Test Bank Docx Ch.14 Strategy and Society

Package Title: Chapter 14, Testbank

Course Title: Dyer, SM 2e

Chapter Number: 14

Question type: Multiple Choice

1) Peter, the founder of MilkWorld Inc., started his dairy company with the intent of creating a formidable supply-chain link and providing a lucrative source of income for the local dairy farmers in his country. Peter is most likely to be considered a(n) _________.

a) venture capitalist

b) investment manager

c) social entrepreneur

d) angel investor

Difficulty: Hard

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Application

Standard 1 : AACSB || Analytic

2) James started a restaurant chain, Foodizza Inc., and specifically hired unemployed youth from the ghettos in the vicinity of his restaurants, thereby providing them with means of livelihood. James is most likely to be considered a(n) _________.

a) investment manager

b) angel investor

c) venture capitalist

d) social entrepreneur

Difficulty: Hard

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Application

Standard 1 : AACSB || Analytic

3) Jason, a visually impaired employee of Melony Inc., believes that his workplace has given him independence and self-confidence, thereby increasing his morale. Which of the following has been exemplified by Melony in this scenario?

a) Legal responsibility

b) Social value

c) Superordinate goal

d) Capacity building

Difficulty: Hard

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Application

Standard 1 : AACSB || Analytic

4) Stacy starts a day care center and hires unemployed mothers from poor economic backgrounds as babysitters. In this scenario, Stacy’s initiative is most likely to be creating _________.

a) institutional change

b) shared values

c) economic responsibility

d) joint ventures

Difficulty: Hard

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Application

Standard 1 : AACSB || Analytic

5) Which of the following social responsibilities implies that a firm has an obligation to give back in some way and contribute to strengthening the fabric of its local communities, as well as the larger society?

a) Legal responsibility

b) Philanthropic responsibility

c) Ethical responsibility

d) Economic responsibility

Difficulty: Easy

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

6) Which of the following statements is true of shared values?

a) Profit and social welfare are substitutes that managers must trade off to create shared values.

b) Shared values entail transferring the ability to effectively perform tasks from one organization to another.

c) Shared values focus on the improvement of both the economic and social welfare of a firm.

d) Shared values focus solely on the income and wealth outcomes of an organization.

Difficulty: Medium

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

7) Gama Inc., a cell phone manufacturer, procures lithium batteries from Zipcharge Inc. These batteries are used in the smart phones manufactured by Gama. In the context of the value net model, Gama is most likely to be considered a _________.

a) supplier

b) competitor

c) principal

d) customer

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Application

Standard 1 : AACSB || Analytic

8) John purchases a laptop from an electronics store for his own use without any intention to resell it. In the context of the value net model, John’s purchase intention reflects that of a _________.

a) complementor

b) customer

c) strategic supplier

d) competitor

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Application

Standard 1 : AACSB || Analytic

9) Tim buys a new car to gift his son for his birthday. In the context of the value net model, Tim is most likely to be considered a ________.

a) competitor

b) customer

c) strategic supplier

d) complementor

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Application

Standard 1 : AACSB || Analytic

10) Emily works as a consultant in a firm that provides consulting and business solutions to global organizations to enhance their productivity and drive corporate performance and value. In the context of the value net model, Emily’s firm is most likely to be considered a _________.

a) competitor

b) principal investor

c) supplier

d) customer

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Application

Standard 1 : AACSB || Analytic

11) Inde Air Inc., a major airline, launches promotional schemes at regular intervals to increase its market share and counter the schemes launched by another airline, FlySky Inc. In the context of the value net model, which of the following best represents the relationship between Inde Air and FlySky?

a) Suppliers

b) Competitors

c) Complementors

d) Principal investors

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Application

Standard 1 : AACSB || Analytic

12) JustHog Inc. and FoodLite Inc. are major fast food chains. They attract a larger share of the fast food market due to their quality, prompt service, and affordability. Due to the recent marketing initiatives of JustHog, FoodLite experienced a drop in its market share. In the context of the value net model, which of the following best represents the relationship between JustHog and FoodLite?

