Business Strategy And Development Canadian 2nd Edition By Bissonette - Test Bank

Business Strategy And Development Canadian 2nd Edition By Bissonette – Test Bank

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Sample Questions Are Posted Below

TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) Ethics is based solely on legality.
Answer: True False
2) Ethics reflects the moral principles or beliefs about what an individual views as being right or
wrong.
Answer: True False
3) Business ethics refers to principles and standards that define acceptable conduct in business
organizations.
Answer: True False
4) Nearly all business decisions may be judged as right or wrong, ethical or unethical.
Answer: True False
5) Business ethics are the same as legal issues.
Answer: True False
6) Only corporations have to worry about ethics scandals and social responsibility issues.
Answer: True False
7) A growing number of people feel that an employee’s ethics are a personal matter, and have nothing
to do with management.
Answer: True False
8) The majority of CEOs believe that employee misconduct results from a failure in organizational
leadership in establishing ethical standards.
Answer: True False
9) Management can create an environment in which unethical behaviour can develop.
Answer: True False
10) Integrity-based ethics codes are based on avoiding legal punishment.
Answer: True False
11) An integrity-based ethics code moves beyond legal compliance in order to create a
“do-the-right-thing” climate.
Answer: True False
12) Designing an employee incentive program based on increasing sales can lead to unethical behaviour.
Answer: True False
13) As a manager you have a responsibility for the unethical behaviour of your employees.
Answer: True False
1
14) When faced with slow sales and low profits, even managers with strong personal values may feel
pressured to compromise those values.
Answer: True False
15) The most basic ethical concerns have been formalized through laws and regulations that encourage
conformity to society’s values and norms.
Answer: True False
16) Written ethics codes influences employees more than management’s tolerance or intolerance of
ethical misconduct.
Answer: True False
17) The purpose of the Sarbanes-Oxley Act is to provide financial rewards for whistle-blowers.
Answer: True False
18) Compliance-based ethics codes focus on preventing unlawful behaviour by increasing control and
by penalizing wrongdoers.
Answer: True False
19) A code of ethics designed to avoid criminal misconduct is an example of a compliance-based ethics
code.
Answer: True False
20) In order to be successful, efforts to improve the ethical behaviour of businesses must begin with top
management’s support of a corporate code of conduct.
Answer: True False
21) Businesses recognize that pressure to violate ethical standards can come from either inside or
outside of the firm.
Answer: True False
22) People who report illegal or unethical behaviour are known as whistleblowers.
Answer: True False
23) Enforcement is perhaps the most important step in an effective code of ethics.
Answer: True False
24) Establishing and enforcing ethical standards and policies within a business can help reduce
unethical behaviour by prescribing which activities are acceptable and which are not and by
removing the opportunity to act unethically.
Answer: True False
25) Without a code of ethics or formal policy on ethics, employees are likely to base their decisions on
how their peers and superiors behave.
Answer: True False
2
26) Codes of ethics foster ethical behaviour because they expand the opportunity to behave unethically.
Answer: True False
27) Codes of ethics are formalized rules and standards that describe what the company expects of its
employees.
Answer: True False
28) Businesses can avoid ethical dilemmas by requiring written contracts with their employees,
customers, and owners.
Answer: True False
29) The ability to leverage CSR initiatives can be a key differentiator between two businesses.
Answer: True False
30) A growing percentage of consumers are willing to spend the same, or more, on products or services
whose organizations demonstrate the effective execution of CSR initiatives.
Answer: True False
31) Corporate social responsibility refers to the concern businesses have for their employees.
Answer: True False
32) Ethics and social responsibility mean the same thing.
Answer: True False
33) Managers consider social responsibility on an annual basis.
Answer: True False
34) A major social responsibility for business is providing equal opportunities for all employees.
Answer: True False
35) Corporate philanthropy refers to the position a firm takes on issues that affect society.
Answer: True False
36) A charitable donation by a corporation is an example of corporate philanthropy.
Answer: True False
37) Ethical behaviour will allow a firm to meet its corporate social responsibility.
Answer: True False
38) Minority hiring practices and pollution control are both areas of corporate responsibility.
Answer: True False
39) Corporate philanthropy refers to the position a firm takes on social and political issues.
Answer: True False
3
40) A business that takes a public position on a political issue is exercising corporate social
responsibility.
Answer: True False
41) Defining a socially responsible company is complicated. We can’t seem to agree on what being
socially responsible involves.
Answer: True False
42) The CSR movement would have it that the purpose of the organization is to create shared value.
Answer: True False
43) At a recent town hall meeting, citizens expressed concern regarding the impact of a proposed new
gambling casino. The owner of the proposed casino responds, “I don’t know what all of this fuss is
about. I’m just a businessman trying to earn a profit, provide new jobs, and pay taxes.” His response
reflects a commitment to corporate social responsibility.
Answer: True False
44) A new law requiring businesses to give 90 day notice of their plans to close an office or factory was
recently enacted. This action indicates the public’s desire for businesses to behave in a socially
responsible manner.
Answer: True False
45) The concept of social responsibility is universally accepted.
Answer: True False
46) A growing percentage of consumers are willing to spend the same, or more, on products or services
from organizations that demonstrate the effective execution of CSR initiatives.
Answer: True False
47) Everyone agrees on what constitutes corporate social responsibility.
Answer: True False
48) The “strategic partnering” level of corporate social responsibility is at the top of the CSR pyramid.
Answer: True False
49) The true integration of CSR initiatives into corporate strategy requires movement beyond the
philanthropy and personal projects level.
Answer: True False
50) The “strategic partnering” level of corporate social responsibility requires a cultural shift within the
organization.
Answer: True False
51) The “philanthropy” level of corporate social responsibility is at the top of the CSR pyramid.
Answer: True False
4
52) One of the fundamental shifts in the integration of strategy and the social agenda is when the
organization recognizes that certain social issues impact the key drivers of the organization’s
competitiveness.
Answer: True False
53) One of the fundamental shifts in the integration of strategy and the social agenda is from responding
to social issues to treating CSR as a core root of the strategic planning process.
Answer: True False
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
54) Which of the following have NOT been cited as incidents of unethical business activity recently?
A) Accounting fraud
B) Deceptive advertising of food products
C) Unfair competitive practices in the computer industry
D) Firms making effective use of recycle materials
E) Deceptive advertising of medicines and toys
Answer: D
55) Which of the following best describes the group(s) to receive communication after a firm has
developed a code of ethics?
A) the media
B) stockholders.
C) everyone with whom the business interacts.
D) all levels of management.
E) the police in jurisdictions where the business has operations.
Answer: C
56) Which step is the most critical to help improve business ethics?
A) Outsiders must be told about the ethics program.
B) The ethics code must be enforced.
C) An ethics office must be set up.
D) Insiders must be told about the ethics program.
E) Top management must adopt and support a corporate code of conduct.
Answer: B
57) Product accessibility practices and consumer safety information are associated with which of the
quadrants of managerial responsibility?
A) Market assessment and strategy development
B) Business system design and development
C) Financial resource management
D) Attracting, retaining and managing talent
E) Stakeholder management and retention
Answer: A
5
58) Those who argue in favour of corporate social responsibility suggest that:
A) you need to justify socially responsible behaviour from an investors standpoint only.
B) companies who are perceived as being socially responsible will ultimately earn more profits for
their investors.
C) being socially responsible is all about being ethical.
D) social responsibility is simply a cost to the organization.
E) business exists only to make money for shareholders.
Answer: B
59) Which of the following is NOT accurate about codes of ethics?
A) Codes of ethics limit the opportunity to behave unethically by providing punishments for
violations of the rules and standards.
B) Codes of ethics expand the opportunity to behave ethically by providing rewards for following
the rules.
C) Codes of ethics limit behaviour to legal/regulatory compliance.
D) Codes of ethics limit the opportunity to behave unethically by providing rewards for violations
of the rules and standards.
E) Codes of ethics expand the opportunity to behave ethically by providing punishments for
following the rules.
Answer: C
60) Corporate social responsibility describes the firm’s:
A) concern for the welfare of society.
B) responsibility to their stockholders.
C) ability to plan for the unexpected.
D) commitment to a management training program.
E) commitment to maximizing profits.
Answer: A
61) As a new employee, Vanessa has heard her boss say, “Do whatever it takes to meet your sales quota.
However, anyone caught violating a law will be immediately fired.” Vanessa recognizes this as a(n)
________-based code of ethics.
A) Internet
B) personal responsibility
C) integrity
D) compliance
E) equality
Answer: D
6
62) Which of the following describes charitable donations by corporations to not-for-profit
organizations?
A) Corporate strategy
B) Structural commitment
C) Corporate responsibility
D) Stakeholder servitude
E) Corporate philanthropy
Answer: E
63) Corporate ________ encompasses various issues such as setting minority hiring practices,
manufacturing safe products, and minimizing pollution.
A) diversity
B) human resource management
C) structure and strategy
D) responsibility
E) philanthropy
Answer: D
64) Which of the following is NOT one of the “attracting, retaining, and managing talent”
responsibilities?
A) Employee benefit programs
B) Education and training
C) Safe working conditions
D) Diversity and discrimination
E) Outsourcing practices
Answer: E
65) Which of the following were not identified as being fundamental to the CSR definition?
A) giving back to society
B) energy consumption
C) helping others
D) being environmentally responsible
E) operating ethically, honestly, and lawfully
Answer: B
66) The Sarbanes-Oxley Act and Ontario’s Bill C-198 were both passed to:
A) help investors recoup their losses.
B) improve corporate profits.
C) help restore confidence in Corporate America and Canada.
D) help laid-off employees get their jobs back.
E) punish those who committed accounting fraud in the late 1990s.
Answer: C
7
67) Determining what is involved for a firm to be socially responsible:
A) is easy.
B) helps government officials develop appropriate legislation.
C) varies even among those who are interested in corporate responsibility.
D) is impossible
E) varies from industry to industry.
Answer: C
68) Which of the following would be a unique focus of an integrity-based ethics code?
A) Increased control over employee actions.
B) Increased penalties for code violators.
C) Improved awareness of the relevant laws.
D) Shared accountability among employees.
E) Stakeholder awareness.
Answer: D
69) Which of the following is NOT one of the “financial resource management” responsibilities?
A) Ethical financial reporting practices
B) Resource procurement and consumption practices
C) Financial transparency
D) Stakeholder servitude
E) Investor relations
Answer: B
70) Top leaders in government and business today are:
A) held to less strict moral standards than in the past.
B) at odds with the general public in regard to ethical issues.
C) less interested in social responsibility than in the past.
D) held to higher ethical standards than in the past.
E) not at all concerned about ethics and corporate social responsibility.
Answer: D
71) If a business fails in meeting its responsibilities to its employees, all of the following are likely to
occur EXCEPT:
A) employee retaliation by doing the minimum needed to get by.
B) reduced employee turnover.
C) loss of employee commitment to the company and its management.
D) disgruntled workers manipulating budgets and expenses.
E) loss of employee trust in the company
Answer: B
8
72) A set of formalized rules and standards that describe what a company expects of its employees is
called a(n)
A) guideline.
B) opportunity.
C) code of ethics.
D) law.
E) moral philosophy.
Answer: C
73) A competitive corporate environment:
A) must be ignored when corporate ethics are developed.
B) should focus on improving corporate profit.
C) can best define ethical behaviour based on current circumstances.
D) will always be discouraging for employees.
E) can encourage employees to deceive customers.
Answer: E
74) All else held equal, socially responsible firms:
A) are viewed more favourably by consumers.
B) are viewed no more or no less favourably than pure profit-driven firms.
