Question 1

For stakeholder engagement to occur,both the business and the stakeholder must be motivated to work with one another to solve the problem.

Accepted Answer

Both parties must be willing to collaborate and work towards finding a solution. If either the business or stakeholder is not motivated to engage or cooperate, effective stakeholder engagement may not occur.

Question 2

Because the public issues that garner the most public attention change over time,companies do not waste time tracking them.

Accepted Answer

Companies do track public issues that garner the most public attention as such issues can have a direct or indirect impact on their operations and reputation. Therefore, monitoring and responding to such issues is an essential part of their risk management and stakeholder engagement strategies.

Question 3

Customer environmental intelligence includes:
A) Demographic factors.
B) An analysis of the firm's competitors.
C) New technological applications.
D) The cost of producing consumer goods.

Accepted Answer

Customer environmental intelligence refers to understanding the demographic, social, and cultural factors that may influence consumer behavior. This includes factors like age, income, education, and lifestyle choices.

Question 4

Dialogue between a single firm and its stakeholders is always sufficient to address an issue effectively.

Accepted Answer

Dialogue between a single firm and its stakeholders may not be sufficient to address an issue effectively as there may be other parties involved who have a stake in the issue. It is important to involve all relevant stakeholders to ensure a comprehensive solution is reached.

Question 5

Financially sound companies do not need to understand how a public issue is likely to evolve,or how it will affect them.

Accepted Answer

Financially sound companies still need to understand how a public issue is likely to evolve and how it may affect them. Even if they have strong financial resources, an issue may still impact their reputation, market share, or regulatory compliance. Therefore, understanding and managing potential risks is crucial for any company, regardless of financial strength.

Question 6

Environmental analysis is a method managers use to gather information about external issues and trends.

Accepted Answer

Environmental analysis is indeed a method used by managers to gather information about external issues and trends affecting their organization. This helps them make informed decisions and stay ahead of competitors.

Question 7

Competitive intelligence enables managers in companies of all sizes to make informed decisions in all areas of the business.

Accepted Answer

Competitive intelligence provides managers with relevant information about their industry, customers, competitors, and suppliers. This information can be used to make informed decisions about marketing, product development, pricing, and other areas of the business. Therefore, competitive intelligence is essential for any business looking to stay competitive in today's fast-paced business environment.

Question 8

In the issue management process,identifying the issue involves anticipating emerging issues.

Accepted Answer

Identifying the issue includes the process of anticipating emerging issues. This involves identifying any potential problems, concerns or risks that may arise in the future and taking proactive steps to address them before they escalate into major issues. This helps to ensure that issues are identified early and appropriate action is taken to prevent or mitigate their impact.

Question 9

The emergence of a public issue indicates that:
A) A gap has developed between what stakeholders expect and what an organization is actually doing.
B) Technology is forcing ethics and business strategy closer together.
C) Consumers are unaware of how an organization's actions affect them.
D) All of the above.

Accepted Answer

The emergence of a public issue typically occurs when there is a disconnect between what stakeholders expect from an organization and what that organization is actually doing. This can result in public concern, media attention, and calls for action or accountability. The other options, while potentially related to public issues, do not fully capture what triggers their emergence.

Question 10

Stakeholder materiality is a method companies use to prioritize the relevance of the stakeholders and their issues.

Accepted Answer

This statement is true. Stakeholder materiality is a process where companies evaluate and prioritize stakeholder groups and their concerns to determine which are most significant or material to the company's operations and stakeholders. This helps the company allocate resources efficiently and effectively, ensuring they focus on the issues that matter most to their stakeholders.

Question 11

Environmental intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations.

Accepted Answer

Environmental intelligence refers to gathering information by analyzing the different environments that impact an organization, including economic, political/legal, technological, and social/cultural factors. This information helps organizations make informed decisions and adapt to changing environmental conditions.

Question 12

Public issues are also sometimes referred to as:
A) Social issues.
B) Sociopolitical issues.
C) Both A and B.
D) None of the above.

Accepted Answer

Public issues are issues that affect the society as a whole and have social and political implications. Therefore, they can be referred to as social issues as well as sociopolitical issues.

Question 13

A public issue exists when there is agreement between the stakeholders' expectations of what a business firm should do and the actual performance of that business firm.

Accepted Answer

A public issue exists when there is a gap between the stakeholders' expectations of what a business firm should do and the actual performance of that business firm.

Question 14

Companies are learning that it is important to take a strategic approach to the management of public issues,both domestically and globally.

Accepted Answer

Companies are realizing the importance of managing public issues strategically, both domestically and globally.

Question 15

Legal environment includes the structure,processes,and actions of government at the local,state,national,and international levels.

Accepted Answer

The answer of Legal environment includes the structure,processes,and actions of...

Question 16

Emerging public issues are both a risk and an opportunity.

Accepted Answer

Emerging public issues can be perceived as a risk because they may threaten an organization's reputation or operations. However, they can also offer opportunities to demonstrate leadership and social responsibility, build trust with stakeholders, and address societal concerns.

Question 17

Organizations always have full control of a public issue.

Accepted Answer

Organizations do not always have full control of a public issue. Public issues are subject to a variety of external factors such as media coverage, public opinion, government regulations, and the actions of other organizations or individuals. Organizations can take actions to influence or manage a public issue, but they do not always have complete control over it.

Question 18

Because of the risks and opportunities public issues present,organizations need:
A) A strong relationship with a lobbying firm or an in-house lobbying department.
B) Executives to be rewarded with substantial bonuses as part of total compensation.
C) A systematic way of identifying, monitoring, and selecting public issues.
D) Tougher government regulations and oversight by political action committees.

Accepted Answer

Organizations need a systematic way to identify, monitor, and select public issues to effectively manage risks and seize opportunities. This can include tools such as stakeholder mapping, scenario planning, and issue prioritization. Having a strong relationship with lobbying firms or in-house lobbying departments and rewarding executives with substantial bonuses may be helpful, but they are not as essential as having a systematic approach to public issue management. Tougher government regulations and oversight by political action committees may also be relevant but are not within the control of the organization.

Question 19

Understanding and responding to changing societal expectations is a business necessity.

Accepted Answer

As society evolves, so do their expectations regarding the behavior of companies. Failure to stay in touch with changes in society's attitudes can lead to lost business and damaged reputation, making understanding and responding to changing societal expectations a necessity for any successful business.

Question 20

Failure to understand the beliefs and expectations of stakeholders:
A) Causes a company's profits to increase in the short run.
B) Causes a company's profits to decrease in the short run.
C) Causes the performance-expectations gap to grow larger.
D) Increases the chance of a corporate buy-out.

Accepted Answer

Failure to understand the beliefs and expectations of stakeholders often leads to a performance-expectations gap, where the actual performance of a company diverges from what stakeholders expect, potentially harming stakeholder relations and the company's reputation.

Quiz 2: Managing Public Issues and Stakeholder Relationships