Q&A Hero

Q: Instead of valuing natural capital, current financial and accounting models treat essential natural components such as water and air quality as ______ when accounting for profits and losses. A. free B. long-term depreciation C. short-term depreciation D. contingent valuation

Q: Although we have some intuitive sense of which firms are good and which are bad, we are presently unable to compare one firm to another reliably across all aspects of operations, because ______. A. there is universal acceptance among firms to the idea of greater transparency B. there is inherent difficulty of defining societal expectations C. there are legal prohibitions to rating companies as good or bad in terms of CSR D. there is inherent difficulty in finding firms willing to rate companies as good or bad

Q: Which company has introduced the idea of an environmental profit and loss (EP&L) account? A. Nike B. Wilson Sporting Goods C. Under Armour D. PUMA

Q: The ______ focuses primarily on resource utilization and waste reduction. A. lifecycle economy B. green economy C. circular economy D. sustainable economy

Q: Which of the following companies has been cited as a leader in CSR, while not also engaging in unethical conduct? A. Patagonia B. Kelloggs C. PepsiCo D. Volkswagen

Q: An important concept in corporate social responsibility is that the responsibility ______. A. lies with the corporation B. lies with the government C. is voluntary D. is bidirectional

Q: A CSR measure that captures performance on financial, environmental, and social metrics is known as ______. A. integrated reporting B. performance auditing C. triple bottom line D. scope entirety

Q: An example of a lifecycle analysis conducted during the design stages of a product would be a ______. A. carbon tax B. value-added tax C. soda tax D. cigarette tax

Q: Whole Foods Supermarkets use of a color-coded stoplight scale to assess and support sustainable seafood products is an example of which of the three interlinked steps in measuring CSR? A. standardizing B. reconciling C. certifying D. labelling

Q: One industry that is particularly problematic to use such ratings as ecolabels is ______. A. the energy industry B. the automobile industry C. the drug industry D. the food industry

Q: The 18th-century economist, Adam Smith, believed in free markets because he believed in ______. A. people as rational actors B. the sovereign state C. regulation of the market price D. regulation of the natural price

Q: Lots of companies appear to embrace going green, but in order to make sure that companies are actually committed to green practices it is important to know if the companies ______. A. communicate their intentions to do good B. show how their competitors are not acting green C. match what they say with specific actions D. are identified as green by the Environmental Protection Agency

Q: The field of behavioral economics demonstrates that the best way to get people to engage in responsible behavior is through ______. A. sanctions B. incentives C. bartering D. nudges

Q: The first stage of CSR reporting that developed in response to external pressure following publicized corporate transgressions was ______. A. redemptive reporting B. coerced reporting C. imitative reporting D. opportunistic reporting

Q: While ______ focuses on resource utilization and waste reduction, ______ is an attempt to incorporate all the costs into the final price that is charged for a product. A. the circular economy; lifecycle pricing B. lifecycle pricing; the circular economy C. the circular economy; externality marketing D. externality marketing; lifecycle pricing

Q: Lifecycle pricing involves the incorporation of ______ in the final price of a product. A. negative costs B. indirect costs C. internalities D. circular pricing

Q: Which of the following attempts to capture all of the impacts of the production process, at each step in the supply chain, and assign a quantitative value to each step? A. circular pricing B. environmental impact regulation C. market optimization D. lifecycle pricing

Q: An example of greenwashing would be ______. A. Enrons mark-to-market accounting practices B. Exxon covering up its knowledge about climate change C. Poland Spring changing from glass to plastic bottles D. Nike doubling the pay of its Filipino workers

Q: Because of the difficulties in measuring CSR, our determinations of a socially responsible company are ______. A. relative B. absolute C. objective D. futile

Q: One reason it is difficult to compare one company to another in terms of good and bad is that many companies are resistant to ______. A. being profitable B. being regulated C. being transparent D. being ethical

Q: Nudges incorporate the cognitive biases that shape our decisions into policies that encourage ______ outcomes, while still retaining the ______ of choice. A. fair; freedom B. optimal; illusion C. future; freedom D. ethical; concept

Q: According to the textbook, ecolabels are ______. A. primarily designed as marketing tools B. designed to measure environmental impact C. becoming consistent across all industries D. very useful to help consumers clearly understand the products they buy

Q: In the same way that classical economic theory models false assumptions about rational man, the CSR and sustainability debate, for the most part, models equally false assumptions about ______ man. A. irrational B. ethical C. altruistic D. responsible

Q: Compliance with ______ goes to the heart of the CSR debate because it largely dictates the degree to which a firm is accepted by society. A. government regulations B. stakeholder expectations C. voluntary codes D. UN standards

Q: Those who support the mandatory enforcement of societys interests believe that ______ is the only way to ensure firms behave in a way that is broadly acceptable. A. punishment B. rewards C. coercion D. guilt

Q: According to the textbook, which of the following seems to be the universal standard in corporate social responsibility audits? A. Ceres Principles B. Global Impact Investing Rating System (GIIRS) C. Global Reporting Initiative (GRI) D. Sustainability Accounting Standards Board (SASB)

