Chapter 1: The Corporation and it's Stakeholders
What are the steps of issue management process?
1. Identify Issue 2. Analyze Issue 3. Generate Options 4. Take Action 5. Evaluate Results
What are the steps in stakeholder analysis?
1. Identify issue at hand 2. Who are the relevant stakeholders? 3. What are the interests of each stakeholder? 4. What is the power of each stakeholder? 5. How are coalitions likely to form?
What is a stakeholder?
A person or group that affects, or is affected by, a corporation's decisions, policies, and operations.
What is stakeholder materiality?
Adaptation of an accounting term that focuses on the importance or significance of stakeholders for the firm
What is a public issue?
An issue that is of mutual concern to an organization and its stakeholders
What is a business?
Any organization that is engaged in making a product or providing a service for a profit
What are the types of stakeholders?
Customers, employees, shareholders, government, suppliers, professional and trade associations, social and environmental activists, and nongovernmental organizations
Corporations that run operations according to the stakeholder theory of a firm create value by: a) innovating new products b) increasing their stock price c) developing their employees' professional skills d) all of these answers are correct
D. All are correct
Stakeholder groups can include: (a) shareholders (b) business support groups (c) environmental activists (d) all of the above
D. All of the above
What are the drivers of engagement in the company-business relationship?
Goals, motivation, capacity
What are the stages of the business-stakeholder relationship?
Inactive, reactive, proactive, and interactive
A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value to its:
Investors
A stakeholder analysis:
Involves understanding the nature of stakeholder interests
A stakeholder map is a useful tool because:
It enables managers to quickly see how stakeholders feel about an issue, and it allows managers to evaluate what outcomes are likely regarding an issue.
What kind of power(s) do consumers have to discourage sweatshops among big corporations?
Political and economic
What is society?
Refers to human beings and to the social structures they collectively create
What is the issue management process?
The active management of public issues once they come to the attention of a business organization
What is the Iron Law of Responsibility?
The belief that those who do not use their power in ways that society considers responsible will tend to lose their power in the long run
Which of the following is False about Fair Trade?
The bottom feeder factories perform at a more sustainable level causing low pollution in the environment
What is corporate social responsibility?
The idea that businesses should act in a way that enhances society and their stakeholders and be held accountable for any of its actions that affect people, their communities, and their environment
What is a focal organization?
The organization from whose perspective the analysis is conducted
What is the PE (performance-expectation) gap?
The perceived distance between what a firm wants to do or is doing and what the stakeholders expect
What are the 5 types of stakeholder power?
Voting, economic, political, legal, and informational