Question 1

The CSR threshold is higher in the financial/banking industry than in the apparel industry because ______.
A)less money is involved when consumers purchase clothing than when they buy banking/financial products such as home mortgages
B)it is harder for consumers to identify a victim caused by a CSR violation in the financial/banking industry
C)the apparel industry has dramatically improved supply chain issues such as the use of sweatshop labor
D)bank customers have a great deal of power and can demand more responsible actions from financial institutions

Accepted Answer

The financial/banking industry deals with larger amounts of money and more complex financial products such as mortgages and investments. It can be harder for consumers to identify the victims of CSR violations in this industry compared to the apparel industry where supply chain issues such as the use of sweatshop labor are more visible and well-known.

Question 2

The Honest Company, founded by actress Jessica Alba, sells products such as baby diapers, wipes, and other personal care products.The Honest Company describes its products as being "made without health-compromising chemicals or compounds." This company has a ______ CSR threshold.
A)low
B)medium
C)high
D)extremely high

Accepted Answer

The answer of The Honest Company, founded by actress Jessica...

Question 3

Walmart's core competency is efficient distribution.

Accepted Answer

Walmart's core competency is its ability to efficiently distribute products to its stores, allowing for low prices and wide availability of goods.

Question 4

SWOT analyses allow firms to identify their ______.
A)strategies, wealth, opportunities, and theories
B)strategies, weaknesses, organization, and threats
C)strengths, wealth, opportunities, and theories
D)strengths, weaknesses, opportunities, and threats

Accepted Answer

SWOT analyses allow firms to identify their strengths, weaknesses, opportunities, and threats. This is a common tool used in strategic planning and helps companies determine areas for improvement and potential risks.

Question 5

______ countries have taken the lead in environmental management.
A)Asian
B)European
C)North American
D)South American

Accepted Answer

European countries such as Denmark, Sweden, and Germany have been recognized as leaders in environmental management due to their strong policies and investments in renewable energy, waste management, and conservation efforts. While some Asian countries such as Japan and South Korea have also made progress in environmental management, overall, European countries have taken a more proactive and comprehensive approach. North and South American countries have also made efforts in environmental management, but they have not taken the lead in the same way as European countries.

Question 6

A central feature of Prahalad and Hamel's model of business strategy is its focus on ______.
A)functional business units within a firm
B)core competencies within a firm
C)core competencies of competing firms
D)firm comparisons across industries

Accepted Answer

Prahalad and Hamel's model of business strategy is centered around the concept of identifying and leveraging core competencies within a firm. This approach emphasizes building competitive advantage by focusing on the unique strengths of a company, rather than trying to compete in all areas of the market.

Question 7

One of the reasons that Amazon is successful is that it has achieved a core competency in managing its ______.
A)workforce
B)board of directors
C)products
D)supply chain

Accepted Answer

Amazon has been able to consistently deliver products to customers quickly and efficiently through its advanced supply chain management system. This has been a major factor in its success, as customers have come to expect fast and reliable delivery when they order from Amazon.

Question 8

According to the textbook, the United States Climate Action Partnership (USCAP), formed by a group of energy and manufacturing firms, is ______.
A)CSR as brand insurance
B)CSR as a corporate social opportunity
C)CSR as a key component of cost-benefit analysis
D)CSR as an offensive strategy

Accepted Answer

USCAP is an example of CSR as brand insurance because it was formed by a group of energy and manufacturing firms to improve their public image and protect their brands from criticism related to climate change.

Question 9

CSR can be viewed as ______.
A)a set of defensive policies
B)a set of offensive strategies
C)a set of defensive policies and a set of offensive strategies
D)neither of these

Accepted Answer

CSR (Corporate Social Responsibility) involves both defensive policies and offensive strategies. Defensive policies aim to mitigate negative impacts on society, such as regulatory compliance and risk management. Offensive strategies aim to positively contribute to society, such as philanthropy and sustainable business practices. Therefore, CSR is a combination of both defensive and offensive measures.

Question 10

As the news media and blogosphere continue to expose corporate social responsibility transgressions and people are better able to compare conditions across cultures, what will happen with societal tolerance for irresponsible behavior?
A)It will increase.
B)It will not change.
C)It will decrease.
D)It will be accounted for primarily in financial terms rather than cultural terms.

Accepted Answer

As people become more aware of CSR issues and can compare conditions across cultures, they are likely to become less tolerant of irresponsible behavior. This is because they will have a better understanding of what is expected of companies in terms of social and environmental responsibility, and will be more likely to hold them accountable for any transgressions.

Question 11

Mercedes-Benz operates on a ______ business strategy.
A)cost-leadership
B)premium customer
C)resource utilization
D)differentiation

Accepted Answer

Mercedes-Benz operates on a differentiation business strategy, which emphasizes creating unique, high-quality products that distinguish the brand from competitors. Mercedes-Benz prides itself on its reputation for luxury, quality, and innovation, and it strives to maintain this reputation by investing in research and development, design, and technology. As a result, Mercedes-Benz is able to charge premium prices for its products and maintain a loyal customer base who are willing to pay for the brand's unique features and benefits.

Question 12

Firms that sell based on price are likely ______.
A)to pay greater attention to corporate social responsibility
B)to have the resources to mount an effective corporate social responsibility campaign
C)to attract less attention from consumers on issues unrelated to price
D)to be big and thus attract greater attention from interest groups

Accepted Answer

Firms that sell based on price are often seen as offering low-cost options for consumers and may not attract as much attention from consumers on issues unrelated to price. Their focus on low prices is often seen as their primary selling point and they may not have the resources to devote to corporate social responsibility campaigns or attract greater attention from interest groups.

