Strategic Corporate Social Responsibility 3e
David Chandler and William B. Werther, Jr.
Instructor Resources
CHAPTER 3
CSR: WHOSE RESPONSIBILITY?
TEST BANK
Multiple Choice
1. Demand for firms to be socially responsible may arise from:
2. Today, advocates of CSR outside the firm have greater opportunities to effectively
mobilize their efforts because of:
3. Some believe that the growing interest in CSR results from:
4. Milton Friedman argued:
5. Charles Handy argued:
6. 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.”
7. ___________ is able to align the economic value its internal stakeholders seek with the
broader social value that is sought by its various external stakeholders:
8. The range of firm behavior that generates both economic and social value in sufficient
quantities is termed______________:
Strategic Corporate Social Responsibility 3e
David Chandler and William B. Werther, Jr.
Instructor Resources
9. An unchecked, unbridled pursuit of economic value, without regard to the social
consequences (e.g., such as a manufacturing process that generates excessive pollution),
creates _________:
10. Stakeholders encourage strategic CSR behavior when they represent rational or economic
motives for the firm. This advocacy often comes from:
11. According to the Gallup “Annual Honesty and Ethics poll”, Americans perceive that
ethics among business executives have:
12. The United Nations Principles of Responsible Management Education include the
following:
13. Walmart is:
14. Which of the following is not part of Walmart’s stated environmental goals?
15. Walmart’s global supply chain and growing international sales make it a living laboratory
for studying CSR because:
16. Walmart has been criticized for all but which of the following:
17. Walmart’s strategy of everyday low prices stems from:
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18. Walmart’s sales are so dominate in some categories, that:
19. With CSR, as with many aspects of business, it does not pay firms to be too far ahead of the
curve.
20. Corporate Stakeholder responsibility is the responsibility among a firm’s stakeholders to
hold the firm accountable for its actions.
21. For-profit firms are not very good at reacting to market forces and economic incentives, but
they are very good at predicting consumer trends.
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22. When either social or economic value is deficient in supporting a strategic CSR perspective,
stakeholders have a basis upon which to question the legitimacy of the firm as a member of
society.
23. Globalization provides powerful tools that stakeholders can use to represent their specific
interests, but only if stakeholders are willing to take advantage of the opportunity and demand
change.
24. A whopping majority of American shoppers consider themselves environmentalists and
more than 50% go out of their way to purchase environmentally sound products.
25. Walmart’s shift in CSR policy toward sustainability is remarkable.
Essay Questions:
26. Who is responsible for CSR – firms or their stakeholders? Why
27. A current growth in activist organizations can be attributed to the adoption of the six
Principles of Responsible Management Education in many business schools. In your own words,
select three of the six principles and describe how the selected principles can lead to greater
social responsibility by corporations and stakeholders.
Strategic Corporate Social Responsibility 3e
David Chandler and William B. Werther, Jr.
Instructor Resources
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28. Compare Walmart’s new and old logos. Which do you prefer? What is your impression of
the new logo and slogan? Do you get the sense that Walmart is genuine in its commitment to
sustainability issues, or is it just an example of corporate greenwash?