Deck 5: Corporate Stakeholder Responsibility

Question 1

According to the text,the range of firm behavior that generates value for both internal and external stakeholders in sufficient quantities is termed ________.

A)the strategic CSR window of opportunity
B)the strategic CSR best practices
C)maximizing strategic CSR
D)strategic CSR expansion

Answer 1

A

Question 2

Charles Handy argued for which of the following ideas?

A)There should be more government intervention when CSR is lacking.
B)Firms should seek societal goals beyond making profits.
C)Market forces should not play a role in CSR.
D)CSR is not a proper concern of companies.

Answer 2

B

Question 3

The ________ argument for CSR assumes that firms act most effectively when they are incentivized to do so.

A)economic
B)moral
C)rational
D)ethical

Answer 3

A

Question 4

What characterizes the current era of globalization?

A)Individuals are the main agents of globalization.
B)Countries have much more economic and military power than before.
C)Multinational companies look abroad for markets and labor.
D)Markets are integrated globally.

Question 5

When a firm prioritizes stakeholder concerns in relation to a given issue,________ is maintained when the firm is able to stay where opportunity is maximized and risk minimized.

A)the CSR sweet spot
B)the CSR danger zone
C)the CSR threshold
D)CSR optimization

Question 6

Who is most likely the author of the following quote? "It is salutary to ask about any organization,'If it did not exist,would we invent it?' 'Only if it could do something better or more useful than anyone else' would have to be the answer,and profit would be the means to that larger end."

A)Charles Handy
B)Milton Friedman
C)Barack Obama
D)Congressional Banking Oversight Committee

Question 7

The text argues that the CSR cause is best advanced when stakeholders are not only caring and informed but also ________ and ________.

A)transparent; educated
B)transparent; powerful
C)educated; organized
D)action oriented; transparent

Question 8

Demand for firms to be socially responsible may arise from

A)special interest groups and suppliers.
B)employees and customers.
C)company leaders.
D)all of the above.

Question 9

Which of the following is an application of Milton Friedman's ideas?

A)A large,multinational corporation tries to ensure that workers throughout the supply chain earn a living wage.
B)A small business makes maximizing profits its top priority.
C)A firm decides to implement a recycling program to benefit the environment.
D)A medium business encourages its employees to volunteer in the community.

Question 10

________ occurs when stakeholders act to punish the firm for not meeting their expectations in relation to that issue.

A)The CSR sweet spot
B)The CSR danger zone
C)The CSR threshold
D)CSR optimization

Question 11

When will firms generally see stakeholder reactions to the firm's decisions?

A)Within 1 month
B)Within 1 year
C)Within 5 years
D)There is no time limit on reactions.

Question 12

Milton Friedman argued for which of the following ideas?

A)There should be more government intervention when CSR is lacking.
B)Firms should seek societal goals beyond making profits.
C)Market forces should not play a role in CSR.
D)CSR is not a proper concern of companies.

Question 13

Which of the following is an example of a firm implementing the moral argument for CSR?

A)A manufacturing business uses eco-products to keep up with its competitors.
B)A large corporation pays its employees a living wage to end a consumer boycott.
C)A small business buys hybrid cars because of the tax benefits.
D)A corporation ensures its products are made in fair labor conditions because it is the right thing to do.

Question 14

An unchecked,unbridled pursuit of economic value,without regard to the social consequences (e.g.,such as by manufacturing a product in a way that generates excessive pollution),creates

A)the strategic CSR window of opportunity.
B)a CSR deficit for the society in which the firm operates.
C)the CSR perspective.
D)the Iron Law of Social Responsibility.

Question 15

Which of the following are NOT an example of stakeholder retaliation?

A)Governmental regulations related to cleaning products
B)Boycotts by consumers of cleaning products that harm the environment
C)TV advertisements for a cleaning product that does not harm the environment
D)Strikes by employees for higher wages

Question 16

Which publication published Milton Friedman's article "The Responsibility of Business to Increase Its Profits?"

A)The Wall Street Journal
B)The New York Times Magazine
C)The Economist
D)Forbes

Question 17

What did Milton Friedman argue in his seminal 1970 article published in The Wall Street Journal?

A)Profit,although important,should not be the primary focus of firms.
B)Firms have a duty to pay their employees a living wage.
C)Profit,as a result of the actions of the firm,is an end in itself.
D)Firms do not provide value to society unless they are acting in a socially responsible manner.

Question 18

Thomas Friedman wrote that we are in the era of ________.

A)Globalization 1.0
B)Globalization 2.0
C)Globalization 3.0
D)Globalization 4.0

Question 19

Today,stakeholders outside the firm have greater opportunities to mobilize their efforts because of

A)society's elites.
B)greater sophistication among government leaders.
C)declining world trade.
D)the revolution in communications technology.

Question 20

What did Charles Handy argue in his 2002 Harvard Business Review article?

