Chapter 9—Community Relations and Strategic Philanthropy
MULTIPLE CHOICE
1. Which of the following provides the best description of the community stakeholder for an
organization?
a.
The community to be concerned with is the immediate neighborhood where most of the
organization’s patrons live and work.
b.
The entire city in which the organization operates will be affected by the organization, and
therefore this defines the community stakeholder.
c.
The entire county in which the organization is located is the community stakeholder
because the impact of the organization reaches beyond the city to the entire county.
d.
The community aspect of the stakeholder model includes the entire region in which the
company operates.
e.
The community includes those members of society who are aware of, concerned by, or in
some way affected by the operations and outputs of the organization.
2. The organizational function dedicated to building and maintaining relationships and trust with the
community is known as
a.
the social activity department.
b.
the marketing department.
c.
customer service.
d.
community relations.
e.
stakeholder management group.
3. Which of the following describes the contagion effect that can occur when one business moves into an
area?
a.
New jobs will be created in the community, which will decrease unemployment and boost
the overall economy.
b.
A move can signal to other firms that the area is a viable and attractive place for others to
locate, and more businesses will follow.
c.
A move can signal to other firms that the area is congested and not worth entering.
d.
The community will be grateful to the company for locating within its limits and reward it
with certain property tax benefits.
e.
The overall skill level of employees in the community will improve, which may lead other
companies to recruit workers from this community.
4. What is a “living wage”?
a.
Federal minimum wage that can be paid to employees
b.
Level of wages designed to help individuals live comfortably
c.
Average wage paid by a particular industry in a specific region
d.
Required wage to keep employees above the area’s poverty level
e.
Ethical obligation to pay employees a reasonable wage
5. Which of the following best defines strategic philanthropy?
a.
The synergistic use of an organization’s core competencies and resources to address key
stakeholders’ interests and to achieve both organizational and social benefits
b.
Donating financial resources to help social causes and the community in general
c.
Addressing the needs of various stakeholder groups through cooperative efforts intended
to benefit the community and society
d.
Tying consumer purchases to the specific marketing objectives of a brand or product
e.
Any act of benevolence and goodwill, such as making gifts to charities, volunteering for
community projects, and taking action to benefit others
6. Which of the following examples best aligns a company’s competencies and strategic goals with
philanthropic activity?
a.
A local gas station has a program in which its employees are partnered with disadvantaged
youths as mentors.
b.
Ben and Jerry’s Homemade ice cream company donates a percentage of its pretax profits
to support peace initiatives.
c.
The local telephone company donates money to the Youth Soccer Foundation to help pay
for the upkeep of soccer fields and equipment.
d.
A hair salon donates one dollar of every haircut to support the local food bank’s annual
holiday food drive.
e.
Merck uses its pharmaceutical expertise to develop a drug to combat river blindness and
donates millions of doses to poor countries.
7. Which of the following best describes the importance of corporate philanthropy in the 1980s?
a.
The cost-cutting nature of businesses in this decade left corporate philanthropy as a low
priority for most organizations.
b.
Many firms began to establish separate foundations to make donations to charitable causes
during the 1980s.
c.
Most business leaders understood the benefits of well-managed corporate philanthropy
initiatives and implemented formal programs.
d.
The public first began to question the role of business in society, and many individuals
called for corporations to give back to society.
e.
Most companies took a haphazard approach to corporate philanthropy causing little good
to come as a result.
8. What does cause-related marketing do?
a.
Links corporate resources and knowledge to address broader social, customer, employee,
and supplier problems and needs
b.
Ties an organization’s product or service directly to a social concern
c.
Provides an opportunity to associate a company‘s name and brands to a particular sports
event
d.
Consists of purposeful marketing that provides consumers with needed product
information
e.
Creates a link between an environmental cause and the company as a whole
9. Which of the following is not an example of a cause-related marketing effort?
a.
Avon sells beauty products through its “pink ribbon” campaign and donates a percentage
of the proceeds to fund breast cancer research.
b.
American Express donates a percentage of its credit card charges to the Statue of Liberty
and Ellis Island Restoration Fund.
c.
Regis Hair Salons offers $10 haircuts for its “Clip for the Cure” campaign for which the
proceeds went to cancer research.
d.
Bankers Trust Private Bank develops and introduces a “Wealth of Responsibility” program
to assist wealthy families in planning for philanthropy.
e.
Sales from New Covent Garden’s pea and ham soup were donated to help renovate a
homeless shelter’s charity kitchens.
10. What is one of the main weaknesses of cause-related marketing?
a.
Consumers do not see their contributions as really helping an important cause.
b.
Cause-related marketing activities have not shown potential to affect consumer buying
patterns.
c.
They help companies become aware that supporting social causes can support business
goals.
d.
Consumers have difficulty recalling exact philanthropic relationships between companies
and causes.
e.
It promises donations to a specific cause that is important to company stakeholders.
