Question 1

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 in order to anticipate potential risks and plan accordingly. Ignoring public issues can still lead to negative impacts on the company's reputation and financial performance.

Question 2

Emerging public issues are both a risk and an opportunity.

Accepted Answer

Emerging public issues may pose a risk to a business, such as negative publicity or government regulation. However, they also present an opportunity for businesses to take a stance, demonstrate their values, and potentially gain a competitive advantage.

Question 3

According to management scholar Karl Albrecht,scanning to acquire environmental intelligence should focus on:
A) Eight strategic radar screens.
B) Six management templates.
C) Eight process improvement models.
D) Six ethical decision indicators.

Accepted Answer

Karl Albrecht's eight strategic radar screens focus on key areas to scan for environmental intelligence, including competitor intelligence, customer intelligence, technology intelligence, supplier intelligence, regulatory intelligence, socio-cultural intelligence, economic intelligence, and geopolitical intelligence. The other options listed are not relevant to Albrecht's framework for environmental scanning.

Question 4

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 5

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.

Question 6

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

Accepted Answer

As societal expectations evolve, it is crucial for businesses to adapt and meet the changing needs and values of their customers in order to remain relevant and competitive. Failure to do so may result in loss of market share and negative reputation. Therefore, understanding and responding to changing societal expectations is a business necessity.

Question 7

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 8

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

Accepted Answer

Competitive intelligence provides insights on competitors, customers, suppliers, and market trends, equipping managers with valuable information to make informed decisions in various areas such as marketing, pricing, R&D, expansion, and more.

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 implies that there is a difference between what stakeholders anticipate and what an organization is performing.

Question 10

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

Accepted Answer

Identifying the issue is the first step in the issue management process, and it involves anticipating emerging issues that may create problems for the organization. This proactive approach helps organizations to identify potential problems before they occur and take corrective action to address them.

Question 11

Organizations always have full control of a public issue.

Accepted Answer

Organizations may have influence over public issues, but they do not always have full control. Public issues involve various stakeholders and external factors that can impact the outcome, and organizations cannot always predict or manage these factors.

Question 12

According to management scholar Karl Albrecht,scanning to acquire environmental intelligence should focus on four strategic radar screens.

Accepted Answer

Karl Albrecht proposed seven strategic radar screens for environmental scanning, not four. These include social, technological, economic, environmental, political, customer, and competitive screens.

Question 13

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 need to be willing and committed to working together in order for stakeholder engagement to be successful.

Question 14

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

Accepted Answer

Environmental analysis is a technique used by managers to collect information about external factors and trends that may affect the organization's performance.

Question 15

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

Accepted Answer

Companies often track public issues that are gaining attention and relevance in order to stay informed and responsive to public opinions and concerns.

Question 16

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

Accepted Answer

This statement is true. Companies are realizing the importance of managing public issues strategically, both locally and globally, in order to maintain their reputation and avoid negative consequences.

Question 17

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

Accepted Answer

Environmental intelligence involves analyzing multiple environments that affect organizations to acquire information.

Question 18

Issue ripeness refers to:
A) The number stakeholders involved in the public issue.
B) When society's expectations are high and the issue is highly relevant to business.
C) How long the issue has been a problem for business, the longer the more ripe.
D) The importance given to the issue by the media and how much coverage it receives.

Accepted Answer

Ripeness refers to the degree to which society's expectations and pressures have evolved, and the issue is relevant to business. It is often used as a criterion to decide when an issue has become mature enough to warrant the company's attention. The other options are not related to the concept of ripeness.

Question 19

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

Accepted Answer

Public issues and social issues are often used interchangeably to describe problems or concerns that affect a large portion of society. Sociopolitical issues may be more specific to political systems or structures, and thus not always synonymous with public or social issues.

Question 20

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 is an important step in addressing an issue, but it may not always be sufficient. Other actors in the industry, government regulators, and the broader public may also need to be involved in finding a solution. Additionally, the severity and complexity of the issue may require more comprehensive approaches, such as collaboration between multiple firms or organizations.

Quiz 2: Managing Public Issues and Stakeholder Relationships