quiz

Reactive firms:

Select one:

a. Actively participate in regional, national, and international policy discussions.

b. Often build alliances with stakeholder groups.

c. Engage in voluntary activities that go beyond what the regulations require.

d. React negatively to aspects of CSR that may increase costs.

e. All of the above.

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The CSR debate centers on the question:

Select one:

a. Why does the firm exist?

b. Why does private property exist?

c. What laws are needed to control the firm’s behavior?

d. What can be done to prevent unreasonable profits?

e. All of the above.

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Secondary stakeholder groups are:

Select one:

a. Constituents on whom the firm relies for its continuous survival and prosperity.

b. Those who do not influence or affect the corporation.

c. Are not influenced or affected by the corporation.

d. Are not engaged in transactions with the corporation and are not essential for its survival.

e. B through D above.

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 As seen in the VIDEO CASE: "The Need to Measure and explain CSR" by Julia Cleverdon  of Business in the Community, how does the "trust bank" affect a corporation's CSR?

Select one:

a. Firms are embarking on some tangible CSR journey.

b. CSR’s legitimacy is rising on the organizational agenda.

c. By adopting codes of conduct (even if only for “window dressing” purposes), they create a set of criteria against which they can be judged.

d. People generally no longer trust what business leaders say nor the motives for what they do.

e. None of the above.

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Using the five forces model, which will likely result in a higher level of CSR?

Select one:

a. A highly concentrated industry.

b. Existence of incumbents.

c. Socially and environmentally conscious suppliers with standardized products that have multiple substitutes.

d. No monitoring program for all supplier factories.

e. Substitutes that are superior to existing products and costs are reasonable.

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In regards to the link between CSR and economic performance:

Select one:

a. There is no conclusive evidence of a direct, positive link between CSR and economic performance.

b. Some studies report a positive relationship.

c. Some studies find a negative relationship or no relationship.

d. It appears some firms are not cut out for a CSR-intensive strategy.

e. All of the above.

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Free market advocates tend to do all of the following except:

Select one:

a. Argue that “the social responsibility of business is to increase its profits, which leads to efficient capital and product markets.”

b. Argue that all stakeholders have an equal right to bargain for a “fair deal.”

c. Believe that the first and foremost stakeholder group is shareholders.

d. Argue that if firms attempt to attain social goals, managers will lose their focus on profit maximization.

e. Fear that firms will become like SOEs.

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CSR tends to be the least concerned with improving:

Select one:

a. Global sustainability.

b. Shareholder wealth maximization.

c. Rising levels of population.

d. Inequity.

e. High levels of poverty in some countries.

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The instrumental view of CSR advocates that are skeptical of CSR compliance claim:

Select one:

a. That firms may not necessarily be sincere.

b. That firms may be compelled to appear to be sensitive to CSR by impression management—in other words, “window dressing.”

c. That many firms may chase fads by following what others are doing, while not having truly internalized the need for CSR.

d. That CSR activities simply represent a useful means to help make good profits. Firms are not necessarily becoming more “ethical.”

e. All of the above.

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Which is not true about CSR?

Select one:

a. Some CSR policies may reduce the firm’s value.

b. CSR policies may not pay off if common.

c. CSR that is embedded in people is easier to imitate.

d. Organization: a firm needs to tie together CSR activities.

e. It is difficult to prove a link between CSR and economic performance.