CSC Corporate Social Responsibility & Ethical Standards 3

Question 1

Which concept describes the idea that corporations owe duties not just to shareholders but to all parties affected by their operations?

Accepted Answer

Stakeholder theory

Answer

Stakeholder theory, advanced by R. Edward Freeman, holds that firms must consider the interests of all stakeholders, not just investors.

Question 2

The B Team Responsible Tax Principles primarily call on companies to:

Accepted Answer

Pay taxes in line with economic substance and disclose tax approaches transparently

Answer

The B Team principles urge companies to pay taxes where economic activity occurs and to be transparent about their tax strategies.

Question 3

What is the primary purpose of a supplier code of conduct?

Accepted Answer

To communicate the company's minimum expectations for supplier labor, environmental, and ethical practices

Answer

A supplier code of conduct defines the non-negotiable baseline standards vendors must meet to work with the company.

Question 4

In CSR, 'shared value' (as defined by Porter and Kramer) means:

Accepted Answer

Creating economic value in a way that also creates value for society

Answer

Porter and Kramer's shared value concept argues that companies can generate competitive advantage by addressing societal problems.

Question 5

Which principle of the UN Global Compact specifically addresses anti-corruption?

Accepted Answer

Principle 10

Answer

Principle 10 of the UN Global Compact calls on businesses to work against corruption in all its forms, including extortion and bribery.

(CSC) Certified Sustainability Consultant Practice Test