When Considering Whether or Not a Company Should Engage in CSR

question 21

Multiple Choice

When considering whether or not a company should engage in CSR, it is important to look at the company values. Some companies believe providing a return to shareholders is the sole purpose for the existence of the business. In these companies, believers in CSR will best convince company non-believers with which of the following arguments:

• A)"CSR is the new trend; in order to keep up in business,we must implement a CSR plan."
• B)"We can use CSR to build a stronger relationship with our customers."
• C)"It is simply the right thing to do."
• D)"CSR initiatives,for example reducing the company's environmental footprint,is shown to reduce costs and add to the bottom line."
• E)"We should generate an ad campaign that shows that our company thinks 'green.'"

Understand and calculate economic value added (EVA) and its significance for corporate performance.

Recognize the implications of investment decisions on financial performance indicators.

Understand the principles of performance evaluation and the role of controllable versus non-controllable factors.

Differentiate between intrinsic and extrinsic rewards and understand their impact on motivation.

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Definitions:

Holder in Due Course

A party that has acquired a negotiable instrument in good faith and for value, granting them certain protections and rights under the law.

Bearer Instrument

A financial document that is not registered in the name of any owner and thus the physical holder has the right to the document's value or benefit.

Signature

A handwritten or digitally produced mark made by an individual to signify agreement, approval, or identity.

Bank Draft

A check drawn by one bank on another bank in which it has funds on deposit in favor of a third person, the payee. Also called teller’s check.