Chapter 2—Corporate Citizenship: Social Responsibility, Responsiveness, and
Performance
TRUE/FALSE
1. A society more satisfied with corporate social responsiveness, performance, and citizenship will
invariably have reduced criticism of business.
ANS: F PTS: 1 REF: 35
NAT: AACSB Analytic | Ethical Responsibilities
2. The marketplace in the classical view of economics, while being a good allocator of goods and
services, does not do a good job of ensuring that business always acts fairly and ethically.
ANS: T PTS: 1 REF: 35-36
NAT: AACSB Analytic | Creation of Value
3. Philanthropy is the term by Adam Smith in Wealth of Nations to describe the operation of self interest
resulting in the good of society.
ANS: F PTS: 1 REF: 37
NAT: AACSB Analytic | Individual Dynamics
4. The company town, in which a major employer builds homes and commercial buildings, and provides
the goods and services needed by its employees, is an example of paternalistic social responsibility.
ANS: T PTS: 1 REF: 37
NAT: AACSB Analytic | Ethical Responsibilities
5. In Carroll's four-part definition of corporate social responsibility, ethical responsibilities are required
of business by society.
ANS: F PTS: 1 REF: 41-43
NAT: AACSB Ethics | Ethical Responsibilities
6. In practical terms, the socially responsible firm must be a good corporate citizen.
ANS: F PTS: 1 REF: 48
NAT: AACSB Analytic | Group Dynamics
7. The CSR Pyramid is a stakeholder model--that is, each of its components addresses different
stakeholders.
ANS: T PTS: 1 REF: 45
NAT: AACSB Analytic | Group Dynamics
8. Arguments against corporate social responsibility tend to focus on the ethical category.
ANS: F PTS: 1 REF: 49-50
NAT: AACSB Analytic | Ethical Responsibilities
, 9. An argument for corporate social responsibility is that it helps business compete in the global
economy.
ANS: F PTS: 1 REF: 50-52
NAT: AACSB Analytic | Operations Management
10. Proponents of the concept of corporate social responsiveness believe that the focus of corporate social
responsibility on accountability or obligation is not dynamic enough to describe business's willingness
and activity to respond to social demands.
ANS: T PTS: 1 REF: 50-52
NAT: AACSB Analytic | Ethical Responsibilities
11. Corporate social responsiveness is focused on the action phase of management response to social
demands.
ANS: T PTS: 1 REF: 55
NAT: AACSB Ethics | Group Dynamics
12. Corporate social performance emphasizes the financial results of what the firm hopes to accomplish.
ANS: F PTS: 1 REF: 57
NAT: AACSB Analytic | Environmental Influence
13. Carroll's Corporate Social Performance Model helps managers understand that social responsibility is
separate and distinct from financial performance.
ANS: F PTS: 1 REF: 57-59
NAT: AACSB Analytic | Environmental Influence
14. The corporate social performance concept has not yet spread to the business community.
ANS: F PTS: 1 REF: 57
NAT: AACSB Analytic | Creation of Value
15. A survey done by Walker Information shows that the public thinks that CSR factors impact a
company's reputation even more than its quality, service, and price do.
ANS: F PTS: 1 REF: 48
NAT: AACSB Analytic | Group Dynamics
16. One of the biggest advances in corporate social performance is that the performance criteria for
measuring financial performance and social responsibility have been agreed upon.
ANS: F PTS: 1 REF: 67-70
NAT: AACSB Analytic | Environmental Influence
17. Research has indicated that improvements in corporate social performance are associated with
improved financial results.
ANS: T PTS: 1 REF: 67
NAT: AACSB Analytic | Environmental Influence
Performance
TRUE/FALSE
1. A society more satisfied with corporate social responsiveness, performance, and citizenship will
invariably have reduced criticism of business.
ANS: F PTS: 1 REF: 35
NAT: AACSB Analytic | Ethical Responsibilities
2. The marketplace in the classical view of economics, while being a good allocator of goods and
services, does not do a good job of ensuring that business always acts fairly and ethically.
ANS: T PTS: 1 REF: 35-36
NAT: AACSB Analytic | Creation of Value
3. Philanthropy is the term by Adam Smith in Wealth of Nations to describe the operation of self interest
resulting in the good of society.
ANS: F PTS: 1 REF: 37
NAT: AACSB Analytic | Individual Dynamics
4. The company town, in which a major employer builds homes and commercial buildings, and provides
the goods and services needed by its employees, is an example of paternalistic social responsibility.
ANS: T PTS: 1 REF: 37
NAT: AACSB Analytic | Ethical Responsibilities
5. In Carroll's four-part definition of corporate social responsibility, ethical responsibilities are required
of business by society.
ANS: F PTS: 1 REF: 41-43
NAT: AACSB Ethics | Ethical Responsibilities
6. In practical terms, the socially responsible firm must be a good corporate citizen.
ANS: F PTS: 1 REF: 48
NAT: AACSB Analytic | Group Dynamics
7. The CSR Pyramid is a stakeholder model--that is, each of its components addresses different
stakeholders.
ANS: T PTS: 1 REF: 45
NAT: AACSB Analytic | Group Dynamics
8. Arguments against corporate social responsibility tend to focus on the ethical category.
ANS: F PTS: 1 REF: 49-50
NAT: AACSB Analytic | Ethical Responsibilities
, 9. An argument for corporate social responsibility is that it helps business compete in the global
economy.
ANS: F PTS: 1 REF: 50-52
NAT: AACSB Analytic | Operations Management
10. Proponents of the concept of corporate social responsiveness believe that the focus of corporate social
responsibility on accountability or obligation is not dynamic enough to describe business's willingness
and activity to respond to social demands.
ANS: T PTS: 1 REF: 50-52
NAT: AACSB Analytic | Ethical Responsibilities
11. Corporate social responsiveness is focused on the action phase of management response to social
demands.
ANS: T PTS: 1 REF: 55
NAT: AACSB Ethics | Group Dynamics
12. Corporate social performance emphasizes the financial results of what the firm hopes to accomplish.
ANS: F PTS: 1 REF: 57
NAT: AACSB Analytic | Environmental Influence
13. Carroll's Corporate Social Performance Model helps managers understand that social responsibility is
separate and distinct from financial performance.
ANS: F PTS: 1 REF: 57-59
NAT: AACSB Analytic | Environmental Influence
14. The corporate social performance concept has not yet spread to the business community.
ANS: F PTS: 1 REF: 57
NAT: AACSB Analytic | Creation of Value
15. A survey done by Walker Information shows that the public thinks that CSR factors impact a
company's reputation even more than its quality, service, and price do.
ANS: F PTS: 1 REF: 48
NAT: AACSB Analytic | Group Dynamics
16. One of the biggest advances in corporate social performance is that the performance criteria for
measuring financial performance and social responsibility have been agreed upon.
ANS: F PTS: 1 REF: 67-70
NAT: AACSB Analytic | Environmental Influence
17. Research has indicated that improvements in corporate social performance are associated with
improved financial results.
ANS: T PTS: 1 REF: 67
NAT: AACSB Analytic | Environmental Influence
