Corporate Social Responsibility
Chapter Exam Questions
Course Introduction
Corporate Social Responsibility (CSR) explores the ethical, social, and environmental duties that businesses have to a broad range of stakeholders including employees, customers, communities, and the environment. This course examines the evolution of CSR concepts, frameworks for integrating responsible practices into business strategy, and the impact of global standards and regulations. Students will analyze case studies to assess the effectiveness of CSR initiatives and learn how organizations address sustainability, ethical decision-making, stakeholder engagement, and transparency. The course aims to equip students with the knowledge and tools needed to evaluate and implement CSR practices that contribute to long-term organizational success and societal well-being.
Recommended Textbook
Understanding Business Ethics 3rd Edition by Peter A. Stanwick
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Chapter 1: The Foundation of Ethical Thought
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Q1) All of the following are deontological frameworks except A) Ethical egoism
B) Existentialism
C) Contractarianism
D) Kant's Ethics
Answer: A
Q2) Existentialism is represented in fidelity and self-improvement, and contractarianism is represented in fidelity and justice.
A)True
B)False
Answer: True
Q3) ___________ can be defined as the trait of an individual who has obsessive and compulsive continuous thoughts of sexual desire.
A) Pride
B) Envy
C) Lust
D) Sloth
Answer: C
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3
Chapter 2: The Evolving Complexities of Business Ethics
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Q1) The illusion of objectivity occurs when a decision maker believes that his or her decisions are free of biases.
A)True
B)False
Answer: True
Q2) Ninety five percent of U2's revenue, which includes concert ticket sales and record sales, is earned outside Ireland.
A)True
B)False
Answer: True
Q3) Based on the findings of the 2011 National Business Ethics Survey, what is the key motivator for Baby Boomers?
A) Salary
B) Security
C) Maintain a full personal life
D) Desire for a work life balance
Answer: A
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Chapter 3: Stakeholders and Corporate Social Responsibility
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Q1) _______________ reporting is a concept that is receiving momentum as a way of satisfying the reporting and disclosure needs of various stakeholder groups, although many companies refer to the concept as an accountability report.
A) Double-bottom line
B) Double-top line
C) Triple-top line
D) Triple-bottom line
Answer: D
Q2) A ____________ is a new type of corporation that addresses issues related to financial, social, and environmental objectives.
A) Customer corporation
B) Stakeholder corporation
C) Benefit corporation
D) Management corporation
Answer: C
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Page 5
Chapter 4: Ethics and Financial Reporting
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Q1) ______________ financing creates separate legal entities from the parent company. Since these entities are not wholly owned subsidiaries they can be hidden from the investors by keeping the entities off the financial statements.
A) Off-balance sheet
B) Off-shore
C) Cookie jar
D) Virtual
Q2) A good example of a company that violated the use of off-balance sheet arrangements is ______________.
A) ExxonMobil
B) Enron
C) Microsoft
D) Google
Q3) ______________ is when an individual is selective pertaining to the information given to him or her when a decision needs to be made.
A) The halo effect
B) Selective perception
C) Plausible deniability
D) Escalation of commitment
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Page 6
Chapter 5: Ethical Leadership and Corporate Governance
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Q1) A weak moral person and weak moral manager would generate a reputation of _____________ leadership.
A) Unethical
B) Ethical
C) Hypocritical
D) Inconsistent
Q2) Research has found that there is a direct relationship between CEO compensation and the financial performance of the firm.
A)True
B)False
Q3) An intervening board allows the CEO and the top management team to take all the major decisions.
A)True
B)False
Q4) Board members can be classified as either _______________.
A) Related or unrelated
B) Inside or outside
C) Tactical or operational
D) Financial or nonfinancial
Q5) In a short essay, discuss corporate governance.
Page 7
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Chapter 6: Strategic Planning, Corporate Culture, and Corporate Compliance
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Q1) In the Snyder model that develops a framework to address ethical crises, ________________ crises occur within the organization but are rare and unpredictable.
A) Internal-normal
B) External-normal
C) Internal-abnormal
D) External-abnormal
Q2) In the Snyder model that develops a framework to address ethical crises, which of the following is not an external abnormal factor?
A) Terrorism
B) Strike
C) Natural disaster
D) Reputation issues
Q3) The OECD anticorruption agreement, called the Convention on Combating the Bribery of Foreign Public Officials, was agreed in 2007.
A)True
B)False
Q4) In a short essay, list and discuss the three levels on which corporate culture exists simultaneously within a firm.
Page 8
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Chapter 7: Decision Making and Human Resource Issues
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Q1) ______________ is based on the background, family support system, and life experiences a person has before the moral decision is made.
A) Resultant luck
B) Circumstantial luck
C) Constitutive luck
D) Virtual luck
Q2) Actions which the decision maker cannot change are called
A) Rigid actions
B) Inflexible actions
C) Nondiscretionary actions
D) Discretionary actions
Q3) Which is not a trait of the perfect leader according to Machiavelli?
