ࡱ> c nRbjbj 4MbMbJ\T T 8lFrFtFtFtFtFtFtF$HKtFFFw.w.w.RrFw.rFw.w.r7T8nhUb7^FF0Fp7KK8K8Pw.FF&FKT B : Chapter 1: What Is CSR? Test Bank Multiple Choice 1. Which of the following exist 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. All those who in some way are related to a firms activities are known as ______. A. shareholders B. public C. stakeholders D. clients Ans: C Cognitive Domain: Knowledge Answer Location: A New Definition of CSR Difficulty Level: Easy 3. 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 4. With the rise of agency theory, there has been a renewed focus on what group in companies? A. managers B. employees C. clients D. shareholders Ans: D Cognitive Domain: Comprehension Answer Location: What Is CSR? Difficulty Level: Moderate 5. Which of the following is NOT part of Archie Carrolls 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 6. An application of Milton Friedmans 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 products supply chain Ans: C Cognitive Domain: Application Answer Location: What Is CSR? Difficulty Level: Medium 7. 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 8. A central part of the moral argument for corporate social responsibility comes 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 9. The rational argument for corporate social responsibility is 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 everyones 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 10. 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 11. 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 health-care costs. D. All of these 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 12. In a democratic society, power is taken away from those who abuse it is a workable definition of ______. A. Carrolls 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 13. 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 14. In contrast to Milton Friedmans 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 15. 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 societys 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 societys needs. Ans: A Cognitive Domain: Comprehension Answer Location: What Is CSR? Difficulty Level: Easy 16. If Facebook is seen to be dominating the social media market, what type of corporate social responsibility would it be violating? A. ethical B. economic C. legal D. discretionary Ans: B Cognitive Domain: Comprehension Answer Location: Throughout Chapter Difficulty Level: Medium 17. According to Archie Carrolls pyramid of corporate social responsibility, a firms ______ 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 18. James Rogers (the CEO of Duke Energy) once stated: If you are not at the table when these negotiations are going on, youre going to be on the menu. This illustrates what argument for CSR? A. moral B. economic C. rational D. ethical Ans: C Cognitive Domain: Knowledge Answer Location: Foundations of CSR | A Rational Argument for CSR Difficulty Level: Medium 19. According to Archie Carrolls pyramid of corporate social responsibility, a firms ______ 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 20. The rational argument for CSR rests on ______. A. sanction avoidance B. social norms C. moral integrity D. societal rules Ans: A Cognitive Domain: Comprehension Answer Location: Foundations of CSR | A Rational Argument for CSR Difficulty Level: Medium 21. According to Archie Carrolls pyramid of corporate social responsibility, a firms ______ 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 22. In terms of social activism, what book could be credited with being a catalyst for the environmental movement? A. The Perfect Storm B. Prodigal Summer C. The Water Knife D. The Silent Spring Ans: D Cognitive Domain: Knowledge Answer Location: The Evolution of CSR Difficulty Level: Easy 23. According to Archie Carrolls pyramid of corporate social responsibility, a firms ______ 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 24. CSR refers to both ______. A. an input and an output B. ethics and outcomes C. a process and an outcome D. a theory and an application Ans: C Cognitive Domain: Knowledge Answer Location: A New Definition of CSR Difficulty Level: Medium 25. Applying Archie Carrolls 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 26. A firm sponsors a 5k race, contributing the race fees to a local charity. According to Archie Carrolls 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 27. The Malden Mills textile plant is an important case study in CSR because ______. A. it showed that some things are more important than profit B. it demonstrated the futility of the textile industry in New England C. it illustrated that no firm, whatever the motivation, can or should indefinitely spend money it does not have D. it showed the downsides of outsourcing Ans: C Cognitive Domain: Comprehension Answer Location: The Evolution of CSR | Malden Mills Difficulty Level: Medium 28. 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: A Cognitive Domain: Comprehension Answer Location: Foundations of CSR | An Ethical Argument for CSR Difficulty Level: Medium 29. 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 businesss discretionary actions D. revocation of laws and rulings that limit businesss discretionary actions Ans: C Cognitive Domain: Comprehension Answer Location: Foundations of CSR | A Rational Argument for CSR Difficulty Level: Medium 30. 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 31. Peter Drucker stated, Profit for a company is like oxygen for a person. If you don't have enough of it, youre out of the game. But if you think your life is about breathing, youre 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 32. 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 33. 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 34. From a corporate social responsibility perspective, a firms 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 35. 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 36. 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 37. For a hair care salon shop that is a privately owned business, which of the following is NOT likely to be a stakeholder? A. tax authorities B. customers C. suppliers of hair dryers D. the New York Stock Exchange (NYSE) Ans: D Cognitive Domain: Comprehension Answer Location: What Is CSR? Difficulty Level: Medium 38. 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: F 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: F Cognitive Domain: Application Answer Location: What Is CSR? Difficulty Level: Easy 3. One definition of corporate social responsibility is 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: T 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: T Cognitive Domain: Knowledge Answer Location: Foundations of CSR | A Rational Argument for CSR Difficulty Level: Easy 5. The moral argument for corporate social responsibility focuses on adopting the path of least resistance with regard to issues of concern that make common and business sense. Ans: F 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 Feuersteins 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 book argues that the strongest of the four (ethical, moral, rational, and economic) arguments supporting CSR is the economic one. Why does it argue that to be true? Ans: Answer should discuss the economic argument best explains what we know about human psychology and economic theory and well as it operating at the intersection of the firms self-interest and the broader well-being of society. Cognitive Domain: Comprehension Answer Location: The Evolution of CSR | An Economic Argument for CSR Difficulty Level: Hard 6. The textbook states that corporate social responsibility is 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 firms actions in the larger society by bringing stakeholder concerns to the foreground. 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Impact5. .[`)Tahoma?= .Cx Courier New;WingdingsA$BCambria Math"1hu|'j ? % ? %0II BqHP  ?v,2!xx~r  Chapter 1Daniel Dhayalan Lauren Holmes    Oh+'0l  ( 4 @LT\d Chapter 1Daniel DhayalanNormalLauren Holmes253Microsoft Office Word@fUV@o@~h  ? ՜.+,0 hp  Sage Publications%I  Chapter 1 Title  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnoqrstuvwyz{|}~Root Entry Fh@1TableILWordDocument 4SummaryInformation(pDocumentSummaryInformation8xMsoDataStorelhnhF53BEOJO==2 lh,nhItem PropertiesORFDGRHXUVIPAVWQA==2 mhnhItem  PropertiesAm  !"#$%&'()*+,-./0123456789:;<=>?@BCDEFGHIJKLMNPDocumentLibraryFormDocumentLibraryFormDocumentLibraryForm This value indicates the number of saves or revisions. The application is responsible for updating this value after each revision.   F Microsoft Word 97-2003 DocumentCompObjOr MSWordDocWord.Document.89q