Deck 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance

Question 1

Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?

A)Environmental groups
B)Suppliers
C)Employees
D)Industry leaders
E)Investors

Answer 1

A

Question 2

Some economists believe that if companies address economic and legal issues,they are satisfying the demands of society,and that trying to anticipate and meet additional needs would be almost impossible.Which economist's theory are they following most closely with this belief?

A)Adam Smith.
B)Archie Carroll.
C)Jack Ma.
D)Noel Biderman.
E)Milton Friedman.

Answer 2

E

Question 3

Shareholders provide resources to an organization that are critical to long term success.Which of the following does the book suggest that suppliers offer?

A)The promise of customer loyalty
B)Material resources and/or intangible knowledge
C)Infrastructure
D)Revenue
E)Leadership skills

Answer 3

B

Question 4

A stakeholder orientation can be viewed as a(n)

A)necessity for business success.
B)continuum.
C)polarizing concept.
D)good marketing ploy.
E)expensive proposition.

Question 5

The normative approach ______________________.

A)focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships
B)describes what happens if firms behave in a particular way
C)is the degree to which a firm understands and addresses stakeholder demands
D)describes reciprocal relationships between the firm and a host of stakeholders
E)identifies guidelines that dictate how firms should treat stakeholders

Question 6

The degree to which a firm understands and addresses stakeholder demands can be referred to as

A)a stakeholder orientation.
B)a shareholder orientation.
C)the stakeholder interaction model.
D)a two-way street.
E)a continuum.

Question 7

The originator of the idea of the invisible hand,which is a fundamental concept in free market capitalism,was

A)Adam Smith.
B)Archie Carroll.
C)Jack Ma.
D)Noel Biderman.
E)Milton Friedman.

Question 8

Those who have a claim in some aspect of a firm's products,operations,markets,industry,and outcomes are known as

A)shareholders.
B)stockholders.
C)stakeholders.
D)claimholders.
E)special-interest groups.

Question 9

Which of the following industries tends to generate a high level of trust from consumers and stakeholders?

A)Insurance
B)Technology
C)Banks
D)Mortgage lenders
E)Financial services

Question 10

_________________ is the idea that because people live in a community,social rules should benefit the community.

A)The stakeholder interaction model
B)Consumer protection
C)The common good
D)Sustainability
E)Corporate governance

Question 11

Why is it important for businesses to recognize secondary stakeholder groups?

A)They are absolutely necessary for the firm's survival.
B)They include the employees necessary for the firm's success.
C)They usually have more power than primary stakeholders.
D)They provide vital resources that companies need.
E)They have legitimacy and can exert power.

Question 12

Stakeholders' power over businesses stems from their

A)ability to withdraw or withhold resources.
B)ability to generate profits.
C)media impact.
D)political influence.
E)stock ownership.

Question 13

Which of the following describes the four levels of social responsibility? 

A)economic, social, legal, and voluntary
B)economic, legal, environmental, and ethical
C)financial, legal, environmental, and philanthropic
D)economic, financial, legal, and ethical
E)economic, legal, ethical, and philanthropic

Question 14

Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?

A)Employees
B)Secondary stakeholders
C)Primary stakeholders
D)Investors
E)Customers

Question 15

The first of the three activities that are associated with the stakeholder orientation is the

A)organization-wide generation of data.
B)organization's responsiveness to intelligence.
C)set of consumer attributes identified.
D)organizational strategy of target markets.
E)human relations department's set of priorities.

Question 16

A firm that makes use of a _____ recognizes other stakeholders beyond investors,employees,and suppliers,and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments.

A)stakeholder model of corporate governance
B)stakeholder bias
C)code of ethics
D)stakeholder interaction model
E)corporate interface model

Question 17

Public health and safety and support of local organizations are issues most relevant to which stakeholder group?

A)Investors
B)Community
C)Suppliers
D)Customers
E)Employees

Question 18

When unethical acts are discovered in a firm,in most instances

A)they are caused by unwilling participants.
B)the cause is due to external stakeholders.
C)the perpetrators are caught and prosecuted.
D)there was knowing cooperation or complicity from within the company.
E)the cause is a corrupt Board of Directors.

Question 19

A stakeholder group that is absolutely necessary for a firm's survival is defined as

A)direct.
B)tertiary.
C)secondary.
D)special-interest.
E)primary.

Question 20

The idea that the mission of business is to produce goods and services at a profit,thus maximizing its contribution to society is associated with

A)Adam Smith.
B)Archie Carroll.
C)Jack Ma.
D)Noel Biderman
E)Milton Friedman.

Question 21

In corporate governance,_____ is the process of auditing and improving organizational decisions and actions.

