Corporate Responsibility
MIDTERM EXAM REVIEW
©LU 2024/2025
,1. Multiple Choice: Which of the following is considered a pillar of
corporate social responsibility?
a) Profit maximization
b) Stakeholder engagement
c) Competitive aggression
d) Shareholder isolation
Answer: b) Stakeholder engagement
Rationale: Stakeholder engagement is a key pillar of corporate
social responsibility, emphasizing the importance of considering
the interests of all parties affected by a company's operations.
2. Fill-in-the-Blank: The Triple Bottom Line approach to
corporate responsibility includes economic, social, and
___________ sustainability.
Answer: Environmental
Rationale: The Triple Bottom Line approach encompasses three
aspects of sustainability: economic viability, social equity, and
environmental protection.
3. True/False: Corporate philanthropy is the only way to fulfill a
company's corporate social responsibility.
Answer: False
©LU 2024/2025
, Rationale: Corporate social responsibility encompasses a wide
range of activities beyond philanthropy, including ethical business
practices, environmental stewardship, and social investment.
4. Multiple Response: Select all that apply. Which of the following
actions demonstrate corporate environmental responsibility?
a) Implementing energy-saving technologies
b) Reducing greenhouse gas emissions
c) Increasing the use of non-recyclable materials
d) Conducting regular environmental audits
Answers: a) Implementing energy-saving technologies, b)
Reducing greenhouse gas emissions, d) Conducting regular
environmental audits
Rationale: Actions a, b, and d are direct measures to reduce
environmental impact, whereas c is not a responsible practice.
5. Multiple Choice: In the context of corporate responsibility, the
concept of 'materiality' refers to:
a) The physical properties of products
b) The relevance and significance of an issue to an organization
and its stakeholders
c) The financial impact of sustainability efforts
d) The durability of goods produced
©LU 2024/2025
, Answer: b) The relevance and significance of an issue to an
organization and its stakeholders
Rationale: Materiality in corporate responsibility involves
identifying and focusing on issues that are of significant impact to
the company and its stakeholders.
6. Fill-in-the-Blank: ___________ reporting is a framework that
helps organizations disclose their environmental, social, and
governance performance.
Answer: Sustainability
Rationale: Sustainability reporting is a key tool for organizations
to communicate non-financial impacts and demonstrate
transparency and accountability.
7. True/False: A company's code of ethics is unrelated to its
corporate responsibility initiatives.
Answer: False
Rationale: A code of ethics is a fundamental component of
corporate responsibility, guiding the ethical conduct of a company's
operations.
8. Multiple Response: Which of the following are recognized
frameworks for reporting corporate responsibility? Select all that
apply.
a) Global Reporting Initiative (GRI)
©LU 2024/2025