Corporate Governance and Sustainability Quiz

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Which of the following best describes a significant internal challenge faced by the organization prior to implementing major changes?

A hierarchical structure that expedited decision-making processes.

Shareholders' lack of interest in clear targets for sales and market share.

A lack of passionate staff dedicated to sustainability and the company's mission.

The absence of a clear strategy, measurable targets, and business experience among staff. (correct)

What was the primary purpose of hiring a new CEO as part of the internal organizational changes?

To guide the company with a more professional, results-driven approach. (correct)

To focus primarily on increasing sales and market share while ignoring the sustainability aspects.

To introduce a more democratic decision-making process.

To reduce the focus on fair trade and worker's rights.

Which of the following is NOT a stated reason for the implementation of the Fairphone 3?

Maximizing profit margins by cutting production costs using cheaper materials. (correct)

Reducing electronic waste through a repairable, modular design.

Ensuring fair wages and safe working conditions for workers.

Ethical sourcing by using conflict-free minerals and recycled materials.

What was the target market positioning for the Fairphone 3?

Positioned in the mid-market, focusing on recycled materials. Signup and view all the answers

Which consumer segment is primarily described as supporting fair trade and reducing environmental harm?

The 'Dark Greens' segment. Signup and view all the answers

According to Milton Friedman, what is the sole social responsibility of a business?

To use its resources to increase its profits. Signup and view all the answers

According to Peter Drucker, what is the role of management's accountability?

To consider the interests of shareholders as one of the areas of accountability. Signup and view all the answers

In the context of stakeholder theory, who are the residual claimants to a firm's assets?

The shareholders of the firm Signup and view all the answers

What percentage of UK and US managers, surveyed by Masaru Yoshimori, believed the company’s objective is to primarily serve shareholders?

89% Signup and view all the answers

What percentage of Japanese managers believe that a company belongs to its stakeholders rather than solely to its shareholders?

97% Signup and view all the answers

Which of the following is considered a primary stakeholder?

Local Community Signup and view all the answers

What type of value is represented by the acquisition of knowledge and capabilities?

Operational intrinsic value Signup and view all the answers

What differentiates secondary stakeholders from primary stakeholders?

Secondary stakeholders have no essential direct influence on the firms’ durability. Signup and view all the answers

Which of the following best describes Bowen's (1953) definition of the social responsibilities of business executives?

To pursue policies aligned with societal goals and values. Signup and view all the answers

According to Davis (1960), what is the key factor that should influence the social responsibilities of businessmen?

The social power they possess. Signup and view all the answers

In the 1960s, how did McGuire describe a firm's responsibility?

Extended to including political and social welfare interests. Signup and view all the answers

During the 1950s and 1960s, what was the primary form in which CSR was practically implemented?

With a mainly philanthropic approach. Signup and view all the answers

In the 1980s, how did Jones view Corporate Social Responsibility (CSR)?

As a decision-making process influencing corporate behavior. Signup and view all the answers

Which of the following was NOT a significant societal concern related to corporate behavior in the 1980s?

Shareholder activism. Signup and view all the answers

What key aspect of corporate behavior did the 1990s emphasize regarding social responsibility?

The international impact, due to globalization. Signup and view all the answers

What does Freeman's 1984 work on corporate social responsibility primarily emphasize?

The importance of stakeholders and their expectations Signup and view all the answers

What is the primary focus of organizations operating in 'Zone B' according to the provided model?

Balancing competing values while aligning stakeholder interests and moderate risk aversion Signup and view all the answers

Which of the following best describes the behavior of organizations in 'Zone C'?

Risk-seeking, investing in bold solutions and sustainable practices for growth Signup and view all the answers

Which of these actions is least likely to be observed by a company operating in 'Zone A'?

Investing in innovative projects that may yield high rewards but carry high risk Signup and view all the answers

What is a key element for long-term value creation?

Pursuing joint value creation by integrating stakeholder values Signup and view all the answers

What was a significant issue related to the collapse of Enron?

They used Special Purpose Entities (SPEs) to hide large losses. Signup and view all the answers

What was the central problem associated with Theranos?

Their diagnostic test results were consistently unreliable, with the Edison device in particular failing requirements. Signup and view all the answers

Which of the following best describes the relationship between perceived legitimacy and potential for corporate failure?

Even with perceived legitimacy, companies can collapse due to fraudulent practices. Signup and view all the answers

What should companies NOT do to establish long-term value creation?

Prioritize shareholder value over that of all other stakeholders. Signup and view all the answers

What is the primary material used by Dell in their ocean plastics initiative pilot project in Haiti?

