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Q:
Firms that generally act only when forced to do so, and then in a defensive manner are:
A. Interactive companies.
B. Proactive companies.
C. Reactive companies.
D. Inactive companies.
Q:
Firms that believe they can make decisions unilaterally, without taking into consideration their impact on others are:
A. Interactive companies.
B. Proactive companies.
C. Reactive companies.
D. Inactive companies.
Q:
Overtime, the nature of businesss relationship with its stakeholders often:
A. Remains static.
B. Evolves through a series of stages.
C. Becomes more hostile.
D. None of the above.
Q:
A corporations issue management activities are usually linked to:
A. The board of directors.
B. Top management.
C. Both the board of directors and top management levels.
D. The strategic governance committee.
Q:
A leadership role in addressing emerging management issues in often taken by:
A. The public affairs department.
B. The government relations department.
C. The department of sustainability or environmental, health and safety.
D. All of the above.
Q:
Contemporary issue management:
A. Is a linear process.
B. Was useful in the 1970s, but not today.
C. Is used by all government agencies.
D. Is an interactive, forward thinking process.
Q:
When working well, the issue management process:
A. Is static and never pulls in additional information that would disturb the balance.
B. Generates two specific options for each issue.
C. Minimizes dialogue with the stakeholders and focuses on short-term survival.
D. Continuously cycles back to the beginning and repeats.
Q:
Once an organization has implemented the issue management program, it must:
A. Use trade associations or consultants to follow high priority issues.
B. Study the results and make necessary adjustments.
C. Not limit the number of public issues the firm can address.
D. Pick a selected number of issues to address immediately.
Q:
An issues public profile indicates to managers:
A. How significant an issue is for the organization, but it does not tell them what to do.
B. Both how significant an issue is for the organization and exactly what to do.
C. Exactly what to do without indicators of how significant an issue is for the organization.
D. Any of the above depending on the organization type.
Q:
Once an issue has been identified, its implications must be:
A. Acted upon.
B. Analyzed.
C. Segmented.
D. Deleted.
Q:
The components of a typical issues management process include:
A. Identify issue.
B. Generate options.
C. Take action.
D. All of the above.
Q:
The issue management process has how may stages?
A. Three.
B. Four.
C. Five.
D. Six.
Q:
The issues management process is a:
A. Beneficial tool used only to maximize the positive effects of a public issue for the organizations advantage.
B. Beneficial tool used only to minimize the negative effects of a public issue for the organizations advantage.
C. Systematic process companies use when responding to public issues that are of greatest importance to the business.
D. Confusing process that is rarely used to help top management within an organization.
Q:
Because of the risks and opportunities public issues present, organizations need:
A. A strong relationship with a lobbying firm or an in-house lobbying department.
B. Executives to be rewarded with substantial bonuses as part of total compensation.
C. A systematic way of identifying, monitoring, and selecting public issues.
D. Tougher government regulations and oversight by political action committees.
Q:
The role of special interest groups is an important element in acquiring intelligence from the:
A. Customer environment.
B. Competitor environment.
C. Economic environment.
D. Social environment.
Q:
Legal environmental intelligence includes: A. Patterns of aggressive growth versus static maintenance. B. Analysis of local, state, national, and international politics. C. Considerations of patents, copyrights, or trademarks. D. Information regarding costs, prices, and international trade.
Q:
An analysis of the stability or instability of a government is an example of scanning the:
A. Social environment.
B. Legal environment.
C. Geophysical environment.
D. Political environment.
Q:
The graying of the population is an example of:
A. Customer environment.
B. Competitor environment.
C. Economic environment.
D. Social environment.
Q:
Customer environmental intelligence includes:
A. Demographic factors.
B. An analysis of the firms competitors.
C. New technological applications.
D. The cost of producing consumer goods.
Q:
According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on:
A. Eight strategic radar screens.
B. Six management templates.
C. Eight process improvement models.
D. Six ethical decision indicators.
Q:
Issue ripeness refers to:
