Ch. 2 Smartbook - Managing Public Issues & Stakeholder Relationships

Which quadrant of Figure 2.3, Nestle's Stakeholder Materiality Matrix, should a firm's management focus on when developing company strategy?

The quadrant with the highest priorities for both stakeholders and the firm

True or false: Stakeholder expectations are a mixture of people's opinions, attitudes, and beliefs about what constitutes reasonable business behavior.

True

Where can a company search for reliable stakeholder issues? (Check all that apply.)

Websites mission statements 10-k filing

Corporate stakeholder engagement is defined as the process of ongoing relationships between _____. (Check all that apply.)

businesses and customers businesses and the government

The properties of competitive intelligence include _____. (Check all that apply.)

continuous systematic external information NOT internal information Reason: The internal info of a co. does not provide competitor info

According to the eight radar screens, challenges to acquiring environmental intelligence can include _____. (Check all that apply.)

cultural traditions in the workplace organizational reporting relationships

When managers are flexible, creative and willing to learn from mistakes, they are addressing which aspect of emerging public issues?

Complexity

Technological

Provides faster access to information through handheld electronic devices

What was the major public issue that Coca-Cola started addressing in 2018?

Single-use plastic bottle waste

When a firm correctly anticipates and addresses a public issue, the firm often _____.

gains a competitive advantage

Environmental analysis refers to scanning for public issues _____.

outside the organization

Why do some Millennials believe that business is equipped to address social issues? (Check all that apply.)

Businesses have access to many financial resources. Companies have collective intelligence and technology.

What did Coca-Cola's program "A World Without Waste" aim to accomplish?

Collect and recycle all equivalent plastic packaging

What is the critical difference between using social media for stakeholder engagement over traditional communications?

Communications are faster and more effective.

Issue management at Publix is correctly described by which of the following? (Check all that apply.)

Each division has a media and community relations team. The customer care team manages client issues. The corporate communications team handles internal communications.

In the context of management systems, drag and drop the terms (in the left column) against their definitions (in the right column).

Environmental analysis - A method managers use to gather information about external issues and trends Environmental intelligence - The acquisition of information gained from analyzing the multiple environments affecting organizations

In the context of management systems, match the terms (in the left column) with their related goals (in the right column). Instructions

Environmental analysis - The goal is to develop a company strategy to minimize the threat of external issues. Environmental intelligence - The goal is to help an organization avoid crisis and to spot opportunities, if done well.

Match the issue management process step on the left with its correct description on the right.

Identify issue - create awareness by tracking media, opinions, and legislation Analyze issue - understand how an issue is likely to evolve Generate options - identify & evaluate alternative responses to issues Take action - design and implement a plan to address issues Evaluate results - monitor progress and adjust as needed

Competitor

Includes information on the number and strength of rivals

Legal

Includes patents, copyrights, trademarks, and considerations of intellectual property

Political

Includes the structure, processes, and actions of all levels of government

The search for competitive intelligence sometimes causes which boundaries to be crossed? (Check all that apply.)

Legal Ethical

Match the strategic radar screens (in the left column) with their characteristics (in the right column).

Next Eight

Companies progress through the stages of a business-stakeholder relationship in what way? (Check all that apply.)

Remaining in one stage Backward in the sequence One stage to the next, in order

Which public issue was associated with business leaders Bill O'Reilly, Roger Ailes, Harvey Weinstein, Matt Lauer, Steve Wynn, and others, in 2017?

Sexual harassment

True or false: The purpose of environmental analysis is for a firm to identify, monitor, and evaluate public issues that may require action from the firm.

T

True or false: Stakeholder engagement should include both internal, as well as external, stakeholders and emphasize issues that directly affect corporate strategy.

T: Reason - Stakeholder engagement should apply to all internal and external stakeholders

What advantage does competitive intelligence offer managers?

The ability to make informed decisions

How did Chipotle respond to outbreaks of E. coli that sickened hundreds of their customers in 2015?

The firm pledged $10 million to help local growers meet food safety standards.

What action did MetLife, Symantec, Hertz, and Avis take in response to the Parkland shootings, according to the case Businesses Respond to the Movement for School Safety?

They ended discount programs with the NRA.

The primary goals of stakeholder dialogue include _____. (Check all that apply.)

identifying solutions for mutual gain defining a common definition of the problem NOT: demonstrating the customer is always right NOT: defining a long-term strategy to force company-oriented goals Reason: A firm's strategy should not force company-oriented goals.

Competitive intelligence can be used to create business strategies for _____. (Check all that apply.)

research and development marketing financial investing

The European Academy of Business in Society (EABIS) identified the most effective global leadership skills as _____. (Check all that apply.)

understanding the changing business context the skill to engage with external stakeholders using connectedness the ability to lead in the face of complexity

Customer

Includes demographic factors

Economic

Includes information about costs, prices, and international trade

True or false: Four out of five Millennials believe that business should completely avoid social involvement, according to a 2014 survey.

F

Match the drivers of stakeholder engagement (in the left column) with the correct company oriented description (in the right column). Instructions

Goal - improves corporate reputation Motivation - needs stakeholder expertise or resources Organizational capacity - has support from company leaders and adequate funding

What role does social media play in stakeholder engagement? (Check all that apply.)

Identifies problems Shares information Tracks customer suggestions

Match the stage of the business-stakeholder relationship on the left with its correct description on the right.

Inactive - company ignores stakeholder concerns Reactive - company takes action only when forced Proactive - firms scan the external environment to anticipate stakeholder concerns Interactive - firms actively engage with stakeholders with trust, respect and openness

Social

Includes cultural patterns, values, beliefs, trends, and conflicts in society

Which types of businesses cut ties with the NRA after the Parkland shootings, according to the case Businesses Respond to the Movement for School Safety? (Check all that apply).

Insurance companies Banking organizations

The concept of a public issue is characterized by which statement(s)? (Check all that apply.)

It is sometimes called a social or sociopolitical issue. It is often highly contentious. It often has public policy or legislative implications. Not: It is of concern to the organization but not their stakeholders. Reason: A public issue is of equal importance to both the firm and all of its stakeholders.

How well do companies that actively engage with stakeholders manage public issues, as compared to companies that do not?

Much better

What are the drivers of stakeholder engagement? (Check all that apply.)

Organizational capacity Motivation Goals

Identify the benefits of stakeholder engagement. (Check all that apply.)

Raising awareness of emerging issues Access to information in stakeholder networks

Geophysical

Relates to an organization's dependency and impact on natural resources

Place the issue management process steps in the correct order, starting with the step that anticipates emerging concerns at the top of the list.

identify issues analyze issues generate options take action evaluate results

According to the Foundation for Public Affairs, the majority of corporate budgets used for remediation of public issue since the mid-2000's has _____.

increased slightly or stayed the same

Successful stakeholder dialogue requires participants to _____.

listen carefully and respectfully to others

The importance of a stakeholder to a firm is called stakeholder _____.

materialitity

Failure to understand a firm's stakeholder concerns can result in _____.

missed business opportunities

According to Nestle's Stakeholder Materiality Matrix in Figure 2.3, the priorities of issues for stakeholders are shown _____.

vertically from the lowest priority on the bottom to the highest priority on the top

A new public issue often indicates a performance-expectations gap between what stakeholders expect and _____. (Check all that apply.)

what a company is currently doing what a company wants to do