Deck 3: Identifying Stakeholders and Issues

Question 1

In terms of categorizing stakeholders,primary interaction occurs with all of the following,except:

A)Owners
B)Media
C)Suppliers
D)Creditors
E)Unions

Answer 1

B

Question 2

A manager is a unique stakeholder because:

A)They cannot be a shareholder
B)They can be a manager and shareholder
C)They deal directly with multiple other stakeholders
D)They can affect the organization
E)They are affected by the organization

Answer 2

C

Question 3

Janet is on the board of directors for SPT Corporation.Which of the following assumptions about Janet's involvement with SPT Corporation is incorrect?

A)Janet is not a shareholder of SPT Corporation.
B)In her role as a board member,Janet is responsible for the functioning of SPT Corporation.
C)Janet is a competitor of SPT Corporation.
D)Janet was elected by the shareholders to this role.
E)Janet's position on the board is not permanent.

Answer 3

C

Question 4

Frank thinks that it is inappropriate for his company,BSD Corporation,to spend valuable company time and resources on meeting with stakeholder groups.He,and others who oppose stakeholder involvement,identify the following rationale(s):

A)Managing so many stakeholders diverts management's attention away from the business.
B)Corporations are not designed to benefit shareholders.
C)Responding to stakeholders' interest does not produce loyalty.
D)There is an agreement on priorities.
E)It is necessary for business success.

Question 5

Cathy drinks a lot of coffee to help her stay awake during midterms.However will only purchase coffee that is produced under conditions that guarantee good working conditions for the labourers and respect for human rights and environmental protection.Cathy is a consumer of:

A)Fairtrade products
B)Product Red brand
C)Green products
D)Whole Foods Market
E)Boycotted products

Question 6

There is opposition to the stakeholder concept for all of the following reasons,except:

A)Each of them have different expectations
B)Stakeholders often have contrary objectives
C)Practicality of shared governance
D)They are difficult to categorize
E)Dilution of top management focus

Question 7

Normative stakeholders include all of the following,except:

A)competitors
B)financers
C)employees
D)consumers
E)suppliers

Question 8

All of the following are main issues in the banking industry,except:

A)government regulation
B)issues management
C)service charges
D)credit card charges
E)executive compensation

Question 9

Government in Canada is very influential over corporate decision-making.ABC Corporation is negotiating with aboriginal groups regarding forestry practices in their region and the government is facilitating the process.Influence and power,in this case,is not held by any one institution and is dispersed.This example reflects the operation of a

A)collective
B)stakeholder
C)pluralist
D)multicultural
E)business-oriented

Question 10

Examples of primary stakeholders include all of the following,except:

A)Customers
B)Communities
C)Unions
D)Competitors
E)Creditors

Question 11

The government of Canada recently sold off its remaining shares in Petro Canada.The government,in performing this transaction,is acting as which type of stakeholder?

A)Director
B)Government
C)Owner
D)Supplier
E)Consumer

Question 12

Advocates of the stakeholder concept:

A)argue that an appreciation for stakeholders is fundamental to understanding how to make money.
B)feel it is necessary to not only recognize the interests of all stakeholders but also to promote the loyalty of other individuals and groups.
C)believe that shareholders are a principal stakeholder.
D)believe that responding to stakeholders is simply good business.
E)All of the above are true statements advocating the stakeholder concept.

Question 13

Which of the following statements regarding employees as stakeholders is incorrect?

A)Managers are considered employees.
B)Employees are individuals who work for the corporation.
C)Part-time employment is becoming a more common strategy to hiring employees.
D)All primary stakeholders can be considered employees.
E)Employees are considered one of the more obvious and,perhaps,most important stakeholders.

Question 14

Derivative stakeholders are all of the following,except:

A)are typically financers
B)are those to whom the organization has no obligation
C)are those from whom the corporation has not accepted benefits
D)have power over the corporation
E)may exert harmful influences

Question 15

In determining where to locate a factory,BCS Corporation develops a list of stakeholders.Francois encourages the management to locate in a community with high unemployment because it will help a community become more economically stable.
Mark states that it is important to consider whether the company will be able to arrange for raw materials to be shipped to the factory for production.Sarah notes that by
Relocating the firm should consider the environmental group,STOP,that used to picket
The company,even though it hasn't been heard from for years.Which stakeholders should the company not necessarily consider in their decision?

A)Government
B)The environmental group,STOP
C)Suppliers
D)Media
E)Community in which they may locate

Question 16

Secondary interactions include all of the following,except:

A)government
B)business support groups
C)the general public
D)investors
E)local communities

Question 17

Following a media report highlighting a lack of hygienic meat handling practices by its suppliers,Burgers R Us realized they should have been engaged in ,a process to respond to the economic,social,and environmental problems that they might face in the future.

