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Exam 12: Strategizing With Corporate Social Responsibility

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Question 1

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An example of a primary stakeholder group is: a. Media. b. Social activists. c. Environmental groups. d. Employees. e. Fair labor practice groups.

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Employees

Question 2

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Advocates of shareholder capitalism argue that if firms attempt to attain social goals, it will actually help them focus on profit maximization and its derivative, shareholder value maximization).

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B) False

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Question 3

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A stakeholder is "any group or individual who can affect or is affected by the achievement of the organization's objectives."

Nearly all CSR advocates argue for a revival of socialism in the world.

There is agreement throughout society that: a. Overseas expansion is good because it helps improve standards of living around the world. b. Overseas expansion is bad because it causes loss of jobs in the home country. c. Firms should stick strictly to business within a country and not seek to impose their views of human rights on other countries that have different views. d. Firms have a responsibility to do whatever is necessary to assure that the human rights that are respected in the home country are implemented in host countries. e. None of the above.

According to the text, one driver of CSR in the twenty-first century is the declining levels of population in some countries.

NGOs have the ability to: a. Affect firms'practices. b. Influence firms' management. c. Impact legislation. d. All of the above. e. None of the above

Since each firm is different a basic assumption of the resource-based view), not every firm's economic performance is likely to benefit from CSR.

The CSR debate centers on the question: a. Why does the firm exist? b. Why does private property exist? c. What laws are needed to control the firm's behavior? d. What can be done to prevent unreasonable profits? e. All of the above.

Some CSR advocates who question motives of firms implementing CSR are pleased that: a. Firms are embarking on some tangible CSR journey. b. CSR's legitimacy is rising on the organizational agenda. c. By adopting codes of conduct even if only for "window dressing" purposes), they create a set of criteria against which they can be judged. d. All of the above. e. None of the above.

Those who advocate CSR: a. Conduct their debate within the constraints of capitalism. b. Argue that a humane capitalism is an oxymoron and unattainable. c. Argue that the concepts justice and fairness are simply matters of opinion. d. Argue that the most important stakeholder is the stockholder. e. None of the above.

The idea that MNEs should not interfere in the domestic political affairs of the host country has been enshrined in a number of codes of MNE but CSR advocates have stressed the necessity for MNEs to engage in actions that often constitute political activity.

Secondary stakeholder groups are: a. Constituents on whom the firm relies for its continuous survival and prosperity. b. Those who do not influence or affect the corporation. c. Not influenced or affected by the corporation. d. Not engaged in transactions with the corporation and are not essential for its survival. e. B through D above.

Using the five forces model, which will likely result in a higher level of CSR? a. A highly concentrated industry. b. Existence of incumbents. c. Socially and environmentally conscious suppliers with standardized products that have multiple substitutes. d. No monitoring program for all supplier factories. e. Substitutes that are superior to existing products and costs are reasonable.

Compared with the relatively expanded power of national governments in the wake of globalization, NGOs and other civil society stakeholders have lost the ability to affect firms and their management or to impact legislation.

Your competitors have been praised for their CSR while some have compared your efforts to theirs unfavorably. However, you view their efforts as not just window dressing but as manipulation of public option. In one case, you noted that the company spent $50,000 on a community project to help the homeless and over a million dollars advertising to the world what it had done. You are under pressure to follow their examples. What should you do?

There is no conclusive evidence of a direct, positive link between CSR and economic performance, such as profits and shareholder returns.

Which is not true about CSR? a. Some CSR policies may reduce the firm's value. b. CSR policies may not pay off if common. c. CSR that is embedded in people is easier to imitate. d. Organization: a firm needs to tie together CSR activities. e. It is difficult to prove a link between CSR and economic performance.

A representative of an NGO that has a very significant influence on some your key stakeholders especially your customers) has met with you. The person has indicated that they are considering conducting a campaign against one of your policies. You feel the policy is totally justified but you have seen how the organization has smeared and destroyed others that it has targeted. The person seems to be hinting that perhaps they might launch a campaign against some other target if you demonstrated CSR by making a big contribution to the NGO. You feel that you are a victim of extortion but the cost of buying them off might be less than the damage that they could do to you. What should you do?

Primary stakeholder groups are defined as "those who influence or affect, or are influenced or affected by, the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival."