CSR Midterm Test Questions With Complete Solutions

CSR Midterm Test Questions With Complete Solutions Iron Law of Social Responsibility - CORRECT ANSWERS The axiom that those who use power in ways society deems abusive will eventually lose their ability to continue acting in that way In a free society, discretionary abuse of societal responsibility leads, eventually, to mandated reprisals - CORRECT ANSWERS The rational argument for corporate social responsibility is summarized by the Iron Law of Social Responsibility which states that: The Iron Law of Social Responsibility - CORRECT ANSWERS In a democratic society, power is taken away from those who abuse it is a workable definition of: Maximizing shareholder returns - CORRECT ANSWERS An application of Milton Friedman's argument is: 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 - CORRECT ANSWERS A central part of the moral argument for corporate social responsibility comes from the thinking that: They emerge to do social good when the political will or the profit notice is insufficient to address society's needs - CORRECT ANSWERS Which of the following best describes nonprofit organizations? Economic Responsibility - CORRECT ANSWERS According to Archie Carroll's pyramid of corporate social responsibility, a firm's ___________ is to produce an acceptable return for investors. Legal Responsibility - CORRECT ANSWERS 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 Rational - CORRECT ANSWERS Consequentialist (or utilitarian) reasoning justifies action in rems 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? Business leaders view their role as stewards of resources owned by others - CORRECT ANSWERS According to the textbook, corporate social responsibility is strongest when: Affluent - CORRECT ANSWERS According to the text, corporate social responsibility issues tend to gain a foothold in societies that are more __________: Affluence, Sustainability, Globalization, Communication, Brands - CORRECT ANSWERS What are the five driving forces of corporate social responsibility? It provides a mission and strategy around which a firm's multiple stakeholders can rally - CORRECT ANSWERS According to the textbook, why is corporate social responsibility increasingly crucial to business success? Environmental issues - CORRECT ANSWERS Sustainability efforts of a firm deal with _________. It encourages constant consumption, such as buying a car every 3 years instead of every 10 years - CORRECT ANSWERS How does our economic model encourage waste? It seeks to reform the current system so that value is created broadly by integrating a CSR perspective into firm strategy and throughout operations - CORRECT ANSWERS How does strategic CSR seek evolution of the current economic model? Integrate a CSR perspective throughout operations - CORRECT ANSWERS The best way for a company to protect its brand is to: More important today than it was in the past - CORRECT ANSWERS A company's brand is: Base more of their appeal to consumers on aspirational values - CORRECT ANSWERS Lifestyle brands are brands that: Enabling the firm to develop credibility among stakeholders - CORRECT ANSWERS CSR serves as "brand insurance" by: Descriptive - CORRECT ANSWERS A _________ approach to corporate social responsibility allows the outcome to emerge, rather than imposing a fixed view about what should or should not happen. Responsibilities; Rights - CORRECT ANSWERS If we are going to argue that a corporation has _______ we would like it to fulfill, we also need to grant ____________ that protect its ability to exist and do what it is designed to do. Corporations enjoy the same First Amendment rights to free speech as individuals - CORRECT ANSWERS What did the Citizens United case decide? Public Purpose - CORRECT ANSWERS A corporation's ___________ is its responsibilities and obligations as determined by corporate law and founding corporate charters. Managers and directors have a legal duty to put shareholders' interests above all others - CORRECT ANSWERS Dodge v. Ford stands for the legal principle that: Different entities, one legal entity and the other a certification process - CORRECT ANSWERS Benefit Corporations and Certified B Corps are: Under state, rather than federal, law - CORRECT ANSWERS The incorporation process (corporate governance) in the United States is currently regulated: A corporation is a fictitious legal person that is endowed with many of the rights and responsibilities of a human being - CORRECT ANSWERS The concept of corporate personhood in the United States recognizes that: Implement a stakeholder model - CORRECT ANSWERS Laws establishing Benefit Corporations impose legal requirements for firms to: Exclude contraception from health plans offered to employees - CORRECT ANSWERS In 2014, the US Supreme Court decision in Burwell v. Hobby Lobby allowed companies based around religious convictions to: