Economy and Corporate Citizenship

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Questions and Answers

What type of market favors sellers over buyers?

Seller's Market (correct)

Consumer Market

Buyer's Market

Competitive Market

Which of the following is a strategy consumers use in a seller's market?

Using intermediaries (correct)

Purchasing in bulk

Waiting for price drops

Direct bargaining with sellers

Which statement best describes responsible consumption?

Balancing cost-benefit with social and environmental considerations (correct)

Only buying from local producers

Considering only the environmental impact of products

Purchasing based solely on price

What is colonialism primarily defined as?

Control by one power over a dependent area or people Signup and view all the answers

What form does neocolonialism NOT typically take?

Cultural exchange Signup and view all the answers

Which region is primarily responsible for the climate crisis as per the historical perspective?

Global North Signup and view all the answers

Which of the following is an example of climate colonialism?

Outsourcing pollution-intensive industries to the Global South Signup and view all the answers

What does balancing governance typically involve?

Balancing individual will with collective interest Signup and view all the answers

What is the primary goal of tax incentives mentioned in the content?

To transfer costs and risks to the public Signup and view all the answers

Which of the following issues is NOT mentioned regarding the current recycling model?

Lack of public awareness Signup and view all the answers

What happens to products after consumers use them according to the content?

They typically go to landfill Signup and view all the answers

What is a significant concern regarding global waste generation?

It is expected to increase dramatically over the next 30 years Signup and view all the answers

Which of the following is a measurement alternative to GDP mentioned in the content?

Genuine Progress Index Signup and view all the answers

According to the information, which country produces the most waste per capita?

United States Signup and view all the answers

What issue does the content identify in terms of legislation on businesses?

Difficulty in setting meaningful legislation Signup and view all the answers

What is the main takeaway regarding growth measurement from the content?

Growth should be considered in connection with sustainability criteria Signup and view all the answers

What is a significant consequence of GDP growth in developing countries?

It destroys natural resources. Signup and view all the answers

What is one effect of reducing consumption on economic growth?

It reduces GDP growth. Signup and view all the answers

What does economic feasibility mean for society?

The social benefits must outweigh the social costs. Signup and view all the answers

What is a misconception about the relationship between developed countries and waste disposal?

Developed countries criticize worsening environments in recipient countries while exporting waste. Signup and view all the answers

Which of the following is a potential outcome if sustainability is not prioritized?

Increased reliance on natural resources. Signup and view all the answers

What role does government intervention play in economic feasibility?

It can help projects that are socially beneficial but economically unfeasible. Signup and view all the answers

How does growth inequality manifest between rich and poor countries?

Rich individuals and countries benefit disproportionately from GDP growth. Signup and view all the answers

What may happen if there is a contradiction in the definition of economic feasibility?

Social costs may exceed social benefits. Signup and view all the answers

What are the two key principles of good governance?

Trust and Justice Signup and view all the answers

Which of the following is NOT a characteristic of democratic governance?

Centralized decision-making Signup and view all the answers

What does global governance primarily aim to address?

Cross-border issues Signup and view all the answers

Which organization has made sustainability a primary objective since 2000?

United Nations Signup and view all the answers

In a capitalist society, what role does the government typically play?

Minimal regulation of private enterprise Signup and view all the answers

Which agreement serves as the latest legal binding sustainability agreement as of 2015?

Paris Agreement Signup and view all the answers

What is a main component of governance for sustainability?

Collaboration of multiple actors Signup and view all the answers

What is the USMCA primarily focused on?

Free trade and labor flow Signup and view all the answers

What characterizes an autocratic governance system?

Single entity or leader holds absolute power Signup and view all the answers

Which of the following industries is considered too important to be privatized?

Healthcare Signup and view all the answers

What is a significant challenge to domestic governance for sustainability?

Bureaucratic delays Signup and view all the answers

What impact does political influence have on companies?

It may provide a competitive advantage. Signup and view all the answers

What issues are commonly associated with a small government?

Oversight in essential industries Signup and view all the answers

Which of the following is NOT listed as an element of national governance?

Community recreational programs Signup and view all the answers

Which of the following is a reason for insufficient effective governance?

Short-termism and self-interest Signup and view all the answers

What initiative has Nova Scotia implemented since 2007 to promote sustainability?

Green and inclusive community buildings program Signup and view all the answers

What is the primary purpose of lobbying in the context of business influence on governance?

To influence legislation, policy or administrative decisions Signup and view all the answers

Which of the following is NOT considered a legal channel for influencing institutional governance policies?

Bribery Signup and view all the answers

What role do trade associations play within the context of business lobbying?

They provide a unified voice for members of a specific industry. Signup and view all the answers

Which of the following best describes 'public-private partnerships' (PPPs)?

Cooperative efforts between the private sector and government to achieve shared objectives Signup and view all the answers

What is one of the key components of successful grassroots lobbying?

Engaging the public to rally support against specific policies Signup and view all the answers

How does corruption generally affect sustainability efforts?

