BUS 226 L2 Exam Study Guide

Six step issues management process

1. Environmental scanning and issues identification 2. Issues analysis 3. Issues ranking and prioritizing 4. Issues resolution and strategizing 5. Issues response and implementation 6. Issues evaluation and monitoring

Seven phase issue development process

1. Felt need arises 2. Media coverage is developed 3. Interest group development and growth 4. Leading political jurisdictions adopt policies 5. Federal government gives attention to the issue 6. Issues and policies evolve into legislation and regulation 7. Issues and policies enter litigation

Describe the 7 steps of stakeholder analysis

1. Map stakeholder relationships 2. Map stakeholder coalitions 3. Asses the nature of each stakeholder's responsibilities 4. Asses the nature of each stakeholder's power 5. Construct a framework of stakeholder moral responsibilities and interests 6. Develop specific strategies and tactics 7. Monitor shifting coalitions

Four Crisis Management Stages

1. Prodromal Stage (Precrisis)- Warning symptoms 2. Acute Stage (Crisis occurs) - Point of no return 3. Chronic Stage (Lingering) - Self-doubt, self analysis 4. Conflict Resolution Stage (Health restored) - Return to normalcy

Pure Food and Drug Act of 1906

1906 - Forbade the manufacture or sale of mislabeled or adulterated food or drugs, it gave the government broad powers to ensure the safety and efficacy of drugs in order to abolish the "patent" drug trade. Still in existence as the FDA.

Telephone Consumer Protection Act of 1991

A federal law that places restrictions on telephone solicitation

What is stakeholder analysis?

A pragmatic way of identifying and understanding multiple claims of many constituencies. A method

A set of rules and assumptions about behavioral patterns among the various elements of society is which of the following?

A social contract

Which of the following is one of the worst companies according to the top 10 companies and best corporate board practices?

AIG

Which act of congress gives the justice department investigative authority?

Antitrust Improvements Act

Information intermediaries include:

Auditors, analysts, rating agencies and the press.

Mixed eceonomies include:

Balance between private property systems and the government laws, policies, and regulations that protect consumers and citizens.

Which of the following designates air-quality standards?

Clean Air Act

Noise Pollution Act, 1972

Controls noise emission of manufactured products

Do Not Call Implementation, 2003

Coordinates the FTC and FCC to provide consistence rules on telemarketing practices

Which of the following is not a primary stakeholder?

Courts

What does the Sarbanes-Oxley Act do?

Establishes an independent public accounting board to oversee audits. Requires one member of the audit committee to be an exert of finance. Requires full disclosure to stockholders of complex financial transactions. Provides a ten year penalty for wire and mail fraud.

Consumer Product Safety Act, 1972

Establishes safety standards and regulations of consumer products (created the Consumer Product Safety Commission [CPSC]).

Corporate philanthropy includes:

External engagement of social responsibility.

The stockholder approach:

Financial and economic relationships, with stockholders/owners as primary beneficiaries of managerial decisions.

What are the two general types of intermediaries?

Financial and information

Food Quality Protection Act (1996)

Is designed to ensure that levels of pesticide residues in food meet strict standards for public health protection. Under this law, which overhauled the Federal Food, Drug, and Cosmetic Act and the Federal Insecticide, Fungicide, and Rodenticide Act, the Environmental Protection Agency is required to better protect infants and children from pesticides in food and water and from indoor exposure to pesticides.

Which of the following represents the last step in the six step issues management process?

Issues evaluation and monitoring

What is covenantal ethics?

It focuses on the importance of relationships- social as well as economic- between businesses, customers and stakeholders.

Which of the following represents the second step in a general stakeholder analysis?

Mapping stakeholder coalitions

The second step in the seven phase issue development process is which of the following?

Media coverage

Criticisms of Stakeholder Theory

Negates and weakens fiduciary duties that managers owe to stockholdersWeakens the influence and power of stakeholder groupsWeakens the firmChanges the long-term character of the capitalist system

A stakeholder that shows a high potential for threat and a low potential for cooperation is which of the following?

Non-supportive

Which responsibilities does a company need to have to be socially responsible?

Philanthropic Legal Ethical

Federal Water Pollution Control Act of 1972

Renamed the Clean Water Act in 1977Made it illegal to discharge pollution without a permitSet standards for industrial wastewaterFunded building of sewage treatment plants

Clean Air Act of 1970 & 1990

Required EPA to develop and enforce regulations to protect the public from airborne contaminants; forced states to follow and make sure the laws for followed in relation to the EPA. States allowed to decide officials for enforcement.

Federal Hazardous Substances Act (1960)

Required that certain hazardous household products bear cautionary labels to alert consumers to the potential hazards of these products.

Truth and Lending Act, 1960

Requires full disclosure of credit terms to buyers

Children's Online Privacy Protection Act, 1998

Requires the FTC to make rules to collect online information from children under 13 years old.

The _______ was enacted to establish oversight, accountability, and enforce truthful and accurate financial reporting in public forms.

Sarbanes-Oxley Act

Fair Credit Billing Act (1974)

Sets up a procedure for the quick correction of mistakes that appear on consumer credit accounts

Which of the following issues management frameworks may be most helpful in tracking a controversial issue throughout its lifecycle?

Seven-phase issue-development process

Using a stakeholder approach and analysis with an issues management approach is

Suggested and helps connect the dots of a complex situation

What are stakes?

The amount an investor owns in company

What is free-market theory?

The primary aim of a business is to make a profit.

Financial intermediaries include:

Venture capitalists, banks, and insurance companies

What does voluntary self-regulation consist of?

Visions and values Ethics programs Philanthropy

An effective leader should _______ a supportive stakeholder.

involve

Corporate Social Responsibility (CSR)

involves an organization's duty and obligation to respond to its stakeholders' and the stockholders' economic, legal, ethical, and philanthropic concerns and issues.