A)profit
B)loyalty
C)accountability
D)control
E)diligence

Question 22

Which of the following are not typically primary stakeholders?

A)Customers
B)Trade associations
C)Employees
D)Shareholders
E)Suppliers

Question 23

Major corporate governance issues normally involve _____ decisions.(Choose the response that is most correct)

A)strategic-level
B)tactical-level
C)divisional-level
D)marketing-level
E)accounting-level

Question 24

What is the first step in implementing a stakeholder perspective in an organization?

A)Identifying resources and determining urgency
B)Identifying stakeholder groups
C)Identifying stakeholder issues
D)Assessing the corporate culture
E)Assessing organizational commitment to social responsibility

Question 25

Why do critics argue that high compensation for boards of directors is a bad thing?

A)It is too expensive for the organization.
B)It could cause conflicts of interest between the directors and the organization.
C)It is not fair to poorly compensated employees.
D)High pay will render the board less complacent.
E)Board of director compensation is negatively related to corporate growth.

Question 26

Which of the following is a major ethical concern among corporate boards of directors?

A)Compensation
B)The non-traditional directorship approach
C)Dividend reporting
D)Secondary stakeholders
E)Debt swaps

Question 27

Why do some businesspeople and scholars question whether ethics should have a role in business?

Question 28

The _____ model is founded in classic economic precepts.

A)economic
B)shareholder
C)stakeholder
D)board
E)ISO

Question 29

Accountability,oversight,and control all fall under the definition and implementation of corporate

A)profit.
B)loyalty.
C)care.
D)governance.
E)diligence.

Question 30

Compare and contrast the stakeholder and shareholder models of corporate governance.

Question 31

The purpose of a stakeholder orientation is to

A)emphasize shareholders and provide them with a return on their investment.
B)maximize positive outcomes that meet stakeholder needs.
C)enhance the profitability of the firm.
D)determine which stakeholders to address and which to ignore.
E)allow stakeholders to determine the limits of executive compensation.

Question 32

The specific steps for implementing the stakeholder perspective do not include which of the following?

A)Identifying stakeholder groups
B)Identifying stakeholder issues
C)Identifying and gaining stakeholder feedback
D)Identifying and gaining government feedback
E)Assessing organizational commitment to social responsibility groups

Question 33

Discuss three corporate governance issues,why they are defined as issues,and how you would solve them.Use examples in your answer.

Question 34

The term used to express how a firm meets its stakeholder expectations of its economic,legal,ethical,and philanthropic responsibilities is

A)reputation.
B)corporate citizenship.
C)corporate ethical audit.
D)ethical citizenship.
E)fiduciary duties.

Question 35

Which of the following are not typically secondary stakeholders?

A)Television news anchors
B)Special-interest groups
C)Customers
D)Trade associations
E)Journalists

Question 36

A stakeholder orientation is not complete unless it includes

A)clear accounting procedures.
B)major financing activities.
C)marketing strategy.
D)feedback from special-interest groups.
E)activities that actually address stakeholder issues.

Question 37

What are the four levels of social responsibility?

A)Financial, religious, ethical, and philanthropic
B)Ethical, philanthropic, selfish, and short-sighted
C)Economic, long-term, ethical, and philanthropic.
D)Economic, legal, ethical, and philanthropic
E)Economic, compliance, legal, and philanthropic

Question 38

Why is ethical misconduct more difficult to overcome than poor financial performance?

Question 39

Discuss the difference between primary and secondary stakeholders in the stakeholder interaction model and give examples for each type.

Question 40

Board members being linked to more than one company is an example of

A)strategic philanthropy.
B)stakeholder commitment.
C)interlocking directorate.
D)conflict of interest.
E)an illegal activity.

Question 41

?In Dodge vs.Ford Motor Co.,the court ruled that a business exists for the profit of shareholders,and the board of directors should focus on that objective.

Question 42

Social responsibility rests on a stakeholder orientation.?

Question 43

Which of the following is one of an organization's greatest intangible assets with tangible values? ?

A)?reputation
B)?profitability
C)philanthropic activities
D)?corporate governance
E)?shareholder value

Question 44

The final step in implementing a stakeholder perspective is identifying stakeholders.?

Question 45

Ethics and social responsibility can be used interchangeably.?

Question 46

A broader view of social responsibility?

A)?views customers as the most important stakeholder.
B)?takes into account a shareholder orientation.
C)?prioritizes all stakeholders the same way.
D)?considers the long-term welfare of society.
E)?emphasizes adherence to law as the highest priority.

Question 47

Government regulators are a secondary stakeholder.?

Question 48

The board of directors' fiduciary duty to a company means they have assumed a position of trust and confidence that entails certain responsibilities.