a) Competitors

b) Customers

c) Suppliers

d) Complementors

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Application

Standard 1 : AACSB || Analytic

13) Foodoid Inc., a fast food restaurant, enters into a tie-up with SimplyBake Inc., a bakery chain, to procure croissants, garlic loafs, and other essential food ingredients. In the context of the value net model, SimplyBake assumes the role of a(n) _________.

a) principal investor

b) competitor

c) complementor

d) franchisor

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Application

Standard 1 : AACSB || Analytic

14) Which of the following statements is true of the value net model?

a) It describes how an organization interacts with others in its environment to create value.

b) It treats a particular stakeholder as a “single-role player” to facilitate effective decision making.

c) It typically focuses on large-scale social problems that have proven difficult for governments or other social actors to solve.

d) It focuses on improving the value of each of the stakeholders in a value chain by assigning them rigid goals and tasks.

Difficulty: Medium

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

15) In the context of the value net model, an individual or organization that makes customers value an organization’s output more because of its product or service is known as a(n) _________.

a) competitor

b) customer

c) supplier

d) complementor

Difficulty: Easy

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

16) Rended Inc., a publishing house, launches a unique initiative that involves educating children from poor economic backgrounds. For every product that a customer purchases, Rended would contribute $10 toward this cause. Which of the following best exemplifies Rended’s initiative?

a) Incremental innovation

b) Corporate social responsibility

c) Competition response strategy

d) Strategic alliance

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

17) Ruth works for an electronics manufacturing company, Zeeway Inc., whose employees volunteer over 1 million hours per year on initiatives that include environmental conservation, economic empowerment, and literacy programs. Which of the following best represents Zeeway’s initiative?

a) Incremental innovation

b) Competition response strategy

c) Corporate social responsibility

d) Strategic alliance

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

18) Softlink Inc., a global computer software company, is involved in unique development initiatives in low-income countries. As part of this program, it developed model villages in a low-income country to ensure self-reliance in healthcare, infrastructure, and employment. In this scenario, which of the following best exemplifies Softlink’s initiative?

a) Corporate social responsibility

b) Competitor response strategy

c) Strategic alliance

d) Incremental innovation

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

19) George Inc., a construction firm, bags a multibillion dollar deal from the federal government for the purpose of infrastructural development. This deal resulted in a sustainable stakeholder advantage and an increase in the firm’s annual turnover. Which of the following best describes the social obligation exemplified by George in this scenario?

a) Philanthropic responsibilities

b) Ethical responsibilities

c) Economic responsibilities

d) Legal responsibilities

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

20) Linz Inc., a global automobile manufacturing company, exports its automobiles to distributors in seven countries. The manufacturer incurs expenses of $1,000 per car as export duties and diligently pays its duties within the stipulated time frame. In this scenario, Linz is seen fulfilling its _________.

a) philanthropic responsibility

b) legal responsibility

c) shared responsibility

d) ethical responsibility

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

21) Which of the following statements is true of the fundamental social responsibilities of a business?

a) In order to survive, a firm must primarily focus on fulfilling its ethical responsibility over other responsibilities.

b) In order to thrive and grow, a firm must prioritize its philanthropic responsibility above all other responsibilities.

c) Firms must fill their ethical responsibilities only in limited and specific ways that conform to the legal statutes in that country.

d) Philanthropic responsibility of a firm only appears as an obligation if the firm is viewed as an active member and contributing citizen of the community in which it operates.

Difficulty: Medium

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

22) Which of the following statements best defines philanthropy?

a) It involves creating new social systems to create large-scale change.

b) It involves acting in a way that promotes the good or well-being of others in the form of a gift.

c) It involves creating something by combining diverse and different elements into a new setting.

d) It involves transferring the ability to effectively perform tasks from one organization to another.

