Deck 3: The Stakeholder Approach to Business, Society, and Ethics.

Question 1

Once stakeholders have been identified, the firm can safely assume that they will remain the same for several years.

Answer 1

False

Question 2

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.

Answer 2

False

Question 3

Before managers in the firm can identify what stakes are held, they must first identify who the stakeholders are.

Answer 3

True

Question 4

Some authors now argue that stakeholder inclusion is the key to corporate success.

Question 5

A major criticism of the stakeholder management approach is that it is extremely complex and time consuming.

Question 6

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.

Question 7

To get a corporation to respond to its demands a stakeholder must hold all three attributes of power, legitimacy, and urgency.

Question 8

Because stakeholder challenges usually contain a risk of damage to the firm, they are given more attention than stakeholder opportunities in the textbook.

Question 9

The descriptive value of the stakeholder model is based in its ability to identify and describe particular stakeholders for the firm.

Question 10

The stakeholder model has normative value because it emphasizes how stakeholders should be treated.

Question 11

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.

Question 12

For sustainable development to become a reality, which approach offers the best opportunity for this to happen?

A) Socioeconomic
B) Stakeholder
C) Shareholder
D) Organizational

Question 13

The stakeholder view of the firm is now universally accepted.

Question 14

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.

Question 15

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.

Question 16

The transactional level of stakeholder management capability requires companies to compete on the basis of their financial strength and tangible assets.

Question 17

The corporation is currently viewed as having a specialized purpose of providing a profit through the provision of goods and services.

Question 18

The key to effective stakeholder management is in its implementation.

Question 19

The use of generic groups to answer the question "Who are our stakeholders?" is generally sufficient for businesses.

Question 20

The primary strategy for a manager relative to a marginal stakeholder is to monitor that group.

Question 21

The view of the firm that recognizes suppliers, customers, employees, and owners as stakeholders is the

A) production view.
B) managerial view.
C) ownership view.
D) stakeholder view.

Question 22

Business organizations must address the legitimate needs and expectations of stakeholders because

A) it is required by law.
B) it is the right thing to do.
C) stakeholders force them to.
D) they will need to, in order to be successful in the long run.

Question 23

An interest or share in something is referred to as a(n)

A) option.
B) ownership position.
C) stake.
D) bond.

Question 24

The view of the firm that recognizes just suppliers and customers as stakeholders is the

A) production view.
B) managerial view.
C) ownership view.
D) stakeholder view.

Question 25

Which of the following statements is accurate?

A) Stockholders are the same thing as stakeholders.
B) All stakeholders are stockholders.
C) Stakeholders are a subset of stockholders.
D) Every stockholder is a stakeholder.

Question 26

Which of the following is not recognized as a type of stake?

A) an interest
B) an option
C) a right
D) ownership

Question 27

Any type of stake can be viewed as a(n)

A) option.
B) ownership position.
C) right.
D) duty.

Question 28

An individual or group who can affect or be affected by an organization is a(n)

A) stakeholder.
B) stockholder.
C) shareholder.
D) owner.

Question 29

If we consider the stakeholder typology, and the three attributes of power, group number seven in the very center is called:

A) A definitive stakeholder
B) A dormant stakeholder
C) A dependent stakeholder
D) A discretionary stakeholder

Question 30

Which of the views of the firm recognizes the most stakeholders and is the most complex?

A) production view
B) managerial view
C) ownership view
D) stakeholder view

Question 31

The view of the firm that recognizes a wide variety of groups as stakeholders is the

A) production view.
B) managerial view.
C) ownership view.
D) stakeholder view.

Question 32

A nonhuman species (such as the spotted owl) that holds a direct stake in a firm is called a

A) primary social stakeholder.
B) secondary social stakeholder.
C) primary nonsocial stakeholder.
D) secondary nonsocial stakeholder.

Question 33

Which of the following is not an attribute upon which managers judge the importance of stakeholders?

A) power
B) urgency
C) legitimacy
D) nationality

Question 34

If we consider the stakeholder typology, and the three attributes of power, group number one on the top outside is called:

A) A dormant stakeholder
B) A dangerous stakeholder
C) A demanding stakeholder
D) A nonstakeholder

Question 35

A group of people who holds a direct stake in the firm is known as

A) primary social stakeholders.
B) secondary social stakeholders.
C) primary nonsocial stakeholders.
D) secondary nonsocial stakeholders.

Question 36

A group of people who is able to influence the firm, but does not hold a direct stake in is known as

A) primary social stakeholders.
B) secondary social stakeholders.
C) primary nonsocial stakeholders.
D) secondary nonsocial stakeholders.

