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

Question 1

In general, stakeholder groups have to be relatively satisfied in order for a firm to accomplish its objectives.

Answer 1

True

Question 2

A generic stakeholder group is usually a specific special-interest group.

Answer 2

False

Question 3

Of the production, managerial, and stakeholder views of the firm, the production view recognizes the fewest stakeholder groups.

Answer 3

True

Question 4

Secondary stakeholders cannot affect a corporation.

Question 5

Only people or groups who have contributed money to a corporation have a legitimate stake in that business.

Question 6

Secondary stakeholders do not have a formal, official, or contractual relationship with a firm.

Question 7

A stake can be a legal share of ownership.

Question 8

Under stakeholder management, stakeholders' expectations should be viewed as a challenge or opportunity rather than a burden.

Question 9

The stakeholder groups of a firm are constant and static.

Question 10

Stakeholders can be affected by business, and they can also affect business.

Question 11

As societal problems arise for a business, its number of stakeholder groups inevitably rises.

Question 12

Under stakeholder management, stakeholders, not managers, of a firm have the responsibility for establishing the firm's overall direction.

Question 13

Although the stakeholder view of the firm is believed to be superior to the production and managerial views in modern business, not all managers hold this view.

Question 14

The stakeholder that is low on potential for threat and high on potential for cooperation is classified "supportive."

Question 15

Stakeholder management capability (SMC) may occur on three levels -- rational, process, and transactional.

Question 16

Although many stakeholders may hold little power over a firm individually, they can exert significant power if they organize their power.

Question 17

A stake could be a moral right as well as a legal right to expect certain corporate behavior.

Question 18

If stakeholder groups have legitimate claims but hold no power with the management of a firm, the firm need not consider being responsive to these claims.

Question 19

The multifiduciary view of stakeholders views stakeholders as primarily factors to be taken into consideration and managed while the firm is pursuing profits for the shareholders.

Question 20

Donaldson and Preston's three aspects or values of the stakeholder model of the firm are core, strategic and environmental.

Question 21

Which of the following is considered a secondary social stakeholder?

A) local communities
B) government and regulators
C) customers
D) shareholders

Question 22

Which of the following is not one of the five key questions that aids managers in stakeholder management?

A) What are the stakeholder's stakes?
B) What challenges/opportunities do the stakeholders pose?
C) What strategies/actions should we take with respect to our stakeholders?
D) What responsibilities do the stakeholders have?

Question 23

The multifiduciary view of stakeholders

A) view stakeholders primarily as people who can wield economic or legal power.
B) holds that management has the same kind of responsibility to stakeholders as to shareholders.
C) is also known as the "strategic" approach.
D) sees stakeholders as instruments that may facilitate or impede.
E) the firm's pursuit of its strategic objectives.

Question 24

A stakeholder map

A) show directions to stakeholders' homes or places of business.
B) shows primary but not secondary stakeholders.
C) helps identify the stakeholders that a firm has.
D) provides a method to analyze stakeholder power.

Question 25

"I am a preferred stockholder in this company, and I expect the company to distribute dividends to me." Which of the following combinations describes the type of stakeholder and type of responsibility in this statement?

A) community/economic
B) owner/economic
C) community/legal
D) owner/ethical

Question 26

In taking actions to fulfill a firm's responsibilities to its stakeholder groups, a firm usually chooses from among one of the following approaches except

A) direct/indirect.
B) accommodate, negotiate, manipulate, and resist.
C) offensive/defensive.
D) specific/general.

Question 27

Private citizens, institutional groups, and board members are included which stakeholder view of the firm?

A) political environment
B) social environment
C) technological environment
D) economic environment

Question 28

Which of the following is not considered a major group of stakeholders?

A) employees
B) stockholders
C) media
D) customers

Question 29

Which of the following is not included as a part of the process of identifying the stakes of a firm's stakeholders?

A) identifying the responsibilities a firm has to its stakeholders
B) identifying the nature/legitimacy of a group's stakes
C) identifying the power of a group's stakes
D) identifying specific groups within a generic group

Question 30

A stakeholder is

A) almost always a stockholder also.
B) an individual or group that asserts to have an economic interest in a firm.
C) an individual or group that asserts to have one or more stakes in a firm.
D) always an individual as opposed to a group.

Question 31

A stakeholder may be thought of as any individual or group who can affect or is affected by the ___________ of an organization.

A) actions
B) decisions
C) policies
D) all of the above

Question 32

Viewing stakeholders as more than just individuals or groups who can wield economic or legal power is

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

Question 33

The major responsibility that was questioned in the Nestlé case of selling infant formula in Third World countries was which of the following types?

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

Question 34

The managerial view of the firm generally does not include which of the following stakeholder groups?

A) customers
B) social activist groups
C) employees
D) suppliers

Question 35

Women, minorities, and handicapped people are specific subsets of which of the following generic stakeholder groups?

A) community
B) employees
C) competitors
D) government

Question 36

Environmental groups, consumer activist groups, and the media are usually

A) owners of a firm.
B) unimportant to a firm.
C) primary stakeholders of a firm.
D) secondary stakeholders of a firm.

Question 37

Core stakeholders are

A) all of the stakeholders in an organization's environment.
B) exactly the same group as strategic stakeholders.
C) those which adopt a stakeholder synthesis view of their role.
D) a specific subset of strategic stakeholders that are essential for the survival of the organization.

Question 38

Which of the following is a restatement of the challenges of stakeholder management?

A) to achieve the objectives of the primary stakeholders within the context of satisfying other stakeholders.
B) a zero-sum game
C) to achieve a change in the attitude of stakeholders by bringing their desires and expectations more in line with what is most profitable for the company
D) to try to win over stakeholder support from competing firms.

Question 39

Which of the following is not true of a stake?

A) It is a right.
B) It is a claim.
C) It is a guaranteed job.
D) It is an interest.

Question 40

__________ refers to the perceived validity or appropriateness of a stakeholders claim to a stake.

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

Question 41

Which of the following is not one of the four stakeholder types developed?

A) supportive stakeholders
B) marginal stakeholders
C) reactive stakeholders
D) mixed blessing stakeholders

Question 42

Using two dimensions, four stakeholder types and resultant strategies are developed. What are the two dimensions along which the stakeholder types are categorized?

A) supportive, non-supportive
B) potential for profit, potential for loss
C) legitimacy, power
D) potential for support, potential for threat

Question 43

A stakeholder who is high on potential for threat but low on potential for cooperation is considered a stakeholder

A) type 1.
B) type 2.
C) type 3.
D) type 4.

Question 44

Donaldson and Preston articulate three aspects or values of the stakeholder model of the firm. Which of the below is not one of these three?

A) descriptive
B) normative
C) synthetic
D) instrumental

Question 45

Which of the following is not one of the three values of the stakeholder model?

A) descriptive
B) marginal
C) instrumental
D) normative

Question 46

In this highest level of stakeholder management capability, management must take the initiative in meeting stakeholders face to face.

A) zenith level
B) process level
C) transactional level
D) rational level

Question 47

Which of the following pairs of characteristics of stakeholder groups are deemed important in the stage of identifying stakeholders' stakes?

A) membership age and race
B) nature/legitimacy and power
C) office location and region of the country
D) group size and political affiliation

Question 48

At which level does an organization actually develop and implement organizational processes (approaches, procedures, policies, practices) by which the firm may scan the environment and receive relevant information about stakeholders, which is then used for decision-making purposes.

A) the rational level
B) the process level
C) the transactional level
D) the implementation level

Question 49

The primary distinction between the production view of the firm and the managerial view is the additional consideration in the managerial view of

A) owners and employees.
B) the environment.
C) suppliers and customers.
D) primary versus secondary stakeholders.

Question 50

A stakeholder who is high on potential for cooperation and low on potential for threat is considered a stakeholder

A) type 1.
B) type 2.
C) type 3.
D) type 4.