It undermines sustainability efforts by prioritizing personal or corporate gain Signup and view all the answers

Which of the following activities would be categorized under illegal lobbying?

Offering gifts to public officials to gain favor Signup and view all the answers

What defines a peak trade association?

An interest group representing a specific industry Signup and view all the answers

Study Notes

Economy

An economy is a system of production and consumption activities that allocate resources among participants.
Economic systems include traditional, command (government-controlled), free market (less government), and mixed (a blend of both).
Businesses play various roles in economies, including specialization, scale advantages, knowledge generation, and social responsibility.

Corporate Citizenship

Corporations are citizens of a society, with legal and social rights and responsibilities.
Corporate social responsibility aims to regulate corporate behaviour.
Corporate citizenship includes legal (explicit rights and responsibilities defined by law) and social (implicit rights and responsibilities expected by society) aspects.
Issues arise when rights are overemphasized, responsibilities disregarded, or coercive power is used to avoid consequences.

Economic Sustainability

Economic sustainability promotes long-term growth without harming social, environmental, and cultural aspects of a community.
The UN's Sustainable Development Goals (SDGs) are linked to various aspects of economic sustainability, including affordable energy, decent work, industrial innovation, and responsible consumption.

Problem with Economic Growth

GDP growth is not the problem, but how it's fueled.
GDP growth is correlated with material extraction and greenhouse gas emissions.
GDP growth destroys nature and isn't fairly distributed among countries and social classes.

Sustainability, Inequality, and Garbage

The practice of shipping garbage to developing countries raises environmental concerns due to potential worsening environmental conditions and concerns raised about resource depletion.
Reducing consumption is important in the face of these unsustainable practices. Reduced consumption leads to potentially reduced production and GDP growth, as well as a reduction in materialistic conveniences.

Economic Feasibility

Economic feasibility is the comparison between economic advantages and disadvantages.
Business feasibility is about the profitability of production, while social feasibility considers overall social benefit versus cost.

Product Life Cycle

Product life cycle refers to the entire lifespan of a product from raw materials to waste.

Issues with the Current Model

Issues exist in the current model due to customers' lack of recycling capability, lack of incentive for businesses to help with waste control, and difficulties in legislation for sanctioning individuals and businesses related to recycling.

Global Waste

Global waste is a growing accumulation of discarded materials, pollutants, and debris.
Waste generation is increasing, and the US is one of the most wasteful countries.

Alternatives to GDP

GDP is a one-dimensional monetary measure, not encompassing broader social, economic, and environmental factors.
Sustainable Development Goals and the Happy Planet Index highlight alternative measures of success.

Doughnut Economy

The Doughnut Economy balances human needs and the ecological limits of the planet.
It uses an inner ring (social foundation) and outer ring (ecological ceiling) to represent the boundaries of what is satisfactory.

Circular Economy

The circular economy is an alternative to the traditional "linear" make-use-dispose model.
It involves reuse, repair, and recycling of products to reduce waste.

Sharing economy presents challenges due to self-interest, complexity in regulations, and the potential for exploitation and inequality.

Profit Maximization

Profit maximization and its ethical considerations versus a broader focus on profit "enough" are debated.
Businesses are often driven to maximize profits, but this can conflict with environmental and ethical considerations.

Consumer Sovereignty

Consumer sovereignty means buyers have the power to impact the market with their purchases.

Responsible Consumption

Responsible consumption requires buyers to make purchasing decisions based on cost-benefit analysis combined with environmental and social considerations.

Governance

Governance is about the act of governing, balancing individual and collective interests, and addressing conflicting interests.
Good governance includes trust, fairness, transparency, and accountability.
Governance for sustainability involves these aspects while considering social, economic, and environmental factors.

Issues with Small Government

Certain industries (like utilities, healthcare, and financial services) are thought to be too important to be privately owned and therefore better left under control and regulation from the government.

Business Influence on Policy

Lobbying and political strategies are used by businesses to influence policies.
Legal and illegal tactics are employed by groups to influence government action.

Business-Government Collaboration

Legal and ethical methods of collaboration and cooperation between business and government are beneficial to both parties.
Illegal business-government engagement can potentially involve corruption and bribery.

Peak Trade Associations

Peak trade associations are major groups representing industries in particular nations.

Revolving Door Appointments

This is a mechanism where individuals move between major leadership roles in both the government and private sectors. This can negatively impact policy as it can potentially breed conflict of interest and undue influence.

Business Governance and Sustainability

Effective corporate governance systems include boards with sustainability knowledge, setting goals, utilizing expert third-party audits and reports, including ESG/SUSTAINABILITY/CSR/TCFD considerations, and connecting compensation systems to sustainability benchmarks.

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Description

This quiz covers the fundamentals of economic systems, corporate citizenship, and the concept of economic sustainability. Explore the various types of economies, the role businesses play, and the implications of corporate social responsibility. Assess your understanding of how these elements interact in the modern economic landscape.