Deck 4: Stakeholder and Issue Analysis

Question 1

Nancy identifies that a particular NGO is a problematic stakeholder.This implies that the NGO will oppose the course of action proposed by Nancy's company and should be considered an important stakeholder.

Answer 1

False

Question 2

Legitimacy is a generalized perception that the actions of an entity are appropriate within some socially constructed system of norms.

Answer 2

True

Question 3

Stakeholder management represents how managers perceive stakeholders.This suggests that stakeholders can be controlled.

Answer 3

False

Question 4

Stakeholder attributes: power,legitimacy,and urgency,exist in an objective,steady state.

Question 5

Bart is hoping to develop effective strategies to help his company deal with hiring practices for employees.He does a matrix map to determine the influence of the union on this process.Although useful,matrix mapping will not help Bart identify appropriate courses of action to counter or influence the demands placed by this stakeholder.

Question 6

When considering the diagnostic typology of organizational stakeholders,the strategy for managing supportive stakeholders is to encourage the cooperative potential and not ignore them or take them for granted.

Question 7

When considering the diagnostic typology of organizational stakeholders,the strategy for managing marginal stakeholders is to monitor them closely while recognizing that their interests are narrow and issue-specific.

Question 8

Nahreem is identifying the salient stakeholders for her company.She determines that a particular NGO is dangerous because it possesses power and urgency but lacks legitimacy.

Question 9

All corporations should involve themselves in stakeholder management.

Question 10

Latent stakeholders are those with one attribute and low salience,whereas expectant stakeholders possess three attributes and are more salient.

Question 11

A strategy to manage antagonistic stakeholders is to provide educational programs.

Question 12

NTM Corporation has assigned Robert to respond to environmental NGOs as a key stakeholder group.Robert considers environmentalism to be an inappropriate concern for business.For this reason,he will be an appropriate choice for this role.

Question 13

Stakeholder salience may change by acquiring an attribute.

Question 14

Power can be used to influence another to act in ways other than they intended.

Question 15

The main value of creating a map or diagram of the stakeholders of a company is to gain an understanding for the number of stakeholders and their real and possible influences.

Question 16

Low priority stakeholders are supportive of an organization's course of action.

Question 17

Ahmed is assessing and managing stakeholder relationships regarding his company's planned change to their supply chain.He determines that the sales employees within his company are not a particularly powerful threat,but are not likely to cooperate with the planned change.This stakeholder group is considered marginal and should therefore be involved more fully in the decision-making.

Question 18

Matrix mapping is a technique of categorizing an organization's stakeholders by their influence according to two variables.

Question 19

Portfolio analysis can be used to assess stakeholders.

Question 20

Stakeholder management capability involves analysis of the power stakeholders held over the organization's decisions.This is done in the process level of stakeholder management.

Question 21

Roberta is responsible for the firm's relationship with its suppliers.She is careful to ensure that they receive regular emails regarding product development and that they are invited to company sponsored events.Roberta's role is consistent with which level of Freeman's stakeholder relationship process?

A) Process
B) Rational
C) Transactional
D) Stakeholder identification
E) None of the answers.

Question 22

The position/importance matrix is a method used to categorize stakeholders.Stakeholder who would support the organization's course of action and are important to the organization would be placed in the ________ category.

A) low priority stakeholders
B) antagonistic stakeholders
C) supporter stakeholders
D) problematic stakeholders
E) None of the answers.

Question 23

Stakeholder collaboration is also referred to as stakeholder engagement in the academic literature and in corporate reports.

Question 24

Social capital is created when the relationship between stakeholders and the organization gains increased understanding,cooperation,and coordination.

Question 25

Stakeholder management focuses on managing relationships whereas stakeholder collaboration focuses on building relationships.

Question 26

Resource dependence applies when an organization only has one supplier to obtain one or more resources.

Question 27

If a definitive stakeholder loses an attribute no salience exists.

Question 28

Which of the following is an industry where it is particularly important for corporations to be involved in stakeholder management?

A) Oil and Gas industry
B) Pharmaceutical industry
C) Automotive industry
D) Child care services industry
E) All of the answers.

Question 29

One perspective of social capital views it as the trust or goodwill existing between the corporation and its stakeholders.

Question 30

A large chain of bookstores called Littera is planning to build a new store in a small town in the prairies.They are known for their large selection and low prices.Before going public,the management at Littera decides to categorize identified stakeholders using a position/importance matrix.There are three small,independent bookstores in town.They aren't considered to be a competitive concern.They would be categorized as _________________.

A) low priority stakeholders
B) antagonistic stakeholders
C) supporter stakeholders
D) problematic stakeholders
E) None of the answers.

