Module 2

Which of the following is the result of the inseparable relationship between business and society

D. Both A and B, All business decisions have a social impact, the vitality of business depends on society's actions and attitudes

Internal Stakeholders

Employees & Managers, who are employed by the firm. "inside the firm"

Organizations always have full control of a public issue.

False

Contemporary issue management:

Is an interactive, forward thinking process.

Interactive

- Companies actively engage stakeholders in an ongoing relationship of mutual respect, openness, and trust

Inactive

- Companies ignore stakeholder concerns

Proactive

- Companies try to anticipate stakeholder concerns

Reactive

- companies act only when forced to do so, and then in a defensive manner

According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on

A. 8 strategic radar screens

Reactive companies

Act only when forced to

Interactive Companies

Actively engage with stakeholders in an ongoing relationship

The components of a typical issues management process include:

All of the Above: - Identify issue. - Generate options. - Take action

38. An issue's public profile indicated to managers: A) the significance of an issue. B) what to do. C) what to avoid doing. D) all of the above.

All of the above

Once an issue has been identified, its implications must be:

Analyzed

39. In 2000, McDonald's convened a panel of experts to discuss what topic: A) Animal welfare in slaughterhouses. B) Treatment of foreign employees and subcontractors. C) Fat and sodium content of their product. D) Children issues.

Animal welfare in slaughterhouses

In the Issue Management Process Identify Issue is

Anticipating emerging concerns, or "horizon" issues

Which is an not an example of economic power

B. A social group protests a government's decision to raise taxes

Once an issue has been identified, its implications must be

B. Analyzed

Modern corporations should be socially responsible because they

B. Create jobs, influencing the lives of employees

Which of the following is NOT considered to be a non-market stakeholder

B. Creditors

Which of the following is an argument in favor of corporate social responsibility

B. Discourages government regulation

31. Public affairs managers conduct a competitor environmental analysis to: A) Enable an organization to minimize threats and take advantage of new opportunities. B) Provide managers with information about external issues and trends. C) Both A and B. D) None of the above.

Both A and B

35. An effective way to learn what issues are important to people outside of the organization is through: A) Building ongoing, positive relationships with stakeholders. B) Conducting public opinion polls. C) Hiring individuals from outside the company for available positions rather than promoting from within the organization. D) All of the above.

Building ongoing, positive relationships with stakeholders

Interactive Social System

Business and Society neeed and influence each other. They are entwined so completely that any action taken by one will surely affect the other

Stakeholder Networks

Businesses working collaboratively with other businesses and concerned persons and organizations

The Issue management process has how many stages

C. 5

because of the risks and opportunities public issues present, organizations need

C. A systematic way of identifying, monitoring and selecting public issues

An emerging business model that attempts to strategically balance all of the interest of all stakeholders to solve social and environmental problems is called

C. B corporation

With the explosive growth of technologies that facilitate sharing of info, this kind of power is increasingly important

C. Informational Power

Failure to understand the beliefs and expectations of stakeholders:

Causes the performance-expectations gap to grow larger.

The role of special interest groups is an important element in acquiring intelligence from the:

Competitor Environment

Legal environmental intelligence includes:

Considerations of patents, copyrights, or trademarks.

When working well, the issue management process:

Continuously cycles back to the beginning and repeats.

Stakeholder Theory

Corporations serve a broad public purpose: to create value for society

26. Gender, age and marital status are all examples of: A) Competitor Environment. B) Customer Environment. C) Both A and B. D) Neither A or B.

Customer Environment

The "graying" of the population is an example of:

Customer environment

Which of the following statements is NOT correct about the business-society interdepence

D. Actions by government rarely affect businesses

Reasons for adopting an enlightened self-interest approach are

D. All of the above

Which of the following examples best illustrate the boundary exchange a company would encounter according to the general systems theory

D. All of the above, An industrial company installs new tech to meet regulation, a purchasing development company employee negotiates a price, and a software development company develops an app for a client

The components of a typical issues management process include

D. All of the above, Identify issue, generate options, take action

BSR helps its 300 member companies:

D. Develop sustainable business stratagies

A business and it's stakeholders coming face to face for a conversation about common issues is called

D. Stakeholder dialouge

Performance-Expectations Gap

Discrepancy between what stakeholders expect and what an organization is actually doing

Utilitarian Reasoning

Emphasizes the overall amount of good that can be produced by an action or decision.