Difficulty: Easy

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

23) Walter Inc., an engineering firm, follows stringent rules related to safety such as wearing helmets, sporting safety goggles, and dust masks while working on-site. In this scenario, which of the following responsibilities is fulfilled by Walter?

a) Hybrid responsibility

b) Ethical responsibility

c) Philanthropic responsibility

d) Economic responsibility

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

24) John works for Roth Inc., a mining firm, which strictly adheres to the employment rules as prescribed by the labor commission. The firm employs individuals only above the age of 23 for occupations that could pose safety hazards. In this scenario, which of the following social responsibilities is fulfilled by Roth?

a) Philanthropic responsibility

b) Economic responsibility

c) Legal responsibility

d) Superordinate responsibility

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

25) Kevin works for a consulting firm that strictly follows a 40 hours-per-week work schedule as prescribed in the employment terms laid out by the labor tribunal. In this scenario, Kevin’s firm is diligently fulfilling its _________.

a) philanthropic responsibilities

b) hybrid responsibilities

c) legal responsibilities

d) superordinate responsibilities

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

26) Jacob, an automobile engineer, works at an automobile manufacturing firm that receives an order for 3,000 cars from a major client. This contract resulted in a high turnover and bonuses for its employees. Jacob’s firm is fulfilling its _________.

a) economic responsibility

b) philanthropic responsibility

c) legal responsibility

d) superordinate responsibility

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

27) Katie works for an electronics manufacturing company that contributes 10% of employees’ performance-linked bonuses toward the education of children with autism. Which of the following social responsibilities is best reflected in this scenario?

a) Economic responsibility

b) Legal responsibility

c) Hybrid responsibility

d) Philanthropic responsibility

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

28) Tracy, an employee of an online retailing firm, is the member of the employee engagement committee in her firm and is entrusted with the task of organizing a cultural event. The proceeds of this cultural event will go toward providing free and affordable healthcare to the backward sections of the community. In this scenario, Tracy’s firm is fulfilling its ________.

a) economic responsibilities

b) philanthropic responsibilities

c) institutional responsibilities

d) legal responsibilities

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

29) Elvis works as a dentist at Prince Inc., a premier dentist clinic. The clinic conducts free checkups every month in remote places of the country to create more awareness on good dental hygiene. Which of the following social responsibilities is best reflected in this scenario?

a) Economic responsibilities

b) Philanthropic responsibilities

c) Institutional responsibilities

d) Legal responsibilities

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

30) Which of the following examples best represent an in-kind donation?

a) Amanda, a social activist, donates 1/10^th of her annual income amount to a retirement home in her locality.

b) Stalin, a sales manager at a global consumer electronics firm, contributes $500 in cash toward the medical expenditure of his ailing colleague.

c) Nerden Inc., a food-processing unit, donates relief materials to victims of an earthquake in its country of operation.

d) Niron Inc., an online retailer, contributes 10% of its annual turnover to adopt model villages.

Difficulty: Hard

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Application

Standard 1 : AACSB || Analytic

31) Which of the following statements is true of institutional change?

a) Institutional change is most effective in organizations pursuing multiple goals of equal importance.

b) Institutional change makes customers value an organization’s output more because of its product or service.

c) Institutional change entails transferring the ability to effectively perform tasks from one organization to another.

d) Institutional change agents typically focus on large-scale social problems that have proven difficult for governments or other social actors to solve.

Difficulty: Medium

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

32) Which of the following statements best defines a social engineer?

a) A social entrepreneur who builds something that did not exist before

b) A social entrepreneur who designs and creates new social systems to create large-scale change

c) A social entrepreneur who creates something new through the combination of diverse and different elements

d) A social entrepreneur who focuses primarily on capacity building and products or services

Difficulty: Easy

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

33) Which of the following describes those living in conditions of extreme poverty around the world, usually defined as less than $2 per day?

a) Line of sight

b) Value net

c) Backward integration

d) Base of the pyramid

Difficulty: Easy

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

34) Which of the following statements is true of the skills of social entrepreneurs?

a) A social constructor agitates for change and focuses on designing more effective social systems.

b) A social engineer focuses primarily on developing new products or services with the intent of building capacity.

c) A social bricoleur is of primary importance in organizations focusing on capacity building.

d) A social constructor combines existing resources for value creation with the intent of institutional change.

