Chapter 2. Managing Public Issues and Stakeholder relationships BUS 3080

The issue managment process

identify issue, analyze issue, generate options, take action, evaluate results

According to the Foundation for Public Affairs, the majority of corporate budgets used for remediation of public issue since the mid-2000's has _____. a. increased exponentially b. increased slightly or stayed the same c. declined very sharply d. declined only a small amount

increased slightly or stayed the same

face of complexity

many emerging issues, the reasearchers found, were surrounded by ambiguity; to deal with them, leaders needed to be flexible, creative, and willing to learn from their mistakes

Failure to understand a firm's stakeholder concerns can result in _____. Multiple choice question. a. decreased risk of stakeholder backlash b. increased business opportunities c. a shrinking performance-expectations gap d. missed business opportunities

missed business opportunities

Failure to understand a firm's stakeholder concerns can result in _____. Multiple choice question. a. increased business opportunities b. decreased risk of stakeholder backlash c. a shrinking performance- expectations gap d. missed business opportunities

missed business opportunities

How well do companies that actively engage with stakeholders manage public issues, as compared to companies that do not? Multiple choice question. a. Considerably worse b. About the same c. Much better d. Somewhat worse

much better

Environmental analysis refers to scanning for public issues Blank______. a. outside the organization b. inside the organization c. only within the industry d. related only to sustainability

outside the organization

competitive intelligence

refers to the systematic and continuous process of gathering, analyzing, and managing external information about the organization's competitors that can affect the organization's plans, decisions, and operations.

Geophysical Environment includes:

relates to awareness of the physical surroundings of the organization's facilities and operations

Competitive intelligence can be used to create business strategies for _____. (Check all that apply.) - research and development - financial investing - marketing - a firm's competitors

research and development financial investing marketing

The concept of a public issue is characterized by which statement(s)? (Check all that apply.) Multiple select question. -It is sometimes called a social or sociopolitical issue. -It often has public policy or legislative implications. -It is of concern to the organization but not their stakeholders. -It is often highly contentious.

-It is sometimes called a social or sociopolitical issue. -It often has public policy or legislative implications. -It is often highly contentious.

Generate options

Identify and evaluate alternative responses to issues

Evaluate results

Monitor progress and adjust as needed

issue management process

A five-step process where managers identify the issue, analyze the issue, generate options, take action, and evaluate results.

stakeholder materiality

Adaptation of an accounting term that focuses on the importance or significance of stakeholders for the firm

What did Coca-Cola's program "A World Without Waste" aim to accomplish? Multiple choice question. a. Collect and recycle all water used in production b. Collect and recycle all equivalent plastic packaging c. Plant a new tree for every tree destroyed d. Eliminate acid rain in North and South America

Collect and recycle all water used in production

The search for competitive intelligence sometimes causes which boundaries to be crossed? (Check all that apply.) Financial Ethical International Legal

Ethical Legal

What is the critical difference between using social media for stakeholder engagement over traditional communications? Multiple choice question. a. Social media gives technical stakeholder more influence. b. Communications are slower and more deeply analyzed. c. Social media has a much more attractive user interface. d. Communications are faster and more effective.

Communications are faster and more effective.

What is the critical difference between using social media for stakeholder engagement over traditional communications? Multiple choice question. a. Social media has a much more attractive user interface. b. Social media gives technical stakeholder more influence. c. Communications are slower and more deeply analyzed. d. Communications are faster and more effective.

Communications are faster and more effective.

Why do some Millennials believe that business is equipped to address social issues? (Check all that apply.) - Companies have collective intelligence and technology. - Businesses make laws that all consumers must follow. - Millennials want the government to solve social issues, not businesses. - Businesses have access to many financial resources.

Companies have collective intelligence and technology. Businesses have access to many financial resources.

Inactive

Company ignores stakeholder concerns.

Reactive

Company takes action only when forced.

When managers are flexible, creative and willing to learn from mistakes, they are addressing which aspect of emerging public issues? Multiple choice question. a. Complexity b. Content c. Context d. Connectedness

Complexity

Identify issue

Create awareness by tracking media, opinions, and legislation

Take action

Design and implement a plan to address issues

True or false: Four out of five Millennials believe that business should completely avoid social involvement, according to a 2014 survey.

False

Interactive

Firms actively engage with stakeholders with trust, respect, and openness.

Proactive

Firms scan the external environment to anticipate stakeholder concerns.

