Chapter 7D (values based management)

Question 1

What is CSR?

Answer 1

Corporate Social Responsibility

Question 2

Who are stakeholders?

Answer 2

They are people and groups that supply a company with its productive resources and have claim and stake in the company.

Question 3

What do companies have to do when laws don’t tell them how to behave?

Answer 3

Managers have to decide what right/ethical way to behave towards people and groups affected by their actions.

Question 4

What different types of stakeholders are there?

Answer 4

Stockholders, employees, managers, customers, suppliers/distributors, community/society/nation-state

Question 5

What are the values of the stockholders?

Answer 5

Want to make sure that manager’s are acting ethically and not risking investor’s capital by engaging in actions that could hurt the company’s reputation; they also want to maximize the company’s ROI

Question 6

What are the values of the managers?

Answer 6

using company’s financial capital and human resources to increase performance; also have a right to expect a good return/reward by investing their human capital to improve a company’s performance; generally juggle multiple interests

Question 7

What is a problem with corrupt managers?

Answer 7

They focus on maximizing their own personal profit and wealth.

Question 8

What are the values of the employees?

Answer 8

They expect to receive rewards consistent with their performance; companies act ethically towards employees by creating an occupational structure that fairly rewards employees for their contributions

Question 9

What are the values of the suppliers?

Answer 9

They expect to be paid fairly and for their inputs

Question 10

What are the values of the distributors?

Answer 10

They expect to receive quality products at agreed-upon prices

Question 11

Who is the most critical stakeholder?

Answer 11

Customers

Question 12

What are the values of the customers?

Answer 12

Company must work to increase efficiency and effectiveness in order to create loyal customers and to attract new ones.

Question 13

What are the values of the community/society/nation-state?

Answer 13

provides company with physical and social infrastructure that allows it to operate

Question 14

What is a community?

Answer 14

The physical locations where a company is located.

Question 15

Name an example of a community.

Answer 15

towns; cities

Question 16

How do companies affect communities?

Answer 16

The company contributes to the economy of the town/region through salaries, taxes, and wages.

Question 17

What is corporate social responsibility?

Answer 17

It is the way that the company’s managers and employees view their duty/obligation to make decisions that protect and promote the well-fare and well-being of society as a whole.

Question 18

What are a firm’s duties to its stakeholders?

Answer 18

operate in an honorable manner; provide good working conditions for employees; encourage workforce diversity; environmental responsibility; actively work to better the quality of life in the communities where it operates/ society at large

Question 19

What are the four approaches to social responsibility?

Answer 19

Obstructionist approach, defensive approach, accomadative approach, proactive approach

Question 20

What is an obstructionist approach?

Answer 20

When companies choose NOT to behave in a socially responsible way and act unethically and illegally.

Question 21

What is a defensive approach?

Answer 21

When companies/managers stay within the law and abide strictly by legal requirements, but make no attempt to exercise social responsibility

Question 22

What is an accomadative approach?

Answer 22

When companies b

Question 23

What is an accomadative approach?

Answer 23

When companies behave legally/ethically, but they try and balance the stakeholders against one another so that the claims of stakeholders are seen in relation to other stakeholders.

Question 24

What is a proactive approach?

Answer 24

When companies actively embrace socially responsible behavior and go out of their way to learn about the needs of different stakeholder groups; also by utilizing organizational resources to promote the interests of all stakeholders

Question 25

Why should a company be socially responsible?

Answer 25

It helps a company build a good reputation; if all companies do it, then quality of life as a whole increases

Question 26

What are the three parts of the triple bottom line?

Answer 26

people profit planet; social, economic, environmental

Question 27

What is the goal of the triple bottom line?

Answer 27

To achieve excellence in all three performance dimensions.

Question 28

What is sustainability?

Answer 28

The relationship of a firm to its environment and its use of natural resources.

Question 29

What are sustainable business practices?

Answer 29

Practices in a business that meet present needs, while not compromising its ability to meet future needs.

Question 30

What actions are part of the environmental sustainability strategy?

Answer 30

protect the environment; provide for longevity of natural resources; maintain ecological support systems for future generations; guard against ultimate endangerment of the planet

Question 31

What is the moral case for CSR/environmentally sustainable business practices?

Answer 31

to operate legally/ethically; to provide good work conditions for employees; to be a good environmental steward; to display good corporate citizenship

Question 32

What can stakeholders do to prevent unethical actions and behaviors?

Answer 32

increase the amount of public awareness of misdeeds of bad behavior by firms; increases legislation and regulation to correct and punish firms; refuse to do business with irresponsible firms