A. The number stakeholders involved in the public issue.
B. When societys expectations are high and the issue is highly relevant to business.
C. How long the issue has been a problem for business, the longer the more ripe.
D. The importance given to the issue by the media and how much coverage it receives.
Q:
Failure to understand the beliefs and expectations of stakeholders:
A. Causes a companys profits to increase in the short run.
B. Causes a companys profits to decrease in the short run.
C. Causes the performance-expectations gap to grow larger.
D. Increases the chance of a corporate buy-out.
Q:
The emergence of a public issue indicates that:
A. A gap has developed between what stakeholders expect and what an organization is actually doing.
B. Technology is forcing ethics and business strategy closer together.
C. Consumers are unaware of how an organizations actions affect them.
D. All of the above.
Q:
Public issues are also sometimes referred to as:
A. Social issues.
B. Sociopolitical issues.
C. Both A and B.
D. None of the above.
Q:
Companies are learning that it is important to take a strategic approach to the management of public issues, both domestically and globally.
Q:
Dialogue between a single firm and its stakeholders is always sufficient to address an issue effectively.
Q:
For stakeholder engagement to occur, both the business and the stakeholder must be motivated to work with one another to solve the problem.
Q:
Financially sound companies do not need to understand how a public issue is likely to evolve, or how it will affect them.
Q:
In the issue management process, identifying the issue involves anticipating emerging issues.
Q:
Competitive intelligence enables managers in companies of all sizes to make informed decisions in all areas of the business.
Q:
Legal environment includes the structure, processes, and actions of government at the local, state, national, and international levels.
Q:
According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on four strategic radar screens.
Q:
Environmental intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations.
Q:
Environmental analysis is a method managers use to gather information about external issues and trends.
Q:
Organizations always have full control of a public issue.
Q:
Because the public issues that garner the most public attention change over time, companies do not waste time tracking them.
Q:
Understanding and responding to changing societal expectations is a business necessity.
Q:
Emerging public issues are both a risk and an opportunity.
Q:
A public issue exists when there is agreement between the stakeholders expectations of what a business firm should do and the actual performance of that business firm.
Q:
Describe and give examples of the external forces that shape the relationship between business and society.
Q:
What is a stakeholder map? Why is it a useful tool?
Q:
Explain the process called stakeholder analysis. Include a description of its four key questions.
Q:
Discuss why a manager should, or should not, be considered a stakeholder.
Q:
Compare and contrast the relationships a firm may have with market and non-market stakeholders.
Q:
Supporters of the stakeholder theory of the firm make three core arguments for their position. Define and provide examples of each.
Q:
Describe how general systems theory can be applied to a business.
Q:
Interactions between business and society occur:
A. Within a finite natural ecosystem.
B. Only during an environmental crisis.
C. When business employees and the community are of similar cultural backgrounds.
D. When legislation is passed requiring interaction.
Q:
Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:
A. Inter-departmental divisions.
B. Geographical location areas.
C. Boundary-spanning departments.
D. Organizational maps.
Q:
A stakeholder map is a useful tool because:
A. It enables mangers to see quickly how stakeholders feel about an issue.
B. It allows managers to evaluate what outcomes are likely regarding an issue.
C. It helps managers discourage or dissolve stakeholder coalitions.
D. Both A and B, but not C.
Q:
Stakeholders stand out to managers when they exhibit:
A. Integrity, power, and legitimacy.
B. Power, legitimacy, and urgency.
C. Integrity, loyalty, and power.
D. Legitimacy, loyalty, and urgency.
Q:
When something stands out from a background, is seen as important, or draws attention it is:
A. Urgent.
B. Salient.
C. Powerful.
D. Legitimate.
Q:
Stakeholders have been able to form international coalitions more successfully through use of:
A. Government regulation.
B. Community involvement.
C. Communications technology.
D. Unions.
Q:
With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:
A. Economic power.
B. Political power.
C. Informational power.
D. Legal power.
Q:
What kind of power might a local community use to influence a companys decisions?
A. Publicizing an issue.
B. Lobbying government policy makers for regulations.
C. Challenging whether a business activity should continue to operate.
D. All of the above.
Q:
What stakeholder group(s) can exercise legal power?
A. Employees.
B. Customers.
C. Shareholders.
D. All of the above.
Q:
When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholders:
A. Legal power.
B. Voting power.
C. Economic power.
D. Political power.
Q:
Which of the following is not an example of stakeholders economic power?
