ExxonMobil - main business in discovering, producing, and selling natural gas

once had 90% of market share of American oil market

sherman trust act - 1840 - outlawed exxonmobil's monopoly

john d rockefeller - owner of exxon, emphasized cost control, efficiency,

centralized org, and suppression of competitors

business - profit-making activity that provides products and services to satisfy

human needs

government - structures and processes in society that authoritatively make and

apply policies an rules

society - network of human relations composed of ideas, institutions, and

material things

idea - intangible object of thought

value - enduring belief about which fundamental life choices are correct

idealogy - bundle of values that creates a particular view of the world

institution - formal pattern of relations that links people to accomplish a goal

material things - tangible artifacts of a society that shape and are shaped by ideas
and institutions

institutions support markets by: - judicial-

financial-
media
regulatory
political
corporations
cultural

business government society field - establishes general duties that business must
fulfill to retain the support and acquiescence of the others as it organizes people,
exploits nature and moves markets

market capitalism model - depicts business as operating within a market

environment, responding primarily to powerful economic forces
-- acts as buffer between business and nonmarket forces

market economy - economy that emerges when people move beyond subsistence
production to production for trade, and markets take on a more central role
capitalism - economic ideology with a bundle of values including private
ownership of means of production, the profit motive, free competition, and
limited government restraint in markets

managerial capitalism - market econonomy in which the dominant businesses

are large firms run by salaried managers, not smaller firms run by owner-
entrepreneurs

laissez-faire - economic philosophy that rejects govenrment intervention in

markets

BGS relationship for market capitalism - government - regulation limited

markets - discipline private economic activity
measure of corporate performance - profit
ethical duty of management - promote the interests of shareholders

criticism of market capitalism model - increased inequality

virtues being eroded

BGS DOMINANCE model - represents the perspective of business critics

business and gov dominate the great mass of people
- enriches few at expense of many

populism - political pattern, recurrent in world history, in which common people

feel oppressed or disadvantaged seek to take power from a ruling elite seen as
thwarting fulfillment of the collective welfare

marxism - ideology holding that workers should revolt against property owning
capitalists who exploit them, replacing economic and political domination with
more equal and democratic socialist institutions

BGS countervailing forces model - credits more power to a combination of forces

and interactions rendered paltry by the dominance model

stakeholder BGS model - entity that is benefitted or burdened by the actions of a

corporation or whose actions actions may benefit or burden the corporation
-- reorders the priorities of management away from those in the market
capitalism model

primary stakeholders - entities in a relationship with the corporation in which

they, the corporation, or both are affected immediately, continuously, and
powerfully

secondary stakeholders - entities in a relationship with the corporation in which

the effects on them, the corporation, or both are less significant and pressing

criticism of stakehold model - unrealistic assessment of the relationship power

vague guideline to substitute for the yardstick of pureprofit
no single clear objective
strategic management - actions taken by managers to adapt a company to
changes in its market and sociopolitical environments

Social Responsibility - the adoption by a business of a strategic focus for fulfilling

the economic, legal, ethical, and philanthropic responsibilities expected of it by
its stakeholders

Stakeholders - constituents who have an interest or stake in a company's

products, industry, markets, and outcomes

Corporate Governance - this term relates to the exercise of:

oversight - system of checks and balances
control - process of auditing and improving decisions and actions
authority

Shareholder Activism - activism is a broad term that can encompass engaging

dialogue with management, annual meetings, submitting resolutions, and
lawsuits

Sarbanes-Oxley Act - overhaul securities laws and governance structures, result

of Enron

Ethics
and related content -

Facilitation Payments - small payments to get normal services performed,

bribery

Ethical Decision Making -

Neighbor of Choice - an organization that builds and sustains trust with the
community through employment opportunities, economic development, and
financial contribution to education, health, artistic, and recreational activities of
the community

Philanthropy -

Governance - Which of the following is the organizing dimension that keeps a

firm focus on continuous improvement, accountability, and engagement with
stakeholders?

shareholder model of corporate governance - What focuses on developing and

improving the formal system of performance accountability between the top
management and the firm's stakeholders?
Chief Financial Officer - In the Enron case, the _________ played a major role in
unethical financial problems

potential hazard, uncertainty, opportunity for innovation - risk can be

categorized as:

true - Before its crash, Enron was ranked among the top fortune 500 companies

true - Enron was created out of the merger of two major gas pipeline companies
in 1985

2001 - What year did Enron collapse under a mountain of debt that had been
concealed through a complex scheme of off-balance sheet partnerships?

stakeholder model of corporate governance - which model describes where the

business is accountable to all its stakeholders, not just the shareholders?

ethics - relates to choices and judgments about acceptable standards of conduct

that guide the behavior of individuals or groups

principles - specific and pervasive boundaries for behaviors that are universal
and absolute

values - norms that are socially enforced

Americans w/ Disabilities Act - guaranteeing civil rights for the disabled

Age Discrimination in Employment Act - outlaws hiring practices that

discriminate against people ages 40 or older

Dodd-Frank Act - intended to protect economy from similar financial crises in

the future by creating more transparency in the financial industry

moral philosophy - principles or rules which individuals apply in deciding what

is right or wrong

consequentialism - a class of moral philosophy that considers a decision right or

acceptable

egoism - defines right in terms of individual

utilitarianism - greatest good for greatest number

Distributive - evaluates the outcomes or results of a business relationship (for

example, if an employee feels that she is paid less than her coworkers for the
same work)

Procedural - concerns about compensation, assesses the processes and activities

employed to produce an outcome or results
Interactional - evaluates the communication processes used in business
relationship (being untruthful about the reasons for missing work)

justice theory - a class of moral philosophy that relates to evaluations of fairness,

or the disposition to deal with perceived injustices of others

group think - going along with group decisions even when those decisions run
counter to their own values

pyramid scheme - What was Herbalife's production model?

Ackman - Who bet $1 billion dollars to short sell herbalife?

fiduciaries - Persons placed in positions of trust

who use care and loyalty in acting on behalf of the best interests of the
organization

duty of care, also called a

duty of diligence - to make informed decisions

Duty of loyalty - all decisions should be in the interests of the corporations and
its stakeholders

bribery - The practice of offering something, such as money, gifts, entertainment,

and travel, in order to gain an
illicit advantage from someone in authority

fraud - Any false communication that deceives, manipulates, or conceals facts to

create a false
impression when others are damaged or denied
a benefit

economic, legal, ethical, philanthropic - What is PELE?

