Deck 3: Leadership, Change Management, and Corporate Governance

Question 1

The general theme of sustainable business leadership is to consider _________ when making strategic decisions.

A) Profit
B) Shareholders
C) External stakeholders
D) None of the above

Answer 1

External stakeholders

Question 2

External stakeholders of business decision-making include ________.

A) Communities
B) NGOs
C) Government agencies
D) All of the above

Answer 2

All of the above

Question 3

Responding to climate change requires overcoming collective action problems, which are known by economists as a form of ______.

A) Bargaining
B) Market failure
C) Regulation
D) Pricing

Answer 3

Market failure

Question 4

In a collective action problem, a "freerider" is a party who benefits from the cooperation of others without _________ cooperation.

A) Advocating
B) Preventing
C) Reciprocating
D) Utilizing

Question 5

An example of a freerider effect in climate change mitigation is ________.

A) Species loss
B) Infectious disease
C) Pollution controls
D) Carbon leakage

Question 6

Private sector leadership that _________ can help avoid a tragedy of the commons.

A) Internalizes costs
B) Avoids costs
C) Externalizes costs
D) Generates costs

Question 7

A market situation where all participants have an incentive to exploit a resource yet no one can limit anyone else's access to that resource, resulting in over-exploitation, can be described as a(n) __________.

A) Comedy of errors
B) Tragedy of the commons
C) Risk-reward scenario
D) Efficiency

Question 8

Voluntary adherence to a firm- or industry-specific code of conduct is a form of __________.

A) Private sector leadership
B) Self-regulation
C) Environmental management
D) All of the above

Question 9

Self-regulation such as the American Chemistry Council's Responsible Care Management System is _______ by government.

A) Mandated
B) Not required
C) Discouraged
D) Designed

Question 10

In the first study of the Responsible Care Management System's effectiveness, it appeared that participating firms ______ accidents but ______ pollution.

A) Suffered, limited
B) Caused, limited
C) Reduced, increased
D) None of the above

Question 11

The purpose of the Responsible Care Management System is to _________ emergency response, employee health and safety, pollution prevention, and product and process safety.

A) Define
B) Delegate responsibility for
C) Avoid liability for
D) Improve company performance in

Question 12

In terms of individual leadership, sustainable business leadership is the effective use of your ____, ____, ____, and ____, given the external and internal context of your company, to promote a sustainable mission.

A) Brand, capital, market position, clout
B) Personality, style, skills, knowledge
C) Resources, network, employees, brand
D) Marketing, operations, supply chain, finance

Question 13

The most important competencies of sustainable business leadership are external awareness, strategy formulation, risk management, ______, ______, and ethics.

A) Decisiveness, communication
B) Environmental expertise, generosity
C) Stakeholder engagement, flexibility
D) Drive, commitment

Question 14

The four traditional types of organizational leadership strategy are forceful, strategic, operational, and _____.

A) Enabling
B) Visionary
C) Manipulative
D) Decisive

Question 15

Sustainable business leadership avoids the _______ of the four traditional types of organizational leadership.

A) Overbearing tendencies
B) Rigid postures
C) Aggressive style
D) Vices

Question 16

Sustainable business leaders tend to exhibit a five-stage pattern of increasing incorporation of sustainability into practice: instilling values, taking action, deepening understanding, ______, and _______.

A) Rejecting old ideas, innovating
B) Sustaining commitment, advocating within industry
C) Increasing awareness, experimentation
D) Systems thinking, experimentation

Question 17

A new position in corporate leadership, titled the ____________, is responsible for overseeing corporate-wide sustainable performance.

A) Executive Director of Sustainability
B) Sustainability Manager
C) Environmental Task Force
D) Corporate Sustainability Officer

Question 18

A successful Chief Sustainability Officer cultivates relationships with external stakeholders but ________ a background in environmental policy.

A) Must have
B) Never has
C) Does not require
D) Usually has

Question 19

The Chief Sustainability Officer must be able to manage _____ composed of representatives from across the various functions of an organization.

A) Virtual teams
B) Directors
C) Supplier
D) Volunteer groups

Question 20

Entrepreneurs find innovative ways to create value through ________ when resources are constrained.

A) Externalizing costs
B) Problem-solving flexibility
C) Increasing competition
D) Intellectual property

Question 21

Eco-entrepreneurialism pursues enhancements in resource efficiency, satisfying society's unmet needs, and _______.

A) Generating ROI
B) Marketing opportunities
C) Extended producer responsibility
D) Transforming waste into an asset

Question 22

Innovation is the investment of a company into research and development resulting in ______ from the status quo.

A) Departure
B) Equality
C) Beneficial change
D) Stabilization

Question 23

Eco-innovation changes a firm's processes and responsibilities to reduce environmental impacts and support ______.

A) Organizational learning
B) Philanthropy
C) Equal rights
D) Organized labor

Question 24

Sustainability can stimulate progress along all four dimensions of innovation: marketing, organizational, ______ and ______.

A) Environmental, social
B) Managerial, technological
C) Product, process
D) Functional, design

Question 25

The four traditional strategies for business advantage are cost leadership, differentiation, _____, and the combination of cost leadership and differentiation.

A) Minimizer
B) Focus
C) Transformer
D) Innovation

Question 26

The _____ business strategy seeks to reduce costs across the triple-bottom line.

A) Pioneer
B) Modern
C) Traditional
D) Minimizer

Question 27

The strategy that combines cost leadership with differentiation offers a ______ that is lower in average cost than competitors, and a _____ that commands a price premium.

A) General product portfolio, distinct product line
B) Product, service
C) Service, product
D) Distinct product line, general product portfolio

Question 28

Change management means altering corporate _____ in response to environmental influences in order to achieve a goal.

A) Products
B) Behavior
C) Compensation
D) Offerings

Question 29

Organizational development is a planned change management process that systematically improves _______, _______, and ______ aspects of an organization.

A) Social, environmental, economic
B) Financial, risk, marketing
C) Individual, interpersonal, structural
D) Human resources, information technology, facilities management

Question 30

Kurt Lewin's classic three-step change management process involves ______, ______, and ______, in that order.

A) Refreezing, changing, unfreezing
B) Reinforcing, adopting, informing
C) Changing, unfreezing, refreezing
D) Unfreezing, changing, refreezing

Question 31

In Lewin's terms, the ______ process takes place when managers inform employees that the status quo is no longer sustainable and that change is needed.

A) Freezing
B) Unfreezing
C) Reinforcing
D) Adopting

Question 32

In Lewin's terms, the _____ step of the change management process involves communication and training throughout an organization to reinforce the new sustainability strategy.

A) First
B) Second
C) Third
D) Fourth

Question 33

In Lewin's terms, the _______ process consists of the company's people adopting new behaviors and attitudes in pursuit of the organization's new sustainability strategy.

A) Refreezing
B) Transformation
C) Changing
D) Unfreezing

Question 34

__________ are the legal agreements between shareholders and management that spell out the fiduciary duties owed by the managers to the organization.

A) Voting shares
B) Securities
C) Bonds
D) Articles of Incorporation

Question 35

Corporate __________ is the system of rules, practices, and processes by which a company's various divisions are directed and controlled to fulfill the company mission.

A) Strategy
B) Mission
C) Leadership
D) Governance

Question 36

Unlike traditional corporate governance, sustainable corporate governance uses the mechanisms of corporate control to create long-term value for _________.

A) Shareholders
B) Financiers
C) External stakeholders
D) Executives

Question 37

Any corporate governance framework should include the following six elements: Board of Directors, ______, Organizational Hierarchy, ______, Transparency and Accountability, and Policies and Procedures.

A) Legal Compliance, Internal Control
B) Innovation, Entrepreneurship
C) Stakeholders, Government Officials
D) Managers, Employees

Question 38

An Independent Director must have ___________ with the company prior to being appointed.

A) Stock
B) Experience
C) No material relationship
D) Competed

Question 39

Executive committees are _____________ subgroups made up of Executives and Directors appointed to _____ within the company.

A) Voluntary, raise morale
B) Permanent, generate loyalty
C) Mandatory, instill discipline
D) Task-oriented, address issues

Question 40

This form of corporate governance allows owners of voting stock to influence the behavior of a company:

A) Public petitions
B) Securities
C) Shareholder resolutions
D) License

Question 41

Because investors are waking up to sustainability issues, they have been increasingly involved via ______ concerning social and environmental challenges faced by public companies.

A) Class-action lawsuits
B) Shareholder resolutions
C) Lobbying
D) Grassroots campaigns

Question 42

The shareholder view of corporate responsibility states that the sole objective of business leaders is to maximize shareholder _____.

A) Participation
B) Influence
C) Value
D) Engagement

Question 43

The stakeholder view of corporate responsibility states that business leaders should create as much value for external stakeholders as possible, without negatively impacting ______.

A) The environment
B) Local communities
C) The company brand
D) Profitability to shareholders

Question 44

Under ______, such as quarterly reporting periods, there may appear to be conflict between shareholder and stakeholder interests.

A) Perfect conditions
B) Short time-horizons
C) Conditions of uncertainty
D) Long time-horizons

Question 45

The ______ view of corporate responsibility resolves the tension between shareholder and stakeholder views.

A) Enlightened value maximization
B) Strategic
C) Altruistic
D) Traditional

Question 46

According to the ______ view of corporate responsibility, business leaders should use resources efficiently and maximize total value creation for all stakeholders.

A) Shareholder
B) Stakeholder
C) Enlightened value maximization
D) Traditional

Question 47

The two main areas of disagreement in the corporate responsibility debate center around who is the proper ______ of corporate leadership and what time-horizons are relevant for assessing ______.

A) Decider, bonuses
B) Ambassador, succession and promotion
C) Beneficiary, corporate performance
D) Spokesperson, return on investment

Question 48

With respect to the B-Corporation, the "B" stands for ______.

A) Beneficial
B) Bonded
C) Beta
D) Bona fide

Question 49

A company can amend their Articles of Incorporation to become a B-Corporation, which will ______ management to consider the interests of stakeholders.

A) Enable
B) Allow
C) Encourage
D) Require

Question 50

Unilever's ______ approach involves providing consumer products that help solve real life problems, especially in low-income emerging markets.

Question 51

In a collective action problem, a ______ benefits from the cooperation of others, but does not reciprocate cooperation.

Question 52

Kurt Lewin's classic change management framework involves these three processes: ______, ______, and ______.

Question 53

______ is what happens when a company has attained a fit between its core strategy, its organizational structure, and its competitive landscape through the performance of its employees and the consequences of its activities.

Question 54

The ______ view of corporate responsibility reconciles the dilemma between shareholder and stakeholder perspectives.

Question 55

Describe the Responsible Care Management System and evaluate its impact on the chemical industry's social and environmental performance.

Question 56

Distinguish the three stages of Kurt Lewin's classic change management framework.

Question 57

Explain the rationale behind Unilever CEO Paul Polman's decision to cease publication of quarterly profit reports.

Question 58

Summarize the two main views about sustainability from the point of view of executives.

Question 59

Distinguish the three main views concerning the social responsibility of business.