Chapter 12 Multiple Choice Questions

. All definitions of Corporate Social Responsibility recognize that:

companies have a responsibility for their impact on society and environment.

the natural environment should be the main focus of CSR activities.

business ethics is a complex issue.

companies must pay equal attention to business ethics and sustainability.

. Who said that the "only one social responsibility of business is to increase profits"?

Edward Freeman

Milton Friedman

Michael Porter

Michael Freeman

. What is the main characteristic of the stakeholder approach?

The idea that many different groups have a legitimate interest in the corporation

It is a critical perspective on corporations and business.

A focus on social and environmental responsibilities of a corporation.

The assumption that shareholders are not the main stakeholders in the corporation.

. What are the four generic strategies of social responsiveness?

Proaction, Defensive, Reinvestment, Reaction

Reaction, Defence, Reinvestment, Proaction

Reaction, Defence, Investment, Withdrawal

Reaction, Defence, Accommodation, Proaction

. Michael Porter and Mark Kramer said that:

Social responsibility does not matter for firm strategies.

Socially responsible firms act against the interests of shareholders.

Social responsibility can help firms to discover future business opportunities.

Social responsibility is a long-term investment in a company's advertising and public relations.

. Which of the following is NOT an example of a genuine business innovation?

Development of less polluting fuel

Investment in alternative energy sources

New product targeted at low-income customers

Charitable donation to an ecological organization

. Opportunities for social innovation are greatest when:

CSR is aligned with a firm's core skills and capabilities.

CSR spending of a firm is larger than that of its competitors.

CSR is pursued by a firm to improve its reputation.

CSR is pursued by a firm to enhance human capital.

. What are the three levels of innovation?

New product creation, new market creation, leadership

In-market innovation, new market creation, leadership

New product creation, new market creation, new reputation

New product creation, new market creation, pioneering

. Which of the following is an example of new market creation?

Development of a low-emission fuel for motorbikes by an oil company.

Development of a cheaper drug by a pharmaceutical company.

Design of an environmentally friendly building by a construction company.

Creation of microfinance services to poor creditors by a bank.

. What is a key obstacle to the success of non-traditional partnerships?

Lack of investment by a multinational firm

Lack of trust between partners

Lack of expertise within a multinational firm

Lack of government support

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