Q&A Hero

Q: The CSR debate is often characterized as a battle between supporters of Milton Friedman on one side and the supporters of Charles Handy on the other. Describe this battle and analyze the adequacy of this metaphor as a characterization of current CSR debates.

Q: Social responsibility is more than a set of abstract standards.

Q: Companies are more likely to continue to act socially responsible if it is the right thing to do.

Q: For long-term success, a firm should focus on its organizational stakeholders.

Q: Corporate social responsibility can be defined as the responsibility of firms to act in accordance with stakeholder needs.

Q: All stakeholders have an obligation to help design the society in which they want to live and work.

Q: Milton Friedman and Charles Handy had very similar ideas about businesses and their purpose.

Q: Firms who do not act responsibly always face negative consequences.

Q: If stakeholders do not express dissatisfaction with a firms actions, it means they are satisfied.

Q: 60 Minutes exposed the mislabeling of products by the flooring company Lumber Liquidators, and the EPA threatened to withhold approval for selling Volkswagen and Audi diesel models. These are both examples of ______. A. corporate social responsibility B. corporate stakeholder responsibility C. bureaucratic overstepping that negatively impacts business D. Milton Friedmans concept of the social responsibility of business

Q: The definition of what is and is not socially responsible is ______. A. universally understood across cultures B. established in the United Nations Principles of Responsible Management Education (PRME) C. primarily determined by laws and government regulations D. changing all the time and up to stakeholders to determine

Q: The United Nations Principles of Responsible Management Education (PRME) are important because ______. A. they set a standard baseline for the teaching of ethical decision-making in all business schools B. a growing awareness and acceptance of CSR is a necessary component of meaningful change C. business educators can best determine morally acceptable business practices D. business education will shape the future of what is considered socially responsible corporate behavior

Q: Recent research has indicated that ______. A. people are more honest in the morning than in the afternoon B. people are more honest in the afternoon than in the morning C. people are equally honest in the morning and the afternoon D. time of day does not impact ethical decision-making

Q: Because a $15-per-hr minimum wage might create economic suicide for McDonalds as it would force them to raise prices for customers who like low prices, what action is least likely to result in a $15-per-hr minimum wage? A. the government increasing the minimum wage B. employees refusing to work at that wage rate C. customers refusing to shop at McDonalds because they are unhappy with the wages the company is paying its employees D. the government initiating right to work legislation

Q: Which of the following is true in relation to CSR and many other aspects of business? A. It does not pay firms to be too far ahead of the curve. B. Firms that take the lead on CSR issues are almost always rewarded by consumers C. It pays firms to be way ahead the curve. D. Firms that take the lead on CSR issues are never rewarded by consumers.

Q: According to the text, untrammeled consumption has damaging consequences in all but which of the following domains? A. economic B. environmental C. psychological D. sociological

Q: The text argues that CSR is not only a corporate responsibility but also a(n) ______ responsibility. A. shareholder B. stakeholder C. management D. industry

Q: The United Nations Principles of Responsible Management Education (PRME) include which of the following? A. to develop the capabilities of students to work for an inclusive and sustainable economy B. to interact with managers of business corporations to extend our knowledge of their challenges in meeting social and environmental responsibilities C. to facilitate and support dialog with multiple stakeholders on critical issues related to global social responsibility and sustainability D. all of these

Q: Over the last 20 years, one attribute that more and more defines millennials is their ______. A. altruism B. creativity C. narcissism D. dogmatism

Q: As awareness of socially responsible business practices has increased, consumers have generally responded by ______. A. paying significant price premiums for socially responsible products B. continuing to focus primarily on the price and/or quality of products C. refusing to purchase products if they are not green certified D. paying more for green products but not for other socially responsible products

Q: According to the Gallup Annual Honesty and Ethics poll, the percentage of the U.S. public surveyed who rated business executives ethics as high or very high is ______. A. rising dramatically, with over 50% responding that business leaders are ethical B. dropping dramatically, from over 75% in 1990 to approximately 50% in 2014 responding that business leaders are ethical C. remaining consistently high, with approximately 75% responding that business leaders are ethical D. remaining consistently low, with never more than 25% responding that business leaders are ethical

