Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
Chapter 8: Compliance and Accountability
Test Bank
Multiple Choice
1. In general, dichotomous measures of corporate social responsibility are unhelpful to
those who advocate for CSR because ______.
A. such measures reflect the biases of the measuring organization
B. CSR is more complicated than a simple yes or no
C. all firms contain good and bad
D. all of these
2. The CSR and sustainability debate tends to model false assumptions about human
behavior because it fails to take into account the fact that individuals act in their ______.
A. rational self-interest
B. actual self-interest
C. perceived self-interest
D. actual selfishness
3. According to the textbook, how to measure corporate social responsibility is ______.
A. becoming widely understood with the implementation of ISO 26000
B. becoming widely understood as more business schools teach principles of CSR in
required courses
C. one of the most pressing and contentious areas of the CSR debate today
D. a nonissue when taking the perspective of strategic CSR
4. According to the textbook, definitions of corporate social responsibility are currently
______.
A. highly idiosyncratic
B. coalescing around the concept of strategic CSR
C. less confusing than they were 10 years ago
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
D. differ more across countries and cultures than within countries and cultures
5. According to the textbook, which of the following seems to be the universal standard
in corporate social responsibility audits?
A. Ceres Principles
B. Global Impact Investing Rating System (GIIRS)
C. Global Reporting Initiative (GRI)
D. Sustainability Accounting Standards Board (SASB)
6. Those who support the mandatory enforcement of society’s interests believe that
______ is the only way to ensure firms behave in a way that is broadly acceptable.
A. punishment
B. rewards
C. coercion
D. guilt
7. Compliance with ______ goes to the heart of the CSR debate because it largely
dictates the degree to which a firm is accepted by society.
A. government regulations
B. stakeholder expectations
C. voluntary codes
D. UN standards
8. In the same way that classical economic theory models false assumptions about
rational man, the CSR and sustainability debate, for the most part, models equally false
assumptions about ______ man.
A. irrational
B. ethical
C. altruistic
D. responsible
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
9. According to the textbook, ecolabels are ______.
A. primarily designed as marketing tools
B. designed to measure environmental impact
C. becoming consistent across all industries
D. very useful to help consumers clearly understand the products they buy
10. Nudges incorporate the cognitive biases that shape our decisions into policies that
encourage ______ outcomes, while still retaining the ______ of choice.
A. fair; freedom
B. optimal; illusion
C. future; freedom
D. ethical; concept
11. One reason it is difficult to compare one company to another in terms of good and
bad is that many companies are resistant to ______.
A. being profitable
B. being regulated
C. being transparent
D. being ethical
12. Because of the difficulties in measuring CSR, our determinations of a socially
responsible company are ______.
A. relative
B. absolute
C. objective
D. futile
13. An example of “greenwashing” would be ______.
A. Enron’s mark–to-market accounting practices
B. Exxon covering up its knowledge about climate change
C. Poland Spring changing from glass to plastic bottles
D. Nike doubling the pay of its Filipino workers
14. Which of the following attempts to capture all of the impacts of the production
process, at each step in the supply chain, and assign a quantitative value to each step?
A. circular pricing
B. environmental impact regulation
C. market optimization
D. lifecycle pricing
15. Lifecycle pricing involves the incorporation of ______ in the final price of a product.
A. negative costs
B. indirect costs
C. internalities
D. circular pricing
16. While ______ focuses on resource utilization and waste reduction, ______ is an
attempt to incorporate all the costs into the final price that is charged for a product.
A. the circular economy; lifecycle pricing
B. lifecycle pricing; the circular economy
C. the circular economy; externality marketing
D. externality marketing; lifecycle pricing
17. The first stage of CSR reporting that developed in response to external pressure
following publicized corporate transgressions was ______.
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
A. redemptive reporting
B. coerced reporting
C. imitative reporting
D. opportunistic reporting
18. The field of behavioral economics demonstrates that the best way to get people to
engage in responsible behavior is through ______.
A. sanctions
B. incentives
C. bartering
D. nudges
19. Lots of companies appear to embrace “going green,” but in order to make sure that
companies are actually committed to “green” practices it is important to know if the
companies ______.
