Business Government And Society A Managerial Perspective 13th Edition by Steiner – Test Bank

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Business Government And Society A Managerial Perspective 13th Edition by Steiner – Test Bank

ch06
Student: ___________________________________________________________________________
1. The top management of a company sets the tone for the company’s social goals.
True False
2. A progressive business model is one in which the central strategy for creating value is based on meeting
market demands.
True False
3. Most companies begin with an early founding impulse for truth, justice, and the stakeholder way.
True False
4. There is no single formula for social responsibility that fits all companies.
True False
5. Most mission statements center on profits and products.
True False
6. A strategy is a basic approach, method, or plan for achieving an objective.
True False
7. At most companies CSR is still incidental, and rarely supplemental, to core business strategies.
True False
8. To be effective, performance goals must be general and progress toward them should be measurable.
True False
9. Job descriptions that include sustainability duties encourage accountability.
True False
10. In terms of a company’s social report, the opposite of transparency is opacity.
True False
11. The triple bottom line has become the most accepted approach to CSR reporting because it can satisfy a
range of demanding stakeholders.
True False
12. The most effective assurance that information in a corporate sustainability report is correct is provided by
independent, external auditors.
True False
13. Social responsibility is still frequently seen as a superfluous activity only indirectly related to the bottom
line, one that costs money, takes time, and reduces efficiency.
True False
14. A company’s charitable contributions are not tax-deductible.
True False
15. Corporate philanthropy is a large part of overall private philanthropy in the U.S. every year.
True False
16. Checkbook philanthropy is an active approach to philanthropy.
True False
17. When a company changes its philosophy of giving money to charitable organizations from pure
generosity to commercial objectives, it is called strategic philanthropy.
True False
18. Cause-related marketing is a variant of strategic philanthropy in which charitable contributions are based
on purchases of a service.
True False
19. Skeptics call cause-related marketing “conservation philanthropy”.
True False
20. In traditional philanthropy, foundations and corporations give grants to profitable organizations that then
spend the money to meet stated goals.
True False
21. The two elements that determine the CSR orientation of a firm are its business model and its:
A. strategic alliances.
B. leadership.
C. investor relations.
D. philanthrocapitalism.
22. The statement of how a business will create value by selling something in the marketplace is called:
A. a business model.
B. the triple bottom line.
C. a scenario.
D. cause-related marketing.
23. A traditional business model:
A.
is one in which the central strategy for creating value is based on meeting market demands while
complying with the law.
B.
is one where social performance is based on the response of the management teams to pressures in the
business environment.
C. defines a strategy that meets market needs by mitigating social problems.
D. focuses on making a profit and resists demand to go beyond the minimum duty of obeying the law.
24. A progressive business model:
A.
is one where social performance is based on the response of the management teams to pressures in the
business environment.
B. focuses on making a profit and resists demand to go beyond the minimum duty of obeying the law.
C. defines a strategy that meets market needs by mitigating social problems.
D. is one in which the central strategy for creating value is based on meeting market demands.
25. Which of the following is a rare variant of the progressive model wherein a founder with noble impulses
left a culture inclined to corporate responsibility?
A. The local business
B. The large corporation
C. The traditional business
D. The small company
26. A progressive business model:
A.
is one where social performance is based on the response of the management teams to pressures in the
business environment.
B. focuses on making a profit and resists demand to go beyond the minimum duty of obeying the law.
C. defines a strategy that meets market needs by mitigating social problems.
D. is one in which the central strategy for creating value is based on meeting market demands.
27. Most companies, including nearly all of the largest multinationals, vary in their reaction to pressures
in the operating environment across a spectrum from reluctance to enthusiasm. At the right of this
spectrum:
A. the extent of companies’ citizenship is determined by the power of stakeholders over their behavior.
B.
companies accept social obligations and may work to mitigate adverse impacts on society before
regulations can be passed.
C.
companies focus on making a profit and resist demands to go beyond the minimum duty of obeying
the law.
