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Unit 2 Corporate Image Progress Test FINAL
Unit 2 Corporate Image Progress Test FINAL
Name: _______________________________
Part 1 Reading
A corporate image is the public's perception of what your company (0) _____B_____. It is essentially
the ‘personality’ of your organization and it is what differentiates you from the competition and
establishes you in the business world. Developing a good corporate image doesn't just happen, it takes
years and sometimes decades to promote. It is ‘a series of proactive choices that
(1) ________________. an end result.’ It should go without saying that you need, first and foremost,
to ensure they your company product or service is something to be proud of, since is the primary
generator of your image. However, beyond this, there are several key components to creating and
maintaining a good corporate image.
Ethics
Whatever the company does should have an ethical underpinning from top to bottom. This requires
more than simply creating a series of ethical policies and procedures. Your ethics need to be an
(2) ______________ part of the company culture: the company will do the right thing regardless of the
result. Key to (3) ______________ this ethical framework is establishing a system of checks and
balances and reporting mechanisms that clearly lay out the (4) ______________ of breaking these
rules.
Maintaining credibility
It is essential at all costs to (10) ______________ your credibility in the market and in minds of your
customers by demonstrating that you do what you say you will do. If you are a charitable organization,
for example, then spending thousands of dollars on elaborate conferences and high-end salaries will
end up discrediting your image. Similarly, if you are trying to create an image of environmental
concern, you will need to invest in ensuring that your products or services have (11) ______________
environmental credentials.
Some of the biggest and most powerful companies in the world today are becoming almost as well
known for their high-profile corporate social responsibility initiatives as for their products and
services. Some are cynical about the motivations for this. (0)_____E_____. He maintains that
corporate social philanthropic activities have become ‘heavily promoted story tools that present a
deliberately over-inflated image of corporate citizenship’. What is more worrying still is that all this
activity has effectively served as smoke screen to hide a significant fall off in corporate charitable
contributions worldwide. (1) ______________ Business charitable deductions now only average about
0.7% of pre-tax earnings.
As ‘real’ contributions to charitable causes diminish, Hindery laments the fact that so many CEOs
have failed to understand the fact that an effectively managed contribution program can deliver strong
returns to a corporation. He maintains that if company donations are directed to nonprofit groups
closely aligned with the interests of the corporation's business objectives and the community context in
which it operates, they can become a powerful business tool. (2) ______________ Examples of this
kind of ‘strategic’ corporate philanthropy would include, for example, financial literacy programs
supported by financial institutions, or health and wellness programs funded by pharmaceutical
companies (3) ______________ Moreover, the kind of multiple-stakeholder participation such
initiatives require and generate can become a powerful social force and an agent for positive change.
(4) ______________ Contributions that are purely selfish in their intent, for example, that are
designed only to bolster the bottom line, or to support pet projects of senior managers or board
members, do not, again according to Hindery, ‘satisfy the requirements of good corporate citizenship.’
(5) ______________ In other words, when a business gets too ‘strategic’; in its giving, this will often
result in it cutting its overall contribution rather than, for example, deciding to focus on one or two
strategic causes.
Then there are those who would advocate the abolition of corporate philanthropy altogether.
(6) ______________ They would argue that because corporations are constantly pushing against the
limits imposed by society in pursuit of profits they will never make good citizens and should not be
treated as citizens. (7) ______________ Given the bottom-line driven world we live in, it seems
unlikely that the current state of corporate giving is unlikely to change any time soon.
A Without any additional promotional effort by the company concerned, such programs often
end up elevating awareness of the brand to the same degree as for the cause.
B There is also the danger that strategic philanthropy is actually at the root of the downward
trend in contributions to charity.
C Of course, for acts of corporate philanthropy to become solely about advancing the interests
of the company, would be a contradiction in terms
D They should not be regulated or boycotted into doing the right thing.
E Leo Hindery Jr, Chairman of the Smart Globalization Initiative at the New America
F Whereas 25 years ago, business allocated on average 2% of their pre-tax profits in gifts and
grants, today companies are only one third as generous.
G In such cases a donation, of for example, 1% of pretax earnings, begin, as Hindery says to
‘take on the look and feel of an investment, not a handout.’
H They include, for example, the acolytes of Friedman who continue to believe that a
company should only be responsible to its shareholders.
Task 1 (5 points)
Your company is updating its corporate responsibility programme and you have been
asked to write a proposal for how the company could improve its environmentally-
friendly operating policies.
Additional funding US $350 million Corporate welfare funding from the World Bank.
Time frame Construction to begin next spring – oil production possible within
36 months.
Task 1 (7 points)
(Recording 1.14)
You will hear a discussion about how McDonalds has been changing its corporate image.
For each question 1 – 6 choose a), b) or c) as the correct answer.
You will hear the recording twice.
1 Tim Lang believes that the McDonald’s new concern for the environment is:
a) greenwash.
b) temporary, they have no intention of sustaining it.
c) genuine, but they are going to find it challenging to sustain.
6 The consultancy team responsible for the re-branding of McDonalds in the UK:
a) is supported by Prince Charles.
b) was responsible for rebranding the Conservative party.
c) was created by Steve Hilton, the man responsible for PR for the Conservative party.
3 The Ronald McDonald houses and the Reebok Human Rights Awards are
................................................................................................ of CSR initiatives.
(3 words)
5 ..................................................................,.................................... such as
Tesco’s ‘computers for schools’ promotion, is a partnership between a
company and a charity.
(3 words)