Business and Society Stakeholders Ethics Public Policy Lawrence 14th Edition Test Bank

Business and Society Stakeholders Ethics Public

Policy Lawrence 14th Edition Test Bank

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Chapter 07 - Global Corporate Citizenship

Chapter 07
Global Corporate Citizenship

True / False Questions

1. The basis for corporate citizenship does not rely on the generosity of a firm's senior
management or their awareness of their role as trustees of the public's interests.
True False

2. Global corporate citizenship refers to putting an organization's commitment to social and

environmental responsibility into practice locally.
True False

3. Corporate citizenship involves transforming a concern for financial performance into a

vision of corporate financial and social performance.
True False

4. Robert Civita, chairman and CEO of the Brazilian Abril Group, has defined global
corporate citizenship as "socialism with a conscience."
True False

5. A decade into the 21st century, corporate citizenship has become complicated and
mandatory.
True False

6. A tangible asset is something that cannot be seen or counted, but nonetheless has value.
True False

7. An intangible asset is something that can be seen and counted, such as buildings or money.
True False

7-1
Chapter 07 - Global Corporate Citizenship

8. Companies whose citizenship profile best matches public expectations are least likely to
benefit from strategic investments in corporate citizenship.
True False

9. There is no single universally accepted method for designing a CSR management

structure.
True False

10. In the first stage of corporate citizenship, the elementary stage, managers are uninterested
and uninvolved with social issues.
True False

11. If a company acknowledges the need to build more coherent initiatives, it is in the
innovative stage of becoming a corporate citizen.
True False

12. Corporate citizenship partnerships can exist between companies and stakeholders in other
countries.
True False

13. Social performance audits look at what an organization does, not at the results of the
actions.
True False

14. When looking at social reporting by country, Japan and the United Kingdom top the list of
percentage of firms reporting.
True False

7-2
Chapter 07 - Global Corporate Citizenship

15. Triple bottom line reporting requires that a firm report financial data.
True False

Multiple Choice Questions

16. Novo Nordisk's "take action" project was a program designed to:
A. Grant credit to underprivileged people in Mexico.
B. Spread the benefits of technology.
C. Promote exercise and healthy eating in schools.
D. Promote environmental safety.

17. Developing products and services that meet the needs of the world's poorest citizens is
sometimes called:
A. Selling to the bottom of the pyramid.
B. Selling to the top of the pyramid.
C. Selling to the poverty premium.
D. Business design opportunity.

18. The initiative into which GE has poured vast resources into developing energy-efficient
and environmentally friendly products and services is called:
A. Poverty for Profits.
B. Ecomagination.
C. The upside down pyramid.
D. None of the above.

19. Global corporate citizenship is more than espoused values, it requires:

A. Action.
B. Inaction.
C. Expression.
D. Enhancement.

7-3
Chapter 07 - Global Corporate Citizenship

20. Some companies have created a department of corporate citizenship to:

A. Adopt the United Nations' Global Compact Principles.
B. Decentralize under common leadership wide-ranging corporate citizenship functions.
C. Centralize under common leadership wide-ranging corporate citizenship functions.
D. Narrow the job of the public relations office.

21. Asian Forum on Corporate Social Responsibility gives awards for excellence in:
A. Environmental management.
B. Education.
C. Poverty alleviation.
D. All of the above.

22. The Foundation that is engaged in inspiring senior management, involving all business
lines in the organization, and having an impact by way of results is called:
A. Business for Social Responsibility.
B. Fundacion Empresa y Sociedad.
C. Corporate Social Responsibility Europe.
D. Canadian Business for Social Responsibility.

23. In the first stage of corporate citizenship:

A. The company must learn how to tackle the problem and make the new policy work.
B. Managers are uninterested and uninvolved with social issues.
C. Supervisors and managers become familiar with new routines that are necessary to cope
with a social problem.
D. A company must institutionalize it new social policy and make it a part of standard
operating procedures.