D. companies seek to be proactive by anticipating demands and resolving problems before they arise.
28. Companies can manage their responses to social pressures by moving through a process of:
A. hiring and firing.
B. customer service.
C. expanding their product lines.
D. CSR implementation.
29. As a first step in implementing corporate social responsibility, a corporation should:
A. engage in dialog with a range of stakeholders.
B. translate strategy into specific goals and performance objectives.
C. assess its current situation and activities.
D. develop an overall strategy for corporate responsibility.
30. Which of the following statements about a CSR review is false?
A. It explores regulatory requirements, but cannot examine competitors’ initiatives.
B. It involves an engagement of stakeholders to reveal expectations in society.
C. It can begin with a definition of CSR to provide a focus.
D. It involves a discovery of core values.
31. _____ values are the central beliefs that guide decisions and reside deep in a company’s culture.
A. Created
B. Implicit
C. Core
D. Protected
32. 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:
A. GRI.
B. mission statement.
C. social issue.
D. corporate social reporting method.
33. 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:
A. social issue.
B. GRI.
C. corporate social reporting method.
D. mission statement.
34. Which of the following defines a business, differentiates it from competitors, explains relationships with
stakeholders, and focuses energy on critical activities and goals?
A. Mission statement
B. Annual report
C. Social contract
D. Code of conduct
35. Which of the following sketches stakeholders in categories and depicts their relationship to the firm?
A. Analysis map
B. Stakeholder model
C. Stakeholder map
D. Concept map
36. Which of the following is a relevant categorization of stakeholders according to their orientation to the
firm?
A. Confrontational, neutral, or supportive
B. High, medium, or low influence
C. Neutral, low, or medium influence
D. Feminists, investors, or environmentalists
37. Which of the following is a relevant categorization of stakeholders according to their power to affect a
firm’s business?
A. Neutral, supportive, or confrontational
B. High, medium, or low influence
C. Neutral, investors, or environmentalists
D. Feminists, investors, or environmentalists
38. Which of the following refers to a basic approach, method, or plan for achieving an objective?
A. Vision
B. Initiative
C. Mission
D. Strategy
39. According to Michael Porter and Mark Kramer, an “essential test” for the worthiness of any additional
social initiative is to determine whether it presents an opportunity to create _____ that is, a meaningful
benefit for society that is also valuable to the business.
A. collective norms
B. collective strategies
C. shared value
D. shared essential
40. _____ are those social issues/impacts related to factors that influence success in the marketplace.
A. Competitive social issues
B. Generic social issues
C. Value chain social impacts
D. Comprehensive social impacts
41. With regard to CSR, the growing number of board committees and vice presidents of corporate
responsibility implies more _____ than usually exists in practice.
A. decentralization
B. silent decentralization
C. centralization
D. libertarianism
42. At most companies CSR is still ___, and largely ___, to core business strategies.
A. essential; fundamental
B. circumstantial; intentional
C. incidental; supplemental
D. supplemental; incidental
43. Tasks like revising or creating policies, budgeting resources, and assigning work are a part of the:
A. mission statement.
B. vision statement.
C. action plan.
D. code of conduct.
44. Formulas for CEO compensation are almost universally focused on attaining:
A. specific financial goals.
B. performance goals.
C. core values of responsibility.
D. core values of citizenship.
45. When a company assesses its social impact on society, it has performed a(n):
A. triple bottom line report.
B. social audit.
C. probability matrix.
D. impact matrix.
46. This is the state in which company social policies, processes, and actions are visible to external
observers.
A. Opacity
B. Integrity
C. Accountability
D. Transparency
47. This is the economic growth that meets the needs of the present without consuming social and
environmental resources in a way that harms future generations.
A. Protectionism
B. Assurance
C. Triple bottom line
D. Sustainable development
48. The international effort to develop uniform standards for company reports is called the:
A. social audit.
B. triple bottom line.
C. GRI.
D. stakeholder engagement.
49. In terms of a company’s social reports, the opposite of _____ is:
A. opacity; hidden.
B. transparency; opacity.
C. altruism; opacity.
D. transparency; altruism.
50. _____ is the documentation and disclosure of how closely corporate operations conform to the goal of
sustainable development.
