BA 342 EXAM 3 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

BA 342 EXAM 3 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 EAP - Answers Excellent Performance Academic Integrity Professional Behavior In the list below which BEST captures what we have learned from the financial times about "responsible leadership" (the baseline definition)? a) builds relationships with customers and suppliers b) seeks to provide more benefits today than the future c) creates jobs and earns a profit for shareholders d) makes business decisions taking into account stakeholders e) develops long-term investments - Answers d) makes business decisions taking into account stakeholders In class, we looked at how firms respond to the pressures applied to them to engage in CSR. When CVS eliminates cigarettes because of the threat to government and public pressure, they are taking what approach to CSR? a) defensive b) strategic c) cost/benefit d) innovation e) commercial - Answers a) defensive Remember King John signing a set of laws to give average citizens rights - called it the Magna Carta. We have a consumer Magna Carta. Which below is not apart of that? a) comfort b) safety c) informed d) choice e) heard - Answers a) comfort Today you've joined a team of all Smeal majors at your company to work on a new ad campaign. You consider using the "discount" option. What ad issue might reflect this? a) ambiguous b) psychology c) exaggeration d) concealment e) misleading - Answers a) ambiguous Product liability - a critical customer stakeholder issue. Imagine leading new product development at P&G. You decide to take "complete responsibility" for all products. What view of product liability are you applying? a) due cost b) caveat emptor c) contractual d) caveat vendor e) social cost - Answers e) social cost Due process when conducted not in the legal system is called? - Answers Alternative Dispute Resolution Corporate Social Responsibility - Language check - Answers Sustainability is the most used term (50%) -- environment, social, community Corporate social responsibilty (CSR) -- 25% Other -- 25% (responsibility, citizenship) Carroll's four‐part definition of corporate social responsibility includes - Answers Economic Legal Ethical Philanthropic Corporate social performance model - social responsibility - philosophy (or mode) or social responsiveness - social (or stakeholder) issues involved 3 requirements for an executive resume video - Answers Money: how much have you managed? trust? can you manage money? People: can you recruit and develop people? being able to lead a group of large amounts of people? Giving back to stakeholders: nonprofit boards, volunteer program (ex: KPMG video and B-Corp video) KPMG video - Answers Dr. Michael Hasting - Director of corporate citizenship for KPMG - CSR opportunity individuals have to be a positive influence on the community - People should love to make a difference like they love to do anything - connecting corporations to responsibility CSR is the opportunity individuals have to contribute to the needs of the community BIG 5- Business and stakeholders - Answers Community - environmental groups, public Government - local, federal, state Employees - union, older, women, minority, activists Consumers - consumer activities, product liability Owners - private, corporate, institution Past verse future stakeholder model - Answers 20th century: shareholder value (profit) 21st century: stakeholder value B-Lab example - Answers Benefits corporation -- 33 states allow you to legally organize this way (type of business) -- ex: Hershey takes care of local schools B-Lab: nonprofit that provides rewards and certifications to other nonprofits - run my company under benefit for the community Warby Parker and B-Corp - Answers WB Commercial video - each pair of glasses bought, one is given to someone in need - companies can do good in the world, be affordable, and be beneficial - 1 million glasses distributed - goal: "using business as a force for good" Corporate Social Responsibility Definition - Answers A company moving from shareholder value to stakeholder value by valuing communities, governance, employees, consumers, and understanding the needs of multi-level stakeholders seriously considering the impact of the company's actions on society Responsibility - Answers The ability or authority to act or decide on one's own without supervision Can you do the right thing? Responsible leadership - Answers Making business decisions that takes into account stakeholders, such as workers, clients, suppliers, the environment, the community, and future generations Financial Times Definition Hurricane Katrina/ Walmart case - Answers Hurricane destroyed New Orleans - 1700 killed, 700 missing (sweep to sea, eaten by alligators) Walmart decided to be a stakeholder corporation during this time - 100 stores in the area destroyed - brought 500 trucks with supplies - when there is a tragedy they need to get back online very quickly - During Hurricane people want water and pop tarts Most important things 1. support associates (people, jobs) 2. community (opened stores) 3. operations (free supplies: bulldozed entrance) Least important thing is making a profit Who saved New Orleans? - The Business community (Walmart, Home Depot, Lowes) Houston and Florence Hurricane/ Walmart Business Case - Answers Walmart emergency cop center 2018 - close stores for the safety of the employees - keep shelves stocked in stores that remain open Walmart donations - water, batteries, generators, cereal, fruit/vegetables, meat, bars, pop