A)stakeholder management
B)issues management
C)environmental management
D)strategy
E)media control

Question 18

Samuel has been asked by the manager of his department to compile a list of all the stakeholders relevant to the industry so that they can ensure that in the future all stakeholder interests are appropriately considered.Samuel spends the entire weekend on the task,but it looks like he will never finish the task.Which of the following is not a reason why Samuel is having difficulty?

A)New stakeholders emerge all the time.
B)He is not on the best position to do the task.
C)Their involvement varies between corporations.
D)Stakeholders influence shifts over time.
E)You cannot list all the stakeholders.

Question 19

A news report came out in Saskatchewan that the beef supplier for "Burgers R Us" was not implementing hygienic practices.All of the following stakeholders are likely to have discussed a change of approach to purchasing meat with "Burgers R Us",except:

A)The Customers and the General Public
B)The Current Supplier
C)The Government
D)The Owners,Lenders,and Creditors
E)The Media

Question 20

ABC Corporation is a forestry company that is attempting to develop more sustainable approaches to forestry in order to preserve the land for use by future generations.They receive considerable support from mainstream environmental groups.Eco-terrorists,who will sabotage trees in such a way as to injure the forestry worker who is cutting the tree, do not believe that ABC Corporation is doing enough.Which of the following stakeholders should ABC consider in its decisions about forestry?

A)Eco-terrorism environmental groups
B)Mainstream environmental groups
C)Media
D)Employees
E)All stakeholders should potentially be considered.

Question 21

Although customers are the source of revenue and should be treated carefully,corporations that are a monopoly do not need to focus on this stakeholder.

Question 22

Corporations must understand how their activities influence stakeholders but not how stakeholders can influence their activities.

Question 23

Every board of directors plays a substantial role in the organization and is considered insiders.

Question 24

Owners always have a lot of influence over an organization.

Question 25

Sable is excited about her new job.As marketing manager for NMO Corporation,she is hoping to help the company adopt more environmentally friendly packaging.She brings up the issue with the management team,who state that they had never given the issue much thought.NMO Corporation is at what stage in the issue life cycle?

A)Increasing
B)Prominent
C)None or little
D)Declining
E)Peak

Question 26

An alternative to the Anatomy of a Crisis,called the Six Stages of Crisis Management, was developed by:

A)Steven Fink
B)Johnathan Berstein
C)Adam Augustine
D)Adam Smith
E)Norman Augustine

Question 27

The four stages proposed in the Anatomy of a Crisis include:

A)Prodromal,resolved,crisis,and peak
B)Pre-crisis,mid-crisis,post-crisis,and peak-crisis
C)Prodromal,acute,chronic,and resolution
D)Pre-acute,acute,pre-chronic,and chronic
E)Prodromal,peak,acute,and continuous

Question 28

The benefits of issues management include all of the following,except:

A)Corporation's credibility is enhanced
B)Corporate behaviour is more consistent with societal expectations
C)Corporation's vulnerability is decreased
D)Enables corporations to identify issues earlier
E)Reduces the firm's competitive advantage

Question 29

In which stage of the Anatomy of a Crisis does the corporation receive some warning,however subtle,that a crisis is lurking?

A)Resolution
B)Peak
C)Prodromal
D)Chronic
E)Pre-chronic

Question 30

A stakeholder is an individual,or group,who can influence and/or is influenced by the achievement of an organization's purpose.

Question 31

It is the responsibility of the stakeholders to identify themselves to the organization.The organization does not need to identify stakeholders.

Question 32

The purposes of issues management include all of the following,except:

A)It provides a mechanism for coordination.
B)It can prepare managers for most issues that can arise.
C)It serves as an early warning system.
D)It provides a framework for assessment.
E)It is more systematic in dealing with concerns.

Question 33

In a pluralistic society,business enterprises are completely dependent on government.

Question 34

A furniture store has just discovered that the lumber used to make its furniture was extracted from an ancient forest.Later that week they received a letter from an environmental group stating that all furniture stores using lumber from ancient forests are receiving this letter as a warning to find alternate sources for their lumber or the store will be picketed.This furniture store is in what stage of the issue life cycle?

A)Awareness
B)Peak
C)Prominent
D)Growth
E)Increasing

Question 35

Jack recently purchased a small furniture store that specializes in handmade,high quality products.The company,when he purchased it,relied almost exclusively on wood from old growth forests.He temporarily closes the business until a supplier of sustainable wood products can be found.The company is at what stage of the issue life cycle?