Question 37

If we consider the stakeholder typology, and the three attributes of power, group number eight on the outside is called:

A) A definitive stakeholder
B) A dangerous stakeholder
C) A demanding stakeholder
D) A nonstakeholder

Question 38

A group of people who represents the interests of a nonhuman species (such as the natural environment) and does not have a direct stake in the firm is known as

A) primary social stakeholders.
B) secondary social stakeholders.
C) primary nonsocial stakeholders.
D) secondary nonsocial stakeholders.

Question 39

Some authors indicate that the corporate model needs redefinition because of all the following except

A) Business size
B) Socioeconomic power
C) Inadequacy of the ownership model and its implications
D) Responsiveness

Question 40

Which of the views of the firm recognizes the fewest stakeholders and is the least complex?

A) production view
B) managerial view
C) ownership view
D) stakeholder view

Question 41

Which of the following is not seen as a value of the stakeholder model of the firm?

A) It is descriptive.
B) It is instrumental.
C) It is judgmental.
D) It is normative.

Question 42

Stakeholders that are perceived to have high levels of power, legitimacy, and urgency are referred to as

A) dormant stakeholders.
B) demanding stakeholders.
C) discretionary stakeholders.
D) definitive stakeholders.

Question 43

Responsibilities for stakeholder management include all of the following except

A) social.
B) ethical.
C) philanthropic.
D) economic.

Question 44

The perceived validity or appropriateness of a stakeholder's claim is referred to as

A) power.
B) legitimacy.
C) urgency.
D) coercion.

Question 45

Which of the following is not listed as a question to ask in order to gain the essential information needed for stakeholder management?

A) Who are our stakeholders?
B) What do our stakeholders want?
C) What are our stakeholders' stakes?
D) What opportunities and challenges do our stakeholders present to the firm?

Question 46

Which of the following is not considered an important function of stakeholder management?

A) to lead
B) to understand
C) to analyze
D) to manage

Question 47

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.

Question 48

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Describe the origin of stake and stakeholder.

Question 49

The view of stakeholders that recognizes the firm's moral responsibilities to all stakeholders, but that they should not be seen as fiduciary obligations is called the

A) strategic approach.
B) multifiduciary approach.
C) symbiotic approach.
D) stakeholder synthesis approach.

Question 50

The recommended strategy for nonsupportive stakeholders is to

A) monitor them.
B) defend against them.
C) involve them.
D) collaborate with them.

Question 51

A stakeholder's ability or capacity to produce an effect within the firm is called its

A) power.
B) legitimacy.
C) urgency.
D) coercion.

Question 52

The challenges of stakeholder management include all of the following except

A) assuring that the firm's primary stakeholders achieve their objectives.
B) seeing to it that the firm's secondary stakeholders are treated ethically and are relatively satisfied.
C) making the firm profitable.
D) maintaining strong relations with governmental stakeholders.

Question 53

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

Question 54

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

Question 55

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.

Question 56

The degree to which a stakeholder's claim requires immediate response is its

A) power.
B) legitimacy.
C) urgency.
D) coercion.

Question 57

The view of stakeholders that sees them as more than just people or groups who can wield economic or legal power is the

A) strategic approach.
B) multifiduciary approach.
C) symbiotic approach.
D) stakeholder synthesis approach.

Question 58

Stakeholders who have a high potential for cooperation and a low potential for threat to the firm are known as ____ stakeholders.

A) mixed blessing
B) supportive
C) nonsupportive
D) marginal

Question 59

Which of the firm's social responsibilities is not relevant in analyzing management's duties to stakeholders?

A) economic
B) legal
C) ethical
D) philanthropic

Question 60

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

Question 61

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Are the natural environment and nonhuman species properly considered stakeholders of the firm? Defend your answer.

Question 62

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Discuss how PETA is making itself a stakeholder in the wool industry.

Question 63

Provide a short answer to each of these questions. Be sure to fully explain your answer.
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.

Question 64

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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.

Question 65

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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.

Question 66

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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.

Question 67

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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.

Question 68

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Describe the levels of stakeholder management capability.

Question 69

Provide a short answer to each of these questions. Be sure to fully explain your answer.
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.

Question 70

Provide a short answer to each of these questions. Be sure to fully explain your answer.
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?

Question 71

Provide a short answer to each of these questions. Be sure to fully explain your answer.
A major factor in support of stakeholder management is stakeholder culture. Explain how various cultures impact stakeholder management.

Question 72

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Compare and contrast the strategic, multifiduciary, and synthesis approaches of stakeholder management.

Question 73

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Explain what the concept of tapping the expertise of stakeholders means.

Question 74

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Summarize the principles of stakeholder management.

Question 75

Provide a short answer to each of these questions. Be sure to fully explain your answer.
Stakeholders present both opportunities and challenges to the firm. Why does the textbook choose to focus only on the challenges?