tarts, mops - 730 trucks water, 660 trucks emergency stuff Walmart Pros and Cons - Answers Pros: - customers - 200M/week visiting - largest compay - $5000B/ year - 10,800 stores, 27 countries - 1.4M employees in US (2.3 total) - $1.4B cash and $2.2M hours donated - Sustainability drives - Saved the gulf Walmart and Sam's club graphic - when you have many stores you can make a huge difference during a disaster Positives verse negatives but can do that for any company - no company is perfect Cons: - downtown declines - puts mom/pop stores out of business - green becomes pavement - consumerism - buy more stuff - closed culture led many activists to fight company - workforce issues (wages, overtime, gender) - legal issues (63 class actions settled) - bribery scandal in Mexico 2012 - 17 lawsuits opened each day Doug McMillion - CEO of Walmart video - Answers Philadelphia (Nov 2016) - Net impact continued - sent 500 trucks of supplies after hurricane - How to become a stakeholder in a company? - Technology, healthy foods, engaged employees - By 2025 zero waste in 4 largest markets - 100% renewable energy - Transparency & quality leader - Forests: zero net deforestation - Food: 2x sales local, less additives and sugar - 100% recycled packaging - Ladder of opportunity jobs/careers (training 250k) - $20 billion WBE, MBE - Human rights: international sourcing - Communities: $1.4 billion in donations/year - $25 million fund disaster relief - Sustainability throughout supply chain Movie - Concussion (2015) - Answers Biggest Threat to NFL -- Parents aren't putting their kids into football because it is too dangerous - cost of injuries - decreasing football What makes you a good citizen? - Answers - follow law - be kind - pay taxes - ethical actions - respecting environment - work hard/ be productive - investing locally - volunteering - etc. This list applies to us as individuals AND corporations - Individuals and corporations need to do the same thing License to Operate - Answers the right to do business informally conferred by society on a business firm; must be earned through socially responsible behavior Operating as a stakeholder company - Positive CSR is key to our license to operate Business and Responsibility - Intangibles: 53% of total value of fortune 500 or about $24.27 trillion (Coke 96% of value) - Consumers: 85% reputation responsibility key (competitiveness and market positioning) - Risk management: Government, NGO's, legal - Employees: 3 of 5 want to work for a values company - Investors: 86% institutional investors - Operations: innovation, energy, waste, water 3 Types of Corporate Social Responsibility - Citizenship - Answers 1. Corporate social responsibility: emphasis on obligation and accountability 2. Corporate social responsiveness: emphasis on action and activity 3. Corporate social performance: emphasis on outcomes and results Microsoft and Gates Foundation example - Answers GatesF - we are impatient optimists working to reduce inequality - empower the poor, combat diseases, and inspire people to take action - we are going to work on outcomes John Mackey - CEO whole Foods - Answers Conscious Capitalism book 4 Tenets: - higher purpose: why your business exists (not profit) - stakeholder orientation: care for everyone in the ecosystem - conscious leadership: inspire the best out of people and keep business focused on higher purpose - "we" before "me" - conscious culture: fosters love and care and builds trust between a company's team members and its other stakeholders - culture is the heartbeat of a company Using the free market from a stakeholder perspective Newer corporate social responsibility - citizenship - Answers 1. corporate citizenship 2. corporate responsibility 3. sustainability 4. creating shared value 5. conscious capitalism CSR Business Case - Big 6 reasons - Answers 1. innovation 2. cost savings 3. brand differentiation 4. long-term thinking 5. customer engagement 6. employee engagement CSR Business case - Core Benefits - Answers 1. new business 2. customer retention 3. better relations with stakeholders 4. attract/retain employees 5. decrease costs 6. enhanced reputation 7. increased investment 8. better media relations How Firms Respond to CSR Pressure - Answers 1. Defensive (garments): Doing very little with CSR and if something happens you deal with it - protecting themselves from government and public pressure 2. Cost/benefit (DuPont): Is it more expensive to fix the problem or pay the fines with it - plant was making people sick - add process for $30M - protect employees - social responsibility 3. Strategic (IBM): Entire business model is based around CSR - Becoming more and more valued - Important even during the recession 4. Innovation (Tesla): Using CSR to create new processes - Elon Musk CVS pressure example - Answers Started as health and beauty store - then added pharmacy and bought other pharmacies (target) - then minute clinics - then changes name to CVS Health and stopped selling cigarettes in 2014 - socially responsible - uses all 4 responses 1. defensive: wants to be a health company and cigarettes are not compatible - good public relations 2. cost/benefit: lose $2M but doctor will come work for them now 3. strategic: switching to become a health company - bought a health insurance company 4. innovation: changing the industry Patagonia pressure example - Answers repairs products, reduces consumption, and reduces what people buy - don't buy this jacket ad 1. defensive: public perception about quality of products 2. cost/benefit: charge you more for