C) often experience customer loyalty problems.
D) fail to earn sufficient profits for their owners.
E) enjoy significantly higher profits.
Answer: A
75) Which of the following is not one of the approaches associated with corporate social responsibility?
A) Personal projects
B) Altruistic
C) Philanthropy
D) Strategic partnering
E) Operational initiatives
Answer: B
76) What occurs when an employee exposes an employer’s wrongdoing to outsiders?
A) Mayhem
B) Whistleblowing
C) Plagiarism
D) Fraud
E) A criminal lawsuit
Answer: B
9
77) One strategy guaranteed to displease your customers is to:
A) focus on cost and quality control systems within your organization.
B) delight them with a quality product at a fair price.
C) raise prices for product innovations.
D) practice deception regarding product safety issues.
E) shift the production of goods to foreign facilities and layoff Canadian workers.
Answer: D
78) Following an ethics-based approach to decision making will normally lead to higher ________.
A) employee turnover
B) trust and cooperation
C) prices
D) profits
E) customer defections
Answer: B
79) A business’s responsibilities to its owners and investors include all of the following EXCEPT:
A) encouraging a strong family dynamic.
B) maximizing their investment in the firm.
C) providing all relevant information about current and projected performance of the firm.
D) protecting the owners’ rights and investments.
E) maintaining proper accounting procedures.
Answer: A
80) Which of the following is NOT one of the “market assessment and strategy development”
responsibilities?
A) Consumer safety information
B) Research practices
C) Pricing practices
D) Product safety
E) Customer privacy policies and practices
Answer: B
81) Which area of the ethics wheel includes such factors as structure of reward systems and pressure
from superiors?
A) societal
B) industry practices
C) individual
D) business culture
E) professional
Answer: D
10
82) Which area of the ethics wheel includes such factors as spiritual influences and social image?
A) individual
B) professional
C) industry practices
D) business culture
E) societal
Answer: A
83) Top management at Lancer Distributing is convinced that they have a social responsibility to their
community. They believe that they can have the greatest impact in this area through cash
contributions to not-for-profit organizations. This is an example of corporate:
A) guilt payments.
B) short-run profit maximization.
C) graft.
D) philanthropy.
E) structure and strategy.
Answer: D
84) With respect to business ethics, it can be said that “it takes two to tango.” This indicates that:
A) management can include legal and illegal behaviour.
B) an individual’s behaviour is influenced by the behaviour of others.
C) management is insensitive to ethical issues.
D) dancing around issues should be part of a firm’s code of ethics.
E) teamwork eliminates a need for personal ethics.
Answer: B
85) The majority of CEOs blame unethical employee conduct on:
A) a failure of leadership to establish ethical standards.
B) the nation’s business schools that tolerate unethical behaviour in students.
C) the breakdown of traditional religious institutions.
D) whistleblowers.
E) the increase in lawsuits used to avoid personal responsibility.
Answer: A
86) Which of the following terms describes someone who reports illegal or unethical behaviour?
A) Watch tower sentinel
B) Integrity watchdog
C) Whistleblower
D) Horn blower
E) Cheater
Answer: C
11
87) Consumers vote against firms they view as socially irresponsible by not:
A) writing their representatives in Congress.
B) filing complaints with the company.
C) boycotting the company’s products.
D) buying the company’s products.
E) expressing dissatisfaction by protesting.
Answer: D
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
88) What is business ethics?
Answer: Ethics, in its purest sense, reflect the moral principles or beliefs about what an individual
views as being right or wrong. These beliefs are built, in part, around the norms or standards
of conduct which society views as being acceptable behavioural practices. In many ways,
ethics can be thought of as an invisible hand which is inside each of us and guides us as we
make decisions. Because ethics is so personal, herein lies the problem, or challenge, with
respect to assessing the ethical boundaries within which an individual will operate.
89) How can an organization improve ethical behaviour?