Merck and Co, Inc - Merck created a drug to help river blindness. Those in need
and governments could not afford the drug, so Merck decided to give it for free. --
-old-fashioned philanthropy

corporate social responsiblity - duty of a corp to create wealth in ways that avoid
harm to, protect, or enhance societal assets

CSR spectrum - a thing with words on a line??

classical capitalism (friedmanism) - basic inspiration for business

- business is socially responsible if it maximizes profits while operating within
the law

early charitable impulse - steven girard - 6 mil for orphan boys school
Rockefeller - 550 mil over lifetime
carnegie - 350 mmil during life to social causes - only grand purposes

social Darwinism - philosophy of the late 1800s and early 1900s that used
evolution to explain the dynamics of human society and institutions. the idea of
"survival of the fittest" in the social realm implied that rich people and dominant
companies were morally superior

trustee - agent of a company whose corporate role puts him or her in position of
power over the fate of not just stockholders, but also others such as customers,
employees, and communities

service principle - belief that managers seerved society by making companies

profitable and that aggregate success by many managers would resolve major
social problems

herbert spencer - approved of charity, but only when it raised the character of
superiority of the giver

henry ford - touted citizenship but was ultimately unconcerned about the
welfare of his employees

general robert e wood - believed in responsibility to customers, public,

employees

basic elements of social responsibility - - market actions

-externally mandated actions
-voluntary actions

market actions - responses to competitive forces in markets

value chain - sequence of coordinated actions that add value to a product or

service

civil regulation - regulation by nonstate actors based on social norms or

standards enforced by social or market sanctions

extraterritoriality - application of one nation's laws within the borders of

another nation

nongovernmental organizations (NGOs) - voluntary orgs becoming powerful

advocates of restricting corporate power outside the borders of industrialized
nations

soft law - statements of philosophy, policy, and principle found in nonbinding

norm - standard that arises over time and is enforced by social sanction or law

principle - rule, natural law, or truth used as a standard to guide conduct

 codes of conduct - formal statements of aspirations, principle, guidlines and rule
for corporate behavior

sustainability report - practice of a corporation publishing info about its

economic, social and environmental performance

fair trade - idea that ethical consumers will pay premium for commodities from
producers in developing nations who use sustainable methods

management standard - model of the methods an org can use to achieve certain
goals

eco management and audit scheme (EMAS) -

international standards organization (ISO) -

UN Principles for Responsible Investment - require signatories to consider a

company's environmental, social, and governance performance when they invest

FTSE4Good Global INdex - intended to set the world standard for investors
seeking "companies that meet globally recognized corporate responsibility
standards"

international finance corporation (IFC) - seeks to promote development and

reduce poverty by funding projects for corporations

MULTIPLE CHOICE

1. Which of the following best describes social responsibility?

a. A corporation's rights, such as due process in a court of law, freedom of speech, and
privacy
b. Adoption by a business of a strategic focus for fulfilling the economic, legal, ethical,
and philanthropic responsibilities expected of it by its stakeholders
c. A company's attempt to maximize its profits in order to benefit stockholders
d. All the policies of a company that promote ethical business practices
e. All businesses except those with less than 50 employees
ANS: B PTS: 1 REF: p. 7

2. To which of the following forms of business can the concept of social responsibility be
applied?
a. Large, public corporations
b. Small, privately held corporations
c. All forms of corporations
d. Any form of business, from a sole proprietorship to a large corporation
e. All businesses except those with less than 50 employees
ANS: D PTS: 1 REF: p. 7

3. In order for any social responsibility initiative to have strategic significance in a

company, it must be fully supported and valued by
 a. top management.
b. legislators who develop federal law and policy.
c. government officials in the local area.
d. the company's stockholders.
e. non-profit groups who benefit from a company's philanthropic spending.
ANS: A PTS: 1 REF: p. 8

4. Companies with less than 100 employees account for about ____ percent of total
employment in the United States.
a. 40
b. 50
c. 60
d. 70
e. 10
ANS: B PTS: 1 REF: p. 7

5. Which of the following is not one of the four types of corporate social responsibility?
a. Ethical
b. Economic
c. Environmental
d. Legal
e. Philanthropic
ANS: C PTS: 1 REF: p. 11

6. Many claimed that Microsoft's dominance in the computer operating systems market
violated which corporate social responsibility?
a. Ethical
b. Economic
c. Legal
d. Environmental
e. Philanthropic
ANS: B PTS: 1 REF: p. 12

7. Society's primary method of enforcing its requirements regarding business behavior is

through
a. the legal system.
b. boycotts and demonstrations.
c. the media.
d. buying foreign-made products.
e. self-regulation.
ANS: A PTS: 1 REF: p. 12

8. Business ethics refers to

a. regulations and laws that guide companies in their business decisions.
b. companies refraining from forming monopolies or restricting competition in any
way.
c. principles and standards that guide behavior in the business world.
d. unique industry and professional factors that influence employees.
e. the percentage of after-tax profits given to non-profit and community groups.
ANS: C PTS: 1 REF: p. 13
 9. Minimal responsibility primarily involves
a. incorporating efforts in such a way as to benefit all stakeholders of the company.
b. fulfilling social responsibilities including legal and ethical guidelines.
c. addressing the compliance concerns of stakeholders in regards to legal and
economic matters.
d. trying to maximize stockholder wealth.
e. satisfying the primary stakeholders regardless of the possible legal implications.
ANS: C PTS: 1 REF: p. 14

10. Developing a code to aid employees in their decision making is an example of an activity
for which type of social responsibility?
a. Economic
b. Ethical
c. Philanthropic
d. Legal
e. Governance
ANS: B PTS: 1 REF: p. 13

11. Making voluntary contributions of money, time, and other resources to improve the
community most closely resembles which type of social responsibility?
a. Economic
b. Legal
c. Philanthropic
d. Environmental
e. Ethical
ANS: C PTS: 1 REF: p. 13

12. For a local beauty shop that is a privately owned business, which of the following is not
likely to be a stakeholder?
a. Tax authorities
b. Customers
c. Suppliers of hair coloring solutions
d. The New York Stock Exchange (NYSE)
e. Other businesses in the same neighborhood and shopping center
ANS: D PTS: 1 REF: p. 16

13. Those groups to whom a company is responsible are collectively known as

a. stockholders.
b. society.
c. employees and customers.
d. stakeholders.
e. very important people.
ANS: D PTS: 1 REF: p. 16

14. When Benetton used convicted felons awaiting death sentences in a new advertising
campaign,
 a. dialogue about high rates of violence increased nationwide.
b. sales increased because people responded favorably to a company strong enough to
address this controversial issue.
c. Benetton received an award for its creative and socially aware ad campaign.
d. there was very little impact on Benetton, its customers, or society in general.
e. people were outraged and some companies responded by no longer carrying
Benetton products.
ANS: E PTS: 1 REF: p. 18

