53. Which approach to corporate social responsibility (CSR) assumes that there are no
external consequences to the actions of the corporation and its managers?
54. The _____ approach to corporate management refers to the perspective that a
corporation has an obligation to society over and above the expectations of its shareholders.
55. Which of the following best illustrates the social contract approach to corporate
management?
56. Hoffmann Enterprises (HE), a manufacturer of industrial goods, primarily focuses on
meeting the demands of the market with quality products. It also undertakes environmental
protection endeavors that promote the use of renewable sources of energy. HE illustrates the
_____ approach to corporate management.
57. Which of the following statements is true of the social contract approach to corporate
management?
58. What is the difference between the old social contract approach and the modern social
contract approach to corporate management?
59. According to the _____ to management, by recognizing stakeholders and not just
shareholders, corporations must maintain a long-term perspective rather than simply delivering
quarterly earnings numbers.
60. Henry Ford II recognized that _____.
61. The policy of corporate social responsibility (CSR), where doing what’s best for the
customers translates into what’s best for the company in the long run, exemplifies the _____.
62. Which of the following, according to Joseph F. Keefe, is a major trend behind the
phenomenon of corporate social responsibility (CSR)?
63. According to Joseph F. Keefe, which of the following is a major trend behind the
corporate social responsibility (CSR) phenomenon?
64. According to Joseph F. Keefe, which of the following is true of the major trends behind
the corporate social responsibility (CSR) phenomenon?
65. A true statement about corporate social responsibility (CSR) initiatives is that they _____.
66. Corporations that experiment with corporate social responsibility (CSR) initiatives run the
risk of creating adverse results as:
67. The approach that considers a company’s social, financial, and environmental impact
rather than focusing solely on its financial impact is the _____ approach.
68. Which of the following illustrates a firm having a triple bottom-line (3BL) approach?
69. A criticism of the triple bottom-line (3BL) approach is that _____.
70. Organizations pursuing a clearly defined sense of social conscience in managing their
financial responsibilities to shareholders, their legal responsibilities to their local community and
society as a whole, and their ethical responsibilities to do the right thing for all their stakeholders
follow a(n) _____ corporate social responsibility (CSR) initiative.
71. In _____ corporate social responsibility (CSR), organizations take a philanthropic
approach by underwriting specific initiatives to give back to the company’s local community or to
designated national or international programs.
72. Bector Airlines supports relief camps in the Republic of Cadmia with donations of both
money and employee-donated volunteer hours. It also provides packaged food in times of natural
crises such as hurricanes, earthquakes, etc. This is an example of _____ corporate social
responsibility (CSR).
73. _____ corporate social responsibility (CSR) refers to the philanthropic approach to CSR in
which organizations target programs that will generate the most positive publicity or goodwill for
the organization but which runs the greatest risk of being perceived as self-serving behavior on
the part of the organization.
74. _____ is one of the newest and increasingly questionable practices in the world of
corporate social responsibility (CSR).
75. The practices of making a company’s operations _____ to offset damage to the
environment through their greenhouse gas emissions was initially developed as a solution for
those industries that face significant challenges in reducing their emissions.
76. Another term for corporate social responsibility (CSR) is _____.
77. The definition of corporate social responsibility as the actions of an organization that
prioritize social benefit over maximizing profits and meeting legal obligations assumes that:
78. The most famous advocate of the instrumental approach model to corporate social
responsibility is the Nobel Prize-winning economist _____.
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79. Why is it difficult for many organizations to make the transition from corporate social
responsibility (CSR) as a theoretical concept to CSR as an operational policy?
80. Organizations pursue operational efficiency through detailed monitoring of their _____,
that is, how much money is left after all the bills have been paid from the revenue generated from
the sale of their product or service.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-05 Explain the triple bottom-line approach to corporate performance measurement.
Fill in the Blank Questions
81. _____ implies that an organization is responsible for meeting all its legal and social
obligations.
82. _____ refers to the actions of an organization that target toward achieving a social benefit
over and above maximizing profits for its shareholders and meeting all its legal obligations.
83. _____ implies that an organization operates with an awareness of its obligation to the
society.
84. The _____ approach to corporate management states that the only obligation of a
corporation is to maximize profits for its shareholders.
85. _____ argued that in the instrumental approach it would be unethical for a corporation to
do anything other than deliver profits for its investors.
86. According to Milton Friedman, it would be unethical for a corporation to do anything other
than deliver the profits for which its investors have entrusted it with their funds in the purchase
of shares in the corporation. This illustrates the _____ to corporate social responsibility (CSR).
87. The _____ approach to corporate management is considered simplistic because it focuses
on the internal world of the corporation itself and assumes that there are no external
consequences to the actions of the corporation and its managers.
88. The _____ refers to the perspective that a corporation has an obligation to society over and
above the expectations of its shareholders.
89. According to the modern social contract approach, by recognizing stakeholders rather than
just their _____, corporations must maintain a long-term perspective than just delivering quarterly
earnings numbers.
90. Companies that support the policy of _____ believe that doing what’s best in the long-term
interest of the customer is ultimately doing what’s best for the company.
91. According to Joseph F. Keefe, _____ is a major trend behind the corporate social
responsibility (CSR) phenomenon that does not allow companies to conceal their business
practices.
92. Many companies’ annual reports reflect a _____ approach that includes updates on their
social and environmental activities in addition to their bottom-line financial performance.
93. _____ corporate social responsibility (CSR) is the most legitimate type of CSR.
94. When organizations pursue a clearly defined sense of social conscience in managing their
financial responsibilities to shareholders, their legal responsibilities to their local community and
society as a whole, and their ethical responsibilities to do the right thing for all their stakeholders,
they are following an _____ corporate social responsibility (CSR) initiative.
95. _____ corporate social responsibility (CSR) is a philanthropic approach to CSR in which
organizations underwrite specific initiatives to give back to the company’s local community or to
designated national or international programs.
96. Critics have argued that, from an ethical perspective, _____ corporate social responsibility
(CSR) is immoral since it represents a violation of shareholder rights if they are not given the
opportunity to vote on the initiatives launched its name.
97. The _____ approach to corporate social responsibility (CSR) argues that philanthropic
initiatives are authorized without concern for the corporation’s overall profitability.
98. _____ corporate social responsibility (CSR) encompasses philanthropic activities targeted
toward programs that generate the most positive publicity or goodwill for the organization.
99. _____ corporate social responsibility (CSR) runs the greatest risk of being perceived as
self-serving behavior on the part of the organization.
100. One of the newest and increasingly questionable practices in the world of corporate social
responsibility (CSR) is the notion of making operations “_____” in such a way as to offset
whatever damage is being done to the environment through greenhouse gas emissions by
purchasing credits to balance out emissions.
101. The _____ was created in November 2006, when the Deutsche Bank teamed up with more
than a dozen investment banks and five carbon-trading organizations in Europe to promote the
standardization of carbon trading on a global scale.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 04-06 Discuss the relative merits of carbon-offset credits.
Essay Questions
102. Explain corporate social responsibility (CSR) and the assumption on which it operates.
103. Differentiate between the instrumental approach and the social contract approach to
corporate management.
104. Depending on the actions taken by a corporation, some stakeholders will be positively
affected and others will be negatively affected. Explain.
105. Discuss the difference between ethical, altruistic, and strategic types of corporate social
responsibility (CSR).
106. Explain the practice of making a company’s operations “carbon neutral.”