Question 31

BCS Corporation is developing its level of stakeholder management capability.In the _______ level of the process of managing stakeholder relationships,the firm identifies coalitions that are formed amongst the stakeholder groups.

A) rational
B) process
C) transactional
D) stakeholder identification
E) None of the answers.

Question 32

Kim is applying the position/importance matrix as a method to categorize stakeholders in his company.The company is considering changing the colour of its product from blue to bright pink.Stakeholders who support the organization's course of action and are relatively unimportant to the company are considered _________ and a(n) __________ strategy is appropriate.

A) low priority stakeholders; accommodation
B) supporter stakeholders; educational
C) low priority stakeholders; educational
D) supporter stakeholders; accommodation
E) None of the answers.

Question 33

The difference between a withholding strategy and a usage strategy is whether the intention to change behaviour exists.

Question 34

Effective and efficient relationships with stakeholders may provide a competitive advantage.

Question 35

Increasing the organization's environmental stability and enhancing control over changing circumstances are goals of collaboration.

Question 36

The position/importance matrix is a method used to categorize stakeholders.Stakeholders who would oppose the organization's course of action and are relatively unimportant to the organization would be placed in the ________ category.

A) low priority stakeholders
B) antagonistic stakeholders
C) supporter stakeholders
D) problematic stakeholders
E) None of the answers.

Question 37

Telus Corporation announced in February 2007 that it has no plans to change its policy of supporting the download of pornography to cellular phones.Parents opposed to this policy,and are considered by the company to be very important stakeholders.They are also likely to form coalitions to gain further power.Parents are _________ stakeholders and a(n) _____________ strategy is appropriate.

A) antagonistic; avoidance
B) problematic; defensive
C) antagonistic; defensive
D) problematic; avoidance
E) None of the answers.

Question 38

Indirect strategies,such as influence pathway,requires communication and cooperation of high degree between stakeholders,therefore they are difficult to sustain.

Question 39

Ishmal determines that the company shareholders expect attention from the company,but their demands are not urgent.He also notes that they do have considerable power and a legitimate claim to have input.This stakeholder is a dependent stakeholder and therefore in the definitive stakeholder category.

Question 40

An example of the potential business value created by the benefits of social capital is when norm adherence establishes a strong emotional connection between the corporation and its customers.

Question 41

A chemical manufacturing plant obtains various ingredients from many suppliers.There is one rare ingredient that is only available from a single supplier.This relationship is an example of

A) Indirect/usage (firm power).
B) Direct/usage (high interdependence).
C) Indirect/withholding (low interdependence).
D) Direct/withholding (stakeholder power).
E) None of the answers.

Question 42

There are very few channels to distribute MNKY Corporation's product to rural New Brunswick.The company has therefore become dependent upon TRK Shipping to distribute its product.The only alternative shipper makes a deal with TRK Shipping to not bid down the contract price.The alternative shipper is applying a(n) ________ strategy on behalf of TRK Shipping.

A) withholding
B) usage
C) influence pathway
D) withholding and influence pathway
E) usage and influence pathway

Question 43

When considering the dimensions of social capital,one can be described as represented by the networks in which the relationships are embedded.It is called:

A) Structural
B) Relational
C) Cognitive
D) Influence pathway
E) Matrix mapping

Question 44

There are three attributes in the stakeholder typology,power,legitimacy,and urgency.If a stakeholder possesses all three attributes they are called a _____________ stakeholder.

A) dangerous
B) definitive
C) dominant
D) dependent
E) discretionary

Question 45

Svendsen outlines a framework that includes six steps to foster stakeholder relationships.After an organization has created a foundation,aligned the organizations,and developed a strategy,it must move on to the next step,which is

A) Initiate contact
B) Build trust
C) Gain consensus within the whole organization
D) Influence pathway
E) Evaluate the relationship

Question 46

A large chain of bookstores called Littera is planning to build a new store in a small town in the prairies.They are known for their large selection and low prices.Before going public,the management at Littera decides to categorize identified stakeholders using a position/importance matrix.The customers who would purchase from Littera would be categorized as:

A) Low priority stakeholders
B) Antagonistic stakeholders
C) Supporter stakeholders
D) Problematic stakeholders
E) None of the answers.

Question 47

A supplier only makes one product and sells it exclusively to one chemical manufacturing plant.Their relationship is an example of

A) Indirect/usage (firm power).
B) Direct/usage (high interdependence).
C) Indirect/withholding (low interdependence).
D) Direct/withholding (stakeholder power).
E) Direct/usage (firm power)

Question 48

Wearebig is a large department store chain and is planning to open a new store in a city in southern Manitoba.The location was chosen because the city's size should provide an excellent customer base for the store.Residents of a small,neighboring town are excited that the store will be open and plan to shop there as well.The residents of the small town are most probably __________ stakeholders and Wearebig should adopt a strategy to ____________.

