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Test Bank Strategic Corporate Social Responsibility Sustainable Value Creation 4th Edition David Chandler

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Test Bank Strategic Corporate Social Responsibility Sustainable Value Creation 4th Edition David Chandler

Test Bank Strategic Corporate Social Responsibility Sustainable Value Creation 4th Edition  David Chandler

Chapter 1: What Is CSR?

Test Bank

 

Multiple Choice

 

1. Which of the following exists to define the rules and structures of society within which all organizations must operate?

a. For-profits

b. Governments

c. Nonprofits

d. Religion

Ans: B

Cognitive Domain: Knowledge

Answer Location: What Is CSR?
Difficulty Level: Easy

 

2. Which of these is NOT a for-profit business?

a. Facebook

b. Nike

c. Red Cross

d. Uber

Ans: C

Cognitive Domain: Comprehension

Answer Location: What Is CSR?
Difficulty Level: Easy

 

3. Which of the following is NOT part of Archie Carroll’s pyramid of corporate social responsibility?

a. Stakeholder responsibility

b. Legal responsibility

c. Discretionary responsibility

d. Ethical responsibility

Ans: A

Cognitive Domain: Comprehension

Answer Location: A New Definition of CSR
Difficulty Level: Easy

 

4. An application of Milton Friedman’s argument is

a. providing workers time off to volunteer in their communities.

b. establishing a recycling program.

c. maximizing shareholder returns.

d. clearly defining ethical concerns along a product’s supply chain.

Ans: C

Cognitive Domain: Application

Answer Location: What Is CSR?
Difficulty Level: Medium

 

5. In the 1790s, consumer boycotts occurred in reactions to which of the following?

a. Slave-harvested sugar

b. Cheap cotton from the United States

c. The high price of fuel (lamp) oil

d. The use of the Royal Navy in England to transport slaves

Ans: A

Cognitive Domain: Knowledge

Answer Location: The Evolution of CSR
Difficulty Level: Medium

 

6. A central part of the moral argument for corporate social responsibilitycomes from the thinking that

a. businesses have to pay taxes, so they should have to be responsible in other ways as well.

b. society cannot afford all its needs unless business is forced to go beyond just paying taxes.

c. business leaders and shareholders make money, so they should be morally responsible to society, especially to the poor.

d. a large part of business success comes as much from actions that are congruent with societal values and norms as from factors internal to the company.

Ans: D

Cognitive Domain: Comprehension

Answer Location: Foundations of CSR—A Moral Argument for CSR
Difficulty Level: Hard

 

7. The rational argument for corporate social responsibilityis summarized by the Iron Law of Social Responsibility, which states that

a. ultimately it is government, not business, that is responsible for a satisfying society.

b. responsibility for a just society is everyone’s responsibility.

c. in a free society, discretionary abuse of societal responsibilities leads, eventually, to mandated reprisals.

d. concern for CSR must be the first priority of the courts.

Ans: C

Cognitive Domain: Comprehension

Answer Location: Foundations of CSR—A Rational Argument for CSR
Difficulty Level: Medium

 

8. Strategic CSR expounds the ________ argument in favor of corporate social responsibility.

a. Financial

b. Economic

c. Political

d. Social

Ans: B

Cognitive Domain: Knowledge

Answer Location: Foundations of CSR—An Economic Argument for CSR
Difficulty Level: Medium

 

9. Which of the following is an example of an economic argument for corporate social responsibility?

a. A company invests in clean energy for its vehicles because it saves money on transportation.

b. A company installs skylights in its stores to lower lighting costs.

c. A company provides gym memberships to its employees to lower healthcare costs.

d. All of the above are examples of economic arguments for CSR.

Ans: D

Cognitive Domain: Application

Answer Location: Foundations of CSR—An Economic Argument for CSR
Difficulty Level: Medium

 

10. “In a democratic society, power is taken away from those who abuse it” is a workable definition of:

a. Carroll’s CSR rule

b. The Iron Law of Social Responsibility

c. The Alien Tort Claims Act

d. An accommodative view of CSR

Ans: B

Cognitive Domain: Application

Answer Location: Foundations of CSR—A Rational Argument for CSR
Difficulty Level: Medium

 

11. Energy companies and industrial manufacturers set up the United States Climate Action Partnership (USCAP), which supports carbon limits and trading. This is an illustration of which argument for corporate social responsibility?

a. Ethical

b. Moral

c. Rational

d. Economic

Ans: C

Cognitive Domain: Comprehension

Answer Location: Foundations of CSR—A Rational Argument for CSR
Difficulty Level: Medium

 

12. In contrast to Milton Friedman’s argument, David Packard argued that

a. businesses exist not only to make money but also to contribute to society.

b. the sole purpose of businesses is to make money.

c. businesses need not consider all stakeholders.

d. shareholders are responsible for the larger community within which a firm operates.

Ans: A

Cognitive Domain: Comprehension

Answer Location: What Is CSR?
Difficulty Level: Medium

 

13. Which of the following best describes nonprofit organizations?

a. They emerge to do social good when the political will or the profit motive is insufficient to address society’s needs.

b. They emerge primarily to meet the religious or spiritual needs of a society.

c. They emerge to supplement businesses that do not make profits.

d. They emerge to meet the needs of governments that do not have adequate financial resources to address society’s needs.