15. Shortly after World War II, corporate managers

a. were closely scrutinized by their boards of directors.
b. possessed nearly unlimited power.
c. had little decision-making authority over daily matters.
d. rarely used the company's resources for reasons other than self-interest.
e. were hired away from other firms on a regular basis.
ANS: B PTS: 1 REF: p. 18

16. In the 1990s, employees turned to a more holistic approach to work and life,
characterized by all of the following, except
a. an interest in human and intellectual capital.
b. finding a balance between work and personal responsibilities and time.
c. trust in the workplace.
d. a decrease in dual-working parent families.
e. employee volunteerism in the community.
ANS: D PTS: 1 REF: p. 20-21

17. The flatter organizational hierarchies brought about due to the economic instability of
the 1980s and early 1990s caused all of the following except
a. workforce reduction.
b. increasing empowerment of lower level employees.
c. more opportunities for outstanding employees to move into management.
d. restructuring of the firm to focus on core competencies.
e. focus on efficiency and economies of scale.
ANS: C PTS: 1 REF: p. 20

18. Implementing social responsibility on a global level is complex because

a. consumers in most countries do not care about social responsibility.
b. of the need to balance economic responsibility with other responsibilities.
c. employees speak many languages and some information is hard to translate.
d. regional alliances, like NAFTA and APEC, have their own expectations and standards.
e. global companies are rarely subject to local laws and regulations.
ANS: B PTS: 1 REF: p. 24

19. After poor service, the second top reason consumers gave for avoiding or refusing to
buy from certain companies was
a. high prices.
 b. business conduct.
c. negative word-of-mouth.
d. poor branding.
e. dislike of advertising theme.
ANS: B PTS: 1 REF: p. 27

20. What holds organizations together and allows them to focus on efficiency, productivity,
and profits?
a. Respect
b. Diversity
c. Trust
d. Competence
e. Reliable source of funds
ANS: C PTS: 1 REF: p. 27

21. In the long run, the success of a company is built on

a. a company's commitment to be on the leading edge of technology.
b. its efficiency in operations.
c. long-term relationships with customers built on mutual respect and cooperation
that leads to repeat purchasing.
d. a company's ability to negotiate with suppliers and vendors.
e. innovative integrated marketing communications programs.
ANS: C PTS: 1 REF: p. 28

22. About how many consumers said they would be likely to switch to brands associated
with a good cause, if price and quality were not compromised?
a. Less than 5 percent
b. 20 percent
c. 40 percent
d. 50 percent
e. 80 percent
ANS: E PTS: 1 REF: p. 28

23. Employee commitment develops from

a. employees who believe their future is tied to that of the organization and are willing
to make personal sacrifices for the organization.
b. paying the best wages in the industry.
c. working in a team-based organization.
d. the reality that unemployment is on the rise, and people are lucky to have good jobs
e. offering child care to working mothers and fathers.
ANS: A PTS: 1 REF: p. 29

24. Which type of investor causes the most problems for CEOs when developing strategic
plans?
a. Shareholders seeking short-term gains
 b. Institutional investors
c. Shareholders willing to sacrifice short-term gains for long-term income
d. Employees who own stock
e. Global investors who do not understand the business
ANS: A PTS: 1 REF: p. 30

25. Overall, evidence supports that social responsibility

a. is unrelated to the performance of a business.
b. is good for a firm's reputation, but has little effect on performance.
c. negatively affects a firm's performance because it increases costs and reduces
profits.
d. is positively associated with return on investment, return on assets, and sales
growth.
e. works well in theory, but is hard to implement in business.
ANS: D PTS: 1 REF: p. 30

26. The framework to understand how businesses meet their economic, legal, ethical, and
philanthropic responsibilities is developed around the assumption that social
responsibility is a
a. process.
b. specific set of rules and guidelines.
c. result that does not need further attention.
d. theory, with little relevance to business practice.
e. requirement by federal law.
ANS: A PTS: 1 REF: p. 33

ESSAY

27. Define social responsibility, and then describe three other characterizations that exist
within the definition and meaning of social responsibility.

ANS:
Answers will vary.

PTS: 1 REF: p. 6-7

28. What are the four types of corporate social responsibility? Provide a brief explanation of
each type, including an example of how a business may fulfill each responsibility.

ANS:
Answers will vary.

PTS: 1 REF: p. 11-14

29. Describe the social responsibility continuum, including the two endpoints of the
continuum and the types of responsibilities and stakeholders considered at the
endpoints.

ANS:
Answers will vary.

PTS: 1 REF: p. 14-15

30. Trace the recent history of social responsibility in the United States, including key
events and trends that led to current expectations of business.

ANS:
Answers will vary.

PTS: 1 REF: p. 18-21

31. What are the performance benefits of social responsibility? Outline the benefits to
investors, customers, and employees.

ANS:
Answers will vary.

PTS: 1 REF: p. 26-31

32. What impact do corruption and underdeveloped social institutions tend to have on a
country's economy?

ANS:
Answers will vary.

PTS: 1 REF: p. 31-32

33. What are the four major parts of the social responsibility model? Describe each element
and how these elements work together in the model.

ANS:
Answers will vary.

PTS: 1 REF: p. 33-35

34. For companies that operate in a number of locations, describe the relationship between
social responsibility expectations in the home market and social responsibility
expectations in host markets.

ANS:
Answers will vary.

PTS: 1 REF: p. 15

Which of the following best describes social responsibility? - Adoption by a

business of strategies focus for fulfilling the economic, legal, ethical and
philanthropic responsibilities expected of it by its stakeholders.
To which of the following forms of business can the concept of social
responsibility be applied? - Any form of business, from a sole proprietorship to a
large corporation.

