Corporate Social Responsibility
Pre-Test Questions
Course Introduction
Corporate Social Responsibility (CSR) explores the evolving role of businesses in addressing ethical, social, and environmental challenges beyond profit-making. This course examines the theoretical foundations of CSR, its historical development, and how organizations integrate responsible practices into their operations and strategies. Topics include stakeholder management, sustainability reporting, ethical decision-making, corporate governance, and the impact of global standards and regulations. Through case studies and practical examples, students will analyze the benefits, challenges, and real-world implications of social responsibility for corporations and society.
Recommended Textbook
Business and Society Ethics Sustainability and Stakeholder Management 10th Edition by Carroll
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Chapter 1: The Business and Society Relationship
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Q1) Business interacts with only a limited number of stakeholder groups.
A)True
B)False
Answer: False
Q2) An internal stakeholder is a person or group who A) exist outside the boundaries of the firm. B) is located in the same country in which the firm in located. C) is defined as an "insider" in laws regulating financial markets. D) is "inside" the company, such as employees and owners.
Answer: D
Q3) Describe what the authors mean by the managerial approach taken in the textbook.
Answer: Business managers are judged almost exclusively on their ability to accomplish the goals of the organization. For this reason, managers excel at the practical--they are accustomed to dealing with situations in rational and systematic ways. This approach carries over into ethical and social matters as well. In addition, managers must focus on both short-term and long-term implications of their decisions and actions. The textbook will likewise approach issues of business and society from this perspective.
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Chapter 2: Corporate Social Responsibility, Citizenship, and Sustainability
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Sample Questions
Q1) In the 1890s, the Robber Barons began to use their personal wealth and the wealth accumulated by their corporations to enhance the social good. Their philanthropic activities were encouraged, in part, because public opinion was demanding that the government do something to limit their power. Is this type of activity still occurring in the United States? Why or why not?
Answer: Philanthropic activity to help ward off government intervention is still a central reason business uses to justify the corporate social responsibility concept. In fact, this is a central argument in support of CSR today.
Q2) Carroll's Corporate Social Performance Model helps managers understand that social responsibility is separate and distinct from financial performance.
A)True
B)False
Answer: False
Q3) Friedman never proposed that businesses had any obligation to act ethically.
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Stakeholder Approach to Business, Society, and Ethics
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Sample Questions
Q1) Who are the stakeholders of the college or university where you are taking this class?
Provide a list and discuss their relative importance to the school.
Answer: Any college or university has a wide range of stakeholders. The most obvious, and most central, are the students, faculty, staff, and administrators. Others that may not be so obvious are the governing board, legislators, community members (the Dean of Students is probably very familiar with the community members who live next door the school's "party houses"), students' family members, businesses that cater to students' needs, and a long list of others. Better answers will use some of the classification systems in the textbook to evaluate their relative importance to the school.
Q2) Stakeholders who have a high potential for cooperation and a low potential for threat to the firm are known as ____ stakeholders.
A) mixed blessing
B) supportive
C) nonsupportive
D) marginal
Answer: B
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Page 5
Chapter 4: Corporate Governance: Foundational Issues
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Q1) Describe how the separation of ownership and control came about.
Q2) The primary purpose of the Sarbanes-Oxley Act is to
A) provide rules regulating the relationship between CEOs and boards.
B) limit the power of corporate boards.
C) restrict the flow of corporate money into politics.
D) provide better protection for investors in public companies by improving the financial reporting of those companies.
Q3) Should directors be held personally liable in cases of corporate misconduct?
Q4) Audit committees arguably have the most responsibility of all board committees. A)True
B)False
Q5) When the interests of management and owners are not aligned, there will likely be a(n)
A) agency problem.
B) free agency dilemma.
C) shareholder rebellion.
D) shareholder resolution.
Q6) Forecast how society would change if business did lose its macro level of legitimacy.
Q7) Why are inside directors seen as problematic in corporate governance?
