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Q:
The primary element in the concept of the stakeholder corporation is that stakeholders should be granted ownership positions in the firm relative to their power over the firm.
a. True
b. False
Q:
The term "defective" is open to interpretation in court.
(A) True
(B) False
Q:
The transactional level of stakeholder management capability requires companies to compete on the basis of their financial strength and tangible assets.
a. True
b. False
Q:
A warranty is a contract in which the seller guarantees that a customer will like the product.
(A) True
(B) False
Q:
A major criticism of the stakeholder management approach is that it is extremely complex and time consuming.
a. True
b. False
Q:
Product liability is the firm's legal responsibility for its actions and products, especially costs or damages.
(A) True
(B) False
Q:
The primary strategy for a manager relative to a marginal stakeholder is to monitor that group.
a. True
b. False
Q:
Consumer rights essentially came from President Richard Nixon.
(A) True
(B) False
Q:
In the typology of organizational stakeholders shown in Figure 3-8, a stakeholder that holds both high potential for cooperation with and threat to the firm is seen as a mixed blessing.
a. True
b. False
Q:
The right to accurate information is based on the temptation of business to promote its products in the best light possible in order to sell more products.
(A) True
(B) False
Q:
Because stakeholder challenges usually contain a risk of damage to the firm, they are given more attention than stakeholder opportunities in the textbook.
a. True
b. False
Q:
Businesses must be members of the Better Business Bureau.
(A) True
(B) False
Q:
To get a corporation to respond to its demands a stakeholder must hold all three attributes of power, legitimacy, and urgency.
a. True
b. False
Q:
The goal of the consumer movement is to counterbalance the power of business.
(A) True
(B) False
Q:
Before managers in the firm can identify what stakes are held, they must first identify who the stakeholders are.
a. True
b. False
Q:
Companies rarely give away money to charitable organizations.
(A) True
(B) False
Q:
Once stakeholders have been identified, the firm can safely assume that they will remain the same for several years.
a. True
b. False
Q:
The role of the community relations department is to interact with community citizens and the news media, to develop community involvement programs, and to work with local governments.
(A) True
(B) False
Q:
The use of generic groups to answer the question "Who are our stakeholders?" is generally sufficient for businesses.
a. True
b. False
Q:
The Worker Adjustment and Retraining Notification Act (WARN) protects communities by requiring employers to provide notification 10 calendar days in advance of plant closings and mass layoffs.
(A) True
(B) False
Q:
One of the reasons that the stakeholder model is becoming more popular is because the stakeholder environment is finally calming down after several decades of turbulence.
a. True
b. False
Q:
Having a good corporate reputation for being socially responsible usually does not help with community relations.
(A) True
(B) False
Q:
The stakeholder model has normative value because it emphasizes how stakeholders should be treated.
a. True
b. False
Q:
How many advocacy groups are concerned with consumer issues?
(A) Only three
(B) 15-20
(C) Several dozen
(D) 100
(E) Several hundred
Q:
The assumption underlying the instrumental value of the stakeholder model is that effective stakeholder management should lead to achievement of traditional business goals such as profits and growth.
a. True
b. False
Q:
Which of the following is not a consumer right?
(A) The right to safety protects consumers against products that are hazardous to their health and life.
(B) The right to be informed protects consumers against the marketing of products through fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices.
(C) The right to satisfaction assures consumers they will be satisfied with products they choose.
(D) The right to be heard assures that consumer interests will receive full and sympathetic consideration in the formulation of government policies, laws, and regulation.
(E) The right to privacy protects consumers from misuse of personal information.
Q:
The descriptive value of the stakeholder model is based in its ability to identify and describe particular stakeholders for the firm.
a. True
b. False
Q:
The right to _______ gives consumers the assurance that a variety of products at competitive prices will be available whenever possible.
(A) choose
(B) have information
(C) be heard
(D) privacy
(E) safety
Q:
A major distinction between the managerial view of the firm and the stakeholder view is the recognition that groups who think they have a stake in the firm are properly included as stakeholders, whether managers of the firm agree with them or not.
a. True
b. False
Q:
Which of the following are roles for the media?
(A) Business groups never complain about the media because they know that it is always fair and unbiased.
(B) The media provide information for those in the market and nonmarket environment so that people know what is going on in the world, primarily so that business, society and government can make better decisions.
(C) Factual stories report on why the story is important and what implications it has on society.
(D) The media shape individual attitudes and values about issues that result in public sentiment.
(E) The media are used to develop nonmarket issue agendas so that business, society and government can determine which issues they will pursue.
Q:
The stakeholder view of the firm is now universally accepted.
a. True
b. False
Q:
Which of the following are criteria in making stories newsworthy?
(A) They are of interest to the audience and have social significance.
(B) They are about the negative side of people.
(C) They are about immediate or urgent issues.
(D) They include controversy or conflict.
(E) They are easily told.