Q: An unchecked, unbridled pursuit of economic value, without regard to the social consequences (e.g., such as by manufacturing a product in a way that generates excessive pollution), creates ______. A. the strategic CSR window of opportunity B. a CSR deficit for the society in which the firm operates C. the CSR perspective D. the Iron Law of Social Responsibility

Q: Who is most likely the author of the following quote? It is salutary to ask about any organization, If it did not exist, would we invent it? Only if it could do something better or more useful than anyone else would have to be the answer, and profit would be the means to that larger end. A. Charles Handy B. Milton Friedman C. Barack Obama D. Congressional Banking Oversight Committee

Q: What percent of a survey of millennials say companys commitment to the community has an influence on their decision to work there? A. 20% B. 35% C. 50% D. 70%

Q: Charles Handy argued for which of the following ideas? A. There should be more government intervention when CSR is lacking. B. Firms should seek societal goals beyond making profits. C. Market forces should not play a role in CSR. D. CSR is not a proper concern of companies.

Q: Milton Friedman argued for which of the following ideas? A. There should be more government intervention when CSR is lacking. B. Firms should seek societal goals beyond making profits. C. Market forces should not play a role in CSR. D. CSR is not a proper concern of companies.

Q: Demand for firms to be socially responsible may arise from ______. A. special interest groups and suppliers B. employees and customers C. company leaders D. all of these

Q: Today, stakeholders outside the firm have greater opportunities to mobilize their efforts because of ______. A. societys elites B. greater sophistication among government leaders C. declining world trade D. the revolution in communications technology

Q: The text argues that the CSR cause is best advanced when stakeholders are not only caring and informed but also ______ and ______. A. transparent; educated B. transparent; powerful C. educated; organized D. action oriented; transparent

Q: When a firm prioritizes stakeholder concerns in relation to a given issue, ______ is maintained when the firm is able to stay where opportunity is maximized and risk minimized. A. the CSR sweet spot B. the CSR danger zone C. the CSR threshold D. CSR optimization

Q: Which of the following is NOT an example of stakeholder retaliation? A. governmental regulations related to cleaning products B. boycotts by consumers of cleaning products that harm the environment C. TV advertisements for a cleaning product that does not harm the environment D. strikes by employees for higher wages

Q: In order to be considered responsible, the firm has to be able to create ______. A. equitable outcomes B. maximum outcomes C. fair outcomes D. optimal outcomes

Q: ______ occurs when stakeholders act to punish the firm for not meeting their expectations in relation to that issue. A. The CSR sweet spot B. The CSR danger zone C. The CSR threshold D. CSR optimization

Q: Which of the following is an example of a firm implementing the moral argument for CSR? A. A manufacturing business uses eco-products to keep up with its competitors. B. A large corporation pays its employees a living wage to end a consumer boycott C. A small business buys hybrid cars because of the tax benefits. D. A corporation ensures its products are made in fair labor conditions because it is the right thing to do.

Q: What characterizes the current era of globalization? A. Individuals are the main agents of globalization. B. Countries have much more economic and military power than before. C. Multinational companies look abroad for markets and labor D. Markets are integrated globally.

Q: Thomas Friedman wrote that we are in the era of ______. A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. Globalization 4.0

Q: According to the text, the range of firm behavior that generates value for both internal and external stakeholders in sufficient quantities is termed ______. A. the strategic CSR window of opportunity B. the strategic CSR best practices C. maximizing strategic CSR D. strategic CSR expansion

Q: What did Charles Handy argue in his 2002 Harvard Business Review article? A. A corporation should not waste time on CSR initiatives. B. If businesses are not making large profits, they should not exist. C. Firms should make satisfying shareholders their first priority. D. A business has to have a motivation other than merely making a profit in order to justify its existence.

Q: Which of the following is an application of Milton Friedmans ideas? A. A large, multinational corporation tries to ensure that workers throughout the supply chain earn a living wage. B. A small business makes maximizing profits its top priority. C. A firm decides to implement a recycling program to benefit the environment. D. A medium business encourages its employees to volunteer in the community.

