1 Based on the CSR pyramid, companies should be putting profitability last because profits
make it impossible to be socially responsible to all stakeholders.
(A) True
(B) False
2 In the ________ stage of corporate citizenship, companies are actively seeking to help
society and listen to stakeholders, trying to meet their needs, within reason.
(A) innovative
(B) engaged
(C) integrated
(D) transformed
(E) elementary
3 A _________ assesses the corporation’s impact on society and measures CSR and
responsiveness.
(A) social audit
(B) standardized report
(C) triple bottom line
(D) social performance
(E) corporate reputation
4 The _______ refers to the invisible barrier of women being promoted to senior executive
positions.
(A) corporate veil
(B) executive club
(C) paper wall
(D) glass ceiling
(E) lead level
5 Which of the following is not true of affirmative action?
(A) Affirmative action programs require firms doing business with the federal government to
take steps to hire and promote people from groups previously discriminated against, with government
approval.
(B) The meaning of affirmative action has not changed since its inception 40 years ago.
(C) The objective of affirmative action is to achieve diversity through good faith efforts rather than simply
meeting strict goals.
(D) The EEOC gives employees whistleblower protection.
(E) College and university admissions also have affirmative action programs, some of which have been
challenged in court for reverse discrimination.
6 Which statements about corporations are correct?
(A) Corporate social responsibility (CSR), citizenship, and corporate social performance (CSP)
all refer to how business operates in a total market environment.
(B) Corporate citizenship includes social responsibility, responsiveness, and performance.
(C) CSR is the conscious effort to operate in a manner that is not totally focuses on gaining profit.
(D) It is generally acceptable if, through meeting stockholders’ expectations, businesses contribute to
social problems.
(E) Corporate citizenship is broader in scope by including social responsibility.
7 Which of the following are true about CSR improving corporate reputation?
(A) It affects the business’s relationship with stakeholders.
(B) A firm’s reputation is irrelevant regarding ways businesses can compete.
(C) Public sentiment is very important because the government tends to go after firms that make society
angry,
(D) Wal-Mart has a reputation for low prices, but is consistently under attack by societal interest groups,
gets bad press, and is investigated by the government.
(E) Nonmarket stakeholder societal interest groups, the news media, and the government tend to go
more severe on firms with good reputations.
8 Which statements about the levels of corporate social responsibility are correct?
(A) Businesses vary greatly in their social responsibilities activities.
(B) Legal CSR focuses on maximizing profits while obeying the law.
(C) Ethical CSR focuses on profitability and doing what is right, just, and fair.
(D) Benevolent CSR focuses on profitability and helping society through philanthropy.
(E) Long-range CSR is usually not profitable for a company.
9 Which of the following are levels of corporate social responsibility?
(A) initiation
(B) crowning
(C) legal
(D) ethical
(E) benevolent
10 Which of the following are true about global corporate citizenship?
(A) American multinational companies must be good global corporate citizens.
(B) Global corporate citizenship encompasses a broad spectrum of stakeholders with different corporate
responsibilities.
(C) Global corporate citizenship is practiced only by less-developed Asian companies.
(D) What is expected of corporate citizens in terms of time, money, and effort in citizenship activities
stays consistent across national and cultural borders.
(E) Global markets challenge multinational corporations (MNC) to work against CSR.
11 What are the benefits of corporate citizenship?
(A) customer disloyalty
(B) enhanced reputation
(C) customer loyalty
(D) better employee relations
(E) government scrutiny
12 Which statements about Equal Employment Opportunity are correct?
(A) The federal Equal Employment Opportunity Commission administers and enforces job
discrimination laws to create equal employment opportunities.
(B) The EEOC attempts to arbitrate with the business and person or group discriminated against to agree
on a settlement.
(C) The EEOC receives and investigates employment complaints and charges of discrimination, but it does
not deal with sexual harassment.
(D) The EEOC hears harassment cases.
(E) The EEOC encourages people to come forward with their charges of harassment or discrimination.
13 Discuss how social responsibility, responsiveness, and performance are different.
Answer:
14 Explain how being socially responsible promotes business long-term self-interest.
Answer:
15 Describe corporate social performance.
Answer:
16 List five benefits of corporate citizenship.
Answer:
17 What is diversity? Why is it important?
Answer:
18 Which of the following is not one of the stages of corporate citizenship?
(A) engaged
(B) innovative
(C) elementary
(D) transformed
(E) prospective
19 Corporate _______ is the assessment of the firm’s corporate social responsibility and
responsiveness.
(A) ethical behavior
(B) cache
(C) social performance
(D) rewarding
(E) priority
20 In a ______ approach to CSR, a firm tackles each issue by analysis, risk-reward
considerations, and determining how the stakeholder relations would affect the overall health of
the organization.
(A) situational
(B) environmental
(C) overall
(D) guarded
(E) inclusive
21 Performance is the results and outcomes of business responsiveness.
(A) True
(B) False
22 Society expects business to be socially responsible.
(A) True
(B) False
23 In the economic theory of Milton Friedman, a firm is being socially responsible by rewarding
owners while giving society products and jobs.
(A) True
(B) False
24 Regarding levels of CSR, a firm must be on the same levels for all for issues.
(A) True
(B) False
25 A company may be selling products that are not illegal but are not ethical by some
standards.
(A) True
(B) False
26 Each MNC needs to carefully tailor its CSR activities to meet the expectations and legal
requirements of each country in which it does business.
(A) True
(B) False
27 Global markets dictate that multinational corporations (MNC) harmonize CSR.
(A) True
(B) False
28 Security and Exchange Commission (SEC) requires corporate financial reporting and that
social or environmental reporting be included in the annual report.
(A) True
(B) False
29 The triple bottom line is a stakeholder approach to assessing financial, social, and
environmental performance.
(A) True
(B) False
30 The EEOC minority guidelines identify Hispanics, Asians, African Americans, Native
Americans, Alaskan natives, and women as minorities protected under the law.
(A) True
(B) False
31 Clearly, to benefit from CSR, responsiveness, and citizenship activities, CSP must be
effectively communicated.
(A) True
(B) False
32 ________ is the conscious effort to operate in a manner that balances stakeholder
interests.
(A) Corporate structure
(B) Intelligent corporate design
(C) Cause-related marketing
(D) Corporate social responsibility
(E) Corporation benevolence
33 _____ includes business activities in society and occurs when a societal interest group
brings an issue to the business.
(A) Awareness
(B) Performance
(C) Responsiveness
(D) Social responsibility
(E) Citizenship
34 Which statement is not an argument “for” corporate social responsibility?
(A) Being socially responsible promotes business long-term self-interest.
(B) CSR improves business value and reputation—public sentiment.
(C) The cost of social responsibility is passed on to stakeholders so everyone benefits.
(D) Society expects business to be socially responsible.
(E) CSR discourages government regulation.
35 Which statement is not an argument “against” corporate social responsibility?
(A) Society expects business to be socially responsible.
(B) A business involved in social issues can lose its focus on operating as effectively as possible.
(C) Dealing with social problems is the job of the government, not business.
(D) Competitors who are less socially responsible may gain a cost advantage.
(E) The sole responsibility of business is to maximize profits while obeying the law.
36 If a firm is maximizing profits while obeying the law, it is at the _______ level of CSR.
(A) ethical
(B) legal
(C) benevolent
(D) awkward
(E) reasonable
37 How has the meaning of affirmative action changed in the past 40 years?
Answer: