TTOU2212 Week 6 CSR Review Questions

The economic paradigm can be described as "Doing well by doing good."

• True

• False

Answer explanation

Social Paradigm: “Doing well by doing good”

versus

Economic Paradigm: “Doing good by doing well”

All of the following are elements of CSR except:

• Corporations have responsibilities beyond producing services

• Corporations have impacts beyond simple marketplace transactions

• A corporation's purpose is profit maximization

• Corporations have a responsibility to solve social problems.

A travel agency practices CSR. The benefit to the agency includes all of the following except:

• Employee Retention

• Risk Management

• Reputation / Brand Management

• Lower Legal Costs

Corporations are legitimate because they have been granted ____ by society.

Answer explanation

The Principle of Legitimacy in CSR: Refers to society’s granting of legitimacy and power to business, and business’s appropriate use of that power AND the possibility of losing that power.

Page 70 – direct quote

Corporations and society are interwoven rather than distinct entities.

• True

• False

What type of CSR is this? A tour operator provides / gives money to a school in Mexico:

• Economic

• Corporate Donation

• Legal

• Social Enterprise

Social enterprises seek:

• Primarily financial profit

• Social change - solve a problem in society

• Welfare management

• Social media business opportunities

Social enterprises are always not for profit businesses or organizations.

• True

• False

Small businesses confront fewer social and ethical issues experienced by large business.

• True

• False

Answer explanation

                                          i.    Is it harder for small companies to “do” CSR compared with large companies? Suggested Resource: See Table 5.4: page 80)

                                        ii.    Small businesses operate in a local area or community. Their CSR performance is noticed by residents—residents who are likely also customers!

                                       iii.    Entrepreneurs may simply be interested in ethical behaviour and carrying out their responsibilities to society. Their business customers may require it. In other words, it pays!

An argument by shareholders against corporate social responsibility (giving donations) is:

• Funds belong to shareholders

• Business is part of society

• too many guidelines