Corporate Governance and CSR Quiz

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What is a primary advantage of a unitary board structure?

Faster decision-making (correct)

Clear separation of roles

Increased conflicts of interest

Slow decision-making

Which of the following is a disadvantage of a multi-tier board?

Slow decision-making (correct)

Enhanced collaboration

Greater accountability

Unified vision

How does a unitary board typically handle roles among its members?

Leads to less groupthink

Creates a clear separation of power

Enhances accountability

Mixes management and supervision (correct)

What is a significant advantage of a multi-tier board over a unitary board?

Less conflicts of interest (B) Signup and view all the answers

Which statement best reflects a disadvantage of a unitary board?

Unclear separation of power (A) Signup and view all the answers

What is the primary goal of Corporate Social Responsibility (CSR)?

Contributing positively to society and the environment (D) Signup and view all the answers

Which business challenge involves managing diverse expectations across different cultures?

Globalization (B) Signup and view all the answers

Which of the following is NOT a typical response businesses might take towards CSR?

Invest in extensive CSR programs (B) Signup and view all the answers

What can result from a firm having weak CSR practices?

Loss to competitors with better CSR (C) Signup and view all the answers

What does the concept of CSR encompass?

Goals, sustainability, responsibility, ethics, resources (C) Signup and view all the answers

What is a characteristic of the rules-based approach?

Encourages obedience through fear (B) Signup and view all the answers

Which statement accurately describes the principle-based approach?

It allows for flexibility and values discretion. (D) Signup and view all the answers

Which of the following concepts is associated with the rules-based approach?

Detection and punishment (B) Signup and view all the answers

How does the principle-based approach differ from the rules-based approach?

It allows compliance to be explained rather than just mandated. (A) Signup and view all the answers

What is a primary influence on decision-making in the principle-based approach?

Judgment and values of the individuals involved (D) Signup and view all the answers

What is one benefit of meeting stakeholder needs?

Improved reputation (B) Signup and view all the answers

What is a potential drawback of addressing stakeholder needs?

Alienation of certain stakeholder groups (B) Signup and view all the answers

What is the purpose of stakeholder mapping?

To inform decision-making and communication based on influence (C) Signup and view all the answers

Which of the following statements is true regarding the influence of stakeholders?

Different stakeholders have varying degrees of influence (A) Signup and view all the answers

What should be avoided when considering stakeholder needs?

Compromising the organization's objectives (A) Signup and view all the answers

What is the primary role of an Executive Director?

To make strategic decisions focused on the firm's objectives. (B) Signup and view all the answers

Which statement accurately describes a Non-Executive Director?

A stakeholder representative who provides unbiased strategic perspectives. (C) Signup and view all the answers

What is the main characteristic of a Defacto Director?

They are accountable in courts despite not being appointed. (B) Signup and view all the answers

What distinguishes an Alternate Director from other directors?

They act on behalf of an existing director when that director is unavailable. (A) Signup and view all the answers

Which of the following describes a Shadow Director?

They provide advice that is followed by the appointed directors. (A) Signup and view all the answers

What does the Pyramid Model imply about a firm's progression in social responsibility?

Firms' social responsibility increases as they progress upwards. (D) Signup and view all the answers

How does the Intersecting Circles Model differ from other CSR models?

It allows for any combination of factors, without a strict order. (B) Signup and view all the answers

Which of the following is NOT listed as a challenge to CSR?

Over-regulation of business practices. (B) Signup and view all the answers

What does CSR fatigue refer to?

The overwhelming feeling due to constant CSR commitments. (B) Signup and view all the answers

What might firms experience during economic downturns in relation to CSR?

Pressure to reduce CSR efforts for profitability. (C) Signup and view all the answers

What is the primary aim of corporate governance?

To ensure companies operate in the interests of shareholders and the community (A) Signup and view all the answers

Which pillar of corporate governance focuses on ensuring all shareholders are treated equally?

Fairness (C) Signup and view all the answers

What characteristic is essential for avoiding conflicts of interest in corporate governance?

Independent directors and advisors (D) Signup and view all the answers

Which of the following best describes the transparency pillar of corporate governance?

Accurate and timely disclosure of all significant matters (A) Signup and view all the answers

Which of the following is NOT an aim of corporate governance?

Justifying excessive executive compensation (B) Signup and view all the answers