G202 Quiz 3 Review
Starbucks and NGO Campaigns Quiz
Test your knowledge on corporate social responsibility and the tactics used by NGOs to influence big brands like Starbucks and Levi's. This quiz focuses on key case studies and the impact of social movements on business practices.
- Learn about strategic targets in fair trade campaigns
- Explore lessons learned from Starbucks' engagement with NGOs
- Assess the implications of investing in sustainability initiatives
According to the Starbucks case, which of the following is not one of the reasons Starbucks made a strategic target for Global Exchange's campaign for fair trade coffee?
Starbucks had been recently ranked as one of the 'Best Global Brands' by Business Week.
Starbucks retail stores had penetrated most markets within the US, making it easier to gather for demonstrations.
Starbucks large volume of coffee purchases, gave it the potential to significantly increase the amount of fair trade coffee offered for sale in retail markets.
There were high switching costs incurred by loyal customers when shifting their consumption of coffee away from Starbucks.
Which of the following is a true statement regarding the seven lessons to take away from the Starbucks case?
Socially responsible companies are the least likely targets for NGO campaigns.
The only time firms should collaborate with NGOs is after a crisis has started.
Firms should never compromise when collaborating with NGOs.
Firms should think more like NGOs by using communication strategically.
Which of the following is a correct statement regarding the pros and cons of Levi's investing in the Screened Chemsitry program first, before all others?
The pro of Levi's investing first is the first-mover advantage with implementing the new chemical screening program.
The con of Levi's investing first is the fact that its rivals can easily catch up to Levi's standards with only minor processing fees.
The pro of Levi's investing first is gaining reputational leadership over all others in the industry.
There is no downside risk to Levi's investing first.
Which of the following statements is true regarding where the DeTox resolution landed?
Levi's and the industry did next to nothing that Greenpeace demanded as the demands of the activist campaign were unreasonable.
Levi's and the industry did next to nothing that Greenpeace demanded as there was no leverage over the industry profits.
Levi's and the industry gave most of Greenpeace's demands because several governments passed legislation against using toxic chemicals.
Levi's and the industry gave into most of Greenpeace's demands because consumers tastes aligned with the campaigns reasonable demands and the activist's boycotts hurt industry profits.
Which of the following is not one of the causes of the rise in NGO campaigns?
Communication costs are rapidly decreasing.
Businesses are becoming more global.
Government bureaucracy is getting thicker.
Public trust in corporations is increasing.
Which of the following is an example of private politics?
Rainforest Action Network threatening to boycott Home Depot stores if the company does not source more FSC-certified wood products to offer to its customers.
Bob Dole directly lobbying the EU governments to remove their common policy on bananas to aid Chiquita who was negatively impacted by trade regulation.
Eaton corporation working in the government-sponsored industry partnership. The 21st Century truck Partnership, to produce a hybrid delivery truck.
Greenpeace lobbying the US Congress to implement a cap-n-trade regulation system of tradable carbon pollution permits that would include retailers like Wal-Mart and Target.
Considering only the action of private politics, which of the following firm-stakeholders is not a possible leverage point for an NGO to use?
Employees
Public Policy Makers
Customers
Investors
In regards to private politics, the stage within the normal political issue that is replaced by a NGO making direct demands on a firm is the
Developmental stage
Politicalization stage
Legislative stage
Implementation stage
Within firm-NGO disputes, the resolution of the conflict can range between the firm doing nothing at one extreme and the firm doing everything that the NGO has asked at the other extreme. Where the resolution of a particular campaign occurs within this range of outcomes is influenced by
The costs the firm incurs when meeting the NGO demands as a percent of the firm’s total revenue.
The number of volunteers the NGO can organize relative to the number of employees the firm has on its payroll.
How large the NGO’s budget is relative to the budget of the firm.
How much leverage the NGO has over the firm and how reasonable the NGO’s demands are.
Consider a good that generates external damages. A competitive market that is left un- regulated tends to
Produce less than the efficient amount of the good.
Charge a lower price than the price that would result in maximized social welfare.
Produce more than the profit maximizing amount of the good.
Charge a higher price than the price that would result in profit maximization.
Which of the following is an incorrect statement regarding tradable pollution permits?
The pollution permits have value because there is a limited supply relative to demand.
Firms with high pollution levels can experience abatement cost savings under a system of tradable pollution permits.
Firms with low pollution levels can experience profit gains under a system of tradable pollution permits.
Environmental groups can not affect the overall level of pollution under a system of tradable pollution permits.
Steve's profit maximizing quantity is Qf = 4, while his socially efficient quantity is Qe = 2.
Steve's profit maximizing quantity is Qf = 3, while his socially efficient quantity is Qe = 3.
Steve's profit maximizing quantity is Qf = 2, while his socially efficient quantity is Qe = 4.
Steve's profit maximizing quantity is Qf = 1, while his socially efficient quantity is Qe = 5.
$80
$100
$110
$130
Which of the following is not a reason for employing strategic sustainability efforts?
To attract green venture funds.
To retain and attract employees that are concerned about green issues.
To increase consumer valuation of your brand.
To further differentiate your business model from the demands of green NGOs.
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