Corporate Social Responsibility Quiz
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Questions and Answers

Which of the following best describes corporate social responsibility (CSR)?

  • Responses focused solely on profit generation
  • A strategic plan for market dominance
  • Minimizing costs while maximizing production
  • Organizational responses to societal expectations (correct)

What is a main criticism of philanthropic approaches to CSR?

  • They are overly focused on long-term strategies
  • They only address how profits are spent rather than how they are made (correct)
  • They emphasize the need for audits
  • They connect strongly to core business activities

What is a significant risk associated with CSR activities focused on risk management?

  • Greenwashing practices (correct)
  • Reputation enhancement for companies
  • Development of genuine community relationships
  • Increased transparency in business operations

Which elements are part of the CSR infrastructure?

<p>Market Business initiatives (A)</p> Signup and view all the answers

How can the global production network (GPN) approach responsibilities?

<p>Across various levels including firm, national, and transnational (A)</p> Signup and view all the answers

What is a critique of the concept of creating shared value (CSV) as posited by Porter and Kramer?

<p>It is based on false pretenses in literature (D)</p> Signup and view all the answers

What does the trend toward ESG risk management signify?

<p>Lack of a uniform definition and assessment of performance (D)</p> Signup and view all the answers

Which of the following factors contributes to audit fatigue in businesses?

<p>Excessive frequency and relevance of audits (D)</p> Signup and view all the answers

What is required at the organizational level to enable individuals to act virtuously?

<p>Implementing supportive programs in HR, technology, and culture (B)</p> Signup and view all the answers

What is one challenge mentioned in applying good intentions within an organization?

<p>Good intentions do not guarantee good results. (A)</p> Signup and view all the answers

What is harm reduction in the context of drug usage?

<p>Supervised injection sites and needle exchange programs (A)</p> Signup and view all the answers

Which ethical framework is suggested to be more suitable for economics according to Van Staveren?

<p>Deontology (A)</p> Signup and view all the answers

Why might a utilitarian approach favor harm reduction policies?

<p>It effectively reduces negative outcomes like overdoses. (D)</p> Signup and view all the answers

What is one of the key limitations of deontological ethics when applied in real-life situations?

<p>It lacks clear moral rules. (A)</p> Signup and view all the answers

Which of the following best defines applied ethics?

<p>The practical application of moral principles and theories (B)</p> Signup and view all the answers

What is a suggested moral response to the case of ineffective abstinence-focused drug policies?

<p>A compassionate approach through harm reduction (B)</p> Signup and view all the answers

What is the primary goal of the shareholder value approach?

<p>Increasing company value for owners (A)</p> Signup and view all the answers

Which attribute indicates that stakeholders can carry out their will without any resistance?

<p>Power (B)</p> Signup and view all the answers

Which of the following is NOT considered a challenge for the infrastructure of Corporate Responsibility?

<p>Lack of investment (B)</p> Signup and view all the answers

What defines a discretionary stakeholder?

<p>They have a claim but no power to influence. (B)</p> Signup and view all the answers

In the stakeholder perspective, what does 'urgency' refer to?

<p>Stakeholder claims that require immediate attention (D)</p> Signup and view all the answers

Which stakeholder type is classified as having urgency and power but lacking legitimacy?

<p>Expectant, dangerous stakeholder (B)</p> Signup and view all the answers

Which of the following best defines a stakeholder according to the stakeholder perspective?

<p>Any group or individual affected by or can affect the organization's objectives (D)</p> Signup and view all the answers

What assumption does the shareholder value approach share with the concept of Corporate Social Responsibility (CSR)?

<p>Maximizing shareholder value is equivalent to CSR (B)</p> Signup and view all the answers

What is the first step that managers need to take regarding stakeholders?

<p>Recognize and understand various stakeholders. (A)</p> Signup and view all the answers

What role do multi-stakeholder initiatives play in Corporate Responsibility?

<p>Facilitating cooperation across different sectors (B)</p> Signup and view all the answers

Which of the following best describes highly salient stakeholders?

<p>They have two of the three attributes. (C)</p> Signup and view all the answers

Which of the following is a dimension used to identify and weigh stakeholders?

<p>Legitimacy (D)</p> Signup and view all the answers

In critiquing modern corporate social responsibility (CSR), what is suggested about universal rules?

<p>There are no universal rules at all. (B)</p> Signup and view all the answers

What is a key drawback of maximizing profit as stated in the stakeholder perspective?

<p>It disregards stakeholder involvement (B)</p> Signup and view all the answers

What relationship does stakeholder salience have with decision making?

<p>It influences how managers prioritize stakeholder claims. (B)</p> Signup and view all the answers

What does the term 'urgency' refer to regarding stakeholder claims?

<p>The time sensitivity and critical nature of the claim. (A)</p> Signup and view all the answers

What type of legitimacy relates to organizations being responsive to stakeholder interests?

<p>Influence legitimacy (A)</p> Signup and view all the answers

Which form of legitimacy evaluates organizations based on the actual outcomes they achieve?

<p>Consequential legitimacy (D)</p> Signup and view all the answers

What is a characteristic of procedural legitimacy?

<p>Embracing socially accepted techniques (B)</p> Signup and view all the answers

Which type of legitimacy involves having desirable qualities and aligning with stakeholder values?

<p>Dispositional legitimacy (D)</p> Signup and view all the answers

What challenges are associated with a highly opaque market?

<p>Difficulty in measuring policy implementation outcomes (C)</p> Signup and view all the answers

What does cognitive legitimacy rely on?

<p>Comprehensibility and cultural models (A)</p> Signup and view all the answers

How does dispositional legitimacy differ from other types of legitimacy?

<p>It relates to personal qualities of the organization or leaders. (A)</p> Signup and view all the answers

What does the term 'means ends decoupling' refer to?

<p>Not achieving intended goals while complying with policies (A)</p> Signup and view all the answers

What is an important aspect of setting rules to ensure compliance?

<p>Rules need to be explicit, not vague. (D)</p> Signup and view all the answers

What is the role of incentives in compliance?

<p>They make standards attractive to actors. (B)</p> Signup and view all the answers

What does building capacity by transferring knowledge aim to resolve?

<p>The lack of knowledge. (C)</p> Signup and view all the answers

What problem arises from focusing strictly on compliance in complex situations?

<p>It leads to unintended side effects. (C)</p> Signup and view all the answers

What is encouraged to reduce tension between compliance and goal achievement?

<p>Fostering a systemic mindset. (C)</p> Signup and view all the answers

Why is a compliance-focused approach often counterproductive in tackling corruption?

<p>It assumes a uniform understanding of anti-corruption across contexts. (A)</p> Signup and view all the answers

What is one method suggested to manage complex governance issues?

<p>Running simulations and crafting scenarios. (D)</p> Signup and view all the answers

What challenge does policy practice decoupling pose?

<p>It risks creating a closed system approach. (C)</p> Signup and view all the answers

Flashcards

Virtue Ethics in Organizations

The idea that people should strive to be virtuous both individually and within organizations. It involves promoting ethical behavior through individual development and organizational structures.

Utilitarianism

A framework that focuses on consequences to determine the ethical value of an action. It argues that the best action is the one that maximizes overall happiness and reduces harm.

Deontology

A framework that emphasizes the importance of moral rules and duties, regardless of consequences. It focuses on the intention behind an action, rather than the outcome.

Harm Reduction

A strategy that aims to minimize the negative consequences of drug use, such as HIV infection and overdoses, through programs like needle exchange and supervised injection sites.

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Abstinence

A strategy that encourages individuals to completely abstain from drug use, aiming to reduce consumption and avoid harmful consequences.

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Applied Ethics

The application of ethical theories and principles to practical situations. This involves analyzing and resolving moral dilemmas in real-world contexts.

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Ethics of MNEs in Developing Countries

Concerns regarding ethical practices of multinational corporations (MNEs) operating in developing countries, specifically focusing on potential exploitation of workers and resources.

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Virtue Ethics in Economics

A framework that combines elements of both utilitarianism and deontology. It recognizes the importance of both consequences and duties, considering social relations and context in ethical decision-making.

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Corporate Social Responsibility (CSR)

Organizational response to societal expectations, encompassing philanthropy, risk management, and value creation.

