CH 3 - Corporate Social Responsibility and Citizenship

Business leaders, like automaker Henry Ford, developed these programs to support the recreational and health needs of their employees.

Paternalistic programs.

According to Barlow v. A.P. Smith Manufacturing:

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

The core mission of a social entrepreneur is to create and sustain social rather than economic value.

True

The costs of corporate social responsibility may ultimately be passed on to the:

Consumer through high prices.

To qualify as a B corporation, a business must be certified by a state government agency.

False

When undertaking social initiatives, a company:

May sacrifice short-term profits.

An emerging business model that attempts to strategically balance the interests of all stakeholders to solve social and environmental problems is called:

B Corporation.

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

False

Organizations founded with a core mission to create and sustain social value are called social:

Ventures.

Modern corporations should be socially responsible because they:

Create jobs, influencing the lives of employees.

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

True

Which of the following examples does not show a company guided by enlightened self-interest?

A company breaking past records by maximizing quarterly profits.

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

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions.

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

True

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

False

Companies demonstrate global corporate citizenship by:

Both of these answers are correct: Finding business opportunities that serve society and integrating concern for both financial and social performance.

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because:

Both of these answers are correct. Business people do not have the skill set to solve societal problems. The private sector is not mandated to solve these issues.

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

False

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

True

Philanthropic funding and public relations are two examples of corporate social responsibility:

Policy instruments of the Corporate Social Stewardship phase.

Which of these is not an objective of the Global Reporting Initiative (GRI)?

Providing tax incentives for global corporate citizens.

Concerns about corporate social responsibility are exemplified by which of these statements?

Requires skills businesses may lack.

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

False

This inter-American organization (North and South America) was created to unite organizations focusing on corporate social responsibility from Canada to Chile.

Forum Empresa.

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally, it is called:

Global Corporate Citizenship.

What is one advantage of operating as a B corporation?

Government certifications are frequently conferred.

The iron law of responsibility says that:

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

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:

Transforming stage.

The most significant motivator of corporate social reporting is:

Ethical concerns.

Global social audit standards concentrate on:

All of these answers are correct. Internally focused economic benefits for the firm. Externally focused social benefits for the environment. Externally focused social benefits for key stakeholders.

Good corporate citizens:

All of these answers are correct. 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.

Positive reputation can be valued as an intangible corporate:

Asset

Which of the following companies is being the most socially responsible?

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

In the case Corporate Social Responsibility at Gravity Payments, which view in support of corporate social responsibility is relevant according to Figure 3.3?

Balances corporate power with responsibility.

Which of the following statements is true about corporate social responsibility?

Both of these answers are correct: Businesses should monitor and prevent social problems in advance of their becoming major issues; and corporations should be accountable for any actions that affect people, their communities, and the environment.

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

Corporate citizenship

Stakeholder partnerships, high-tech communication networks, and sustainability audits are examples of:

Corporate/Global Citizenship.

BSR (formerly Business for Social Responsibility) helps its 300 member companies:

Develop sustainable business strategies.

Those in support of corporate social responsibility believe the practice:

Discourages government regulation.

The issue of reactive management policies occurs in which stage of global corporate citizenship?

Engaged.

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

False

The term corporate power means that in the long run, those who do not use power in ways that society considers responsible will tend to lose it.

False

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

True

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

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