Page 6
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Chapter 5: Strategic Management and Corporate Public Affairs
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Sample Questions
Q1) The strategy level that asks what business the firm should be in is the ____ level.
A) enterprise
B) corporate C) business
D) functional
Q2) The steps of the strategic management process are most effective if done sequentially in the order specified in the textbook.
A)True
B)False
Q3) Describe what the text means by "focus on management sustainability."
Q4) What is a "benefit corporation?" Why do you think such an entity was created?
Q5) Corporate public policy takes place primarily at the corporate level of strategy.
A)True
B)False
Q6) Public affairs evolved from social activism. A)True
B)False
Q7) What is meant by a public affairs strategy?
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Chapter 6: Risk, Issue, and Crisis Management
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Q1) Issues management is a process by which a firm deals with its most important stakeholders' demands.
A)True
B)False
Q2) The issues management process contains two basic functions,
A) planning and implementation.
B) identification and resolution.
C) planning and controlling.
D) leadership and followership.
Q3) When managers consider issues that affect their firm, they often ignore
A) ethical considerations.
B) financial concerns.
C) personnel matters.
D) personal stakes.
Q4) Issues selling is the process by which stakeholders convince managers to pay attention to the stakeholders' particular interests.
A)True
B)False
Q5) What differentiates a crisis from a problem?
Q6) Discuss what personal stakes managers might have in issues definition.
Page 8
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Chapter 7: Business Ethics Essentials
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Sample Questions
Q1) The model of ethical management in which managers fail to take morality into account when making decisions is
A) immoral management.
B) moral management.
C) semi-moral management.
D) amoral management.
Q2) Public opinion polls regarding business ethics are
A) clearly tied to reactions to the latest scandals reported by the media.
B) reflective of actual business ethics currently in practice.
C) unrelated to actual business ethics practices.
D) difficult to assess because the media keeps ethics scandals in the public eye.
Q3) Descriptive ethics is concerned with studying and describing the morality of a particular group of people.
A)True
B)False
Q4) Briefly describe the process of moral development described by Kohlberg.
Q5) Describe and evaluate the "what is?" ethics question.
Q6) Distinguish between descriptive and normative ethics.
Q7) What are the differences among "immoral," "moral," and "amoral?"
Page 9
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Chapter 8: Managerial and Organizational Ethics
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Sample Questions
Q1) Defend the idea of character education being provided by corporations.
Q2) Discuss the board of directors' role in the firm's ethical climate.
Q3) Think of a time when you were presented with an ethical dilemma. How did you respond? What motivated you to act as you did? How did you feel after you made the decision and its resulting consequences took place? Did you regret your decision or did you feel proud of it? Why?
Q4) Being forthright, sincere, and honest in communicating with others is referred to as A) candor.
B) transparency.
C) feedback.
D) criticism.
Q5) An ethics screen is
A) a set of select standards against which the proposed action is compared.
B) a set of financial criteria which must be met before the proposed action is evaluated ethically.
C) a set of investment criteria used by ethical investors.
D) a set of ethical standards against which job candidates are evaluated.
Q6) Discuss and evaluate the Rawls principle of justice provided in the textbook.
Q7) Evaluate the principle of utilitarianism.
Page 10
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Chapter 9: Business Ethics and Technology
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Q1) With respect to the three models of management ethics, discuss how technology might affect amoral management.
Q2) At one time, it was assumed that the use of robotics in the workplace would lead to:
A) more jobs
B) fewer jobs
C) no change in the number of jobs
D) higher tech jobs
Q3) Discuss some of the challenges that technology presents to society.
Q4) Which of the following is not a valid definition of technology?
A) the totality of the means employed to provide objects necessary for human sustenance and comfort
B) a scientific method used in achieving a practical purpose
C) all the ways people use their inventions and discoveries to satisfy their needs and desires
D) the science of replacing human effort with mechanical power
Q5) Some companies involved in biotech research hire bioethicists to monitor the ethical issues raised by their investigations. Can these bioethicists, paid by the firm doing the research, be objective?
