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Business English Exercises
 

Corporate Social Responsibility

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 247
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corporate social responsibility answer 1
As tales of labor abuse in developing countries by multinational companies have made the headlines in developed countries, some of these companies have adopted voluntary corporate social responsibility codes.

Correct answer: (c) made

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corporate social responsibility answer 2
These codes are initiatives taken by companies over and above their legal obligations to treat the stakeholders of the firm ethically and in a responsible manner.

Correct answer: (d) initiatives

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corporate social responsibility answer 3
This is a move beyond the narrow view of pursuing only short-term profit-maximizing objectives to a broader view of greater social responsibility, but while these codes promote decent work standards, they do not necessarily mean more jobs.

Correct answer: (a) decent

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corporate social responsibility answer 4
Companies are not implementing these new corporate social responsibility standards solely for altruistic reasons, but rather there is a burgeoning market for standards in which companies will provide standards if consumer will pay more for this benefit.

Correct answer: (b) altruistic

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corporate social responsibility answer 5
But the demand curve for standards is kinked, with consumers not willing to pay that much more for standards but would cause a huge adverse impact if a company allowed for major labor violations.

Correct answer: (b) that

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corporate social responsibility answer 6
The persistence of violations and consumers' desire for adequate labor conditions has led to the proliferation of vigilantes and verifiers (organizations that check that companies are actually following their reforms, such as the Fair Labor Association and Social Accountability International).

Correct answer: (d) proliferation

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corporate social responsibility answer 7
For any effort by either the vigilantes or the verifiers to be successful, it needs to involve the workers in question since they are the ones who confront the conditions on a daily basis.

Correct answer: (c) question

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corporate social responsibility answer 8
The standards market has an inherent limitation, since it relies on consumers in developed countries to take action; it therefore limits the number of affected products, and since the worst abuses occur in the informal sector, there is much that corporate codes of conduct will be unable to change.

Correct answer: (a) abuses

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corporate social responsibility answer 9
While voluntary corporate codes of conduct are a start, they are not enough to fully address the problem.

Correct answer: (a) address

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corporate social responsibility answer 10
National action (and perhaps legislation) can improve the outcomes of corporate codes and monitoring, in areas such as transparency, consultations by auditors and monitors with local authority, and consistent enforcement of labor standards.

Correct answer: (b) outcomes

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