Which of the following is making CSR more and more relevant today?
A. It gives companies a mission around which multiple constituents can rally.
B. The company will be able to balance the often conflicting interests of multiple
stakeholders.
C. The growing influence of social media.
D. All of the above.
Answer:
A stakeholder in an organization is a specific group or individual who can affect or is
affected by the achievement of the organization’s objectives.
A. True
B. False
Answer:
Companies that claim to be socially responsible and campaign on CSR-related issues:
A. Can expect to receive favorable treatment from regulators.
B. Can expect their consumers to be willing to pay a price premium for their products.
C. Can expect to be held to those same standards by their stakeholders.
D. Can expect to receive greater interest from investors.
Answer:
Walmart’s global supply chain and growing international sales make it a living
laboratory for studying CSR because:
A. It has progressive employee relations practices.
B. It is widely unionized.
C. It is the largest business on Earth, measured in total sales.
D. It is willing financially to support CSR researchers studying the firm.
Answer:
The Body Shop believes that animal testing is:
A. A good thing.
B. Unethical, unnecessary, and should be banned.
C. Painful for the animals, but necessary to protect human health.
D. A necessary evil of conducting business within the cosmetics industry.
Answer:
In 2010, the global market for Fair Trade products is estimated to have been:
A. $700 million.
B. $1.3 billion.
C. $5.8 billion.
D. $70 billion.
Answer:
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. Expand current products and services to reach the poor.
Answer:
The United Nations Principles of Responsible Management Education include the
following:
A. To develop the capabilities of students to work for an inclusive and
sustainable economy
C. To interact with managers of business corporations to extend our knowledge of their
challenges in meeting social and environmental responsibilities.
D. To facilitate and support dialog with multiple stakeholders on critical issues related
to global social responsibility and sustainability.
E. All of the Above.
Answer:
Tradeoffs among competing stakeholder interests:
A. Should not be allowed.
B. Occur rarely, but should be limited.
C. Are common and should be expected.
D. Cause legal action and lawsuits.
Answer:
“In a democratic society, power is taken away from those who abuse it” is a workable
definition of:
A. Carroll’s CSR rule.
B. The Iron Law of Social Responsibility.
C. The Alien Tort Claims Act.
D. An accommodative view of CSR.
Answer:
ISO (International Organization for Standardization) 26000 was developed as:
A. A mandatory CSR standard applied in Europe.
B. A guide.
C. A mandatory standard in Europe and a voluntary standard for the rest of the world.
D. A CSR standard that only applies in Scandinavian countries.
Answer:
The rational argument for CSR is summarized by the Iron Law of Social Responsibility,
which states:
A. That ultimately it is government, not business that is responsible for a satisfying
society.
B. That responsibility for a just society is everyone’s responsibility.
C. That concern for CSR must be the first priority of the courts.
D. That in a free society discretionary abuse of societal responsibilities leads,
eventually, to mandated solutions.
Answer:
The World Bank Institute estimates that bribes alone drain the equivalent of less than $1
trillion annually from the legitimate global economy of $50 trillion.
A. True
B. False
Answer:
Sharia-compliant products run the spectrum from mortgages to bonds, to mutual funds
and stocks, each with their own set of rules that enable them to comply with Islamic
law.
A. True
B. False
Answer:
Contingency plans for the eventuality of CSR failures:
A. Should be developed by the CSR officer.
B. Should not be developed by the CSR officer since to do so assumes failure.
C. Should not be developed at all since such contingency plans send the wrong message
to employees about the firm’s commitment to CSR.
D. Should be developed only by the CEO in consultation with the board of directors.
Answer:
Businesses are the engines of society that propel us toward a better future.
A. True
B. False
Answer:
Walmart has been criticized for all but which of the following:
A. Harming small town centers.
B. Squeezing margins of suppliers.
C. Resistance to unionization among employees.
D. Reducing its retail prices.
Answer:
In terms of customer evaluation of a firm’s behavior, a firm’s brand has become the
primary vehicle to communicate the organization’s values, its goals, and how it intends
to achieve them.
A. True
B. False
Answer:
The U.S. is more self-sufficient in the area of natural resources compared to Europe;
therefore the U.S. has less need to preserve natural resources from an economic
perspective when it comes to enforcing CSR in the area of environmental impact.
A. True
B. False
Answer:
Institutional investors are professional investors who manage large blocks of a firm’s
shares, such as pension or mutual funds and who are largely driven by concerns of
maximizing shareholder price.
A. True
B. False
Answer:
The central conflict surrounding the discussion of CSR is:
A. The need for firms to strike a balance between CSR and profits.
B. The role of “dinosaur” managers who do not realize changing social expectations.
C. The tension between laws and economics.
D. The lack of interest among corporate constituents.
Answer:
CSR can be successfully implemented throughout a firm by:
A. Ensuring all stakeholders understand the firm’s CSR position statement.
B. An organization-wide CSR audit is shared amongst internal and external
stakeholders.
C. None of the above.
D. A & B
Answer:
Walmart’s strategy of everyday low prices stems from:
A. Its supply chain management and the resulting low inventory levels per dollar of
sales.
B. Paying relatively low, non-unionized wages.
C. Stretching out payments to suppliers.
D. All of the above.
Answer:
A central part of the moral argument for CSR comes from the thinking that:
A. A large part of business success comes as much from actions that are congruent with
societal values and norms as from factors internal to the company.
B. Businesses have to pay taxes so they should have to be responsible in other ways.
C. Society cannot afford all its needs unless business is forced to go beyond just paying
taxes.
D. Business leaders and shareholders make money so they should be morally
responsible to society, especially the poor.
Answer:
Electronic waste in the form of televisions, computers, and cell phones are a
particularly vexing environmental problem because:
A. Their production generates large amounts of carbon dioxide.
B. They sit in landfills for thousands of years after they are thrown away.
C. They contain many types of heavy metals.
D. They use lots of oil in their production.
Answer:
Fannie Mae and Freddie Mac are:
A. For-profit super banks.
B. Government-sponsored enterprises.
C. Fall under the supervision of the World Bank.
D. All of the above.
Answer:
A commodity’s Fair Trade price represents:
A. A premium over the market price for the good.
B. A living wage for the producers or suppliers.
C. The average wage of the country in which the good was produced.
D. A legally mandated minimum price.
Answer:
According to the Gallup “Annual Honesty and Ethics poll”, Americans perceive that
ethics among business executives have:
A. Improved.
B. Not changed.
C. Are declining.
D. Improved, but only among domestic firms.
Answer:
Strategic CSR helps bridge which two ideas:
A. Business should maximize profit and society has the right to limit business.
B. Core competencies and make-or-buy decisions.
C. Past and future CSR activities.
D. Academic and applied CSR.
Answer:
The text argues that the strongest argument for CSR is:
A. The moral argument.
B. The rational argument.
C. The economic argument.
D. The ethical argument.
Answer:
Employee volunteer programs directly benefit employees in each of the following
ways, except:
A. It exposes them to a new environment away from their everyday position.
B. It guarantees a real increase in salary over time.
C. It allows them to feel pride in their company and its standing within the community.
D. It leads to the development of new skill-sets.
Answer:
What might be the main reasons investors are more concerned with corporate
governance today?
A. A need to ensure compliance with corporate law.
B. A need to ensure the wishes of shareholders are being met.
C. A need to ensure the validity of a company’s financial reports and management
practices.
D. A need to ensure consumers are being charged a fair price.
Answer: