Question 1

Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility, which is the

Accepted Answer

Social responsibility is the expectation that businesses or individuals will strive to improve the overall welfare of society. From the perspective of a business, this means that managers must take active steps to make society better by virtue of the business being in existence.

Question 2

There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that

Accepted Answer

In the zero-sum view, the role of management is to look upon the various stakeholders as competing for the resources of the organization. In essence, the gain of one individual or group is the loss of another individual or group.

Question 3

While working to prioritize and fulfill their responsibilities, members of the board of directors of an organization should

Accepted Answer

The board of directors (BOD) consists of the elected representatives of the shareholders charged with ensuring that the interests and motives of management are aligned with those of the owners (i.e., shareholders).

Question 4

Supplier stakeholders are concerned with

Accepted Answer

Supplier stakeholders are concerned with on-time payment and assurance of a continued relationship with the firm.

Question 5

Demands for greater corporate responsibility have accelerated today. They focus on issues such as

Accepted Answer

Today, demands for greater corporate responsibility have accelerated. These include corporate critics, social investors, activists, and, increasingly, customers who claim to assess corporate responsibility when making purchasing decisions. Such demands go well beyond product and service quality. They include a focus on issues such as labor standards, environmental sustainability, financial and accounting reporting, procurement, and environmental practices.

Question 6

Stakeholders are

Accepted Answer

A stakeholder can be defined as an individual or group that is inside or outside the company and has a stake in and can influence organizational performance. Each stakeholder group makes various claims on the company.

Question 7

Members of boards of directors are

Accepted Answer

The board of directors (BOD) consists of the elected representatives of the shareholders charged with ensuring that the interests and motives of management are aligned with those of the owners (i.e., shareholders).

Question 8

Procter and Gamble has perfected a technique for compacting cleaning powder into a liquid concentration. Consumers, retailers, shipping and wholesalers, and environmentalists all have benefited from the resulting change in consumer shopping habits and the revolution in industry supply-chain economics. According to the text, this is an example of

Accepted Answer

Organizations can achieve mutual benefit through stakeholder symbiosis, which recognizes that stakeholders are dependent upon each other for their success and well-being.

Question 9

According to the Corporate Citizenship poll conducted by Cone Communications, most Americans say they would be likely to switch brands to one associated with a good cause, if there are similarities between

Accepted Answer

A Corporate Citizenship poll conducted by Cone Communications found that 84 percent of Americans say they would be likely to switch brands to one associated with a good cause, if price and quality are similar.

Question 10

The Clorox Green Works line of plant-based cleaning materials captured 42 percent of the natural cleaning products market in its first year. This is an example of the benefit of

Accepted Answer

In days past, many sustainability efforts would have been the result of government prodding or public pressure, or would have been undertaken for PR purposes. Some well-known firms have benefited financially from such initiatives.

Question 11

A key stakeholder group that is particularly susceptible to corporate social responsibility (CSR) initiatives is

Accepted Answer

A key stakeholder group that appears to be particularly susceptible to corporate social responsibility (CSR) initiatives is customers. Surveys indicate a strong positive relationship between CSR behaviors and consumer reaction to products and services of a firm.

Question 12

An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that

Accepted Answer

Stakeholder management is the strategy of the firm for recognizing and responding to the interests of all its salient stakeholders.

Question 13

According to a CEO survey by Accenture, __________________ are not mutually exclusive corporate goals.

Accepted Answer

A CEO survey on sustainability by Accenture debunks the notion that sustainability and profitability are mutually exclusive corporate goals. The study found that sustainability is being increasingly recognized as a source of cost efficiencies and revenue growth.

Question 14

According to the text, the triple bottom line approach to corporate accounting includes which three components?

Accepted Answer

Many companies are now measuring what has been called a triple bottom line. This involves assessing financial, social, and environmental performance.

Question 15

Employee stakeholders are concerned with

Accepted Answer

Employees as a stakeholder group are concerned with wages, benefits, safe working environment, and job security.

Question 16

Managers should do more than focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that

Accepted Answer

Organizations can achieve mutual benefit through stakeholder symbiosis, which recognizes that stakeholders are dependent upon each other for their success and well-being.

Question 17

Wall Street executives have received excessive bonus pay in the past. This concerns which of the following stakeholder groups most directly?

Accepted Answer

For example, JPMorgan CEO Jamie Dimon was the highest-paid banker with $23.1 million in compensation, an 11 percent increase from the previous year. The shareholders of the firm did not do as well, because the stock fell 20 percent.

Question 18

Stockholders as a stakeholder group are interested primarily by

Accepted Answer

Stockholders are interested in dividends and capital appreciation.

Question 19

The Sustainable Apparel Coalition accounts for more than one-third of the global

Accepted Answer

The SAC now has approximately 145 members, representing brands, retailers, suppliers, and other organizations that together account for more than one-third of the global apparel and footwear industry.

Question 20

Community stakeholders are concerned primarily with

Accepted Answer

Community stakeholders are concerned with good citizenship behavior such as charities, employment, and not polluting the environment.

Quiz 1: Strategic Management: Creating Competitive Advantages