CSR Exam 1 With 100% Correct And Verified Answers 2024, Exams of Advanced Education

Download CSR Exam 1 With 100% Correct And Verified Answers 2024 and more Exams Advanced Education in PDF only on Docsity! CSR Exam 1 With 100% Correct And Verified Answers 2024 The 4 common definitions of CSR - Correct Answer-1. A firm's moral obligations towards its stakeholders, focused on a firm's responsibilities or adherence to ethical norms. 2. The social responsibility of business that encompasses the economic, legal, ethical & discretionary expectations that society has of organizations at a given time. 3. Redefining business success by adopting the triple bottom line perspective 4. The policies and practices an organization used to manage stakeholder relationships, & an increasing number of firms are attempting to use CSR practices as a source of some type of advantage while creating positive social value for its stakeholders. 3 categories of CSR Motives - Correct Answer-1. Instrumental 2. Relational 3. Moral Instrumental Motives - Correct Answer-shareholder interests (short-term) -- long term survival through ensuring security of livelihood; maintenance of a certain standard of living. Relational Motives - Correct Answer-stakeholders interests, legitimation/collective identity - active in social issues with the conscious awareness of the positive influence that the owner/manager perceives this will have on their business. Moral Motives - Correct Answer-stewardship interests, higher-order values - social values are actions that are integrated into the business life and take priority over maximizing profit. managing the potential conflict between a company's principals and its agents - Correct Answer-the governance structure is the main vehicle for managing this conflict -- the board of director exists to ensure organizational transparency and to have strategic oversight of the CEO and to represent the shareholder interest. the 4 principles of good governance - Correct Answer-1. Independence - have a minimal number of directors who are former executives or contractors to the firm. 2. Stock Ownership - when directors own stock it aligns their interests with shareholders' 3. Director Quality - directors add value when they have industry experience, &/or have managed firms of a similar size; they should limit the number of boards on which they sit and should attend 75% of these meetings. 4. Board Activism - boards should meet often & without management present in the room. Continental Model of CSR - Correct Answer-Longterm debt finance, ownership by large block-holders, weak markets for corporate control and rigid labor markets. (Japan) Anglo-American Model - Correct Answer-Dispersed ownership expecting short term returns, strong shareholder rights, arm's-length creditor financing through equity, active markets for control, and flexible labor markets. (CSR is a tougher sell)(USA) Value chain partners - Correct Answer-all entities invlolved in the entire system, or chain of activities through which a firm creates & delivers its products and/or services. External value chain partners - Correct Answer-includes entities involved in outsources functions, strategic partners and suppliers Global Value Chain - Correct Answer-(1990) far-reaching consequences for international investment, global & local economies, the competitive context in most industries, & daily life for most of the world's population. 4 strategies for suppliers and value chain partners - Correct Answer-1. Shape expectations of suppliers & other stakeholders 2. Select suppliers and agree on targets 3. Monitor and develop supply chain performance 4. Evaluate, Learn, & Continuously Improve How to shape expectations of suppliers & other stakeholders? - Correct Answer--create or adopt standards for ethical sourcing -establish a supplier code of conduct -continuously engage external actors, & especially suppliers: Educate & gain stakeholder buy-in for adopting desired practices. How to select suppliers & agree on targets? - Correct Answer--apply a transparent supplier selection policy -consult with & assist suppliers in meeting targets How to monitor and develop supply chain performance? - Correct Answer--measure key performance & sustainability indicators -use of third party audits and certification processes -when non-compliance is identified, focus on supplier development rather than immediate contract withdrawal -- help suppliers to overcome obstacles. How to evaluate, learn, and continuously improve suppliers? - Correct Answer- organizational transparency and stakeholder engagement are keys to doing this well. (CVP) Corporate Volunteer Programs - Correct Answer-formal and informal practices, policies & programs created by organizations to coordinate and encourage community service among their paid employees. Deriving value from operations creation? and Examples? - Correct Answer--developing new operational methods, identifying opportunities in untapped market, delivering on new stakeholder values. -development of competitive advantage -new operational methods -increased access to new market opportunities -opportunity to influence regulation -increased barriers to entry for competitors Deriving value from stakeholder preference? and Examples? - Correct Answer-- building stronger relationships with stakeholders to increase stakeholder preference -enhanced relationships with stakeholders -opportunities to work with the best supply chain and business partners -ability to attract resources, people, and investment to the company -increased employee retention, morale and motivation -Improved corporate reputation -ease of regulatory approval The 3 challenges of measuring Financial Returns from CSR: - Correct Answer-1. Returns occur through thousands of behaviors performed by members of different internal and external stakeholder groups. 2. These returns often occur over a long period of time. 3. Returns occur through complex meditational processes that aren't fully understood yet. CSP price premium - Correct Answer-firms that differentiate their products or services in ways their customers value such as through exemplary CSP, create an opportunity to charge a price premium. CSP price premium problem - Correct Answer-the size of the market that is willing to pay a CSP premium is probably smaller than what many believe due to an attitude behavior gap between consumer's beliefs and actual purchasing behavior. Vision - Correct Answer-explains why a firm exists & what it wants to be; it identifies the needs of others that their firm aspires to fulfill Mission - Correct Answer-describe what a firm does to achieve its vison - how the firm creates value for others Strategy - Correct Answer-specifies how a firm will compete in the market & competitive contect to achieve mission and vision. Tactics - Correct Answer-specify who, when and where the strategy will be implemented: the day-to-day activities, decisions, systems & policies a firm uses to implement its strategy and achieve economic success. Low-cost strategy - Correct Answer-competes on the basis of price and is adopted by firms with strengths in efficiency Differentiation strategy - Correct Answer-competes by offering superior value to customers and usually charging a premium. Capabilities - Correct Answer-what a firm is capable of doing to add value to its processes Competencies - Correct Answer-the actions a firm can do very well Core competencies - Correct Answer-the actions the firm is so superior at performing that other firms would find it very difficult, expensive or time consuming to match. SWOT - Correct Answer-Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external) - leverage your internal strengths to take advantage of external opportunities Resource perspective - Correct Answer-the strategic use of a firm's unique resources to differentiate it from competitors to create sources of sustained competitive advantage. VRIO - Correct Answer-Valuable?Rare?Easy to imitate?Organized to capture value? Industry Perspective + Porter's 5 forces - Correct Answer-focuses on external view of the firm, characterizing the nature of its operation environment as the most important determinant of competitive advantage. -power of suppliers -power of buyers -threat of new entrants -threat of substitutes -industry rivalry 3 criticisms of the industry perspective - Correct Answer-- portrays business practices as a zero-sum game of cut-throat competition rather than finding opportunities though partnerships with key stakeholders. - it considers only 3 stakeholders and omits others that affect the competitive environment - it insufficiently recognized internal characteristics that affect the firm's ability to compete Shared Value - Correct Answer-creating economic value for the firm from its ability to create value for society - created by policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it opperates, 3 ways to create shared value - Correct Answer-1. Reconceive products and markets around unsolved problems/concerns improve consumers lives not just meeting demand 2. Redefine Productivity in the Value Chain - increasing productivity, efficiency, and long-term success by addressing social/env. constraints 3. Enable local cluster development - work collaboratively with community partners to catalyze major improvements in a local cluster.