A. communicate their intentions to do good
B. show how their competitors are not “acting green”
C. match what they say with specific actions
D. are identified as green by the Environmental Protection Agency
20. The 18th-century economist, Adam Smith, believed in free markets because he
believed in ______.
A. people as rational actors
B. the sovereign state
C. regulation of the market price
D. regulation of the natural price
21. One industry that is particularly problematic to use such ratings as ecolabels is
______.
A. the energy industry
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
B. the automobile industry
C. the drug industry
D. the food industry
22. Whole Foods Supermarkets’ use of a color-coded stoplight scale to assess and
support sustainable seafood products is an example of which of the three interlinked
steps in measuring CSR?
A. standardizing
B. reconciling
C. certifying
D. labelling
23. An example of a lifecycle analysis conducted during the design stages of a product
would be a ______.
A. carbon tax
B. value-added tax
C. soda tax
D. cigarette tax
24. A CSR measure that captures performance on financial, environmental, and social
metrics is known as ______.
A. integrated reporting
B. performance auditing
C. triple bottom line
D. scope entirety
25. An important concept in corporate social responsibility is that the responsibility
______.
A. lies with the corporation
B. lies with the government
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
C. is voluntary
D. is bidirectional
26. Which of the following companies has been cited as a leader in CSR, while not also
engaging in unethical conduct?
A. Patagonia
B. Kellogg’s
C. PepsiCo
D. Volkswagen
27. The ______ focuses primarily on resource utilization and waste reduction.
A. lifecycle economy
B. green economy
C. circular economy
D. sustainable economy
28. Which company has introduced the idea of an environmental profit and loss (EP&L)
account?
A. Nike
B. Wilson Sporting Goods
C. Under Armour
D. PUMA
29. Although we have some intuitive sense of which firms are good and which are bad,
we are presently unable to compare one firm to another reliably across all aspects of
operations, because ______.
A. there is universal acceptance among firms to the idea of greater transparency
B. there is inherent difficulty of defining societal expectations
C. there are legal prohibitions to rating companies as good or bad in terms of CSR
D. there is inherent difficulty in finding firms willing to rate companies as good or bad
Chandler, Strategic Corporate Social Responsibility, 5e
SAGE Publishing, 2020
30. Instead of valuing natural capital, current financial and accounting models treat
essential natural components such as water and air quality as ______ when accounting
for profits and losses.
A. free
B. long-term depreciation
C. short-term depreciation
D. contingent valuation
1. In terms of strategic CSR, it is essential to think of firm performance as a dichotomy
rather than a continuum.
2. The real cost of a gallon of gasoline, after accounting for all costs and removing all
existing subsidies, is estimated to be less than $1.
3. Corporate social responsibility reporting suffers from the potential for greenwash.
4. Enron is a good example of how good things had become in terms of corporate
responsibility at the end of the 20th century.
5. Since the late 1990s, the measurement of corporate social responsibility has become
increasingly uniform and widely accepted across all industries.
6. At present, the Global Reporting Initiative (GRI) has developed to where “many
countries now require [it], either by law or as a condition of stock exchange listing”
largely because its model of reporting is relatively simple.
1. Why is it important to think of firm performance with respect to corporate social
responsibility on a continuum rather than a dichotomy?
2. Is a tobacco firm that employs tens of thousands of people and pays significant taxes
a better or worse firm (in terms of corporate social responsibility performance) than a
supermarket that sells food but pays its employees low wages?
Ans: Varies depending on the student’s perspective. Good answers will support the
chosen argument with clear examples.
Cognitive Domain: Analysis
Answer Location: Throughout Chapter
Difficulty Level: Hard
3. Is a major retailer that employs thousands of people, but pays women less than men
for the same job a better or worse firm (in terms of corporate social responsibility) than a
major sporting goods manufacturer which outsources many of its jobs to other
countries.
Ans: Varies depending on the student’s perspective. Good answers will support the
chosen argument with clear examples. Answers should evaluate the relative costs and
benefits to society in terms of the two companies
Cognitive Domain: Analysis
Answer Location: Throughout Chapter
Difficulty Level: Hard
4. If you wanted to institute a wellness program at your company, based on behavioral
economics, what would be the types of nudges would you use to get workers to
participate?
5. Why is the measurement of corporate social responsibility such a pressing and
contentious area within the overall CSR debate?