Canadian Business and Society Ethics Responsibilities and

Sustainability Canadian 4th Edition Sexty

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) A large sporting goods chain incorporates sustainable environmental practices into all its operations
and has thus developed a committed customer membership base, resulting in profitable operations.
This business is operating under the:
A) economic paradigm
B) shareholder perspective
C) unknown response paradigm
D) investment paradigm
E) social paradigm
Answer: E

2) Which approach is the highest level of CSR acceptance?

A) investment paradigm
B) social paradigm
C) unknown response paradigm
D) economic paradigm
E) shareholder model
Answer: B

3) A major manufacturing company has never engaged in CSR programming. It simply never occurred
to them to do so. Which response to CSR does this reflect?
A) Tokenism
B) Amoral
C) CSR recognition
D) Greenwashing
E) Anti-CSR
Answer: B

4) A large manufacturer has received negative publicity related to discriminatory employment practices
regarding minorities and their opportunities for promotion. The CEO has ordered the advertising
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company to develop a campaign that features members of multiple minority groups, many of whom
are managers, talking about how supportive the company is. This CSR response is:
A) Tokenism
B) Social enterprise–mixed return
C) Social enterprise–social return
D) Amoral
E) CSR recognition
Answer: A

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5) The effort of business to make a social contribution to society is referred to as:
A) Corporate Social Responsibility
B) Corporate Social Engagement
C) Cause related marketing
D) Corporate giving
E) Corporate Philanthropy
Answer: E

6) XYC Corporation has decided to engage in corporate philanthropy. Which of the following
activities would not be a possible approach?
A) Social entrepreneurship
B) Donations of services
C) Donations of money or goods
D) Event sponsorship
E) Voluntarism
Answer: A

7) KLO Accounting Services decides to allow members of a local centre to have their taxes done for
free. This is a type of:
A) strategic giving
B) corporate volunteerism
C) corporate sponsorship
D) cause-related marketing
E) corporate donation
Answer: E

8) Arguments against corporate giving include all of the following, except:

A) Social welfare is the role of government
B) Benefits are seldom measurable
C) Funds belong to shareholders
D) Adverse publicity
E) Too many guidelines
Answer: E

9) The Bennett family, a family of successful entrepreneurs, has been very involved in the local
community. They decide that they would like to make a series of contributions to the university, the
college, and various recreational clubs throughout the city. They hire an administrator to distribute
the funds. This is an example of:
A) social venture philanthropy
B) sponsorship
C) strategic giving
D) gift giving
E) a charitable foundation
Answer: E

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10) Judy isat the local cellular phone store. She chooses a phone that guarantees, with her purchase, that
the corporation will give a percentage of the profits to charity. The company is engaged in:
A) cause-related marketing
B) corporate donation
C) social venture
D) corporate volunteerism
E) corporate sponsorship
Answer: A

11) The shareholder's meeting of ABC Corporation was contentious. The shareholders were concerned
that the company had given away their money to charitable causes. The board outlined to the
shareholders that there was a direct corporate benefit to be gained from these donations. The board
is positioning the contributions as , which is consistent with a(n) perspective.
A) Social enterprise; enlightened self-interest
B) CSR; enlightened self-interest
C) Social enterprise; profit maximization
D) Strategic giving; profit maximization
E) Strategic giving; enlightened self-interest
Answer: E

12) Juliocoaches his son's soccer team. Last night, he stayed late at work photocopying the team's
schedule. His employer is fine with this and Julio is told to just make sure that the copying doesn't
become excessive. The company's policy corporate volunteerism.
A) discourages
B) promotes
C) encourages
D) enables
E) rebukes
Answer: D

13) The advantages of volunteerism include all of the following, except:

A) contributes to corporate leadership
B)integrates the employee with the community
C) improves corporate image
D) increasing employee morale
E) increases the focus on corporate objectives
Answer: E

14) Voluntary activities normally excluded from employer support include all of the following, except:
A) Special interest groups
B)Professional associations
C) Working for unions not covered by a collective agreement
D) Political parties
E) Religious groups
Answer: B

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15) IBM's corporate version of the Peace Corps, established in 2007, involved 1000 employees in
developing nations. This is an example of:
A) Corporate service corps
B) Corporate philanthropy
C) A charitable foundation
D) Corporate sponsorship
E) Corporate donorism
Answer: A