Answer: In forming a culture of ethical behaviour and financial integrity, boards of directors are, in
essence, trying to establish what is considered to be the accepted zone of business actions and
activities for an organization. The establishment of this structure within the culture keeps an
organization’s decision-making process and its activities within what is considered to be the
zone of accepted business principles (“green” zone) around which a company is to operate,
and acts as a barrier, for managers and individuals, in order to keep them from straying into
the zone of ethical and decision-making uncertainty (“grey” zone), or the zone of clearly
defined unethical behaviour, which is referred to as the “red” zone.
12
90) What actions can a board of directors do to create a culture of ethical behaviour and financial
integrity?
Answer: For boards to effectively create a culture of ethical behaviour and financial integrity, they must commit
to the following specific actions:
1. The board must clearly define and establish boundaries of acceptable behaviour and financial
integrity, and create performance standards to evaluate adherence to these parameters.
2. These boundaries must be clearly understood and communicated to all employees in the form
of a policy or code of conduct. This code of conduct is not limited to financial integrity only,
but should clearly identify boundaries associated with ethical behaviour, both internal and
external, and the consequences for failure to adhere to such a policy or code of conduct. A key
requirement at this level is that the senior management team of the organization fully buys into the
development process and the integration of this code of conduct into the organization’s policies,
protocols, and overall culture.
3. The board of directors must appoint a representative (individual or committee), at the board level,
whose responsibility is to audit managerial and employee performance and action in critical
areas of this policy or code of conduct. This representative or committee would also be a key
participant in the reviewing of compensation packages and other personnel-related policies to
ensure that these are not designed in a way which would encourage unethical behaviour.
4. The board of directors must create and support a mechanism for the reporting of ethical concerns
(whistle-blowing) within the organization, with such a process designed in a way which ensures that
employees who utilize such a process are not penalized or ostracized.
5. The board of directors, and/or its representative, must interact with senior management and
external agencies monitoring the organization’s activities in order to discuss issues which
could arise, with respect to management and/or employees, and represent the best interests of
the organization and its shareholders, with respect to questions of ethical behaviour and/or
financial integrity.
91) What is Corporate Social Responsibility (CSR) all about?
Answer: This is, in essence, what Corporate Social Responsibility (CSR) is all about.
It is the understanding that the purpose of an organization is to create shared value (business and
society) by strategically integrating into its actions a partnership mentality with society where the
objectives of both parties are met.
It means treating the “public interest” as a key stakeholder in an organization’s operational success,
thereby resulting in an attitude shift of “winning for me”, or “looking out only for me”, to one of
participating in activities which enable the organization to win while serving the “public good”.
Making decisions in this broader context is the key to moving the organization beyond the
development of a strong corporate reputation and image, which may or may not add value to
society, to that of an organization whose core premise is built on creating shareholder value by
actively partnering in environmental, social, and public policy programs and initiatives which
contribute to the long-term health of society.
13
92) How does a corporation move to a true integration of CSR into corporate strategy?
Answer: The true integration of CSR initiatives into corporate strategy does, however, require
movement beyond these two base areas. A key transition component to this evolution is the
commencement, within a company, of viewing operational systems and tactics with social
responsibility outcomes in mind. This forms the middle area of the pyramid, called
“operational initiatives.” What separates this area from the two prior areas discussed is the
transition from arm’s-length social issues to that of social issues which are impacted as a result
of the organization’s day-to-day operations.
93) Explain why shareholders would be willing to sacrifice returns in order to maintain a longer-term
social contract in areas which benefit non-financially-committed stakeholders.
Answer: The answers to the question posed above lie in management and its board of directors’ ability
to create the necessary data which demonstrates how CSR initiatives are, and why they need to
be, fully integrated into an organization’s strategy and operations. This means developing
those very metrics, identified above, which will enable investors to understand their value and
to see how a conscious effort towards the triple bottom line of people, planet, and profits
really does enhance the final “P,” that being profits. Such an outcome can only be achieved by
a disciplined approach to business planning which identifies CSR as a core pillar within the
strategic planning process. Equally challenging will be management’s and its board of
directors’ task of communicating the societal partnership benefits to the external stakeholders
and communities while communicating, internally, the win/win nature of the arrangement.