A) Ability to manipulate
B) Bold in action
C) Stealthy when needed
D) Negotiating in an ethical manner
Q4) In a short essay, compare and contrast the roles of power and influence in ethical decisions.
Q5) In a short essay, list and discuss the six stages in the moral development of an individual.
9
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Chapter 8: Ethics and the Environment
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Q1) An environmental compliance system does not include one of the following areas:
A) publish an annual environmental report
B) provide employees with environmental trainng
C) provide financial incentives for good environmental practice
D) ensure that the same environmental standards are consistent globally
Q2) The assumption that as climate change continues to impact the world, the vulnerability of suppliers and the raw materials needed for manufacturing will decrease is called _____________.
A) regulatory risk
B) supply chain risk
C) physical
D) litigation risk
Q3) Employee led environmental innovation strategies do not add value to the firm's environmental credibility
A)True
B)False
Q4) Friends of the Earth is the oldest and largest environmental group in the United States.
A)True
B)False
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Chapter 9: Ethics and Information Technology
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Q1) Stakeholder analysis treats all stakeholders equally in the critical analysis of information technology management issues.
A)True
B)False
Q2) In direct response to the terrorist attacks on September 11, 2001, President George W. Bush signed into law the ________________.
A) Robinson-Patman Act
B) USA PATRIOT Act
C) Sarbanes-Oxley Act
D) Sherman Antitrust Act
Q3) In a short essay, explain the USA PATRIOT Act.
Q4) Business analytics is a key tool to analyze big data so that firms can customize their strategic focus on customers. What is not a big risk in data analysis?
A) Loss of anonymity
B) Data patterns versus reality
C) Discrimination-based customer segmentation
D) Growth in market share and sales
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Chapter 10: Ethics and Information Technology
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Q1) During the 2002 hurricane in Baton Rouge, Louisiana, what was the opportunistic price of the flashlight?
A) $4.97
B) $7.99
C) $11.98
D) $14.97
Q2) Cereals with high sugar and low nutritional values comprised ____% of the food advertising viewed by children in 2007.
A) 5%
B) 17%
C) 55%
D) 92.3%
Q3) Relationship marketing focuses on the relationship between the customer and the firm from a commitment perspective.
A)True
B)False
Q4) The Tobacco Plain Packaging Act was passed by the United States in 2011.
A)True
B)False
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Chapter 11: Ethical Issues in the Developing World
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Q1) Microfinance is the process in which small loans are given to entrepreneurial individuals in developing countries in order to develop income which will benefit the individual as well as the local village through poverty reduction.
A)True
B)False
Q2) All of the following are mentioned in the text as characteristics of successful social entrepreneurs EXCEPT:
A) Trying to following the constraints of ideology or discipline
B) Focusing on how the organization's mission will be used to create social value
C) Using innovation, resourcefulness and opportunity to determine what practical solutions are viable to solve the social problem
D) Recognizing everyone has the ability to contribute to the economic and social development of the organization
Q3) Strategies to be used to address the needs of the customers at the base of the pyramid depend on the income level of the customers.
A)True
B)False
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Chapter 12: Establishing a Code of Ethics and Ethical Guidelines
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Q1) In a short essay, list six components of a code of conduct for financial institutions according to the publication "Corporate Codes of Conduct: Guidance to Implementing an Effective Ethics Program."
Q2) W. Edwards Deming set out 14 points in his definition of quality in the firm. Many of these points are related to ethical concepts. All of the following form part of the definition except ______.
A) Drive out fear
B) Eliminate quotas
C) Maintain staff barriers
D) Institute training
Q3) An effective code of ethics is formed of a standard set of recommendations that includes both advice and internal structures to help employees implement the code of ethics.
A)True
B)False
Q4) The annual report of the firm is an element of the Living Code of Ethics.
A)True
B)False
Q5) In a short essay, describe the main elements of a Living Code of Ethics.
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Chapter 13: Evaluating Corporate Ethics
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Q1) The goals of an ethics training program do not include
A) Providing the necessary tools need by employees to understand the ethical decision-making process
B) Explaining the procedure used when employees violate ethical standards
C) Giving pay rises to all employees
D) Creating a strong ethical work climate
Q2) Internal communication ethical tools such as an ethics hotline would be considered too impersonal and not appropriate for a(n) ______________ based culture.
A) Individualism
B) Collectivism
C) High uncertainty avoidance
D) Low uncertainty avoidance
Q3) As multinational corporations approach the issue of ethics training programs, the level of complexity increases due to the intricacies of doing business in a global environment.
A)True
B)False
Q4) In a short essay, describe the concept of ethical auditing.
Q5) In a short essay, discuss the role of ethics officers.
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