Global Corporate Citizenship Test Questions Chapter 18: The Community and the Corporation

Which of the following statements is true about the relationship between business and the community? A. It is one of mutual interdependence. B. Business has more responsibility towards community than the community does towards business. C. Communities possess more social power than businesses do. D. All of the above statements are true.

A. It is one of mutual interdependence

The term civic engagement describes: A. The active involvement of businesses and individuals in improving communities. B. A competitive, free market environment. C. Strong governmental regulation to control businesses at the municipal level. D. A close and collaborative business-government relationship.

A. The active involvement of businesses and individuals in improving communities

What is one reason that firms partner with communities to increase economic development? A. To expand environmental sustainability. B. To develop workplace skills. C. To control the rate of entrepreneurship. D. To avoid paying higher taxes.

A. To expand environmental sustainability

As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming: A. Less important. B. More important. C. Obsolete because of social media. D. A liability because of negative media.

B. More Important

Another term for corporate giving is corporate: A. Welfare. B. Goodwill. C. Philanthropy. D. Citizenship.

C. Philanthropy

Business depends on the community for: A. Education. B. Public services. C. Transportation systems. D. All of the above.

D. All of the above

*What is the primary goal of a community relations department? A. To improve the financial bottom line. B. To build relationships with important community groups. C. To collaborate with other company teams to create policy. D. Both B and C, but not A.

D. Both B and C, but not A

Social capital is a phrase that refers to all of the following, except: A. The goodwill that is engendered by the fabric of social relations. B. A close relationship between companies and groups in the community. C. The norms and networks that enable collective action. D. Funds set aside for company events.

D. Funds set aside for company events