Ch12 Complete Test Bank CSR and Social Ventures

Package Title: Godfrey Test Bank

Course Title: Ethics and Business WileyPLUS

Chapter Number 12

Question type: Multiple-Choice

1) Which of the following choices most accurately describes corporate social responsibility?

a) Activities a firm undertakes that focus on the core mission and values of the company

b) Activities a firm undertakes that focus on tackling social issues outside the firm itself

c) Activities a firm undertakes that ensure shareholders receive minimum payments each period

d) Activities a firm undertakes to ensure that all employees receive fair pay and working conditions

Title: Chapter 12 Test Bank, Question 1

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Activities a firm undertakes that focus on tackling social issues outside the firm itself are corporate social responsibility.

2) Which of the following choices is the most accurate statement about corporate social responsibility?

a) Corporate social responsibility is premised on the notion that firms have societal obligations as well as business obligations.

b) Corporate social responsibility assumes that all members of a firm should and will act ethically.

c) Corporate social responsibility programs are required under law for all publicly traded companies.

d) Corporate social responsibility includes only green and sustainability initiatives the firm undertakes.

Title: Chapter 12 Test Bank, Question 2

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Corporate social responsibility is premised on the notion that firms have societal obligations as well as business obligations.

3) Ethical responsibilities are best described by which one of the following choices?

a) should be considered by firm managers in the context of unwritten values and standards

b) are the responsibility of the executives and board of directors of a firm

c) are less important in business, because a firm’s legal responsibilities are more important

d) are very similar to a firm’s economic responsibilities

Title: Chapter 12 Test Bank, Question 3

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Firm managers should consider ethical responsibilities in the context of unwritten values and standards.

4) Philanthropic responsibilities are best described by which one of the following choices?

a) They are undertaken by firms because of the positive public relations image they bring

b) They speak to a firm’s obligation to the wider community and society in which it operates

c) They Cause a firm to ensure that it can meet its current financial obligations

d) They take away from the firm’s bottom line and generally should be avoided

Title: Chapter 12 Test Bank, Question 4

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Philanthropic responsibilities speak to a firm’s obligation to the wider community and society in which it operates.

5) Which one of the following choices most accurately describes the concept of philanthropy?

a) Philanthropy is concerned with how a business can be as successful as possible.

b) Philanthropy is focused on contributing to another’s well-being.

c) Philanthropy is concerned with ensuring maximum publicity for all charitable endeavors.

d) Philanthropy is an effective tool to generate corporate tax deductions and savings.

Title: Chapter 12 Test Bank, Question 5

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Philanthropy is focused on contributing to another’s well-being.

6) Which one of the following statements concerning corporate social responsibility reporting and business performance is accurate?

a) Firms should engage in corporate social responsibility initiatives only when there is a clear financial incentive for doing so.

b) Firms should consider publicizing their corporate social responsibility initiatives to help boost their profitability.

c) Firms should view corporate social responsibility initiatives as a societal obligation.

d) Firms should consider spending more money on corporate social responsibility initiatives because of the tax benefits of doing so.

Title: Chapter 12 Test Bank, Question 6

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Firms should view corporate social responsibility initiatives as a societal obligation.

7) The instrumental view of stakeholder management is best described by which one of the following choices?

a) argues that firms do best for their stakeholders when they are as profitable as possible

b) argues that firms should not spend shareholder funds on any activities that do not increase the firm’s bottom line

c) argues that a firm does better when it takes seriously its obligation to its stakeholders

d) argues that a firm’s success is tied to the profitability of its stakeholders

Title: Chapter 12 Test Bank, Question 7

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: The instrumental view of stakeholder management argues that a firm does better when it takes seriously its obligation to its stakeholders.

8) Which one of the following choices best describes a compelling reason for firms to consider corporate social responsibility objectives?

a) Investors like management teams that are visionary.

b) They can negotiate better prices on goods and items they need for the business.

c) Firms that undertake such initiatives are always more profitable.

d) Firms that engage in corporate social responsibility practices will always engage in accurate and honest financial reporting.

Title: Chapter 12 Test Bank, Question 8

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: A compelling reason for firms to consider corporate social responsibility objectives is that investors like management teams that are visionary.

9) In which one of the following ways does a firm benefit by engaging in social responsibility?

a) The firm may be more trusted by suppliers.

b) The firm will enjoy lower costs of capital than its competitors.

c) Customers tend to make more purchases from firms that have publicized corporate social responsibility initiatives.

d) Employees can spend more time focusing on corporate social responsibility initiatives and less time focusing on the firm’s core business activities.

Title: Chapter 12 Test Bank, Question 9

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Suppliers might be more trusting of the firm.

10) Which one of the following choices best describes why a firm’s positive reputation for corporate social responsibility has been likened to an insurance policy?

a) It can help protect a firm’s economic value when negative events occur.

b) Investors and stakeholders seldom believe a firm that engages in corporate social responsibility initiatives would commit any wrongdoing.

c) It helps inflate the firm’s stock price due to the enhanced image of the firm.

d) Firms with effective corporate social responsibility policies rarely see decreases in stock price.

Title: Chapter 12 Test Bank, Question 10

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: A firm’s positive reputation for CSR has been likened to an insurance policy because it can help protect a firm’s economic value when negative events occur.

11) Social entrepreneurs

a) rarely come from industry and the business world

b) come from all areas of business

c) are primarily concerned with profitability

d) depend on social principles and business logic to help guide their decisions

Title: Chapter 12 Test Bank, Question 11

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Social entrepreneurs come from all areas of business.

12) Which of the following choices most accurately describes how social entrepreneurs generate value?

a) They connect organizations with the resources they need to be successful.

b) They drive change in institutions.

c) They tend to purchase businesses, make them profitable, and then sell them.

d) These entrepreneurs generate value through small investments in many small businesses.

Title: Chapter 12 Test Bank, Question 12

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Social entrepreneurs drive change in institutions.

13) Capacity building refers to:

a) firms borrowing money to fund growth and expansion

b) firms offering employees growth and advancement opportunities

c) the knowledge and skills transfer from one organization to another

d) when firms acquire other firms with the intention of entering a new market

Title: Chapter 12 Test Bank, Question 13

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Capacity building refers to the knowledge and skills transfer from one organization to another.

14) Institutional change refers to which one of the following choices?

a) the strategies firms employ to stay relevant in the marketplace

b) a reframing of problems and potential solutions

c) the trend in business of diversifying into different industries

d) the leanness of a firm when responding to emerging market opportunities

Title: Chapter 12 Test Bank, Question 14

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Institutional change refers to a reframing of problems and potential solutions.

15) The term social bricoleur refers to which of the following?

a) Taking existing things and combining them in new and innovative ways

b) The ability of a firm to reach its target audience effectively and efficiently

c) Practicing tried and true methods of achieving social justice through an entrepreneurial mindset

d) The ability to create momentum focused on change

Title: Chapter 12 Test Bank, Question 15

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: The term social bricoleur refers to taking existing things and combining them in new and innovative ways.

16) A benefit that could be associated with allowing employees a company-sponsored day of service:

a) might be renewed gratitude and appreciation for their own situation

b) might be helping employees to find other fields of employment

c) might be to form stronger relationships with other employees within the company

d) is to make the employees more grateful for how the firm treats them

Title: Chapter 12 Test Bank, Question 16

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility (CSR) fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: A benefit that could be associated with allowing employees a company-sponsored day of service might be renewed gratitude and appreciation for their own situation.

17) Which one of the following choices best describes corporate social responsibility activities and social entrepreneurship?

a) They are unrelated in the field of business.

b) They are required for all publicly traded companies.

c) They allow firms and employees to achieve challenging goals and grow together.

d) They are typically costly for firms and are generally discouraged by the firm’s stakeholders.

Title: Chapter 12 Test Bank, Question 17

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility (CSR) fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: CSR activities and social entrepreneurship allow firms and employees to achieve challenging goals and grow together.

18) Corporate social responsibility initiatives and social entrepreneurship are best described by which one of the following choices?

a) allow individuals and firms to cooperate in previously unheard-of ways

b) are unpopular among the firm’s stockholders due to their negative impacts on the bottom line

c) are declining among firms, due to recent evidence showing they are generally ineffective

d) are easier and more affordable for small firms, as they are typically leaner

Title: Chapter 12 Test Bank, Question 18

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility (CSR) fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: Corporate social responsibility initiatives and social entrepreneurship allow individuals and firms to cooperate in previously unheard of ways

19) Which of the following choices is a true statement regarding social entrepreneurship?

a) Social entrepreneurship is diminishing within companies as firms look to become leaner and more competitive.

b) Social entrepreneurship may cause employees to stretch their skill sets and grow as individuals.

c) Academic research has proven that social entrepreneurship is ineffective.

d) Social entrepreneurship can be a powerful economic driver and motivator of both individuals and companies.

Title: Chapter 12 Test Bank, Question 19

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility (CSR) fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: Social entrepreneurship may cause employees to stretch their skill sets and grow as individuals.

20) Which of the following choices best represents an example of corporate social responsibility?

a) A company announces the payment of dividends to shareholders.

b) A company decides to help clean up a river in its community.

c) A company decides to expand its operations into the Latin American market.

d) A company announces that all employees will receive pay increases that beat the current year’s inflation.

Title: Chapter 12 Test Bank, Question 20

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: A company decides to help clean up a river in its community.

21) Which of the following choices most accurately portrays the idea of corporate social responsibility?

a) Firms have moral and ethical obligations to their employees and vendors.

b) Firms have moral and ethical obligations to society at large.

c) Firms have an obligation to their shareholders to pay out a minimum amount of dividends each year.

d) Firms have an ethical duty to care for all stakeholders all the time.

Title: Chapter 12 Test Bank, Question 21

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Firms have moral and ethical obligations to society at large.

22) A firm’s economic responsibility is important because

a) firms have a responsibility to their stakeholders to be as profitable as possible

b) firms have a responsibility to their shareholders to be as profitable as possible

c) if firms are not profitable, they will not be able to meet any other goals

d) if a firm cannot fulfill its economic responsibilities, it may have to stop dividend payments to shareholders

Title: Chapter 12 Test Bank, Question 22

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: A firm’s economic responsibility is important because if firms are not profitable, they will not be able to meet any other goals.

23) A firm’s legal responsibility is important because:

a) the firm has an ethical and moral imperative to obey all laws and statutes

b) a firm’s ability to comply with the law is closely tied to its stock price

c) firms that don’t take their legal responsibilities seriously always end up in costly litigation

d) firms that take their legal obligations seriously are always more profitable

Title: Chapter 12 Test Bank, Question 23

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility(CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: A firm’s legal responsibility is important because the firm has an ethical and moral imperative to obey all laws and statutes.

24) A firm should take its ethical responsibilities seriously because:

a) the costs of not doing so, such as litigation and fines, can be extremely expensive

b) if a firm is more ethical, it will be more profitable

c) a firm that treats its employees and stakeholders well is more likely to be viewed favorably

d) research has shown that firms that act more ethically have been able to eliminate instances of fraud

Title: Chapter 12 Test Bank, Question 24

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: A firm should take its ethical responsibilities seriously because a firm that treats its employees and stakeholders well is more likely to be viewed favorably.

25) A firm should take its philanthropic responsibilities seriously because:

a) society expects firms to take care of social problems in their community

b) the firm owes an obligation to help strengthen the community in which it operates

c) there are no other organizations set up or geared to help the community

d) such activities can often generate large tax savings for the firm

Title: Chapter 12 Test Bank, Question 25

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: A firm should take its philanthropic responsibilities seriously because the firm owes an obligation to help strengthen the community in which it operates.

26) When firms allow their employees to donate “in-kind,” this refers to:

a) allowing payroll deductions of cash donations from the firm’s payroll

b) allowing employees to donate things other than cash, such as their time

c) firms matching the amounts of their employees’ donations

d) firms being able to use employees’ volunteer work in the community as tax deductions

Title: Chapter 12 Test Bank, Question 26

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: When firms allow their employees to donate “in-kind,” this refers to allowing employees to donate things other than cash, such as their time.

27) The concept of philanthropy is most closely associated with which of the following?

a) Employees and firms giving back in the form of gift giving

b) Firms allowing employees personal days and personal time off

c) Firms ensuring that they have the financial means to allow employees time off to pursue charitable work

d) Firms working to ensure that they maximize the tax savings on charitable endeavors

Title: Chapter 12 Test Bank, Question 27

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: The concept of philanthropy is most closely associated with employees and firms giving back in the form of gift giving.

28) Many firms choose to report their corporate social responsibility activities because:

a) they know if they do, it will make them more profitable

b) they are required to report these activities if they want to receive a tax break for them

c) many stakeholders have a keen interest in what their firm is doing for the betterment of all stakeholders

d) it allows firms to look better and be viewed more favorably than their competitors

Title: Chapter 12 Test Bank, Question 28

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Many firms choose to report their corporate social responsibility activities because many stakeholders have a keen interest in what their firm is doing for the betterment of all stakeholders.

29) Which of the following choices most accurately describes the Global Reporting Initiative (GRI)?

a) This initiative helps stakeholders to quantify the extent of corporate social responsibility activities a firm has undertaken.

b) This initiative is for publicly traded firms and allows them to report qualitative items that have helped their profitability.

c) This initiative only shows emissions levels and waste output by the world’s largest firms.

d) Because this initiative is extremely costly, very few firms have signed up for it.

Title: Chapter 12 Test Bank, Question 29

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility (CSR) and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: This initiative helps stakeholders to quantify the extent of corporate social responsibility activities a firm has undertaken.

30) Which of the following choices is a true statement pertaining to corporate social responsibility reports?

a) Corporate social responsibility reports are expensive to prepare; thus, many large firms simply do not bother with corporate social responsibility reporting.

b) Corporate social responsibility reports are often inaccurate and anecdotal, as opposed to factual and quantitative.

c) All reports are ultimately designed to help stakeholders understand the relationship between a firm and the society in which it operates.

d) Corporate social responsibility reports have become a source of competition among large firms to see who can impress the readers the most with the firms’ philanthropic actions and activities.

Title: Chapter 12 Test Bank, Question 30

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: All reports are ultimately designed to help stakeholders understand the relationship between a firm and the society in which it operates.

31) Which of the following choices most accurately portrays an example of corporate social responsibility?

a) A firm announces that all employees will receive stock options as a bonus.

b) A firm rarely terminates employees, preferring to retrain and rehabilitate them instead.

c) A firm announces layoffs associated with vastly reduced profitability.

d) A firm allows all employees three days per year for community-service–related work.

Title: Chapter 12 Test Bank, Question 31

Difficulty: Easy

Bloomcode: Comprehension

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: A firm allows all employees three days per year for community-service–related work.

32) Which of the following choices is a true statement pertaining to corporate social responsibility reporting?

a) All companies are now required to include corporate social responsibility reporting as part of their annual reports.

b) Only publicly traded firms are required to include corporate social responsibility reporting as part of their annual reports.

c) A firm’s corporate social responsibility reporting is required to be strictly quantitative.

d) Increasing numbers of firms are seeing the value attached to corporate social responsibility reporting and are choosing to report.

Title: Chapter 12 Test Bank, Question 32

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Increasing numbers of firms are seeing the value attached to corporate social responsibility reporting and are choosing to report.

33) A fundamental premise that underlies corporate social responsibility reporting is that

a) the firm owes an obligation to the society and the community in which it operates

b) the firm should undertake corporate social responsibility initiatives so long as they are projected to be profitable

c) the firm should undertake corporate social responsibility initiatives so long as they will make the firm look good to its stakeholders

d) society expects the firm to contribute toward solving all economic and social problems in the community in which it operates

Title: Chapter 12 Test Bank, Question 33

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: The firm owes an obligation to the society and the community in which it operates

34) The intrinsic view of reporting

a) indicates that firms always do better when they undertake corporate social responsibility initiatives and reporting

b) posits that firms should not allocate shareholder resources to these types of initiatives

c) indicates that corporate social responsibility reporting should be qualitative in nature, not quantitative

d) posits that it is irrelevant whether firms perform better because they undertake corporate social responsibility initiatives

Title: Chapter 12 Test Bank, Question 34

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 corporate social responsibility and Business Performance

Solution: Posits that it is irrelevant whether firms perform better because they undertake corporate social responsibility initiatives

35) The instrumental view of stakeholder management

a) posits that firms owe allegiance only to their shareholders

b) posits that firms owe allegiance only to parties with which they have direct financial relationships, such as customers and vendors

c) posits that firms that undertake corporate social responsibility initiatives are likely to do better financially

d) has become irrelevant in recent years due to the surge of companies self-reporting corporate social responsibility activities

Title: Chapter 12 Test Bank, Question 35

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: The instrumental view of stakeholder management posits that firms that undertake corporate social responsibility initiatives are likely to do better financially.

36) Which one of the following choices best describes why customers are tied to a firm’s corporate social responsibility performance?

a) Customers who trust and value the firm and its products are more likely to conduct repeat purchases.

b) Customers may feel as though products are being marked up in price to cover the firm’s corporate social responsibility initiatives.

c) Customers will automatically spend more money with firms that openly advocate and practice corporate social responsibility initiatives.

d) Firms need customers to purchase more products to fund corporate social responsibility initiatives.

Title: Chapter 12 Test Bank, Question 36

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Customers are tied to a firm’s corporate social responsibility performance because customers who trust and value the firm and its products are more likely to make repeat purchases.

37) Employees are tied to a firm’s corporate social responsibility performance in the sense that

a) they are likely to receive bigger raises and bonuses from firms that practice corporate social responsibility

b) employees who work for companies that openly practice corporate social responsibility are often more productive

c) employees often live in the communities in which they work and expect their employers to take care of all economic and social problems

d) they may be concerned that fiscal outlays on corporate social responsibility initiatives are hurting the company’s bottom line

Title: Chapter 12 Test Bank, Question 37

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Employees are tied to a firm’s corporate social responsibility performance in the sense that employees who work for companies that openly practice corporate social responsibility are often more productive.

38) Suppliers are tied to a firm’s corporate social responsibility performance in the sense that

a) suppliers may feel more comfortable partnering and doing business with firms that engage in corporate social responsibility initiatives

b) suppliers may be concerned about a firm’s ability to pay them, if they are spending funds on corporate social responsibility initiatives

c) suppliers may feel as though firms that are openly practicing corporate social responsibility initiatives are less trustworthy

d) suppliers may decide to extend less credit to firms that practice corporate social responsibility initiatives

Title: Chapter 12 Test Bank, Question 38

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups..

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Suppliers are tied to a firm’s corporate social responsibility performance in the sense that suppliers may feel more comfortable partnering and doing business with firms that engage in corporate social responsibility initiatives.

