Chapter 3: Corporate Social Responsibility and Citizens
Being socially responsible means that a company must abandon its other missions. True or False
False
When undertaking social initiatives, a company:
Risks going bankrupt in nearly all cases. Will always receive long-term profits. -May sacrifice short-term profits. Must take out social responsibility insurance.
Why would businesses seek to discourage government regulation through acts of corporate social responsibility?
-Absence of regulation provides businesses with increased freedom in their decision making. Money saved from lack of regulation could be spent on charities. Businesses need to keep regulators off balance, and responsible actions accomplish this objective. Positive media attention through socially responsible actions discourages regulation
Match the stage of global corporate citizenship with its correct strategic intent listed. Elementary Engaged Innovative Integrated Transforming
Legal compliance. License to operate. Business case. Value proposition. Market creation or social change.
When a business applies resources to social programs, some argue that they risk lowering which business indicators? (Check all that apply.)
Managerial discretion The firm's reputation -Company profits -Their economic efficiency
In the United States, when did the idea of corporate social responsibility first begin?
Nineteenth century Twenty-first century Eighteenth century -Twentieth century
Which type of corporate social reporting has taken off in Japan, Brazil, Mexico, and Spain, according to the KPMG survey in 2017?
Non-financial data sources Employee headcount reports -Integrated reporting Foreign investment financials
Which statement(s) below are accurate regarding B corporation certification? (Check all that apply.)
Performance is evaluated based strictly on financial results. -Performance is evaluated by the organization's impact on the community, employees, consumers, and the environment. -They must meet independent, social and environmental performance standards. They are regularly assessed by the nonprofit organization, C Labs.
A major trend in corporate social reporting is _____.
providing a detailed individual report for each social area -publishing a single integrated report that combines legally required financial data with social and environmental results publishing a single integrated social report that excludes financial data providing only legally required reports and only when requested by the government
The core mission of a social entrepreneur is to create and sustain ______.
executive pay rates social regulations -social value economic value
An example of a firm taking action that abuses the iron law of responsibility is _____.
providing emergency aid in the face of disaster responding to stockholders' demands for dividends -discouraging union membership introducing technology to help farmers
The Global Reporting Initiative (GRI) Guidelines are characterized by which of these statements? (Check all that apply.)
The Guidelines are developed only in the United States. -Many global business representatives work together to develop the Guidelines. Governmental agencies across all nations are excluded from the GRI process. -The Guidelines provide common metrics for firms to compare their performance with other firms.
What is the primary purpose of the RepTrak® model?
To determine which American companies are unethical To count the number of countries using CSR -To quantify how CSR is used across various industries and nations To shame companies that do not use CSR
The role that most influenced a firm's corporate social responsibility program, according to the BSR survey, was the _____.
-CEO Employee Investor Consumer
Why is addressing economic performance no longer enough for business?
-Many investors link economic performance to social issues. Social performance has replaced legal compliance as the firm's primary goal. Social critics have become too powerful to be ignored. Social performance has replaced economic performance as the firm's primary goal.
The benefit(s) of publishing social audit performance results include(s) _____. (Check all that apply.)
-identifying stakeholder needs -improving the firm's overall performance -helping businesses gauge social progress limiting the loyalty of stakeholders
The negative effect(s) of corporate power can include _____. (Check all that apply.)
-political manipulation -price-fixing -employment reduction over-stimulated competition
A recent BSR survey found that the goal of most corporate citizenship managers is to integrate corporate social responsibility with a company's _____. (Check all that apply.)
-values -operations logo -culture
The iron law of responsibility is defined as _____.
those who do not use power in a socially responsible way will tend to gain more power those who do not use power in a financially responsible way will tend to lose power -those who do not use power in a socially responsible way will tend to lose power those who use power in a socially responsible way will tend to lose power
The capability of corporations to influence government, the economy, and society, based on their organizational resources is called:
Corporate citizenship. -Corporate power. Corporate media. CEO power.
Which term indicates that harm to society should be corrected?
Corporate philanthropy -Corporate social responsibility Global corporate citizenship Corporate citizenship
What term is used to define the organizations created by social entrepreneurs?
Nonprofit organizations Venture capital clubs -Social ventures Social entrepreneurship
What is the current primary motivator for most companies to publish social responsibility reports, according to one study?
Tax breaks Economic interests -Ethical concerns Legal issues
True or false: According to the Global Reporting Initiative (GRI), when companies consider sustainability, they must consider economic, environmental, social, and governance areas of their performance and impacts.
True
How did the United States initially attempt to restrain corporate power? (Check all that apply.)
-Antitrust legislation -Banking regulations Consumer privacy rules -Consumer protection laws
The reputation of a firm refers to which company characteristic?
-Desirable and undesirable qualities Manipulation of the media Tangible assets Control of the firm's external stakeholders
A social audit is a systematic evaluation of an organization's performance related to which business goal(s)? (Check all that apply.)
-Environmental Financial -Social -Ethical
Visionary CEOs clearly see citizenship as an opportunity to create which benefits for their organizations? (Check all that apply.)
-Gain a competitive advantage -Create value for the firm Earn exemptions from certain regulations Increase employee time off
What are the specific concerns regarding the financial costs to firms who implement corporate social responsibility (CSR)? (Select all that apply.)
-Hidden costs are often passed on to stakeholders. CSR significantly reduces the majority of production costs. CSR often requires hush-money payments to stakeholders. -Unequal costs among competitors often develop.
Major corporations influence the community in what way(s)? (Check all that apply.)
-Tax base -Standard of living -Job creation Law enforcement
Why do government officials typically support corporate social responsibility goals?
-The government wants to ensure business compliance with regulations that protect the public. Government officials only support business CSR goals when foreign trade is involved. Government officials are bound by law to support business goals. It is one way to justify raising corporate taxes.
The positive effect(s) of corporate power can include _____. (Check all that apply.)
-economic opportunities divided markets competition. -helpful products -useful technologies
What percentage of the 4,900 large and mid-cap firms surveyed issued CSR reports, according to the KPMG survey in 2017?
60 percent 49 percent 16 percent -75 percent
Modern corporations should be socially responsible because they:
Are responsible to the stockholders of the company. Generate dividends for the company stockholders. Are highly profitable. -Create jobs, influencing the lives of employees.
Identify the difference(s) between a B corporation and a benefit corporation. (Check all that apply.)
B corporations use the power of business to promote social causes, but benefit corporations focus primarily on helping the environment. -B corporations are certified entities, but benefit corporations are incorporated. B corporations concentrate only on consumer protection, while benefit corporations emphasize communities. -B corporations must achieve a minimum performance score to retain their status, but benefit corporations self-report their progress.
A for-profit business model that blends social and financial goals for the purpose of solving social problems is called a(n)
B2C corporation. -B corporation. B2B corporation. NGO.
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 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.
How does corporate social responsibility (CSR) differ from corporate citizenship?
CSR means taking legal actions, and corporate citizenship requires firms to be financially responsible. -Corporate citizenship means taking social actions, and CSR obligates firms to be socially responsible. CSR means taking social actions, and corporate citizenship obligates firms to be socially responsible. CSR means avoiding social actions, and corporate citizenship prevents firms from being socially responsible.
Corporate social stewardship Corporate social responsiveness Corporate/business ethics Corporate/global citizenship
Choice, public relations public relations political lobbying CEO leadership ethics sustainability audits/reports
What is the current business trend in managing social, economic and legal responsibilities?
Emphasizing social responsibility with no concern for legal or economic impacts -Balancing the need to meet all social, economic and legal challenges Guaranteeing profits through legal means Focusing on the return on investment for all shareholders
True or false: The RepTrak® model examines only companies in America.
False
Companies that are guided by enlightened self-interest tend to have what kind of interactions with their stakeholders? (Check all that apply.)
Giving preferences to investors -Cooperating with legislators -Working closely with government regulators -Being more open to stakeholder expectations
What are some advantages of having a good corporate reputation? (Check all that apply.)
Guaranteed yearly profits -Increased attractiveness to employees -Repeat purchases by loyal customers Tax savings based on good behavior
Place the phases of corporate social responsibility in chronological order, starting with the earliest phase. Instructions Choice 1 of 4. Corporate/global citizenship toggle button Corporate/global citizenship Choice 2 of 4. Corporate social stewardship toggle button Corporate social stewardship Choice 3 of 4. Corporate social responsiveness toggle button Corporate social responsiveness Choice 4 of 4. Corporate/business ethics toggle button Corporate/business ethics
Position 1 of 4 Corporate social stewardship Position 2 of 4 Corporate social responsiveness Position 3 of 4 Corporate/business ethics Position 4 of 4 Corporate/global citizenship
Place the five stages of global corporate citizenship in their correct order. (Place Stage 1 on top.) Instructions Choice 1 of 5. Integrated toggle button Integrated Choice 2 of 5. Elementary toggle button Elementary Choice 3 of 5. Innovative toggle button Innovative Choice 4 of 5. Engaged toggle button Engaged Choice 5 of 5. Transforming toggle button Transforming
Position 1 of 5 Elementary Position 2 of 5 Engaged Position 3 of 5 Innovative Position 4 of 5 Integrated Position 5 of 5 Transforming
What is the primary purpose for government requiring an independent certification of B corporations?
So the company can avoid public audits. So the employees are confident in the firm's leaders. So the firm can receive more recognition from government. -So the firm proves they are socially responsible, not just making a claim.
True or false: As businesses have become more committed to citizenship, specialized consultancies and professional associations for managers with responsibility in this area have emerged.
True
The capability of corporations to influence government, the economy, and society, based on their organizational resources is termed
corporate social reporting. -corporate power. corporate citizenship. integrated reporting.
The concept of providing stakeholders value that results in a firm's long run self-interest is called _____.
dark self-interest the iron law of responsibility the firm's reputation -enlightened self-interest