CSR: Quiz 1

1. In corporate social responsibility, who is the organization expected to be

responsible to?
a. Stockholders
b. Stakeholders
c. General public
2. The acid test of good corporate philanthropy is
a. Whether the desired social change results in real & tangible benefits to
society
b. Whether the desired social change would be pursued by the organization
even if no one knew about it
3. Legitimacy gap as a limitation of legitimacy theory refers to
a. Dynamic nature of the expectations of the society vs. organizational
objectives
b. Unexpected occurrences affecting the organization’s reputation
c. Gap between what the organization discloses and what it is supposed to
disclose
4. Primary stakeholders are:
a. People or groups directly affected by the decisions of the organization
b. People or groups indirectly affected by the decisions of the organization
c. People or groups who can affect what the organization does
5. Latent stakeholders
a. Have both great interest in the decision & the power to help make it
successful or fail it
b. Have little interest or power & may not even know the decision exists
c. Have no particular interest or involvement in the decision but have the
power to influence it greatly if they become interested in it
6. In the context of institutional theory, coercive isomorphism refers to
a. Doing good like everyone else
b. Copying others’ practices when one fails to do something unique
c. Doing good because one feels pressured by people & institutions that
matter
7. In the context of institutional theory, decoupling refers to
a. Social acceptance by outside groups
b. Accountability by the organization to its stakeholders irrespective of the
power they are able to exert over the organization
c. Situation in which the formal organizational structure or practice is
separate & distinct from actual organizational practice
8. Instrumental theories of CSR postulate that
a. Social responsibility of an organization is creation of wealth& the
organization should only undertake the social activities that are consistent
with creation of wealth
b. Social power of an organizationis an outcome of its relationship with
society & its responsibility lies in the maintenance of this social power
c. Firms ought to accept social responsibilities as an ethical obligation above
any other consideration