Unit 5: Matching questions

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Questions and Answers

Match the following self-governance strategies for corporate sustainability with their descriptions:

Social pressure = Public expectation for responsible behavior Bankers' oath = Commitment to ethical financial practices Equator Principles = Framework for responsible project financing ISO 26000 = Guidance on social responsibility standards

Match the following sustainability certifications with their purposes:

Sustainable standards = Criteria for environmental performance Greenwashing = Misleading claims about sustainability Self-regulatory standards = Guidelines developed by industries to ensure compliance Generalized trust = Widespread belief in the effectiveness of certifications

Match the following entities with their roles in corporate sustainability:

WestLB = Pioneered the Equator Principles to regain trust Fridays for Future = Youth-led climate action movement ISO = Provides international standards for various practices Peer companies = Affected by the decisions of leading corporations

Match the following examples of market forces with their descriptions:

Concrete examples = Real-world instances of sustainability efforts Pressure from consumers = Demand for environmentally friendly products Regulatory changes = Legal requirements for corporate operations Investment trends = Shift towards sustainable investments Signup and view all the answers

Match the following challenges with their implications for sustainability:

Tragedy of the commons = Collective action problem affecting resources Lack of world government = Absence of a unified regulatory body Reputation protection = Companies striving to maintain public trust Theoretical options = Uncertain effectiveness of proposed measures Signup and view all the answers

Match the following corporate responsibilities with their descriptions:

Economic responsibility = Do what capitalism requires Legal responsibility = Do what is required by global stakeholders Ethical responsibility = Do what is expected by global stakeholders Philanthropic responsibility = Do what is desired by global stakeholders Signup and view all the answers

Match the social pressures on firms with their effects:

Rising social pressure = Demand for sustainability in supply chains Pressure from investors = Divestment from fossil fuels Reputation management = Brand value as a significant asset Transparency demands = Request for sustainability reports Signup and view all the answers

Match the following companies with their sustainability issues:

BP = Greenwashing accusations Equity holders = Increased demand for transparency Major investment funds = Divest from fossil fuels Social media platforms = Criticism of 'good' companies Signup and view all the answers

Match the following terms with their implications:

Legitimacy = Prerequisite for operation Reputational risk = Avoiding sustainability certification Social mobilizations = Activism influencing corporate behavior Peer wrongdoing = Spillover effects in the industry Signup and view all the answers

Match the following aspects of sustainability with their relevance:

Sustainability reports = Increasing demand for transparency Reputation = Significant asset for firms Greenwashing = Damage to legitimacy Employee investment = Influenced by corporate responsibility Signup and view all the answers

Match the following phrases with their meanings:

Divestment = Withdrawing investments from certain industries Brand value = Perceived worth of a company's reputation Social pressure = Expectations from the community and stakeholders Corporate transparency = Clarity in reporting practices and sustainability efforts Signup and view all the answers

Match the examples of sustainability challenges with their outcomes:

Bluewater Horizon incident = Damaged legitimacy High sustainability certification standards = Reputational risk avoidance Investor divestment strategies = Shift towards renewable energy Activist demonstrations = Increased corporate accountability Signup and view all the answers

Match the responsibilities of companies with stakeholder expectations:

Legal responsibility = Meeting compliance requirements Philantropic responsibility = Engagement in community support Economic responsibility = Prioritizing shareholder profits Ethical responsibility = Adhering to moral standards in business practices Signup and view all the answers

Match the following concepts with their descriptions:

Scarcity of resources = Limited availability leading to refurbishment Government pressure = Regulations to ban certain car types Bargaining power of customers = Influence in decision-making Threat of substitute = Shift in preference from ownership to sharing Signup and view all the answers

Match the companies with their respective challenges:

BMW = Refurbishment of batteries due to shortages H&M = Protests following a factory collapse Siemens = Building railway parts for coal mining Nike = Changing practices to avoid sweatshops Signup and view all the answers

Match the stakeholders with their interests:

Customers/clients = Willingness for sustainable products Society / NGOs = Advocacy for ethical practices Shareholders = Focus on economic returns World Bank = Limited influence on specific business issues Signup and view all the answers