Companies with less than 100 employees account for ____% of the total
employment in the U.S. - 50

Which of the following is NOT one of the four types of corporate social
responsibility? - Environmental

Many claim that Microsoft's dominance in the computer operating systems

market violated.... - Economic

Society's primary method of enforcing its requirements regarding business

behavior is through... - Legal System

Developing a code to aide employees and their decision making is an example of

an activity of which of social responsibility? - Ethical

For a local beauty shop that is a privately owned business, which of the following
is not likely to be a stakeholder? - New York Stock Exchange

Those groups to whom a company is responsible are collectively known as -

Stakeholders

Shortly after WWII, corporate manager _____ - possessed nearly unlimited power

What holds organizations together and allows them to focus on efficiency,

productivity and profits? - Trust

Under the historical and traditional views of business, who was considered to be
a stakeholder? - Owners, employees, customers and business partners

Which stakeholder provides the goods and services necessary for an

organization to function effectively? - Suppliers

The _____ model explicitly acknowledges the dialogue that exists between a firm
internal and external environment. - Stakeholder interecation

Groups that are fundamental to a company's operations and survival are

collectively called - primary stakeholders

Which of the following is NOT considered a primary stakeholder? - Media

The extent to which a stakeholder can gain access to cohesive, utilitarian or

symbolic means to impose or communicate its views towards an organization is
known as _____ - Power
By beginning the importation of goods made by children under the age of 15
through indentured or force labor, the U.S. government exercised which type of
power? - Utilitarian

Which of the following is NOT one of the components of the reputation

management process? - Impression

How s corporate governance best defined? - The formal system of oversight,

accountability, and control of organizational decisions and resources.

On what basic precept is the shareholder model a corporate governance

founded? - The maximization of wealth for investors and owners.

Which stakeholder is the primary focus of the shareholder model of corporate

governance? - Investors

Who are the principles and agents of a corporation? - Owners and executives
respectively

In response to the collapse of the U.S. financial system in late 2008, the federal
government has become involved in corporate governance not to a degree not
since _____ - The Great Depression

Social investing is defined as _____ - The integration of social and ethical criteria

Shareholder resolutions _____ - May prompt a company to change its practices

When they refuse to invest in, patronize or partner with any business involved in
the slave trade or military concerns, the Quakers apply _____ - Social investment
criteria

In 2007 and 2008, what happened for only the second time in U.S. history? -
Overall CEOs took paycuts for two years in a row

In the United States, the major role society delegates to government is to _____ -
Provide laws based on the Constitution and Bill of Rights and enforce those laws
through the judicial system

When just one business provides a good or a service in a particular market, what
results? - Monopoly

Which industry did Ralph Nader's 1965 book criticize for ignoring consumers
interests in pursuit of increased profits? - Automotive

Which act is the principle tool employed by the federal government to prevent
businesses from restraining trade and monopolizing markets? - Sherman
Antitrust Act
Which of the following is NOT a method that the FTC uses to influence business
activity? - FTC can file criminal charges against companies that break antitrust
laws

To generate a measurement of the cost of regulation, economist generally

classify regulations as _____ - Economic or social

How could regulation on business result in a hidden tax to consumers? -

Businesses could pass regulatory costs on to consumers in higher prices

Despite business concerns about the costs of regulations, the benefits include all
of the following EXCEPT - Fewer consumer complaints

What effect did 2008-2009 financial crisis have on the call for deregulation? -
The 2008-2009 financial crisis led the U.S. and other countries to begin to
reverse the deregulatory trend of the previous decades

The process of working to persuade public and/or government officials to favor

a particular position and decision is known as _____ - Lobbying

The Sarbanes-Oxley Act was enacted to .... - Restore stakeholder confidence and
provide a new standard of ethical behavior for business

Which of the following statements is true about codes of conduct? - Codes are
formal statements describing organizational expectations

Which of the following is NOT one of the elements of Texas Instruments Quick
Test? - What will your coworkers think

Communication is important in keeping a firm on its ethical course because ... -

Top executives must enforce overall ethical standards within the organization

One of the most effective methods of ethic training is - Getting employees

involved in resolving ethical dilemmas that relate to actual problems in the
workplace

About half of the issues raised on ethics help or assistance hotlines are .... -
Human resource issues and complaints

______ expose to outsiders such as the media or regulatory - Whistle blowers

According to the National Business Ethics survey, ______ is a primary reason that
employees do not report misconduct. - The fear of retaliation

______ leadership is best suited for higher levels of ethical commitment among
employees and strong stakeholders support for an ethical climate. -
Transformational
Fives bases of power, including ______, cohesive, legitimate, referent and expert
power, can be used to motivate individuals either ethically or unethically in the
workplace. - Reward

What best describes ethics? - Choices and judgments about acceptable standards
of conduct that guide the behavior of individuals and groups.

The most basic of business ethical standards.... - Have been codified as laws and
regulations

Which of the following actions is NOT usually associated with bullying in a

workplace? - Providing constructive criticism

Lying by omission involves intentionally.... - Withholding material facts

Bribery is associated with which of the following? - Conflicts of interests

One of the most common fraudulent activities reported by employees about their
coworkers is... - Claiming to have worked extra hours

______ prohibits employment discrimination on the basis of race, national origin,

sex, gender, religion color... - Title VII of Civil Rights Act of 1964

Concerns involving consumers privacy, website development and online

marketing relate to which classification of ethical issue? - Technology

In which of colber stages of moral development does an individual emphasize

others over himself or herself? - Stage of mutual and interpersonal expectation,
relationships and conformity

What aspect of corporate culture relates to an organizations expectations about

appropriate conduct? - Ethical climate

Who establishes the ethical tone for an entire firm? - CEO

What is the set of conditions that limits barriers or provides rewards? –

Opportunity

Which of the following actions is NOT usually associated with bullying in the
workplace? - Providing constructive criticism

Lying by omission involves intentionally: - withholding material facts.

What aspect of corporate culture relates to an organization's expectations about

appropriate conduct? - Ethical climate

The most basic of business ethical standards: - are laws and regulations that
have been codified.
An employee for ABC, Inc., has been asked to carry out an assignment that she
believes is questionable. This situation can best be classified as - an ethical issue.

Conflicts of interest exist when employees must choose whether to: - advance
their own interests, those of the organization, or those of some other group.

One of most common fraudulent activities reported by employees about their

coworkers is: - claiming to have worked extra hours.

Which of the following is NOT an ethical issue in the area of communications? -

Bribery

________ prohibit(s) employment discrimination on the basis of race, national

origin, color, religion and gender - Title VII of the Civil Rights Act of 1964

Which moral classification considers a decision right or acceptable if it

accomplishes a desired result such as pleasure, knowledge, career growth, or
utility? - Consequentialism

According to Kohlberg's model, moral development: - is accelerated by gaining

education and experience in resolving conflicts.

Mary steals office supplies from her employer. Mary's unethical behavior may be
attributed to all of the following EXCEPT: - her personal values alone

Which of the following BEST describes ethics? - Individual beliefs about choices
and judgments of acceptable ways of behaving for individuals and groups.

An ethical issue is a problem, situation, or opportunity: - that requires an

individual or organization to choose among several actions that must be
evaluated as right or wrong, ethical or unethical.

