BUS - Quiz 1 9/15/19

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

- Innovating new products. - Increasing their stock price. - Developing their employees' professional skills. All of the above.

Companies demonstrate global corporate citizenship by:

- proactively BUILDING STAKEHOLDER RELATIONSHIPS - DISCOVERING BUSINESS OPPORTUNITIES IN SERVING SOCIETY - transforming a concern for financial performance into a vision of integrated financial and social performance

Actions by governments rarely significantly affect business. -business and society are both separate and connected -Business and society need, as well as influence, each other -The Boundary between business and society is clear and distinct -The boundary between business and society is clear and distinct.

The boundary between business and society is clear and distinct.

CH2 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. Beneficial tool used only to minimize the negative effects of a public issue for the organization's advantage. C. Systematic process companies use when responding to public issues that are of greatest importance to the business. D. Confusing process that is rarely used to help top management within an organization. Systematic process companies use when responding to the public issues that are of greatest importance to the business.

Customers can exercise economic stakeholder power by:

Boycotting products if they believe the goods are too expensive.

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

Company breaking past records by maximizing quarterly profits

When a company puts its commitment to social and environmental responsibility into practice worldwide, not only locally or regionally it is called: -Global Corporate Citizenships -Corporate social responsibility -Community Investing -Global Sustainability

Global Corporate Citizenships

Corporate power refers to:

The capability of corporations to influence government, economy, society based on their organizational resources

Stakeholder engagement is:

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

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

Through a series of stages -Inactive -Reactive -Proactive -Interactive

Which statement is not correct about the business-society interdependence?

-Business is separated from one rest of society by clear boundaries -Business activities impact other activities in society -Business is apart of society -Actions by governments rarely significantly affect business. * Actions by governments rarely significantly affect business.

What kind of power might a local community use to influence a company's decisions?

-Publicizing an issue. - Lobbying government policy makers for regulations. - Challenging whether a business activity should continue to operate.

Over time, the nature of business's relationship with its stakeholders often: -Evolves through a series of stages -Remains static -Becomes more hostile -none of the above

Evolves through a series of stages

Proactive companies are: a. Much less likely to be blindsided by crises and negative surprises. b. Much more likely to be blindsided by crises and negative surprises. c. Just as likely to be blindsided by crises and negative surprises. d. Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder.

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

Contemporary issue management: a.. Is a linear process. b. Was useful in the 1970s, but not today. c. Is used by all government agencies. d. Is an interactive, forward thinking process.

d. Is an interactive, forward thinking process.

Good corporate citizens:

strive to conduct all business dealings in an ethical manner, make a concerted effort to balance the needs of all stakeholders, and protect environment