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Corporate Philanthropy

Donating profits back to society with the aim of improving social well-being.

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Risk Management in CSR

Minimizing financial and reputational risks by proactively addressing negative externalities.

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Value Creation in CSR

Creating economic value while concurrently addressing societal needs and promoting positive social impact.

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Global Production Network (GPN) or Global Supply Chain

Global network connecting various firms and actors involved in the production and distribution of goods, highlighting shared responsibility.

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Creating Shared Value (CSV)

Focuses on transforming social issues relevant to a company into business opportunities, aiming to create shared value.

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ESG (Environmental, Social, and Governance)

A set of environmental, social, and governance factors assessed by investors to evaluate a company's sustainability and ethical impact.

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CSR Infrastructure

The interconnected system of market business initiatives, civil society institutions, and state/government institutions that shape and influence CSR practices.

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Shareholder Value Approach

A framework where the primary goal is to increase the value of the company for its owners, maximizing return on investment. This approach focuses on maximizing profit and emphasizes financial performance as the key measure of success.

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Stakeholder Perspective

A business philosophy recognizing that organizations are influenced by and should consider the interests of various stakeholders, including employees, customers, suppliers, communities, and the environment.

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Power (Stakeholder)

The ability of one actor to influence another to take an action that would not have occurred otherwise.

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Legitimacy (Stakeholder)

The perception that an actor's actions are seen as suitable, proper, and justifiable by others.

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Urgency (Stakeholder)

The degree to which a stakeholder's demands require immediate attention. This is determined by how urgent their issues are and the time pressure involved.

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Global Framework Agreements (GFAs)

Agreements between multinational companies and labor unions addressing global labor standards and practices.

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Multi-Stakeholder Initiatives

Initiatives that bring together diverse stakeholders, including businesses, governments, NGOs, and others, to address shared societal challenges and promote responsible business practices.

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Emerging Infrastructure for Corporate Responsibility

Encompasses codes of conduct, standards, principles, monitoring, certification, transparency, and reporting mechanisms to promote ethical business practices and accountability.

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Stakeholders

Those who are essential for the survival of an organization.

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Stakeholder Salience

The degree to which managers prioritize competing stakeholder claims.

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Power (in Stakeholder Analysis)

The ability to influence others to achieve a desired outcome.

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Legitimacy (in Stakeholder Analysis)

The perception that an entity's actions are acceptable, appropriate, and desirable within a given context.

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Urgency (in Stakeholder Analysis)

The degree to which a stakeholder demands immediate attention and action.

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Latent Stakeholder

A stakeholder with one of the attributes - power, legitimacy, or urgency.

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Moderately Salient Stakeholder

Stakeholders with two of the three attributes - power, legitimacy, or urgency.

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Expectant Stakeholder

Stakeholders that actively expect something from the company.

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Exchange Legitimacy

Legitimacy based on an organization's ability to meet the needs and expectations of its stakeholders.

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Influence Legitimacy

Legitimacy earned by an organization being responsive to the broader interests of its stakeholders, often by including them in decision-making processes.

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Dispositional Legitimacy

Legitimacy achieved when an organization is perceived by stakeholders as having desirable qualities, sharing their values, and being trustworthy.

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Moral Legitimacy

Legitimacy gained through the organization's actions being judged as morally right and promoting social welfare.

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Consequential Legitimacy

Legitimacy derived from an organization's ability to achieve its goals and produce positive outcomes.

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Procedural Legitimacy

Legitimacy earned through the organization's adherence to widely accepted standards and procedures in its operations.

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Structural Legitimacy

Legitimacy gained based on an organization's structural characteristics and its alignment with morally favored categories.

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Personal Legitimacy

Legitimacy based on the perceived trustworthiness and competence of individual organizational leaders.

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Policy-practice decoupling

The mismatch between what is intended by a policy and how it is implemented in practice.

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Compliance-focused approach

A governance model where rules are strictly enforced, often without considering the complexity of the issue or the diverse contexts in which it operates.

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Open approach to governance

A governance approach that emphasizes understanding the underlying causes and complexities of a problem, fostering open dialogue, and considering diverse perspectives.

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Systemic mindset

The belief that an issue is governed by a network of interconnected factors and actors, where a holistic understanding is crucial for effective intervention.

