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Business And Society Ethics And Stakeholder Management 1st Canadian Edition by Len Karakowsky -Test Bank
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Chapter 2—Corporate Citizenship: Social Responsibility, Responsiveness, and Performance
TRUE/FALSE
- An important point to keep in mind regarding the four-part definition of social responsibility is that each of the four components is separate and independent.
ANS: F
- The thesis of the book The Generous Corporation is that philanthropy was developed as a strategic response to the anti-business fervor of the late 1800s and early 1900s.
ANS: T
- Corporate contributions are a good example of philanthropic responsibility.
ANS: T
- Milton Friedman argues that the business community best deals with social issues.
ANS: F
- Voluntary or discretionary responsibilities also are known as ethical responsibilities.
ANS: F
- The corporate social performance model brings together three dimensions–social responsibility, philosophy or mode of social responsiveness, and the social issues involved.
ANS: T
- Ethical responsibilities are required of business by society.
ANS: F
- The classical economic argument against business’s assuming social responsibility is that management’s responsibility is to maximize the profits of its owners or shareholders.
ANS: T
- It is often difficult for managers with a short-range orientation to fully appreciate that their rights and roles in the economic system are determined by society.
ANS: T
- In the Pyramid of Corporate Social Responsibility, the obligation to do what is right, just, and fair is a firm’s economic responsibility.
ANS: F
- Those who argue against corporate social responsibility are probably not using the four-part CSR model in their consideration.
ANS: T
- William Frederick’s CSR1, or corporate social responsibility, refers to the capacity of a corporation to respond to social pressures.
ANS: F
- Epstein discusses corporate social responsiveness within the context of a broad concept, that he calls the corporate social policy process.
ANS: T
- In the corporate social performance model, the social responsiveness dimension can be viewed as the action phase of management’s response in the social sphere.
ANS: T
- In the corporate social performance model, the social issues dealt with by business, and the degree of organizational interest in these issues, usually remain constant.
ANS: F
- The corporate social performance focus is intended to suggest that what really matters is what companies are able to accomplish.
ANS: T
- The model of corporate social performance illustrates to managers the idea that social responsibility is separate from economic performance.
ANS: F
- The concern for social issues have expanded into a new management field called issues management.
ANS: T
- Wartick and Cochran’s extension of the social performance model depicts corporate social responsibilities as processes.
ANS: F
- A major contribution of Donna Wood’s corporate social performance model is her focus on a rudimentary definition of CSR.
ANS: F
MULTIPLE CHOICE
- Reaction, defense, accommodation, and proaction are examples of
| a. | social issues. |
| b. | social responsibility. |
| c. | social responsiveness categories. |
| d. | the philosophy of stakeholder accommodation. |
ANS: C
- Factors in the societal environment lead directly to
| a. | a changed social contract. |
| b. | criticism of business. |
| c. | increased concern for the social environment. |
| d. | a more satisfied society. |
ANS: B
- Regarding Fortune’s rankings of the “most” and “least” admired corporations,
| a. | those that are most admired are clearly most profitable. |
| b. | those that are least admired are typically in the defense industry. |
| c. | it is not clear what impact, if any, the rankings have for these businesses. |
| d. | none of the above is true. |
ANS: C
- Which of the following is not included in Carroll’s four-part definition?
| a. | economic responsibilities |
| b. | legal responsibilities |
| c. | ethical responsibilities |
| d. | managerial responsibilities |
ANS: D
- Which of the following was not one of the Council on Economic Priorities’ explanations for the upsurge in social investing?
