mgmt 320

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The duty of a company to create wealth in ways that do not harm society and that protect society's assets is called corporate social responsibility

true

Corporate social responsibility has a definite, universal meaning

false

Corporate social responsibility is primarily a management theory rather than a political theory

false

During the Progressive era in U.S. history, business managers were considered to be "trustees" of their local communities

true

Conservative economists believe that businesses act most responsibly when they make a profit in efficient ways and that they should not be involved in "social projects

true

Milton Friedman believes that managers are "employees" of the owners of the company for which they work

true

Friedman believes that the sole objective of management should be to maximize the company's profits

true

The idea that the sole responsibility of a corporation is to optimize profits while still obeying the law is called Friedmanism

true

There exist universal rules for social responsibility that apply to every company

false

There exist universal rules for social responsibility that apply to every company

false

There is a fixed, neutral definition of social responsibility that fits every company

false

It is possible to rank corporations objectively in terms of their social responsibility actions

false

International law is very strong in addressing the social impacts of businesses

false

Large corporations often find stronger restraints on their operations in foreign countries

false

In international law, when one country exercises jurisdiction over actions that occur within another country, it is called extraterritoriality

true

"Soft law" creates binding obligations for corporations

false

Soft law refers to statements of philosophy, policy and principle found in nonbonding international conventions

true

In the realm of international law,"hard law" is found mainly in treaties and creates prohibitions and duties

true

A norm is a standard that arises over time and is enforced by law

true

When an industry receives a lot of complaints from critics, it sometimes sets up its own industry code of conduct

true

One of the reasons that industries like to create their own codes of conduct is that the organization that supervises the actions of member organizations is likely to be lenient to these members in terms of the strict enforcement of the code

true

. Regardless of the source of a code of conduct, the target is the corporation

true

The Global Compact defines both specific data for measuring performance and procedures for compiling reports

false

Management standard is a model of the methods an organization can use to achieve certain goals

true

NGOs, working through the UN, gained power by fabricating hard laws to raise expectations of corporate behavior and then attacked the reputations of noncompliant firms

false

The duty of a corporation to avoid harm to the assets of society is called

Corporate social responsibility

These are people who believe in the maximum freedom to act or use property without interference by others, especially government

Libertarians

The idea that corporations have duties that go beyond their economic functions is a fundamental tenet in

Corporate social responsibility

. Libertarians advocate

Laissez-faire

The idea that charitable giving interferes with the natural evolutionary process in which society improves itself is a fundamental tenet in

Social Darwinism

Who was a leading advocate of the doctrine of social Darwinism?

Herbert Spencer

All of the following statements about social Darwinism are true EXCEPT:

It is a philosophy of the late 1900s

When a corporation wants to give charitable gifts but its charter does not state that this type of action is permitted, the idea that these gifts are "beyond the law" is called:

Ultra vires.

The idea that managers help society by making their companies profitable is called:

The service principle.

All of the following statements were the interrelated themes of broader responsibility that emerged during the Progressive era EXCEPT:

Managers concentrated more on promoting their self-interests.

Businesses are most responsible when they make a profit efficiently and do not spend their energies on "social projects". The best-known advocate of this view is:

Milton Friedman

This is a concentric circle of clear-cut responsibility for efficient execution of the economic function resulting in products, jobs and economic growth.

Inner circle

Identify the concentric circle of responsibility that encompasses responsibility to exercise economic function with a sensitive awareness of changing social values and priorities.

Intermediate circle

This concentric circle of responsibility outlines newly emerging and still amorphous responsibilities that business should assume to improve the social environment, even if they are not directly related to specific business processes.

Outer circle

The idea that the sole responsibility of a business is to maximize profits while acting within the law is a fundamental tenet in:

Friedmanism.

Which of the following are responses to competitive forces in markets?

Market actions

These are initiatives required either by government regulation or civil regulation.

Mandated actions.

. Civil regulation is also known as:

Private regulation.

When a worthwhile action of a company goes above and beyond what is required by government regulations, it is called a(n):

Voluntary action.

When a company reduces its pollution output below the level required by government regulations, it is an example of a(n):

Voluntary action.

When Benetton conducted an anti-death-penalty advertising campaign in the U.S., it was an example of a(n):

Voluntary action

When society pays a cost that is caused by a company but this cost is not paid by the company or its customers, it is called a(n):

External cost.

When a factory dumps toxic waste into a stream, it is an example of what type of cost to society?

External cost

When a company exercises jurisdiction over the actions of another company that occur within another country, it is called:

Extraterritoriality

These are statements of policy found in non-binding international statements that serve as guidelines for interpreting hard law

Soft law

Legally-binding agreements that are found in international law are called:

Hard law

. In international law, treaties between nations are an example of:

Hard law

This is a standard that arises over time and is enforced by social sanction or law

Norm

The declaration adopted by the General Assembly of the UN in 1948 that recognizes equal rights for all members of the human family is the:

Universal Declaration of Human Rights

According to the text, these are formal statements of aspirations, principles, guidelines and rules for corporate behavior.

Codes of conduct

All of the following statements are true of codes of conduct EXCEPT:

They arise from a single source

This is the practice of a corporation publishing information about its economic, social and environmental performance

Sustainability reporting

These are symbols displayed on or with products to certify that the product or its production process, meets a set of social responsibility criteria

Labels

Payment of wages to small, marginal agricultural producers in developing nations sufficient to allow sustainable farming and labor practices is known as:

Fair trade

According to the text, this is a model of the methods an organization can use to achieve certain goals.

Management standard.

The duty of a company to protect the assets of the society in which it operates is part of its

corporate social responsibility

The idea that the sole responsibility of a company is to maximize its profits within the law is called

Friedmanism

A program that is required of a company by government regulations is called a(n)

mandated action

An action of a company that goes above and beyond the legal or regulatory requirements of the law is called a(n)

voluntary action

When a nation applies its laws within the borders of another nation, it is called

extraterritoriality

refers to statements of philosophy, policy and principle found in nonbonding international conventions

Soft law

. In the realm of international law, _____ are found mainly in treaties, creating binding rights, prohibitions and duties.

hard law

. A(n) _____ is a standard that arises over time and is enforced by social sanction or law.

norm

A(n) _____ is a rule, natural law or truth used as a standard to guide conduct.

principle

The declaration passed by the UN in 1948 that recognized equal rights for all people on earth was called the _____.

Universal Declaration of Human Rights

The top management of a company sets the tone for the company's social goals

true

A progressive business model is one in which the central strategy for creating value is based on meeting market demands.

false

Progressive business models are the basis of most companies

false

The basic purpose of a company should be stated in the company's mission statement

true

There is no single formula for social responsibility that fits all companies

true

A strategy is a basic approach, method or plan for achieving an objective

true

Generic social issues are affected by and affect a company's business

false

An assessment of a company's social impacts on society is called a social audit.

true

An international effort to develop uniform standards for company reports was developed and called the GRI.

true

The state in which company social policies, processes and actions are visible to external observers is called opacity.

false

The guideline that requires companies to prepare social reports that can be verified by outsiders is called transparency.

true

In terms of a company's social report, the opposite of transparency is opacity

true

The triple bottom line has become the most accepted approach to CSR reporting because it can satisfy a range of demanding stakeholders.

true

The most effective assurance that information in a corporate sustainability report is correct is provided by independent, external auditors.

true

A company's concern for the welfare of society expressed by monetary gifts intended to advance social welfare is called philanthropy.

true

A company's charitable giving program is a traditional dimension of its corporate social responsibility

true

The desire to help other people without any expectation of receiving something in return for this help is called altruism.

true

A company's charitable contributions are not tax-deductible.

false

Corporate philanthropy is a large part of overall private philanthropy in the U.S. every year.

false

. Philanthropy assumes a giving based on a moral duty to benefit society.

true

When a company changes it philosophy of giving money to charitable organizations from pure generosity to commercial objectives, it is called strategic philanthropy

true

Checkbook philanthropy is an active approach to philanthropy.

false

When a company links its charitable giving efforts to a social cause, it is called event marketing.

false

Cause-related marketing is a variant of strategic philanthropy in which charitable contributions are based on purchases of a service.

false

In high-engagement philanthropy, givers fund the incubation of new charitable organizations with unique approaches to social problems.

false

The statement of how a business will create value by selling something in the marketplace is called:

A business model.

. A traditional business model:

Is one in which the central strategy for creating value is based on meeting market demands

A progressive business model:

Defines a strategy that meets market needs by mitigating social problems

Companies can manage their responses to social pressures by moving through a process of:

CSR implementation

The basic purpose of a company that defines the type of business in which the company is engaged in and explains how it differs from its competitors is called a(n):

Mission statement.

. As a first step in implementing corporate social responsibility a corporation should:

Assess its current situation and activities

When Hershey Foods states that its purpose is "to consistently create shareholder value by achieving excellence in every aspect of our business," this is called its:

Mission statement

Which of the following defines the business, differentiates it from competitors, explains relationships with stakeholders and focuses energy on critical activities and goals?

