MGMT 3211 Chapter 7

A company earns its “license to operate” through filing its proper legal documents.
False
According to The Economist, corporate citizenship is becoming increasingly important for the long-term health of companies.
True
An emerging trend in corporate reporting is the integration of legally required financial information with social and environmental information into a single report.
True
Companies whose citizenship profile best matches public expectations are least likely to benefit from strategic investments in corporate citizenship.
False
Corporate citizenship partnerships can exist between companies and stakeholders in other countries.
True
Corporate citizenship primarily focuses on a firm’s social activities.
False
Global corporate citizenship activities help companies create legitimacy, reputation, and competitive advantage.
True
Global corporate citizenship refers to putting an organization’s commitment to social and environmental responsibility into practice locally.
False
If a company acknowledges the need to build more coherent initiatives, it is in the innovative stage of becoming a corporate citizen.
False
In the first stage of corporate citizenship, the elementary stage, managers are uninterested and uninvolved with social issues.
True
Robert Civita, chairman and CEO of the Brazilian Abril Group, has defined global corporate citizenship as “socialism with a conscience.”
False
Social audits look at what an organization does, not at the results of the actions.
False
The basis for corporate citizenship does not rely on the generosity of a firm’s senior management or their awareness of their role as trustees of the public’s interests.
True
There is no single universally accepted method for designing a CSR management structure.
True
Triple bottom line reporting requires that a firm report financial data.
True
auditing process
systems used by a business to ensure compliance with an industry or global set of standards
citizenship profile
choosing a configuration of citizenship activities that fits the setting in which the company is working
corporate social reporting
the public reporting of information collected by the organization or another party during a social audit
department of corporate citizenship
a department created in a business to centralize under common leadership wide-ranging corporate citizenship functions
global corporate citizenship
refers to putting an organization’s commitment to social and environmental responsibility into practice worldwide
social audit
a systematic evaluation of an organization’s social, ethical, and environmental performace
social equity
determined by assessing the company’s social benefits and costs, as revealed by a social performance audit
transparency
clear public reporting of an organization’s performance to various stakeholders
triple bottom line
the measurement of an organization on the basis of its economic results, environmental impact, and contribution to social well-being