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Chapter 10: Ethical Issues in the Global Arena
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Sample Questions
Q1) Countries at earlier stages of economic development often do not have a legal or ethical infrastructure in place to help protect their citizenry.
A)True
B)False
Q2) Which of the following is not an example of corruption?
A) bribery
B) paying for political favors
C) negotiating for the lowest price on a contract
D) paying protection money to the police
Q3) Provide an example of how the FCPA has cracked down on corrupt practices.
Q4) According to the textbook, Dow Chemical, which bought Union Carbide in 2001, is still subjected to claims by the survivors of the Bhopal disaster. Based on your understanding of the incident and its aftermath, determine whether or not Dow should continue to be liable to the victims of Bhopal.
Q5) Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country.
A)True
B)False
Q6) Discuss the best ways to combat bribery.
Page 12
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Chapter 11: Business, Government, and Regulation
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Sample Questions
Q1) Articulate a brief history of government's role in business.
Q2) After the 1950s, most Congressional legislation that affected business was
A) economic in nature.
B) concerned largely with the quality of life.
C) supportive of business.
D) aimed at promoting competition.
Q3) Arguments for industrial policy include all of the following except A) for economic reform.
B) making government more efficient.
C) making government more effective.
D) stifling innovation.
Q4) Negative externalities are the additional costs incurred by business due to the outside regulations placed by government.
A)True
B)False
Q5) Given information from this chapter, can governments manage more ethically than capitalism?
Q6) Compare and contrast economic regulation and social regulation.
Q7) Discuss the ability of the public or its government to establish social priorities.
Page 13
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Chapter 12: Business Influence on Government and Public Policy
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Q1) Lobbyists have been identified as having very narrow self-interests. Apparently some of these interests go no further than lining their own pockets, with no regard for their clients' needs. Research the activities of Jack Abramoff and Michael Scanlon in connection with their representation of several Native American tribes and their gambling casinos.
Q2) Astroturf lobbying is massively regulated.
A)True
B)False
Q3) Today, many major U.S. corporations avoid paying taxes by utilizing offshore tax loopholes.
A)True
B)False
Q4) Lobbyists often show legislators the benefits and detriments of complex legislation. Discuss the wisdom of allowing lobbyists to perform this function.
Q5) In lobbying, a trade association often uses
A) written phone banks.
B) grassroots lobbying support.
C) lagging promotion.
D) limited spending.
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Chapter 13: Consumer Stakeholders: Information Issues
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Q1) The Truth in Lending Act requires all suppliers of consumer credit to fully disclose all credit terms and to permit a 3-day right of rescission in any transaction involving a security interest in the consumer's residence.
A)True
B)False
Q2) The consumer movement is generally traced back to a single cause or event, although the specific incident varies from author to author.
A)True
B)False
Q3) Customer relationship management (CRM) is the ability of an organization to retain profitable customers.
A)True
B)False
Q4) Targets of comparative advertising have no recourse if they think their competition has gone too far.
A)True
B)False
Q5) Describe the main issues related to using psychological appeals in advertising.
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Chapter 14: Consumer Stakeholders: Product and Service Issues
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Q1) One of the strengths of Six Sigma program's has been its
A) laser-like focus on worker satisfaction.
B) increase in customer loyalty.
C) contribution to research in production quality.
D) clarity of process and the steps companies must take to adopt it.
Q2) The Tylenol case in the 1980s, in which capsules were injected with cyanide, is an example of
A) product extortion.
B) product liability.
C) product tampering.
D) product packaging.
Q3) TQM must emphasize all of the following except?
A) leadership
B) individualism
C) recognition
D) communication
Q4) U.S. residents, more than people in other countries, tend to sue when they are harmed.
