Corporate Social Responsibility Questions

Chapter 4: Corporate Social Responsibility True/False Questions: 1. Corporate social responsibility refers to the actions of an organization that achievement of a social benefit over and above maximizing profits for his shareholders and meeting all of his legal obligations. (True) False 2. Corporate conscience is an antonym for corporate social responsibility, implying that the organization is not a citizen responsible for meeting all of its obligations. True (False) 3. Corporate citizenship is an alternative term for corporate social responsibility, implying that the organization is a citizen responsible. for meeting all of its obligations. (True) False 4. Today’s thirsty public want much more than a cool, refreshing drink for a quarter, and they’re demanding said beverage be made of juice squeezed from lemons not sprayed with insecticides toxic to the environment and achieving this above maximizing profits for its shareholders. This is an example of corporate social responsibility. (True) False 5. In an economic approach to corporate management a corporation’s only obligation is to maximize profits for its shareholders through the provision of goods and services that meet the needs of its customers. True (False) 6. Once CSR becomes part of its strategic plan, choices have to be made as to how the company will address this new element of corporate management. (True) False 7. From an ethical perspective, Friedman argues that it would be unethical for a corporation to do anything other than deliver profits for which investors have entrusted it with their funds in the purchase of shares in the corporation. (True) False 8. From an ethical perspective, Friedman argues that it would be unethical for a corporation to do anything other than deliver profits for which investors have entrusted it with their funds in the purchase of shares in the corporation, regardless whether it stays within the rules of the game. True (False) 9. Friedman’s view of the corporate world supports the rights of individuals to make money with their investments. (True) False 10. The instrumental approach argues that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers. (True) False 11. The social contract approach is a very simplistic model that argues that the corporation only has an obligation to itself. True (False) 12. The modern social contract approach argues that since a corporation depends on society for its existence and continued growth, there is an obligation for that corporation to meet the demands of society rather than just the demands of a targeted group of customers only. (True) False 13. As far back as 1969, Henry ford recognized that corporations operate in an isolated environment. True (False) 14. Management by inclusion refers to the belief that a corporation’s action impacts their customers, employees, suppliers, and the communities in which they produce and deliver their goods and services and some of these groups will be positively affected and others will be negatively affected. (True) False 15. Organizations that demonstrate a “conscience“ beyond profit generation inevitably attract the same amount of attention as organizations that are bottom line-driven. True (False) 16. Lay-offs reduce corporation costs and affect the laid off employees. True (False) 17. Joseph F Keefe asserts that there are three major trends behind the CSR phenomenon True (False) 18. Transparency is a major trend behind the CSR phenomenon. (True) False 19. The companies that support the policy of “doing well by doing good “believe that doing what’s best in the long-term interest of the customer is ultimately doing what’s best for the company. (True) False 20. The policy of “doing well by doing good“ refers to the belief that doing good for the company is just good business. True (False) 21. With the transition to an information based economy, consumers and investors have more information at their disposal than at any time in history, which is one of the major trends of the major trends of the CRS phenomenon. (True) False 22. Many organizations find it difficult to make the transition from CRS as a theoretical concept to CRS as an operational policy. (True) False 23. CRS initiatives have been shown to generate immediate financial gains to the organization after implementation. True (False) 24. Corporations merely experimenting with CRS initiatives run the risk of creating adverse results and ending up worse than when they started . (True) False 25. Corporation that choose to experiment with CRS initiatives run the risk of creating adverse results and ending up worse off than when they started, as the public sees little more than a token action concerned with publicity rather than community. (True) False 26. Many corporations are now a triple bottom line in their annual reports includes updates on their social and environmental activities in addition to their bottom line financial performance. (True) False 27. The challenge of 3BL is that it is difficult to say just how good is the reporting of an organization’s efforts, such as Wayne and MacDonald presenting the scenario of donating 1.2 percent of its profits, without knowing how large the firm