What role does social media play in stakeholder engagement? (Check all that apply.) - Identifies problems - Tracks customer suggestions - Shares information - Connects personal friends

Identifies problems Tracks customer suggestions Shares information

What role does social media play in stakeholder engagement? (Check all that apply.) -Connects personal friends -Identifies problems -Tracks customer suggestions -Shares information

Identifies problems Tracks customer suggestions Shares information

Which types of businesses cut ties with the NRA after the Parkland shootings, according to the case Businesses Respond to the Movement for School Safety? (Check all that apply). - Insurance companies - Ammunition providers - Gun manufacturers - Banking organizations

Insurance companies Banking organizations

What are the drivers of stakeholder engagement? (Check all that apply.) -Organizational capacity - Favoritism -Motivation -Goals

Organizational capacity Motivation Goals

Legal Environment includes:

Patents, copyrights, trademarks, and considerations of intellectual property.

Identify the benefits of stakeholder engagement. (Check all that apply.) - Reduced legitimacy in the public view - Adding significant risk to a company's reputation - Raising awareness of emerging issues - Access to information in stakeholder networks

Raising awareness of emerging issues Access to information in stakeholder networks

What advantage does competitive intelligence offer managers? Multiple choice question. a. The guarantee of making the best investments b. The guarantee of selling the best products c. The ability to out-guess the market d. The ability to make informed decisions

The ability to make informed decisions

Which public issue was associated with business leaders Bill O'Reilly, Roger Ailes, Harvey Weinstein, Matt Lauer, Steve Wynn, and others, in 2017? Multiple choice question. a. Cybercrime b. Insurance fraud c. Sexual harassment d. Insider trading

Sexual harassment

What was the major public issue that Coca-Cola started addressing in 2018? Multiple choice question. a. Heavy deforestation damages b. Single-use plastic bottle waste c. Extreme usage of water d. Mining of toxic minerals

Single-use plastic bottle waste

What advantage does competitive intelligence offer managers? Multiple choice question. a. The guarantee of selling the best products b. The guarantee of making the best investments c. The ability to make informed decisions d. The ability to out-guess the market

The ability to make informed decisions

Issue management at Publix is correctly described by which of the following? (Check all that apply.) - The corporate communications team handles internal communications. - The social media team handles internal communications. - The customer care team manages client issues. - Each division has a media and community relations team.

The corporate communications team handles internal communications. The customer care team manages client issues. Each division has a media and community relations team.

social environment includes:

The cultural patterns, values, beliefs, trends, styles, preferences, heroes, villains, and conflicts that form the reference systems of people's behavior.

Technological Environment includes:

The development of new technologies and their applications affecting the organization, its customers, and other stakeholder groups

How did Chipotle respond to outbreaks of E. coli that sickened hundreds of their customers in 2015? Multiple choice question. a. The company closed over 5,000 stores and laid off around 50,000 workers. b. The firm fired the CEO and replaced the entire board of directors. c. The company denied all wrong-doing and took its suppliers to court. d. The firm pledged $10 million to help local growers meet food safety standards.

The firm pledged $10 million to help local growers meet food safety standards.

Which quadrant of Figure 2.3, Nestle's Stakeholder Materiality Matrix, should a firm's management focus on when developing company strategy? Multiple choice question. a. The quadrant with the lowest priorities for both stakeholders and the firm b. The quadrant with the highest priorities for both stakeholders and the firm c. All quadrants deserve equal attention d. The highest stakeholder quadrant and the lowest company quadrant

The quadrant with the highest priorities for both stakeholders and the firm

What action did MetLife, Symantec, Hertz, and Avis take in response to the Parkland shootings, according to the case Businesses Respond to the Movement for School Safety? Multiple choice question. a. They joined the right to bear arms marches across the country. b. They announced national boycotts against gun manufacturers. c. They ended discount programs with the NRA. d. They expanded discount programs with the NRA.

They ended discount programs with the NRA.

True or false: Stakeholder engagement should include both internal as well as external stakeholders and emphasize issues that directly affect corporate strategy.

True

True or false: Stakeholder expectations are a mixture of people's opinions, attitudes, and beliefs about what constitutes reasonable business behavior.

True

True or false: Stakeholder expectations are a mixture of people's opinions, attitudes, and beliefs about what constitutes reasonable business behavior. True false question. -True -False

True

True or false: The purpose of environmental analysis is for a firm to identify, monitor, and evaluate public issues that may require action from the firm.

