Corporate Social Responsibility Overview
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Questions and Answers

What is the primary purpose of a corporation?

  • To engage in charitable activities
  • To serve its shareholders only
  • To provide employment
  • To operate for profit (correct)

    • Which of the following is NOT a responsibility of shareholders?

  • Voting on corporate matters
  • Providing capital for expansion
  • Receiving dividends
  • Running day-to-day operations (correct)

    • What does the ethical dimension of Corporate Social Responsibility emphasize?

  • Only complying with laws
  • Maximizing profit at any cost
  • Engaging in competitive strategies
  • Acting morally right beyond legal requirements (correct)

    • Which approach involves compliance with governmental laws and regulations?

    <p>Legal responsibility</p> Signup and view all the answers

    What is a key responsibility of the Chief Executive Officer (CEO)?

    <p>Running day-to-day operations</p> Signup and view all the answers

    Which of the following funds corporate growth and operational expansion?

    <p>Investors</p> Signup and view all the answers

    Philanthropical responsibility in corporate social responsibility includes which of the following?

    <p>Engaging in charitable contributions</p> Signup and view all the answers

    What is one of the roles of the board of directors?

    <p>Overseeing management strategies and performance</p> Signup and view all the answers

    What is a primary goal of many businesses?

    <p>Maximize profits</p> Signup and view all the answers

    What is required for effective CSR implementation?

    <p>Specialized knowledge and skills</p> Signup and view all the answers

    Which of the following is NOT a driver of corporate social responsibility?

    <p>Limited consumer engagement</p> Signup and view all the answers

    Why can CSR activities sometimes conflict with profit maximization?

    <p>CSR may involve higher costs or lower short-term returns</p> Signup and view all the answers

    What does the environmental scan in effective governance involve?

    <p>Analyzing internal strengths and weaknesses</p> Signup and view all the answers

    How do corporations that engage in socially responsible practices benefit?

    <p>Enhanced reputation and trust among stakeholders</p> Signup and view all the answers

    What is the primary role of shareholders in a corporation?

    <p>They approve mergers and acquisitions.</p> Signup and view all the answers

    Which element is essential in the formulation of strategy?

    <p>Creating and clarifying business objectives</p> Signup and view all the answers

    Which of the following can be considered a barrier to corporate expansion?

    <p>Limited financial resources.</p> Signup and view all the answers

    What is a characteristic of good governance practices?

    <p>Incorporating sustainability considerations</p> Signup and view all the answers

    What is one primary function of the Securities and Exchange Commission (SEC)?

    <p>To regulate the corporate sector and protect investors.</p> Signup and view all the answers

    How do social movements influence corporate behaviors?

    <p>By exerting pressure to address social issues.</p> Signup and view all the answers

    Which type of corporation is typically formed for non-profit purposes?

    <p>Non-stock Corporation</p> Signup and view all the answers

    Which factor can significantly drive a company's corporate social responsibility initiatives?

    <p>Internal culture and values.</p> Signup and view all the answers

    What are common drivers of corporate social responsibility?

    <p>Market behavior and regulations.</p> Signup and view all the answers

    What is a unique feature of a One Person Corporation?

    <p>It is owned by a single individual.</p> Signup and view all the answers

    Which group is primarily responsible for the financial interests of a company?

    <p>Shareholders</p> Signup and view all the answers

    What is the primary goal of proactive risk management in organizations?

    <p>To address potential issues related to social and environmental concerns</p> Signup and view all the answers

    Which of the following best describes Stakeholder Theory?

    <p>A conceptual framework focusing on moral and ethical values in business</p> Signup and view all the answers

    How can engaging in Corporate Social Responsibility (CSR) positively impact a community?

    <p>By improving community well-being and addressing societal challenges</p> Signup and view all the answers

    Which of the following elements is NOT included in good governance?

    <p>Confidentiality</p> Signup and view all the answers

    What leads to market differentiation for companies concerned with social responsibility?

    <p>Implementing socially responsible practices</p> Signup and view all the answers

    Which of the following stakeholders plays a key role in corporate governance?

    <p>Board of Directors</p> Signup and view all the answers

    What is Strategic CSR primarily focused on?

    <p>Aligning CSR initiatives with the overall business strategy</p> Signup and view all the answers

    Which theory focuses on the relationship between the owner and the agent in governance?

    <p>Agency Theory</p> Signup and view all the answers

    What is the primary goal of good governance in relation to compliance and risk management?

    <p>To minimize risks of legal issues and financial mismanagement</p> Signup and view all the answers

    What does transparency in governance refer to?