| a. | There is more reliable research on CSP than in the past. |
| b. | Investors do not have to sacrifice gains for principles. |
| c. | More socially conscious individuals are making investment decisions. |
| d. | The public now sees social investing as the most profitable investments available. |
ANS: D
- Regarding the socially conscious investing movement,
| a. | it is deemed ethical to invest in companies that meet the Council on Economic Priorities’ criteria. |
| b. | specialized investment firms use social or ethical criteria as well as financial criteria in making investment decisions. |
| c. | it is declining in growth and popularity. |
| d. | ethical firms are demonstrably more profitable than unethical firms. |
ANS: B
- Which type of responsibility embraces those activities and practices that are expected or prohibited by societal members even though they are not codified into law?
| a. | ethical responsibilities |
| b. | managerial responsibilities |
| c. | legal responsibilities |
| d. | economic responsibilities |
ANS: A
- Which of the following social responsiveness postures is inconsistent with the other three?
| a. | reactive |
| b. | promotive |
| c. | cooperative |
| d. | interactive |
ANS: A
- The collaborative/problem-solving corporate social response mode is most closely aligned with the
| a. | interactive mode. |
| b. | stable-state mode. |
| c. | defense mode. |
| d. | adaptive mode. |
ANS: A
- Being a good corporate citizen, making corporate contributions, and providing programs supporting community and education is an example of which component of social responsibility?
| a. | ethical |
| b. | economic |
| c. | philanthropic |
| d. | legal |
ANS: C
- According to the matrix presented in Chapter 2, the stakeholder view is that the legal component of the CSR definition most affects
| a. | owners and community. |
| b. | employees and consumers. |
| c. | employees and community. |
| d. | community and others. |
ANS: B
- The four-part definition of corporate social responsibility does not encompass which one of the following types of responsibility?
| a. | voluntary |
| b. | personal |
| c. | ethical |
| d. | economic |
ANS: B
- The socially responsible firm should strive to do all of the following except
| a. | make a profit. |
| b. | obey the law. |
| c. | raise taxes. |
| d. | be ethical. |
ANS: C
- Wood’s corporate social performance model categorizes social impacts, programs and policies as
| a. | processes of CSR. |
| b. | principles of CSR. |
| c. | stakeholder contingencies. |
| d. | outcomes of corporate behavior. |
ANS: D
- Sethi’s three-stage schema for classifying corporate behavior includes each of the following except one. Which does not belong?
| a. | social obligation |
| b. | social responsibility |
| c. | social responsiveness |
| d. | social interaction |
ANS: D
- Which of the following does not belong with regards to issues management?
| a. | issues identification |
| b. | issues analysis |
| c. | issues responsibility |
| d. | response development |
ANS: C
- The arguments “Let business try” and “Business has the resources” are a part of
| a. | why business should not assume social responsibility. |
| b. | why business should assume social responsibility. |
| c. | the classical economic model. |
| d. | the relationship between corporate social responsibility and financial position. |
ANS: B
- Which of the following is an example of proactive behavior?
| a. | A company obeys laws that have been passed prohibiting racial discrimination. |
| b. | A company anticipates the need for a day-care center for its employees’ children and opens one near the workplace. |
| c. | A company sees that its competitors are contributing to a charitable cause and decides that its image will be helped if it contributes also. |
| d. | After incidents of passing damaged merchandise on to consumers, a company formulates a sturdier packaging for its product. |
ANS: B
- An argument why business should take on a social responsibility is that
| a. | business needs to hold more power. |
| b. | it would help our competitive standing in international markets. |
| c. | it would ward off future government intervention and regulation. |
| d. | managers are oriented toward social skills as well as economics and production. |
ANS: C
- In Wartick and Cochran’s extension of the social performance model, they see this component of the model as directed toward issues management and minimizing “surprises.”
| a. | principles |
| b. | processes |
| c. | policies |
| d. | philosophies |
ANS: C
- Sethi’s stage of social responsiveness addresses
| a. | what a corporation’s long-run role in a dynamic social system should be. |
| b. | taking an action-oriented approach to social issues. |
| c. | how corporations should respond to social pressure. |
| d. | bringing corporate behavior up to a level where it is congruent with the prevailing social norms, values, and expectations. |
ANS: A
- Which of the following is not one of the three central dimensions of Carroll’s corporate social performance model?