Q: According to the textbook, definitions of corporate social responsibility are currently ______. A. highly idiosyncratic B. coalescing around the concept of strategic CSR C. less confusing than they were 10 years ago D. differ more across countries and cultures than within countries and cultures

Q: According to the textbook, how to measure corporate social responsibility is ______. A. becoming widely understood with the implementation of ISO 26000 B. becoming widely understood as more business schools teach principles of CSR in required courses C. one of the most pressing and contentious areas of the CSR debate today D. a nonissue when taking the perspective of strategic CSR

Q: The CSR and sustainability debate tends to model false assumptions about human behavior because it fails to take into account the fact that individuals act in their ______. A. rational self-interest B. actual self-interest C. perceived self-interest D. actual selfishness

Q: In general, dichotomous measures of corporate social responsibility are unhelpful to those who advocate for CSR because ______. A. such measures reflect the biases of the measuring organization B. CSR is more complicated than a simple yes or no C. all firms contain good and bad D. all of these

Q: Why is profit optimization a more useful focus for firms than profit maximization?

Q: In your opinion, what was the primary cause of the BP oil companys series of serious accidents? In your response, you should explain whether or not stakeholders have it in their collective power to shape the firms that they populate their economies.

Q: Why is competition valuable? How does competition contribute to strategic CSR?

Q: The $5 T-shirt is readily available today, and its existence has profound implications for the type of society in which we live. Describe and analyze these implications.

Q: Is it OK for a for-profit company to profit from poverty? Why or why not?

Q: Assuming a company found a profitable niche in serving the poorest 4 billion people in the world, how might such a breakthrough help the firm sell to the developed world at the top of the economic pyramid?

Q: Research has shown that consumers at the bottom of the pyramid (BOP) have different aspirations than do other consumers.

Q: Prahalad argued that poor people in the developing world needed more educational and health services provided by Western democracies.

Q: The existence of profit is a prima facie indication that the business has succeeded in producing something consumers want and value.

Q: A significant reason for the supremacy of market forces is the pivotal role of profit.

Q: According to the textbook, stakeholders do not have it in their collective power to shape which firms they want to populate the economy.

Q: Which of the following describes strategic CSR? A. a theoretical exercise B. a passive doctrine C. a highly empowering approach D. all of these

Q: If I buy a hybrid car like a Prius, one benefit that I receive is ______. A. I show how well off I am B. I show how persuasible I am C. I show how environmentally conscious I am D. I show how economical I am

Q: According to the textbook, ______ are becomingly increasingly important in developing countries for conducting business. A. business school graduates B. elements of technological infrastructure, such as fixed landlines C. mobile phones D. NGOs

Q: The idea of profit maximization is unhelpful because ______. A. it distorts decision-making within the firm B. it deemphasizes shareholder value C. it distracts from profit optimization D. it does not consider the needs of all of the firms stakeholders

Q: ______ is central to the concept of strategic CSR. A. Compassion in organizations B. Profit generation C. Focus on social problems D. all of these

Q: Which of the following can be considered a negative externality? A. pollution caused in manufacturing a product B. change in a political administration C. changing demographics D. globalization

Q: Which of the following is not a component of Unilevers Sustainable Living Plan? A. halve the environmental impact of its products B. source 100% of agricultural raw materials sustainably C. hire women in 50% of executive positions within the company D. help more than 1 billion people improve their health and well-being

Q: In partnering with UNICEF on a handwashing campaign in Uganda, Unilevers goal is to sell Lifebuoy soap, while UNICEFs goal is ______. A. to show Ugandans market principles B. to introduce Ugandans to other Unilever products C. to enhance UNICEFs reputation D. to reduce infectious diseases

Q: William Lever, one of the founders of Unilever, is known for ______. A. promoting women in management positions B. reducing the environmental impact of company products C. sourcing agricultural materials sustainably D. creating soap to encourage cleanliness and reduce infectious disease

Q: Unilever has committed itself to implementing ______ as a core component of strategy and operations. A. profit sharing B. corporate social responsibility C. shareholder activism D. cause marketing

Q: Recognizing that many Indians could not afford to buy a big bottle of shampoo, ______ developed single-use packets that sell for a few cents, and now the company sells 4.5 billion of them per year. A. Johnson & Johnson B. Colgate-Palmolive C. Proctor & Gamble D. Unilever

Q: ______ are the best hope for social progress in developing countries. A. Educational institutions B. For-profit firms C. Health-care institutions D. Transportation infrastructure improvements

Q: ______, rather than ______, offers the best means for rapid social progress in the developing world. A. International aid; educational opportunity B. Economic development; international aid C. Health care; educational opportunity D. Educational opportunity; technological infrastructure

Q: ______ is working to deliver products that are both in demand and essential to societal progress and human well-being. A. Cadbury B. Coca-Cola C. Philip Morris D. Unilever

Q: The challenge we face as a society is to strike a balance between the part of our standard of living that is formed from the ______ of goods and services and the part that is formed from the ______ of goods and services. A. production; consumption B. regulation; control C. monetizing; donation D. control; freeing