Ethical Relativism

Ethical principles should be defined by various periods of time in history, society's traditions, and special circumstances of the moment, or personal opinion

In the Issue Management Process Generate Options is

Evaluating action options, involves complex judgments that take into account "non-quantifiable" factors like the company's reputation

In the Issue Management Process Analyze Issue is

Evaluating the issue; coming to an understanding of how it will evolve and how it will affect the organization

Dialogue between a single firm and its stakeholders is always sufficient to address an issue effectively.

False

Financially sound companies do not need to understand how a public issue is likely to evolve, or how it will affect them.

False

Legal environment includes the structure, processes, and actions of government at the local, state, national, and international levels.

False

The issue management process has how may stages?

Five

Stakeholder map

Graphical representation of the relationship of stakeholder salience to a particular issue

Ethical Principles

Guides to moral behavior

Stakeholder queston 4

How are coalitions likely to form?

An issue's public profile indicates to managers:

How significant an issue is for the organization, but it does not tell them what to do.

Justice

Is it fair?

Ethical Egoist

Manager/employee who puts his or her own self-interest above all others

Proactive companies are:

Much less likely to be blindsided by crises and negative surprises.

In the Issue Management Process Evaluate Results

Must assess results of the program and make adjustments as needed

25. Temple Grandin . A) is a former Coca-Cola CEO. B) is a renowned economic expert. C) sued McDonald's on behalf of animal right activists. D) None of the above.

None of the above

In the Issue Management Process Take Action

Once option is chosen, must design and implement it

Ethics Policies or Codes

Provide guidance to managers and employees when they encounter an ethical dillema

Firms that generally act only when forced to do so, and then in a defensive manner are:

Reactive Companies

Stakeholder engagement is, at its core, a:

Relationship

Ethics

Right v. Wrong

A business and its stakeholders coming together for face-to-face conversations about issues of common concern is

Stakeholder dialogue.

The issues management process is a:

Systematic process companies use when responding to public issues that are of greatest importance to the business.

Environmental intelligence

The acquisition of information gained from analyzing the multiple environments affecting organizations

10. The first step in the issue management process is to identify the issue A) True B) False

True

9. The Internet has enabled the growth of stakeholder organizations. A) True B) False

True

Emerging public issues are both a risk and an opportunity.

True

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

True

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

True

Understanding and responding to changing societal expectations is a business necessity

True

Proactive companies

Try to anticipate stakeholder concerns

Environmental analysis

Used to gather information about external issues & trends, so they can develop an organizational strategy that minimizes threats and takes advantage of new opportunities

Stakeholder question 1

Who are relevant stakeholders

24. Joya Williams received what sentence for attempting to steal trade secrets. A) $80,000 fine. B) Six months. C) Eighteen months. D) Eight years.

eight years

Public Issue/Social Issue

issue that concerns an organization and one or more of its stakeholders

• Issue ripeness refers to:

o When society's expectations are high and the issue is highly relevant to business

23. Karl Albrecht refers believes environmental intelligence should focus on eight : A) Pressure points. B) Radar screens. C) Hyper-priorities. D) None of the above.

radar screens

The fiduciary duty of a manager benefits a firm's:

stockholders customer employees ALL of the ABOVE

Stakeholder Power

the ability to use resources to make an event happen or to secure a desired outcome. ex: voting power

22. Customer Environment includes A) patents and copyrights. B) information on competitors. C) the graying of america. D) geophysical issues.

the graying of america

According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on:

Eight strategic radar screens

Because of the risks and opportunities public issues present, organizations need:

A systematic way of identifying, monitoring, and selecting public issues.

