming major issues. A company should seek maximum profits from its operations in order to provide the best for society. Corporations should be accountable for any actions that affect people, their communities, and the environment. Both A and C, but not B.

Both A and C, but not B.

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of: Corporate/Global Citizenship. Corporate/Business Ethics. Corporate social responsiveness. Corporate social stewardship.

Corporate/Global Citizenship.

BSR (formerly Business for Social Responsibility) helps its 300 member companies: Develop sustainable business strategies. Discover tax shelters for social program expenditures. Conduct social audits. Lobby Congress for socially responsible legislation.

Develop sustainable business strategies.

The issue of reactive management policies occurs in which stage of global corporate citizenship? Multiple Choice Integrated. Transforming Engaged.

Engaged.

he most significant motivator of corporate social reporting is: Employee demand. Ethical concerns Financial concerns. Government reporting requirements.

Ethical concerns

The iron law of responsibility says that: In the short run, sacrifice social goals for economic goals. In the long run, those who do not use power responsibly will lose it. Law is most important, more than social or economic responsibility. In the long run, economic responsibility leads to social responsibility.

In the long run, those who do not use power responsibly will lose it.

Which of the following is not a driver of the Corporate Social Responsiveness phase of Corporate Social Responsibility? Religious/ethnic beliefs Stakeholder pressures. Social unrest/protest. Public policy/government regulations.

Religious/ethnic beliefs

According to Barlow v. A.P. Smith Manufacturing: Socially responsible actions are an investment in the future, thus an allowable expense. Socially responsible actions must be approved by a majority of the firm's stakeholders Charitable contributions were bad corporate investments for the short term. The laws prohibited charitable contributions, at that time.

Socially responsible actions are an investment in the future, thus an allowable expense.

A social audit is a systematic evaluation of an organization's social, ethical, and environmental performance. True False

True

Companies demonstrate global corporate citizenship by: a. Building reactive stakeholder partnerships. b. Finding business opportunities that serve society. c. Integrating concern for both financial and social performance. d. Both B and C, but not A.

d. Both B and C, but not A.

Being socially responsible means that a company must abandon its other missions. true false

false

Global corporate citizenship activities help companies create value, reputation, and competitive advantage. true false

true

Huge businesses can disproportionately influence politics, shape tastes, and dominate public discourse true false

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 false

true