11. How could the value of employee volunteer programs be enhanced for a firm to better align these
programs with strategic philanthropy goals?
a.
Volunteer programs could be oriented to benefit the immediate community surrounding
the firm.
b.
Programs could be geared toward improving the morale of the employees who participate.
c.
Programs should emphasize synergies between employees’ current and future job-related
aptitudes and nonprofit needs.
d.
Volunteer programs should be mandatory for all employees so as to encourage all
employees to think about social causes.
e.
Firms could heavily advertise their volunteer efforts to create a more favorable public
image.
12. Which of the following is not one of the direct benefits associated with strategic philanthropy?
a.
Companies with a strategic approach to philanthropy experience rewards in the workplace.
b.
Companies receive a tax deduction on their charitable contributions.
c.
Companies may find their employee recruitment practices to be more effective and
enhanced.
d.
Strategic philanthropy should ease government regulations on the company.
e.
Companies should experience enhanced customer loyalty.
13. Which of the following statements least demonstrates strategic philanthropy?
a.
A talk show geared toward mothers supports a children’s foundation to enhance the social
and cultural development of disadvantaged children
b.
A chemical company implements a vanpooling system to cut back on environmental
pollution and also carefully designs its chemical processes to minimize environmental
damage
c.
A healthcare-based company works with other healthcare systems to make health
insurance available to residents who cannot afford it
d.
Employees at a telecommunications company are encouraged to serve food at a food
kitchen in order to help the homeless
e.
A computer software company creates and funds technology-based learning centers
nationwide to help underprivileged citizens learn about technology
14. What is not a concern that top managers may have to deal with in regards to strategic philanthropy?
a.
Determining whether there are tax incentives for corporate giving
b.
Having to defend the company’s commitment to charity to various stakeholder groups
c.
Showing support for the firm’s philanthropic efforts
d.
Budgeting the resources required to manage philanthropic efforts
e.
Being well versed in the performance benefits of social responsibility
15. Which of the following is not one of the steps in the process for planning and implementing strategic
philanthropy?
a.
Engage
b.
Collect
c.
Research
d.
Organize and design
e.
Spend
16. What does the “engage” step of the process for planning and implementing strategic philanthropy
consist of?
a.
Gaining the interest and support of management early on so as to ease the approval
process in the future
b.
Deciding what resources and dollars should be spent on certain strategic philanthropy
efforts
c.
Creating interest in all the company’s stakeholders in order to increase their support of the
strategic philanthropy process
d.
Collecting information covering the internal organization and programs that might
intersect with the competencies of the company
e.
Classifying funding opportunities according to the level of need and alignment with
organizational competencies
17. What is the main purpose of the “organize and design” step of the process for planning and
implementing strategic philanthropy?
a.
Gaining the interest and support of management early on so as to ease the approval
process in the future
b.
Deciding what resources and dollars should be spent on certain strategic philanthropy
efforts
c.
Creating interest in all the company’s stakeholders in order to increase their support of the
strategic philanthropy process
d.
Collecting information covering the internal organization and programs that might
intersect with the competencies of the company
e.
Classifying funding opportunities according to the level of need and alignment with
organizational competencies
18. What would be the best way for Anheuser-Busch to assist victims of a natural disaster in keeping with
the philosophy of strategic philanthropy?
a.
Donate money to the victims of the natural disaster
b.
Build a new bottling facility in the area of the disaster to provide new employment
opportunities
c.
Bottle drinking water and distribute it to the victims
d.
Send volunteers to rebuild homes that were destroyed in the natural disaster
e.
Provide beer and other alcoholic beverages to the victims of the natural disaster
19. In order to be considered “strategic,” corporate philanthropy must be
a.
valuable to the community and society as a whole.
b.
aligned with the values of the employees in order to increase their motivation and
satisfaction.
c.
related to the interests of the customers in order to sustain long-term, mutually beneficial
relationships.
d.
aligned with the values, core competencies, and long-term plans of the organization.
e.
communicated to all stakeholders of the organization.
20. You are the Director of Social Responsibility for a major athletic shoe and apparel company. Which
of the following options would most closely fulfill the objectives of strategic social responsibility
for your company?
a.
Donating athletic shoes to a professional athletic team in order to increase the company’s
exposure
b.
Allowing employees to volunteer at a local charity of choice on company time for one
hour per week
c.
Giving athletic shoes and apparel to disadvantaged youths
d.
Having employees volunteer at a youth shelter and delivering athletic shoes for their sports
programs
e.
Sponsoring a charity-oriented golf tournament by donating monetary funds to the cause
ESSAY
21. What can a company do to become a neighbor of choice?
22. What economic impact does a company have on a community?
23. What is volunteerism, and who benefits from it?
24. How can the traditional approach to corporate philanthropy be described?
25. Give an example of cause-related marketing and an example of strategic philanthropy.
26. What are some of the benefits a company receives by encouraging its employees to participate in
volunteer programs?