24. Once a company enters the innovative stage of corporate citizenship, it will:
A. Begin reporting its efforts to stakeholders.
B. Step up its philanthropic giving.
C. Increase the number of stakeholders to the firm.
D. Build more coherent initiatives with stakeholders.

7-4
Chapter 07 - Global Corporate Citizenship

25. Companies see the need to build more coherent initiatives as they move into the:
A. Innovative stage.
B. Integrated stage.
C. Engaged stage.
D. Transforming stage.

26. Managers responding to the needs of the local education system as a normal or routine
aspect of its operations is an example of an organization in the:
A. Innovative stage.
B. Integrated stage.
C. Transforming stage.
D. Engaged stage.

27. According to a comparative study of corporate citizenship in Latin America and the
Caribbean, which of the following is not one of the four levels of corporate social
responsibility activity?
A. Delayed.
B. Running.
C. Catching up.
D. Stalled.

28. Argentina and Mexico are at what level of citizenship activity?

A. Delayed.
B. Running.
C. Catching up.
D. Stalled.

29. Overall, corporate citizenship initiatives are:

A. More advanced in northern than in southern Europe.
B. Less advanced in northern than in southern Europe.
C. Equally advanced throughout Europe.
D. Not making inroads anywhere in Europe.

7-5
Chapter 07 - Global Corporate Citizenship

30. The executive body of the European Union is called the:

A. Executive Committee.
B. European Council.
C. Governing Body.
D. European Commission.

31. Shareholder activism is:

A. More pronounced in Europe.
B. More pronounced in the United States.
C. More pronounced in Asia.
D. More pronounced in the Caribbean.

32. Consumer activism is:

A. More pronounced in Europe.
B. More pronounced in the United States.
C. More pronounced in Asia.
D. More pronounced in the Caribbean.

33. The differences in corporate citizenship amongst various nations are driven by:
A. Governmental involvement.
B. Stakeholder activism.
C. Cultural traditions.
D. All of the above.

34. A systematic evaluation of an organization's social, ethical, and environmental

performance is called a(n):
A. Corporate social responsibility review.
B. Stakeholder audit.
C. Independent social review.
D. Social performance audit.

7-6
Chapter 07 - Global Corporate Citizenship

35. In 2001, the French Parliament passed the "new economic regulations" law which requires
a social performance audit focusing on its impact on:
A. Nuclear safety.
B. The community.
C. Equality in hiring.
D. Environmental initiatives.

36. Which of the following organizations have developed standards to judge corporate
performance?
A. International Organisation for Standards.
B. Global Development Initiative.
C. Institute of Accountability.
D. All of the above.

37. The major focus of ISO 14001 is to:

A. Link economic, environmental and social responsibility.
B. Build accountability in the public sector.
C. Support environmentalmanagement standards.
D. Structure effective dialogue with stakeholders.

38. The United Nations Global Compact is funded by:

A. Membership income.
B. Voluntary government and foundation contributions.
C. Government grants.
D. All of the above.

39. Global audit social standards concentrate on:

A. Internally focused economic benefits for the firm.
B. Externally focused social benefits for the environment.
C. Externally focused social benefits for key stakeholders.
D. All of the above

7-7
Chapter 07 - Global Corporate Citizenship

40. Companies in which two countries have taken the lead in social reporting?
A. Japan and United Kingdom.
B. United Kingdom and Italy.
C. Japan and Italy.
D. Spain and France.

41. Which of the following is not one of the four quadrants of the balanced scorecard
approach?
A. Customer.
B. Internal business processes.
C. External stakeholder relations.
D. Financial.

42. Which of the following is not a motivation for adopting a balanced score card approach?
A. Economic considerations.
B. Technological considerations.
C. Ethical considerations.
D. Innovation.

43. Financial, social and environmental results are reported together in a firm's:
A. Annual report.
B. Code of business conduct.
C. Triple bottom line report.
D. Employee newsletter.

44. Rolltronics, a Silicon Valley technology company, uses triple bottom line to report its
success with:
A. Donating electronic components to Computers for Education.
B. Providing computer training programs in developing countries.
C. Outsourcing its customer service department to India.
D. Innovating its manufacturing process to reduce costs and protect the environment.

7-8
Chapter 07 - Global Corporate Citizenship

45. Triple bottom line disclosure is primarily driven by:

A. Noneconomic drivers.
B. Managerial accounting drivers.
C. Economic drivers.
D. Technological advances.

Short Answer Questions

46. Define global corporate citizenship. Why has corporate citizenship recently become so
complicated?

47. Global corporate citizenship is more than espoused values; it requires action. Discuss
some of the ways forward-thinking companies are changing to improve their ability to act as
responsible citizens.

48. Define the five stages of corporate citizenship. Provide an example of a company in each
stage.

7-9
Chapter 07 - Global Corporate Citizenship

49. Businesses in many different countries now practice active citizenship. Using examples
from the text, discuss how businesses interpret and act on their global citizenship
commitments.

50. What is a social performance audit? Discuss the differences in social performance
auditing in the United States versus Europe.

51. Define balanced score card. What are the four quadrants of the balanced score card
approach?

52. How can triple bottom line reporting be used to measure a firm's corporate citizenship
practices?

7-10
Chapter 07 - Global Corporate Citizenship

Chapter 07 Global Corporate Citizenship Answer Key

True / False Questions

1. (p. 145) The basis for corporate citizenship does not rely on the generosity of a firm's senior
management or their awareness of their role as trustees of the public's interests.
TRUE

2. (p. 147) Global corporate citizenship refers to putting an organization's commitment to social
and environmental responsibility into practice locally.
FALSE

3. (p. 147) Corporate citizenship involves transforming a concern for financial performance into
a vision of corporate financial and social performance.
TRUE

4. (p. 147) Robert Civita, chairman and CEO of the Brazilian Abril Group, has defined global
corporate citizenship as "socialism with a conscience."
FALSE

5. (p. 147) A decade into the 21st century, corporate citizenship has become complicated and
mandatory.
TRUE

6. (p. 150) A tangible asset is something that cannot be seen or counted, but nonetheless has
value.
FALSE

7-11
Chapter 07 - Global Corporate Citizenship

7. (p. 150) An intangible asset is something that can be seen and counted, such as buildings or
money.
FALSE

8. (p. 150) Companies whose citizenship profile best matches public expectations are least likely
to benefit from strategic investments in corporate citizenship.
FALSE

9. (p. 151) There is no single universally accepted method for designing a CSR management
structure.
TRUE

10. (p. 153) In the first stage of corporate citizenship, the elementary stage, managers are
uninterested and uninvolved with social issues.
TRUE

11. (p. 153 - 154) If a company acknowledges the need to build more coherent initiatives, it is in
the innovative stage of becoming a corporate citizen.
FALSE

12. (p. 155) Corporate citizenship partnerships can exist between companies and stakeholders in
other countries.
TRUE

13. (p. 156) Social performance audits look at what an organization does, not at the results of the
actions.
FALSE

7-12
Chapter 07 - Global Corporate Citizenship

14. (p. 161) When looking at social reporting by country, Japan and the United Kingdom top the
list of percentage of firms reporting.
TRUE

15. (p. 163) Triple bottom line reporting requires that a firm report financial data.
TRUE

Multiple Choice Questions

16. (p. 146) Novo Nordisk's "take action" project was a program designed to:
A. Grant credit to underprivileged people in Mexico.
B. Spread the benefits of technology.
C. Promote exercise and healthy eating in schools.
D. Promote environmental safety.

Difficulty: Medium

17. (p. 157) Developing products and services that meet the needs of the world's poorest citizens
is sometimes called:
A. Selling to the bottom of the pyramid.
B. Selling to the top of the pyramid.
C. Selling to the poverty premium.
D. Business design opportunity.

Difficulty: Hard

7-13
Chapter 07 - Global Corporate Citizenship

18. (p. 147) The initiative into which GE has poured vast resources into developing energy-
efficient and environmentally friendly products and services is called:
A. Poverty for Profits.
B. Ecomagination.
C. The upside down pyramid.
D. None of the above.

Difficulty: Easy

19. (p. 151) Global corporate citizenship is more than espoused values, it requires:
A. Action.
B. Inaction.
C. Expression.
D. Enhancement.

Difficulty: Easy

20. (p. 151) Some companies have created a department of corporate citizenship to:
A. Adopt the United Nations' Global Compact Principles.
B. Decentralize under common leadership wide-ranging corporate citizenship functions.
C. Centralize under common leadership wide-ranging corporate citizenship functions.
D. Narrow the job of the public relations office.

Difficulty: Medium

21. (p. 152) Asian Forum on Corporate Social Responsibility gives awards for excellence in:
A. Environmental management.
B. Education.
C. Poverty alleviation.
D. All of the above.

Difficulty: Medium

7-14
Chapter 07 - Global Corporate Citizenship

22. (p. 152) The Foundation that is engaged in inspiring senior management, involving all
business lines in the organization, and having an impact by way of results is called:
A. Business for Social Responsibility.
B. Fundacion Empresa y Sociedad.
C. Corporate Social Responsibility Europe.
D. Canadian Business for Social Responsibility.

Difficulty: Hard

23. (p. 153) In the first stage of corporate citizenship:

A. The company must learn how to tackle the problem and make the new policy work.
B. Managers are uninterested and uninvolved with social issues.
C. Supervisors and managers become familiar with new routines that are necessary to cope
with a social problem.
D. A company must institutionalize it new social policy and make it a part of standard
operating procedures.

Difficulty: Medium

24. (p. 154) Once a company enters the innovative stage of corporate citizenship, it will:
A. Begin reporting its efforts to stakeholders.
B. Step up its philanthropic giving.
C. Increase the number of stakeholders to the firm.
D. Build more coherent initiatives with stakeholders.

Difficulty: Hard

25. (p. 154) Companies see the need to build more coherent initiatives as they move into the:
A. Innovative stage.
B. Integrated stage.
C. Engaged stage.
D. Transforming stage.

Difficulty: Medium

7-15
Chapter 07 - Global Corporate Citizenship

26. (p. 154) Managers responding to the needs of the local education system as a normal or
routine aspect of its operations is an example of an organization in the:
A. Innovative stage.
B. Integrated stage.
C. Transforming stage.
D. Engaged stage.

Difficulty: Easy

27. (p. 155) According to a comparative study of corporate citizenship in Latin America and the
Caribbean, which of the following is not one of the four levels of corporate social
responsibility activity?
A. Delayed.
B. Running.
C. Catching up.
D. Stalled.

Difficulty: Medium

28. (p. 155) Argentina and Mexico are at what level of citizenship activity?
A. Delayed.
B. Running.
C. Catching up.
D. Stalled.

Difficulty: Medium

29. (p. 156) Overall, corporate citizenship initiatives are:

A. More advanced in northern than in southern Europe.
B. Less advanced in northern than in southern Europe.
C. Equally advanced throughout Europe.
D. Not making inroads anywhere in Europe.

Difficulty: Medium

7-16
Chapter 07 - Global Corporate Citizenship

30. (p. 156) The executive body of the European Union is called the:
A. Executive Committee.
B. European Council.
C. Governing Body.
D. European Commission.

Difficulty: Hard

31. (p. 156) Shareholder activism is:

A. More pronounced in Europe.
B. More pronounced in the United States.
C. More pronounced in Asia.
D. More pronounced in the Caribbean.

Difficulty: Hard

32. (p. 156) Consumer activism is:

A. More pronounced in Europe.
B. More pronounced in the United States.
C. More pronounced in Asia.
D. More pronounced in the Caribbean.

Difficulty: Hard

33. (p. 156) The differences in corporate citizenship amongst various nations are driven by:
A. Governmental involvement.
B. Stakeholder activism.
C. Cultural traditions.
D. All of the above.

Difficulty: Easy

7-17
Chapter 07 - Global Corporate Citizenship

34. (p. 156) A systematic evaluation of an organization's social, ethical, and environmental
performance is called a(n):
A. Corporate social responsibility review.
B. Stakeholder audit.
C. Independent social review.
D. Social performance audit.

Difficulty: Easy

35. (p. 157) In 2001, the French Parliament passed the "new economic regulations" law which
requires a social performance audit focusing on its impact on:
A. Nuclear safety.
B. The community.
C. Equality in hiring.
D. Environmental initiatives.

Difficulty: Easy

36. (p. 158) Which of the following organizations have developed standards to judge corporate
performance?
A. International Organisation for Standards.
B. Global Development Initiative.
C. Institute of Accountability.
D. All of the above.

Difficulty: Medium

37. (p. 159) The major focus of ISO 14001 is to:

A. Link economic, environmental and social responsibility.
B. Build accountability in the public sector.
C. Support environmentalmanagement standards.
D. Structure effective dialogue with stakeholders.

Difficulty: Hard

7-18
Chapter 07 - Global Corporate Citizenship

38. (p. 159) The United Nations Global Compact is funded by:
A. Membership income.
B. Voluntary government and foundation contributions.
C. Government grants.
D. All of the above.

Difficulty: Hard

39. (p. 160) Global audit social standards concentrate on:

A. Internally focused economic benefits for the firm.
B. Externally focused social benefits for the environment.
C. Externally focused social benefits for key stakeholders.
D. All of the above

Difficulty: Easy

40. (p. 161) Companies in which two countries have taken the lead in social reporting?
A. Japan and United Kingdom.
B. United Kingdom and Italy.
C. Japan and Italy.
D. Spain and France.

Difficulty: Hard

41. (p. 162) Which of the following is not one of the four quadrants of the balanced scorecard
approach?
A. Customer.
B. Internal business processes.
C. External stakeholder relations.
D. Financial.

Difficulty: Medium

7-19
Chapter 07 - Global Corporate Citizenship

42. (p. 163) Which of the following is not a motivation for adopting a balanced score card
approach?
A. Economic considerations.
B. Technological considerations.
C. Ethical considerations.
D. Innovation.

Difficulty: Medium

43. (p. 163) Financial, social and environmental results are reported together in a firm's:
A. Annual report.
B. Code of business conduct.
C. Triple bottom line report.
D. Employee newsletter.

Difficulty: Medium

44. (p. 164) Rolltronics, a Silicon Valley technology company, uses triple bottom line to report
its success with:
A. Donating electronic components to Computers for Education.
B. Providing computer training programs in developing countries.
C. Outsourcing its customer service department to India.
D. Innovating its manufacturing process to reduce costs and protect the environment.

Difficulty: Hard

45. (p. 164) Triple bottom line disclosure is primarily driven by:
A. Noneconomic drivers.
B. Managerial accounting drivers.
C. Economic drivers.
D. Technological advances.

Difficulty: Hard

7-20
Chapter 07 - Global Corporate Citizenship

Short Answer Questions

46. (p. 147 - 149) Define global corporate citizenship. Why has corporate citizenship recently
become so complicated?

Answers will vary

47. (p. 151 - 152) Global corporate citizenship is more than espoused values; it requires action.
Discuss some of the ways forward-thinking companies are changing to improve their ability
to act as responsible citizens.

Answers will vary

48. (p. 152 - 155) Define the five stages of corporate citizenship. Provide an example of a
company in each stage.

Answers will vary

49. (p. 155 - 156) Businesses in many different countries now practice active citizenship. Using
examples from the text, discuss how businesses interpret and act on their global citizenship
commitments.

Answers will vary

50. (p. 156 - 158) What is a social performance audit? Discuss the differences in social
performance auditing in the United States versus Europe.

Answers will vary

7-21
Business and Society Stakeholders Ethics Public Policy Lawrence 14th Edition Test Bank

Chapter 07 - Global Corporate Citizenship

51. (p. 162 - 163) Define balanced score card. What are the four quadrants of the balanced score
card approach?

Answers will vary

52. (p. 163 - 164) How can triple bottom line reporting be used to measure a firm's corporate
citizenship practices?

Answers will vary

7-22

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