Corporate Social Responsibility - Rutgers - Test 1

1. which of the following BEST describes social responsibility

Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders *

31. The Reactive-Defense-Accommodative-Proactive Scale is BEST described by which of the following?

A method for assessing a company's strategy and performance with one particular stakeholder *

Arguments against CSR

1. Classical economics 2. Business not equipped 3. Dilutes business purpose 4. Too much power already 5. Global competitiveness

Four components of CSR

1. Economic 2. Legal 3. Ethics 4. Philanthropic

6 Reasons businesses embrace CSR

1. Innovation 2. Cost savings 3. Brand differentiation 4. Long-term thinking 5. Customer engagement 6. Employee engagement

42. Which of the following internal control mechanisms would be the most difficult for a small company to implement?

e. Having several employees involved in with each transaction, decision, or organizational issue

48. Environmental regulations for social reasons have been necessary because of which of the following?

e. Social reasons have led to regulations such as environmental protection since most companies are unwilling to pay for these costs voluntarily.

32. As fiduciaries, members of a company's board of directors are fundamentally expected too...

e. exercise both due diligence and due loyalty

39. Shareholders resolutions...

e. may prompt a company to change its practices

21. The ______ model explicitly acknowledges the dialog that exists between a firm's internal and external environment .

e. stakeholders interaction

43. Perhaps the strongest argument against high levels of compensation for CEO's is...

e. that the CEO is usually just a figurehead, and the board of directors makes decisions

Sustainability

emphasizes longer-term concern for people, plants, and the planet

Corporate Social Responsibility

emphasizes obligation and accountability

Corporate Social Performance

emphasizes outcomes and performance

12. In the 1990's, employees turned to a more holistic approach to work and life, characterized by all of the following, except...

employee volunteerism in the community

16. Employee commitment develops from...

employees who believe their future is tied to that of the organization and are willing to make personal sacrifices for the organization

5. Which of the following is NOT one of the four types of corporate social responsibility?

environmental *

13. The flatter organizational hierarchies brought about due to the economic instability of the 1980's and early 1990's cause all of the following except...

increasing empowerment of lower-level employees

CSR Greenwashing

intentionally seeking to convey the image of a socially responsible firm when the evidence of their practices does not support this conclusion

14. Implementing social responsibility on a global level is complex because...

of the need to balance economics responsibility with other responsibilities *

7. Business ethics refers to...

principles and standards that guide behavior in the business world*

11. Those groups to whom a company is responsible are collectively known as...

stakeholders *

40. When fundamental expectations about social responsibility are not met by publicly-traded companies,

the confidence that investors have in corporations, mutual fund managers, market analysts, and others will be severely tested. *

6. Society's primary method of enforcing its requirements regarding business behavior is through...

the legal system *

3. In order for any social responsibility initiative to have strategic significance in a company, it must be fully supported and values by...

top management*

Corporate citizenship

views companies as citizens and all this implies

Political CSR

when businesses turn into political actors by engaging in public deliberations, collective decisions, etc.

27. Which of the following was NOT an action taken by Green Mountain Coffee in an effort to manage its reputation?

Publicly ridiculing other coffee manufacturers for poor quality and unethical harvesting procedures *

24. By banning the importation of goods made by children under the age of 15 through indentured or forced labor, the U.S government exercised which type of power?

Utilitarian *

53. How could regulation on business result in a "hidden tax" to consumers?

a. Businesses could pass regulatory costs on to their consumers in the form of higher prices.

46. Because no government system is perfect,

a. Legal and regulatory systems are consistently evolving and changing in response to social institutions, including business.

56. What is the main argument presented by proponents of complete deregulation?

b. Less government intervention would allow business markets to work more effectively

22. Which of the following is NOT normally considered a primary stakeholder?

b. Media

44. What is the purpose of the Organization for Economic Co-operation and Development (OECD) Corporate Governance Principles?

b. To formulate minimum standard of fairness, accountability transparency, and responsibility in business practice

37. What is the primary concern of a board of directors?

b. To monitor the decisions made by managers in behalf of the company

33. Which of the following BEST describes the stakeholder model of corporate governance?

b. a company has responsibilities to many stakeholders including investors, employees, suppliers, government agencies, and the community

20. Which stakeholders provides the goods and services necessary for an organization to function effectively and efficiently?

b. suppliers

59. The Pet Food Institute, the Tobacco Institute, and the American Booksellers Association are all examples of...

b. trade associations

26. The outcomes associated with positive stakeholder relationships are

both long and short term in nature *

4. Companies with less than 100 employees count for ____ percent of total employment in the United States.

d. 70 ( check back on this one)

Social Screening

A technique used to screen firms for socially-responsible investment purposes

2. To which of the following forms of business can the concept of social responsibility be applied?

Any forms or business, from a sole proprietor to a large corporation*

The Triple Bottom Line Perspective

Business must attend to three spheres of sustainability 1. Economic 2. Social 3. Environmental

29. When Hormel Foods implemented an Internet-based procurement system, Hormel's relationships with its suppliers were affected in all of the following ways except...

