Corporate Social Responsibility

Question 1

What is the difference between Fiscal and Monetary policy?

Answer 1

Fiscal Policy is government’s decisions on taxation and spending.

Monetary Policy is governments control of supply and price of money, normally through interest rates.

Question 2

With regards to Corporate Political Activity, what is the difference between Bridging and Buffering?

Answer 2

Bridging is monitoring political developments.

Buffering is lobbying the government before legislation is ratified to demonstrate its impact

Question 3

Johnson and Scholes identified three types of stakeholder, name examples of each (ICE)

Answer 3

Internal (Mgmt, Employees)

Connected (Shareholders, Debt holders, Suppliers, Customers)

External (Community, Society, Competitors, Special Interest Groups, Government)

Question 4

Mendelow’s Matrix maps stakeholders Interest and Power

Low power Low Interest
Low power High Interest
High power Low Interest
High power High power

Answer 4

Low Power Low Interest; Casual Labour

Low Power High Interest; Core Employees

High Power Low Interest; Shareholder

High Power High Interest; Suppliers

Question 5

Carroll and Buchholtz identified the following four layers of Corporate Social Responsibility?

Economic Responsibilities
Legal Responsibilities
Ethical Responsibilities
Philanthropic Responsibilities

Answer 5

Economic Responsibilities - Return for shareholders, remuneration for staff, value for money to customers.

Legal Responsibilities

Ethical Responsibilities - Exceed legal responsibilities

Philanthropic Responsibilities - Exceed ethical responsibilities