HM 390 Final Exam Question and
answers rated A+ 2025/2026
EU Commission defines CSR - correct answer ✔the responsibility of enterprises for their impact on
society and, therefore, it should be company led. Companies can become socially responsible by:
1. integrating social, environmental, ethical, consumer, and human rights concerns into their business
strategy and operations;
2. following the law
-aim of maximizing the creation of shared value for their owners/shareholder and their other
stakeholders and society at large
The World Bank defines CSR - correct answer ✔the commitment of businesses to behave ethically and
to contribute to sustainable economic development by working with all relevant stakeholders to
improve their lives in ways that are good for business, the sustainable development agenda, and society
at large
5 Dimensions of CSR - correct answer ✔environmental, social, economic, stakeholder, and
voluntariness (actions not prescribed by law)
The Brundtland Report Video - correct answer ✔-development is unsustainable
-future world crisis interlocking w/ environmental, development, and energy crisis closely linked
-sustainable development coined in this report
-country will experience (in the longterm) better economic stability
-fish industry on the island, only dependent on this, other firms will catch if they do not catch
themselves, solve issue by
,Carroll CSR Pyramid - correct answer ✔different layers in the pyramid help managers see the different
types of obligations that society expects of businesses
corporate social responsibility involves the conduct of a business so that it is economically profitable,
law abiding, ethical and socially supportive
-economic responsibility
-legal responsibility
-ethical responsibility
-philanthropic/discretionary responsibility
Starbucks CSR - correct answer ✔Conducting our business in ways that produce social, environmental
and economic benefits to the communities in which we operate.In the end, it means being responsible
to our stakeholders
Former Starbs CEO Howard Shultz - correct answer ✔-responsibility to multiple constituencies
-financial performance is linked to this
-balance between profitability and responsibility
Main benefits (Customer Perspective) - correct answer ✔-brand image, awareness, and reputation
-loyalty
-willingness to pay for premium
-services intangible
Main benefits (Employee Perspective) - correct answer ✔-high turnover in hospitality, combat this w/
CSR
,-improve employee satisfaction w/ and commitment to the company- lead to higher retention rate
-likely perform better
-give greater value/purpose for their work
Evolution of CSR - correct answer ✔philanthropy--CSR--Strategic CSR
Philanthropy - correct answer ✔Individual contribution
CSR - correct answer ✔At the firm level, but still focusing on philanthropy
Strategic CSR - correct answer ✔At the firm level, consider CSR as a strategy
5 Stages of CSR Simon Zadek - correct answer ✔-defensive (bottom pyramid)
-compliance
-managerial
-strategic
-civil
Stage 1 - correct answer ✔Defensive
--risk mitigation, historical focus
-defensive move
-bad behavior/practices w/in the co pushed the co to improve
-Nike exposed in 1998 human rights abuses in Asian factories Starbucks 2001 treating local farmers
poorly
Stage 2 - correct answer ✔Compliance
, --risk mitigation, historical focus
-pressure on, co leaders know they need to do something to comply
-minimum investment of financial resources to show they are taking action
-apparel co avoiding being the next Nike by sending out rules to all factories
Stage 3 - correct answer ✔Managerial
-risk mitigation, historical focus
-co develop a mgmt process or system so that responsibilities can be assigned internally, measured, and
executed
-viewed as a cost for the co, not an opportunity or of value
-since not seen as value creating, innovation and creativity lacking in the CSR activities
Stage 4 - correct answer ✔Strategic (called strategic CSR)
-value creation, current trend
-view as part of their value and opportunity-creating strategies
-on par w/ their business development, research and development, branding, and market-entry
strategies
-Starbucks ethically sources 99% of coffee beans
-economic and social value together
-GE commitment to products and services that are as economically advantageous as they are
ecologically sound
Stage 5 - correct answer ✔Civil (called strategic CSR)
-final stage, value creation, current trend
-co changes rules of the game, raises the civil foundation, and changes society
-embeds CSR into daily operations
-collaborate w/ other co, change rules of game, attack problems at the cause
