MNGT 482 Ethics Chapter 3 (1)

This Switzerland-based pharmaceutical firm was an early adopter of the Global Compact and used it to update its code of conduct.

Novartis

Some companies have created a department of corporate citizenship to:

Centralize under common leadership wide-ranging corporate citizenship functions

The emerging trend in gathering audit information directly from workers using their mobile phones is called:

Crowd-sourcing

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

Consumer through high prices

p. 59 BSR (formerly Business for Social Responsibility) helps its 300 member companies:

Develop sustainable business strategies. --> "surveyed its more than 300 members to determine how they had organized to carry out their citizenship functions." p. 59 Chapter 3

There remain regional differences in the corporate citizenship challenges facing businesses due to:

Differences in attitudes, beliefs and culture

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

Policy instruments of the Corporate Social Stewardship phase

According to the scholar Simon Zadek six benefits of social audits include all of the following except: 1. help businesses know what is happening within their firm 2. understand what stakeholders think about and want from the business 3. tell stakeholders what the business has achieved 4. strengthen the loyalty and commitment of stakeholders 5. Outperfrming competitors financially in a businesses' industry. 6. enhance the organization's decision making 7. improve the business's overall performance

5. Outperfrming competitors financially in a businesses' industry. p. 63 Chapter 3

According to a survey conducted by The Economist in 2008, how many respondents say corporate citizenship can help increase their companies' profits?

74%

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, Corporate Citizenship, Social Responsibility, or enlightened self-interest?

Global Corporate Citizenship

The Universal Declaration of Human Rights states that each person:

Has the right to a standard of living adequate for the health and well-being of himself and of his family

The iron law of responsibility says that:

In the long run, those who do not use power responsibly will lose it. Chapter 3

The major focus of ISO 14001 is to

Support environmental management standards. --> "audit standards can be developed by global nongovernmental organizations or standard-setting organizations. A number of such organizations have developed standards to judge corporate performance" p. 64 Chapter 3

Sanford Limited, a small fishing company in New Zealand, made the following commitment(s) in its first triple bottom line report released in 2007:

To maximize positive social outcomes and economic growth and prosperity.

Corporate social responsibility (CSR) means that a corporation should:

be held accountable for any of its actions that affect people, their communities, and their environment

All of the following are examples of the phases of Corporate Social Responsibility except

corporate charity principle

Which of the following is an argument in favor of corporate social responsibility?

discourages government regulation

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

economic growth

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

paternalistic programs --> "Other business leaders, like automaker Henry Ford, developed paternalistic programs to support the recreational and health needs of their employees. These business leaders believed that business had a responsibility to society that went beyond or worked along with their efforts to make profits." p. 50 Chapter 3

A company who complies with the laws and regulations set by the government is:

Meeting the minimum level of social responsibility expected by the public

When undertaking social initiatives, a company:

May sacrifice short-term profits

Triple bottom line disclosure is primarily driven by:

Noneconomic drivers.

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: a. elementary b. integrative c. innovative d. transforming

Transforming stage. ---> " Companies at this stage have visionary leaders and are motivated by a higher sense of corporate purpose." "partnerships that help the environment, the community, and the company" p. 62 Chapter 3

Financial, social and environmental results are reported together in a firm's:

Triple bottom line report. aka Integrated report p. 66 Chapter 3

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

Forum Empresa - "created an as inter-American organization (North and South America) and represents 19 countries in the region and a combined total of more than 3,300 affiliated businesses." p. 60 Chapter 3

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

A company breaking past records by maximizing quarterly profits

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.

Scholars have found:

A positive association between social and financial performance

Which of the following is not a motivation for publishing a corporate social report? a. incurring reputational damage from exposing any problems publicly b. Avoiding transparency

Avoiding transparency

Once a company enters the innovative stage of corporate citizenship, it will: a. interact with and listen to stakeholders b. begin reporting its efforts to stakeholders c. adopt formal policies d. step up its philanthropic giving

Begin reporting its efforts to stakeholders

When a company decides to publicize information collected in a social audit, this is called:

Corporate social reporting p. 64 Chapter 3

Executive conscience, acts of charity, and philanthropic funding are examples of: a. corporate responsibility b. corporate citizenship c. corporate social stewardship

Corporate social stewardship

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

Corporate/Global Citizenship Chapter 3

The Ronald McDonald House charity, operated by McDonald's has been criticized for:

Diverting attention away from the company's contributions to the nation's obesity epidemic.

According to Philip H. Mirvis' and Bradley K. Googins' model, how many stages are there of global corporate citizenship?

Five - Elementary, Engaged, Innovative, Integrated, and Transforming p. 61 Chapter 3

Companies see the need to build more coherent initiatives as they move into the: a. elementary b. innovative c. integrated d. transforming

Integrated stage. --> "Mirvis and Googins cite the example of Asea Brown Boveri (ABB), a Switzerland-based multinational producer of power plants and automation systems, which carefully coordinates its many sustainability programs from the CEO level down to line officers in more than 50 countries where the company has a presence. Integrated companies may adopt triple bottom line measures turn to external audits and enter into ongoing partnerships with stakeholders." p. 62 Chapter 3

Which of the following is not a driver of the Corporate Social Responsiveness phase of Corporate Social Responsibility?

Religious/ethnic beliefs

Which of the following is an argument against corporate social responsibility?

Requires skills businesses may lack.

A systematic evaluation of an organization's social, ethical, and environmental performance is called a(n):

Social audit p. 63 Chapter 3

The United Nations Global Compact is funded by:

Voluntary government and foundation contributions. ---> "audit standards can be developed by global nongovernmental organizations or standard-setting organizations. A number of such organizations have developed standards to judge corporate performance" p. 64 Chapter 3

Global corporate citizenship is more than espoused values, it requires:

action - "refer to the ACTIONS they take to put their commitments to corporate social responsibility into practice"