Chapter 5 Corporate Social Responsibility

Question 1

Corporate social responsibility

Answer 1

The duty of the corporation to create wealth in ways that avoid harm to, protect, or enhance societal assets.

Question 2

The csr spectrum (from left to right)

Answer 2

Radical progressives, progressive civil society, mainstream corporate managers, free market conservatives.

Question 3

Social Darwinism

Answer 3

If philosophy of the late 1800s and early 1900s that used evolution to explain the dynamics of human society and institutions. The idea of survival of the fittest in the social room implied that rich people and Dominic companies or morally superior.

Question 4

Trustee

Answer 4

An agent of a company’s corporate role put him or her in a position of power over the fate of not just stockholders, but also of others such as customers, employees, and communities.

Question 5

Service principal

Answer 5

A belief that managers serve society by making company is profitable and the aggregate success by many managers would resolve major social problems.

Question 6

Friedmanism

Answer 6

The theory that the sole responsibility of the corporation is to optimize profits while obeying the law.

Question 7

The three elements of social responsibility

Answer 7

Market actions, externally mandated actions, and voluntary actions.

Question 8

Market actions

Answer 8

Market actions are responses to competitive forces and markets. Such actions have always dominated and this will continue. When a corporation response to markets at the field it’s hard and most important social responsibility.

Question 9

Value chain

Answer 9

The sequence of coordinated actions to add value to a product or service.

Question 10

Civil regulation

Answer 10

Regulation by nonstate actors based on social norms or standards enforced by social or market sanctions.

Question 11

General principles of corporate social responsibility

Answer 11

Corporations are economic institutions run for profit. The greatest responsibility is to create economic benefits. They should be judged primarily on economic criteria and cannot be expected to meet purely social objectives without financial incentives. Corporations may incur short run costs on social initiatives that promise long-term benefits. And they should seek ways to solve social problems at a profit.

Question 12

External cost

Answer 12

A production costs not paid by firm or its customers, but by members of society.

Question 13

Soft law

Answer 13

Statement of philosophy, policy, and principal found and nonbinding international conventions that, over time, gain legitimacy as guidelines for interpreting the hard law in legally binding agreements.

Question 14

Norm

Answer 14

A standard that arises overtime and is enforced by social sanction or law.

Question 15

Principal

Answer 15

A roll, natural law, or truth used as a standard to guide a contact.

Question 16

Code of conduct

Answer 16

Formal statement of aspirations, principles, guidelines, and rolls for corporate behavior.

Question 17

Multi-stakeholder initiative

Answer 17

A code based form of civil regulation created by some combination of corporate, government, NGO, or international organization actors.

Question 18

Sustainability reporting

Answer 18

The practice of a corporation publishing information about its economic, social, and environmental performance.

Question 19

Fair trade

Answer 19

The idea that ethical consumers will pay a premium for commodities from producers in developing nations who use sustainable methods.

Question 20

Management standard

Answer 20

A model of the methods an organization can use to achieve certain goals.

The eagle management and audit scheme EMAS. The international organization for standardization ISO.