Match the organization to their strategies or responses:

WestLB = Adoption of equator principles WestLP = Responsibility for systemic consequences Nike = Changing approach to labor practices IFC = Engagement with stakeholders post-protest Signup and view all the answers

Match the phases of stakeholder response with their characteristics:

Lack of response = Defensive stance against criticism Defensive response = Antagonistic reaction to protests Collaborative response = Engagement with NGOs and community Initial beliefs = Focus solely on economic and legal responsibilities Signup and view all the answers

Match the following trends with their implications:

Urban millennials' preferences = Less interest in car ownership Tesla's market entry = Increased innovation among competitors Fossil fuel bans = Shift towards electric vehicles Corporate reputation = Balancing diverse stakeholder interests Signup and view all the answers

Match the terms with their definitions:

Scarcity = Shortage of necessary resources Pressure from NGOs = Demand for corporate accountability Systemic responsibility = Impact beyond immediate operations Equator principles = Framework for managing environmental risks Signup and view all the answers

Match the companies with the pressures they faced:

BMW = Refurbishing batteries due to material shortages H&M = Facing backlash after Rana Plaza incident Siemens = Criticism for supporting coal operations Nike = Evolving to prevent exploitation in factories Signup and view all the answers

Study Notes

Economic Responsibility: Compliance with capitalist principles.
Legal Responsibility: Adhering to laws set by global stakeholders.
Ethical Responsibility: Meeting the ethical expectations of stakeholders.
Philanthropic Responsibility: Engaging in activities desired by stakeholders.

Importance of Going Beyond Obligations

Reputation: A valuable asset impacting brand value.
Legitimacy: Essential for operational success; lack of legitimacy discourages investments from shareholders and suppliers.

Pressures on Firms

Increased social demand for accountability in supply chains.
Activist and public mobilization are driving forces for sustainability.
Investment funds are divesting from fossil fuels, influencing broader corporate behaviors.
High demand for transparency and sustainability reporting, especially for companies closer to consumers.
Companies showing commitment to sustainability face scrutiny and potential backlash on social media.
Strategic withholding of sustainability certifications to prevent reputational harm.

Spillover Effects

Case of BP: Reputation damaged after the Bluewater Horizon disaster, with long-term impacts on stock prices.
Negative actions of one firm can affect peers, as seen with BP and Shell.

Self-Governance in Corporate Sustainability

Social Movements: Initiatives like Fridays for Future influence corporate practices.
Regulatory Frameworks: Banks established the bankers' oath and Equator Principles for greater accountability.
Certification Standards: ISO standards (e.g., ISO 26000) promote trust but can also raise questions about potential greenwashing.

Institutional Examples for Sustainability

Certifications: Establish standards that encourage sustainable practices.
Resource Scarcity: Highlights necessity for innovation, such as BMW's battery refurbishment initiative.
Government Regulations: Bans on fossil fuel vehicles push firms toward sustainable alternatives.
Market Dynamics: Consumer preferences shifting towards car-sharing services impact automobile ownership models.

Case Analysis: WestLB

WestLB faced systemic scrutiny and accountability for broader environmental impacts.
Stakeholder reactions influenced the bank's response to sustainability issues.

Stakeholders' Perspectives

Diverse Interests: Customers, NGOs, and shareholders hold varying expectations from firms.
Political Dimensions: Stakeholders, including state entities, can shape corporate sustainability discussions.
NGO influence grows when combined with public pressure, shifting corporate strategies from defensive to collaborative approaches.

Company Responses

Nike's Transformation: Efforts to eliminate sweatshop practices demonstrate responsiveness to stakeholder concerns.

Key Takeaway

Balancing stakeholder interests is crucial for maintaining reputation and driving business strategy in a sustainability-focused world.

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Description

Explore the key concepts of Corporate Social Responsibility (CSR), including economic, legal, ethical, and philanthropic responsibilities. Understand the importance of going beyond basic obligations and the pressures firms face regarding sustainability and transparency in today's corporate environment.