A)Increasing
B)Peak
C)Awareness
D)Prominent
E)Growth

Question 36

The issue life cycle outlines the stages through which an issue progresses.Those stages are:

A)Awareness,growth,prominent,threatening,and decline
B)Introduction,growth,maturity,decline,and resolution
C)Introduction,growth,maturity,and decline
D)None or little,awareness,increasing,prominent,peak,and declining
E)None or little,increasing,prominent,peak,and declining

Question 37

Employees are often considered the most obvious and,sometimes,the most important stakeholder.

Question 38

The role of the board of directors is to determine the corporation's strategic direction,monitor and review performance,and hire and fire the top executives.

Question 39

Organizations must identify their stakeholders to obtain their resources and maintain their legitimacy.

Question 40

Who is the author of Anatomy of a Crisis?

A)Johnathan Berstein
B)Adam Smith
C)Adam Augustine
D)Steven Fink
E)Norman Augustine

Question 41

Management consultants are not stakeholders because they are not employees of the company.

Question 42

Service,fraternal,cultural,and ethnic associations can provide business contacts through volunteerism.

Question 43

Derivative stakeholders are those from whom the corporation has not accepted benefits,but they hold power over the corporation and may exert either a beneficial or harmful influence.

Question 44

Issues management refers not to social change,but to a process by which the organization responds to economic,social,and environmental issues.

Question 45

Competitors include organizations that produce substitute products and therefore should be monitored.

Question 46

Government may play several roles as a stakeholder,such as media and lender.

Question 47

The board of directors determines the corporation's social responsibility initiatives.

Question 48

Categorizing stakeholders into various groups,such as internal and external,is desirable because it helps managers strategize accommodations.

Question 49

Lenders and Creditors are stakeholders that can be taken for granted because their influence is small as there are many lending institutions.

Question 50

An issue is a point in question where different views are held of what ought to be done by the corporation,based on stakeholder or management expectations.

Question 51

The "social market" lacks a clear corporate purpose necessary to meet corporate objectives.

Question 52

Opponents to the stakeholder concept argue,in part,that considering broader social issues is not the mandate of a business in the capitalist system.

Question 53

The concept of a stakeholder has broadened in time to include individuals or groups other than owners,government and labour.

Question 54

Non-Governmental Organizations (NGOs)are those organizations,such as charities,run by the volunteer sector.

Question 55

Joint-venture participants are partners cooperating in a particular enterprise.

Question 56

Different stakeholders have different sources and expressions of power.When one
stakeholder becomes too powerful,another stakeholder may act to counterbalance and restrict this power.

Question 57

There is question that animals should be considered as a stakeholder.

Question 58

When an organization is able to obtain a particular material from several suppliers they are not dependent on that supplier.

Question 59

It is the responsibility of the board of directors,not the manager,to determine how to respond to stakeholders' power and pressures.

Question 60

There is a tremendous amount of opposition to the stakeholder concept.

Question 61

Managers are responsible for carefully identifying and analyzing the stakeholders influencing the organization.What are some things a manager can do to ensure they respond appropriately?

Question 62

One of the main issues in the banking industry today is executive compensation.

Question 63

In order for the successful implementation of issues management there must be support from top management and broad participation at the staff levels.

Question 64

Norman Augustine formulated an alternative to Fink's anatomy using only three stages: avoidance,preparation,and resolution.

Question 65

An example of a crisis for management can be seen in the situation of XL Foods,
operating in Brooks,Alberta,when it was discovered that E.coli was present in beef,but the plant was allowed to continue to operate for about ten days after that discovery.

Question 66

One of the main issues in the pharmaceutical industry today is unionization.

Question 67

In Fink's Anatomy of a Crisis,the acute crisis stage is the point at which the situation resolves itself.

Question 68

One of the issues which resulted from the E.coli crisis at XL Foods was that the cattle industry was concerned about their future as consumers may purchase less beef,and that there may be damage to international markets.

Question 69

Early identification of an emerging issue that deals with conflicting value and interest is important.

Question 70

In Fink's Anatomy of a Crisis it is argued that the outcome is not necessarily always negative,and that positive outcomes may result from a crisis.

Question 71

The issues management process,while helpful,does not ensure that the most salient or critical issues are addressed.

Question 72

Identifying issues can be done in many ways,for example,environmental scanning,social forecasting and public issues scanning.

Question 73

List the main ethical issues in the automotive industry.

Question 74

Outline the benefits to practicing issues management.

Question 75

One of the main issues pertaining to the automotive industry in Canada is green manufacturing.

Question 76

What are the main arguments from those who oppose the stakeholder concept?

Question 77

What are the arguments for and against the recognition of the environment as a stakeholder?

Question 78

Once an issue has progressed through the issue life cycle to the decline stage,it is considered to be resolved.

Question 79

Ideally,the issues management approach should be implemented quickly with a forceful,concentrated effort by senior level management leading the way.

Question 80

Outline Mintzberg's categorization of stakeholders.What is a shortcoming of this approach?