A) supportive; provide information to reinforce this position
B) low priority; provide information to reinforce this position
C) supportive; promote their involvement with other supporters
D) low priority; promote their involvement with supporters
E) None of the answers.

Question 49

Social capital,in regards to stakeholder relationships,is

A) Diagnosing the potential for cooperation that allows the organization to move beyond defensive and offensive strategies against a threat.
B) A technique of categorizing an organization's stakeholders by their influence according to two variables.
C) Any aspect of a corporation's organizational arrangements that creates value and facilitates the actions of stakeholders within and external to the corporation.
D) Networking between an organization and the stakeholders it influences to ensure a high interdependence.
E) None of the answers.

Question 50

Which of the following stakeholder types possesses two of the three attributes of power,legitimacy,and urgency?

A) Dormant
B) Discretionary
C) Demanding
D) Definitive
E) Dominant

Question 51

The types of latent stakeholders include all of following,except:

A) Dormant
B) Dangerous
C) Discretionary
D) Demanding
E) All are types of latent stakeholders.

Question 52

NMO Corporation has an exclusive contract with the supplier of a rare metal needed for the production of a specialized engineering process.The supplier,MTLs Inc.decides that it wants to receive more money for the material and refuses to ship.MTLs Inc.is applying a(n) _________ strategy.

A) withholding
B) usage
C) resource dependence
D) influence pathway
E) None of the answers.

Question 53

Stakeholder management includes all of the following,except:

A) Fragmentation among departments
B) Focus on managing relationships
C) Long-term goals
D) Idiosyncratic implementation
E) Buffering the organization.

Question 54

A proactive oil company holds a monthly town meeting to address the concerns of the community where the oil company has a drill site.At the town meeting the company shares their current events with the community and listens to their concerns.The oil company has discovered that many ideas are generated from these meetings and values the input.It has increased understanding,cooperation and coordination between the two groups as trust has been built.This is an example of

A) Matrix mapping
B) Stakeholder management capability
C) Influence pathway
D) Social capital
E) None of the answers.

Question 55

Future generations affected by the effects of an oil company drilling at an environmentally sensitive location are _________ stakeholders and are therefore _____.

A) dormant; latent
B) definitive; definitive
C) discretionary; definitive
D) discretionary; latent
E) dormant; definitive

Question 56

The diagnostic typology states that for a mixed blessing stakeholder,a(n) _________ strategy is recommended.

A) involve
B) collaborate
C) monitor
D) defend
E) threaten

Question 57

When there is interdependence between the corporation and the stakeholder,which strategy exists?

A) Usage/withholding
B) Direct/usage
C) Indirect/withholding
D) Firm power
E) Stakeholder power

Question 58

An oil company has just announced its intentions for a new drill site.Immediately,a known activists group mobilizes,barricades all access to the new drill site and directs media attention to the environmental concern.This group has a negative public image for getting involved in issues without due diligence in their research.This activist group would be considered a __________ stakeholder.

A) dangerous
B) demanding
C) dependent
D) discretionary
E) dominant

Question 59

The model of social capital and business value creation does not include:

A) Mutual trust
B) Goodwill
C) Adhering to personal norms
D) Growth and development
E) Operational efficiency

Question 60

Tammy is responsible for working with a stakeholder group that is considered by many to be the ideal stakeholder.She is working with __________ stakeholder(s),according to Savage's diagnostic typology.

A) Type 1
B) Type 2
C) Supportive
D) Types 1 and 2
E) Type 2 and supportive

Question 61

Low priority stakeholders are those who

A) Oppose a course of action and is unimportant to the organization.
B) Support a course of action and are relatively unimportant to the organization.
C) Oppose a course of action and are important to an organization.
D) Support a course of action and are important to the organization.

Question 62

According to a research report prepared for the Canadian Institute of Chartered Accountants,value is created through social capital obtained from stakeholder relationships.Discuss the three levels of organizational culture that explain how corporations orient themselves toward stakeholders.

Question 63

Benefits of social capital and business value creation include all of the following,except:

A) New ideas from external networks
B) Sharing of information
C) Work collaboration
D) Contributions to the community
E) Lessening of debts to unions

Question 64

Outline and describe the 6 steps involved in FOSTERing stakeholder relationships.

Question 65

Interpret the typology of influence strategies presented in Table 4.3 (Typology of Influence Strategies) of your textbook.

Question 66

Differentiate between stakeholder management and stakeholder collaboration.