Strategic Corporate Social Responsibility 3e
David Chandler and William B. Werther, Jr.
Instructor Resources
CHAPTER 7
ECONOMIC ISSUES AND CASE STUDIES
TEST BANK
Multiple Choice:
1. A commodity’s Fair Trade price represents:
2. The Fair Trade label first appeared in:
3. In 2010, the global market for Fair Trade products is estimated to have been:
4. In 2011, Fairtrade USA certified a record ______ pounds of Fair Trade Coffee from 22
different countries:
5. Finance, from a CSR perspective, is concerned with:
6. Countrywide sought to promote homeownership widely. As the firm became more
successful, however, particularly in the early 1990s:
7. Rapid growth at Countrywide was made in the pursuit of profits, but:
8. Mallen Baker accuses the financial sector of being built on an underlying logic of:
9. Fannie Mae and Freddie Mac are:
MICROFINANCE: GRAMEEN BANK
10. The issue of Loans, from a CSR perspective, is concerned with:
11. fiMicro–loans” are usually defined as loans beginning at:
12. fiMicro–credit” or fiMicro–loans” were first introduced in:
13. According to Accion, re-payment rates for the micro-loans they have made are:
14. The pursuit of profit, in terms of CSR:
15. The sole pursuit of profit today, at the expense of a broader CSR perspective, is:
16. What percentage of the world’s population is estimated to exist on less than $2,000 per
year?
17. The secret to commercial success in selling to the Bottom of the Pyramid (BOP) includes
which of the following:
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18. Criticism of Nike’s supply change has focused primarily on:
19. Nike subcontractors that do not meet Nike’s standards of employee treatment today face
the threat of:
20. The on-going program of re-positioning its brand appears to be paying-off for Nike
because:
True and False Questions:
21. 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.
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22. Although corruption permeates all society, recent efforts of anticorruption campaigns by
governments designed to change norms and perceptions have resulted in an improvement
in many countries.
23. 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.
24. For an increasing number of firms, the positives of fair trade outweigh any real or
perceived negatives.
25. Starbucks has been at the vanguard of developing the profile and growing awareness of
fair trade products in the U.S.
26. Countrywide is a good example of how good things have become in terms of corporate
responsibility within the financial industry during the Financial Crisis.
27. Unscrupulous individual decision making, combined with executives’ abdication of their
fiduciary responsibilities to protect the long-term interests of shareholders, add up to
Strategic Corporate Social Responsibility 3e
David Chandler and William B. Werther, Jr.
Instructor Resources
7
irresponsible levels of risk that ultimately, threatened the existence of many firms and led
to the Financial Crisis.
28. Microfinance is a broad term the encompasses the range of personal financial services but
are provided on a smaller scale to meet the specific needs of poorer consumers.
29. Why do you think corruption is more prevalent in some countries than others? What
should a company do when operating in such an environment? Is it better to abide by
local custom or try to impose standards and values from home?
30. Define fiethical consumer.” Are you an fiethical consumer?” Why or why not?
31. In your view, what were the main causes of the Financial Crisis? What are the main
solutions? What form of global economic system should we be striving to create?
32. Assuming a company found a profitable niche in serving the fourth tier (the four billion
people at the bottom of the economic pyramid), how might such a breakthrough benefit
the firm in selling to the developed world at the top of the economic pyramid?