A leadership role in addressing emerging management issues is often taken by:

All of the Above: - The public affairs department. - The government relations department. - The department of sustainability or environmental, health and safety.

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.

False

Ownership Theory of the Firm

Firm is seen as property of its owners.

37. The components of a typical issues management system include: A) Issues identification and research. B) Policy options, selection and strategy. C) Program design and implementation. D) All of the above.

All of the above

General Systems Theory

All organisms are open to and interact with external environments

Philanthropic funding and public relations are two examples of CSR

B. Policy Instruments of the corporate social stewardship phase

Stakeholders stand out to managers when they exhibit

B. Power, Legitimacy, an Urgency

Stakeholder engagement at it's core is a

B. Relationship

Stakeholder Engagement parts

Goal Motivation Organizational capacity

The drivers of stakeholders of engagement are:

Goals, motivation, and operational capacity

Stages of Moral Development

How people grow and develop morally

Stakeholder Analysis

Identifying relevant stakeholders and understanding their interests and the power they may have to assert these interests.

Inactive Companies

Ignore stakeholder concerns

White- Collare Crime

Illegal acts committed such as insider trading, fraud, embezzelment, computer crime

Firms that believe they can make decisions unilaterally, without taking into consideration their impact on others are:

Inactive Companies

Iron Law of Responsability

In the long run, those who do not use power in ways that society considers responsible will tend to lose it.

27. What business was forced to dramatically change its business model in the early 2000s because of technological changes: A) Music industry. B) Insurance Industry. C) Legal Industry. D) Advertising Industry.

Music industry

Customers can exercise economic power by

B. Boycotting products if they believe he goods are too expensive

The costs of corporate social responsibility may ultimately be passed on the

B. Consumer through high prices

Public issues are also sometimes referred to as:

Both A & B: - Social issues. - Sociopolitical issues.

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

True

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

True

For stakeholder engagement to occur, both the business and the stakeholder must be motivated to work with one another to solve the problem.

True

Global Social Audit standards concentrate on

D. All of the above

• The "graying" of the population is an example of:

o Customer environment

Which one of the following is considered to be a NON-MARKET stakeholder of business

B. Nongovernmental organizations

The phenomenon of a person holding multiple stakeholder duties is referred to as

A. Role Sets

The Issue Management Process

Identify Issue Analyze Issue Generate Options Take Action Evaluate Results

The most significant motivator of Corporate social reporting is

B. Ethical Concerns

Ethics Reporting mechanisms

"helpline". help employees to understand how to report unethical behavior

Ethics and Compliance Officer

...

When undertaking social initiatives, a company

C. May sacrifice short-term profits

The emergence of a public issue indicates that:

A gap has developed between what stakeholders expect and what an organization is actually doing.

Corporate Power

Capability of corporations to influence government, the economy, society, based on the organizations resources

What stakeholder groups can exercise legal power

D. All of the above, Employees, Customers, and Shareholders

18. Examples of companies successfully managing public issues include: A) Monsanto, which received worldwide acclaim for genetically modified foods. B) Toyota, for their creation of the Prius. C) Both A and B. D) B, but not A.

Toyota, for their creation of the Prius.

Stakeholder expectations

A mixture of people's opinions, attitudes, and beliefs about what constitutes reasonable business behavior

Spirituality

A personal belief in a supreme being, religious organization, or the power of nature or some other external life guiding force.

Which of the following companies is being the most socially responsible

A. A company trying its best to operate in a way which will help local students get educated and get jobs

The emergence of a public issue indicates that

A. A gap has been developed between what a stakeholder expects and what the business does

Positive reputation can be valued as an intangible corporate

A. Asset

The explosive use of social media is an example of

A. Customer Environment

Customer environmental intelligence includes

A. Demographic factors

Which argument says that stakeholder management realistically depicts how companies really work

A. Descriptive Argument

An issue's public profile indicates to managers

A. How significant an issue is for organizations, but it doesnt ell them what to do

The iron law of responsibility says

A. In the long run, those who do not use power responsibly will lose it

When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, it is an exercise of what power