| a. | a firm’s reputation with society |
| b. | social responsibility categories |
| c. | philosophy or mode of social responsiveness |
| d. | social issues involved |
ANS: A
- Which of the following does not belong in the processes of the social performance model?
| a. | ethical |
| b. | reactive |
| c. | defensive |
| d. | proactive |
ANS: A
- A study conducted to find out what the public felt were the top activities or characteristics of socially responsible companies. All of the following, except one, were the top three ranked activities. Which does not belong?
| a. | employs friendly/courteous/responsive personnel |
| b. | make safe products |
| c. | does not pollute the air and water |
| d. | obeys the law in all aspects of business |
ANS: A
- Which of the following is not composed within corporate citizenship?
| a. | a reflection of shared moral and ethical principles |
| b. | a vehicle for integrating individuals into the communities in which they work |
| c. | a form of enlightened self-interest that balances all stakeholders’ claims and enhances a company’s long-term value |
| d. | the desire and expectations of businesses to contribute its money, facilities, and employee time to humanitarian programs or purposes |
ANS: D
- With respect to socially conscious investing, the concept of the “social screen”
| a. | is no longer used by investment firms. |
| b. | may be used in a positive way or a negative way. |
| c. | has been theoretically discussed but never actually used. |
| d. | is designed to screen out investments in firms, which focus too much on social performance at the expense of economic performance. |
ANS: B
- What refers to the corporate behavior in response to market forces or legal constraints?
| a. | social obligation |
| b. | social responsibility |
| c. | social responsiveness |
| d. | social attitude |
ANS: A
- Companies that ignore their corporate social responsibilities will likely
| a. | earn more profit. |
| b. | risk losing investor confidence and trust. |
| c. | downsize. |
| d. | go global. |
ANS: B
- Perhaps the most pragmatic reason for business to be socially responsible is that assuming a social responsibility
| a. | is directly related to financial returns. |
| b. | is the popular thing to do these days. |
| c. | helps to ward off government intervention and regulation. |
| d. | is the path of least resistance. |
ANS: C
- The concept of being the backbone of the socially conscious investing movement is?
| a. | social investing |
| b. | social screening |
| c. | social conscious |
| d. | social responsibility |
ANS: B
Chapter 4—Strategic Management and Corporate Public Affairs
TRUE/FALSE
- The public affairs function is a logical and increasingly frequent outcome of the overall strategic management process.
ANS: T
- As an overall concept, corporate public affairs is quite different and distinct from corporate public policy and issues management.
ANS: F
- All companies that have public affairs departments have already addressed the issue of enterprise-level strategy.
ANS: F
- The Citizen’s Bank of Canada is one example of a company that instituted a formal public policy in order to set a systematic course for “doing well by doing good”.
ANS: T
- Coca Cola’s disastrous recall in Belgium and France and Firestone’s tire fiasco several years ago, illustrate the importance of ethical issue for top decision makers.
ANS: T
- Public relations (PR) and public affairs (PA) are the same in terms of emphasis, interest, and direction.
ANS: F
- For business ethics to have any meaning it must be linked to business strategy.
ANS: T
- There are two key strategy levels.
ANS: F
- Enterprise-level strategy has no relationship with societal-level strategy.
ANS: F
- Political legitimacy of the organization is addressed in the enterprise level strategy.
ANS: T
- “What is the role of our organization in society?” is an important enterprise-level strategy.
ANS: T
- The extent to which corporations have established board or senior management committees is a major indicator of the level of enterprise-level strategic thinking.
ANS: T
- The extent to which a firm attempts to identify social or public issues, analyze them and integrate them into its strategic management processes is another major indicator of enterprise-level strategic thinking.
ANS: T
- Enterprise-level, corporate-level, business-level and functional-level are key enterprise strategy levels.
