chapter 3 Bus100

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

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

enlightened self-interest

The view that holds it is in a company's self-interest in the long run to provide true value to its stakeholders.

B corporation

A business that explicitly seeks to blend its social and environmental objectives with its financial goals.

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

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. -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 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.

social entrepreneurship

A person or group of people who identify a social need and use their entrepreneurial skills to address this need.

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

B Corporation

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. -Both of these answers are correct. -Neither of these answers is correct. -The private sector is not mandated to solve these issues.

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.)

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. -Building reactive stakeholder partnerships. -Integrating concern for both financial and social performance. -Finding business opportunities that serve society

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

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. -Corporations should be accountable for any actions that affect people, their communities, and the environment. -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. -A company should seek maximum profits from its operations in order to provide the best for society.

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.

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

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

transparency

Clear public reporting of an organization's performance to various stakeholders.

The capability of corporations to influence government, the economy, and society, based on their organizational resources is called: -CEO power. -Corporate media. -Corporate citizenship. -Corporate power

Corporate power.

What is one advantage of operating as a B corporation? -They are tax-free organizations. -Government certifications are frequently conferred. -Audits are not required. -Financial reporting is not required.

Government certifications are frequently conferred.

social entrepreneurs

Like traditional entrepreneurs, individuals who act boldly to pursue opportunities, attract support, and build new organizations to create and sustain social rather than economic value.

social ventures

Organizations founded by social entrepreneurs.

global corporate citizenship

Refers to putting an organization's commitment to social and environmental responsibility into practice worldwide.

iron law of responsibility

The belief that those who do not use their power in ways that society considers responsible will tend to lose their power in the long run.

corporate power

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

creating shared value

The creation of economic value in ways that also generate value for society.

reputation

The desirable or undesirable qualities associated with an organization or its actors that may influence the organization's relationships with its stakeholders.

corporate social responsibility

The idea that businesses should act in a way that enhances society and their stakeholders and be held accountable for any of its actions that affect people, their communities, and their environment.

corporate social reporting

The public reporting of information collected by the organization or another party during a social audit.

corporate citizenship

This term refers to the actions corporations take to put their commitments to corporate social responsibility into practice worldwide.

A social audit

a systematic evaluation of an organization's social, ethical, and environmental performance.51 It is a process for transparently reporting on this performance and for measuring a company's effects on society