A. Legal Power

All of the following are external stakeholders except

A. Managers

Proactive companies are

A. Much less likely to be blindsided by crises and negative surprises

Which of the following is not a driver of the corporate social responsiveness phase of of corporate social responsibility

A. Religious/ Ethnic Beliefs

Which of the following is an argument against CSR

A. Requires skills businesses may lack

Corporations working collaboratively with other businesses and concerned persons and organizations is an example of

A. Stakeholder networks

The 5 types of stakeholders' power are

A. Voting, Legal, Economic, Informational and Political

20. Reaction to bonuses issued to executives from this company almost led Congress to pass a ninety percent tax on said bonuses. A) Price-Waterhouse. B) Anderson Group. C) AIG. D) None of the above.

AIG

Environmental intelligence

Acquisition of information gained from analyzing the multiple environments affecting organizations

32. Customer environmental intelligence includes: A) Demographic factors. B) An analysis of the firm's competitors. C) New technological applications. D) The cost of producing consumer goods.

An analysis of the firm's competitors

Public issue

Any issue that is of mutual concern to an organization and one or more of its stakeholders

Business Ethics

Application of general ethical ideas to business behavior

The issue of reactive management policies occurs in which stage of global corporate citizenship

B. Engaged

What is not true about the interactive social system

B. The boundary between business and society is clear and distinct

Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems becuase

C. Both A/B

Public issues are often referred to as

C. Both A/B, Social Issues/Sociopolitical Issues

Failure to understand the beliefs and expectations stakeholders

C. Causes the performance-expectation gap to grow larger

Stakeholders have been able to from international coalitions through the use of

C. Communication technology

Legal environment intelligence includes

C. Considerations of patents copyrights or trademarks

The main reason a number of European countries require public companies to include employee members on their board of directors is so that

C. Employees interests will be explicitly represented

A stakeholder analysis

C. Involves understanding the nature of stakeholder interests (ONLY ALL OF THE ABOVE OPTION THAT ISN'T RIGHT)

Which of these is not an objective of the Global Reporting Initiative

C. Providing tax incentives for global corporate citizens

Firms that generally act when forced to do so are

C. Reactive companies

17. Failure to understand the beliefs and expectations of stakeholders: A) Causes company's profits to increase in the short run. B) Causes 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.

Causes the performance-expectations gap to grow larger.

Dynamic Environment of Business

Changing societal expectations Growing emphasis on ethical reasoning and actions Globalization Evolving govt regulations and business response Dynamic natural environment Explosion of new technology and innovation

34. Legal environmental intelligence includes: A) Patterns of aggressive growth versus static maintenance. B) Analysis of local, state, national, and international politics. C) Considerations of patents, copyrights, or trademarks. D) Information regarding costs, prices, and international trade.

Considerations of patents, copyrights, or trademarks.

What kind of power might a a local community use to influence a companies decision

D. All of the above, Publicizing an issue, Lobbying gov't policy makers for regulations, challenging whether an whether a business activity should continue to operate

Stakeholder partnerships, high tech communication networks and sustainability audits are examples of

D. Corporate/ Global Citizenships

Firms that believe they can make decisions unilaterally are

D. Inactive companies

Business leaders like Henry Ford developed these programs to support employee health

D. Paternalistic Programs

The role of special interest groups is an important element in acquiring intelligence from the

D. Social Environment

According to Barlow v A.P. Smith Manufacturing

D. Socially responsible actions are an investment in the future, thus an allowable expense

Customer environmental intelligence includes:

Demographic Factors

Boundary-Spanning departments

Departments, offices, within an organization that reach cross the dividing line that separates the company from groups and people in society.

Overtime, the nature of business's relationship with its stakeholders often:

Evolves through a series of stages.

