Test Bank for Strategic Corporate Social Responsibility Sustainable Value Creation 5th Edition David Chandler
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Chapter 1: What Is CSR?
Test Bank
Multiple Choice
1. Which of the following exist to define the rules and structures of society within which all organizations must operate?
A. for-profits
B. governments
C. nonprofits
D. religion
Ans: B
Cognitive Domain: Knowledge
Answer Location: What Is CSR?
Difficulty Level: Easy
2. All those who in some way are related to a firm’s activities are known as ______.
A. shareholders
B. public
C. stakeholders
D. clients
Ans: C
Cognitive Domain: Knowledge
Answer Location: A New Definition of CSR
Difficulty Level: Easy
3. Which of these is NOT a for-profit business?
A. Facebook
B. Nike
C. Red Cross
D. Uber Ans: C
Cognitive Domain: Comprehension
Answer Location: What Is CSR?
Difficulty Level: Easy
4. With the rise of agency theory, there has been a renewed focus on what group in companies?
A. managers
B. employees
C. clients
D. shareholders
Ans: D
Cognitive Domain: Comprehension
Answer Location: What Is CSR?
Difficulty Level: Moderate
5. Which of the following is NOT part of Archie Carroll’s pyramid of corporate social responsibility?
A. stakeholder responsibility
B. legal responsibility
C. discretionary responsibility
D. ethical responsibility
Ans: A
Cognitive Domain: Comprehension
Answer Location: A New Definition of CSR
Difficulty Level: Easy
6. An application of Milton Friedman’s argument is ______.
A. providing workers time off to volunteer in their communities
B. establishing a recycling program
C. maximizing shareholder returns
D. clearly defining ethical concerns along a product’s supply chain
Ans: C
Cognitive Domain: Application
Answer Location: What Is CSR?
Difficulty Level: Medium
7. In the 1790s, consumer boycotts occurred in reactions to which of the following?
A. slave-harvested sugar
B. cheap cotton from the United States
C. the high price of fuel (lamp) oil
D. the use of the Royal Navy in England to transport slaves
Ans: A
Cognitive Domain: Knowledge
Answer Location: The Evolution of CSR
Difficulty Level: Medium
8. A central part of the moral argument for corporate social responsibility comes from the thinking that
A. businesses have to pay taxes, so they should have to be responsible in other ways as well
B. society cannot afford all its needs unless business is forced to go beyond just paying taxes
C. business leaders and shareholders make money, so they should be morally responsible to society, especially to the poor
D. a large part of business success comes as much from actions that are congruent with societal values and norms as from factors internal to the company
Ans: D
Cognitive Domain: Comprehension
Answer Location: Foundations of CSR | A Moral Argument for CSR
Difficulty Level: Hard
9. The rational argument for corporate social responsibility is summarized by the Iron Law of Social Responsibility, which states that ______.
A. ultimately it is government, not business, that is responsible for a satisfying society
B. responsibility for a just society is everyone’s responsibility
C. in a free society, discretionary abuse of societal responsibilities leads, eventually, to mandated reprisals
D. concern for CSR must be the first priority of the courts
Ans: C
Cognitive Domain: Comprehension
Answer Location: Foundations of CSR | A Rational Argument for CSR
Difficulty Level: Medium
10 Strategic CSR expounds the argument in favor of corporate social responsibility.
A. financial
B. economic
C. political
D. social
Ans: B
Cognitive Domain: Knowledge
Answer Location: Foundations of CSR | An Economic Argument for CSR
Difficulty Level: Medium
11. Which of the following is an example of an economic argument for corporate social responsibility?
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