ANS: T
- In a study of external affairs strategy, Robert Miles found that the companies that ranked best in corporate social performance employed an individual or adversarial external affairs strategy.
ANS: F
- In a study of external affairs strategy, Miles found that firms with high business exposure to the social environment require more simple external affairs units.
ANS: F
- Public affairs is a highly specialized corporate function and it cannot be integrated into every manager’s job.
ANS: F
- Public affairs is intimately linked to corporate public policy, environmental analysis, issues management, and crisis management.
ANS: T
- Companies such as IBM, Avon, and Dow Corning are so well managed that they have not seen a need for developing an international public affairs program.
ANS: F
- It has been found that the complexity of the environment has required PA officers to focus more on management and less on PA specialty work such as lobbying.
ANS: T
MULTIPLE CHOICE
- The public affairs function is a logical and increasingly frequent outcome of
| a. | the overall strategic management process. |
| b. | increased levels of business school education in the United States. |
| c. | a corporate code of ethics. |
| d. | none of the above. |
ANS: A
- Two important planning aspects of corporate public policy include
| a. | external and internal scanning. |
| b. | short-term goals and long-term objectives. |
| c. | issues management and crisis management. |
| d. | task forces at the board level and top management level. |
ANS: C
- The questions “What is the role of the organization in society?” refers to which key strategy level?
| a. | enterprise-level strategy |
| b. | corporate-level strategy |
| c. | business-level strategy |
| d. | functional-level strategy |
ANS: A
- The public affairs function as we know it today
| a. | is outmoded. |
| b. | is an outgrowth of the social activism of the 1960s. |
| c. | is a product of post-World War II preoccupation with management professionalism. |
| d. | was first introduced by Ralph Nader. |
ANS: B
- Which of the following statements makes a correct distinction between PA and PR?
| a. | PR professionals are experts on government whereas PA deals with government as one of many publics. |
| b. | PR professionals think PA is on the decline as a professional field. |
| c. | The Boston University study on public affairs is of questionable validity due to the questionnaire used. |
| d. | Whereas PR has many communication responsibilities, PA deals with issues management and serves as a corporate conscience. |
ANS: D
- The question “What business are we in or should we be in?” refers to which key strategy levels?”
| a. | enterprise-level strategy |
| b. | corporate-level strategy |
| c. | business-level strategy |
| d. | functional-level strategy |
ANS: C
- All the following are major PA activities except
| a. | community relations. |
| b. | media relations. |
| c. | employee benefits. |
| d. | corporate contributions. |
ANS: C
- It is generally the case that
| a. | most PA departments do not report directly to top management. |
| b. | most PA departments report directly to top management. |
| c. | most PA departments evolved from Personnel Departments. |
| d. | none of the above. |
ANS: B
- In the hierarchy of strategy levels which strategy follows the corporate-level strategy?
| a. | enterprise-level strategy |
| b. | corporate-level strategy |
| c. | business-level strategy |
| d. | functional-level strategy |
ANS: C
- The following are all key stages of environmental analysis except
| a. | scanning |
| b. | monitoring. |
| c. | forecasting. |
| d. | costing. |
ANS: D
- Environmental monitoring involves
| a. | Videotaping employees. |
| b. | Cost-benefit analysis. |
| c. | Tracking of specific trends. |
| d. | Forecasting change. |
ANS: C
- Which one of the following is not one of the six core values?
| a. | Integrity |
| b. | safety and health |
| c. | quality of work |
| d. | all of the above |
ANS: D
- “The management function responsible for monitoring the interpreting the corporation’s noncommercial environment and managing the company’s response to those factors” is a definition of
| a. | strategic issues management. |
| b. | corporate social responsiveness. |
| c. | corporate public affairs. |
| d. | Stakeholder management. |
ANS: C
- A study found that all of the below, except one, to be activities being emphasized by public affairs departments of major corporations. Which does not belong?
