Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
Chapter 10: Strategic CSR
Test Bank
Multiple Choice
1. According to the textbook, the firm ______.
A. exists independently of its stakeholders
B. exists to solve social, moral, and ethical problems
C. exists only with the support of shareholders
D. does not exist independently of its stakeholders
2. In 1911, a U.S. Supreme Court ruling forced Standard Oil to ______.
A. pay its employees more fairly
B. hire members of minority groups
C. break up into separate companies
D. remove lead from its gasoline
3. Which activist organization’s activity resulted in Shell’s change of course regarding
the breakup of the Brent Spar oil platform?
A. EarthFirst!
B. Greenpeace
C. Rainforest Action Network (RAN)
D. Sierra Club
4. Which organization’s activity resulted in Citigroup’s adoption of wide–ranging
environmental metrics in the criteria it uses to grant loans?
A. EarthFirst!
B. Greenpeace
C. Rainforest Action Network (RAN)
D. Sierra Club
5. Johnson & Johnson’s “Credo” places ______ as its lowest priority.
A. employees
B. customers
C. stockholders
D. Johnson & Johnson treats all its stakeholders equally
6. According to the textbook, corporate social responsibility concerns the economic,
legal, ethical, and ______ issues that stakeholders view as directly related to the firm’s
plans and actions.
A. environmental
B. governance
C. social
D. discretionary
7. Which company was behind the creation of the Equator Principles?
A. Amazon
B. Patagonia
C. Unilever
D. Citigroup
8. Which of the following is NOT one of the components of the working definition of
strategic CSR?
A. understanding and responding to needs of stakeholders
B. responsibly addressing environmental sustainability
C. incorporating a CSR perspective within the firm’s culture and strategic planning
processes
D. any actions taken are directly related to core operations
9. For a footwear manufacturer, prospect of government legislation on outsourcing labor
issue represents which one of the three levels in Porter and Kramer’s framework for
incorporating a social decision in firms’ strategic decision-making?
A. generic social issues
B. strategic corporate philanthropy
C. value chain social impacts
D. social dimensions of the competitive context
10. Which of the following is NOT one of the three levels in Porter and Kramer’s
framework for incorporating a social decision in firms’ strategic decision-making?
A. generic social issues
B. strategic corporate philanthropy
C. value chain social impacts
D. social dimensions of the competitive context
11. When a U.S. retail clothing company outsources production overseas, it addresses
the issue of a livable wage within the United States. According to Porter and Kramer’s
framework, what is this an example of?
A. a generic social issue
B. strategic corporate philanthropy
C. value chain social impacts
D. the social dimension of a competitive context
12. For a U.S. chocolate company, addressing the issue of child labor in the countries
where cocoa beans are harvested is ______.
A. a generic social issue
B. strategic corporate philanthropy
C. a value chain social impact
D. the social dimension of a competitive context
13. What is a possible issue with Dell working with a partner to plant a tree for each
computer it sells?
A. Dell looks like it is greenwashing
B. Dell appears to exploit low-income consumers
C. Dell has no perceived expertise in planting trees
D. Dell appears to act counter to its vision
14. Which of the following is NOT an example of strategic CSR?
A. Dell plants a tree for each computer it sells.
B. Nike addresses the issue of a livable wage in countries where its products are
manufactured.
C. Budweiser provides education about alcohol abuse to high school students.
D. Unilever provides affordable cleaning products in developing countries.
15. ______ seek firms with a share price that reflects sound economic fundamentals,
while ______ seek firms based on whether the share price will rise.
A. Speculators; investors
B. Investors; speculators
C. Stakeholders; shareholders
D. Shareholders; stakeholders
16. A focus on profit optimization orients the manager toward ______.
A. short-term profits
B. the interests of ETF shareholders
C. the interests of a broader collection of constituent interests
D. all of these
17. Adopting a stakeholder perspective to decision-making in strategic CSR is that it
can correct what critics have said is a tendency to prioritize what stakeholder group?
A. shareholders
B. the government
C. boards of directors
D. the communities in which business reside
18. High-frequency traders ______.
A. base decisions on a company’s long-term future prospects
B. base decisions on a company’s diverse set of stakeholders
C. do not base decisions on a company’s primary stakeholders
D. do not base decisions on a company’s long-term future prospects
19. According to the textbook, strategic CSR is not about ______ but instead is about
______.
A. sharing value; creating value
B. creating value; sharing value
C. sharing value; meeting primary stakeholders’ desires
D. meeting primary stakeholders’ desires; meeting all stakeholders’ desires
20. According to the textbook, prominent business leaders, such as Bill Gates and
Muhammad Yunus, have sought to reform the underlying principles of ______ by urging
firms to ______.
A. strategic CSR; adopt goals of profit maximization
B. capitalism; adopt goals of profit optimization
C. strategic CSR; adopt goals beyond profit optimization
D. capitalism; adopt goals beyond profit maximization
21. According to the textbook, strategic CSR is not about ______ but instead is about
______.
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
A. philanthropy; day–to-day operations
B. day–to-day operations; profit optimization
C. profit optimization; day–to-day operations
D. day–to-day operations; strategic corporate philanthropy
22. What word best describes the relationship between CSR and philanthropy?
A. strong
B. direct
C. tangential
D. spurious
23. Adopting a CSR perspective presupposes what type of relationship between the firm
and its stakeholders?
A. circular
B. iterative
C. curvilinear
D. transformative
24. Stock options are a problem because they _________.
A. emphasize the interests of directors
B. emphasize the interests of headhunters
C. emphasize the interests of short-term investors
D. emphasize the interests of stock analysts
25. Strategic CSR is ______.
A. caring capitalism
B. inclusive capitalism
C. social capitalism
D. market capitalism
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
26. When did the U.K. government pass the Modern Slavery Act?
A. 1965
B. 1975
C. 1995
D. 2015
27. One solution that companies have found to resist pressure for short-term planning
orientation is to ______.
A. eliminate boards of directors
B. adopt the SEC list of investing best practices
C. delist themselves from the stock market
D. increase the use of CSR consultants like McKinsey
28. Strategic CSR is not about philanthropy; it is about ______.
A. ethics
B. day–to-day operations
C. ends over means
D. tactics
29. Which company’s Credo places customers first and shareholders (stockholders) last
as a “final responsibility?”
A. Dunkin Donuts
B. Nike
C. Patagonia
D. Johnson & Johnson
30. Recently, Facebook, Google, Apple, and Amazon—among the largest publicly traded
companies in the world—have found themselves facing calls for what type of legislation?
A. privacy
B. free speech
C. antitrust
D. deceptive practices
31. Which of the following is a strategic CSR focus versus a mainstream CSR focus?
A. peripheral activities (philanthropy)
B. mandatory imposition of what a minority sees as ideal
C. objective set of activities (predetermined)
D. focuses on core operations
1. Corporate social responsibility allows executives to address stakeholder concerns in
ways that carry strategic benefits for the firm.
2. Strategic CSR is essentially the intersection between sustainability and business
ethics.
3. Ethical behavior is not a prerequisite assumption for strategic CSR.
1. Describe the perspectives of Bill Gates and Muhammad Yunus on the future of
capitalism. Do you agree with these perspectives? Explain your reasoning.
2. “Increasingly, the idea that shareholders have the best interest of the firm at heart is
hard to defend.” Analyze that quote and provide your reaction. Do you agree or
disagree with the statement?
3. Why has Toms Shoes been criticized for the effects its “buy one, give one” business
model? What would be a better strategy for it to pursue?
4. Should Starbucks form partnerships with farmers in Guatemala? Why or why not?