Chapter 1 MGMT 411

Place the five steps of the stakeholder impact analysis in order, with the first step at the top.

1. Who are our stakeholders? 2. What are our stakeholders' interests? 3. What opportunities and threats do our stakeholders present? 4. What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? 5. what should we do to effectively address the stakeholder concerns?

Stakeholder impact analysis is a decision tool that helps a company do which of the following?

Achieve a competitive advantage Act as a good corporate citizen

Who among the following are considered internal stakeholders?

Board members Stockholders Employees

True or false: A strategic leader's job is to focus like a laser on shareholders.

False

Which of the following are outcomes of effective stakeholder management?

It leads to beneficial cooperation from stakeholders. It helps the firm achieve predictable and stable returns. It lowers the cost of business transactions by building trust.

Which of the following elements of the pyramid of corporate social responsibility are required by society and shareholders?

Legal responsibilities Economic responsibilities

The concept, or framework, of corporate social __________ guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.

Responsibility

True or false: Firms should obey all the laws, including but not limited to labor, consumer protection, and the environment.

True

Which of the following questions are part of the five steps in stakeholder impact analysis?

What opportunities and threats do our stakeholders present? What are our stakeholders' interests and claims? Who are our stakeholders?

A stakeholder has Blank______ when its needs are within the bounds of the law or are otherwise relevant to the firm.

a legitimate claim

When a stakeholder has power over a company that stakeholder is Blank______.

able to influence the company to do something it would otherwise not do

How should managers prioritize stakeholder concerns in the final step of stakeholder impact analysis?

by considering the power, legitimacy, and urgency of stakeholder claims

Which of the following legal developments allow business to function as an institution?

contract enforcement property rights

The idea that firms should voluntarily give back to society when they are able to do so is known as Blank______.

corporate citizenship

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?

corporate social responsibility

Which of the four corporate social responsibilities is considered first and foremost for business enterprises?

economic

Internet privacy, genetic engineering, and stem-cell research are examples of areas in which a firm's Blank______ responsibilities exceed its legal responsibilities.

ethical

Starbucks's actions to educate its workers and management about racism indicates that the firm takes its Blank______ responsibilities seriously.

ethical

Which of the following elements of the pyramid of corporate social responsibilities are result from a society's expectations toward business?

ethical responsibilities philanthropic responsibilities

Customers, suppliers, creditors, unions, and governments are known as Blank______.

external stakeholders

In the Blank______ step of the stakeholder impact analysis, managers need to decide the appropriate course of action for the firm in relation to stakeholder concerns.

fifth

Stakeholder impact analysis is a Blank______-step process that allows managers to better understand and address stakeholders' needs.

five

Effective stakeholder management Blank______.

helps a firm build a strong public reputation

Microsoft donating more than $3 billion in cash and software to people in need is an example of which type of corporate social responsibility?

philanthropic

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis?

power legitimacy urgency

Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities?

repaying debts to creditors giving investors a return on invested capital

Stakeholder strategy argues that focusing exclusively on the needs of Blank______ places the firm at risk of failure.

shareholders