Chapter 11 (Nonprofits and corporate social responsibility)

Question 1

• knowns as nongovernmental organizations,
• are tax exempt
• operate in sectors such as healthcare, education, environment, human rights
• allowed to make income
  what is this ?

Answer 1

nonprofit

Question 2

• involves identifying and cultivating donor prospects and converting those prospects into donors
• can be difficult to go back to many of the same donors every year and continue to ask for support
• in hard economic times, nonprofits might have more difficulty convincing people to make a gift
  what is this ?

Answer 2

individual donations

Question 3

• seek out grants from corporations, private foundations, and government agencies
• this could entail submitting a proposal and application that details your goals and expected outcomes based on how much money you are seeking
  what is this ?

Answer 3

grants and foundation

Question 4

• enables the nonprofit to be more sustainable and less susceptible to downturns in donations and/or grants
• much more entrepreneurial in nature and requires the ability to balance financial sustainability with social impact
  what is this ?

Answer 4

income generating social enterprise

Question 5

a company’s attempt at operating in an ethical and socially responsible manner in the communities where it operates
what is this ?

Answer 5

corporate social responsibility (CSR)

Question 6

what are the 3 things in a stakeholder approach ?

Answer 6

1. people
2. profit
3. planet

Question 7

international organization helps businesses and governments understand and communicate the impact they are having on the issues that they are tackling
what is this ?

Answer 7

global reporting initiative (GRI)

Question 8

a green building certification program that is used worldwide
what is this ?

Answer 8

leadership in energy and environmental design (LEED)

Question 9

• a certification system that aims to promote more equitable and sustainable trading practices both between producers and between consumers in developed countries.
• the system seeks to address power imbalances so that producers receive a fair compensation for their labor
  what is this ?

Answer 9

fair trade

Question 10

What are there 3 ways to measure CSR efforts ?

Answer 10

1. global reporting initiative (GRI)
2. leadership in energy and environmental design (LEED)
3. fair trade

Question 11

the social responsibility of business is to increase its profits
what is this ?

Answer 11

shareholder theory (Friedmond doctrine)

Question 12

a firm should create value for all stakeholders, not just shareholders
what is this ?

Answer 12

stakeholder theory

Question 13

a for profit company that legally sets a companys societal and environmental mission as a core business objective
what is this ?

Answer 13

benefit corporation

Question 14

a business with specific social objectives that serve its primary purpose
what is this ?

Answer 14

social enterprise

Question 15

• third sector
• NGOs
• NPOs
  are all what ?

Answer 15

non profits