is and what the averages in its industrial sector. (True) False 28. It may be easy to make a public commitment to CRS, but actually delivering on commitment to the satisfaction of your customers can be much harder to achieve . (True) False 29. There are four distinctive types of CSR: economic, ethical, altruistic, and strategic. True (False) 30. Ethical CSR is the purest or most legitimate type of CSR in which organization pursue a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to do the right thing for all their stakeholders. (True) False 31. Ethical CSR is the purest or most legitimate type of CSR. (True) False 32. Altruistic CSR is a philanthropic approach to CSR, in which organization underwrite specific initiatives to give back to the company’s local community or to designated national or international programs. (True) False 33. Economic CSR is the purest or most legitimate type of CSR. True (False) 34. Altruistic CRS takes a philanthropic approach by giving back to the local community or to designated national or international programs. (True) False 35. When Home Depot announced a direct cash donation of $1. 5 million to support the relief and rebuilding efforts in areas devastated by Hurricane Katrina, this an example of Economic CSR. True (False) 36. When an organization uses strategic CRS, it faces the smallest risk of being perceived CSR. True (False) 37. Strategic CSR targets programs that will generate the most positive publicity or good will for the organization. (True) False 38. In contrast to the alleged immorality of altruistic CSR critics argue that strategic CRS is ethically commendable since these initiatives benefit stakeholders while meeting fiduciary obligations to the company’s shareholders. (True) False 39. The question with strategic CSR remains: without a win-win pay off, would such CSR initiatives be authorized? (True) False 40. One of the newest and increasingly questionable practices in the world of CSR is the notion of making your operations “carbon neutral”. (True) False 41. The practices of making a company’s operations “carbon neutral“ to off set damage to the environment through your greenhouse gas emissions was initially developed as a solution for those industries that face significant challenges in reducing their emissions, such as airlines or automobile companies. (True) False 42. You can learn what your carbon footprint is at ((www. carbonfootprint. com calculator. Aspx)), where you can calculate the carbon dioxide emissions from your home and car and then total emissions on an annual basis. (True) False 43. The Greenhouse Gas Association (GHGA) promotes the standardization of carbon trading on global scale. True (False) Multiple Choice Questions: 44. ________________implies that the organization is a citizen, responsible for meeting all of its obligations. A. Corporate ethics B. Ethical obligation C. Corporate conscience (D). Corporate citizenship 45. _______________are the actions of an organization that target achieving social benefit over and above maximizing profits for its shareholders and meeting all legal obligations. (A). Corporate social responsibility B. Corporate social obligation C. Corporate conscience D. Corporate citizenship 46. ____________implies that an organization operates with an awareness of its obligation to society. A. Corporate social responsibility B. Corporate social obligation (C). Corporate conscience D. Corporate citizenship 47. The definition of corporate social responsibility assumes the corporation _____________. (A). is operating in a competitive environment. B. is committed to a retrenchment strategy. C. Complies with federal and state legal obligations. D. is committed to a moderate growth strategy. 48. The ________approach to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders. A. Shareholders approach. B. Social contract approach. C. Economic approach. (D). Instrumental approach. 49. Many companies adopted a policy of ________ only after the surprising public response to issues companies did not previously consider to be part of their business responsibilities. A. Social conscience. B. Instrumental citizenship. (C). Corporate social responsibility. D. Social contracts. 50. ________said that it would be unethical for corporation to do anything other delivers profits for its investors. A. Henry Ford (B). Milton Friedman C. Steve Jobs D. Allen Greenspan 51. In a __________, a corporate executive is as employee of the owners of the business. A. Capitalist, public property system B. Socialist, state-owned system C. Laissez-faire, public property system (D). Free –enterprise, private property system 52. The _________ approach to corporate management is considered simplistic because it assumes that there are no external consequences to the actions of the corporation. A. Shareholder. (B). Social contract. C. Economic. D. Instrumental. 53. By recognizing ________rather than__________, corporations must maintain a long – term – perspective rather than simply delivering quarterly earning numbers. (A). Stakeholders; shareholders. B. Customers; investors. C. Community partners; shareholders. D. Shareholders; stakeholders. 