Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
Chapter 2: The Driving Forces of CSR
Test Bank
Multiple Choice
1. According to the text, corporate social responsibility issues tend to gain a foothold in
societies that are more ______.
A. impoverished
B. affluent
C. unstable
D. democratized
2. In examining how affluence drives CSR, it is important to know that the concept of
being better off is ______.
A. cultural universal
B. rationally determined
C. relative
D. objective
3. Which of the following is NOT an example of a company’s sustainability efforts?
A. implementing recycling programs in its offices
B. encouraging employees to carpool to work
C. ensuring products come from fair labor areas
D. installing timers lights to save electricity
4. Which of the following is an example of Adam Smith’s view of the business world?
A. A small local store treats its workers well to preserve the goodwill of the community.
B. A U.S.-based manufacturing company opens a plant in a developing country to save
labor costs.
C. A multinational corporation ignores its environmental issues in Asia because its
consumers are in Europe.
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
D. A business fails to pay its workers adequately because, despite complaints from the
workers, lower pay is more profitable.
5. What are the four phases of stakeholder access to information?
A. industrialization, internationalization, globalization, and digitization
B. industrialization, domestic production, and international trade
C. international trade, use of internet technology, and globalization
D. growth, globalization, and job creation
6. What service would be known as a “digital philanthropy?”
A. PayPal
B. Wikipedia
C. Philanthropy.com
D. GoFundMe
7. What is the CNN test?
A. Will this be better for CNN or a print newspaper?
B. Should the corporation tell CNN about this or ignore it?
C. Will CNN find this newsworthy?
D. How will this be viewed by watchers of CNN when broadcast around the world?
8. What are the five driving forces of corporate social responsibility?
A. brands, communication, affluence, domestic credibility, and profitability
B. sustainability, globalization, consumer engagement, profitability, and brands
C. affluence, sustainability, globalization, communication, and brands
D. stakeholder engagement, profitability, communication, sustainability, and brands
9. According to the textbook, why is corporate social responsibility increasingly crucial to
business success?
A. CSR is not crucial to business success; it is just a recommendation for companies.
B. CSR initiatives ensure consumers spend more money at the business.
C. Businesses cannot be profitable without CSR initiatives.
D. It provides a mission and strategy around which a firm’s multiple stakeholders can
rally.
10. According to the textbook, why do corporate social responsibility initiatives tend to
gain more traction in affluent societies?
A. Consumers in developing countries do not care about CSR issues.
B. Consumers in developed societies expect more from the companies whose products
they buy.
C. Corporations in affluent societies can spend more money on CSR initiatives.
D. Businesses in developing countries do not have competition and, thus, do not need
to have CSR initiatives.
11. How might stakeholders living in affluent societies impose their values on firms’
overseas operations?
A. The U.S. government passes a Transparency in Supply Chains Act to ensure firms
are using fair labor practices throughout the world.
B. A group of consumers protest the environmental affects of an oil company’s
operations in South America.
C. U.S.-based employees of a coffee company strike because of poor labor conditions
in the company’s overseas coffee fields.
D. all of these
12. How does affluence lead to more rapidly shifting public attention on issues of
concern?
A. It leads to a more engaged civil society.
B. It leads to consumers having more money to spend.
C. It leads to society having more access to social media.
D. Affluence does not lead to more rapidly shifting public attention on issues of concern.
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
13. Sustainability efforts of a firm deal with ______.
A. labor issues
B. environmental issues
C. long-term profitability
D. legal compliance
14. How does our economic model encourage waste?
A. Our economic model does not encourage waste.
B. It encourages constant consumption, such as buying a car every 3 years instead of
every 10 years.
C. Consumers are encouraged to purchase more reusable products than they need.
D. Many corporations accumulate a lot of garbage as a result of their work, and many
do not recycle.
15. The “Green New Deal” is an example of activists’ call for a ______ in dealing with
resource utilization.
A. evolution
B. revolution
C. devolution
D. aspirational goal
16. Which of the following does the textbook NOT provide as an example of a
corporation’s sustainability efforts?
A. Sea World’s program to nurse sick animals back to health
B. General Electric’s Ecoimagination program
C. Unilever’s firm-wide sustainable living program
D. Toyota’s hybrid car
17. How does strategic CSR seek evolution of the current economic model?
A. It seeks to reform the current system so that value is created broadly by integrating a
CSR perspective into firm strategy and throughout operations.
B. It seeks to create a new economic system that does not have the flaws of the current
model.
C. It seeks a piecemeal fix of the current economic model by addressing small issues
over a longer period of time.
D. It seeks to develop the current system through government regulation of firm
practices.
18. According to the textbook, which driving force of corporate social responsibility is
most important?
A. affluence, because without money and care about social issues, CSR initiatives are
moot
B. communication, because companies must successfully communicate with their
stakeholders to remain profitable
C. sustainability, because addressing environmental issues is critical to the continuing
success of businesses
D. The forces are all equally important and work together.
19. What is the significance of the BRIC and CIVETS economies?
A. These economies will have the most opportunity for profitability in 5 years.
B. These economies have the most lax regulations and, therefore, are the easiest
markets for firms to enter.
