The principals of an organization are the company’s:
A. Shareholders.
B. Stakeholders.
C. Workers.
D. Managers.
Answer:
The “CNN Test” refers to:
A. The test military commanders must consider when choosing potential targets for
bombing during warfare today.
B. Whether military officers are sufficiently skilled to act as media spokespeople.
C. Politicians’ ability to adequately convey the military justifications for a war to the
public.
D. The importance of conveying positive PR to opposing civilians.
Answer:
Some believe that the growing interest in CSR results from:
A. The national interests of wealthy nations.
B. Countervailing forces that seek to resist or at least influence globalization.
C. Rapidly developing nations, particularly in Asia.
D. The World Bank.
Answer:
CNN was launched in:
A. 1973.
B. 1980.
C. 1987.
D. 1991.
Answer:
To be successful, a CSR officer should have which of the following characteristics
associated with his or her position:
A. Direct access to the CEO.
B. Direct access to the Board of Directors.
C. Power to audit the firm’s CSR activities.
D. All of the above.
Answer:
All of the following comments have been made about SRI funds, except:
A. Critics claim that SRI funds are ineffective.
B. Critics claim that ethical or virtuous stocks do not outperform regular mutual funds.
C. Supporters claim that SRI funds outperform so-called sin stocks.
D. SRI Funds allow investors to vote for and against different types of stocks and
employers.
Answer:
Today’s dominant institution is:
A. The Church.
B. The Corporation.
C. The Monarchy.
D. The Communist Party.
Answer:
“Micro-loans” are usually defined as loans beginning at:
A. $5.
B. $50.
C. $500.
D. $5,000.
Answer:
One reason CSR goals are overlooked by some firms is that:
A. They are often difficult to define.
B. Assigning resources is difficult because the return on CSR is often vague.
C. Even effective CSR officers have little clout during budgeting.
D. All of the above.
Answer:
Which of the following is not another argument for CSR?
A. Society is a give-and-take among those who have and those who do not.
B. Since society’s contributions make businesses possible, those businesses have a
reciprocal obligation back to society to operate in ways that are deemed socially
responsible and beneficial.
C. Without the larger society, there would be no businesses.
D. Society has the right and the power to define expectations relationship among its
players.
Answer:
As part of moving CSR to the center of a company’s strategic outlook, a two-way
avenue of communication should be expanded to include a firm’s broader set of
stakeholders.
A. True
B. False
Answer:
The Body Shop brand is trusted by consumers because of:
A. The company’s CEO.
B. The stance it has taken on animal testing.
C. The products it produces are useful and reasonably priced.
D. The ethical position it adopts on various social issues.
Answer:
The duties of a board of directors include giving strategic advice and oversight to the
firm.
A. True
B. False
Answer:
The issue of Loans, from a CSR perspective, is concerned with:
A. Securing access to finance for underprivileged organizations.
B. Ensuring the employees of financial organizations are well paid.
C. Holding financial organizations accountable for the projects they fund.
D. Keeping interest rates low.
Answer:
Timberland’s 2006 Our Footprint labeling scheme:
A. Avoided mention of social impacts from its production process.
B. Avoided mention of environmental impacts.
C. Discussed social impacts and the triple bottom line.
D. Clearly listed the environmental and social impact of the production process for each
of its products.
Answer:
All of the following illustrate a conscious determination to reassert the importance of
socially responsible behavior and ethics in business, except:
A. The passage of Sarbanes-Oxley (2002), which added stringent and costly
requirements to final reporting by publicly traded firms.
B. New requirements by the New York Stock Exchange (2002) and the revised federal
sentencing guidelines in the United States (2004), which “require companies to make
stronger commitments to ethical standards and prove they are living up to those
commitments.
C. The Securities and Exchange Commission (2003) decision that companies disclose
whether or not they have implemented a code of ethics.
D. The House of Representatives Banking Committee’s “Rule of Seven.”
Answer:
Investor relations departments should give way to:
A. Stakeholder relations departments.
B. CSR departments.
C. Internal ombudsmen.
D. Public relations departments that can manage the message.
Answer:
In contrast to modern-day Western finance, Islamic (or Sharia) law forbids the charging
of:
A. Fees or penalties associated with loans.
B. Criminal acts associated with non-repayment of loans.
C. Interest (or riba).
D. All of the above.
Answer:
Although the use of the CSR Filter is complex, the focusing on linkage among vision,
mission, strategy and tactics is sufficient to achieve the firm’s goals.
A. True
B. False
Answer:
The correct organizational structure is a design that:
A. Results in operational efficiency.
B. Best supports the execution of strategy.
C. Is modeled on the vision and mission of the firm.
D. Makes tactical decision obvious.
Answer:
For-profit firms are not very good at reacting to market forces and economic incentives,
but they are very good at predicting consumer trends.
A. True
B. False
Answer:
Stakeholders encourage strategic CSR behavior when they represent rational or
economic motives for the firm. This advocacy often comes from:
A. Customers.
B. Investors.
C. Employees.
D. All of the above.
Answer:
Which of the following is not a reason for dividing the jobs of CEO and Chair of the
Board?
A. It is too much work for one person.
B. It is standard practice elsewhere to divide the roles.
C. The potential for conflict of interest is great if the positions are shared.
D. Sarbanes-Oxley requires the two roles to be divided.
Answer:
Which of the following is not part of Walmart’s stated environmental goals?
A. To be supplied 100 percent by renewable energy.
B. To create zero waste.
C. To sell products that sustain our resources and environment.
D. To buy only from ecologically friendly and certified suppliers.
Answer:
With CSR, as with many aspects of business, it does not pay firms to be too far ahead of
the curve.
A. True
B. False
Answer:
In theory, which of the following is not a result of shareholder activism?
A. Increased board ineffectiveness.
B. Greater management transparency.
C. More accurate and honest financial reports.
D. Better investment opportunities.
Answer:
The range of firm behavior that generates both economic and social value in sufficient
quantities is termed______________:
A. The Strategic CSR Window of Opportunity.
B. The CSR Deficit.
C. The CSR Perspective.
D. The Iron Law of Social Responsibility.
Answer:
Demand for a product that is sufficient for short-term gain, will ensure the firm’s
survival over the medium to long term hurdles.
A. True
B. False
Answer:
Employee volunteer programs benefit firms because they do all the following, except:
A. Produce greater loyalty among employees.
B. Offer employees additional vacation time.
C. Increase employee retention rates.
D. Help promote a favorable image of the organization within its community.
Answer:
The textbook argues that there are three types of organizations, which include all of the
following except:
A. For-profit businesses.
B. Government.
C Pressure groups.
D. Nonprofit organizations.
Answer:
Unscrupulous individual decision making, combined with executives’ abdication of
their fiduciary responsibilities to protect the long-term interests of shareholders, add up
to irresponsible levels of risk that ultimately, threatened the existence of many firms and
led to the Financial Crisis.
A. True
B. False
Answer:
Who is most likely the author of the following quote:
“It is salutary to ask about any organization, ‘If it did not exist, would we invent it?’
“Only if it could do something better or more useful than anyone else” would have to be
the answer, and profit would be the means to that larger end.”
A Charles Handy.
B. Milton Friedman.
C. President Clinton.
D. The Congressional Banking Oversight Committee of Congress.
Answer: