Professional Documents
Culture Documents
True/False
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.
Answer: T
Page: 138
3. Robert Civita, chairman and CEO of the Brazilian Abril Group, has defined global corporate
citizenship as “socialism with a conscience.”
Answer: F
Page: 139
4. According to The Economist, corporate citizenship is becoming increasingly important for the
long-term health of companies.
Answer: T
Page: 139
6. Global corporate citizenship activities help companies create legitimacy, reputation, and
competitive advantage.
Answer: T
Page: 140
7. Companies whose citizenship profile best matches public expectations are least likely to benefit
from strategic investments in corporate citizenship.
Answer: F
Page: 140
8. A company earns its “license to operate” through filing its proper legal documents.
Answer: F
Page: 142
9. There is no single universally accepted method for designing a CSR management structure.
Answer: T
Page: 142
10. In the first stage of corporate citizenship, the elementary stage, managers are uninterested and
uninvolved with social issues.
Answer: T
Page: 144
11. If a company acknowledges the need to build more coherent initiatives, it is in the innovative
stage of becoming a corporate citizen.
7-1
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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 07 - Global Corporate Citizenship
Answer: F
Page: 145
12. Corporate citizenship partnerships can exist between companies and stakeholders in other
countries.
Answer: T
Page: 146
13. Social audits look at what an organization does, not at the results of the actions.
Answer: F
Page: 147
14. An emerging trend in corporate reporting is the integration of legally required financial
information with social and environmental information into a single report.
Answer: T
Page: 153
15. Triple bottom line reporting requires that a firm report financial data.
Answer: T
Page: 153
Multiple Choice
16. When a company puts its commitment to social and environmental responsibility into practice
worldwide, not only locally or regionally it is called:
A. Corporate Social Responsibility.
B. Global Sustainability.
C. Global Corporate Citizenship.
D. Community Investing.
Answer: C
Difficulty: Easy
Page: 138
17. According to a survey conducted by The Economist in 2008, how many respondents say corporate
citizenship can help increase their companies’ profits?
A. 11%.
B. 25%.
C. 74%.
C. 91%.
Answer: C
Difficulty: Medium
Page: 139
Difficulty: Easy
Page: 139
21. BSR (formerly Business for Social Responsibility) helps its 300 member companies:
A. Lobby Congress for socially responsible legislation.
B. Discover tax shelters for social program expenditures.
C. Conduct social audits.
D. Develop sustainable business strategies.
Answer: D
Difficult: Medium
Page:142
22. Asian Forum on Corporate Social Responsibility gives awards for excellence in:
A. Environmental management.
B. Education.
C. Poverty alleviation.
D. All of the above.
Answer: D
Difficulty: Medium
Page: 144
23. This inter-American organization (North and South America) was created to unite organizations
focusing on corporate social responsibility from Canada to Chile.
A. Business for Social Responsibility.
B, Canadian Business for Social Responsibility.
C. Forum Empresa.
D. Fundacion Empresa y Sociedad.
Answer: C
Difficulty: Hard
Page: 144
7-3
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 07 - Global Corporate Citizenship
24. According to Philip H. Mirvis’ and Bradley K. Googins’ model, how many stages are there of
global corporate citizenship?
A. Three.
B. Five.
C. Seven.
D. Twelve.
Answer: B
Difficulty: Easy
Page: 145
25. 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.
Answer: A
Difficulty: Hard
Page: 145
26. 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.
Answer: B
Difficulty: Medium
Page: 145
27. 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.
Answer: C
Difficulty: Easy
Page: 145
28. The Ronald McDonald House charity, operated by McDonald’s has been criticized for:
A. Providing homes-away-from home for the families of seriously ill children being treated in
hospitals.
B. Diverting attention away from the company’s contributions to the nation’s obesity epidemic.
C. Using company profits to fund social missions.
D. Paying employees low wages.
Answer: B
Difficulty: Easy
Page: 146
7-4
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 07 - Global Corporate Citizenship
29. There remain regional differences in the corporate citizenship challenges facing businesses due to:
A. Globalization.
B. Differences in attitudes, beliefs and culture.
C. Differences in CEOs’ opinions on corporate citizenship.
D. Stakeholder demands.
Answer: B
Difficulty: Hard
Page: 146
31. According to the scholar Simon Zadek six benefits of social audits include all of the following
except.
A. Helping businesses know what is happening within their firm.
B. Understanding what stakeholders think about and want from the business.
C. Strengthen the loyalty and commitment of stakeholders.
D. Outperforming competitors financially in a businesses’ industry.
Answer: D
Difficulty: Medium
Page: 147
32. 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.
Answer: A
Difficulty: Medium
Page: 148
C. Government grants.
D. All of the above.
Answer: B
Difficulty: Hard
Page: 148
36. This Switzerland-based pharmaceutical firm was an early adopter of the Global Compact and used
it to update its code of conduct.
A. Novartis.
B. Bayer.
C. Johnson & Johnson.
D. The Gap.
Answer: A
Difficulty: Medium
Page: 149
37. The Universal Declaration of Human Rights states that each person:
A. Has a right to life, liberty and the pursuit of happiness.
B. Is created equal in the eyes of the government.
C. Has the right to a standard of living adequate for the health and well-being of himself and of his
family.
D. Has the right to a standard of living that meets each countries’ minimum wage law.
Answer: C
Difficulty: Medium
Page: 149
39. The emerging trend in gathering audit information directly from workers using their mobile
phones is called:
A. Network-sourcing.
B. Crowd-sourcing.
C. Social networking.
7-6
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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 07 - Global Corporate Citizenship
D. Mobile auditing.
Answer: B
Difficulty: Medium
Page: 151
40. When a company decides to publicize information collected in a social audit, this is called:
A. Environmental auditing.
B. Corporate financial reporting.
C. Corporate social reporting.
D. Stakeholder management.
Answer: C
Difficulty: Medium
Page: 151
42. Which of the following is not a motivation for publishing a corporate social report?
A. Ethical concerns.
B. Economic considerations.
C. Stakeholder engagement.
D. Avoiding transparency.
Answer: D
Difficulty: Easy
Pages: 153
43. Financial, social and environmental results are reported together in a firm’s:
A. Financial reports if a publicly traded firm.
B. Code of business conduct.
C. Triple bottom line report.
D. Employee newsletter.
Answer: C
Difficulty: Medium
Page: 153
44. Sanford Limited, a small fishing company in New Zealand, made the following commitment(s) in
its first triple bottom line report released in 2007:
A. To ensure that its operations were the best in the industry.
B. To maximize positive social outcomes and economic growth and prosperity.
C. To avoid going overboard with its social mission.
D. All of the above.
7-7
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 07 - Global Corporate Citizenship
Answer: B
Difficulty: Medium
Page: 154
46. Define global corporate citizenship. Why has corporate citizenship recently become so
complicated?
Page: 138 – 139
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.
Page: 140
48. Define the five stages of corporate citizenship. Provide an example of a company in each stage.
Page: 145
49. What is a social audit? Describe one of the three ways audit standards can be created.
Page: 147
51. Define transparency. How does corporate reporting increase business transparency?
Page: 151
52. How can triple bottom line reporting be used to measure a firm’s corporate citizenship practices?
Page: 153 – 154
7-8
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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