Chapter 03 – Corporate Social Responsibility
1. (p. 45) Corporate social responsibility is the idea that businesses interact with the
organization’s stakeholders for social good while they pursue economic goals.
2. (p. 47) The capability of corporations to influence government, the economy, and society,
based on their organizational resources is called the big business principle.
3. (p. 48) Huge businesses can disproportionately influence politics, shape tastes, and dominate
public discourse.
4. (p. 48) Corporate power says that in the long run, those who do not use power in ways that
society considers responsible will tend to lose it.
5. (p. 48) Only G-8 nations are affected by corporate operations, and as a result, social
responsibility has not yet become a worldwide expectation.
6. (p. 50) The concept of corporate social responsibility is rooted in the meaning “to pledge
back,” creating a commitment to give back to society and the organization’s stakeholders.
Chapter 03 – Corporate Social Responsibility
7. (p. 50) Being socially responsible means that a company must abandon its other missions.
8. (p. 52) Business leaders who follow the stewardship principle believe they have an obligation
to see that everyone benefits from the firms’ actions.
9. (p. 55) Enlightened self-interest is the idea that the wealthiest members of society should be
charitable toward those less fortunate.
10. (p. 55) As a response to the conflict between long- and short-term profit making, an
enlightened self-interest point of view would be the least useful and practical approach.
11. (p. 56) Laws and regulations help create a level playing field for businesses that compete
against one another.
12. (p. 56) Businesses that comply with laws and public policies are meeting a minimum level of
social responsibility expected by the public.
13. (p. 59) One of the most appealing arguments in favor of corporate social responsibility for
business supporters is that voluntary social acts may head off increased government
regulation.
Chapter 03 – Corporate Social Responsibility
14. (p. 60) Less than 25% of CEOs surveyed in a Korn/Ferry International poll said that it was
their personal responsibility to manage their company’s reputation.
15. (p. 62) An argument against corporate social responsibility is that it imposes unequal costs
among competitors.
16. (p. 47) Corporate power refers to:
Difficulty: Medium
17. (p. 49) The iron law of responsibility says that:
Chapter 03 – Corporate Social Responsibility
18. (p. 50) Corporations have a role in establishing their community’s:
Difficulty: Medium
19. (p. 50) Which of the following statements is true about corporate social responsibility?
Difficulty: Medium
20. (p. 50) Which of the following companies is being the most socially responsible?
Chapter 03 – Corporate Social Responsibility
21. (p. 50) Modern corporations should be socially responsible because they:
Difficulty: Medium
22. (p. 51) The idea that the wealthiest members of society should be charitable toward those
less fortunate is the:
Difficulty: Easy
23. (p. 51) Which of the following is not an example of the charity principle?
Difficulty: Easy
24. (p. 52) The obligation to see that everyone, particularly those in need or at risk, benefits
from their firms’ actions is called:
Chapter 03 – Corporate Social Responsibility
25. (p. 52) HP Brazil, a subsidiary of Hewlett-Packard, developed the Digital Garage project to:
Difficulty: Medium
26. (p. 53) Executive conscience, acts of charity, and philanthropic funding are examples of:
Difficulty: Medium
27. (p. 53) Philanthropic funding and public relations are two examples of corporate social
responsibility:
Difficulty: Hard
28. (p. 53) Stakeholder partnerships, high-tech communication networks, and sustainability
audits are examples of:
Chapter 03 – Corporate Social Responsibility
29. (p. 53) Which of the following is not a driver of the Corporate Social Responsiveness phase
of Corporate Social Responsibility?
Difficulty: Hard
30. (p. 53) All of the following are examples of the phases of Corporate Social Responsibility
except:
Difficulty: Easy
31. (p. 54) When the CEO of General Electric appointed the company’s first VP of Corporate
Citizenship, he was demonstrating:
Difficulty: Hard
32. (p. 55) Which of the following examples does not show a company guided by enlightened
self-interest?
Chapter 03 – Corporate Social Responsibility
33. (p. 55) Reason(s) for adopting an enlightened self-interest approach is (are):
Difficulty: Medium
34. (p. 55) Scholars have found:
Difficulty: Medium
35. (p. 55) When undertaking social initiatives, a company:
Difficulty: Easy
36. (p. 56) A company who complies with the laws and regulations set by the government is:
Chapter 03 – Corporate Social Responsibility
37. (p. 58) Social responsibility reflects:
Difficulty: Medium
38. (p. 58) Socially responsible actions frequently occur as a result of:
Difficulty: Easy
39. (p. 59) Which of the following is an argument in favor of corporate social responsibility?
Difficulty: Hard
40. (p. 59) When the Odwalla Company sought to improve the safety of its fresh juice drinks by
pasteurizing voluntarily, they were:
Chapter 03 – Corporate Social Responsibility
41. (p. 59) According to Barlow v. A.P. Smith Manufacturing:
Difficulty: Hard
42. (p. 60) Positive reputation can be valued as an intangible corporate:
Difficulty: Hard
43. (p. 62) Which of the following is an argument against corporate social responsibility?
Difficulty: Hard
44. (p. 62) The costs of corporate social responsibility may ultimately be passed on to the:
Chapter 03 – Corporate Social Responsibility
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45. (p. 62) Proponents against corporate social responsibility feel that public officials, not
business people, should solve societal problems because:
Difficulty: Medium
46. (p. 49) Describe the iron law of responsibility.
47. (p. 51) Define and provide an illustration of a modern-day expression of both the charity
principle and the stewardship principle.
48. (p. 53) Explain why a business should seek to balance its economic, legal and social
obligations.
49. (p. 55) Define and provide an example of a business practicing enlightened self-interest.
Answers will vary
Chapter 03 – Corporate Social Responsibility
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50. (p. 56) How can a company focus on the needs of its stakeholders without neglecting its
shareholder obligations?
51. (p. 58) Provide three arguments in favor of corporate social responsibility.
52. (p. 61) Provide three arguments against corporate social responsibility.
Answers will vary