    <p>Complete openness and honesty</p> Signup and view all the answers

    Which approach emphasizes the importance of board diversity and independence?

    <p>Establish Board Composition</p> Signup and view all the answers

    What is one of the primary functions of the board in corporate governance?

    <p>Strategy formulation</p> Signup and view all the answers

    Which theory is primarily concerned with the availability of resources and its impact on performance?

    <p>Resource Dependency Theory</p> Signup and view all the answers

    What does accountability in corporate governance entail?

    <p>Acceptance of responsibility for ethical conduct</p> Signup and view all the answers

    Which of the following best describes Stakeholder Theory?

    <p>It emphasizes the importance of relationships with all relevant parties.</p> Signup and view all the answers

    Study Notes

    Corporation

    • Legal entity distinct from its owners
    • Can enter contracts, own assets, sue and be sued, pay taxes, borrow money
    • Run by management, supervised by board of directors
    • Owned by shareholders (stockholders) who have voting rights

    Corporate Social Responsibility (CSR)

    • Refers to a company's ethical and responsible behavior to satisfy stakeholders
    • 4 dimensions: economic, legal, ethical, and philanthropic

    Economic Responsibility

    • Focuses on profitability and financial sustainability
    • Adherence to laws and regulations from governments

    Ethical Responsibility

    • Beyond legal requirements, doing what's morally right

    Philanthropic Responsibility

    • Voluntary activities such as charitable donations, community involvement

    Drivers of CSR

    • Regulations: Governments and regulatory bodies require responsible practices
    • Market Behavior: Consumers demand ethical and sustainable brands
    • Social Activism: Movements pressure companies to address social issues
    • Culture: Strong company culture encourages ethical behavior and CSR initiatives
    • Strategy: CSR becomes a part of long-term strategic vision for sustainability and reputation

    Barriers of CSR

    • Limited Financial Resources: CSR initiatives often require investment.
    • Profit Maximization: CSR may conflict with profit-driven goals.
    • Availability of Human Resources: Effective CSR implementation needs expertise.

    Importance of Good Governance and Social Responsibility

    • Ethical Behavior: Ensures ethical operations, considering the impact on society and stakeholders.
    • Reputation and Trust: Builds positive image and trust with customers, employees, and investors.
    • Risk Management: Proactively addresses issues to minimize risks of litigation and backlash.
    • Attraction and Retention of Talent: Entices employees seeking ethical and responsible employers.
    • Market Differentiation: Creates a competitive edge in ethical-conscious markets.
    • Community Impact: Improves well-being and contributes to solving societal challenges.

    Good Governance

    • Transparency and Accountability: Ensures open operations and accountability for decision-makers.
    • Effective Decision-Making: Strong governance structures lead to sound decision-making.
    • Compliance and Risk Management: Adherence to laws and policies minimizes risks.
    • Stakeholder Confidence: Builds confidence in organizations demonstrating good governance.

    Approaches to Corporate Governance

    • Transparency: Openness and honesty in operations.
    • Accountability: Upholding legal, contractual, and social obligations to shareholders and non-shareholders.
    • Establish Board Composition: Focus on diversity and independence of board members.
    • Risk Management: Identifying and managing all types of risks.

    Functions of the Board

    • Accountability: Responsibility for ethical conduct.
    • Monitoring and Supervising: Overseeing management performance.
    • Policy Making: Setting company rules and managing operations.
    • Strategy Formulation: Guiding the company to achieve its mission and vision.

    Board Membership

    • One to 15 directors for corporations, owning at least one share.
    • Different categories: Independent, Non-Executive, and Executive directors.

    Theoretical Perspectives on Corporate Governance

    • Stakeholder Theory: Most influential model, considering stakeholders' interests.
    • Agency Theory: Focused on owner-agent relationship.
    • Resource Dependency Theory: Organizational performance is influenced by resource availability.
    • Stewardship Theory: Focuses on the stewardship role of company owners.
    • Transaction Cost Theory: Minimizing the costs of exchanging resources with the environment.
    • Political Theory: Examines the philosophical aspects of government and its influence.

    The "Revised Corporation Code of The Philippines" (RCC) – 11232

    • Aims to simplify business operations and promote economic growth in the country.

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    Description

    This quiz covers key concepts regarding corporations and their responsibilities towards stakeholders. Explore the different dimensions of Corporate Social Responsibility (CSR) and understand the drivers behind ethical business practices. Test your knowledge on how corporations can balance profitability with ethical behavior.

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