ALPHA
The view that the only duty of a corporation is to maximize the profits accruing to its shareholders.
Shareholder theory
Refers to the act of portraying an organization’s product or services as environmentally friendly only for the sake of marketing.
Green washing
The principle-based approach is also known as _____________.
Comply or Explain
This approach to corporate governance is based on the view that a single set of rules is inappropriate for every company.
Principles-Based Approach
The duty of business to do no harm to society.
Social responsibility
States that a steward protects and maximizes shareholders wealth through firm performance.
Stewardship Theory
A CSR motivation where the firm’s objective is to produce a desired level of CSR with no regard for maximizing its social profits.
Altruistic
A CSR motivation where the firm is coerced into CSR by outside entities scrutinizing its social impact.
Egoistic
A CSR motivation where the firm identifies social activities that consumers, employees or investors value and integrates those activities into its profit-maximizing objectives.
Strategic
This theory judges a person by his/her character rather than by an action that may deviate from his/her normal behavior.
Virtue ethical theory
Name the two economists that stated that an organization's CSR involvement depends on the type of goods or services offered.
Donald Siegel and Donald Vitaliano
A category of goods which often involve strong information asymmetries between sellers and buyers, who may find it difficult to assess the service’s value even over a long period
Experience services and credence services
A stage of code of conduct development where an organization establishes a code of conduct to ensure compliance with both the law and standards of conduct the public demands.
Managing for Compliance
Name the two economists that stated that -- both the firm and society will benefit more if the firm’s socially responsible activities are aligned with the firm’s self-interest.
Bryan Husted and José de Jesus Salazar
Concerned with holding the balance between economic and social goals and between individual and communal goals.
Corporate governance
Enumerate the three basic principles which together comprise all CSR activity.
Sustainability, Accountability, Transparency
A characteristic of good governance which requires that organizations try to serve all stakeholders within a reasonable timeframe.
Responsiveness
An aspect of sustainable human development which refers to the expansion of people's capabilities and choices that increases their ability to exercise those choices.
Empowerment
An aspect of sustainable human development which states that people must be safe from threats or any sudden disruptions in their lives.
Security
A stage of code of conduct development where companies set policies responding to stakeholders’ concerns or expectations.
Managing Stakeholder Relations
Which goods category are more likely to engage in CSR because they need proof of commitment to quality and honesty?
Experience goods and credence services
Which goods category are more likely to spend more time doing CSR activities that addresses the human rights issue?
Search goods
A managerial framework used to determine the strategic resources a firm can exploit to achieve sustainable competitive advantage.
Resource-based view
The process by which you organize, monitor, and improve your relationships with your stakeholders.
Stakeholder management
A characteristic of good governance wherein processes and institutions produce results that meet needs while making the best use of resources.
Effectiveness and efficiency