Quiz 4

Question 1

All business owners are also

Answer 1

Investors

Question 2

Shareholder

Answer 2

an owner who holds legal title to a part of the company

Question 3

Dual-class stock

Answer 3

more than one type of stock issued by a corporation

Question 4

non-voting/restricted shares

Answer 4

permitted on TSX. restricted shares limit voting

Question 5

Passive shareholders

Answer 5

those who do not attempt to influence the affairs of the corporation even though they have a legal right to do so

Question 6

Active shareholders

Answer 6

those who participate in the governance to the full extent allowed by the law

Question 7

Socially responsible investing (SRI)

Answer 7

aims to incorporate ESG factors into investment decisions

Question 8

Passive screening

Answer 8

invest in corporations with good social/economic records and enlightened industrial/stakeholder relations

Question 9

negative screening

Answer 9

identify objectionable corporations

Question 10

best of sector

Answer 10

compare and rank within an industry to encourage improvement

Question 11

corporate governance

Answer 11

the processes, structures, and relationships through which the shareholders, as represented by a board of directors, oversee the activities of the corporation

Question 12

say-on-pay

Answer 12

shareholders’ ability to vote on executives’ remuneration

Question 13

CEO pay ratio

Answer 13

ratio of CEO compensation to median employee compensation

Question 14

Why do boards need to pay attention to ethics?

Answer 14

Globalization: need to consider TBL impacts, including in developing countries

Loss of trust: businesses have had several breaches, including compensation, outsourcing, environmental disasters, and the stock market

civil society activism: NGOs and other civil society organizations are more effective at highlighting corporate misdeeds and mistakes

investor interest: investors keen on responsible investing

Question 15

Private sector

Answer 15

run by private individuals and corporations. generate wealth through earnings

Question 16

social sector

Answer 16

Charities and NFPs. solicit donations and sometimes generate earnings to create public benefit with no profit motive

Question 17

Public sector

Answer 17

government seeks to create public benefit, usually with no profit motive

Question 18

Public-private partnership (PPP)

Answer 18

co-operative venture between the public and private sectors, built on the expertise of each partner

Question 19

Fourth Sector

Answer 19

Merge the market-based approaches of the private sector with the public benefit focus of the social sector

Question 20

Sustainability strategy

Answer 20

a plan that views economic, ethical, social, and environmental responsibilities more intensively

integrates CSR into all facets of the corporation’s operations

Question 21

stages of CSR

Answer 21

Defensive - criticism from stakeholders for the alleged negative societal or environmental impact that may affect brand reputation

Compliant - mitigating litigation risk, protecting the organization’s brand and economic value

Managerial - assessing that a problem is a long-term risk and thus needs to be addressed in the organization’s value chain or daily operations

Strategic - seeing the benefit of addressing an issue; responding to stakeholders’ needs may be seen as a source of long-term competitive advantage

Civil - Recognition that collective action on a stakeholder issue will diminish first-mover advantage

Question 22

Intrapreneurship

Answer 22

process of addressing social challenges from inside established organizations

Question 23

Extrapreneurship

Answer 23

process of inter-organizational action facilitating alternative combinations of ideas, peoples, places, and resources to address social challenges

Question 24

Social entrepreneur

Answer 24

innovative, visionary leader of a non-profit or for-profit business with real-world problem-solving creativity

Question 25

Social enterprise

Answer 25

a model of business operation where some or all profits are deliberately used to further social aims

Question 26

B corporation

Answer 26

Operates to make profits but has a strong commitment to addressing social and envionmental problems

Question 27

Social innovation

Answer 27

a novel solution to a social problem that is more effective, efficient, sustainable, or just than curent solutions, where the value created accrues primarily to society rather than to private individuals - fuels for the fourth sector

Question 28

the sharing economy

Answer 28

a sustainable social and economic system involving the sharing of human and physical resources - often operates with little government regulation

Question 29

Philanthrocapitalism

Answer 29

draws upon modern business practices with an entrepreneurial spirit to get more from non-profit or social organizations - seeks to address coail issues in the developing world: health, education, poverty reduction, equality

Question 30

Social Capital

Answer 30

any aspect of a corporation's organizational arrangements that creates value and facilitates the actions of stakeholders within and external to the corporation created when stakeholders and corporations have relationships facilitating understanding, co-operation, and coordination

Question 31

levels of organizational culture

Answer 31

level 1: compliance, focused on law & norms level 2: relationship management, value created and traded off level 3: sustainable organizational culture -- maximizes value creation

Question 32

sustainable capitalism

Answer 32

an economic system within which business and trade seek to maximize long-term value creation, accounting for all material ESG metrics

Question 33

Responsible enterprise system

Answer 33

economic system operating as a free enterprise system but incorporating the element of accountability

Question 34

stakeholder capitalism

Answer 34

economic system in which corporations accept broader obligations beyond financial ones for shareholders

Question 35

clean capitalism

Answer 35

economic system that incorporates the social, economic, and ecological benefits and costs, and actors know the full impacts of their actions

Question 36

conscious capitalism

Answer 36

based on four pillars: higher purpose, stakeholder orientation, conscious leadership, and conscious culture

Question 37

creative capitalism

Answer 37

places the resolution of social needs as a primary goal of economic activity, rather than as a secondary consequence

Question 38

moral capitalism

Answer 38

principled capitalism with sustainable prosperity

Question 39

inclusive capitalism

Answer 39

addresses growing income inequality, unemployment, falling social mobility, and poverty and the ways capitalism can alleviate it

Question 40

progressive capitalism

Answer 40

recognizes the government's role in making the market system serve society