Q: Cadburys business model includes ______. A. expanding the companys presence in the confectionary market in India into the bottom of the pyramid by providing low-cost products B. focusing primarily on wealthy, Western markets in which people can pay premium prices for Cadbury products C. marketing the companys candy and confectionary products to all age groups D. transitioning from confectionary products to basic hygiene products, such as soap and toothpaste, that are necessary in bottom of the pyramid countries

Q: Prior to the work of C. K. Prahalad, the main way in which Western countries provided aid to the Third World was to ______. A. provide educational opportunities to the middle class B. develop industrial manufacturing capabilities in large Third World cities C. give materials such as surplus food and medical equipment to poor people D. develop trading relationships with indigenous cultures

Q: C. K. Prahalad argued that countries at the bottom of the pyramid ______. A. deserve restitution from the colonial powers that historically exploited these countries B. should work with the United Nations to develop health programs for their impoverished people C. will soon be more economically powerful than the United States, France, and Germany combined D. represent a huge and largely untapped market with many business opportunities

Q: As an illustration of Chinas economic revolution, in 1990, approximately two-thirds of people in China lived in poverty. Today the figure is ______. A. 32% B. 22% C. 12% D. 2%

Q: From a strategic CSR perspective, the next billion represents ______. A. a hugely untapped market segment B. victims of globalization and modernization C. an important source of cheap labor D. a growing source of mineral resources

Q: By 2016, it is estimated that the richest 1% of the worlds population will own more wealth than approximately ______ of the population. A. 25% B. 50% C. 75% D. 99%

Q: The bottom of the pyramid (BOP) refers to ______. A. the largest sector of the four-tier pyramid used to represent the worlds population by income B. the section of the economy occupied by the wealthiest individuals C. the smallest sector of the four-tier pyramid used to represent the worlds population by income D. the section of the economy that serves as the base for future economic development

Q: A company that stirred controversy for marketing a product to the next billion that is a luxury rather than a necessity is ______. A. IBM B. Amazon C. KFC D. LOral

Q: Unilevers rethinking of refrigeration technology allows it to deliver ice cream in India for just two cents per portion. This is an example of ______. A. a company serving neglected customers B. a company maximizing its profits C. a company that cares about its customers D. a company being socially responsible

Q: The pursuit of ______ is characteristic of firms that are implementing strategic CSR. A. short-term profits B. medium-term profits only C. medium- to long-term profits D. long-term profits only

Q: ______ is a more valuable focus than ______ in understanding value creation for stakeholders. A. Profit maximization; profit optimization B. Profit optimization; profit maximization C. Profit optimization; profit sharing D. Profit sharing; profit maximization

Q: The textbook author argues that there is no distinction between ______ and social problems. A. economic problems B. personal problems C. stakeholder problems D. shareholder problems

Q: The role of ______ is a significant reason for the supremacy of market forces. A. profit B. social value C. stakeholders D. shareholders

Q: According to the textbook, economic value and social value are ______. A. completely separate constructs B. not completely separate constructs C. best understood as shareholder values D. changing most dramatically in bottom-of-the-pyramid (BOP) countries

Q: According to the textbook, BPs (British Petroleums) series of accidents might have been prevented if ______. A. the firms stakeholders had enforced their oversight B. the firm had been appropriately managed C. shareholders had a greater voice at annual meetings D. the firm had hired an environmental management team

Q: One overall effect of the encroachment of the Internet and social media into every aspect of our lives is to cause companies to ______. A. lose control over the flow of information B. gain greater control over the flow of information C. establish significantly larger marketing budgets D. increase profit sharing among primary stakeholders

Q: According to the textbook, the fact that one can buy a T-shirt for $5 in the United States is due primarily to ______. A. the accessibility of cheap cotton B. marketing strategies of large apparel companies C. consumer demand for $5 T-shirts D. lack of concern for the workers who make T-shirts

Q: Which of the following is NOT a component of Patagonias Product Lifecycle Initiative? A. reduce B. repair C. restructure D. recycle

Q: If we want the market to change, therefore, we are likely to be more successful if we change the collective set of ______ that the market reflects. A. rules B. values C. operations D. ethics

Q: Which of the following is true of Patagonias Product Lifecycle Initiative? A. It encourages and supports governmental regulation of the clothing industry. B. It emphasizes the importance of shareholder oversight of manufacturing processes. C. It places primary responsibility for environmental stewardship on the CEO. D. It consists of a mutual contract between the company and its customers to act responsibly.

Q: The textbook argues that ______ is the most effective means to ensure the firms long-term viability. A. ensuring strong capital reserves B. corporate social responsibility C. innovation D. marketing

Q: The combination of high-frequency trading and massive investment funds holding large, but passive, positions is redefining what it means to be a ______. A. stockbroker B. manager C. director D. shareholder

Q: Because many stock trades are governed by third-party transactions, this drives a wedge between shareholders and ______. A. regulators B. managers C. employees D. markets

Q: According to the textbook, the statement, Shareholders are the owners of corporations is a ______, not a ______. A. legal fact; belief B. belief; legal fact C. legal fact; principle D. principle; theory