answers rated A+ 2025/2026
EU Commission defines CSR - correct answer ✔the responsibility of enterprises for their impact on
society and, therefore, it should be company led. Companies can become socially responsible by:
1. integrating social, environmental, ethical, consumer, and human rights concerns into their business
strategy and operations;
2. following the law
-aim of maximizing the creation of shared value for their owners/shareholder and their other
stakeholders and society at large
The World Bank defines CSR - correct answer ✔the commitment of businesses to behave ethically and
to contribute to sustainable economic development by working with all relevant stakeholders to
improve their lives in ways that are good for business, the sustainable development agenda, and society
at large
5 Dimensions of CSR - correct answer ✔environmental, social, economic, stakeholder, and
voluntariness (actions not prescribed by law)
The Brundtland Report Video - correct answer ✔-development is unsustainable
-future world crisis interlocking w/ environmental, development, and energy crisis closely linked
-sustainable development coined in this report
-country will experience (in the longterm) better economic stability
-fish industry on the island, only dependent on this, other firms will catch if they do not catch
themselves, solve issue by
,Carroll CSR Pyramid - correct answer ✔different layers in the pyramid help managers see the different
types of obligations that society expects of businesses
corporate social responsibility involves the conduct of a business so that it is economically profitable,
law abiding, ethical and socially supportive
-economic responsibility
-legal responsibility
-ethical responsibility
-philanthropic/discretionary responsibility
Starbucks CSR - correct answer ✔Conducting our business in ways that produce social, environmental
and economic benefits to the communities in which we operate.In the end, it means being responsible
to our stakeholders
Former Starbs CEO Howard Shultz - correct answer ✔-responsibility to multiple constituencies
-financial performance is linked to this
-balance between profitability and responsibility
Main benefits (Customer Perspective) - correct answer ✔-brand image, awareness, and reputation
-loyalty
-willingness to pay for premium
-services intangible
Main benefits (Employee Perspective) - correct answer ✔-high turnover in hospitality, combat this w/
CSR
,-improve employee satisfaction w/ and commitment to the company- lead to higher retention rate
-likely perform better
-give greater value/purpose for their work
Evolution of CSR - correct answer ✔philanthropy--CSR--Strategic CSR
Philanthropy - correct answer ✔Individual contribution
CSR - correct answer ✔At the firm level, but still focusing on philanthropy
Strategic CSR - correct answer ✔At the firm level, consider CSR as a strategy
5 Stages of CSR Simon Zadek - correct answer ✔-defensive (bottom pyramid)
-compliance
-managerial
-strategic
-civil
Stage 1 - correct answer ✔Defensive
--risk mitigation, historical focus
-defensive move
-bad behavior/practices w/in the co pushed the co to improve
-Nike exposed in 1998 human rights abuses in Asian factories Starbucks 2001 treating local farmers
poorly
Stage 2 - correct answer ✔Compliance
, --risk mitigation, historical focus
-pressure on, co leaders know they need to do something to comply
-minimum investment of financial resources to show they are taking action
-apparel co avoiding being the next Nike by sending out rules to all factories
Stage 3 - correct answer ✔Managerial
-risk mitigation, historical focus
-co develop a mgmt process or system so that responsibilities can be assigned internally, measured, and
executed
-viewed as a cost for the co, not an opportunity or of value
-since not seen as value creating, innovation and creativity lacking in the CSR activities
Stage 4 - correct answer ✔Strategic (called strategic CSR)
-value creation, current trend
-view as part of their value and opportunity-creating strategies
-on par w/ their business development, research and development, branding, and market-entry
strategies
-Starbucks ethically sources 99% of coffee beans
-economic and social value together
-GE commitment to products and services that are as economically advantageous as they are
ecologically sound
Stage 5 - correct answer ✔Civil (called strategic CSR)
-final stage, value creation, current trend
-co changes rules of the game, raises the civil foundation, and changes society
-embeds CSR into daily operations
-collaborate w/ other co, change rules of game, attack problems at the cause