Ans: A

Cognitive Domain: Comprehension

Answer Location: What Is CSR?
Difficulty Level: Easy

 

14. According to Archie Carroll’s pyramid of corporate social responsibility, a firm’s ________ is to produce an acceptable return for investors.

a. economic responsibility

b. legal responsibility

c. ethical responsibility

d. discretionary responsibility

Ans: A

Cognitive Domain: Knowledge

Answer Location: A New Definition of CSR
Difficulty Level: Easy

 

15. According to Archie Carroll’s pyramid of corporate social responsibility, a firm’s ________ is to act within the framework of laws and regulations drawn up by the government and judiciary.

a. economic responsibility

b. legal responsibility

c. ethical responsibility

d. discretionary responsibility

Ans: B

Cognitive Domain: Knowledge

Answer Location: A New Definition of CSR
Difficulty Level: Easy

 

16. According to Archie Carroll’s pyramid of corporate social responsibility, a firm’s ________ is to do no harm to its stakeholders within its operating environment.

a. economic responsibility

b. legal responsibility

c. ethical responsibility

d. discretionary responsibility

Ans: C

Cognitive Domain: Knowledge

Answer Location: A New Definition of CSR
Difficulty Level: Easy

 

17. According to Archie Carroll’s pyramid of corporate social responsibility, a firm’s ________ is to take proactive, strategic behaviors that benefit both the firm and society.

a. economic responsibility

b. legal responsibility

c. ethical responsibility

d. discretionary responsibility

Ans: D

Cognitive Domain: Knowledge

Answer Location: A New Definition of CSR
Difficulty Level: Easy

 

18. Applying Archie Carroll’s pyramid of corporate social responsibility, when a firm closes due to financial mismanagement and bankruptcy, it has not met its ________.

a. economic responsibility

b. legal responsibility

c. ethical responsibility

d. discretionary responsibility

Ans: A

Cognitive Domain: Comprehension

Answer Location: A New Definition of CSR
Difficulty Level: Easy

 

19. A firm sponsors a 5k race, contributing the race fees to a local charity. According to Archie Carroll’s pyramid of corporate social responsibility, the firm is meetings its ________.

a. economic responsibility

b. legal responsibility

c. ethical responsibility

d. discretionary responsibility

Ans: D

Cognitive Domain: Application

Answer Location: A New Definition of CSR
Difficulty Level: Medium

 

20. The Malden Mills textile plant is an important case study in CSR because 

a. it moved its operations to Asia to save production costs, but eliminated local jobs.

b. it moved its operations to Asia while also maintaining local jobs.

c. it remained open, continuing to pay its employees, after a fire destroyed the factory.

d. it closed after a fire destroyed the factory.

Ans: C

Cognitive Domain: Knowledge

Answer Location: The Evolution of CSR
Difficulty Level: Easy

 

21. Consequentialist (or utilitarian) reasoning justifies action in terms of the outcomes generated (e.g., the greatest good for the greatest number of people). Such reasoning is part of which argument for corporate social responsibility?

a. Ethical

b. Moral

c. Rational

d. Economic

Ans: C

Cognitive Domain: Comprehension

Answer Location: Foundations of CSR—An Ethical Argument for CSR
Difficulty Level: Medium

 

22. Financial scandals around the turn of this century at Enron, WorldCom, Adelphia, HealthSouth, and others led to which of the following?

a. Greater reliance on nonstandard accounting practices

b. Less reliance on nonstandard accounting practices

c. New laws and governmental rulings that limit business’s discretionary actions

d. Revocation of laws and rulings that limit business’s discretionary actions

Ans: C

Cognitive Domain: Comprehension

Answer Location: Foundations of CSR—A Rational Argument for CSR
Difficulty Level: Medium

 

23. By adopting a rational argument for corporate social responsibility, firms seek to

a. do the right thing from an ethical perspective.

b. to interpret evolving societal values and stakeholder expectations.

c. make larger societal contributions than simply creating profit.

d. go above and beyond the basic ethical and moral expectations of a society.

Ans: B

Cognitive Domain: Comprehension

Answer Location: Foundations of CSR—A Rational Argument for CSR
Difficulty Level: Medium

 

24. Peter Drucker stated, “Profit for a company is like oxygen for a person. If you don't have enough of it, you’re out of the game. But if you think your life is about breathing, you’re really missing something.” This statement reflects the ________ argument for corporate social responsibility.

a. ethical

b. moral

c. rational

d. economic

Ans: B

Cognitive Domain: Knowledge

Answer Location: Foundations of CSR—A Moral Argument for CSR
Difficulty Level: Easy

 

25. Corporate social responsibility adds value because it allows companies to reflect the needs and concerns of their various stakeholder groups. This statement reflects the ________ argument for CSR.

a. ethical

b. moral

c. rational

d. economic

Ans: D

Cognitive Domain: Knowledge

Answer Location: Foundations of CSR—An Economic Argument for CSR
Difficulty Level: Easy

 

26. Society benefits most when firms focus purely on their own financial success. This statement best reflects the ideas of ________.

a. Charles Handy

b. Adam Smith

c. David Packard

d. Milton Friedman

Ans: D

Cognitive Domain: Knowledge

Answer Location: What Is CSR?
Difficulty Level: Easy

 

27. From a corporate social responsibility perspective, a firm’s success is primarily related to its ability to

a. incorporate stakeholder concerns into its business model.

b. maximize the use of all its internal and external resources.

c. minimize its tax liabilities.

d. create more energy-efficient manufacturing processes.