16) Crossing the finish line at the charitable race, Janet noticed that the water bottle she was handed
displayed the logo of a local water distributor who had donated the product for the race. The local
water distributor is engaged in:
A) corporate volunteerism
B) corporate donation
C) corporate sponsorship
D) cause-related marketing
E) strategic giving
Answer: C

17) Corporate sponsorship may not be seen as the best way to become involved in the community. The
reasons for this include all of the following, except:
A) It attracts too much attention.
B) It is seen as advertising.
C) It has lost its novelty.
D) The motivations of the firm may come into question.
E) The public does not understand the linkage to the community.
Answer: A

18) Some people feel that when a company engages in corporate sponsorship, their motivation to do so
has very little to do with charity, but rather is focused on:
A) expanding into new markets.
B) a business or marketing arrangement.
C) gaining market share.
D) recruiting new employees.
E) eliminating the competition.
Answer: B

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19) A Calgary company is hoping to improve conditions for the working homeless in their city.
Working closely with non-profit organizations in Calgary, the company is giving both time and
money to help the nonprofits. The idea is to give long term support, leadership, and needed
resources to help the nonprofits work efficiently on this problem. The Calgary company's
involvement is best characterized as:
A) cause-related marketing
B) strategic giving
C) social venture philanthropy
D) corporate volunteerism
E) corporate donation
Answer: C

20) Which of the following terms is (are) also recognized as social venture philanthropy?
A) The new philanthropy
B) Social venturing
C) High-engagement philanthropy
D) All of the above
E) None of the above
Answer: D

21) Jane works for a company that considers its mandate to reduce worldwide illiteracy. Profits are
distributed between shareholders and literacy programs. This business is a:
A) social enterprise.
B) social venture.
C) corporate sponsor.
D) non-profit enterprise.
E) social foundation.
Answer: A

22) ABC Corporation hires students from a local school to do ground maintenance. This program is a
part of a corporate strategy that sees profits split equally between shareholders and youth work
programs. The founders of the company felt that business needed to be more creative in how it
managed CSR programs to maximize the difference that corporate involvement could realize. This
example illustrates which of the following concept(s)?
A) Corporate sponsor
B) Community investor
C) Social venture
D) Social entrepreneur
E) Social enterprise
Answer: E

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23) Common characteristics of a social enterprise include all of the following, except:
A) They are not accountable to their members and community stakeholders.
B) They have an enterprise orientation.
C) There is a commitment of local capacity building.
D) They are autonomous organizations with governance and ownership structures based on
participation by stakeholder groups.
E) They have social aims.
Answer: A

24) Small business experiences challenges implementing CSR. All of the following statements are true,
except:
A) Small business entrepreneurs do not have as much available time to devote to CSR.
B) Small business entrepreneurs are more likely to engage in tax evasion.
C) Small businesses confront fewer of the types of social and ethical challenges than facing large
businesses.
D) There is likely a lack of CSR planning and monitoring methodologies in small business.
E) The understanding of CSR is strongly influenced by the personal values of the entrepreneur.
Answer: C

25) CSR practice has shifted its focus in recent years. XYZ Corporation has asked you to advise them of
the current trends in the field. Which of the following statements is incorrect?
A) Corporations are becoming more directly involved in the projects they fund.
B) CSR is increasingly being viewed as an appropriate way to ease social problems in society.
C) There are increased pressures on non-profits towards accountability.
D) There is a trend to corporations using foundations.
E) Corporate donations are increasingly being made directly to non-profit organizations.
Answer: E

26) Community investment involves which of the following activities?

A) Sponsoring a local soccer club.
B) Building parks in a local community.
C) Creating an after-school basketball program.
D) Hosting a fundraiser for abused women.
E) All of the above.
Answer: E

27) Imagine Canada describes a as one that is a good corporate citizen, drives social
innovation, and invests money, ideas, and time in communities.
A) Responsible Representative
B) Supportive Shareholder
C) Caring Community
D) Social Citizen
E) Caring Company
Answer: E

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28) Alarge grocery store chain decided to donate 10% of net profits to hurricane relief programs. This
exemplifies the economic paradigm of corporate social responsibility.
A) True
B) False
Answer: A

29) The businesses most committed to corporate social responsibility are social enterprises.
A) True
B) False
Answer: A

30) The economic paradigm can be described as "Doing good by doing well."
A) True
B) False
Answer: A

31) The social paradigm can be described as "Doing well by doing good."
A) True
B) False
Answer: A

32) A local retail store hires employees from the local Society for Community Living, a non-profit
dedicated to helping individuals with disabilities integrate into their communities. These employees
are highly committed employees and the turnover rate for the store is consequently low. This
enhances profitability. This exemplifies the economic paradigm of corporate social responsibility.
A) True
B) False
Answer: B

33) The traditional shareholder model of social responsibility is most closely related to the anti-CSR
response type.
A) True
B) False
Answer: A

34) The publishing of

"social reports" is a common approach by corporations with a Tokenism response
to CSR expectations.
A) True
B) False
Answer: B

35) CSR initiatives are less likely to be successful without support of the board of directors.
A) True
B) False
Answer: A

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36) Corporatesponsorship is a less committed approach to corporate philanthropy, than is corporate
voluntarism.
A) True
B) False
Answer: B

37) Corporate philanthropy refers to the giving of financial resources and does not include employees
volunteering for local charities.
A) True
B) False
Answer: B

38) Corporate donation decisions are sometimes made by committee consensus, while other times they
are made at the head office level and then administered through committees.
A) True
B) False
Answer: A

39) Amajor software company has established a separate corporation to oversee its corporate donations.
This type of corporation is called a charitable foundation.
A) True
B) False
Answer: A

40) Jane is
interested in supporting breast cancer research. She purchases a pink mug at her local
grocery store. The grocery store donates a percentage of the profit to breast cancer research
organizations. Jane is engaged in strategic giving.
A) True
B) False
Answer: B

41) Cause-related marketing is likely to continue given the reduction in government funding for
charitable organizations.
A) True
B) False
Answer: A

42) Strategic giving is consistent with an enlightened stakeholder perspective.

A) True
B) False
Answer: A

43) Corporate volunteerism is the contribution of time to charitable causes with or without the consent
of employers.
A) True
B) False
Answer: B

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44) Sara's
mother was a stay-at-home mother who volunteered at the local hospital throughout Sara's
childhood. Sara's mother was a professional volunteer.
A) True
B) False
Answer: A

45) Charitable organizations

require the same number of volunteers today, relative to the past, but the
number of volunteers donating their time is declining.
A) True
B) False
Answer: B

46) Today,
few organizations support volunteerism and encourage their employees to be involved in the
community.
A) True
B) False
Answer: B

47) John received a letter from his employer acknowledging that John had donated 1000 hours to local
charities. All of these volunteer hours were on John's personal time on weekends. The letter to John
is sufficient evidence to say that John is receiving support for his volunteer activities.
A) True
B) False
Answer: B

48) Policies on voluntarism are of three types: encouraging, enabling, and promoting.
A) True
B) False
Answer: A

49) Juan's
employer has a policy outlining the conditions whereby he can take time off work to
volunteer. His organizational policy can be considered to be encouraging rather than enabling
volunteerism.
A) True
B) False
Answer: B

50) Kaleb'semployer supports a local children's hockey league. They provide the team jerseys, with the
corporate logo, that the players wear when playing public games. The corporation is considered a
donor to the hockey league.
A) True
B) False
Answer: B

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51) There is
a definite, reciprocal link between the corporation and the charity with corporate
sponsorship, but not with corporate donation.
A) True
B) False
Answer: A

52) A local toy store sponsors the children's festival. This shows targeting of corporate sponsorship.
A) True
B) False
Answer: A

53) Social
venture philanthropy is the investment of human and financial resources by corporations in
non-profit community development agencies to generate a social return.
A) True
B) False
Answer: A

54) Social venture philanthropy applies venture capital management practices to social responsibility.
A) True
B) False
Answer: A

55) Asocial enterprise is a model of business where a balance is sought between financial return to
shareholders and the furtherance of social aims.
A) True
B) False
Answer: B

56) All social enterprises are charitable organizations.

A) True
B) False
Answer: B

57) A social entrepreneur is the leader of a social enterprise, not of a non-profit organization.
A) True
B) False
Answer: B

58) Credit unions are a form of social enterprise.