Issues related to fairness and honesty may arise because business is sometimes
regarded as a: - game governed by its own rules, rather than those of society.

What are the three primary factors that together influence the ethical decision-
making process? - Opportunity, individual factors, and organizational
relationships

What is the set of conditions that limits barriers or provides rewards? -

Opportunity

If employees believe that salary decisions are fair and consistent for all job
categories, what type of justice exists? - Procedural

Who establishes the ethical tone for the entire organization? - Senior Leadership

Which of the following most closely exemplifies "groupthink"? - At a company

meeting, a possible safety issue with one of the company's products is discussed,
and the employees decide not to recall the item since the possibility of the
problem is probably slim.

Because it can be difficult to draw a boundary between some legal issues and
ethical issues in the workplace, it is important to: - have an organizational
mechanism for resolving all questionable issues.

Bribery is associated with which of the following? - Conflicts of interest.

Concerns involving consumer privacy, website development, and online

marketing relate to which classification of ethical issue? - Technology

If a doctor exaggerates the condition of a patient in order for it to be a condition

covered by insurance, the doctor is most likely applying which moral
philosophy? - Ethical formalism

In which of Lawrence Kohlberg's stages of moral development does an individual

emphasize others over himself or herself? - Stage of mutual interpersonal
expectation, relationships, and conformity

Which of the following is not one of the four types of corporate social
responsibility? - Environmental

Society's primary method of enforcing its requirements regarding business

behavior is through: - its legal system.

Business ethics refers to: - principles and standards that guide behavior in the
business environment.

"Minimal" responsibility primarily involves: - Addressing the compliance

concerns of stakeholders to legal and economic matters.

Developing a code to assist employees in their decision-making is an example of

an activity for which type of social responsibility? - Ethical

Making voluntary contributions of money, time, and other resources to improve

the community most closely aligns with which type of social responsibility? -
Philanthropic

For a local hair salon that is a privately-owned business, which of the following is
not likely to be a stakeholder? - The New York Stock Exchange (NYSE)

Those groups to whom a company is responsible are collectively known as

____________. - stakeholders

Overall, evidence supports that social responsibility - has positive results like
return on investment, return on assets, and sales growth.
Employee commitment develops from - employees who believe their future is
tied to that of the organization and are willing to make personal sacrifices for the
organization

An individual who risks their wealth, time, and effort to develop an innovative
product or service for a profit is called a(n): - Entrepreneur

Implementing social responsibility on a global level is complex because: - of the

need to balance economic responsibility with other responsibilities

In the long run, the success of a company is built on: - long-term relationships
with customers built on mutual respect and cooperation that leads to repeat
purchasing.

The framework to understand how businesses meet their economic, legal,

ethical, and philanthropic responsibilities is developed around the assumption
that social responsibility is a: - process

After poor service, the second top reason consumers gave for avoiding or
refusing to buy from certain companies was: - business misconduct

What holds organizations together and allows them to focus on efficiency,

productivity, and profits? - Trust

Individuals or organizations who earn a profit by providing goods and services

that satisfy people's needs are called a(n) ____________. - business

To which of the following forms of business can the concept of "social

responsibility be applied: - Any form of business, from sole proprietorships to
large corporations.

In order for any social responsibility initiative to have a strategic impact in a

company, it must be fully supported and valued by: - top management and
leadership

Which of these statements best describes the concept of social responsibility? -

Adoption by a business of a strategic focus for fulfilling the economic, legal,
ethical, and philanthropic responsibilities expected by it stakeholders.

"Corporate governance" is best defined as: - The formal system of oversight,

accountability, and control for organizational decisions and resources.

Because corporate ownership today is most often separated from corporate

management and control, conflicts of interest between owners and operators can
arise. - True

In 2007 and 2008, what happened for only the second time in the U.S. history? -
Overall, CEOs took pay cuts for two years in a row.
What is the purpose of the Organization for Economic Co-operation and
Development's (OECD) Corporate Governance Principles? - To formulate
minimum standards of fairness, accountability, transparency, and responsibility
in business practice

Corporate governance requires little more than compliance with the law, - False

As "fiduciaries," members of a company's board of directors are fundamentally

expected to: - exercise both a duty of diligence and a duty of loyalty.

Which of the following internal control mechanisms would be the MOST difficult
for a small company to implement? - Having several employees involved with
each transaction, decision, or organizational issue.

The Sarbanes-Oxley Act of 2002 increased accountability by imposing stricter

disclosure requirements and holding Boards of Directors accountable for their
actions. - True

Better corporate governance of financial businesses may help to limit the

problems experienced in the financial industry in the 2008-09 financial
meltdown. - True

Factors such as increased globalization, enhanced electronic communications,

economic agreements and zones, and the reduction of trade barriers are
reducing the need for corporate governance. - False

On what basic guideline is the shareholder model of corporate governance

founded? - The maximization of wealth for investors and owners.

Why was there little reason to focus on corporate governance in the late 1800s
and early 1900s? - Most companies were owner-operated and the owner made
the strategic decisions about the business, so little governance was needed.

Who are the principals and agents of a corporation? - Owners and managers,
respectively

An "outside director" on a company's board of directors: - has valuable expertise,

but limited vested interest in the firm before assuming the role.

According to reports published in mainstream business media (like

BusinessWeek and other sources) the best boards of directors: - are generally
more independent and more active than other boards.

Which of the following is NOT one of the responsibilities that will affect boards of
directors in the future? - Serving on boards will require less of a commitment
than in the past.
When the early Quakers refused to invest in, patronize, or partner with any
business involved in the slave trade or military concerns, the Quakers were
applying _________. - social investment criteria

When fundamental expectations about social responsibility are not met by

publicly-traded companies, then: - the confidence that investors have in
corporations, fund managers, market analysts, and others will decline.

Which of the following does NOT describe how risk plays a role in organizations?
- Ensuring that no executive is paid more than 100 times the average employee.

Perhaps the strongest argument against high levels of compensation for CEOs is -
the discrepancy between the highest paid executives and the median (mid-point)
employee wages.

Which of the following statements BEST describes the current trends in

corporate governance? - Forces are driving businesses toward the stakeholder
orientation and more formal governance.

Under the social responsibility philosophy, which of the following best describes
what the government's role in corporate governance should be? - Governments
need to be actively engaged in affording both protection and accountability for
corporate power and decisions

Members of a company's board of directors no longer assume legal responsibility

for a business' resources and decisions. - False

Compare the shareholder and stakeholder models of corporate governance.