Difficulty: Medium

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

35) Dominic works as a trainer in a content analyst firm, Revel Inc., which specializes in corporate training programs. He trains employees on the various skill sets required to perform their job effectively thereby resulting in the transfer of knowledge and skills. This is an example of _________.

a) incremental innovation

b) corporate social responsibility

c) institutional change

d) capacity building

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Application

Standard 1 : AACSB || Analytic

36) Robin, a social entrepreneur, founded the Center of Business Excellence, a not-profit organization, and Fydil Investments Inc., a profit-oriented firm. Robin’s motive is to provide a focused solution to poverty by helping the poor with a desire to succeed at business. His knowledge and expertise gathered over the years from working on different assignments ensured sustainability of the new ventures. Which of the following types of entrepreneurship corresponds to the skill sets of Robin?

a) Sustainable stakeholder

b) Social bricoleur

c) Philanthropist

d) Competitor

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Application

Standard 1 : AACSB || Analytic

37) Erina, an investment banker, quit her job to start her own financial institution to help the poor in her community who were trapped in a vicious cycle of debt to moneylenders. She began following a strategy that contradicted prevailing practice and provided small loans to poor women. Erina saw the potential to change long-held beliefs about gender imbalances through her social initiative. In this scenario, Erina best represents a _________.

a) social bricoleur

b) social complementor

c) social constructionist

d) social competitor

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Application

Standard 1 : AACSB || Analytic

38) Jude works for a food-processing unit that sells processed food at rates as low as 25% of its selling price to orphanages, old-age homes, missionaries, and charitable institutions. Jude’s organization can be classified as a(n) _________.

a) incremental organization

b) transactional organization

c) hybrid organization

d) traditional organization

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Application

Standard 1 : AACSB || Analytic

39) Nick and Juliet work in an online retailing firm in Chicago. Nick believes that a company’s primary social responsibility is economic in nature while Juliet believes that its primary responsibility is to contribute to the enhancement of the community in which it operates. Which of the following statements, if true, strengthens Nick’s belief?

a) To thrive and grow, a firm must meet its philanthropic responsibilities.

b) Economic responsibility can be viewed as an obligation only if we view the firm as a contributing citizen to the communities in which it operates.

c) Unless a firm produces profitable products and becomes a sustainable contributor in society, all its other responsibilities fade away.

d) To survive a firm must meet its legal and ethical obligations before fulfilling the other obligations.

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Analysis

Standard 1 : AACSB || Analytic

40) Jack and Michael work as strategic consultants in a consulting firm in London. Jack is of the opinion that organizations focused on institutional change are most likely to be led by social bricoleurs, while Michael believes that it is a social engineer who adds value to organizations focused on capacity building. Which of the following statements, if true, would weaken Jack’s opinion?

a) Organizations focused on capacity building need a leader who is a social constructionist who can successfully combine diverse and different elements to create something new.

b) Social entrepreneurial organizations working to create larger, institutional changes succeed when led by a social engineer.

c) Social entrepreneurship that focuses on bringing new, social-value products or services to markets require the skills of a social constructionist.

d) Social entrepreneurship that focuses on institutional changes and innovative strategies which did not exist before require the skills of a social engineer.

Difficulty: Hard

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Analysis

Standard 1 : AACSB || Analytic

41) Which of the following is an accurate definition of a social entrepreneur?

a) An individual or group that purchases, or receives, the outputs of an organization

b) An individual or organization that makes customers value an organization’s output less because it offers its own product or service

c) An individual or organization that makes customers value an organization’s output more because of its product or service

d) An individual or organization that uses free market principles and creates for-profit businesses with the goal of creating value

Difficulty: Medium

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

42) What is meant by social value?

a) It refers to the simultaneous creation of economic value for a business and social value for the larger community.

b) It refers to improvements in the noneconomic elements of individual’s lives and community well-being.

c) It refers to the creation of income, wealth, and other economic outcomes for individuals and organizations.

d) It refers to the ability of an organization to consistently gather resources from key stakeholders.

Difficulty: Medium

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

43) Which of the following is true of social value?

a) Social value may be a source of strategic advantage.

b) Creating social value may decrease revenue through decreased customer loyalty.

c) Creating social value may be a way to spend more on costs.

d) Social value creation is critical for a business because its motive is to make a profit.

Difficulty: Medium

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

44) In terms of the value net, which of the following statements is true of complementors?

a) They are individuals or groups that purchase, or receive, the outputs of an organization.

b) They are individuals, groups, or organizations that provide important inputs for an organization.

c) They are individuals or organizations that make customers value an organization’s output more because of its product or service.

d) They are activities of companies designed to further some social objective and that lie beyond the direct economic interests of the organization.

Difficulty: Medium

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

45) In the context of the value net, identify the definition of competitors.

a) Individuals or organizations that make customers value an organization’s output less because it offers its own product or service

b) Individuals, groups, or organizations that provide important inputs for an organization

c) People who promote the good or well-being of others

d) Social entrepreneurs who creates something new through the combination of diverse and different elements

Difficulty: Medium

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

46) Corporate social responsibility refers to:

a) a model of value creation that describes how an organization interacts with others in its environment to create value.

b) the use of innovative organizations and business models to create social value.

c) activities of companies designed to further some social objective and that lie beyond the direct economic interests of the organization.

d) the ability of an organization to consistently gather resources from, or provide services to, key stakeholders such as donors, volunteers, students, or clients.

Difficulty: Medium

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

47) In terms of a firm’s social obligations, which of the following is true of philanthropic responsibility?

a) It refers to a firm’s obligation to abide by the unwritten ethical standards, norms, and values of the communities in which it operates.

b) It refers to a firm’s obligation to generate economic profits.

c) It refers to a firm’s obligation to obey the written and codified laws of the countries in which it operates.

d) It refers to a firm’s obligation to contribute to the enhancement of the communities in which it operates.

Difficulty: Medium

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

48) Which of the following is true of the Global Reporting Initiative?

a) It was founded in 2000 in California by a group of engineers.

b) It provides firms and stakeholders with an objective way to assess a firm’s performance.

c) It does not hold firms accountable for their labor practices and compliance with human rights standards and goals.

d) It ignores dimensions such as energy use, biodiversity protection, and levels of emissions and waste.

Difficulty: Medium

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

49) In-kind donation refers to:

a) changing the way people and groups think about problems working to create or change social institutions.

b) philanthropy accomplished as one organization transfers product, employee time, or other services to a recipient group.

c) the use of innovative organizations and business models to create social value.

d) individuals or groups that purchase, or receive, the outputs of an organization.

Difficulty: Medium

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

50) Social entrepreneurship refers to ________.

a) changing the way people and groups think about problems and they work to create or change social institutions

b) philanthropy accomplished as one organization transfers product, employee time, or other services to a recipient group

c) the use of innovative organizations and business models to create social value

d) individuals or groups that purchase, or receive, the outputs of an organization

Difficulty: Medium

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

51) In terms of social entrepreneurship, which of the following is true of the role of social engineers?

a) They build something that did not exist before.

b) They develop new models, products, or services.

c) They agitate for change and design more effective social systems.

d) They combine existing resources to focus on value creation.

Difficulty: Medium

Section Reference 1: Social Entrepreneurship

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

52) Which of the following is true of social constructionists?

a) They are required by organizations that focus on capacity building.

b) They can create something by combining diverse and different elements into a new setting.

c) They design and then create more effective social systems to create large scale change.

d) They build something new and innovative that did not exist before.

Difficulty: Medium

Section Reference 1: Social Entrepreneurship

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

53) The base of the pyramid _________.

a) is the use of innovative organizations and business models to create social value

b) refers to the situation when entrepreneurs strive to change the way people think

c) refers to the transfer of skills and abilities from one organization to another

d) describes those living in conditions of extreme poverty around the world

Difficulty: Medium

Section Reference 1: Social Entrepreneurship

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

54) Which of the following statements is true of the base of the pyramid environments?

a) They feature harsh climates including excessive heat.

b) Business disputes are resolved in courts.

c) The nearly-absent corruption levels encourage progress.

d) Business registration is usually done promptly.

Difficulty: Medium

Section Reference 1: Social Entrepreneurship

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

55) Identify a true statement about a hybrid organization.

a) It is an organization pursuing more than a single goal, and each goal has equal importance.

b) It is an organization that makes customers value its output less because it offers its own product or service.

c) It is an organization that makes customers value its output more because of its product or service.

d) It is an organization designed to further some social objective that lies beyond the direct economic interests of the organization.

Difficulty: Medium

Section Reference 1: Social Entrepreneurship

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

Question type: Text Entry

56) ___ refers to the simultaneous creation of economic value and social value for the larger community in which a business operates.

Difficulty: Easy

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

57) The ability of an organization to consistently gather resources from, or provide services to, key stakeholders such as donors, volunteers, students, or clients is referred to as ___.

Difficulty: Easy

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

58) ___ entails transferring the ability to effectively perform tasks from one organization to another.

Difficulty: Easy

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

59) ___ refers to a social entrepreneur who creates something new through the combination of diverse and different elements.

Difficulty: Easy

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

60) ___ means that entrepreneurs strive to change the way people and groups think about problems, and they work to create or change social institutions—from government policies to social values and norms.

Difficulty: Easy

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Knowledge

Standard 1 : AACSB || Analytic

Question type: Essay

61) Discuss the role of a social entrepreneur in the creation of shared value.

Difficulty: Medium

Section Reference 1: Strategy and Social-Value Organizations

Learning Objective 1: Explain the difference between economic and social value.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

Solution: Social entrepreneurs use free market principles and create for-profit businesses with the goal of creating shared value, economic value for the business and social value for the larger community in which the business operates. Economic value focuses on the creation of income, wealth, and other economic outcomes for individuals and organizations. Social value, by contrast, concerns improvements in the noneconomic elements of individual’s lives and community well-being. Social value includes minimizing negative conditions such as blight, oppression, pollution, and violence, as well as enabling positive outcomes such as education and literacy, mental and physical health, political voice and inclusion, and recreation and opportunities for self-expression.

62) Discuss the four roles played by stakeholders in the value net.

Difficulty: Medium

Section Reference 1: The Tools of Strategy and the Creation of Social Value

Learning Objective 1: Use the value net to identify a social-value organization’s key stakeholders and use that model to discuss opportunities for and threats to value creation.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

Solution: Each stakeholder plays one, or more, of four roles in the value net. Customers purchase, or receive, the outputs of the organization. Suppliers provide important inputs for the organization. A player is a competitor if customers value the organization’s output less when the competitive product is available. A cross-town university with a strong business school acts as a competitor because recruiters may perceive that it provides a better education and those recruiters devalue your degree. Conversely, that university plays the role of complementor when customers (such as recruiters) value an organization’s output more when that product is available.

63) Discuss the four fundamental social responsibilities of a business.

Difficulty: Medium

Section Reference 1: Strategy and Social Change

Learning Objective 1: Explain how economic-value organizations can create value through activities known as corporate social responsibility.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

Solution: First among the firm’s fundamental social responsibilities of business is a firm’s economic responsibility. Unless the firm produces profitable products and becomes a sustainable and ongoing contributor in society, all its other responsibilities fade away. To survive, a firm must meet its economic obligations, but to thrive and grow, the firm must meet both its legal and ethical obligations. Legal responsibility means that managers and all those who make up the firm obey the written and codified laws of the countries in which they operate. The obligation of ethical responsibility binds managers and others to obey the unwritten but powerful ethical standards, norms, and values that underlie social life.


The fourth obligation of the firm only appears as an obligation if we view the firm as an active member and contributing citizen of the communities in which it operates. Philanthropic responsibility implies that a firm has an obligation to give back in some way and contribute to strengthening the fabric of its local communities, as well as the larger society.

64) Differentiate between institutional change and capacity building.

Difficulty: Medium

Section Reference 1: Social Entrepreneurship

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

Solution: capacity building entails transferring the ability to effectively perform tasks from one organization to another. Fundacion Paraguaya builds capacity in its students through the transfer of knowledge and skill through the San Francisco experience. The final type of social entrepreneurship is institutional change, which means that entrepreneurs strive to change the way people and groups think about problems, and they work to create or change social institutions—from government policies to social values and norms.

65) Differentiate between a social bricoleur and a social engineer.

Difficulty: Medium

Section Reference 1: Social Entrepreneurship

Learning Objective 1: Categorize the major focus areas of social entrepreneurship and the challenges unique to each focus.

Bloomcode: Comprehension

Standard 1 : AACSB || Analytic

Solution: Organizations focused on capacity building need a leader who is a social bricoleur, one who can successfully bricolage, a French word that means creating something by combining diverse and different elements, into a new setting. Social entrepreneurial organizations working to create larger, institutional changes succeed when led by a social engineer. Engineers design and then create more effective social systems to create large scale change.