True

Analyze issue

Understand how an issue is likely to evolve

Where can a company search for reliable stakeholder issues? (Check all that apply.) - Websites - Word of mouth - Mission statements - 10-K filings

Websites Mission statements 10-K filings

stakeholder dialogue

a business and its stakeholders come together for face-to-face conversations about issues of common concern

Public issues are considered broad in nature because they Blank______. Multiple choice question. a. impact just a few companies at a high level b. impact all companies around the world c. have a high concentration of impact on specific stakeholders d. are of concern to a significant number of people

are of concern to a significant number of people

Corporate stakeholder engagement is defined as the process of ongoing relationships between Blank______. (Check all that apply.) - customers and the media - businesses and customers - government and the public - businesses and the government

businesses and customers businesses and the government

he primary goals of stakeholder dialogue include Blank______. (Check all that apply.) - defining a common definition of the problem - identifying solutions for mutual gain - defining a long-term strategy to force company-oriented goals - demonstrating that the customer is always right

defining a common definition of the problem identifying solutions for mutual gain

Customer environmental includes:

demographic factors, such as age, marital status, and other factors, of the organization's customer as well as their social values or prefrences, buying prefrences, and technology usage

Business context

emerging environmental and social trends affecting the firm

When a firm correctly anticipates and addresses a public issue, the firm often Blank______. a. loses their competitive advantage b. loses new business opportunities c. pays higher taxes d. gains a competitive advantage

gains a competitive advantage

When a firm correctly anticipates and addresses a public issue, the firm often Blank______. Multiple choice question. a. loses new business opportunities b. gains a competitive advantage c. loses their competitive advantage d. pays higher taxes

gains a competitive advantage

According to the Foundation for Public Affairs, the majority of corporate budgets used for remediation of public issue since the mid-2000's has _____. Multiple choice question. a. increased exponentially b. increased slightly or stayed the same c. declined only a small amount d. declined very sharply

increased slightly or stayed the same

Economic Environment includes:

information about costs, prices, international trade, and any other features of the economic environment

Competitor Environment includes:

information on the number and strength of the organization's competitors, whether they are potential or actual allies, patterns of aggressive growth versus static maintenance of market share, and the potential for customers to become competitors if they "insource" products or services previously purchased from the organization.

Enviromental Analysis

is a method use to gather information about extrnal issues and trends, so they can develop an organizational strategy that minimizes threats and takes advantage of new opportunites.

public issue

is any issue that is of mutual concern to an organization and one or more of its stakeholders

enviromental intelligence

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

Stakeholder engagement

is used to refer to this process of ongoing relationship building between a business and its stakeholders.

Successful stakeholder dialogue requires participants to Blank______. Multiple choice question. a. express only positive opinions b. focus on their personal demands c. develop solutions that protect the financial bottom line d. listen carefully and respectfully to others

listen carefully and respectfully to others

Political Environment includes:

structure, processes, and actions of all levels of government

The properties of competitive intelligence include _____. (Check all that apply.) - internal information - systematic - external information - continuous

systematic external information continuous

connectedness

the ability to engage with external stakeholders in dialouge and partership

Performance-Expectations Gap

the emergence of a new public issue often indicates there is a gap between what the firm wants to do or is doing and what stakeholders expect

The European Academy of Business in Society (EABIS) identified the most effective global leadership skills as Blank______. (Check all that apply.) - strong financial management capabilities - the skill to engage with external stakeholders using connectedness - the ability to lead in the face of complexity - understanding the changing business context

the skill to engage with external stakeholders using connectedness the ability to lead in the face of complexity understanding the changing business context

According to Nestle's Stakeholder Materiality Matrix in Figure 2.3, the priorities of issues for stakeholders are shown _____. Multiple choice question. a. vertically from the lowest priority on the bottom to the highest priority on the top b. horizontally from the highest priority on the left to the lowest priority on the right c. horizontally from the lowest priority on the left to the highest priority on the right d. vertically from the highest priority on the bottom to the lowest priority on the top

vertically from the lowest priority on the bottom to the highest priority on the top

A new public issue often indicates a performance-expectations gap between what stakeholders expect and Blank______. (Check all that apply.) Multiple select question. - what a company wants to do - what a company is currently doing - how often a firm reports earnings - how a firm advertises

what a company wants to do what a company is currently doing