Q:
Some authors now argue that stakeholder inclusion is the key to corporate success.
a. True
b. False
Q:
Which statements about warranties are correct?
(A) An express warranty is an explicit claim made by the producer to the consumer.
(B) An implicit warranty is an unwritten guarantee that the product is adequate to meet reasonable expectations for intended purposes.
(C) A full warranty must express unconditional assurance that the product will be replaced or repaired within a reasonable time and without charge.
(D) A limited warranty conditionally excludes certain parts of the product or particular types of defects from coverage.
(E) An extended warranty is the same as an express warranty.
Q:
The corporation is currently viewed as having a specialized purpose of providing a profit through the provision of goods and services.
a. True
b. False
Q:
The primary factor behind the transition from a relatively simple business model to the highly complex state we now have is public recognition that the business organization is no longer the sole property or interest of its owners.
a. True
b. False
Q:
Which statements are correct regarding customers and consumers?
(A) Consumers do not use business products.
(B) Customers of manufacturers of products are commonly retail stores.
(C) People who buy gifts are consumers, and the recipients are customers.
(D) If you use Facebook, you are a customer, not a consumer.
(E) Customers and consumers can be the same.
Q:
Which of the following are community involvement programs?
(A) Volunteer programs encourage and reward employees for doing work for community nonprofit organizations, sometimes during paid work hours.
(B) Investment programs allow nonprofits to buy stock in companies at a discount rate but pay regular dividends.
(C) Philanthropic programs give resources of products and services and finances of cash to the community.
(D) CEOs contributing in stock option plans.
(E) Collaborative partnership programs are voluntary relationships among business, social interest groups, and/or government to solve a social problem.
Q:
This chapter of the textbook has made a strong case for the use of stakeholder management. Discuss reasons why firms may choose not to utilize this model.
Q:
Which of the following are elements of the business-community relationship?
(A) Community power
(B) Eminent domain
(C) Layoffs and plant closings
(D) Corporate social responsibility
(E) International treaties
Q:
Stakeholder management, with its normative content, holds out the promise of positive outcomes to the firms that use it. Discuss some of these expected outcomes and evaluate their likelihood of occurrence and their importance to the firm.
Q:
Which of the following is not one of the guidelines when dealing with the media issues?
(A) Reality
(B) Truth
(C) Audience
(D) Cover-up
(E) Summary points
Q:
Stakeholder management does not specify how managers should view the function of stakeholders. Some view stakeholders as just additional groups to be managed for the benefit of the firm and its owners. Others view stakeholders as groups to whom the firm has certain responsibilities that are equally important to duties owed to owners. Discuss this issue and defend your stance.
Q:
___________ is the process of a consumer filing a lawsuit against a firm seeking compensation for harm resulting from defective products or business actions.
(A) Consumer information
(B) Product liability litigation
(C) Defense for the current system
(D) Company negligence
(E) Absolute liability
Q:
The textbook provides an example of stakeholder attributes when it discusses the case of Home Depot, old growth wood, and environmental activists. Discuss this case in terms of the environmental group's legitimacy, power, and urgency.
Q:
Which statement best describes the product liability litigation process and the parties involved?
(A) Product liability litigation is the process of a business (offendant) filing a lawsuit against a firm (defendant) to be compensated for harm resulting from defective products.
(B) Product liability litigation is the process of a consumer (offendant) filing a lawsuit against a firm (defendant) to be compensated for harm resulting from defective products.
(C) Product liability litigation is the process of a consumer (plaintiff) filing a lawsuit against a firm (defendant) to be compensated for harm resulting from defective products or business actions.
(D) Product liability litigation is the process of a consumer (plaintiff) filing a lawsuit against a firm (defendant) to be compensated for harm resulting from defective products but not from business actions.
(E) Product liability litigation is the process of a consumer (plaintiff) filing a lawsuit against a firm (defendant) through the federal court system to be compensated for harm resulting from defective products.
Q:
Are the natural environment and nonhuman species properly considered stakeholders of the firm? Defend your answer.
Q:
A ________ is a contract in which the seller guarantees the integrity of the product, and the buyer is entitled to compensation for any consequent harm.
(A) product
(B) collaboration
(C) consumer right
(D) liability
(E) warranty
Q:
Discuss how PETA is making itself a stakeholder in the wool industry.
Q:
Summarize the principles of stakeholder management.
Q:
Which statement about regulatory agencies is not correct?
(A) The Consumer Product Safety Commission (CPSC) regulates protecting the public against unreasonable risks of injury associated with consumer products, through setting and enforcing safety standards.
(B) The Federal Trade Commission (FTC) regulates unfair or deceptive acts or practices of business.
(C) The Food and Drug Administration (FDA) regulates the safety of foods, drugs, cosmetics, and medical devices.
(D) The National Highway Traffic Safety Administration (NHTSA) regulates how roads must be built to meet national standards to minimize the number of accidents.