By making Hormel's suppliers more attractive to other food companies which would increase the prices the suppliers could change *

The Stakeholder Bottom Line Perspective

CSR can't be fully comprehended unless it includes impacts and measures on consumers, employees, the community, and other stakeholders

49. Which industry did Ralph Nader's 1965 book criticize for ignoring consumers' interest in pursuit of increased profits?

D. automobiles

60. Which of the following is NOT one of the steps delineated by the United States Sentencing Commission to demonstrate the existence of an effective compliance program?

Develop a well-staffed internal ethics office to handle any reports of misconduct

Corporate Social Responsiveness

Emphasizes action and activity

9. Developing a code to aid employees in their decision making is an example of an activity for which type of social responsibility?

Ethical *

Creating Shared Value

Generating economic value in a way that also produces value for society

35. who are the principals and agents of a corporation?

Owners and Executives, respectively

Socially Responsible Investing

Investing because...... 1. More reliable research on CSP 2. Investment firms using social criteria have a solid track record 3. The Socially Conscious 1960s Generation is making investment decisions

28. Which of the following statements is FALSE concerning how a company should communicate after a crisis?

It is better to wait until the company has a complete understanding of the crisis so that stakeholders will not be led astray by partial information

Negative Screening

Screening out or avoiding socially irresponsible firms like tobacco and gambling

30. What asset resides in relationships, and is characterized by mutual goals and trust, and smoothes internal and external transactions and processes?

Social capital *

10. For.a local beauty shop that is a privately owned business, which of the following is NOT likely to be a stakeholder?

The New York Stock Exchange (NYSE) *

Classical economics

The view that a business' only goal is to maximize profits for owners

25. On what two factors is a stakeholder's urgency based?

Time sensitivity and the importance of the claim to the stakeholder. *

17. Which type of investor causes the MOST problems for the CEO's when developing strategic plans?

a. Shareholders seeking short-term gains

50. Which act is the principle tool employed by the federal government to prevent businesses from restraining trade and monopolizing markets?

a. Sherman Antitrust Act

55. Which of the following BEST describes the Better Business Bureau (BBB)?

a. The BBB is a self-regulatory association that helps resolve problems between businesses and consumers.

36. In response to the collapse of the U.S financial system in the late 2008, the federal government has become involved in corporate governance to a degree not seen since...

a. The Great Depression

47. When just one business provides a good or service in a particular market, what results?

a. monopoly

Positive Screening

actively screening in socially responsible firms

8. Minimal responsibility primarily involves...

addressing the compliance concerns of stakeholders in regards to legal and economic matters *

45. which of the following statements BEST describes the current trends in corporate governance?

c. Forces are driving businesses toward the stakeholder orientations and more formal governance

41. Which of the following is LEAST likely to be a use of internal controls in an organization?

c. Measuring the effect of advertising on sales

38. which of the following is NOT one of the responsibilities that will affect boards of directors int he future?

c. Serving on boards will require less of a commitment than in the past

34. Corporate governance requires a system of _________ similar to the distribution of power between executive, legislative, and judiciary branches of the US government.

c. checks and balances

54. Despite business concerns about the cost of regulation, the benefits include all of the following except...

c. fewer consumer complaints

58. The process of working to persuade and/or government officials to favor a particular position in decision making is known as...

c. lobbying

who are the principals and agents of a corporation?

c. owners and executives, respectively the principals of a corporation are the owners or investors, referred to as shareholders or stockholders. The agents of the corporation are generally considered to be the board of directors, officers or other persons the corporation authorizes to act on its behalf.

19. Under the historical and traditional views of business, who has considered to be a stakeholder?

c. owners, customers, employees, and business partners

57. What effects did the 2008-2009 financial crisis have on the call for deregulation?

c. the 2008-2009 financial crisis led the U.S. and other countries to begin to reverse the deregulatory trend of the previous decades.

52. Administrative spending for federal regulatory agencies, which is used as a measurement of regulatory costs, has...

d. increased steadily over the years as the world of business has continues to grow and become more complex

18. Overall, evidence supports that social responsibility...

d. is positively associated with return on investment, return on assets, and sales growth

15. About how many consumers said they would likely switch to brands associated with a good cause if price and quality were no compromised?

e. 80 percent (check back on this one)

23. Which of the following does NOT describe the treatment of stakeholders on a worldwide basis?

e. A company's treatment of domestic stakeholders is generally the same as that of foreign stakeholders