A. Assurance
B. Sustainable development
C. Triple bottom line
D. Sustainability reporting
51. The standard that uses economic, environmental, and social performance indicators that are based on GRI
standards is called the:
A. triple bottom line.
B. social audit.
C. business model.
D. value chain.
52. The purpose of this concept is to appraise the overall impact of a firm’s operations by adding nonfinancial
measures to traditional financial results.
A. Triple bottom line
B. Traditional business model
C. Progressive business model
D. Code of conduct
53. In terms of GRI indicators, which of the following is an environmental performance indicator?
A. Percentage of employees trained in the organization’s anticorruption policies
B. Voluntary donations to communities
C. Net revenues
D. Materials used by weight or volume
54. All of the following are examples of economic performance indicators in the triple bottom line
EXCEPT:
A. net revenues.
B. taxes paid.
C. ratio of basic salary of men to women by employee category.
D. charitable monetary contributions to local organizations.
55. In terms of GRI indicators, which of the following is an economic performance indicator?
A. Materials used by weight or volume.
B. Total number of substantiated complaints.
C. Number of jobs supported in the supply chain.
D. Total value of financial and in-kind contributions to political parties.
56. All of the following are examples of environmental performance indicators in the triple bottom line
EXCEPT:
A. energy use.
B. taxes paid.
C. changes in natural habitats caused by the company’s operations.
D. materials used by weight or volume.
57. Verification by audit that information in a corporate sustainability report is correct is known as:
A. triple bottom line.
B. social audit.
C. sustainability reporting.
D. assurance.
58. All of the following are examples of social performance indicators in the triple bottom line EXCEPT:
A. total amount of employee wages and benefits.
B. total hours of employee training.
C. total number of incidents of discrimination and actions taken.
D. total number of substantiated complaints regarding breaches of customer privacy.
59. When a company gives monetary gifts to society in order to advance social welfare, it is called:
A. the triple bottom line.
B. a social audit.
C. philanthropy.
D. volunteering.
60. In 2009, U.S. charitable giving was about $304 billion. The largest proportion of this was given by:
A. corporations.
B. foundations.
C. individuals.
D. charitable bequests.
61. 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?
A. Altruism
B. Cause-related marketing
C. Checkbook philanthropy
D. Venture philanthropy
62. When a corporation aligns its charitable strategy with its business strategy, it is known as:
A. venture philanthropy.
B. strategic philanthropy.
C. philanthrocapitalism.
D. altruism.
63. Which of the following is a variant of strategic philanthropy in which charitable contributions are based
on purchases of a product?
A. Altruism
B. Checkbook philanthropy
C. Venture philanthropy
D. Cause-related marketing
64. When American Express Co. advertised that it would donate 3 cents per transaction to nonprofit antihunger
groups over a two-month period for all charges against its credit card, it was an example of:
A. cause-related marketing.
B. checkbook philanthropy.
C. the triple bottom line.
D. a scenario.
65. Which of the following is an emerging form of philanthropy that uses market forces to achieve results?
A. Checkbook philanthropy
B. High impact philanthropy
C. Philanthrocapitalism
D. Microphilanthropy
66. Define a business model and explain its purpose.
67. Explain what is meant by corporate social responsibility.
68. Explain the basic components of a company’s mission statement. What should be included in this
statement?
69. Explain what is meant by the “triple bottom line” in GRI reporting.
70. Explain what is meant by corporate philanthropy and how it is expressed.
71. Distinguish between the progressive business model and the traditional model as they relate to corporate
responsibility.
72. What is a strategy? Discuss the implementation of a CSR strategy.
73. Explain what an action plan is and how it facilitates CSR implementation.
74. To complete the cycle of CSR implementation, companies can assess and report information about their
social performance. What are the two main purposes that companies achieve by publishing such reports?
75. Explain how a company can do a social audit when it decides to evaluate its impact on society.
76. Explain what the Global Reporting Initiative (GRI) is intended to accomplish.
77. What is checkbook philanthropy?
78. Explain what is meant by the concept of “strategic philanthropy” and give a business example of this
concept.
79. Discuss cause marketing. What are the criticisms of cause marketing?
80. What is philanthrocapitalism?
ch06 Key
1. (p. 160) TRUE
2. (p. 160-161) FALSE
3. (p. 162) FALSE
4. (p. 163) TRUE
5. (p. 164) TRUE
6. (p. 167) TRUE
7. (p. 168) FALSE
8. (p. 169) FALSE
9. (p. 170) TRUE
10. (p. 171) TRUE
11. (p. 172) TRUE
12. (p. 173) TRUE
13. (p. 174) TRUE
14. (p. 175) FALSE
15. (p. 176) FALSE
16. (p. 177) FALSE
17. (p. 177-178) TRUE
18. (p. 179) FALSE
19. (p. 180) FALSE
20. (p. 181) FALSE
21. (p. 160) B
22. (p. 160) A
23. (p. 160) A
24. (p. 160-161) C
25. (p. 161) B
26. (p. 160-161) C
27. (p. 161) D
28. (p. 162) D
29. (p. 163) C
30. (p. 163) A
31. (p. 163) C
32. (p. 164) B
33. (p. 164) D
34. (p. 164) A
35. (p. 164) C
36. (p. 164) A
37. (p. 164) B
38. (p. 167) D
39. (p. 167) C
40. (p. 167) A
41. (p. 168) C
42. (p. 168) D
43. (p. 169) C
44. (p. 170) A
45. (p. 171) B
46. (p. 171) D
47. (p. 171) D
48. (p. 171) C
49. (p. 171) B
50. (p. 171) D
51. (p. 171) A
52. (p. 172) A
53. (p. 173) D
54. (p. 173) C
55. (p. 173) C
56. (p. 173) B
57. (p. 173) D
58. (p. 173) A
59. (p. 175) C
60. (p. 176) C
61. (p. 177) C
62. (p. 178) B
63. (p. 179) D
64. (p. 179) A
65. (p. 181) C
66. (p. 160) A business model is the underlying idea or theory that explains how a business will create value by making and selling products in the
market. The theory is validated if the business makes a profit.
67. (p. 163) A corporation should assess its current situation and activities based on the society. This is known as its corporate social responsibility.
Companies manage their responses to social pressures by moving through a process of CSR implementation.
68. (p. 164) A mission statement is a brief statement of the basic purpose of an organization. The best ones define the business, differentiate it from
competitors, explain relationships with stakeholders, and focus energy on critical activities and goals.
69. (p. 171) Triple bottom line is an accounting of a firm’s financial, social and economic performance.
70. (p. 175) Corporate philanthropy is the concern for the welfare of society expressed by gifts of money or property to the needy or to activities for
social progress.
A traditional business model is one in which the central strategy for creating value is based on meeting market demands while complying with
the law. A progressive business model creates value by meeting market demands and, in the process, mitigating social problems or improving
society in some way. The value proposition is based on actions that would be considered voluntary responsibilities in more traditional companies.
Progressive business models are rare, the basis of only a few companies.
71. (p. 160-161) In the universe of business models, there are two distinct types as they relate to corporate responsibility, the progressive model and
the traditional model.
72. (p. 167-168) A strategy is a basic approach, method, or plan for achieving an objective. To establish its CSR objective, a company can consider
options suggested by the profile of its situation constructed in the prior CSR review stage. This profile can be analyzed to find the strengths and
weaknesses in the company’s social response and the threats and opportunities in its environment. To be carried out, the strategy must be translated
into specific goals and performance objectives, embedded in policies and procedures, reinforced with processes, and supported by both the formal
structure and the informal elements of corporate culture.
73. (p. 169) In the implementation of CSR strategy, when a strategy and decision-making structure are in place, transforming intent into action
is still necessary. An action plan sets forth the multitude of tasks that, together, will bring the strategy to fruition. Such tasks include revising or
creating policies, budgeting resources, and assigning work.