(E) The Securities and Exchange Commission (SEC) regulates the protection of investors; maintains fair, orderly, and efficient markets; and facilitates capital formation.
Q:
Describe the levels of stakeholder management capability.
Q:
Communities do have power over business with local laws and regulations that are heavily influenced and developed by community members who try to balance the power between community consumers and producers.
(A) True
(B) False
Q:
Explain what the concept of tapping the expertise of stakeholders means.
Q:
Describe utilitarian (or cost-benefit analysis) as it relates to ethics.
Q:
The diagnostic typology of organizational stakeholders categorizes stakeholders by their perceived level of cooperation and/or threat. Explain how this typology works and evaluate its usefulness.
Q:
_________ contend that morals can change based on time, the circumstances of the situation, and personal opinion.
(A) Relativism ethics
(B) Global ethics
(C) Universal ethics
(D) Executive ethics
(E) Utilitarian ethics
Q:
Compare and contrast the strategic, multifiduciary, and synthesis approaches of stakeholder management.
Q:
________ is the moral standard of right and wrong, and fairness that influences behavior.
(A) Conscience
(B) Generalization
(C) Ethics
(D) Law
(E) Custom
Q:
Stakeholders present both opportunities and challenges to the firm. Why does the textbook choose to focus only on the challenges?
Q:
Which statement best describes how the 5 Is strategic analysis includes the stakeholder approach and ethics?
(A) When making decisions on how to deal with issues, interested stakeholders and their incentives are identified by ethical managers.
(B) Alternative strategies are generated and evaluated by ethical managers.
(C) Each alternative is assessed for the consequences to strategic stakeholders using a cost vs. benefit analysis in both the market and nonmarket environment.
(D) Each alternative strategy must pass the test of being legal and ethical to be selected and implemented.
(E) These would all be good descriptions.
Q:
A major factor in support of stakeholder management is stakeholder culture. Explain how various cultures impact stakeholder management.
Q:
Which of the following is not true regarding managerial ethics?
(A) Most professional associations in the functional areas of business have codes of ethics.
(B) Most large corporations have developed written codes of ethics.
(C) In codes of conduct, some companies have developed warning signs of unethical behavior.
(D) Managing ethics provides a form of self-regulation that can lead to less government regulation.
(E) Managers usually ignore codes of conduct and ethics policies.
Q:
_________ means standards of human decency govern right and wrong behavior.
(A) Deontology
(B) Numerology
(C) Ethical deployment
(D) Generalization
(E) Teleology
Q:
Considering the textbook example of Switzerland scientists, and looking at the examples of primary and secondary social and nonsocial stakeholder, distinguish between social and nonsocial stakeholders. Does your definition of the difference seem useful to you? Why or why not?
Q:
Who are the stakeholders of the college or university where you are taking this class? Provide a list and discuss their relative importance to the school.
Q:
To guide employee decision making and behavior, today few professional associations in the functional areas of business have codes of ethics.
(A) True
(B) False
Q:
Describe the origin of stake and stakeholder.
Q:
To pass the utilitarian test, a specific action will lead to more favorable consequences than any alternative decision.
(A) True
(B) False
Q:
To pass the virtues test, the behavior must be honest, be based on good character traits, and maintain one's integrity and relationships.
(A) True
(B) False
Q:
Which of the following is not a strategic step toward successful stakeholder management?
a. integrating stakeholder management into the firm's governing philosophy
b. setting goals for stakeholder inclusion
c. creating a stakeholder-inclusive values statement
d. implementing a stakeholder performance measurement system
Q:
Stakeholders rarely have conflicting interests.
(A) True
(B) False
Q:
Which of the following is not a strategy or action alternative in best addressing stakeholders?
a. Deal directly or indirectly
b. Take offense or defense
c. Collaborate or participate
d. Manipulate or resist
Q:
Most of the time, a combination of ethical guides must be used to achieve complex ethical outcomes.
(A) True
(B) False
Q:
Recognition that all stakeholders depend on each other for their success and financial well-being is a concept known as
a. stakeholder synthesis.
b. interdependency.
c. mutual benefit analysis.
d. stakeholder symbiosis.
Q:
If pondering an ethical question, you said something like, "Would my parents be proud of me if they knew I did this?" would be considered common sense.
(A) True
(B) False
Q:
Stakeholder management capability is thought of in three levels. Which is considered the highest level?
a. the rational level
b. the process level
c. the intangible level
d. the transactional level
Q:
You should consider rights of a person, group, or organization is another guide to making ethical decisions.
(A) True
(B) False
Q:
Which of the following is not a valid criticism of stakeholder management?
a. It is very time consuming.
b. Ranking of stakeholder claims is very difficult.
c. Managers are not trained in this type of management.
d. It increases the complexity of decision-making.
Q:
Situational characteristics affect the degree to which we are willing to be influenced by others' unethical behavior
(A) True
(B) False