94) Do Canadian not-for-profit leaders need to worry about CSR?
Answer: Yes. Not-for-profits and charities must earn and maintain the trust of Canadians in order to be
the recipients of their generosity. This means that these same managers must be able to
communicate, to Canadians, the legitimacy of their organizations, be able to provide clear
outcomes for the programs and services which they are providing, and be fully able (and with
credibility) to provide prospective donors with an accounting for how their organization
spends their money.
95) What is the common thread that allows managers to manage and motivate their employees within
successful organizations?
Answer: The common thread is trust.
Trust is fundamental to all that we do and to everyone whom we interact with. As was indicated earlier
in this chapter, the best asset you can bring to work, on a day-to-day basis, is your integrity. This means
being honest, respecting the dignity of others, listening before you speak, being accountable for your
mistakes, doing what you say you are going to do, demonstrating transparency in the decisions which
you make, not presuming that you have all the answers, and thanking people for the feedback which yo
receive.
Successful managers are open and authentic. They encourage open discussion, communicate their
concerns, actively discuss risk, and they don’t manipulate people or distort facts.
14
Answer Key
Testname: UNTITLED5
1) FALSE
2) TRUE
3) TRUE
4) FALSE
5) FALSE
6) FALSE
7) FALSE
8) TRUE
9) TRUE
10) FALSE
11) TRUE
12) TRUE
13) TRUE
14) TRUE
15) TRUE
16) FALSE
17) FALSE
18) TRUE
19) TRUE
20) TRUE
21) TRUE
22) TRUE
23) TRUE
24) FALSE
25) TRUE
26) FALSE
27) TRUE
28) FALSE
29) TRUE
30) TRUE
31) FALSE
32) FALSE
33) FALSE
34) FALSE
35) FALSE
36) TRUE
37) FALSE
38) TRUE
39) FALSE
40) TRUE
41) TRUE
42) TRUE
43) FALSE
44) TRUE
45) FALSE
46) TRUE
47) FALSE
48) TRUE
49) TRUE
50) TRUE
15
Answer Key
Testname: UNTITLED5
51) FALSE
52) TRUE
53) TRUE
54) D
55) C
56) B
57) A
58) B
59) C
60) A
61) D
62) E
63) D
64) E
65) B
66) C
67) C
68) D
69) B
70) D
71) B
72) C
73) E
74) A
75) B
76) B
77) D
78) B
79) A
80) B
81) D
82) A
83) D
84) B
85) A
86) C
87) D
88) Ethics, in its purest sense, reflect the moral principles or beliefs about what an individual views as being
right or wrong. These beliefs are built, in part, around the norms or standards of conduct which society
views as being acceptable behavioural practices. In many ways, ethics can be thought of as an invisible
hand which is inside each of us and guides us as we make decisions. Because ethics is so personal, herein
lies the problem, or challenge, with respect to assessing the ethical boundaries within which an individual
will operate.
16
Answer Key
Testname: UNTITLED5
89) In forming a culture of ethical behaviour and financial integrity, boards of directors are, in essence, trying
to establish what is considered to be the accepted zone of business actions and activities for an
organization. The establishment of this structure within the culture keeps an organization’s
decision-making process and its activities within what is considered to be the zone of accepted business
principles (“green” zone) around which a company is to operate, and acts as a barrier, for managers and
individuals, in order to keep them from straying into the zone of ethical and decision-making uncertainty
(“grey” zone), or the zone of clearly defined unethical behaviour, which is referred to as the “red” zone.
90) For boards to effectively create a culture of ethical behaviour and financial integrity, they must commit to the
following specific actions:
1. The board must clearly define and establish boundaries of acceptable behaviour and financial integrity, and creat
performance standards to evaluate adherence to these parameters.