A. A toy manufacturer halts supplies to a customer that demanded very low prices.
B. A social group protests a governments decision to raise taxes.
C. A local community boycotts a grocery store suspected of inaccurate weight scales.
D. An equal rights group refuses to do business with a business that has a discriminatory hiring policy.
Q:
Customers can exercise economic stakeholder power by:
A. Voting on a proposed merger for the company and a competitor.
B. Boycotting products if they believe the goods are too expensive.
C. Attending the companys annual meeting.
D. Applying for a job with the company.
Q:
Which of the following statements is (are) correct about stakeholders power?
A. Different stakeholders have different types and degrees of power.
B. Stockholders voting power is limited to the percentage of stock owned by the stockholder.
C. It uses resources to achieve a desired decision or outcome.
D. All of the above.
Q:
The five types of stakeholders power recognized by most experts are:
A. Voting, economic, political, legal, and informational power.
B. Social, legal, environmental, economic, and political power.
C. Social, regulatory, voting, governance, and media power.
D. Economic, media, legal, stockholder, and political power.
Q:
A stakeholder analysis:
A. Creates equality among all stakeholder interests.
B. Allows managers to examine two primary questions.
C. Involves understanding the nature of stakeholder interests.
D. All of the above.
Q:
The phenomenon of a person or group holding multiple stakeholder duties is referred to as:
A. Role sets.
B. Primary Stakeholder(s).
C. Ownership Theory.
D. None of the above.
Q:
All of the following are external stakeholders of the firm except:
A. Managers.
B. Customers.
C. Stockholders.
D. Suppliers.
Q:
Which of the following is not considered to be a nonmarket stakeholder?
A. Government agencies.
B. Creditors.
C. Activist groups.
D. Non-governmental organizations.
Q:
Which one of the following is considered to be a nonmarket stakeholder of business?
A. Customers.
B. Media.
C. Creditors.
D. Stockholders.
Q:
Stakeholder groups can include:
A. Stockholders.
B. The media.
C. Environmental activists.
D. All of the above.
Q:
A number of European countries require public companies to include employee members on their boards of directors, so:
A. The employees are available to answer questions.
B. Management does not have to attend the meetings.
C. That their interests will be explicitly represented.
D. They have more power than any other stakeholder.
Q:
The fiduciary duty of managers benefits a firms:
A. Stockholders.
B. Customers.
C. Employees.
D. All of the above.
Q:
The instrumental argument says stakeholder management is:
A. A more realistic description of how companies really work.
B. More effective as a corporate strategy.
C. Simply the right thing to do.
D. Determined by the amount of stock owned in the firm.
Q:
Which argument says that stakeholder management realistically depicts how companies really work?
A. Descriptive argument.
B. Instrumental argument.
C. Normative argument.
D. Fiduciary argument.
Q:
Corporations that run their operations according to the stakeholder theory of the firm create value by:
A. Innovating new products.
B. Increasing their stock price.
C. Developing their employees professional skills.
D. All of the above.
Q:
A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:
A. Shareholders.
B. Customers.
C. Board of Directors.
D. Community.
Q:
Which of the following statements is not true about the interactive social system?
A. Business and society need, as well as influence, each other.
B. The boundary between business and society is clear and distinct.
C. Business is a part of society, and society penetrates far and often into the business.
D. Business and society are both separate and connected.
Q:
Which of the following is the result of an inseparable relationship between business and society?
A. All business decisions have a social impact.
B. The vitality of business depends on societys actions and attitudes.
C. The survival of business is independent of society.
D. Both A and B, but not C.
Q:
Which of the following examples best illustrates the boundary exchanges a company would encounter according to the general systems theory?
A. An industrial company installs new equipment in its plant to comply with environmental regulations.
B. A software company develops an application for a client.
C. A purchasing department employee negotiates a price on parts from a supplier.
D. All of the above.
Q:
Which statement is not correct about the business-society interdependence?
A. Business is a part of society.
B. Business is is separated from the rest of society by clear boundaries.
C. Business activities impact other activities in society.
D. Actions by governments rarely significantly affect business.
Q:
The external environment of business is static.
Q:
A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders feel about an issue and whether salient stakeholders tend to be in favor or opposed.
Q:
Urgency refers to the extent to which a stakeholders actions are seen as proper or appropriate by the broader society.
Q:
Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience.