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

Question 1

An online discussion forum, where visitors can express their opinions on the company's activities and their implications, like that offered by Shell, exemplifies which stakeholder orientation activity?

A) Stakeholder interaction
B) The generation of data about stakeholder groups and assessment of the firm's effects on these groups
C) The distribution of stakeholder information throughout the firm
D) The organization's responsiveness as a whole to intelligence about stakeholder groups and their concerns
E) The generation of data about stakeholder groups and distribution of that information throughout the firm so that the firm can counter those firms

Answer 1

The generation of data about stakeholder groups and assessment of the firm's effects on these groups

Question 2

Ethical misconduct and decisions that damage stakeholders will generally impact (a)

A) company's reputation from an investor's perspective.
B) company's reputation from a consumer's perspective.
C) company's reputation and confidence level.
D) shareholder value.
E) All of these statements are true.

Answer 2

All of these statements are true.

Question 3

Which of the following does not play a direct role in reforms to improve corporate accountability and transparency?

A) Banks
B) Consumers
C) Attorneys
D) Public accounting firms
E) Regulators

Answer 3

Consumers

Question 4

The stakeholder model argues that a firm's ____ should balance the interests and conflicts of the various stakeholders.

A) management
B) CEO and CFO
C) Board of Directors
D) entire management staff
E) entire executive suite

Question 5

One way through which shareholder activists can evoke change in the structure of boards and the level of accountability of corporations is through

A) proxy battles.
B) board of director voting processes.
C) CEO wages.
D) negative Initial public offering campaigns.
E) more unionization.

Question 6

One policy for limiting executive pay, implemented at J.P. Morgan, was that top managers should earn no more than ____-times the pay of any other employee.

A) 5
B) 20
C) 100
D) 150
E) 500

Question 7

Which of the following criteria should be considered when identifying resources and determining the urgency within the stakeholder framework?

A) The level of financial investments required by different actions
B) The social structure of employees and management
C) The number of unions and activists
D) The probability of Federal legislation
E) The potential for criminal activities

Question 8

Discuss and justify whether Smith's or Friedman's economic models will be the predominant model when it comes to business and corporate social responsibility.

Question 9

Explain the stakeholder orientation.

Question 10

Discuss the six psychological motives laid out by Adam Smith and how they should be applied in the twenty-first century.

Question 11

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