High-density polyethylene (HDPE) Signup and view all the answers

What is the primary goal of the Dell Ocean Plastics Initiative?

To use ocean-bound plastics in their supply chain. Signup and view all the answers

Which organization is a key partner with Dell in their ocean plastics initiative?

Lonely Whale Signup and view all the answers

In which year did Dell commence its pilot supply chain project in Haiti, as part of its ocean plastics initiative?

2016 Signup and view all the answers

By 2025, what is Dell's commitment regarding its use of ocean plastics?

To increase the use of ocean plastics ten-fold. Signup and view all the answers

What material did Dell use to package its products made from ocean-bound plastic?

Molded plastic trays Signup and view all the answers

According to the handout, what does DHL Envirosolutions specialize in?

Reverse logistics and e-waste recycling Signup and view all the answers

What is one of the challenges Dell recognized in scaling up its ocean plastics initiative?

Internal stakeholder buy-in Signup and view all the answers

What is Dell's 'moonshot' goal for packaging by 2030?

100% of packaging from recycled or renewable materials Signup and view all the answers

What is the significance of the 'NextWave' initiative in the context of Dell's ocean plastic efforts?

A consortium of like-minded companies working on ocean-bound plastics Signup and view all the answers

Which of the following is NOT a key development in the evolution of Corporate Social Responsibility (CSR) during the 1990s?

The emergence of a global movement towards establishing a generally accepted definition of CSR. Signup and view all the answers

What shift in thinking about CSR occurred in the 2000s?

CSR began to be viewed as a strategic imperative and integrated into firm operations. Signup and view all the answers

What is the core concept of 'shared value creation' as introduced by Porter and Kramer?

To enhance the competitiveness of a company while simultaneously advancing economic and social conditions in the communities in which it operates. Signup and view all the answers

Which of the following is a central aspect of the holistic CSR perspective, as described by Chandler and Werther?

Integrating CSR into the firm's strategic planning and core operations. Signup and view all the answers

How does the concept of internationalization affect the approach of corporations to CSR practices?

It encourages collaborative modes, shared approaches, and alignment with the UN Sustainable Development Goals. Signup and view all the answers

What does Smith propose regarding a company's perspective on CSR?

CSR should be integrated into a company's strategic perspective to fulfill long-term obligations. Signup and view all the answers

According to Marrewijk, how do firms address their challenges regarding CSR?

By adopting different levels of integration of CSR into a company’s structure. Signup and view all the answers

Which of these perspectives aligns with the idea of CSR evolving into a 'strategic necessity'?

CSR shifts from a minimal commitment to a core strategic component for companies. Signup and view all the answers

Study Notes

Global Corporate Citizenship and Sustainability

Five basic parts of an organization (Mintzberg model): technical core, technical support, administrative support, top management, middle management
Technical core: the basic work of the organization, transforming inputs into outputs (e.g., production)
Technical support: engineers, researchers, scanning for problems, technological developments
Administrative support: smooth operation of the organization, physical and human resources
Management: directing and coordinating other parts (top & middle)
Top Management: provides direction, goals, and strategy
Middle Management: coordinates at the departmental level
Middle Management mediates responsibility between top and technical core

Basics of Corporate Governance

Shareholders: own shares (stocks) of a corporation
Stocks are certificates of ownership frequently conferring control rights (e.g., voting)
Voting rights allow shareholders to vote for those on the board of directors
Board of directors is the ultimate governing body of a firm
The non-executive directors look after the interest of all shareholders and other stakeholders (e.g., employees)
Non-executive directors have two main roles

Stakeholders

Primary Stakeholders: have direct influence on a firm's survival (employees, shareholders, suppliers, customers, community, natural environment)
Secondary Stakeholders: have no essential influence on a firm's durability (media, government, interest groups, labor unions)
Principles of stakeholder governance:
- Value Creation
- Human Complexity
- Purpose
- Interconnection
- Cooperation
- Reciprocity

Global Grand Challenges

Addressing common problems through collaborative efforts from foundations, governments, and academic institutions to solve global problems.
Examples: climate change, inequality, global health crises, political instability, food security, water scarcity, biodiversity loss, cybersecurity threats, migration and displacement, technological disruption

Corporate Sustainability

Increasing relevance of ESG challenges (environmental, social, and governance)
Rising scope and scale of corporate activities
Digitalization and datafication

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Description

Test your knowledge on the essential parts of an organization according to the Mintzberg model, and understand the basics of corporate governance. This quiz covers the roles of technical core, management levels, and the significance of shareholder voting rights. Dive into the concepts impacting corporate citizenship and sustainability.