A)A corporation should not waste time on CSR initiatives.
B)If businesses are not making large profits,they should not exist.
C)Firms should make satisfying shareholders their first priority.
D)A business has to have a motivation other than merely making a profit in order to justify its existence.

Question 21

60 Minutes exposed the mislabeling of products by the flooring company Lumber Liquidators,and the EPA threatened to withhold approval for selling Volkswagen and Audi diesel models.These are both examples of

A)corporate social responsibility.
B)corporate stakeholder responsibility.
C)bureaucratic overstepping that negatively impacts business.
D)Milton Friedman's concept of the social responsibility of business.

Question 22

The United Nations' Principles of Responsible Management Education (PRME)are important because

A)they set a standard baseline for the teaching of ethical decision making in all business schools.
B)a growing awareness and acceptance of CSR is a necessary component of meaningful change.
C)business educators can best determine morally acceptable business practices.
D)business education will shape the future of what is considered socially responsible corporate behavior.

Question 23

If stakeholders do not express dissatisifaction with a firm's actions,it means they are satisfied.

Question 24

For long-term success,a firm should focus on its organizational stakeholders.

Question 25

The definition of what is and is not socially responsible is

A)universally understood across cultures.
B)established in the United Nations' Principles of Responsible Management Education (PRME).
C)primarily determined by laws and government regulations.
D)changing all the time and up to stakeholders to determine.

Question 26

All stakeholders have an obligation to help design the society in which they want to live and work.

Question 27

The United Nations' Principles of Responsible Management Education (PRME)include which of the following?

A)To develop the capabilities of students to work for an inclusive and sustainable economy
B)To interact with managers of business corporations to extend our knowledge of their challenges in meeting social and environmental responsibilities
C)To facilitate and support dialog with multiple stakeholders on critical issues related to global social responsibility and sustainability
D)All of the above

Question 28

As awareness of socially responsible business practices has increased,consumers have generally responded by

A)paying significant price premiums for socially responsible products.
B)continuing to focus primarily on the price and/or quality of products.
C)refusing to purchase products if they are not "green certified."
D)paying more for "green" products but not for other socially responsible products.

Question 29

Which of the following is true in relation to CSR and many other aspects of business?

A)It does not pay firms to be too far ahead of the curve.
B)Firms that take the lead on CSR issues are almost always rewarded by consumers.
C)It pays firms to be way ahead the curve.
D)Firms that take the lead on CSR issues are never rewarded by consumers.

Question 30

Corporate social responsibility can be defined as the responsibility of firms to act in accordance with stakeholder needs.

Question 31

The textbook's author states,"We do not need more responsible companies; we need more responsible stakeholders." Analyze this statement,providing examples to support or refute it.

Question 32

The CSR debate is often characterized as a battle between supporters of Milton Friedman on one side and the supporters of Charles Handy on the other.Describe this "battle" and analyze the adequacy of this metaphor as a characterization of current CSR debates.

Question 33

The text argues that CSR is not only a corporate responsibility but also a(n)________ responsibility.

A)shareholder
B)stakeholder
C)management
D)industry

Question 34

Milton Friedman and Charles Handy had very similar ideas about businesses and their purpose.

Question 35

Firms who do not act responsibly always face negative consequences.

Question 36

Companies are more likely to continue to act socially responsible if it is the right thing to do.

Question 37

Social responsibility is more than a set of abstract standards.

Question 38

According to the text,"untrammeled consumption" has damaging consequences in all but which of the following domains?

A)Economic
B)Environmental
C)Psychological
D)Sociological

Question 39

Recent research has indicated that

A)people are more honest in the morning than in the afternoon.
B)people are more honest in the afternoon than in the morning.
C)people are equally honest in the morning and the afternoon.
D)time of day does not impact ethical decision making.

Question 40

According to the Gallup "Annual Honesty and Ethics poll," the percentage of the US public surveyed who rated business executives' ethics as "high" or "very high" is

A)rising dramatically,with over 50% responding that business leaders are ethical.
B)dropping dramatically,from over 75% in 1990 to approximately 50% in 2014 responding that business leaders are ethical.
C)remaining consistently high,with approximately 75% responding that business leaders are ethical.
D)remaining consistently low,with never more than 25% responding that business leaders are ethical.

Question 41

Arguments can be made that firms are primariliy responsible for CSR practices,and other arguments can be made that stakeholders are primarily responsible for CSR.Describe the two sides to this debate and analyze which argument you support more.

Question 42

Current growth in activist organizations can be attributed to the adoption of the six Principles of Responsible Management Education (PRME)by many business schools.Select three of the six principles and,in your own words,describe how the selected principles can lead to greater social responsibility by corporations and stakeholders.

Question 43

The textbook argues that the CSR cause would be advanced considerably if stakeholders are caring,informed,transparent,and educated.Describe what that statement means,citing examples to support your response.