Question 1

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

Accepted Answer

Stakeholders can change over time due to various factors such as changes in business operations and market conditions. It is important for firms to regularly reassess and update their list of stakeholders to ensure effective stakeholder management.

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.

Accepted Answer

This statement is not accurate. The stakeholder environment is still dynamic and constantly evolving, with various challenges and opportunities emerging. It is not calmed down yet.

Question 3

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

Accepted Answer

This is true. In order to understand what stakes are held by stakeholders, managers must first identify who the stakeholders are.

Question 4

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

Accepted Answer

Some authors indeed argue that stakeholder inclusion is essential for corporate success as it leads to better decision-making, increased trust, and improved overall performance.

Question 5

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

Accepted Answer

The stakeholder management approach involves identifying and engaging with a wide range of stakeholders, each with different needs and expectations. This can be complex and time consuming, which is a major criticism of the approach. However, proponents argue that the benefits of effective stakeholder management outweigh the costs.

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.

Accepted Answer

The primary element in the concept of the stakeholder corporation is that the firm should consider the interests of all stakeholders, such as customers, employees, suppliers, and local communities, in addition to shareholders. However, the concept does not necessarily advocate for granting ownership positions based on stakeholders' 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.

Accepted Answer

A stakeholder does not need to hold all three attributes (power, legitimacy, and urgency) simultaneously to get a corporation to respond to its demands. Having one or a combination of these attributes can influence the corporation's response.

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.

Accepted Answer

The textbook states that stakeholder challenges are given more attention because they pose a risk to the firm, while stakeholder opportunities may be overlooked because they do not necessarily require immediate action or response.

Question 9

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

Accepted Answer

The answer of The descriptive value of the stakeholder model...

Question 10

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

Accepted Answer

The stakeholder model is normative in nature because it provides guidelines on how stakeholders should be treated and what their respective roles and responsibilities are in an organization. It is not just descriptive but also prescriptive in nature, highlighting ethical considerations and values such as fairness, accountability, and transparency.

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.

Accepted Answer

As stakeholders such as employees, customers, and communities became more vocal about their expectations and influence on the company, businesses have had to adapt and become more complex in order to address multiple interests and concerns.

Question 12

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

Accepted Answer

The stakeholder approach is centered on involving and considering the interests and concerns of various stakeholders in decision-making processes, including social, economic, and environmental concerns. This approach recognizes that sustainable development can only be achieved through collaboration and engagement with all stakeholders, including communities, businesses, and non-governmental organizations. It emphasizes the need for responsible and ethical behavior towards all stakeholders, not just shareholders, in order to achieve long-term sustainable development.

Question 13

The stakeholder view of the firm is now universally accepted.

Accepted Answer

The stakeholder view, which considers the interests of all stakeholders in a company's operations, is widely recognized but not universally accepted. Some still prioritize the shareholder view, focusing primarily on maximizing shareholder value.

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.

Accepted Answer

The instrumental value of the stakeholder model suggests that by effectively managing stakeholders, a business can improve its financial performance and achieve traditional business goals, such as profits and growth. Therefore, the assumption underlying this model is that stakeholder management is instrumental in achieving these outcomes.

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.

Accepted Answer

The stakeholder view recognizes that various groups who may perceive themselves to have a stake in the firm, such as employees, customers, suppliers, and community members, should be considered as stakeholders, regardless of whether or not managers agree with their claims. This is a key distinction from the managerial view which primarily prioritizes the interests of shareholders and emphasizes maximizing profits for them.

Question 16

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

Accepted Answer

The transactional level of stakeholder management capability focuses on engaging in transactions with stakeholders that are beneficial to both parties, rather than competing based on 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.

Accepted Answer

The modern view of a corporation includes broader responsibilities, such as social and environmental considerations, beyond just providing profit.

Question 18

The key to effective stakeholder management is in its implementation.

Accepted Answer

Effective stakeholder management requires a proactive approach to identifying and engaging stakeholders, developing strategies for engagement, monitoring progress, and adjusting strategies as needed. Implementation is crucial to ensure that these activities are carried out effectively and achieve the desired results.

Question 19

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

Accepted Answer

Using generic groups like customers, employees, shareholders, and suppliers may not be sufficient to fully identify all of the specific stakeholders who can significantly affect or be affected by a business. It is important to conduct stakeholder analysis to identify and prioritize the specific individuals, groups, or organizations that are most relevant to the business and its objectives.

Question 20

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

Accepted Answer

The primary strategy for a manager relative to a marginal stakeholder is to monitor that group to maintain a minimum level of engagement and awareness of their needs and concerns. This helps to mitigate any potential negative impact they may have on the organization's operations or reputation.

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