74. (p. 171) To complete the cycle of CSR implementation, companies can assess and report information about their social performance. Publishing
such reports serves two main purposes. First, by informing stakeholders they create transparency; that is, they lift the veil, revealing the internal
strategies, structures, and processes that explain social performance. The opposite of transparency is opacity, or an inability to see inside
the organization to know how it works and acts. Openness is increasingly necessary to protect a firm’s reputation and to establish trust with
stakeholders. Second, aggregating data in a report allows both managers and outsiders to appraise the firm’s social performance.
75. (p. 171) New waves of social reports were called social audits to differentiate them from traditional financial audits. Early interest in social
auditing waned after a massive increase in environmental and social regulation hit businesses in the 1970s. New regulations contained strong
reporting requirements that were, in effect, government-mandated social reports. However, as time passed and large corporations became more
globalized, these requirements were less and less adequate. An information gap between companies and stakeholders opened wide. To fill this gap,
the international progressive community created a new reporting format called the Global Reporting Initiative (GRI). The GRI is a set of uniform
standards for sustainability reporting, or the measurement and disclosure of how closely corporate performance conforms to the goal of sustainable
development.
76. (p. 171) Early interest in social audits waned after American companies were hit by a massive increase in environmental and social regulation
in the 1970s. The new regulations had strong reporting requirements that were, in effect, government-mandated social reports. However, as time
passed and large corporations became more globalized, these requirements were less and less adequate. An information gap between companies
and stakeholders opened wide. To fill this gap, the international progressive community created a new reporting format called the Global
Reporting Initiative (GRI). The GRI is a set of uniform standards for sustainability reporting, or the measurement and disclosure of corporate
impacts to inform stakeholders how closely operations conform to the goal of sustainable development. Sustainable development 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.” Using
GRI guidelines, companies show how closely they conform to this ideal by explaining their performance on a triple bottom line of economic,
social, and environmental results.
77. (p. 177) Checkbook philanthropy is a traditional form of corporate philanthropy characterized by donations to multiple worthy causes without
any relationship to business strategy. Most large corporations engage in heavy checkbook philanthropy.
78. (p. 177-179) Strategic philanthropy can be explained as the alignment of a corporation’s charitable strategy with its business strategy. Strategic
philanthropy is a form of corporate philanthropy in which charitable activities reinforce strategic business goals. Mattel donating $25 million to put
its name on the children’s hospital at UCLA, now called Mattel Children’s Hospital, would be an example of strategic philanthropy.
Cause-related marketing raises big sums for worthy causes, but its mixture of altruism and self-interest attracts criticism. Skeptics call
it “consumption philanthropy” that promotes wasteful materialism and suggest that people simply give directly to causes. They note that
companies pick causes based on research into what consumers care about, instead of trying to find the most acute needs.
79. (p. 177-180) Cause marketing is a variant of strategic philanthropy in which charitable contributions are based on purchases of a product. It links
a brand to a social cause so both benefit. Marketers have learned that if their brand is connected to a charitable cause an attribute is created, one
that appeals to the consumer’s conscience. In cause-related marketing, the corporation calculates it will add this benevolent dimension to its brand
while also doing a philanthropic good deed. Cause marketing is a powerful sales tool.
80. (p. 181) Now, a model of philanthropy is emerging based largely, but not entirely, on the philosophies and examples of new billionaires
from technology industries. In distinctive ways, new philanthropists, either themselves or through their companies, apply the business methods
that made them rich to the field of philanthropy, blurring the line between charity and business, seeking to harness market forces. This new
philanthropy, or philanthrocapitalism as it is often called, covers a range of actors and approaches but it is bold, entrepreneurial, results-oriented,
closely engaged, and impatient.
ch06 Summary
Category # of Question
s
Difficulty: Easy 28
Difficulty: Hard 9
Difficulty: Medium 43
Steiner – Chapter 06 80