2. These boundaries must be clearly understood and communicated to all employees in the form of a policy
or code of conduct. This code of conduct is not limited to financial integrity only, but should clearly
identify boundaries associated with ethical behaviour, both internal and external, and the consequences for
failure to adhere to such a policy or code of conduct. A key requirement at this level is that the senior
management team of the organization fully buys into the development process and the integration of this code of
conduct into the organization’s policies, protocols, and overall culture.
3. The board of directors must appoint a representative (individual or committee), at the board level, whose
responsibility is to audit managerial and employee performance and action in critical areas of this policy or
code of conduct. This representative or committee would also be a key participant in the reviewing of
compensation packages and other personnel-related policies to ensure that these are not designed in a way
which would encourage unethical behaviour.
4. The board of directors must create and support a mechanism for the reporting of ethical concerns
(whistle-blowing) within the organization, with such a process designed in a way which ensures that employees wh
utilize such a process are not penalized or ostracized.
5. The board of directors, and/or its representative, must interact with senior management and external agencies
monitoring the organization’s activities in order to discuss issues which could arise, with respect to
management and/or employees, and represent the best interests of the organization and its shareholders,
with respect to questions of ethical behaviour and/or financial integrity.
91) This is, in essence, what Corporate Social Responsibility (CSR) is all about.
It is the understanding that the purpose of an organization is to create shared value (business and society) by
strategically integrating into its actions a partnership mentality with society where the objectives of both parties are
met.
It means treating the “public interest” as a key stakeholder in an organization’s operational success, thereby resultin
in an attitude shift of “winning for me”, or “looking out only for me”, to one of participating in activities which ena
the organization to win while serving the “public good”.
Making decisions in this broader context is the key to moving the organization beyond the development of a
strong corporate reputation and image, which may or may not add value to society, to that of an
organization whose core premise is built on creating shareholder value by actively partnering in
environmental, social, and public policy programs and initiatives which contribute to the long-term health
of society.
17
Answer Key
Testname: UNTITLED5
92) The true integration of CSR initiatives into corporate strategy does, however, require movement beyond
these two base areas. A key transition component to this evolution is the commencement, within a
company, of viewing operational systems and tactics with social responsibility outcomes in mind. This
forms the middle area of the pyramid, called “operational initiatives.” What separates this area from the
two prior areas discussed is the transition from arm’s-length social issues to that of social issues which are
impacted as a result of the organization’s day-to-day operations.
93) The answers to the question posed above lie in management and its board of directors’ ability to create the
necessary data which demonstrates how CSR initiatives are, and why they need to be, fully integrated into
an organization’s strategy and operations. This means developing those very metrics, identified above,
which will enable investors to understand their value and to see how a conscious effort towards the triple
bottom line of people, planet, and profits really does enhance the final “P,” that being profits. Such an
outcome can only be achieved by a disciplined approach to business planning which identifies CSR as a
core pillar within the strategic planning process. Equally challenging will be management’s and its board
of directors’ task of communicating the societal partnership benefits to the external stakeholders and
communities while communicating, internally, the win/win nature of the arrangement.
94) Yes. Not-for-profits and charities must earn and maintain the trust of Canadians in order to be the
recipients of their generosity. This means that these same managers must be able to communicate, to
Canadians, the legitimacy of their organizations, be able to provide clear outcomes for the programs and
services which they are providing, and be fully able (and with credibility) to provide prospective donors
with an accounting for how their organization spends their money.
95) The common thread is trust.
Trust is fundamental to all that we do and to everyone whom we interact with. As was indicated earlier in this
chapter, the best asset you can bring to work, on a day-to-day basis, is your integrity. This means being honest,
respecting the dignity of others, listening before you speak, being accountable for your mistakes, doing what you sa
you are going to do, demonstrating transparency in the decisions which you make, not presuming that you have all
answers, and thanking people for the feedback which you receive.
Successful managers are open and authentic. They encourage open discussion, communicate their concerns, activel
discuss risk, and they don’t manipulate people or distort facts.
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