A)True
B)False
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Chapter 15: Sustainability and the Natural Environment
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Q1) The "Not In My Back Yard (NIMBY)" mentality is an attitude based on avoidance or denial of responsibility.
A)True
B)False
Q2) A global water crisis has developed as a result of drought, pollution, mismanagement and politics.
A)True
B)False
Q3) The purpose of Superfund legislation was to A) identify toxic waste sites.
B) eliminate dumping of toxic wastes.
C) clean up hazardous waste dumps and spills.
D) prevent land degradation.
Q4) Describe the ethics of the solution that some businesses have for hazardous wastes - transporting and dumping them elsewhere, legally or illegally.
Q5) Deforestation occurs only in less developed countries (LDCs).
A)True B)False
Q6) Explain the concept of the "tragedy of the commons."
Page 17
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Chapter 16: Business and Community Stakeholders
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Q1) Pick a company that you are interested in (maybe you or your parent work there, or it is a company that you would like to work for). Research its giving history. What did you find out? Is it clear how the program fits with the firm's business activities?
Q2) Major recipients of health and human services giving are:
A) welfare agencies
B) hospitals
C) youth agencies
D) All of these.
Q3) Corporate philanthropy is used to achieve which of the following?
A) Business objectives
B) Corporate reputation
C) Branding
D) Each of these
Q4) Outsourcing refers to
A) small (usually fewer than ten employees) layoffs.
B) transferring employees to overseas postings.
C) layoffs at small companies.
D) the relocation of business processes to a different company.
Q5) Describe how a company can provide support to "survivors" of a layoff.
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Chapter 17: Employee Stakeholders and Workplace Issues
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Q1) To whom does an employee owe a duty? How does your answer affect the whistle-blowing process?
Q2) An individual who reports to some outside party some wrongdoing that he or she knows or suspects his or her employer of committing is a(n)
A) informant.
B) corporate traitor.
C) whistle-blower.
D) muckraker.
Q3) Whistle-blowing is primarily a due process issue.
A)True
B)False
Q4) Evaluate the differences between the old and new social contracts between employer and employee. Does one seem more fair than the other? If so, why?
Q5) What forms of retaliation might be aimed at a whistle-blower?
A) not given promotion
B) cold shoulder from coworkers
C) transfer to another office
D) all of these choices
Q6) Contrast the roles of ombudsman and human resource manager.
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Chapter 18: Employee Stakeholders: Privacy, Safety, and Health
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Q1) Describe some of the best family-friendly benefits that are provided to workers.
Q2) The state laws that address drug testing usually ban them altogether.
A)True
B)False
Q3) A state of equilibrium where the demands of a person's personal and professional life are equal is called
A) contentment.
B) harmony.
C) work/life balance.
D) nirvana.
Q4) According to the American Lung Association, an employee who smokes costs the business at least an extra $1,000 each year in added health care costs. Is cost a legitimate issue when considering the implications of smoking in the workplace?
Q5) Secondary, or passive, smoke can cause death of lung cancer even in non-smokers.
A)True
B)False
Q6) Describe the theory behind the polygraph. Does this theory provide an adequate basis for the use of lie detectors?
Page 20
Q7) Describe the pluses and minuses to the use of integrity tests.
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Chapter 19: Employment Discrimination and Workplace
Diversity
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Q1) In the 1970's, women began to see that their workplace situation was no better than that of.
A) men.
B) African-Americans.
C) Asian-Americans.
D) older workers.
Q2) Under Title IX the burden of proof includes all of the followingexcept
A) the accused must confess
B) the school must be aware of sexual harassment
C) harassment must take place in educational setting
D) the school must fail to take steps to stop it
Q3) The concept of disparate impact is significant in employment law because it
A) created the four-fifths rule.
B) negates many of the earlier antidiscrimination laws.
C) runs counter to many traditional employment practices.
D) is the first common law regarding job discrimination.
Q4) The first antidiscrimination law in the United States was the Civil Rights Act of 1964.
A)True
B)False
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