CSR Midterm Exam Questions with Complete Solutions

CSR Midterm Exam Questions with Complete Solutions Iron Law of Social Responsibility - ANSWER 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 - ANSWER 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 - ANSWER In a democratic society, power is taken away from those who abuse it is a workable definition of: Maximizing shareholder returns - ANSWER 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 - ANSWER 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 - ANSWER Which of the following best describes nonprofit organizations? Economic Responsibility - ANSWER According to Archie Carroll's pyramid of corporate social responsibility, a firm's ___________ is to produce an acceptable return for investors. Legal Responsibility - ANSWER 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 - ANSWER 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 - ANSWER According to the textbook, corporate social responsibility is strongest when: Affluent - ANSWER According to the text, corporate social responsibility issues tend to gain a foothold in societies that are more __________: Affluence, Sustainability, Globalization, Communication, Brands - ANSWER 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 - ANSWER According to the textbook, why is corporate social responsibility increasingly crucial to business success? Environmental issues - ANSWER Sustainability efforts of a firm deal with _________. It encourages constant consumption, such as buying a car every 3 years instead of every 10 years - ANSWER 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 - ANSWER How does strategic CSR seek evolution of the current economic model? Integrate a CSR perspective throughout operations - ANSWER The best way for a company to protect its brand is to: More important today than it was in the past - ANSWER A company's brand is: Base more of their appeal to consumers on aspirational values - ANSWER Lifestyle brands are brands that: Enabling the firm to develop credibility among stakeholders - ANSWER CSR serves as "brand insurance" by: Descriptive - ANSWER A _________ approach to corporate social responsibility allows the outcome to emerge, rather than imposing a fixed view about what should or should not happen.