C. These economies will allow more and more consumers to join the middle class.
D. These economies are not significant for firms.
20. According to the textbook, how does globalization affect the flow of information?
A. Because of globalization, information is communicated more effectively.
B. Globalization allows companies to operate in many countries.
C. Globalization provides more people access to newspapers.
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
D. Globalization does not affect the flow of information.
21. According to the textbook, what is the relationship between globalization and
communication?
A. Globalization demonstrates that the pace at which social innovations spread is
increased by communication technologies.
B. Communication allows businesses to establish offices in many different parts of the
world, thus increasing globalization.
C. Globalization creates more communication mechanisms.
D. There is very little relationship between globalization and communication.
22. Which of the following companies is powered by 100% renewable energy?
A. Purdue Pharma
B. Apple
C. General Food
D. Amazon
23. Which of the following is NOT considered one of the BRIC economies?
A. Belgium
B. Russia
C. India
D. China
24. The best way for a company to protect its brand is ______.
A. to hire the best public relations firm it can afford
B. to integrate a CSR perspective throughout operations
C. to limit its advertising budget
D. nonexistent; there is really no way a company can protect its brand
25. A company’s brand is ______.
A. less important now due to globalization
B. very easy to develop, but very difficult to damage
C. more important today than it was in the past
D. equally important now as it was in the past
26. Lifestyle brands are brands that ______.
A. base more of their appeal to consumers on aspirational values
B. base more of their appeal to consumers on physical properties of the product
C. base more of their appeal to consumers based on geographic location
D. primarily target young consumers (age 18–35)
27. CSR serves as “brand insurance” by ______.
A. enabling the firm to develop credibility among stakeholders
B. creating a great public relations campaign to extol the firm’s CSR efforts
C. enabling the firm to grow internationally
D. expanding current products and services to reach the poor
28. Social media is allowing consumers to ______.
A. completely understand the CSR of companies
B. interact with firms in real time in ways that shape their purchase decisions
C. select the most environmentally friendly products
D. try more products virtually before purchasing
29. According to the text, brands are ______.
A. a focal point of corporate success
B. less important today than in the past
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
C. not as important in BRIC countries
D. becoming less important due to globalization
30. The Twitter Revolution played an important part in which of the following?
A. Tiananmen Square protests in China
B. Tunisia’s Jasmine Revolution
C. bus boycotts in the American South
D. Russian Revolution
31. New communication technologies have ______.
A. enhanced the power of media conglomerates
B. increased consumer buying power
C. decreased the power of media conglomerates
D. enhanced the ability to hide unfair business practices
32. In the Internet Age, the problem is no longer an individual lacking access to
sufficient information, but in having access to ______.
A. too much disinformation
B. sufficient overall information
C. international information
D. enough useful information
33. IKEA faced negative publicity in its home country when it ______.
A. included religious leaders in the catalog it distributed throughout Europe
B. airbrushed women out of photos in the Saudi version of its catalog
C. included women in photos in catalogs it distributed throughout the Middle East
D. created a website highlighting the importance of sustainability practices
34. The world’s population is becoming not only larger but also ______.
A. more prone to communicable diseases
B. more dispersed throughout rural areas
C. more dependent on global sources of freshwater
D. more concentrated in urban areas
35. Which company with its campaign using football player Colin Kaepernick showed it
to be a “brand with attitude?”
A. Walmart
B. Under Armour
C. Nike
D. McDonald’s
36. Corporate social responsibility is applicable ______.
A. only where there is a high level of affluence
B. only where there is a high level of poverty
C. only where there is a high level of globalization
D. in all areas
1. Corporate social responsibility only influences some aspects of a company’s
operations.
2. In developing countries, corporate transgressions do not matter.
3. If a company has its headquarters in the United States but has offices in other
countries, it only needs to follow the U.S. law.
4. Because of globalization, firms must meet varying cultural standards of what is
acceptable.
5. Social media is irrelevant to companies because they share information through other
means.
6. Branding is not as important for large companies such as Starbucks, Apple, and Nike
as it is for small companies.
7. The Internet and globalization are bridging the wealth gap between affluent and
nonaffluent people because poor people now have more access to information.
8. It may not be possible for corporations in developing countries to progress at the
same rate as those in developed countries.
9. Regardless of whether a firm believes in global warming, it should take steps to
increase sustainability because it is safer to act than to not act.
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
10. The earth’s resources continue to replenish themselves as the human population
grows.
1. Adam Smith argued that all business is local. Explain what this means, including the
evolution of the concept.
2. How have new communication technologies impacted the need for corporate social
responsibility?
3. Briefly define each of the five driving forces of corporate social responsibility and
make an argument regarding which of the forces is most important.
4. What are the two different types of social technologies and why are they important to
businesses?
5. Discrimination based on gender is generally prohibited in developed societies.
Cultural relativism, however, may require companies to take different approaches to
gender equality in countries where women are segregated from male workers. How
should a company be practicing CSR deal with such situations?
6. Why are brands more important today than they were in the past?