54. As early as 1969 it was recognized that corporations__________ A. Actions do not impact their external environment. (B). Do not operate in an insolated environment. C. Can actually increase their profits by being socially responsible. D. Have a responsibility to shareholders before stakeholders. 55. As early as 1969 __________recognized those corporations do not operate in an isolated environment (A). Henry Ford. B. Milton Friedman. C. Steve Jobs. D. Allen Greenspan. 56 In the last 30 years alone, we have consumed __________ of the planer’s resources. A. 1/4. (B). 1/3. C. 1/2. D. 4/5. 57. The policy of ___________ is the corporate social responsibility of doing what’s in the long – term interest of the customer is ultimately is doing what’s best for the company. A. Sustainability. (B). Doing well by doing good. C. Social contract. D. Doing well by responsibility. 58. All of the following are major trends behind the CSR phenomenon except: A. Sustainability B. Globalization (C). The failure of the private sector D. Knowledge 59. The greatest period of reform in the U. S. produced of the following, except: A. Unemployment laws B. The minimum wage. C. Child labor laws. (D). Sexual harassment laws. 60. Many CSR initiatives_____________ A. Generate immediate financial gains to the organization. B. Do not generate long-term financial gains to the organization. (C). Do not generate immediate financial gains to the organization. D. Generate enough financial gains for the organization to break even. 61. Corporations that experiment with CSR initiatives run the risk of creating all of the following results, except: A. Employees fell that they are working for an insincere organization. B. The public sees the initiative as little more than a token action. (C). Shareholders fell that their organization will deliver bigger profits with their initiatives. D. The organization does not see much benefit of CSR and therefore sees no need to develop the concept. 62. Many corporations are now reporting _________ in their annual reports that includes updates on their social and environmental activities in addition to their bottom line financial performance. A. Consumerism B. a double bottom line C. Economic CSR (D). a triple bottom line 63. ____________ CSR is the most legitimate type of CSR A. Altruistic (B). Ethical C. Economic D. Strategic 64. Organizations pursuing a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to “do the right thing“ for all their stakeholders follow a (n)____ _____initiative. A. Altruistic CSR B. Strategic CSR (C). Ethical CSR D. Economic CSR 65. _______________ is a philanthropic approach to CSR, in which organization underwrite specific initiatives to give back to the company’s local community or to designated or to designated national or international programs. (A). Altruistic CSR. B. Strategic CSR. C. Ethical CSR. D. Economic CSR. 66. Which approach to CSR argues that philanthropic initiatives are authorized without concern for the corporation’s overall profitability? (A). Altruistic. B. Ethical. C. Economic. D. Strategic. 67. Southwest Airlines supports the Ronald Mc Donald Houses with donations of both dollars and employee-donated volunteer hours. This is an example of __________CSR. A. Strategic. B. Economic. (C). Altruistic. D. Ethical. 68. __________CSR encompasses philanthropic activities targeted toward programs that generate the most positive publicity or good will for the organization. A. Altruistic. B. Ethical. C. Economic. (D). Strategic. 69. __________ is one of the newest and increasingly questionable practices in the world of CSR. A. Risk management and emergency preparedness. B. Water conservation. C. Greenhouse gas conscience. (D). “Carbon neutral" operations. 70. The practices of making a company’s operations __________, to off set damage to the environment through the greenhouse gas emissions, was initially developed as a solution for those industries that face significant challenges in reducing their emissions. A. Focused on consumerism. B. Focused on water conservation . C. “greenhouse gas neutral“. (D). “carbon neutral“. 71. In November 2006, the Deutsche Bank teamed up with more than a dozen investment banks and five carbon- trading organization in Europe to create the __________. A. Carbon Counter Association (CCA) B. Greenhouse Gas Association (GHGA) (C). European Carbon Investors and Services Association (ECIS) D. Clean Air Association (CAA) 72. Corporate Citizenship implies that organization is responsible for meeting all of its obligations. 73. Corporate Social responsibility are the actions of an organization that target achieving a social benefit over and above maximizing for its shareholders and legal obligations. 74. Corporate Social responsibility implies that an organization operates with an awareness of its obligation to society. 75. The Instrumental approach to corporate management states with an awareness of its obligation to society. 76. Many companies adopt a policy of corporate Social responsibility only after being surprised by public responses to issues they had not previously thought were part of their business responsibilities. 77. Milton Friedman said it would be unethical for a corporation to do anything other than deliver profits for its investors.