Which one seems to be more prevalent today? How will this effect your role as a
business leader in today's marketplace? - Shareholder models just focused on
governance to benefit the profits of the business and the returns to investors.
Stakeholder models realized that governance must be focused on all stakeholder,
just just shareholders. The stakeholder models are becoming more prevalent in
today's business world. This means that to become successful in business today,
leaders must always have the thought of their stakeholders as well as profit at
the beginning of every decision they make.

Which stakeholder is the primary focus of the shareholder model of corporate

governance? - Investors

Which of the following best describes the stakeholder model of corporate

governance? - A company has responsibilities to many stakeholders including
investors, employees, suppliers, government agencies, and the community.

"Corporations are bound by the law, and by the rules of what you might call
ordinary decency. Beyond this however, they have no duty to pursue the
collective goals of society." This statement exemplifies which approach? -
Shareholder model of corporate governance
 Corporate governance requires a system of ____ similar to the distribution of
power between the executive, legislative, and judiciary branches of the U.S.
government. - checks and balances

In recent months, in response to the major collapse of the U.S. financial system in
2008-09, the federal government has become involved in corporate governance
to a degree not seen since ______. - the Great Depression.

What is the primary concern of a board of directors? - To closely monitor the

decisions made by managers on behalf of the company.

Effective shareholder activism could include all of the following activities

EXCEPT: - defacing company property.

Shareholder resolutions: - may stimulate a company to change its practices.

Social investing is best defined as: - the integration (blending) of social and
ethical criteria into the investment decision-making process.

Which of the following is LEAST LIKELY to be a use of internal controls in an

organization? - Measuring the effects of advertising on sales

How can a company align the interests of owners with managers through its
executive compensation actions? - By linking executives' compensation to
company performance and achievement of goals

Which of the following provides the best description of the community stakeholder for an
organization?
a. The community to be concerned with is the immediate neighborhood where most of
the organization's patrons live and work.
b. The entire city in which the organization operates will be affected by the
organization, and therefore this defines the community stakeholder.
c. The entire county in which the organization is located is the community stakeholder
because the impact of the organization reaches beyond the city to the entire county.
d. The community aspect of the stakeholder model includes the entire region in which
the company operates.
e. The community includes those members of society who are aware of, concerned by,
or in some way affected by the operations and outputs of the organization.
ANS: E PTS: 1

2. The organizational function dedicated to building and maintaining relationships and

trust with the community is known as
a. the social activity department.
b. the marketing department.
c. customer service.
d. community relations.
e. stakeholder management group.
ANS: D PTS: 1
3. Which of the following describes the contagion effect that can occur when one business
moves into an area?
a. New jobs will be created in the community, which will decrease unemployment and
boost the overall economy.
b. A move can signal to other firms that the area is a viable and attractive place for
others to locate, and more businesses will follow.
c. A move can signal to other firms that the area is congested and not worth entering.
d. The community will be grateful to the company for locating within its limits and
reward it with certain property tax benefits.
e. The overall skill level of employees in the community will improve, which may lead
other companies to recruit workers from this community.
ANS: B PTS: 1

4. What is a "living wage"?

a. Federal minimum wage that can be paid to employees
b. Level of wages designed to help individuals live comfortably
c. Average wage paid by a particular industry in a specific region
d. Required wage to keep employees above the area's poverty level
e. Ethical obligation to pay employees a reasonable wage
ANS: D PTS: 1

5. Which of the following best defines strategic philanthropy?

a. The synergistic use of an organization's core competencies and resources to address
key stakeholders' interests and to achieve both organizational and social benefits
b. Donating financial resources to help social causes and the community in general
c. Addressing the needs of various stakeholder groups through cooperative efforts
intended to benefit the community and society
d. Tying consumer purchases to the specific marketing objectives of a brand or product
e. Any act of benevolence and goodwill, such as making gifts to charities, volunteering
for community projects, and taking action to benefit others
ANS: A PTS: 1

6. Which of the following examples best aligns a company's competencies and strategic
goals with philanthropic activity?
a. A local gas station has a program in which its employees are partnered with
disadvantaged youths as mentors.
b. Ben and Jerry's Homemade ice cream company donates a percentage of its pretax
profits to support peace initiatives.
c. The local telephone company donates money to the Youth Soccer Foundation to help
pay for the upkeep of soccer fields and equipment.
d. A hair salon donates one dollar of every haircut to support the local food bank's
annual holiday food drive.
e. Merck uses its pharmaceutical expertise to develop a drug to combat river blindness
and donates millions of doses to poor countries.
 ANS: E PTS: 1

7. Which of the following best describes the importance of corporate philanthropy in the
1980s?
a. The cost-cutting nature of businesses in this decade left corporate philanthropy as a
low priority for most organizations.
b. Many firms began to establish separate foundations to make donations to charitable
causes during the 1980s.
c. Most business leaders understood the benefits of well-managed corporate
philanthropy initiatives and implemented formal programs.
d. The public first began to question the role of business in society, and many
individuals called for corporations to give back to society.
e. Most companies took a haphazard approach to corporate philanthropy causing little
good to come as a result.
ANS: A PTS: 1

8. What does cause-related marketing do?

a. Links corporate resources and knowledge to address broader social, customer,
employee, and supplier problems and needs
b. Ties an organization's product or service directly to a social concern
c. Provides an opportunity to associate a company's name and brands to a particular
sports event
d. Consists of purposeful marketing that provides consumers with needed product
information
e. Creates a link between an environmental cause and the company as a whole
ANS: B PTS: 1

9. Which of the following is not an example of a cause-related marketing effort?

a. Avon sells beauty products through its "pink ribbon" campaign and donates a
percentage of the proceeds to fund breast cancer research.
b. American Express donates a percentage of its credit card charges to the Statue of
Liberty and Ellis Island Restoration Fund.
c. Regis Hair Salons offers $10 haircuts for its "Clip for the Cure" campaign for which
the proceeds went to cancer research.
d. Bankers Trust Private Bank develops and introduces a "Wealth of Responsibility"
program to assist wealthy families in planning for philanthropy.
e. Sales from New Covent Garden's pea and ham soup were donated to help renovate a
homeless shelter's charity kitchens.
ANS: D PTS: 1

10. What is one of the main weaknesses of cause-related marketing?

a. Consumers do not see their contributions as really helping an important cause.
b. Cause-related marketing activities have not shown potential to affect consumer
buying patterns.
c. They help companies become aware that supporting social causes can support
business goals.
d. Consumers have difficulty recalling exact philanthropic relationships between
companies and causes.
 e. It promises donations to a specific cause that is important to company stakeholders.
ANS: D PTS: 1