Q: What did Milton Friedman argue in his seminal 1970 article published in The New York Times Magazine? A. Profit, although important, should not be the primary focus of firms. B. Firms have a duty to pay their employees a living wage. C. Profit, as a result of the actions of the firm, is an end in itself. D. Firms do not provide value to society unless they are acting in a socially responsible manner.

Q: Which publication published Milton Friedmans article The Responsibility of Business to Increase Its Profits? A. The Wall Street Journal B. The New York Times Magazine C. The Economist D. Forbes

Q: When responding to stakeholder concerns, the ability of the firm to maximize opportunity and minimize risk is known as the ______. A. CSR target B. CSR Threshold C. optimum CSR D. CSR sweet spot

Q: When will firms generally see stakeholder reactions to the firms decisions? A. within 1 month B. within 1 year C. within 5 years D. There is no time limit on reactions.

Q: Staff at Google compelled the company to back away from a Pentagon contract using Googles artificial intelligence software. This action shows the influence of ______. A. activist shareholders B. activist self-regulators C. activist social groups D. activist stakeholders

Q: The ______ argument for CSR assumes that firms act most effectively when they are incentivized to do so. A. economic B. moral C. rational D. ethical

Q: Simon Zadek identifies five stages of learning that organizations go through in developing a sense of corporate responsibility and four stages of intensity to measure the societal issues and publics expectations around the issues. Describe Zadeks model and use the model to analyze a real-life firm facing a corporate responsibility issue, clearly identifying the firms location and the issues location on each axis of the model.

Q: Putting yourself in the role of a CEO, describe the five steps of stakeholder prioritization, giving examples from your fictitious firm.

Q: Customers want lower prices and higher quality; employees want higher wages and better benefits and better working conditions; suppliers want to give fewer discounts and want you to buy more of their products; communities want more donations; governments want higher taxes; investors want higher dividends and higher stock prices. Present an economic situation that has recently been in the news and justify how/why each of the stakeholders listed above should have their priority met or not met.

Q: In what ways are the media a stakeholder? Please consider the definition of a stakeholder in your answer.

Q: How is the concept of stakeholder related to the five driving forces of CSR? Provide examples in your answer.

Q: Ed Freeman famously defined a stakeholder as any group or individual who can affect or is affected by the achievement of the organizations objectives. Discuss the strengths and weaknesses of this definition, providing examples to support your argument.

Q: A firm continuing to publicly deny the existence of global warming is in defensive mode.

Q: Societal stakeholders are the least important group of stakeholders.

Q: Prioritizing stakeholders is easy because it is obvious which stakeholders are most important to a firm.

Q: Societal stakeholders are the largest group of firm stakeholders.

Q: Although CSR is important, it is not central to running a business.

Q: As the owner of a local restaurant, you initiate a practice of composting all disposable food products and donating edible leftovers to a local homeless shelter. In Zadeks corporate responsibility model, you are in ______ mode while facing a(n) ______ issue. A. defensive; latent B. civil; institutionalized C. managerial; latent D. managerial; consolidating

Q: You are the owner of a local bakery. You recognize that by paying your hourly employees a living wage, you will serve the interests of the employees as well as maintain a more stable workforce in your firm. In Zadeks corporate responsibility model, you are in ______ mode. A. civil B. compliance C. defensive D. managerial

Q: Which of the following is an example of organizational stakeholders? A. competitors B. consumers C. employees D. shareholders

Q: Which of the following is NOT an example of economic stakeholders? A. competitors B. consumers C. employees D. shareholders

Q: ______ stakeholders are relatively easy compared to ______ stakeholders. A. Prioritizing; identifying B. Identifying; prioritizing C. Developing; sustaining D. Sustaining; developing

Q: Being able to prioritize among stakeholder groups is important because ______. A. managers should satisfy the interests of all stakeholders B. the interests of most stakeholders will ultimately align C. the interests of different stakeholder groups often conflict D. doing so provides the greatest opportunity to meet all societal needs

Q: Increasingly, managers will be required to address the competing interests of______. A. a narrow group of stakeholders B. a wide range of stakeholders C. a shrinking group of stakeholders D. governmental stakeholders and regulators