A) True
B) False
Answer: A

59) Small businesses have to confront fewer of the types of social and ethical issues experienced by
large business.
A) True
B) False
Answer: B

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 60) Small businesses are more likely than large businesses to use misleading advertising.
A) True
B) False
Answer: A

61) The three strategies for working with communities include: Giving Back, Building Bridges, and
Changing Society.
A) True
B) False
Answer: A

62) There is a trend to corporations placing money into foundations instead of distributing the money
directly to the nonprofits through donation.
A) True
B) False
Answer: A

63) The purpose of community investment is to develop CSR strategies in relation to corporate
community-related issues and to link economic responsibilities with the social needs of the
community.
A) True
B) False
Answer: A

64) Community investment focuses on the creation of economic opportunities for business through
engagement in traditional areas of philanthropy and volunteerism.
A) True
B) False
Answer: A

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

65) What is meant by the tokenism (or greenwashing) response to CSR?

Answer: This response is used in a corporation that is not serious about CSR, but believes they should
respond. Might be forced into initiatives by NGOs, the media, or competitors. NGOs allege
many multi-national corporations are responding this way.

66) Describe the two corporate responses to CSR which have the HIGHEST level of acceptance.
Provide examples of these in your answer.
Answer: Social enterprise–social return: Organizations that operate with a social mission without the
intention of operating to make profits with all earnings committed to social causes or projects.
Examples: Habitat for Humanity, Goodwill

Social enterprise–mixed return: Organizations that operate with a social mission but with the
intention of making a profit. "Doing well by doing good" (social paradigm). A portion of profit
are committed to social causes or projects with the remainder reinvested or returned to owners.
Examples: Whole Foods Market Inc. and Value Village

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67) Which Canadian industries are the most heavily involved in corporate donation? Which industries
did these donations support?
Answer: The industries which made the greatest contributions in Canada are finance and insurance, and
manufacturing. The majority of the support went to three non-profit sectors: sports and
recreation; grant making, fundraising, and voluntarism; and arts and culture.

68) Describe the argument against business involvement in corporate giving.

Answer: It is argued that the funds given actually belong to shareholders, and it is presumptuous for
management to make the decision to give the funds in the first place, and then secondly to
choose particular recipients. Some claim that business corporations should not become
involved with social welfare as that is the job of governments. If business did support social
causes, it could give business even more power in society when many feel that it has too much
already. By supporting any cause or charitable organization, the corporation might become
accountable for the actions taken by the charity, or adverse publicity could damage the
corporation's image or reputation. For examples, see Everyday Ethics, 8.3 Philanthropy
through Charitable Foundations

69) Why has employee volunteerism become more important in recent times?
Answer: Employee voluntarism has become more important for two reasons: the decline of the
professional volunteer of the past, the homemaker who did not work outside the home; and the
increasing need for volunteers to serve. The former point results from more women working,
and the latter refers to the increasing load on volunteers during cutbacks in government
support and greater demand from an aging population.

70) List the reasons why corporate sponsorship is found to be so attractive for corporations.
Answer: The trend toward sponsorships has been found to be attractive for a variety of reasons:
favourable media exposure, or publicity
opportunity to entertain clients
building company/product presence
reaching select market segments
business-to-business networking

71) Give an example of a social venture philanthropy organization in Canada.

Answer: Several examples of social venture philanthropy organizations exist in Canada, including
Social Venture Partners (described in Everyday Ethics 8.7), B.C. Technology Social Venture
Partners, Social Capital Partners, the Tides Foundation, and the Enterprising Non-Profits
Program Vancouver.

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72) Whatare the common characteristics of social enterprises?
Answer: Although social enterprises take various forms, there are some common characteristics. They
have an enterprise orientation; that is, they are involved in the production of goods or
provision of services to a market, with the intention that revenues will exceed costs. They
have social aims, such as providing employment, training, and investment funding. There is a
commitment of local capacity building, and they are accountable to their members and
community stakeholders. They are autonomous organizations with governance and ownership
structures based on participation by stakeholder groups such as users and local community
groups or shareholders. Profits are distributed to stakeholders or used for the benefit of the
community.

73) Discussthe challenges of implementing CSR in small businesses.

Answer: Entrepreneurs do not have time to devote to it as they are confronting the daily demands of
their businesses. The expenses associated with obtaining the resources necessary, including
consultants and employee time, may be beyond the means of a small business. There is likely
a lack of knowledge of CSR planning and monitoring methodologies, as resources relevant to
small businesses are not readily available.

74) Describe the recent

trend of community investment in CSR.
Answer: Community investment has become another trend in CSR. It is defined as the efforts of a
corporation to help develop a community and create economic opportunities through a variety
of means from donations to direct involvement in commercial undertakings. The purpose of
community investment is to develop CSR strategies in relation to corporate
community-related issues and to link economic responsibilities with the social needs of the
community.

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