Question 1

Roberta is responsible for the firm's relationship with its suppliers.She is careful to ensure that they receive regular emails regarding product development and that they are invited to company sponsored events.Roberta's role is consistent with which level of Freeman's stakeholder relationship process?

Accepted Answer

Roberta's role focuses on maintaining transactional relationships with the firm's suppliers, indicating the transactional level of Freeman's stakeholder relationship process. She is ensuring that the firm's suppliers are adequately informed about product development and invited to events.

Question 2

The position/importance matrix is a method used to categorize stakeholders.Stakeholder who would support the organization's course of action and are important to the organization would be placed in the ________ category.

Accepted Answer

Supporters are stakeholders who would support the organization's course of action and are important to the organization. This is the most favorable category for stakeholders as they have a positive impact on the organization and its goals. Low priority stakeholders are not important to the organization, while antagonistic stakeholders would oppose the organization's course of action. Problematic stakeholders may be important to the organization but are likely to oppose its course of action.

Question 3

Stakeholder collaboration is also referred to as stakeholder engagement in the academic literature and in corporate reports.

Accepted Answer

Stakeholder collaboration and stakeholder engagement are often used interchangeably in both academic literature and corporate reports.

Question 4

Social capital is created when the relationship between stakeholders and the organization gains increased understanding,cooperation,and coordination.

Accepted Answer

Social capital refers to the value and benefits that come from relationships, networks, and social interactions. The creation of social capital occurs when stakeholders and the organization have strong relationships built on understanding, cooperation, and coordination, leading to mutual benefits and increased trust.

Question 5

Stakeholder management focuses on managing relationships whereas stakeholder collaboration focuses on building relationships.

Accepted Answer

Stakeholder management involves identifying stakeholders and their needs, engaging with them, and addressing their concerns to maintain a positive relationship. Stakeholder collaboration involves working together with stakeholders to achieve a shared goal, building trust and partnerships for mutual benefits. Therefore, stakeholder collaboration is a more proactive approach, aimed at creating value through cooperation, while stakeholder management is more reactive, focused on maintaining a balance of interests.

Question 6

Resource dependence applies when an organization only has one supplier to obtain one or more resources.

Accepted Answer

Resource dependence theory suggests that organizations become dependent on the resources that they need to achieve their goals, specifically when those resources are controlled by a single supplier or a small group of suppliers. This can lead to power imbalances and vulnerabilities for the organization if the supplier chooses to withhold or manipulate the resources.

Question 7

If a definitive stakeholder loses an attribute no salience exists.

Accepted Answer

If a definitive stakeholder loses an attribute, it does not necessarily mean that no salience exists. Other attributes or factors may still make the stakeholder relevant and important to the decision or project.

Question 8

Which of the following is an industry where it is particularly important for corporations to be involved in stakeholder management?

Accepted Answer

All of the industries listed involve ethical and social considerations that require corporations to manage their relationships with stakeholders effectively. In the oil and gas industry, stakeholders include local communities, environmental groups, and governments, all of whom have concerns about the impact of exploration and drilling activities on the environment and local populations. In the pharmaceutical industry, stakeholders include patients, healthcare providers, and regulatory agencies, who have concerns about the safety and efficacy of drugs. In the automotive industry, stakeholders include customers, suppliers, and governments, who have concerns about product safety, environmental impact, and labor practices. And in the child care services industry, stakeholders include parents, child welfare organizations, and regulatory agencies, who have concerns about the quality of care provided to children. In all of these industries, effective stakeholder management is essential for building and maintaining trust, managing reputation, and creating shared value for all stakeholders involved.

Question 9

One perspective of social capital views it as the trust or goodwill existing between the corporation and its stakeholders.

Accepted Answer

This perspective of social capital emphasizes the importance of building and maintaining strong relationships with stakeholders such as employees, customers, suppliers, and local communities based on mutual trust and cooperation. It recognizes that these relationships can generate significant economic benefits for the corporation, including improved reputation, enhanced innovation, and increased resilience in times of crisis.

Question 10

A large chain of bookstores called Littera is planning to build a new store in a small town in the prairies.They are known for their large selection and low prices.Before going public,the management at Littera decides to categorize identified stakeholders using a position/importance matrix.There are three small,independent bookstores in town.They aren't considered to be a competitive concern.They would be categorized as _________________.

Accepted Answer

The answer of A large chain of bookstores called Littera...

Question 11

BCS Corporation is developing its level of stakeholder management capability.In the _______ level of the process of managing stakeholder relationships,the firm identifies coalitions that are formed amongst the stakeholder groups.

Accepted Answer

In the rational level of stakeholder management, the firm identifies and understands the relationships and coalitions formed among stakeholder groups.

Question 12

Kim is applying the position/importance matrix as a method to categorize stakeholders in his company.The company is considering changing the colour of its product from blue to bright pink.Stakeholders who support the organization's course of action and are relatively unimportant to the company are considered _________ and a(n) __________ strategy is appropriate.

Accepted Answer

The answer of Kim is applying the position/importance matrix as...

Question 13

The difference between a withholding strategy and a usage strategy is whether the intention to change behaviour exists.

Accepted Answer

A withholding strategy involves intentionally not using a product or service to save money or resources, while a usage strategy involves altering how a product or service is used to achieve savings or efficiency, not necessarily based on the intention to change behavior but on the method of achieving savings or efficiency.

Question 14

Effective and efficient relationships with stakeholders may provide a competitive advantage.

Accepted Answer

Effective and efficient relationships with stakeholders can lead to various benefits such as better understanding of customer needs, improved reputation, increased loyalty, access to resources and information, and more. All of these can contribute to a competitive advantage in the market.

Question 15

Increasing the organization's environmental stability and enhancing control over changing circumstances are goals of collaboration.

Accepted Answer

Collaboration can allow organizations to pool resources, knowledge, and skills to better cope with environmental changes and achieve more stability. Working together can also improve communication and coordination, leading to greater control over circumstances.

Question 16

The position/importance matrix is a method used to categorize stakeholders.Stakeholders who would oppose the organization's course of action and are relatively unimportant to the organization would be placed in the ________ category.

Accepted Answer

Problematic stakeholders are those who oppose the organization's actions but are not considered important, making them a lower priority for engagement compared to more influential stakeholders.

Question 17

Telus Corporation announced in February 2007 that it has no plans to change its policy of supporting the download of pornography to cellular phones.Parents opposed to this policy,and are considered by the company to be very important stakeholders.They are also likely to form coalitions to gain further power.Parents are _________ stakeholders and a(n) _____________ strategy is appropriate.

Accepted Answer

The parents in this scenario are considered as antagonistic stakeholders as they have a conflicting interest with that of Telus Corporation regarding the download of pornography to cellular phones. A defensive strategy is appropriate in this situation as the company needs to protect itself from the negative impact of the opposition by the parents.

Question 18

Indirect strategies,such as influence pathway,requires communication and cooperation of high degree between stakeholders,therefore they are difficult to sustain.

Accepted Answer

Indirect strategies rely on building relationships and cooperation between stakeholders, which can be challenging to maintain over time.

Question 19

Ishmal determines that the company shareholders expect attention from the company,but their demands are not urgent.He also notes that they do have considerable power and a legitimate claim to have input.This stakeholder is a dependent stakeholder and therefore in the definitive stakeholder category.

Accepted Answer

According to the stakeholder theory, stakeholders with high power and legitimacy but low urgency are considered "Dormant Stakeholders," not definitive stakeholders. Definitive stakeholders have high levels in all three attributes: power, legitimacy, and urgency.

Question 20

An example of the potential business value created by the benefits of social capital is when norm adherence establishes a strong emotional connection between the corporation and its customers.

Accepted Answer

When a corporation adheres to social norms, it can create a positive emotional connection with customers, which can translate into increased brand loyalty and customer retention, resulting in potential business value. This is an example of how social capital can benefit a corporation.

Quiz 4: Stakeholder and Issue Analysis