1. A public issue exists when there is agreement between the stakeholders' expectations of what an institution should do and the actual performance of those businesses. A) True B) False

False

11. McDonald's was only able to resolve their differences with PETA regarding slaughterhouses by filing an expensive lawsuit. A) True B) False

False

5. In 2009, Toyota sold its one millionth Prius A) True B) False

False

6. Privacy laws are more stringent in the U.S. than the U.K. A) True B) False

False

Virtue Ethics

Focuses on character traits that a good person should possess, theorizing that moral values will direct the person towards good behavior

Performance-expectations gap

Gap between expected performance and actual performance

29. Awareness of the physical surroundings of the facilities and operations is known as A) Social environment. B) Technological environment. C) Geophysical environment. D) None of the above.

Geophysical operations

Over time, the nature of business's relationship with its stakeholders often evolve through a series of stages

Inactive Reactive Proactive Interactive

Focal Organization

Organization from whose perspective the stakeholder analysis is conducted.

Nonmarket Stakeholders

People and groups who, although they do not engage in direct economic exchange with the firm, are nonetheless affected by or can affect its actions. community, government, NGO, media, competitors etc.

Stakeholder

Person and groups that affect, or are affected by, an organizations decision, policies, and operations.

An analysis of the stability or instability of a government is an example of scanning the:

Political Environment

33. An analysis of the stability or instability of a government is an example of scanning the: A) Social environment. B) Legal environment. C) Geophysical environment. D) Political environment.

Political environment

42. Crisis management is a process enabling companies to: A) Encourage employees to address inner-city problems. B) Respond to short-term and immediate shocks. C) Allocate budget surpluses to guard against possible catastrophes. D) Legally protect the firm against disgruntled ex-workers.

Respond to short-term and immediate shocks

a relationship

Stakeholder engagement is, at its core,

Corporations working collaboratively with other businesses and concerned persons and organizations is an example of:

Stakeholder networks.

Once an organization has implemented the issue management program, it must:

Study the results and make necessary adjustments.

41. Tony Jacques, of Dow chemical, believes: A) Techniques for problem solving are underemphasized. B) There is seldom a right answer in issue management. C) Issue management is primarily a science, not an art. D) In the long run, the process is more important than the outcome.

Techniques for problem solving are underemphasized

Stakeholder Coalitions

Temporary alliances to pursue a common interest. Groups that are highly involved with a company.

Ethics Audit

The auditor is required to note any deviations from the company's ethics standards and bring them to attention of the audit supervisor

Enlightened- Self Interest

The long term rewards of the company will enhance reputation, loyalty,company employee satisfactionm and global community support.

Competitive Intelligence

The systematic and continuous process of gathering, analyzing, and managing external information about the organization's competitors that can affect the organization's plans, decisions and operations

Externeal Stakeholders

Those who, although they may have important transactions with the firm are not directly employed by it. Tire rack @ subaru.

2. Managing public issues is a challenging task for managers. A) True B) False

True

Conflict of Interest

When an individuals self-interest conflicts with acting in the best interest of another, when the individual has an obligation to do so.

Issue ripeness refers to:

When society's expectations are high and the issue is highly relevant to business.

• The emergence of public issue indicates that:

o A gap has developed between what stakeholders expect and what an organization is actually doing

• Because of the risks and opportunities public issue presents, organizations need:

o A systematic way of identifying , monitoring, and selecting public issues

• Which of the following examples best illustrates the boundary exchanges a company would encounter according to the general systems theory?

o An industrial company installs new equipment in its plant to comply with environment regulations o A software company develops an application for a client o A purchasing department employee negotiates a price on parts from a supplier o All of the Above

• What stakeholder group(s) can exercise legal power?

o Employees o Customers o Shareholders o All the Above

• Corporations that run their operations according to the stakeholder theory of the firm create value by:

o Innovating new products o Increasing their stock price o Developing employees professional skills o All the Above

• A stakeholder analysis:

o Involves understanding the nature of stakeholder interests

30. The issues management process is: A) A beneficial tool used only to maximize the positive effects of a public issue for the organization's advantage. B) A beneficial tool used only to minimize the negative effects of a public issue for the organization's advantage. C) A systematic process companies use when responding to public issues that are of greatest importance to the business. D) A confusing process that is rarely used to help top management within an organization

A systematic process companies use when responding to public issues that are of greatest importance to the business.

A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value to

A. Stakeholders

Interactions between business and society occur

A. Within a finite natural ecosystem

Over time, the nature of businesses relationship with it's stakeholders often

B. Evolve through a series of stages

The instrumental argument says stakeholder management is

B. More effective as a corporate strategy

When something stands out from a background, is seen as important, or draws attention it is

B. Salient

Once an Organization has implemented the issue management process program, it must

B. Study the results and makes necessary adjustments

36. Public affairs managers can identify issues in the issues management process through: A) Scanning newspapers and other media. B) Use of electronic databases, including the Internet. C) Both A and B. D) None of the above.

Both A and B

Employee Ethics Training

Build ethical safeguards

Stakeholder Dialogue

Business and its stakeholders come together for face-to-face conversations about issues of common concern.

A corporation's issue management activities are usually linked to

C. Both board of directors ad top level management

Departments, or offices, that reaches across the dividing line that separates the company from groups and people in society

C. Boundary spanning departments

Some companies have created a department of corporate citizenship

C. Centralize under common leadership wide-ranging corporate functions

This inter-American organization was created to unite organizations focusing on corporate social responsibility from Canada to Chile

C. Forum Empresa

When companies put its commitment to social and environmental responsibility into practice worldwide

C. Global Corporate Citizenship

The drivers of stakeholder engagement are

C. Goals, motivation, and operation capacity

The relevance and importance of stakeholders and their issues is know as

C. Stakeholder Materiality

Corporate power refers to

C. The capability of corporations to influence government, the economy, and society, based on their organizational resources

Stakeholder engagement is

C. The process of ongoing relationship building between a business and its stakeholders

Managers responding to the need of local education systems as a normal or routine aspect of its operations is an example of an organization in

C. Transforming Stage

Which of the following examples does not show a company guided by enlightened self-interest

C. a company breaking past records by maximizing quarterly profits

The Issue management process is a

C. systematic process companies use when responding to public issues that are of the greatest importance to the business

The fiduciary duty of managers benefits a frim's

D. All of the above, Shareholders, Customers and Employees

Good corporate citizens

D. All of the above, Strive to make business dealings in an ethical manner, work to protect environment, and make a concerted effort to balance the needs of stakeholders

Corporations that run their operations according to stakeholder theory of the firm create value by

D. All of the above. Innovating new products, increasing stock prices, and developing their employees' professional skills

A stakeholder map is a useful tool because

D. Both A and B, It enables to managers to see quickly how stakeholders feel about an issue, it allows managers t evaluate what outcomes are likely regarding an issue

Contemporary Issue management

D. is an interactive, forward thinking process

43. Stakeholder dialogue refers to: A) Dialogue between stakeholders. B) Dialogue between stakeholders and businesses. C) Dialogue between stakeholders and government. D) All of the above.

Dialogue between stakeholders and businesses.

19. LaFarge promised to experiment with reducing carbon dioxide emissions in this region: A) Latin America. B) East Africa. C) The Pyrennes. D) Saharan desert.

East Africa

7. The Gallup corporation tracks the opinions of top business executives from around the world. A) True B) False

False

8. Environmental analysis is a method managers use to gather information about internal issues and trends. A) True B) False

False

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

False

16. has donated over $180 million to UNICEF in over a decade: A) IKEA B) Walmart C) Unilever. D) Nike.

IKEA

28. Being disappointed in a movie because it was not as good as the trailers is an example of A) Reality fantasy pendulum. B) Media over-hype phenomena (Mop). C) Poor environmental analysis. D) Performance expectation gap.

Performance expectation gap

U.S. Corporate Sentencing Guidelines

Provides a strong incentive for businesses to promote ethics at work

Bribary

Questionable or unjust payment often to a government official to ensure or facilitate a business transaction.

40. Once an organization has implemented the issue management program, it must: A) Use trade associations or consultants to follow high priority issues. B) Study the results and make necessary adjustments. C) Not limit the number of public issues the firm can address. D) Pick a selected number of issues to address immediately.

