CSR EXAM 1 QUESTIONS WITH
VERIFIED SOLUTIONS10
the 4 principles of good governance - ANSWERS -1. Independence - have a minimal number of
directors who are former executives or contractors to the firm.
2. Stock Ownership - when directors own stock it aligns their interests with shareholders'
3. Director Quality - directors add value when they have industry experience, &/or have
managed firms of a similar size; they should limit the number of boards on which they sit and
should attend 75% of these meetings.
4. Board Activism - boards should meet often & without management present in the room.
Continental Model of CSR - ANSWERS -Longterm debt finance, ownership by large block-
holders, weak markets for corporate control and rigid labor markets. (Japan)
Anglo-American Model - ANSWERS -Dispersed ownership expecting short term returns, strong
shareholder rights, arm's-length creditor financing through equity, active markets for control,
and flexible labor markets. (CSR is a tougher sell)(USA)
Value chain partners - ANSWERS -all entities invlolved in the entire system, or chain of activities
through which a firm creates & delivers its products and/or services.
External value chain partners - ANSWERS -includes entities involved in outsources functions,
strategic partners and suppliers
Global Value Chain - ANSWERS -(1990) far-reaching consequences for international investment,
global & local economies, the competitive context in most industries, & daily life for most of the
world's population.
, 4 strategies for suppliers and value chain partners - ANSWERS -1. Shape expectations of
suppliers & other stakeholders
2. Select suppliers and agree on targets
3. Monitor and develop supply chain performance
4. Evaluate, Learn, & Continuously Improve
The 4 common definitions of CSR - ANSWERS -1. A firm's moral obligations towards its
stakeholders, focused on a firm's responsibilities or adherence to ethical norms.
2. The social responsibility of business that encompasses the economic, legal, ethical &
discretionary expectations that society has of organizations at a given time.
3. Redefining business success by adopting the triple bottom line perspective
4. The policies and practices an organization used to manage stakeholder relationships, & an
increasing number of firms are attempting to use CSR practices as a source of some type of
advantage while creating positive social value for its stakeholders.
3 categories of CSR Motives - ANSWERS -1. Instrumental
2. Relational
3. Moral
Instrumental Motives - ANSWERS -shareholder interests (short-term) -- long term survival
through ensuring security of livelihood; maintenance of a certain standard of living.
Relational Motives - ANSWERS -stakeholders interests, legitimation/collective identity
- active in social issues with the conscious awareness of the positive influence that the
owner/manager perceives this will have on their business.
Moral Motives - ANSWERS -stewardship interests, higher-order values
- social values are actions that are integrated into the business life and take priority over
maximizing profit.
VERIFIED SOLUTIONS10
the 4 principles of good governance - ANSWERS -1. Independence - have a minimal number of
directors who are former executives or contractors to the firm.
2. Stock Ownership - when directors own stock it aligns their interests with shareholders'
3. Director Quality - directors add value when they have industry experience, &/or have
managed firms of a similar size; they should limit the number of boards on which they sit and
should attend 75% of these meetings.
4. Board Activism - boards should meet often & without management present in the room.
Continental Model of CSR - ANSWERS -Longterm debt finance, ownership by large block-
holders, weak markets for corporate control and rigid labor markets. (Japan)
Anglo-American Model - ANSWERS -Dispersed ownership expecting short term returns, strong
shareholder rights, arm's-length creditor financing through equity, active markets for control,
and flexible labor markets. (CSR is a tougher sell)(USA)
Value chain partners - ANSWERS -all entities invlolved in the entire system, or chain of activities
through which a firm creates & delivers its products and/or services.
External value chain partners - ANSWERS -includes entities involved in outsources functions,
strategic partners and suppliers
Global Value Chain - ANSWERS -(1990) far-reaching consequences for international investment,
global & local economies, the competitive context in most industries, & daily life for most of the
world's population.
, 4 strategies for suppliers and value chain partners - ANSWERS -1. Shape expectations of
suppliers & other stakeholders
2. Select suppliers and agree on targets
3. Monitor and develop supply chain performance
4. Evaluate, Learn, & Continuously Improve
The 4 common definitions of CSR - ANSWERS -1. A firm's moral obligations towards its
stakeholders, focused on a firm's responsibilities or adherence to ethical norms.
2. The social responsibility of business that encompasses the economic, legal, ethical &
discretionary expectations that society has of organizations at a given time.
3. Redefining business success by adopting the triple bottom line perspective
4. The policies and practices an organization used to manage stakeholder relationships, & an
increasing number of firms are attempting to use CSR practices as a source of some type of
advantage while creating positive social value for its stakeholders.
3 categories of CSR Motives - ANSWERS -1. Instrumental
2. Relational
3. Moral
Instrumental Motives - ANSWERS -shareholder interests (short-term) -- long term survival
through ensuring security of livelihood; maintenance of a certain standard of living.
Relational Motives - ANSWERS -stakeholders interests, legitimation/collective identity
- active in social issues with the conscious awareness of the positive influence that the
owner/manager perceives this will have on their business.
Moral Motives - ANSWERS -stewardship interests, higher-order values
- social values are actions that are integrated into the business life and take priority over
maximizing profit.
