Strategic Corporate Social Responsibility 3e
David Chandler and William B. Werther, Jr.
Instructor Resources
CHAPTER 6
ORGANIZATIONAL ISSUES AND CASE STUDIES
TEST BANK
Multiple Choice
1. What might be the main reasons investors are more concerned with corporate governance
today?
2. Which of the following is not one of BusinessWeek’s four principles of good corporate
governance?
3. Which of the following is not a reason for dividing the jobs of CEO and Chair of the
Board?
4. Employee volunteer programs benefit firms because they do all the following, except:
5. Employee volunteer programs directly benefit employees in each of the following ways,
except:
6. Timberland is committed to its volunteer program because:
7. The John Lewis Partnership program is successful for all of the following reasons except:
8. The principals of an organization are the company’s:
9. The agents of an organization are the company’s:
10. Stock options can be defined as:
11. Stock options are:
12. In theory, which of the following is not a result of shareholder activism?
13. The largest owners of publicly listed corporate stock in the U.S. are:
14. In the event that a shareholder resolution is passed by a majority at a company’s annual
general meeting (AGM), in most cases the company is obliged to:
15. All of the following comments have been made about SRI funds, except:
16. Companies that claim to be socially responsible and campaign on CSR-related issues:
17. A charge of “hypocrisy” can be leveled at CSR or social activist companies that:
18. The Body Shop believes that animal testing is:
19. The Body Shop brand is trusted by consumers because of:
20. Today’s dominant institution is:
21. In what way might a corporation be considered a force for good in society today?
22. In what way might a corporation be considered a force for bad in society today?
23. In arriving at an acceptable wage rate to pay employees that balances the need to
maintain efficient operations and also helps create a consumer base that supports sales, all
of the following have been proposed as approaches, except:
24. “McJob” refers to work at McDonald’s and implies:
25. The issue of relative value is important in an age when Western consumers often judge a
multinational corporation’s operations in a developing country by their own standards,
rather than the standards facing the company in that developing country. The result is
often very difficult for a company that:
True and False Questions
26. The duties of a board of directors include giving strategic advice and oversight to the firm.
7
27. Good corporate governance is essential to executive effectiveness and a firm’s ongoing
viability.
28. Demand for a product that is sufficient for short-term gain, will ensure the firm’s survival
over the medium to long term hurdles.
29. When companies ask for a “bottom–line” benefit for implementing a comprehensive CSR
perspective, employees are one of the least rewarding places to look.\
30. A key component of the principal/agent conflict is the contentious issue of executive
compensation.
31. 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.
Essay Questions:
8
32. What is your opinion about the current level of executive compensation? Do you agree with
the statement: “Pay peanuts, get monkeys. Pay obscenely huge amounts, get obscenely greedy
monkeys”?
33. Would you think twice about investing in a sin fund if historical returns showed greater
growth potential than SRI funds? What is the justification for your decision?
34. What is a fair wage? What does fair mean? What is the lowest hourly wage for which you
would be willing to work? Think of some jobs you have done – would you have worked harder
if your pay had been higher? Why or why not.