Question 1

The ROI on sustainability efforts can be difficult to quantify because

Accepted Answer

The ROIs on sustainability projects are often very difficult to quantify for a number of reasons. Among these are:(1) the data necessary to calculate ROI accurately are often not available when it comes to sustainability projects; (2) many of the benefits from such projects are intangible; and (3) the payback period is on a different time frame.

Question 2

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 3

Traditional financial models are built around relatively easy-to-measure,monetized results; whereas,the benefits of sustainability projects involve

Accepted Answer

Traditional financial models are built around relatively easy-to-measure, monetized results. Yet many of the benefits of sustainability projects involve fuzzy intangibles, such as the goodwill that can enhance firm brand equity.

Question 4

Leadership is a necessary (but not sufficient)condition for organizational success.Leaders should emerge at which level(s)of an organization?

Accepted Answer

To develop and mobilize people and other assets, leaders are needed throughout the organization.

Question 5

Stockholders as a stakeholder group are interested primarily in

Accepted Answer

Stockholders are interested in dividends and capital appreciation.

Question 6

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 7

Peter Senge,of MIT,recognized three types of leaders.Which of the following describes individuals who champion and guide ideas,create learning infrastructure,and establish a domain for taking action?

Accepted Answer

Executive leaders champion and guide ideas, create a learning infrastructure, and establish a domain for taking action.

Question 8

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 9

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 10

Sustainability programs often find their success beyond company boundaries,thus ________ systems and ________ metrics cannot capture all of the relevant numbers.

Accepted Answer

The data necessary to calculate ROI accurately are often not available when it comes to sustainability projects. However, sustainability programs may often find their success beyond company boundaries, so internal systems and process metrics cannot capture all the relevant numbers.

Question 11

Some benefits of sustainability projects include

Accepted Answer

The intangible benefits of sustainability projects such as reducing risks, staying ahead of regulations, pleasing communities, and enhancing employee morale are substantial, even when they are difficult to quantify.

Question 12

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 13

Peter Senge,of MIT,recognized three types of leaders.________ are individuals that,although having little positional power and formal authority,generate their power through the conviction and clarity of their ideas.

Accepted Answer

Internal networkers, although they have little positional power and formal authority, generate their power through the conviction and clarity of their ideas.

Question 14

Many organizations have a large number of functional areas with very diverse and sometimes competing interests.Such organizations will be most effective if

Accepted Answer

Strategic management requires managers to take an integrative view of the organization and assess how all of the functional areas and activities fit together to help an organization achieve its goals and objectives. This cannot be accomplished if only the top managers in the organization take an integrative, strategic perspective of issues facing the firm, and everyone else fends for themselves in their independent, isolated functional areas. Instead, people throughout the organization must strive toward overall goals.

Question 15

The text argues that a strategic perspective in an organization should be emphasized

Accepted Answer

No longer can organizations be effective if the top does the thinking, and the rest of the organization does the work. People throughout the organization must strive toward overall goals.

Question 16

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 17

The case for sustainability projects needs to be made on the basis of a more holistic and comprehensive understanding of all the ________ benefits.

Accepted Answer

Clearly, the case for sustainability projects needs to be made on the basis of a more holistic and comprehensive understanding of all the tangible and intangible benefits rather than whether or not they meet existing hurdle rates for traditional investment projects. For example, 3M uses a lower hurdle rate for pollution prevention projects.

Question 18

Strategy formulation and implementation is a challenging ongoing process.To be effective,it should not involve

Accepted Answer

To develop and mobilize people and other assets, leaders are needed throughout the organization. No longer can organizations be effective if the top does the thinking, and the rest of the organization does the work. People throughout the organization must strive toward overall goals.

Question 19

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 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