11. How could the value of employee volunteer programs be enhanced for a firm to better
align these programs with strategic philanthropy goals?
a. Volunteer programs could be oriented to benefit the immediate community
surrounding the firm.
b. Programs could be geared toward improving the morale of the employees who
participate.
c. Programs should emphasize synergies between employees' current and future job-
related aptitudes and nonprofit needs.
d. Volunteer programs should be mandatory for all employees so as to encourage all
employees to think about social causes.
e. Firms could heavily advertise their volunteer efforts to create a more favorable
public image.
ANS: C PTS: 1

12. Which of the following is not one of the direct benefits associated with strategic
philanthropy?
a. Companies with a strategic approach to philanthropy experience rewards in the
workplace.
b. Companies receive a tax deduction on their charitable contributions.
c. Companies may find their employee recruitment practices to be more effective and
enhanced.
d. Strategic philanthropy should ease government regulations on the company.
e. Companies should experience enhanced customer loyalty.
ANS: D PTS: 1

13. Which of the following statements least demonstrates strategic philanthropy?

a. A talk show geared toward mothers supports a children's foundation to enhance the
social and cultural development of disadvantaged children
b. A chemical company implements a vanpooling system to cut back on environmental
pollution and also carefully designs its chemical processes to minimize
environmental damage
c. A healthcare-based company works with other healthcare systems to make health
insurance available to residents who cannot afford it
d. Employees at a telecommunications company are encouraged to serve food at a food
kitchen in order to help the homeless
e. A computer software company creates and funds technology-based learning centers
nationwide to help underprivileged citizens learn about technology
ANS: D PTS: 1

14. What is not a concern that top managers may have to deal with in regards to strategic
philanthropy?
a. Determining whether there are tax incentives for corporate giving
b. Having to defend the company's commitment to charity to various stakeholder
groups
c. Showing support for the firm's philanthropic efforts
d. Budgeting the resources required to manage philanthropic efforts
e. Being well versed in the performance benefits of social responsibility
 ANS: A PTS: 1

15. Which of the following is not one of the steps in the process for planning and
implementing strategic philanthropy?
a. Engage
b. Collect
c. Research
d. Organize and design
e. Spend
ANS: B PTS: 1

16. What does the "engage" step of the process for planning and implementing strategic
philanthropy consist of?
a. Gaining the interest and support of management early on so as to ease the approval
process in the future
b. Deciding what resources and dollars should be spent on certain strategic
philanthropy efforts
c. Creating interest in all the company's stakeholders in order to increase their support
of the strategic philanthropy process
d. Collecting information covering the internal organization and programs that might
intersect with the competencies of the company
e. Classifying funding opportunities according to the level of need and alignment with
organizational competencies
ANS: A PTS: 1

17. What is the main purpose of the "organize and design" step of the process for planning
and implementing strategic philanthropy?
a. Gaining the interest and support of management early on so as to ease the approval
process in the future
b. Deciding what resources and dollars should be spent on certain strategic
philanthropy efforts
c. Creating interest in all the company's stakeholders in order to increase their support
of the strategic philanthropy process
d. Collecting information covering the internal organization and programs that might
intersect with the competencies of the company
e. Classifying funding opportunities according to the level of need and alignment with
organizational competencies
ANS: E PTS: 1

18. What would be the best way for Anheuser-Busch to assist victims of a natural disaster in
keeping with the philosophy of strategic philanthropy?
a. Donate money to the victims of the natural disaster
b. Build a new bottling facility in the area of the disaster to provide new employment
 opportunities
c. Bottle drinking water and distribute it to the victims
d. Send volunteers to rebuild homes that were destroyed in the natural disaster
e. Provide beer and other alcoholic beverages to the victims of the natural disaster
ANS: C PTS: 1

19. In order to be considered "strategic," corporate philanthropy must be

a. valuable to the community and society as a whole.
b. aligned with the values of the employees in order to increase their motivation and
satisfaction.
c. related to the interests of the customers in order to sustain long-term, mutually
beneficial relationships.
d. aligned with the values, core competencies, and long-term plans of the organization.
e. communicated to all stakeholders of the organization.
ANS: D PTS: 1

20. You are the Director of Social Responsibility for a major athletic shoe and apparel
company. Which of the following options would most closely fulfill the objectives of
strategic social responsibility for your company?
a. Donating athletic shoes to a professional athletic team in order to increase the
company's exposure
b. Allowing employees to volunteer at a local charity of choice on company time for
one hour per week
c. Giving athletic shoes and apparel to disadvantaged youths
d. Having employees volunteer at a youth shelter and delivering athletic shoes for their
sports programs
e. Sponsoring a charity-oriented golf tournament by donating monetary funds to the
cause
ANS: D PTS: 1

ESSAY

21. What can a company do to become a neighbor of choice?

ANS:
Answers will vary.

PTS: 1

22. What economic impact does a company have on a community?

ANS:
Answers will vary.

PTS: 1

23. What is volunteerism, and who benefits from it?

ANS:
Answers will vary.
 PTS: 1

24. How can the traditional approach to corporate philanthropy be described?

ANS:
Answers will vary.

PTS: 1

25. Give an example of cause-related marketing and an example of strategic philanthropy.

ANS:
Answers will vary.

PTS: 1

26. What are some of the benefits a company receives by encouraging its employees to
participate in volunteer programs?

ANS:
Answers will vary.

PTS: 1

a - what is the primary function of a board of directors?

A) to make decisions about hiring, fiing, ensuring, compliance, and strategic
direction
B) to make decisions about how to run the day to day affairs of the business
C) to make decisions about how to manage the workforce
D) to make decisions about whether to pay dividends or announce stock splits

a - how is corporate governance best defined?

A) formal system of oversight, accountability, and control for organizational
decisions and resources
B) a system of decentralized mechanisms that assists a firm in meeting its goals
C) the extent to which the content of workplace decisions is aligned with a firm's
stated strategic direction
D) the exercise of control and authority b those in mid-management positions

C? - which of the following internal control mechanisms would be most difficult

for a small company to implement?
A) limiting access to valuable inventory to as few employees as possible
B) screening potential employees before hiring
C) having several employees involved with each transaction, decision, or
organizational issue
D) requiring all employees to take one week of vacation per year

C - who are the principals and agents of a corporation?

