BUS 202 Test #1 T/F

A public issue exists when there is an agreement between the stakeholder's expectations of what a business should do and the actual performance of that business

False

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

False

Being socially responsible means that a company must abandon it's other missions

False

Business and society are independent of one another

False

Corporate Citizenship refers to a set of beliefs stating that socially responsible behavior is a good idea

False

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

False

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

False

Enlightened self interest is the that the wealthiest members of society should be charitable

False

Financially sounds companies do not need to understand how a public issue is likely to evolve, or how it would affect them

False

Global corporate citizenship refers to putting an organization's commitment to social and and environmental responsibility into practice locally

False

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

False

Market stakeholders include nongovernmental organizations and business support groups

False

Non-market stakeholders are those engaged in economic transactions with the company as it carries out its primary purpose of providing society with goods and services

False

Organization always have full control of a public issue

False

Some scholars have suggested that managers pay the most attention to stakeholders possessing the least salience

False

The capability of corporations to influence, the economy, government, and society based on their organizational resources is called the big business principle

False

The external environment of a business is static

False

The normative argument for the stakeholder theory says that the stakeholder view is simply a more realistic description of how companies really work

False

The stakeholder theory of the firm argues that a firm's sole purpose is to create value for the stakeholder

False

Urgency refers to the extent to which a stakeholder's actions are seen as proper or appropriate by the broader society

False

When a company punishes the results of a social audit they are meeting the demands of local government taxation policies

False

A business is any organization that is engaged in making a product or providing a service for a profit.

True

A social audit is a systematic of an organizations social ethical and environmental performance

True

A stakeholder map is a useful tool because it enables managers to see how quickly how stakeholders feel about an issue and whether salient stakeholders tend to be in favor or opposed

True

An argument against corporate social responsibilities is that it imposes unequal costs among competitors

True

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

True

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

True

Corporate Social Responsibility is the idea that business interact with the organization's stakeholders for social good while they pursue economic goals

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

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

True

For stakeholder engagement to occur, both businesses and the stakeholder must be motivated to work with one another to resolve an issue

True

Global corporate citizenship activities help companies create value, reputation, and competitive advantage

True

Government can be considered both a market and non-market stakeholder

True

Huge businesses can disproportionally can influence politics, shape tastes, and dominate public discourse

True

In the first stage of corporate citizenship, the elementary stage, managers are uninterested and uninvolved with social issues

True

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

True

One of the most appealing arguments for CSR for business supporters is that voluntary social acts may head off government regulation

True

Stakeholder materiality is a method companies use to to prioritize the relevance of the stakeholders and their issues

True

Stakeholders involved with one part of the company often may have little or no involvement with another part of the company

True

The concept of CSR is rooted in the meaning to pledge back, creating a commitment to give back to society and the organization's stakeholders.

True

The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups

True

The interest of different stakeholders often coincide

True

Understanding and responding to changing societal expectations is a business necessity

True

Walmart has been called a "template for 21st century capitalism."

True