Ans: A

Cognitive Domain: Knowledge

Answer Location: A New Definition of CSR
Difficulty Level: Medium

 

28. The call for social responsibility among businesses is generally recognized as a concept that began in which time period?

a. The early late 20th century, after the impact of the Industrial Revolution

b. The late 20th century and early 21st century, after numerous widespread financial scandals

c. Ancient times, as early as the writings of Socrates

d. The 17th century, after concerns about the excesses of the East India Company were publicized

Ans: C

Cognitive Domain: Knowledge

Answer Location: The Evolution of CSR
Difficulty Level: Medium

 

29. According to the textbook, corporate social responsibility is strongest when

a. business leaders view their role as stewards of resources owned by others.

b. lower-level employees take the lead in developing socially responsible practices in the workplace.

c. consumers demand higher levels of social responsibility.

d. government requires specific business practices.

Ans: A

Cognitive Domain: Comprehension

Answer Location: The Evolution of CSR
Difficulty Level: Medium

 

30. Which of the following is NOT a characteristic of corporate social responsibility?

a. It is a static target that does not change.

b. It is an evolving concept.

c. It varies across countries and cultures.

d. It is both critical and controversial.

Ans: A

Cognitive Domain: Comprehension

Answer Location: Throughout chapter
Difficulty Level: Medium

 

True/False

1. Since the early 19th century, managers have consistently paid attention to the interests of all stakeholders.

Ans: False

Cognitive Domain: Comprehension

Answer Location: What Is CSR?
Difficulty Level: Medium

 

2. There is widespread agreement among corporate executives about the necessity of corporate social responsibility.

Ans: False

Cognitive Domain: Application

Answer Location: What Is CSR?
Difficulty Level: Easy

 

3. One definition of corporate social responsibilityis “a responsibility among firms to meet the needs of their stakeholders and a responsibility among stakeholders to hold firms to account for their actions.”

Ans: True

Cognitive Domain: Knowledge

Answer Location: A New Definition of CSR
Difficulty Level: Easy

 

4. By adopting a rational argument for corporate social responsibility, firms seek to interpret evolving societal values and stakeholder expectations, and they act to avoid future sanctions.

Ans: True

Cognitive Domain: Knowledge

Answer Location: Foundations of CSR—A Rational Argument for CSR
Difficulty Level: Easy

 

5. The moral argument for corporate social responsibilityfocuses on adopting the path of least resistance with regard to issues of concern that make common and business sense.

Ans: False

Cognitive Domain: Comprehension

Answer Location: Foundations of CSR
Difficulty Level: Easy

 

Essay

 

1. Define corporate social responsibility. What arguments in favor of CSR seem most important to you? How is CSR different from strategic CSR?

Ans: A good answer must acknowledge various definitions of CSR, recognize that CSR is much more than corporate philanthropy, and discuss the differences between CSR and strategic CSR.

Cognitive Domain: Analysis

Answer Location: Throughout chapter
Difficulty Level: Hard

 

2. Describe the famous example of the Malden Mills fire and discuss Aaron Feuerstein’s response to the fire. Was his response an example of corporate social responsibility? Why or why not? What are some other approaches the company could have taken?

Ans: The answer must adequately describe the case and illustrate that, unless a firm is economically viable, even the best of intentions will not enable stakeholders to achieve their goals and create social value.

Cognitive Domain: Application & Analysis

Answer Location: The Evolution of CSR (pulling on principles throughout chapter)
Difficulty Level: Hard

 

3. Define and discuss briefly the ethical, moral, rational, and economic arguments for corporate social responsibility. Of the four components, which one is more relevant to you and why?

Ans: A good answer will accurately define and discuss each of the four arguments for CSR and have a strong discussion of personal relevance.

Cognitive Domain: Application & Analysis

Answer Location: Throughout chapter
Difficulty Level: Medium

 

4. The textbook states that corporate social responsibility“is a fluid concept.” What does this mean?

Ans: A good answer will describe how definitions of CSR vary and evolve within countries over time as well as vary across countries and cultures.

Cognitive Domain: Comprehension

Answer Location: A New Definition of CSR
Difficulty Level: Medium

 

5. The textbook states that corporate social responsibilityis both a process and an outcome. What does this mean?

Ans: A good answer will illustrate that (a) the CSR process is the way the firm goes about delivering its products or services to markets and (b) the CSR outcome is a way of maintaining the legitimacy of the firm’s actions in the larger society by bringing stakeholder concerns to the foreground.

Cognitive Domain: Comprehension

Answer Location: A New Definition of CSR
Difficulty Level: Hard