A) employees and stockholders
B) managers and employees
C) owners and executives
D) customers and managers

C - social investing is best defined as

A) a strategy to ensure short-term return on investments
B) the most profitable approach to investing in public companies
C) the integration of social and ethical criteria into the investment decision
making process
D) the sole use of environmental criteria to determine the best companies in
which to invest

B - which of the following was the most important corporate governance change
implemented as a result of the CMS Energy derivative lawsuit settlement?
A) a bunch of other CG stuff that MVH will bore us with in class
B) appointment of a chieg compliance officer who has the intitials MVH and can
control your scores in this class

T - As legalese goes the wording in the Settlement Agreement is the best legalese
I've ever pretended to read. T or F

T - In the CMS Energy case study the focus of the derivative lawsuit settlement
described in the CMS press release and the legal settlement agreement was on
the details of how CMS would restate its financial statements to reflect the
elimination of the "round trip" energy trades? T or F

F - In the Hewlett-Packard case study the focus was on H-P's corporate

governance failures that led to sexual discrimination claims relating to HP's
dismissals of former CEO Carly Fiorina and former Chair Patricia Dunn. T or F

F - MCH uses the Hewlett-Packard case as a teaching tool regarding a company

board o directors' responsibility for succession planning because HP's board has
done a very good job of fulfilling that responsibility Tor F

Corporate governance requires a system of _________ similar to the distribution of

power between the executive, legislative, and judiciary branches of the U.S.
government.

A. decision-making authorities
B. division of labor
C. goals and values
D. priorities and divisions
E. checks and balances - E. checks and balances

Effective shareholder activism includes which of the following?

A. using grassroots campaigns, such as letter writing

B. defacing company property
C. awarding compensation to executives
D. making daily decisions within the company
E. assigning members to the board's governance committee - A. using grassroots
campaigns, such as letter writing

According to reports published in Business Week and other sources, the best
boards of directors
A. are found in Japanese and European countries
B. are generally more independent and more active than other boards
C. rate high on independence but low on innovation
D. rarely own stock in the company
E. are not compensated - B. are generally more independent and more active
than other boards

_______________ is the linchpin between risk and control and corporate governance.
A. shareholder activism
B. board independence
C. shareholder resolution
D. auditing
E. proxy - D. auditing

Which stakeholder is the primary focus of the shareholder model of corporate

governance?
A. Customers
B. Investors
C. Community
D. Suppliers
E. Employees - B. Investors

"Corporations are bound by the law, and by the rules of what you might call
ordinary decency. Beyond this however, they have no duty to pursue the
collective goals of
society." This statement exemplifies which approach?
A.Efficiency maximization goal of the firm
B. Shareholder model of corporate governance
C.Ethical approach of corporate governance
D. Stakeholder model of corporate governance
E. Broader conceptualization of corporate governance - B. Shareholder model of
corporate governance

Which of the following is least likely to be a use of internal controls in an

organization?

A. Ensuring compliance with laws

B. Safeguarding corporate assets and resources
C. Protecting the reliability of organizational information
D. Measuring the effects of advertising on sales
E. Allowing comparisons between actual and planned performance - D.
Measuring the effects of advertising on sales
A company that adopts a stakeholder model of corporate governance is
concerned with which of the following?

public good only

profits only
supplier satisfaction
public good, profitability, and shareholder return
sustainability initiatives - public good, profitability, and shareholder return

Major corporate governance issues often involve what type of decisions?

strategic
operational
limited
lower-level
daily - strategic

In the past, the primary emphasis on governance systems and theory was on
__________________________________________________.

developing crisis management plans

creating employee empowerment
improving the leadership of the board
compensation systems for board members
conflicts of interest between managers and investors - conflicts of interest
between managers and investors

How is corporate governance best defined?

The extent to which the content of workplace decisions is aligned with a firm's
stated strategic direction
The formal system of oversight, accountability, and control for organizational
decisions and resources
The exercise of control and authority by those in mid-management positions
The philosophy that a board or CEO holds regarding accounting methods
A system of decentralized mechanisms that assists a firm in meeting its goals -
The formal system of oversight, accountability, and control for organizational
decisions and resources

Many boards of directors believe that the United States has a problem in that
executive pay _____________________________________.

is not necessary
does not highlight the executive's ability
is too limited by government regulation
is too low
is not in line with performance - is not in line with performance

Who is the client of the external auditor of a public company?

A. board of directors
B. employees
C. chief executive officer
D. chief financial officer
E. the principal - A. board of directors

As fiduciaries, members of a company's board of directors are fundamentally

expected to
A. ensure that daily issues are addressed properly by management
B. reconcile differences in quality standards
C. address conflicts about merging different corporate cultures
D. exercise both due diligence and due loyalty
E. resolve issues before they become reputation or legal risks –

D. exercise both due diligence and due loyalty

Who are the principals and agents of a corporation?

A. Customers and managers, respectively
B. Employees and stockholders, respectively
C. Managers and employees, respectively
D. Owners and executives, respectively
E. Stockholders and employees, respectively - D. Owners and executives,
respectively

cause-related marketing - ties an organization's product(s) directly to a social

concern

community - members of a society who are aware of, concerned with, or in some
way affected by the operations and output of an organization

community relations - the organizational function dedicated to building and

maintaining relationships and trust with the community

neighbor of choice - an organization that builds and sustains trust with the
community through employment opportunities, economic development, and
financial contributions to education, health, artistic, and recreational activities of
the community

philanthropy - acts such as donations to charitable organizations to improve the

quality of life, reduction of government involvement, development of employee
leadership skills, and creation of an ethical culture to act as a buffer to
organizational misconduct

social entrepreneurship - when an entrepreneur founds a business with the

purpose of creating social value
strategic philanthropy - the synergistic use of an organization's core
competencies and resources to address key stakeholders' interests and to
achieve both organizational and social benefits

volunteerism - when employees spend company-supported time in support of

social causes

Which of the following provides the best description of the community

stakeholder for an organization? - The community includes those members of
society who are aware of, concerned by, or in some way affected by the
operations and outputs of the organization.

What is a major difference between strategic philanthropy and cause-related

marketing? - Strategic philanthropy has an organizational focus, while cause-
related marketing focuses on a product or product line.

What is social entrepreneurship? - When an entrepreneur founds a business

with the purpose of creating social value

Which of the following best defines strategic philanthropy? - The synergistic use
of an organization's core competencies and resources to address key
stakeholders' interests and to achieve both organizational and social benefits

What is the definition of volunteerism? - When employees spend company-

supported time in support of social causes

Which of the following is a direct benefit associated with strategic philanthropy?

- Companies should experience enhanced customer loyalty.

What is a neighbor of choice? - An organization that builds and sustains trust

with the community

What does cause-related marketing do? - Ties an organization's product or

service directly to a social concern

What delineates strategic philanthropy, cause-related marketing, and social

entrepreneurship from one another? - How they achieve their goals