Question 1

Which of the following statements is not true concerning secondary stakeholders?

Accepted Answer

Secondary stakeholders often do not have sufficient bargaining power to directly affect the corporation's activities, unlike primary stakeholders.

Question 2

Ethical responsibilities are voluntary obligations a corporation assumes.

Accepted Answer

Ethical responsibilities are not voluntary obligations, but rather expected and required actions of a corporation to act in a responsible and ethical manner.

Question 3

Explain the difference between Milton Friedman and Archie Carroll's approaches to the responsibilities of business.

Accepted Answer

The answer of Explain the difference between Milton Friedman and...

Question 4

Which of the following companies was cited by the text as an example of a company which does its best to consider its responsibilities to its primary and secondary stakeholders when making strategic decisions?

Accepted Answer

The text specifically cites Johnson & Johnson as an example of a company that considers its responsibilities to primary and secondary stakeholders.

Question 5

The first step in stakeholder analysis is to

Accepted Answer

The first step in stakeholder analysis is to identify primary stakeholders. This includes individuals or groups who are directly affected by the organization's decisions and actions, and who have a vested interest in its success or failure. Once the primary stakeholders have been identified, the next steps involve assessing their level of interest, influence, and power, as well as their potential impact on the organization.

Question 6

Stakeholders are all constituencies that affect and are affected by the achievement of the firm's objectives.

Accepted Answer

This is the definition of stakeholders.

Question 7

In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities?

Accepted Answer

In order for a business to be sustainable, it must satisfy all of Carroll's responsibilities, which include economic, legal, ethical, and discretionary responsibilities. These responsibilities are interconnected and must be fulfilled in order for a business to operate sustainably in the long term. Ignoring any one of these responsibilities can have negative consequences for the business and its stakeholders.

Question 8

The broader concept of sustainability is closely aligned with Carroll's view of social responsibility.

Accepted Answer

Carroll's view of social responsibility includes the economic, legal, ethical, and philanthropic responsibilities of a company, and sustainability is often considered a key aspect of a company's ethical responsibility to the environment and future generations.

Question 9

A study concerning social responsibility indicates that socially responsible firms are more likely to be welcomed into another country.

Accepted Answer

The study suggests that socially responsible firms are viewed positively and are more likely to be accepted by other countries.

Question 10

The difference between ethical and discretionary responsibilities is that few people expect an organization to fulfill ethical responsibilities.

Accepted Answer

The statement is incorrect. Ethical responsibilities are highly expected from an organization by both internal and external stakeholders, whereas discretionary responsibilities are not considered obligatory but rather voluntary actions that a company can take to contribute to social and environmental issues beyond legal and ethical requirements.

Question 11

An overarching strategy that explicitly communicates the firm's ethical relationship with its stakeholders is

Accepted Answer

The answer of An overarching strategy that explicitly communicates the...

Question 12

The first step in stakeholder analysis is identifying those who have only an indirect stake in the corporation.

Accepted Answer

The first step in stakeholder analysis is identifying those who have a direct stake in the corporation. This includes individuals and groups who are directly impacted by the corporation's activities, such as employees, customers, shareholders, and suppliers. Only after identifying these direct stakeholders, can the analysis move on to identifying those with an indirect stake, such as the wider community, government regulators, and environmental groups.

Question 13

The Dow Jones Sustainability Index includes

Accepted Answer

The Dow Jones Sustainability Index is a financial index that tracks companies with demonstrated adherence to sustainability practices in three areas: environmental, economic, and social sustainability. Therefore, choice C - environmental, economic, and social sustainability is the correct answer.

Question 14

Being known as a socially responsible firm may provide a company with social capital that can be used for competitive advantage.

Accepted Answer

Socially responsible actions can enhance a company's reputation and create positive relationships with stakeholders, such as customers, employees, and investors. This can result in increased loyalty, trust, and credibility, which can be leveraged as a competitive advantage.

Question 15

According to Carroll, legal responsibilities are defined by governments in laws that management is expected to obey.

Accepted Answer

Carroll defines legal responsibilities as those defined by laws and regulations set by governments.

Question 16

Target's efforts to offer brands from companies with ethical track records and community involvement help the retailer attract socially concerned younger consumers. This is an example of

Accepted Answer

The answer of Target's efforts to offer brands from companies...

Question 17

All of the following are considered primary stakeholders EXCEPT

Accepted Answer

Governments are usually considered a secondary stakeholder rather than a primary stakeholder. Primary stakeholders are those who are directly affected by the actions of the company, such as customers, employees, shareholders, and creditors.

Question 18

Discuss Crane and Matten's concept of sustainability with regard to Carroll's view of ethics.

Accepted Answer

The answer of Discuss Crane and Matten's concept of sustainability...

Question 19

In any one strategic decision, the interests of one stakeholder group seldom conflict with another.

Accepted Answer

In certain strategic decisions, the interests of one stakeholder group may conflict with another. It is important for companies to carefully consider the potential impacts of their decisions on all relevant stakeholders and attempt to find a mutually beneficial solution.

Question 20

All of the following are considered secondary stakeholders EXCEPT

Accepted Answer

Suppliers are considered primary stakeholders because they directly engage in transactions with the company, providing essential goods and services needed for the company's operations.

Quiz 3: Social Responsibility and Ethics in Strategic Management