| a. | Environmental affairs |
| b. | Employee rights |
| c. | Education affairs |
| d. | Grassroots activities |
ANS: B
- A systematic approach by which a public affairs unit measures and compares itself with higher performing units in order to generate knowledge leading to improved performance is referred to as
| a. | benchmarking. |
| b. | scanning. |
| c. | monitoring. |
| d. | recruiting. |
ANS: A
- Which one of the following follows the strategy formulation stage in the strategic management process?
| a. | goal formulation |
| b. | strategy evaluation |
| c. | strategy implementation |
| d. | strategic control |
ANS: C
- A study of international public affairs revealed that
| a. | the international realm is less important than it was initially thought. |
| b. | most firms felt their international PA programs were “less than adequate.” |
| c. | issues management does not work in the international arena. |
| d. | PA units headed up by non-U.S. citizens were more effective than those headed up by United States citizens. |
ANS: B
- In a study by Miles, he found that companies that ranked best in corporate social performance
| a. | Employed an individual or adversarial external affairs strategy. |
| b. | Employed public affairs consultants. |
| c. | spent the least on their public affairs departments. |
| d. | none of the above. |
ANS: D
- Which of the following is not one of the four major components of the strategy formulation?
| a. | identification and appraisal of the firm’s strengths and weaknesses |
| b. | identification and appraisal of opportunities and threats in the environment |
| c. | identification and appraisal of personal values and aspirations of management |
| d. | all of the above |
ANS: D
- Miles concluded that a firm’s corporate social performance is a function of
| a. | the complexity of the environment. |
| b. | business exposure, top-management philosophy, external affairs strategy, and external affairs design. |
| c. | external affairs design only. |
| d. | the size of the external affairs department. |
ANS: B
- The trend towards public affairs benchmarking had its origins in
| a. | companies’ dissatisfaction with their PAC activities. |
| b. | strategic philanthropy. |
| c. | the total quality movement. |
| d. | international public affairs initiatives. |
ANS: C
- Which of the following is not a components of the social audit?
| a. | Identification |
| b. | Measurement |
| c. | Monitoring |
| d. | all of the above |
ANS: D
- Another name for external affairs strategy is
| a. | corporate strategy. |
| b. | public affairs strategy. |
| c. | environmental scanning. |
| d. | enterprise-level strategy. |
ANS: B
- Which of the following is not one of the four dimensions of external affairs design identified by Miles?
| a. | Breadth |
| b. | Depth |
| c. | Influence |
| d. | Responsiveness |
ANS: D
- Which one of the following is not one of the three levels of environmental analysis?
| a. | task environment |
| b. | Competitive or industry environment |
| c. | general environment |
| d. | all of the above |
ANS: D
- David Blake has taken the position that we ought to incorporate which of the following into every operating manager’s job?
| a. | Integration |
| b. | Breadth |
| c. | public affairs |
| d. | corporate social policy |
ANS: C
- As a management function, which of the following evolved out of isolated company initiatives to handle such diverse activities as community relations, corporate philanthropy, and government affairs?
| a. | public affairs |
| b. | corporate strategy |
| c. | issues management |
| d. | crisis management |
ANS: A
- The modern view of a public affairs department is clearly one in which
| a. | public relations is stressed. |
| b. | corporate philanthropy is stressed. |
| c. | the management function is stressed. |
| d. | customer relations are given a high priority relative to other functions. |
ANS: C
- Which of the following follows the monitoring stage in the environmental analysis?
| a. | Scanning |
| b. | Forecasting |
| c. | Assessing |
| d. | none of the above |
ANS: B
- Which of the following is not one of the four primary reasons that public affairs blossomed in the 1960s?
| a. | growing magnitude and impact of government |
| b. | changing nature of the political system |
| c. | growing recognition by business that it was being outflanked by interests that were counter to its own on a number of policy matters |
| d. | all of the above |
ANS: D
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