Question 13

Walmart most likely has a higher CSR threshold because ______.
A)it is a big company
B)it deals with the public
C)it has a business strategy that pursues low costs
D)it is undertaking an extensive corporate social responsibility effort

Accepted Answer

Walmart has a business strategy focused on offering low prices to its customers. Therefore, it may have a higher CSR threshold to ensure that CSR initiatives do not significantly increase costs and affect its pricing strategy.

Question 14

With which of the following is Michael Porter is most closely associated?
A)Strategic CSR
B)the industry perspective
C)the resources perspective
D)SWOT analysis

Accepted Answer

Michael Porter is most closely associated with the industry perspective, which emphasizes the analysis of the competitive environment in which a company operates. He is known for his work on competitive strategy, including his Five Forces framework for analyzing industry attractiveness. However, he has also written about corporate social responsibility, arguing that companies should focus on creating shared value for both the business and society. The resources perspective and SWOT analysis are alternative frameworks for analyzing a company's internal strengths and weaknesses.

Question 15

To assess their potential impact on the firm's stakeholders, any tactical and strategic actions must first pass through a ______.
A)strategic evaluation
B)third-party assessment
C)CSR filter
D)McKinsey consultation

Accepted Answer

The CSR filter (Corporate Social Responsibility filter) is a tool used to evaluate the potential impact of a firm's actions on its stakeholders. It helps ensure that a company's decisions align with ethical and social responsibility considerations, making it the best choice for assessing impact on stakeholders. Options A, B, and D do not provide this specific framework for evaluating impact on stakeholders.

Question 16

In Europe, pressure for corporate social responsibility is more likely to come from ______.
A)courts
B)governments
C)nonprofits (NGOs)
D)competitors

Accepted Answer

In Europe, nonprofits (NGOs) play a significant role in pressuring companies to adopt corporate social responsibility (CSR) practices. NGOs often engage in activism, public campaigning, and advocacy to raise awareness about CSR issues and encourage companies to take action. While government regulations and court rulings can also influence companies to adopt CSR, the role of NGOs is particularly significant in promoting CSR in Europe. Competitors may also inspire companies to adopt CSR practices; however, this influence is less common compared to NGOs.

Question 17

The CSR threshold is the same for all companies in all industries.

Accepted Answer

The CSR threshold may vary for different companies depending on the industry they operate in, the size of the company, and the impact of their operations on society and the environment.

Question 18

According to Prahalad and Hamel, a firm's capability must meet three criteria to be truly considered a core competency.Which of the following is NOT one of the criteria?
A)It should be applicable to multiple markets.
B)It should emphasize the external context in which the firm operates.
C)It should be valued by the consumer.
D)It should be difficult for a competitor to imitate.

Accepted Answer

The three criteria proposed by Prahalad and Hamel for a firm's capability to be considered a core competency are (1) it should be applicable to multiple products and markets, (2) it should contribute to customer benefits, and (3) it should be difficult for competitors to imitate. The emphasis on the external context is not mentioned as one of the criteria.

Question 19

Vision statements do not need to appeal to multiple stakeholders.

Accepted Answer

Vision statements should appeal to multiple stakeholders and stakeholders' interests should be considered while creating a vision statement. A vision statement that solely caters to one stakeholder group may not be effective in providing direction for the organization as a whole.

Question 20

A company with a ______ is more vulnerable to CSR transgressions than a company with a ______.
A)lifestyle brand strategy; low-cost strategy
B)low-cost strategy; lifestyle brand strategy
C)differentiation strategy; lifestyle brand strategy
D)low-cost strategy; differentiation strategy

Accepted Answer

A company with a lifestyle brand strategy is more vulnerable to CSR (Corporate Social Responsibility) transgressions because its brand identity and customer loyalty are closely tied to its public image and ethical standing. In contrast, a company with a low-cost strategy competes primarily on price, making its customer base less sensitive to CSR issues.

Quiz 9: Strategy CSR

The CSR threshold is higher in the financial/banking industry than in the apparel industry because ______.

The Honest Company, founded by actress Jessica Alba, sells products such as baby diapers, wipes, and other personal care products.The Honest Company describes its products as being "made without health-compromising chemicals or compounds." This company has a ______ CSR threshold.

Walmart's core competency is efficient distribution.

SWOT analyses allow firms to identify their ______.

______ countries have taken the lead in environmental management.

A central feature of Prahalad and Hamel's model of business strategy is its focus on ______.

One of the reasons that Amazon is successful is that it has achieved a core competency in managing its ______.

According to the textbook, the United States Climate Action Partnership (USCAP) , formed by a group of energy and manufacturing firms, is ______.

CSR can be viewed as ______.

As the news media and blogosphere continue to expose corporate social responsibility transgressions and people are better able to compare conditions across cultures, what will happen with societal tolerance for irresponsible behavior?

Mercedes-Benz operates on a ______ business strategy.

Firms that sell based on price are likely ______.

Walmart most likely has a higher CSR threshold because ______.

With which of the following is Michael Porter is most closely associated?

To assess their potential impact on the firm's stakeholders, any tactical and strategic actions must first pass through a ______.

In Europe, pressure for corporate social responsibility is more likely to come from ______.

The CSR threshold is the same for all companies in all industries.

According to Prahalad and Hamel, a firm's capability must meet three criteria to be truly considered a core competency.Which of the following is NOT one of the criteria?

Vision statements do not need to appeal to multiple stakeholders.

A company with a is more vulnerable to CSR transgressions than a company with a .