Q: At the United Nations COP21 meeting that took place in Paris in 2015, companies such as Alcoa, Apple, Bank of America, Cargill, Coca-Cola, General Motors, Google, Microsoft, and Walmart committed significant resources to cutting carbon emissions. Such recognition of the reality of climate change indicates that this issue is in the ______ stage. A. latent B. manifest C. emerging D. institutionalized

Q: Maximum risk arises when a firm is ______ in relation to an institutionalized issue because it is resisting a potential threat about which everyone agrees. A. ambivalent B. offensive C. defensive D. conservative

Q: A CEO has told you that the needs of the firms different stakeholder groups do not align; that is, what is best for organizational stakeholders is not what is best for economic and societal stakeholders. She has asked for your advice on prioritizing the stakeholder issue. You advise her that the general rule is to prioritize the ______. A. organizational stakeholders B. economic stakeholders C. societal stakeholders D. economic and societal stakeholders regardless of the impact on organizational stakeholders

Q: While all stakeholder types may be considered important, what is the stakeholder order of importance for the firm (from most important to least important)? A. organizational, societal, and economic B. economic, organizational, and societal C. societal, economic, and organizational D. organizational, economic, and societal

Q: Which of the following is NOT an example of societal stakeholders? A. employees B. the media C. government agencies and regulators D. local communities

Q: Why does the textbooks author not consider the natural environment a stakeholder? A. The natural environment lacks agency. B. Scientists have not presented enough evidence for human-caused global warming. C. NGOs do not lobby for the natural environment. D. Other stakeholders do not support the natural environment as an issue.

Q: What is the first step in stakeholder prioritization? A. act as quickly as is prudent to satisfy as many stakeholders as possible B. analyze the nature of the issue C. identify and engage the set of stakeholders that are relevant to the firm D. prioritize among competing stakeholder interests and demands

Q: In 1994, top executives of the seven largest tobacco companies testified in Congress that they did not believe that cigarettes were addictive. In Zadeks corporate responsibility model, the executives were in ______ mode while facing a(n) ______ issue. A. civil; institutionalized B. civil; latent C. defensive; institutionalized D. defensive; latent

Q: In 1994, top executives of the seven largest tobacco companies testified in Congress that they did not believe that cigarettes were addictive. What stakeholder was prioritized the least due to this action? A. shareholders B. employees C. the media D. customers

Q: As an owner of a coal mine, you have not had to pay any fines for not failing to meet federal worker safety guidelines, but you do no more than meet the federal requirements. In Zadeks corporate responsibility model, you are in ______ mode. A. civil B. compliance C. defensive D. managerial

Q: The extent to which it has become accepted business practice is known as issue ______. A. reification B. evolution C. operationalization D. entropy

Q: As CEO of a manufacturing firm, you introduce a standardized process to measure the carbon footprints of your entire product line and report the information on the labels of your products. In Zadeks corporate responsibility model, you are in ______ mode while facing a(n) ______ issue. A. defensive; latent B. civil; institutionalized C. managerial; latent D. defensive; emerging

Q: In Zadeks model, an irrelevant issue is characterized by ______. A. high strategic relevance and latent issue B. high strategic relevance and institutionalized issue C. low strategic relevance and latent issue D. low strategic relevance and institutionalized issue

Q: According to Simon Zadeks corporate responsibility theory, a company faces the greatest danger when it is in ______ mode while facing a(n) ______ issue. A. defensive; institutionalized B. compliance; latent C. defensive; consolidating D. compliance; emerging

Q: According to Zadek, an issue characterized as being of high strategic relevance and also being institutionalized is ______. A. an opportunity B. a danger C. irrelevant D. a caution

Q: ______ identified the five stages of learning that organizations go through when developing a sense of corporate responsibility. A. Ed Freeman B. Milton Friedman C. John Mackey D. Simon Zadek

Q: Integrating a stakeholder perspective into a strategic framework allows firms to respond to stakeholder demands in ways that maximize both ______ and ______ value. A. economic; social B. stakeholder; social C. economic; shareholder D. environmental; stakeholder