Study the results and make necessary adjustments

Corporate Social Responsability

The corporation should act in a way that enhances society and its inhabitants and be accountable for any actions that affect people, communities, and their environment.

Integrity Capital

The financial benefit a company reaps from promoting a culture of integrity among its workforce

14. Stakeholder engagement is at its core, a relationship. A) True B) False

True

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

True

• Which of the following statements if not true about interactive social system?

o The boundary between business and society is clear and distinct

• Stakeholder engagement is:

o The process of ongoing relationship building between a business and its stakeholders

Environmental analysis

A method managers use to gather information about external issues and trends, so they can develop an organizational strategy that minimizes threats and takes advantage of new opportunities

A leadership role in addressing emerging management issues in often taken by

D. All of the above, The public affairs dept, the government relations dept, and the department of sustainability or environmental, health and safety

Which of the following statements are correct about stakeholder powers

D. All of the above, different stakeholders have different types of degrees of power, stakeholders voting power is limited to the % of company owned, it uses resources to achieve a desired decision or outcome

Stakeholder groups can include

D. All of the above, shareholders, business support groups, and environmental activist

Which of the following statements are true about corporate social responsibility

D. Both A and C, Businesses should monitor and prevent social problems in advance, corporations should be accountable for any actions that affect people

Companies demonstrate global corporate citizenship by

D. Both B/C not A. Finding business opportunities that serve society and integrating concern for both financial and social problems

When working well, the issue management process

D. Continuously cycles back to the beginning and repeats itself

An analysis of the stability or instability of a government is an example of scanning the

D. Political environment

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

False

Human Rights

Person or group that is entitled to something and is to be treated a certain way.

US Foreign Corrupt Practices Act

Prevents bribes

Salience

Stakeholders that stand out to managers & seen as important.

21. At Unilever, who has over-all responsibility fomanaging external relations at the Corporate level: A) A coalition of management and rank and file workers. B) An Executive committee C) The Chief Executive Officer. D) The Chairman and the Board of Directors.

The Chairman and the Board of Directors

Stakeholder interests

The nature of each group;s stake- what do they want from their relationship with the firm?

• A corporation's issue management activities are usually linked to:

o Both the board of directors and top management levels

• Which of the following is not considered to be a nonmarket stakeholder?

o Creditors

• An issue's public profile indicates to managers:

o How significant an issue is for the organization, but it does not tell them what to do

12. Tony Jacque believes that companies underemphasize creative problem solving. A) True B) False

True

Stakeholder question 2

What are the interests of each stakeholder

Stakeholder question 3

What is the power of each stakeholder

A corporation's issue management activities are usually linked to:

Both the board of directors and top management levels.

to constitute engagement

The participation of a business organization and at least one stakeholder organization is necessary, by definition,

Stakeholder Engagement

The process of ongoing relationship building between a business and its stakeholders.

Stakeholder engagement is:

The process of ongoing relationship building between a business and its stakeholders.

13. Issue management is a structured and systematic process to aid organizations in identifying, monitoring, and selecting public issues that warrant organizational action. A) True B) False

True

15. In the early 21st century, more than one billion people worldwide lacked access to safe drinking water. A) True B) False

True

3. Emerging public issues are both a risk and an opportunity. A) True B) False

True

4. Monsanto's modified foods were well accepted in the United States, but not in Europe. A) True B) False

True

• The components of a typical issues management process include:

o Identify issue o Generate options o Take action o All the Above

• Contemporary issue management:

o Is an interactive, forward thinking process

• Stakeholders stand out to managers when they exhibit:

o Power, legitimacy, and urgency

• Firms that generally act only when forced to do so, and then in a defensive matter are:

o Reactive

• The phenomenon of a person or group holding multiple stakeholder duties is referred to as:

o Role sets

• A number of European countries require public companies to include employee members on their board of directors so:

o That their interests will be explicitly represented

Market Stakeholders

those that engage in economic transactions with the company as it carries out its purpose of providing society with goods and services