Deck 3: Identifying Stakeholders and Issues

Question 1

The role of the board of directors is to determine the corporation's strategic direction,monitor and review performance,and hire and fire the top executives.

Answer 1

True

Question 2

Employees are often considered the most obvious and,sometimes,the most important stakeholder.

Answer 2

True

Question 3

A stakeholder is an individual,or group,who can influence and/or is influenced by the achievement of an organization's purpose.

Answer 3

True

Question 4

In a pluralistic society,one institution is completely independent of the others.

Question 5

Categorizing stakeholders into various groups,such as internal and external,is desirable because it helps managers strategize accommodations.

Question 6

The concept of a stakeholder has broadened in time to include individuals or groups other than owners,government and labour.

Question 7

Non-Governmental Organizations (NGOs) are those organizations,such as charities,run by the volunteer sector.

Question 8

Organizations must identify their stakeholders to obtain their resources and maintain their legitimacy.

Question 9

Every board of directors plays a substantial role in the organization and is considered insiders.

Question 10

When an organization is able to obtain a particular material from several suppliers they are not dependent on that supplier.

Question 11

Although customers are the source of revenue and should be treated carefully,corporations that are a monopoly do not need to focus on this stakeholder.

Question 12

It is the responsibility of the stakeholders to identify themselves to the organization.The organization does not need to identify stakeholders.

Question 13

Government may play several roles as a stakeholder,such as media and lender.

Question 14

Owners always have a lot of influence over an organization.

Question 15

Competitors include organizations that produce substitute products and therefore should be monitored.

Question 16

Corporations must understand how their activities influence stakeholders but not how stakeholders can influence their activities.

Question 17

Service,Fraternal,Cultural,and Ethnic Associations can provide business contacts through volunteerism.

Question 18

Lenders and Creditors are stakeholders that can be taken for granted because their influence is small as there are many lending institutions.

Question 19

Management consultants are not stakeholders because they are not employees of the company.

Question 20

Joint-venture participants can also be called Lenders.

Question 21

Different stakeholders have different sources and expressions of power.When one stakeholder becomes too powerful,another stakeholder may act to counterbalance and restrict this power.

Question 22

Identifying issues can be done in many ways,for example,environmental scanning,social forecasting and public issues scanning.

Question 23

The Board of Directors determines the corporation's social responsibility initiatives.

Question 24

Opponents to the stakeholder concept argue,in part,that considering broader social issues is not the mandate of a business in the capitalist system.

Question 25

An example of a crisis for management can be seen in the situation of XL Foods,operating in Brooks,Alberta,when it was discovered that
E.coli was present in beef, but the plant was allowed to continue to operate for about ten days after that discovery.

Question 26

The "social market" lacks a clear corporate purpose necessary to meet corporate objectives.

Question 27

The issues management process,while helpful,does not ensure that the most salient or critical issues are addressed.

Question 28

One of the main issues pertaining to the automotive industry in Canada is Green Manufacturing.

Question 29

An issue is a point in question where different views are held of what ought to be done by the corporation,based on stakeholder or management expectations.

Question 30

One of the main issues in the pharmaceutical industry today is unionization.

Question 31

In order for the successful implementation of issues management there must be support from top management and broad participation at the staff levels.

Question 32

Once an issue has progressed through the issue life cycle to the decline stage,it is considered to be resolved.

Question 33

It is the responsibility of the board of directors,not the manager,to determine how to respond to stakeholders' power and pressures.

Question 34

Ideally,the issues management approach should be implemented quickly with a forceful,concentrated effort by senior level management leading the way.

Question 35

Early identification of an emerging issue that deals with conflicting value and interest is important.

Question 36

Derivative stakeholders are those from whom the corporation has not accepted benefits,but they hold power over the corporation and may exert either a beneficial or harmful influence.

Question 37

One of the main issues in the banking industry today is executive compensation.

Question 38

There is a tremendous amount of opposition to the stakeholder concept.

Question 39

One of the issues which resulted from the
E.coli crisis at XL Foods was that the cattle industry was concerned about their future as consumers may purchase less beef, and that there may be damage to international markets.

Question 40

Issues management refers not to social change,but to a process by which the organization responds to economic,social,and environmental issues.

Question 41

Cathy drinks a lot of coffee to help her stay awake during midterms.She,however,will only purchase coffee that is produced under conditions that guarantee good working conditions for the labourers and respect for human rights and environmental protection.Cathy is a consumer of ______.

A) Whole Foods Market
B) Fairtrade products
C) Product Red brand
D) Boycotted products
E) The Government

Question 42

In terms of categorizing stakeholders,primary interaction occurs with all of the following,except:

A) Unions
B) Creditors
C) Media
D) Suppliers
E) Owners

Question 43

Government in Canada is very influential over corporate decision-making.ABC Corporation is negotiating with aboriginal groups regarding forestry practices in their region and the government is facilitating the process.Influence and power,in this case,is not held by any one institution and is dispersed.This example reflects the operation of a(n) __________ society.