39) Investors are tied to a firm’s corporate social responsibility performance in the sense that

a) investors may decide not to invest in firms that practice corporate social responsibility initiatives due to the fiscal outlays

b) investors may feel better about investing in firms that practice corporate social responsibility initiatives because they may view this as a long-term focus

c) some investors may want to vote out management teams that advocate corporate social responsibility initiatives

d) all investors will advocate such initiatives due to the increases they expect to see to the bottom line

Title: Chapter 12 Test Bank, Question 39

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Investors are tied to a firm’s corporate social responsibility performance in the sense that investors may feel better about investing in firms that practice corporate social responsibility initiatives because they may view this as a long-term focus.

40) Which of the following statements is true concerning firms’ involvement in corporate social responsibility initiatives?

a) Research indicates that a firm’s involvement in corporate social responsibility initiatives will always improve the firm’s profitability.

b) Firms that are involved in corporate social responsibility initiatives should also involve themselves in contentious social issues.

c) Firms that openly practice corporate social responsibility initiatives should be careful to avoid social issues that may be viewed as contentious.

d) Research indicates that a firm’s involvement in corporate social responsibility initiatives will generally have a detrimental effect on the bottom line.

Title: Chapter 12 Test Bank, Question 40

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Firms that openly practice corporate social responsibility initiatives should be careful to avoid social issues that may be viewed as contentious.

41) Which of the following choices is the best example of an operational element with respect to corporate social responsibility initiatives?

a) A firm decides to deliberately offer above-market pay and benefits to its employees.

b) A firm gives all employees above-average raises to get them level with competing firms in the area.

c) A firm announces that it is outsourcing certain business components to free up funds for corporate social responsibility initiatives.

d) A firm decides to close its factories in the summer due to slackening demand during that time of the year.

Title: Chapter 12 Test Bank, Question 41

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: A firm decides to deliberately offer above-market pay and benefits to its employees.

42) Which one of the following choices best describes recent research findings about corporate social responsibility?

a) Companies that practice corporate social responsibility always manage to increase the bottom line.

b) Companies that practice corporate social responsibility do not always accurately report it.

c) Companies that practice corporate social responsibility provide themselves with a type of insurance policy for when things go wrong.

d) Companies that practice corporate social responsibility initiatives typically do so only because they want to generate a favorable public perception.

Title: Chapter 12 Test Bank, Question 42

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Companies that practice corporate social responsibility provide themselves with a type of insurance policy for when things go wrong.

43) Which of the following choices is a true statement related to corporate social responsibility initiatives?

a) Corporate social responsibility initiatives have been shown to help tackle macro issues such as global poverty and hunger.

b) Corporate social responsibility initiatives are practiced only by larger firms that have the financial resources to undertake them.

c) Corporate social responsibility initiatives have been criticized for being reported only quantitatively.

d) Corporate social responsibility initiatives have helped firms to create a positive perception among the firm’s stakeholders.

Title: Chapter 12 Test Bank, Question 43

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: Corporate social responsibility initiatives have helped firms to create a positive perception among the firm’s stakeholders.

44) Which one of the following choices best describes how corporate social responsibility initiatives and accurate reporting create business value?

a) because the firms that practice such initiatives have been shown to be more profitable

b) through increased philanthropy, stakeholder trust, and overall societal perception

c) because corporate social responsibility initiatives have helped tackle some of the world’s most serious social and societal problems

d) through increased philanthropy, stakeholder trust, and employee perception

Title: Chapter 12 Test Bank, Question 44

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: It could be said that corporate social responsibility initiatives and accurate reporting by firms create value through increased philanthropy, stakeholder trust, and overall societal perception.

45) Which of the following provides the best example of a corporate social responsibility benefit to an indirect stakeholder of a firm?

a) A firm announces all employees will receive above-market pay increases.

b) A firm announces a larger-than-normal dividend payment to its stockholders.

c) A firm announces and publicizes a new program to hire disabled workers.

d) A firm announces the expansion of its operations to a new overseas market.

Title: Chapter 12 Test Bank, Question 45

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: A firm announces and publicizes a new program to hire disabled workers.

46) Which one of the following choices best describes why social entrepreneurship is important?

a) It helps firms and individuals to maximize their earnings and profits.

b) It helps generate value for all stakeholders, not just the firm itself.

c) Firms that practice social entrepreneurship have been shown to be more profitable.

d) Not-for-profit firms often struggle financially because they do not practice this concept.

Title: Chapter 12 Test Bank, Question 46

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Social entrepreneurship is important because it helps generate value for all stakeholders, not just the firm itself.

47) Which one of the following statements is true regarding social entrepreneurs?

a) Social entrepreneurs always use business and market principles to help solve social problems.

b) Social entrepreneurs never use business and market principles to help solve social problems.

c) Social entrepreneurs are characterized by their refusal to live by economic and profit-producing principles.

d) Social entrepreneurs may opt to solve social problems through application of business principles.

Title: Chapter 12 Test Bank, Question 47

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Social entrepreneurs may opt to solve social problems through application of business principles.

48) An issue associated with social entrepreneurs is best described by which one of the following choices?

a) They experience difficulty associated with obtaining funding for their ventures.

b) They are often too ambitious and attempt to undertake too many tasks at once.

c) They are often wasteful with the resources with which they have been provided.

d) They tend not to stay in one place for a sustained period before they move on to their next venture.

Title: Chapter 12 Test Bank, Question 48

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: An issue associated with social entrepreneurs is the difficulty associated with obtaining funding for their ventures.

49) Which one of the following choices provides the best example of capacity building?

a) A firm that has operated only domestically decides to expand into international markets.

b) Following a merger between two firms, executives work to ensure all knowledge is shared among key employees from both prior firms.

c) A firm decides to cross-train all its employees on all job functions.

d) A firm commits to building and maintaining a community pool and park for employees and members of the community.

Title: Chapter 12 Test Bank, Question 49

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Following a merger between two firms, executives work to ensure all knowledge is shared among key employees from both prior firms.

50) Which one of the following choices most accurately describes the correlation between social entrepreneurs and services?

a) Social entrepreneurs typically offer a greater breadth of services.

b) Social entrepreneurs tend to offer more goods than services.

c) Services are more likely to be tailored around the social setting in which the entrepreneur operates.

d) Social entrepreneurs tend to be more concerned with margins on products being sold.

Title: Chapter 12 Test Bank, Question 50

Difficulty: Easy

Bloomcode: Comprehension

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Services are more likely to be tailored around the social setting in which the entrepreneur operates.

51) In the context of social entrepreneurs, institutional change refers to which one of the following choices?

a) How a social entrepreneur may look to reimagine an issue to try to find a solution

b) How a social entrepreneur may cause a company to change its policies and procedures over time

c) The ability of social entrepreneurs to have their firms leave some markets and enter others

d) The way in which a social entrepreneur focuses on some issues but tends to ignore others

Title: Chapter 12 Test Bank, Question 51

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: In the context of social entrepreneurs, institutional change refers to how a social entrepreneur may look to reimagine an issue to try to find a solution.

52) With respect to necessary skill sets, social entrepreneurs

a) tend to have a wide breadth and depth of skills

b) tend to possess less leadership skills, and more social skills

c) tend to avoid situations where existing things must be reframed and recombined in new ways

d) often require a specialized skill set in order to operate effectively

Title: Chapter 12 Test Bank, Question 52

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: With respect to necessary skill sets, social entrepreneurs often require a specialized skill set in order to operate effectively.

53) A social bricoleur is characterized by:

a) an ability to solve social problems through development of new products and services

b) solving social problems by combining resources in new and innovative ways

c) leveraging large institutional systems to help create momentum for change

d) a desire and willingness to solve all social problems in a firm’s immediate geographic vicinity

Title: Chapter 12 Test Bank, Question 53

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: A social bricoleur is characterized by solving social problems by combining resources in new and innovative ways.

54) A social constructor is best characterized as

a) having an ability to solve social problems through development of new products and services

b) solving social problems by combining resources in new and innovative ways

c) leveraging large institutional systems to help create momentum for change

d) a desire and willingness to solve all social problems in a firm’s immediate geographic vicinity

Title: Chapter 12 Test Bank, Question 54

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: A social constructor is best characterized as having an ability to solve social problems through development of new products and services.

55) A social engineer is best characterized as

a) having an ability to solve social problems through development of new products and services

b) solving social problems by combining resources in new and innovative ways

c) leveraging large institutional systems to help create momentum for change

d) a desire and willingness to solve all social problems in a firm’s immediate geographic vicinity

Title: Chapter 12 Test Bank, Question 55

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: A social engineer is best characterized as leveraging large institutional systems to help create momentum for change.

56) Which one of the following choices best describes why Mohammed Yunus is an example of a constructor?

a) He pioneered a new type of loan that helped impoverished women increase their standard of living.

b) He saw the opportunity to offer impoverished women alternative types of loans and profit off the interest rates.

c) He was able to act as an intermediary between the women workers and the big banks.

d) He put a stop to the exploitation of Bangladeshi women who were being taken advantage of by big banks and intermediaries.

Title: Chapter 12 Test Bank, Question 56

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Mohammed Yunus is an example of a constructor because he pioneered a new type of loan that helped impoverished women increase their standard of living.

57) Social engineers are best characterized by

a) an ability to get other people to do what they want them to do

b) being pioneers who lead companies from one business success to the next

c) their ability to show how social problems and business problems are not connected

d) their ability to design and scale programs to help solve societal issues

Title: Chapter 12 Test Bank, Question 57

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Social engineers are best characterized by their ability to design and scale programs to help solve societal issues.

58) Which one of the following choices represents the most appropriate advice for a college student interested in immediately learning more about social entrepreneurship?

a) The student should wait until they graduate and are ready to start a career before inquiring.

b) The student should inquire as to whether the institution has any programs or majors that the student could benefit from.

c) The student should contact any local social entrepreneurs and advise them of his or her graduation date.

d) The student should discuss this interest with regular entrepreneurs in the area.

Title: Chapter 12 Test Bank, Question 58

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: The student should inquire as to whether the institution has any programs or majors that the student could benefit from.

59) Which one of the following statements is true regarding social entrepreneurs?

a) Social entrepreneurs rarely tend to work in harsh or challenging conditions.

b) Social entrepreneurs are much less likely to struggle with corrupt systems and organizations.

c) Social entrepreneurs may find themselves surrounded by poor infrastructure and systems of communication.

d) Once they have begun successfully tackling the problem, social entrepreneurs will often build their own infrastructure.

Title: Chapter 12 Test Bank, Question 59

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: They may find themselves surrounded by poor infrastructure and systems of communication.

60) Which one of the following choices correctly describes a negative associated with being a social entrepreneur?

a) Social entrepreneurs rarely manage to make ends meet, causing great difficulties in executing their mission and vision.

b) Social entrepreneurs tend to be viewed less favorably by society, as compared to regular entrepreneurs who run successful firms.

c) Social entrepreneurs often face a stigma surrounding their inability to raise capital to fund such social ventures.

d) Social entrepreneurs often have to juggle the excitement of helping solve a social problem with the economic realities of being able to fund such a venture.

Title: Chapter 12 Test Bank, Question 60

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Social entrepreneurs often have to juggle the excitement of helping solve a social problem with the economic realities of being able to fund such a venture.

61) Institutional entrepreneurs

a) tend to stay at one institution for a short period of time

b) tend to focus more on macro problems that society and other institutions have not been able to fix

c) are focused more on short-term societal problems that can be easily solved

d) only work on solving problems within the institutions where they work

Title: Chapter 12 Test Bank, Question 61

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: Institutional entrepreneurs tend to focus more on macro problems that society and other institutions have not been able to fix.

62) Which one of the following choices provides the best example of a social constructionist?

a) An entrepreneur reengineers a product designed to help filter water in developed countries.

b) An entrepreneur launches a product designed to compete specifically in a profitable market.

c) An entrepreneur focuses his or her effort solely on buying and selling businesses in rapid succession.

d) An entrepreneur invests only in companies that have a stated social mission.

Title: Chapter 12 Test Bank, Question 62

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: An entrepreneur reengineers a product designed to help filter water in developed countries.

63) Which one of the following choices provides the best example of social engineering?

a) An entrepreneur focuses his or her effort solely on buying and selling businesses in rapid succession.

b) An individual opens a series of shelters to help abused and battered women.

c) An entrepreneur launches a product designed to compete specifically in a profitable market.

d) An entrepreneur reengineers a product designed to help filter water in developed countries.

Title: Chapter 12 Test Bank, Question 63

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: An individual opens a series of shelters to help abused and battered women.

64) Which of the following statements best describes the pyramid, as described in the chapter?

a) The economic pyramid helps show how a company can arrange and prioritize its responsibilities in order to be successful.

b) The pyramid focuses solely on the firm’s economic obligations and responsibilities.

c) The pyramid elaborates on philanthropic responsibilities as what a firm needs fiscally.

d) The pyramid indicates that legal responsibilities supersede all others.

Title: Chapter 12 Test Bank, Question 64

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: The economic pyramid helps show how a company can arrange and prioritize its responsibilities in order to be successful.

65) Positive emotion is important because

a) it is a good strategy for a firm to expose employees to those less fortunate than themselves

b) when employees feel positive emotions, they tend to help the company become more profitable

c) it may enable an employee to feel a sense of community and gratitude, which can help both the company and the individual

d) employees who become disheartened and disgruntled tend to cost their companies money in lost productivity and increased bottom line.

Title: Chapter 12 Test Bank, Question 65

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: Positive emotion is important because it may enable an employee to feel a sense of community and gratitude.

66) Aside from the economic and social benefits of employees engaging in CSR activities

a) such activities have also been found to help employees find new, more fulfilling career paths

b) it is entirely possible that employees feel an innate sense of worth and accomplishment through having helped others

c) employees can leverage such opportunities to improve their perception among their peers

d) employees should consider taking advantage of such opportunities to maximize the amount of time off from their employer

Title: Chapter 12 Test Bank, Question 66

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: Aside from the economic and social benefits of employees engaging in corporate social responsibility activities, it is entirely possible that employees feel an innate sense of worth and accomplishment through having helped others.

67) An important aim of successfully navigating ethical issues in business is to:

a) help an individual lead a life that is ethical and virtuous

b) always avoid lawsuits and litigation that may arise in business

c) help increase the firm’s value through increased ethics

d) help ensure maximum chances of promotion

Title: Chapter 12 Test Bank, Question 67

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: An important aim of successfully navigating ethical issues in business is to help an individual lead a life that is ethical and virtuous.

68) A potentially positive impact of CSR and social entrepreneurship

a) lies in its ability for firms to increase both revenues and stock prices over time

b) may be the ability for an individual to see how their work positively impacts communities and society over time

c) is the competitive advantage it brings to companies who successfully leverage them

d) is the solving of all societal problems in the immediate geographic area of the firm

Title: Chapter 12 Test Bank, Question 68

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: A potentially positive impact of corporate social responsibility and social entrepreneurship may be the ability for an individual to see how their work positively impacts communities and society over time.

69) An individual may find his or her engagement level changing as a result of CSR because:

a) such initiatives tend to occupy a large amount of time, which would have otherwise been spent on company-related activities

b) such initiatives tend to draw individuals in, to the detriment of the firm they work for

c) it may cause the individual to learn new skills and expand existing ones in positive ways

d) these types of initiatives generally require slowly diminishing levels of innovation

Title: Chapter 12 Test Bank, Question 69

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: An individual may find his or her engagement level changing as a result of corporate social responsibility because it may cause the individual to learn new skills and expand existing ones in positive ways.

70) A potential side benefit associated with a firm allowing its employees to engage in CSR activities is:

a) the feelings of happiness and satisfaction that are often evoked from positive changes these employees are associated with

b) that more highly motivated employees will work harder and increase firm profitability

c) that firms granting this type of leave do not have to pay employees for such days

d) that it may encourage the employees to explore different opportunities and lines of work

Title: Chapter 12 Test Bank, Question 70

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: A potential side benefit associated with a firm allowing its employees to engage in corporate social responsibility activities is the feelings of happiness and satisfaction that are often evoked from positive changes these employees are associated with.

71) A commonly acknowledged benefit of CSR activities is enhancements to relationships because

a) such activities tend to bring employees and management of a firm closer together

b) such activities tend to make customer–vendor relationships smoother and easier

c) employees may form new relationships and bonds with others with whom they work on philanthropic activities

d) such activities tend to help employees learn new and innovative skill sets

Title: Chapter 12 Test Bank, Question 71

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: A commonly acknowledged benefit of corporate social responsibility activities is enhancements to relationships because employees may form new relationships and bonds with others with whom they work on philanthropic activities.

Question type: Short Answer

72) Explain in your own words the importance of corporate social responsibility (CSR) for a firm. Why should a firm take this responsibility seriously and be willing to commit resources to it?

Title: Chapter 12 Test Bank, Question 72

Difficulty: Hard

Bloomcode: Evaluation

Min: 5

AACSB: Ethics

Learning Objective: LO 12.1 Define what constitutes corporate social responsibility and explain how it fits within a business’s other responsibilities.

Section Reference: Sec: 12.1 Corporate Social Responsibility (CSR)

Solution: Examples of why a firm should take corporate social responsibility seriously could be improved reputation in the marketplace and among its customers, the importance of “doing the right thing,” and ensuring that the firm fulfills its responsibility to the community and society in which it is based.

73) Explain and discuss the instrumental view of stakeholder management. Provide an example of a firm that has abided by this philosophy.

Title: Chapter 12 Test Bank, Question 73

Difficulty: Hard

Bloomcode: Evaluation

Min: 5

AACSB: Ethics

Learning Objective: LO 12.2 Identify how corporate social responsibility (CSR) creates value for different stakeholder groups.

Section Reference: Sec: 12.2 Corporate Social Responsibility and Business Performance

Solution: The instrumental view of stakeholder management argues that firms should do well by doing good. Student examples of firms will vary.

74) Explain and discuss the different types of social entrepreneurship. Why is capacity building important for social entrepreneurs?

Title: Chapter 12 Test Bank, Question 74

Difficulty: Hard

Bloomcode: Evaluation

Min: 5

AACSB: Ethics

Learning Objective: LO 12.3 Explain how social entrepreneurs affect corporations’ social responsibility.

Section Reference: Sec: 12.3 Social Entrepreneurship and Innovation

Solution: The different types of social entrepreneurship include capacity building, selling products or services, and driving institutional change. Capacity building is important for entrepreneurs because the transfer of knowledge, skills, and abilities from one organization to another is key to helping firms and other entrepreneurs build their own businesses and ventures.

75) Discuss the links between CSR and a PERMA life. Pick one of the links discussed in the chapter and elaborate, providing examples from firms that demonstrate one or more of the links described in the chapter text.

Title: Chapter 12 Test Bank, Question 75

Difficulty: Hard

Bloomcode: Evaluation

Min: 5

AACSB: Ethics

Learning Objective: LO 12.4 Describe how corporate social responsibility fits within a meaningful and PERMA life.

Section Reference: Sec: 12.4 Corporate Social Responsibility (CSR) and a PERMA Life

Solution: The links between corporate social responsibility and a PERMA life are 1. positive emotion, 2. engagement, 3. relationships, 4. meaning, and 5. achievement.