item and build possibility of repair 3. strategic: buy higher quality things and don't buy them often 4. innovation: changing the industry - don't buy this jacket ad Corporate performance - financial and social - Answers positive social - positive financial = positive reputation Interdependence of social and financial performance leads to a positive reputation Social company: more customers - better financial Financial company: can afford to invest in social Unilever - CEO Paul Polman - Sustainability plan for future - Answers Plan for future: Double size by reducing environmental impact and increasing positive social performance Unilever - 3 key areas that allow them to grow - Answers 1. Climate change - fight deforestation 2. food scarcity - sustainable agriculture 3. water, sanitation, hygiene Unilever - 3 areas of sustainable living - Answers 1. improving health and well-being for more than 1 billion 2. reducing environmental impact by half 3. enhancing livelihoods for millions Economic Invisible Hand - Adam Smith - Answers Scotland "A Wealth of Nations" Published 1776: free market capitalism "Theory of Moral Sentiments" Published 1756: ethics Social responsibility: people in small towns helping each other - individuals trying to engage CSR - The history - Answers 1. economic model - 1700+ (Adam Smith) 2. legal model - 1800+ (responsibility - child labor, pay very little, dangerous jobs, injuries and death) - "letter of the law" - Can't hire children -- Fair Labor Act (more education), Exceptions (farming, family business, child actors) 3. social model - 1850+ (taking into account working conditions, addressing that employees are people, Andrew Carnegie donated many libraries around the country (philanthropic approach)) 4. stakeholder model - 1950+ Iron Law of responsibility - Answers In the long run, those who do not use power in a manner which society considers responsible will tend to lose it 4 part pyramid for CSR = Total corporate social responsibility - Answers Philanthropic: take a citizenship approach - desired/expected by society Ethical: do right and avoid harm - expected by society legal: obey the societies laws - required by society economic: foundation - make a profit - required by society Stockholders verse stakeholders - Answers Stockholders: owners Stakeholders: interests The Case New Holland - A CSR Story - Answers A stakeholder story CNH- make agricultural and construction equipment Bellville, PA - manufacturing plant - population 1,800 - 2010 census - very small Amish town - 2011 - going to close this plant because it is literally not necessary Stakeholder issues? - people losing their jobs, families, communities, government, local companies, future workers, investors, relocation, media, customer, suppliers, competitors, etc. - what to do with building, equipment in building, opportunities in town are low, don't have a lot of education Could cause a lot of harm is don't handle stakeholders well Views of the firm - Answers Production view - The most traditional - Owners think of stakeholders as only those individuals or groups that supplied resources or bought products or services - supplier of raw materials -- The firm (processor) -- consumers of products Managerial view - Emerged afterward because businesses began to see their responsibilities with other major constituent groups (owners and employees) as a key to success - owners, employees, consumers, suppliers all have a two way relationship with the firm (managers) Stakeholder view - The radical conceptual shift to the firms multilateral relationships with constituent or stakeholder groups - Where the "Big 5" stakeholders and their subsets are taken into account - encompassed numerous different individuals and groups that are embedded in the firms internal and external environment - Business has a two way relationship with government (federal, local, state), employees (minorities, older employees, unions, activists, women), Owners (private citizens, institutional groups, board members), consumers (average consumers, product liabilities, social activists), community (general public, environmental groups, civic groups) - shareholder map Primary verse secondary shareholders - Answers Primary = direct - employees - investors - consumers - communities - suppliers - natrural envionrment - future generations - nonhuman species secondardy = indirect - governemnt - institutions - social pressure - media - comprtitors - trade bodies - envionment - animal welfare organizations Stakeholder attributes - Answers Legitimacy Power urgency Values of stakeholder model - Answers Descriptive value - language and concepts to describe organization in stakeholder terms Instrumental value - effective stakeholder management - similar to strategic appraich normative value - how stakeholder SHOULD be treated Stakeholder management - Answers who are the firm's stakeholders What are the stakeholders stakes? - legitimacy, power, urgency What opportunities and challenges do out stakeholders present? - potential or threat What responsibilities does the firm have toward stakeholders? - economic, legal, ethical, philanthropic? What strategies or actions should the firm take to best address stakeholders? Pros and Cons of CSR - Answers Pros - Enlightened self-interest - Warding off government regulations - Resources available - Proaction better than reaction - Public support Cons - Classic economics - Business not equipped - Dilutes business purpose - Too much power already - Global competitiveness 5 Stages of Citizenship Development - Answers Elementary