A) pluralist
B) stakeholder
C) issues-oriented
D) business-oriented
E) collective

Question 44

When a news report came out in Saskatchewan that the beef supplier for Burgers R Us was not implementing hygienic practices,which of the following stakeholders may not have influenced Burgers R Us to change its approach to purchasing meat?

A) The Current Supplier
B) The Owners, Lenders, and Creditors
C) The Customers and the General Public
D) The Media
E) The Government

Question 45

In determining where to locate a factory,BCS Corporation develops a list of stakeholders.Francois encourages the management to locate in a community with high unemployment because it will help a community become more economically stable.Mark states that it is important to consider whether the company will be able to arrange for raw materials to be shipped to the factory for production.Sarah notes that by relocating the firm should consider the environmental group,STOP,that used to picket the company,even though it hasn't been heard from for years.Which stakeholders should the company not necessarily consider in their decision?

A) The environmental group, STOP
B) Community in which they may locate
C) Suppliers
D) Media
E) Government

Question 46

Derivative stakeholders are all of the following,except:

A) may exert harmful influences
B) are those from whom the corporation has not accepted benefits
C) are those to whom the organization has no obligation
D) are typically financers
E) have power over the corporation

Question 47

Which of the following statements regarding employees as stakeholders is NOT true?

A) Employees are individuals who work for the corporation.
B) Managers are considered employees.
C) Part time employment is becoming a more common strategy to hiring employees.
D) Employees are considered one of the more obvious and, perhaps, most important stakeholders.
E) All primary stakeholders can be considered employees.

Question 48

Examples of primary stakeholders include all of the following,except:

A) Creditors
B) Customers
C) Communities
D) Competitors
E) Unions

Question 49

The acute crisis stage is the point at which the situation resolves itself.

Question 50

Secondary interactions do not include:

A) government
B) the general public
C) local communities
D) business support groups
E) investors

Question 51

Frank thinks that it is inappropriate for his company,BSD Corporation,to spend valuable company time and resources on meeting with stakeholder groups.He,and others who oppose stakeholder involvement,identify the following rationale(s):

A) Managing so many stakeholders diverts management's attention away from the business.
B) Responding to stakeholders' interest does not produce loyalty.
C) Corporations are not designed to benefit shareholders.
D) It is necessary for business success.
E) There is an agreement on priorities.

Question 52

ABC Corporation is a forestry company that is attempting to develop more sustainable approaches to forestry in order to preserve the land for use by future generations.They receive considerable support from mainstream environmental groups.Eco-terrorists,who will sabotage trees in such a way as to injure the forestry worker who is cutting the tree,do not believe that ABC Corporation is doing enough.Which of the following stakeholders should ABC consider in its decisions about forestry?

A) Employees
B) Mainstream environmental groups
C) Eco-terrorism environmental groups
D) Media
E) All stakeholders should potentially be considered.

Question 53

Norman Augustine formulated an alternative to Fink's anatomy using only three stages: avoidance,preparation,and resolution.

Question 54

Samuel has been asked by the manager of his department to compile a list of all the stakeholders relevant to the industry so that they can ensure that in the future all stakeholder interests are appropriately considered.Samuel spends the entire weekend on the task,but it looks like he will never finish the task.Which of the following is not a reason why Samuel is having difficulty?

A) You cannot list all the stakeholders.
B) Stakeholders influence shifts over time.
C) New stakeholders emerge all the time.
D) Their involvement varies between corporations.
E) He is not on the best position to do the task.

Question 55

Janet is on the board of directors for SPT Corporation.Which of the following assumptions about Janet's involvement with SPT Corporation is not correct?

A) Janet was elected by the shareholders to this role.
B) Janet is not a shareholder of SPT Corporation.
C) In her role as a board member, Janet is responsible for the functioning of SPT Corporation.
D) Janet is a competitor of SPT Corporation.
E) Janet's position on the board is not permanent.

Question 56

In Fink's "Anatomy of a Crisis" it is argued that the outcome is not necessarily always negative,and that positive outcomes may result from a crisis.

Question 57

There is opposition to the stakeholder concept for all of the following reasons,except:

A) They are difficult to categorize
B) Each of them have different expectations
C) Stakeholders often have contrary objectives
D) Practicality of shared governance
E) Dilution of top management focus

Question 58

The manager is a unique stakeholder because she or he _____.

A) can affect the organization
B) can be a manager and shareholder
C) is affected by the organization
D) deals with the other stakeholders
E) cannot be an employee

Question 59

The government of Canada recently sold off its remaining shares in Petro Canada.The government,in regards to this decision,is considered which type of stakeholder?

A) Government
B) Director
C) Owner
D) Consumer
E) All of the answers are accurate.

Question 60

Normative stakeholders include all of the following,except:

A) financers
B) employees
C) consumers
D) suppliers
E) competitors

Question 61

Who is the author of "Anatomy of a Crisis"?

A) Adam Augustine
B) Johnathan Berstein
C) Adam Smith
D) Steven Fink
E) Norman Augustine

Question 62

Advocates of the stakeholder concept:

A) argue that an appreciation for stakeholders is fundamental to understanding how to make money.
B) believe that responding to stakeholders is simply good business.
C) feel it is necessary to not only recognize the interests of all stakeholders but also to promote the loyalty of other individuals and groups.
D) believe that shareholders are a principal stakeholder.
E) All of the above are true.

Question 63

Outline the benefits to practicing issues management.

Question 64

List the six steps of the typical issues management process.

Question 65

Following a media report highlighting a lack of hygienic meat handling practices by its suppliers,Burgers R Us realized they should have been engaged in _____________,a process to respond to the economic,social,and environmental problems that they might face in the future.

A) stakeholder management
B) issues management
C) environmental management
D) media control
E) strategy

Question 66

The benefits of issues management include all of the following,except:

A) Reduces the firm's competitive advantage
B) Corporate behaviour is more consistent with societal expectations
C) Enables corporations to identify issues earlier
D) Corporation's vulnerability is decreased
E) Corporation's credibility is enhanced

Question 67

Describe the acute crisis stage of the Anatomy of a Crisis.

Question 68

A furniture store has just discovered that the lumber used to make its furniture is from an ancient forest.Later that week they received a letter from an environmental group stating that all furniture stores using lumber from ancient forests are receiving this letter as a warning to find alternate sources for their lumber or the store will be picketed.This furniture store is in what stage of the issue life cycle?

A) Peak
B) Prominent
C) Growth
D) Increasing
E) Awareness

Question 69

When the available choices to the corporation are identified and evaluated they are in which step of the issues management process?

A) Identification of issues
B) Analysis of issues
C) Ranking or prioritizing of issues
D) Formulating issue response
E) Monitoring and evaluating issue response

Question 70

The purposes of issues management include all of the following,except:

A) It is more systematic in dealing with concerns.
B) It serves as an early warning system.
C) It provides a framework for assessment.
D) It provides a mechanism for coordination.
E) It can prepare managers for most issues that can arise.

Question 71

All of the following are main issues in the banking industry,except:

A) executive compensation
B) government regulation
C) issues management
D) service charges
E) credit card charges

Question 72

Sable is excited about her new job.As marketing manager for NMO Corporation,she is hoping to help the company adopt more environmentally friendly packaging.She brings up the issue with the management team,who state that they had never given the issue much thought.NMO Corporation is at what stage in the issue life cycle?

A) None or little
B) Increasing
C) Prominent
D) Peak
E) Declining

Question 73

The four stages proposed in the Anatomy of a Crisis are:

A) Prodromal, acute, chronic, and resolution
B) Pre-crisis, mid-crisis, post-crisis, and peak-crisis
C) Prodromal, peak, acute, and continuous
D) Pre-acute, acute, pre-chronic, and chronic
E) Prodromal, resolved, crisis, and peak

Question 74

What are the six stages of crisis management as formulated by Norman Augustine?

Question 75

An alternative to the Anatomy of a Crisis,called the Six Stages of Crisis Management,was developed by:

A) Adam Augustine
B) Johnathan Berstein
C) Adam Smith
D) Steven Fink
E) Norman Augustine

Question 76

TMB Corporation has chosen to engage stakeholders in the decisions regarding plant expansion.The company has identified that stakeholders are concerned about many issues,so a team of employees spoke to multiple stakeholders to clarify the concerns.They determined which issues were most important to the stakeholders and a specific plan was formulated to act on the key issue.Once the specific plan is put into action from the available choices,the corporation is in the _____________ step of the issues management process.

A) identification of issues
B) ranking or prioritizing of issues
C) formulating issue response
D) implementing issue response
E) monitoring and evaluating issue response

Question 77

Jack recently purchased a small furniture store that specializes in handmade,high quality products.The company,when he purchased it,relied almost exclusively on wood from old growth forests.He temporarily closes the business until a supplier of sustainable wood products can be found.The company is at what stage of the issue life cycle?

A) Peak
B) Prominent
C) Growth
D) Increasing
E) Awareness

Question 78

In which stage of the Anatomy of a Crisis does the corporation receive some warning,however subtle,that a crisis is lurking?

A) Prodromal
B) Peak
C) Chronic
D) Pre-chronic
E) Resolution

Question 79

The issue life cycle outlines stages through which an issue progresses.Those stages are:

A) Introduction, growth, maturity, and decline
B) Awareness, growth, prominent, threatening, and decline
C) None or little, increasing, prominent, peak, and declining
D) None or little, awareness, increasing, prominent, peak, and declining
E) Introduction, growth, maturity, decline, and resolution

Question 80

When an organization is in the process of describing and evaluating an issue so that consensus is achieved among managers it is in which step of the issues management process?

A) Identification of issues
B) Analysis of issues
C) Ranking or prioritizing of issues
D) Formulating issue response
E) Implementing issue response