111.Bayer AG was indicted as a participant in an international price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. Bayer AG paid its fine but did not admit culpability. Instead, the company announced paying the fine was less costly than litigation. Bayer AG implemented a(n) _____ strategy.
112.The social responsiveness strategy that could be considered essentially a public relations approach is the __________ strategy.
113.Rotavirus is a gastrointestinal disease that causes only a few deaths in the United States, but up to 500,000 deaths annually in developing countries. The vaccine for preventing the disease was proven to cause an extremely rare but serious side effect, so its manufacturer stopped producing it. If the manufacturer decided that, to avoid any potential liability, it would never produce the drug again even though it was still needed in developing countries, it would be following a(n) _____ strategy.
114.A company implementing a(n) __________ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems.
115.A company implementing a(n) __________ strategy would demonstrate the greatest willingness on the part of the company to meet or exceed society’s expectations.
116.The Home Depot became a retailing giant by selling hammers, nails, and lumber at discount prices. But then, the Rainforest Action Network launched a bruising PR campaign in 1997 to stop it from selling old-growth lumber. After two years of bad publicity and resistance to new store locations, Home Depot surrendered. Today, its suppliers are working with environmental and forestry groups to certify that their wood products are not from endangered areas. Home Depot used a(n) __________ strategy to respond to demands that it be socially responsible.
117.IBM has a long-standing “Reinventing Education” program, which involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do and thereby improve education. IBM is using a(n) __________ strategy to show its social responsibility.
118.IBM has a long-standing “Reinventing Education” program, which involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do and thereby improve education. In the process, the program is actually helping to shape a market of significant interest to IBM. IBM views the program as an investment rather than as a charitable contribution. This is an example of the positive relationship between social responsibility and:
119.Which of the following statements about social responsibility and economic performance is true?
a.Corporate reputation, strengthened by social responsibility, can positively affect economic performance.
b.Social responsibility guarantees profitability.
c.Defensive, accommodative, and proactive strategies result in profitability and social responsibility.
d.There is a strong inherent relationship between social responsibility and economic performance.
e.All of these statements about social responsibility and economic performance are true.
120.A small manufacturer of scented candles has asked if acting socially responsible would increase its profitability. What would you tell them?
a.Yes. Look at the examples of Starbucks Coffee and Ben & Jerry’s.
b.Yes. There is strong evidence of a positive relationship between social responsibility and economic performance.
c.No. Stakeholders do not support social responsibility if it lowers profits.
d.Yes. An improved corporate reputation can have a positive impact on economic performance.
e.Yes. Economic performance improves as soon as a socially responsible strategy is implemented.