Chapter 2 Managing Public Issues and Stakeholder Relationships

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.

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

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

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

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

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

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.

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.

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.

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

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

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

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

IKEA

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

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

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

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

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

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.

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

True

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

True

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

14. Stakeholder engagement is at its core, a relationship. 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

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

True

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

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

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

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

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

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

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

2. Managing public issues is a challenging task for managers. 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

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

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

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

the graying of america