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Stimulating internalization

The process of making individuals and organizations internalize and take personal responsibility for achieving goals, fostering ownership and commitment.

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Niche institutions

Specialized institutions designed to address specific challenges within a broader system, recognizing the diverse needs of different contexts.

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Means-ends analysis

An approach that examines the relationships between means (actions undertaken) and ends (desired outcomes), considering the complexity and uncertainty involved.

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Sensemaking

The process of making sense of complex situations, integrating information, and constructing shared understandings among stakeholders, considering values, interests, and expectations.

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Study Notes

Organizations and Society

  • Organizations can choose to contribute meaningfully to society.
  • Organizational actions in society are a two-way process.
  • Incorporating attenuating (reducing negative effects) and amplifying (increasing positive awareness) societal programs into organizational structure and decision-making premises is crucial.
  • Performance goals and societal values influence organizational decision-making.
  • Reinforcing awareness, societal roles, and responsibilities in organizations is essential.

Modern Society

  • Danger has transformed into acceptable risk, leading to new risk awareness.
  • Society is complex, decentralized, and internally differentiated with multiple subsystems.
  • Organizations play a significant role in society, with dependencies within and between subsystems.
  • There is unequal distribution caused by global free-market dynamics and government control.

Globalization

  • Globalization is more than just the movement of goods and investments; it also involves the spread of ideas and policies.
  • Economic and social benefits from globalization exist, but there are also shortcomings like income inequality.
  • Increased global interdependency and integration, with opportunities and problems arising.

Globalization: Debates and Issues

  • Debate on whether globalization is good (Johnson) or negative (Stiglitz).
  • Discussion on income inequality, global debt, environmental issues, and the need for global governance institutions in the context of rapid globalization.

Capitalism and Responsibility

  • Discussion contrasting Friedman's perspective on profit maximization with Freeman's stakeholder approach emphasizing the need for value creation for all stakeholders.

Lecture 2: Incorporating Societal Programs

  • Organizations can incorporate societal programs into their decision-making.
  • This can be achieved through cost-benefit analyses and responsible decision-making.

Lecture 3: Corporate Social Responsibility (CSR)

  • Organizational responses to societal expectations; risk management, philanthropy, and value creation are key elements of CSR.
  • Importance of ESG risk management and evaluation.
  • Understanding and managing the infrastructure for CSR (market, government, civil society) is vital.

Lecture 4: Shareholder Value vs. Stakeholder Perspective

  • Discuss the contrasting approaches of shareholder value (maximizing profit for owners) against a wider stakeholder perspective (consideration of all affected parties).
  • Critique of short-term thinking and focusing on the needs of only shareholders, and its negative societal impact.
  • Complexity and stakeholder interactions are highlighted as integral parts of contemporary business.

Lecture 5: Institutionalized Rules

  • Organizations interact within an environment of institutional expectations and societal values.
  • There are conflicts between formal structures and optimal solutions.
  • Legitimacy can be affected by organizational behavior: a more detailed evaluation model is proposed for an understanding of internal conflict.

Lecture 6: Organization's Role in Society

  • Organized irresponsibility and challenges of attributing risks to specific actors in complex contexts is explored.
  • The case of MLM (multi-level marketing) as an example is examined, including factors like incentives and recruitment strategies.
  • Regulatory frameworks may not adequately address problems resulting from organized irresponsibility.

Lecture 7 & 8: Governance of Issues

  • Governance is important in a globalized world, but governing organizations can be challenging due to limited resources and differing opinions.
  • Importance of rules, institutions and legal structures that are relevant to global governance, and the challenges posed by private sector governance mechanisms.
  • Discussion on complex issues, including corruption, based on localized and global contexts, with different institutional approaches; the importance of mutual respect and understanding of various approaches.
  • Different methods of analyzing organizational problems in a global context are evaluated and compared.

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Organizations and Society Lecture 1 (Summary) PDF

Description

Test your understanding of corporate social responsibility (CSR) and its key concepts. This quiz covers various aspects, including criticisms of philanthropic approaches, risks associated with CSR activities, and the global production network's responsibilities. Assess your knowledge on the ethical frameworks and limitations related to CSR.

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