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 reasons such as changes in the organization's strategies or external factors that impact the stakeholders' interests. Therefore, it is important for firms to continuously monitor and update their stakeholder analysis.

Question 2

The key to effective stakeholder management is in its implementation.

Accepted Answer

While having a well-designed stakeholder management plan is important, it is the actual implementation and execution of the plan that determines its effectiveness. Without proper implementation, the plan is just a set of ideas and does not have any real impact or value. Therefore, the key to effective stakeholder management is in its implementation.

Question 3

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

Accepted Answer

Some authors believe that by including stakeholders in decision-making processes, corporations can achieve long-term success and gain a competitive advantage. This approach fosters trust, promotes collaboration and ensures that the interests of all stakeholders are considered, leading to sustainable growth and profitability.

Question 4

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

Accepted Answer

The stakeholder model not only describes how businesses interact with stakeholders, but also provides guidance on how businesses should prioritize their competing interests and responsibilities. Thus, it has normative value.

Question 5

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 stakeholders should be considered and involved in decision-making processes, but it does not necessarily mean granting them ownership positions in the firm.

Question 6

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

This statement accurately describes the difference between the managerial view and the stakeholder view of the firm. The managerial view typically only considers the interests of shareholders, while the stakeholder view recognizes a broader range of stakeholders who may have legitimate claims on the firm's resources and decisions. This may include employees, customers, suppliers, local communities, and even environmental groups, among others. The stakeholder view holds that these groups should be properly included in decision-making processes, even if managers may not agree with their perspectives.

Question 7

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 8

The corporation is currently viewed as having a specialized purpose of providing a profit through the provision of goods and services.

Accepted Answer

The answer of The corporation is currently viewed as having...

Question 9

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

Accepted Answer

The stakeholder approach involves taking into account the needs and interests of all parties who are affected by or can affect the organization's operations, including employees, customers, shareholders, suppliers, and the community. This approach recognizes that sustainable development cannot be achieved without the collaboration and cooperation of all stakeholders. It also promotes transparency, accountability, and ethical decision-making, which are essential for building trust and long-term relationships with stakeholders. Therefore, the stakeholder approach offers the best opportunity for sustainable development to become a reality.

Question 10

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 11

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

Accepted Answer

The use of generic groups is a good starting point for identifying stakeholders, but it is important for businesses to also conduct specific stakeholder analyses to gain a deeper understanding of their unique needs and interests. This can help businesses prioritize stakeholders and develop strategies to effectively engage with them.

Question 12

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

Accepted Answer

Before identifying the stakes held, it is important to identify who the stakeholders are in the firm.

Question 13

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 prioritizing stakeholders, understanding their needs and expectations, and developing strategies to engage and communicate with them. This process can be time-consuming and require significant resources, which some critics argue is overly complex.

Question 14

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 15

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 inaccurate as the stakeholder environment continues to be complex and dynamic, with changes such as globalization and technological advancements constantly affecting businesses and their stakeholders. The stakeholder model's popularity is instead driven by a growing awareness of the interconnectedness of all stakeholders and the need for ethical and sustainable business practices.

Question 16

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

With the evolution of society and the recognition of the rights of stakeholders, businesses are now recognized as entities that have responsibilities towards their employees, customers, communities, and the environment, not just towards their owners. This has led to a more complex business model that takes into account these various interests and balances them for the long-term success of the business.

Question 17

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 means that stakeholders are considered valuable because addressing their needs and concerns can lead to achieving traditional business goals such as profits and growth. Therefore, the assumption underlying this model is that effective stakeholder management should lead to the achievement of these goals.

Question 18

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

Stakeholder challenges pose a threat to the firm's reputation, financial stability, and overall success, so they are typically viewed as more urgent than stakeholder opportunities, which may present potential benefits but do not carry the same level of risk. However, it is important for firms to consider both challenges and opportunities when managing relationships with stakeholders.

Question 19

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

Accepted Answer

The statement is true. Marginal stakeholders are those who have low levels of interest and low levels of power in a company. As a result, they are not likely to have a significant impact on the company, but they should still be monitored in case their level of power or interest changes. The manager's primary strategy to deal with marginal stakeholders would be to monitor and maintain communication, as opposed to devote significant resources to them.

Question 20

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...

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