CSR EXAM 1 Questions And Correct Answers
(Verified Answers) 2026
The 4 common definitions of CSR - CORRECT ANSWER -1. A firm's moral obligations
towards its stakeholders, focused on a firm's responsibilities or adherence to ethical norms.
2. The social responsibility of business that encompasses the economic, legal, ethical &
discretionary expectations that society has of organizations at a given time.
3. Redefining business success by adopting the triple bottom line perspective
4. The policies and practices an organization used to manage stakeholder relationships, & an
increasing number of firms are attempting to use CSR practices as a source of some type of
advantage while creating positive social value for its stakeholders.
3 categories of CSR Motives - CORRECT ANSWER -1. Instrumental
2. Relational
3. Moral
Instrumental Motives - CORRECT ANSWER -shareholder interests (short-term) -- long term
survival through ensuring security of livelihood; maintenance of a certain standard of living.
Relational Motives - CORRECT ANSWER -stakeholders interests, legitimation/collective
identity
- active in social issues with the conscious awareness of the positive influence that the
owner/manager perceives this will have on their business.
Moral Motives - CORRECT ANSWER -stewardship interests, higher-order values
- social values are actions that are integrated into the business life and take priority over
maximizing profit.
, managing the potential conflict between a company's principals and its agents - CORRECT
ANSWER -the governance structure is the main vehicle for managing this conflict -- the board
of director exists to ensure organizational transparency and to have strategic oversight of the
CEO and to represent the shareholder interest.
the 4 principles of good governance - CORRECT ANSWER -1. Independence - have a minimal
number of directors who are former executives or contractors to the firm.
2. Stock Ownership - when directors own stock it aligns their interests with shareholders'
3. Director Quality - directors add value when they have industry experience, &/or have
managed firms of a similar size; they should limit the number of boards on which they sit and
should attend 75% of these meetings.
4. Board Activism - boards should meet often & without management present in the room.
Continental Model of CSR - CORRECT ANSWER -Longterm debt finance, ownership by large
block-holders, weak markets for corporate control and rigid labor markets. (Japan)
Anglo-American Model - CORRECT ANSWER -Dispersed ownership expecting short term
returns, strong shareholder rights, arm's-length creditor financing through equity, active markets
for control, and flexible labor markets. (CSR is a tougher sell)(USA)
Value chain partners - CORRECT ANSWER -all entities invlolved in the entire system, or chain
of activities through which a firm creates & delivers its products and/or services.
External value chain partners - CORRECT ANSWER -includes entities involved in outsources
functions, strategic partners and suppliers
Global Value Chain - CORRECT ANSWER -(1990) far-reaching consequences for international
investment, global & local economies, the competitive context in most industries, & daily life for
most of the world's population.
4 strategies for suppliers and value chain partners - CORRECT ANSWER -1. Shape expectations
of suppliers & other stakeholders
(Verified Answers) 2026
The 4 common definitions of CSR - CORRECT ANSWER -1. A firm's moral obligations
towards its stakeholders, focused on a firm's responsibilities or adherence to ethical norms.
2. The social responsibility of business that encompasses the economic, legal, ethical &
discretionary expectations that society has of organizations at a given time.
3. Redefining business success by adopting the triple bottom line perspective
4. The policies and practices an organization used to manage stakeholder relationships, & an
increasing number of firms are attempting to use CSR practices as a source of some type of
advantage while creating positive social value for its stakeholders.
3 categories of CSR Motives - CORRECT ANSWER -1. Instrumental
2. Relational
3. Moral
Instrumental Motives - CORRECT ANSWER -shareholder interests (short-term) -- long term
survival through ensuring security of livelihood; maintenance of a certain standard of living.
Relational Motives - CORRECT ANSWER -stakeholders interests, legitimation/collective
identity
- active in social issues with the conscious awareness of the positive influence that the
owner/manager perceives this will have on their business.
Moral Motives - CORRECT ANSWER -stewardship interests, higher-order values
- social values are actions that are integrated into the business life and take priority over
maximizing profit.
, managing the potential conflict between a company's principals and its agents - CORRECT
ANSWER -the governance structure is the main vehicle for managing this conflict -- the board
of director exists to ensure organizational transparency and to have strategic oversight of the
CEO and to represent the shareholder interest.
the 4 principles of good governance - CORRECT ANSWER -1. Independence - have a minimal
number of directors who are former executives or contractors to the firm.
2. Stock Ownership - when directors own stock it aligns their interests with shareholders'
3. Director Quality - directors add value when they have industry experience, &/or have
managed firms of a similar size; they should limit the number of boards on which they sit and
should attend 75% of these meetings.
4. Board Activism - boards should meet often & without management present in the room.
Continental Model of CSR - CORRECT ANSWER -Longterm debt finance, ownership by large
block-holders, weak markets for corporate control and rigid labor markets. (Japan)
Anglo-American Model - CORRECT ANSWER -Dispersed ownership expecting short term
returns, strong shareholder rights, arm's-length creditor financing through equity, active markets
for control, and flexible labor markets. (CSR is a tougher sell)(USA)
Value chain partners - CORRECT ANSWER -all entities invlolved in the entire system, or chain
of activities through which a firm creates & delivers its products and/or services.
External value chain partners - CORRECT ANSWER -includes entities involved in outsources
functions, strategic partners and suppliers
Global Value Chain - CORRECT ANSWER -(1990) far-reaching consequences for international
investment, global & local economies, the competitive context in most industries, & daily life for
most of the world's population.
4 strategies for suppliers and value chain partners - CORRECT ANSWER -1. Shape expectations
of suppliers & other stakeholders