Mission statement

Which of the following statements about a CSR review is false?

It explores regulatory requirements, but cannot examine competitors' initiatives.

Which of the following sketches stakeholders in categories and depicts their relationship to the firm?

Stakeholder map

Which of the following is a relevant categorization of stakeholders according to their orientation to the firm?

High, medium or low influence.

According to the text, this is a basic approach, method or plan for achieving an objective.

Strategy

Tasks like revising or creating policies, budgeting resources and assigning work are a part of the:

Action plan

When a company assesses it social impacts on society, it has performed a(n):

Social audit

This is the state in which company social policies, processes and actions are visible to external observers.

Transparency

This is the economic growth that meets the needs of the present without consuming social and environmental resources in way that harms future generations.

Sustainable development.

The international effort to develop uniform standards for company reports is called the:

GRI

. In terms of a company's social reports, the opposite of _____ is _____.

Transparency; opacity

This is an ideal of economic growth that can "meet the needs of the present without compromising the ability of future generations to meet their own needs."

Sustainability reporting

The standard that uses economic, environmental and social performance indicators that are based on GRI standards is called the:

Triple bottom line

The purpose of this concept is to appraise the overall impact of a firm's operations, by adding non-financial measures to traditional financial results.

Triple bottom line

In terms of GRI indicators, which of the following is an environmental performance indicator?

Materials used by weight and volume.

All of the following statements are examples of economic performance indicators in the triple bottom line EXCEPT:

Energy use.

. In terms of GRI indicators, which of the following is an economic performance indicator?

Number of jobs supported in the supply chain.

All of the following are examples of environmental performance indicators in the triple bottom line EXCEPT:

Taxes paid.

Verification by audit that information in a corporate sustainability report is correct is known as:

Assurance

All of the following are examples of social performance indicators in the triple bottom line EXCEPT:

Total amount of employee wages and benefit

When a company gives monetary gifts to society in order to advance social welfare, it is called:

Philanthropy

In 2003, U.S. charitable giving was about $250 billion. The largest proportion of this giving was by:

Individuals

Which of the following is a traditional, passive form of corporate philanthropy characterized by donations to multiple worthy causes without any relationship to business strategy?

Checkbook philanthropy.

When a corporation aligns its charitable strategy with its business strategy, it is known as:

Strategic philanthropy.

Which of the following is a variant of strategic philanthropy in which charitable contributions are based on purchases of a product?

Cause-related marketing

When American Express Co. advertised that it would donate 3 cents per transaction to nonprofit anti-hunger groups over a two-month period for all charges against its credit card, it was an example of:

Cause-related marketing

In venture philanthropy:

Givers fund the incubation of new charitable organizations with unique approaches to social problems.

High-engagement philanthropy is one in which:

The donor may set goals for the recipient charity and become involved in achieving them.

. The statement of how a business will create value by selling a good or service in the marketplace is called a(n) _____ model.

business

The basic purpose of a business should be set forth in a written _____.

mission statement

When The Body Shop states: "We will dedicate our business to the pursuit of social and environmental change" it is part of the company's _____.

mission statement

A(n) _____ is a diagram showing stakeholders and their relationship to the firm.

stakeholder map

To create _____ for performance, incentives can be set up to encourage achievement of goals and targets.

accountability

An international attempt to develop uniform standards for company reports was called the _____.

Global Reporting Initiative

When an activist group claims that a company's self-report of its impact on society cannot be validated by outsiders, it is another way of saying that this report is not _____.

transparent

When a company gives a monetary gift to a social institution in an attempt to improve the social welfare of its community, it is called _____.

philanthropy

The desire to help someone in need without any expectation of receiving something in return from them is called _____.

altruism

When a company aligns its charitable giving program with its commercial objectives, it is called _____.

strategic philanthropy

The scientific process of discovering and weighing the dangers posed by pollutants is called risk management.

false

The process of deciding what action to take regarding specific risks of pollutants is called risk assessment.

false

Theoretically, risk assessment is a scientific process that leads to an objective, quantitative measure of the risks posed by any substance.

true

When the risks of pollutants are overstated, regulation of business becomes less expensive.

false

The process of establishing a link between a substance and human disease is called hazard assessment.

true

The link between industrial pollutants and health problems in human beings can be established by epidemiological studies.

true

A quantitative estimate of how toxic a substance is to human beings at increasing levels of exposure to the substance is called dose-response assessment.

true

Exposure of the public to toxic substances is typically well above the exposure of workers to these substances.

false

The study of the amount of a substance human beings can absorb through inhalation, ingestion or skin absorption is called exposure assessment.

true

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