MGMT 3880 Chapters 1-6

Public issues are considered broad in nature because they____

Are a concern to a significant number of people

Some argue that managers are stakeholders of a firm because they _____

Are employed by the firm Benefit from the company Are impacted by a firm's decisions.

Symantec's stakeholder Materiality Matrix, the priorities of issues for stakeholders are shown

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

Where can a company search for reliable stakeholder issues?

10-K Filings Mission statements Websites

What does Rating Research's reputation index measure?

A firm's social reputation

the reputation of a firm refers to which company characteristic?

Desirable and undesirable qualities

Corporate /Global Citizenship

Intergovernmental compacts NGO dialogue

Owners of an organization are called ___________.

Stakeholders and shareholders

Stakeholders Theory

Take all stakeholders' interest into account Create value for society.

How did Keurig Green Mountain respond to reports of period burn-related injuries?

The company recalled over seven million brewing machines.

The iron law of responsibility is defined as _________

Those who do not use power in a socially responsible way will tend to lose power

The term stakeholder salience is correctly defined by which statements?

-The greater the salience, the more the stakeholders will be noticed -Is is a stakeholder that stands out from the crowd.

A new public issue often indicates a performance-ecpectations gap between what stakeholders expect and _____

-What a company wants to do -What a company is currently doing

In the United States, when id the idea of corporate social responsibility fist begin?

20th century twentieth century

A valid business is illustrated by which examples?

A woman selling homemade tortillas by the roadside An organization that markets tax services A major oil refinery

The term society is accurately described by which statements?

All of humankind Nations A collective social structure

A for-profit business model that blends social and financial goals for the purpose of solving social problems is called an_______

B corporation

identify the differences between a B corporation and a benefit corporation?

B corporations are certified entities, bet benefit corporations are incorporated B corporations must achieve a minimum performance score to retrain their status, but benefit corporations self-report their progress

What is the current business trend in managing social, economic, and legal responsibilities?

Balancing the need to meet all social, economic and legal challenges

Companies there guided by enlightened self-interest tend to have what kind of interactions with heir stakehodlers

Being more open to stakeholder expectations Cooperating with legislators Working closely with governmental regulators.

Stakeholders expectations regarding reasonable business behavior are generally based on people's _________

Beliefs, attitudes and opinions

When individuals or groups play multiple stakeholder roles, this is called ____

Business role set

Corporate stakeholder engagement is defined as the process of ongoing relationships between ________

Businesses and customers Businesses and the government

In which ways do businesses interact with society?

Businesses employ workers Consumers buy products Businesses pay income taxes

Corporate/Business ethics

CEO leaderships ethics Mission statement

What is the critical difference between using social media for stakeholder engagement over traditional communications?

Communications are faster and more effective.

When managers are flexible, creative and learn from mistakes, they are addressing which aspect of emerging public issues

Complexity

The capability of corporations to influence government, the economy, and society, based on their organizational resources is termed:

Corporate power

Emerging trends in corporate citizenship management include ________

Creating consolidated CSR departments that deal with all social issues Recognizing that in the long run, stakeholders and community interests typically intersect.

A recent BSR survey found the the goal of most corporate citizenship managers is o integrate CSR with a company's ______

Culture, Operations and Values

When a supplier refuses to fill an older , is is using which type of stakeholder power?

Economic

When a supplier refuses to fill an order, is is using which type of stakeholder power?

Economic

Give stages of global corporate citizenship. Least to most developed stage:

Elementary-Stage 1 Engaged Innovative Integrated Transforming -Stage 5

Ethical business behavior: Sets high standards of behavior for all employees Community: Invests in the communities in which the corporation operates Consumer: Offers quality products and services

Employee: Provides a family friendly work environment Investor: Strives for a competitive return on investment Supplier: Engages in fair trading practices with suppliers Environment commitment: demonstrates a commitment to sustainable development

The negative effects or corporate power can include _______

Employment reduction Price fixing Political manipulation

The concept of providing stakeholders vale hat results in a firm's long run self interest is called ________

Enlightened self-interest

What is the primary motivator for companies to publish social responsibility reports?

Ethical

The search for competitive intelligence sometimes causes which boundaries to be crossed?

Ethical and legal

Environmental analysis

Evaluating external issues and trends Developing a strategy to minimize the threat of external issues

The properties of competitive intelligence include ______

External information Continuous Systematic

On a stakeholder map we see firms X, Y, and Z graphed in order from low to high. Which firm has the greatest salience.

Firm Z

The general systems theory states that businesses must do what to survive?

Form an interactive social system with society Be willing to change and evolve

The global Reporting Initiative GRI asks companies to integrate which functional area of their long term corporate performance?

Governance Economic

Some argue that the government is a market stakeholder of business because ________

Government has acquired direct ownership of a few businesses Some businesses do conduct market exchanges with government.

Some argue that the government is a nonmarket stakeholder of business because _______________.

Government provides subsidies to businesses Businesses pay taxes and fees tot he government Direct buying and selling between government and business is infrequent.

The term stakeholder is correctly defined by which statements?

Groups that affect an organization Derives from having a claim on a business enterprise Groups that are effected by an organization

The Global Reporting Initiative (GRI) Guidelines are characterized by which of these statements?

Guidelines provide common metrics for firms to compare their social results with other firms Many global businesses representatives work together to define the guidelines

The positive effects of corporate power can include ________

Helpful products Economic Opportunities Useful Technologies

The benefits of publishing social audit performance results includes ________

Helping businesses gauge social progress Improving the firm's overall performance Identifying stakeholder needs

Which boundary-spanning department would most likely interface with union representatives?

Human Resources

What roles does social media play in stakeholder engagement?

Identifies problems Shares information Tracks customer suggestions

Step that anticipates emerging concerns at the top of the list

Identify Issues Analyze issues Generate options Take action Evaluate results

According to the Foundation for Public Affairs, the majority of corporate budget used for remediation of public issue since the mid -2000s has _______

Increased or stayed the same

A customer posting a negative review of a purchased product s using which type of stakeholder power?

Informational

What criterion does Rating Research use to calculate a firm's reputation index?

Intangible assets

Explain the primary difference between internal and external stakeholders of a firm

Internal stakeholders directly contribute their effort and skill inside the firm

The concept of a public issue is characterized by which statements?

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

Major corporations influence the community in what ways?

Job creating Tax base Standard of living

Which aspect of stakeholder salience refers to the degree of broad societal acceptance?

Legitimacy

succesful stakeholder dialogue requires participants to _________

Listen carefully and respectfully to others.

A company called Trans plans to close a manufacturing plant in Community A and relocate is to Community B, where labor costs are lower. Which stakeholders are likely to oppose this plan?

Local government in Community A Employees in Community A

When firms do not engage with their stakeholders over public issues, what risks do they run?

Lost or reduced sales

Why is addressing economic performance no longer enough for business

Many investors link economic performance to social issues

Competitive intelligence can be sued to create business strategies for ______

Marketing Financial investing Research and development

Ownership theory

Maximize financial profit Owners' interests take precedence over others

Environmental Intelligence

May be formal or informal process Helps an organization avoid crisis Scanning the customer environment

The Community Relations department typically interacts with which stakeholders?

NGOs Volunteers

Globalization-Global Evolving government regulations: Political dynamic natural environment: ecological

New technology and innovation: Technological Growing emphasis on ethics: Ethical Changing societal expectations: Social

In addition to saying its the right thing to do, this argument for the stakeholder theory of the the firm claims that all stakeholders contribute value to the organization.

Normative argument

The general systems theory is best described by which statements?1

Organisms interacting with heir external environment Organisms and their environment working together Plants interacting with soil, light, oxygen and moisture

What are the drivers of stakeholder engagement?

Organizational capacity Motivation Goals

A fruit grower has received many complaints about its heavy use of pesticides. Which stakeholders would likely form a coalition to support the grower

Pesticide suppliers Competitors who use pesticides

The horizontal axis of a stakeholder map represents each stakeholder's

Position on an issue.

Inactive: Company ignores stakeholder concerns Reactive: Company takes action only when forced

Proactive: Firms scan the external environment to anticipate stakeholder concerns Interactive: Firms actively engage with stakeholders with respect to openness.

The stakeholder theory of the firm is exemplified by which business actions

Professional training for employees New and improved products for customers

When a business applies resources to social programs, some argue that they risk lowering their _________

Profits and operating efficiency

Corporate social stewardship

Public relations Philanthropic funding

A major trend in corporate social reporting is:

Punishing a single integrated report that combines legally financial data with social and environmental results.

An online shopping firm performs a stakeholder analysis to guide them in updating their website technology. Which stakeholder would be irrelevant

Retailers

What is the primary purpose for government requiring an independent certification of B corporations?

So the firm proves they are socially responsible, not just making a claim.

Corporate social responsiveness

Social audits Regulatory compliance Political lobbying

Customer: considers demographic factors Competitor: Includes the number and strength of rivals Economic: evaluates international trade conditions Technological: Fast access to information

Social: Cultural patterns values, beliefs, trends and conflicts in society Political: Local, state national and International governments Legal: Patents, copyrights, trademarks, intellectual property, antitrust laws Geophysical: The dependency and impact of natural resources on a firm

A firm called Star performs a stakeholder analysis of their supplier Deliveries, their competitor ShineOn, and their creditor LoanMe. Which firm is the focal organization.

Star

How does the CSR improve stakeholder relationships?

Stronger community ties More appealing products for customers Higher quality employees

Corporate Social responsibility (CSR)

Term means to pledge back harm to society should be correected

What advantage does competitive intelligence offer managers?

The ability to make informed decisions

Issue management at Public is correctly described by which of the following?

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

Within stakeholder analysis , the focal organization is the ________________

The one conducting the analysis

The European Academy of Business in Society (EABIS) identified the most effective global leadership skills as_____

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

T/F: The more money a company puts towards corporate social responsibility , the greater the possibility of putting themselves at a competitive disadvantage in the short term.

True

T/F: The purpose of environmental analysis is for firm's to identify, monitor, and evaluate public issues that may require action from the company.

True

During stakeholder analysis, what is the first question that must be answered once an issue is identified?

Who are the relevant stakeholders?

An example of a role is when someone performs which actions?

Works at a company Lives in the same community as their employer Owns some company stock

Market stakeholder relationships are based on___________

an economic transaction

The importance of a stakeholder to a firm is called stakeholder _________

materiality

Failure to understand a firms stakeholder concerns can result in______

missed business opportunities

Corporate Citizenship

term represents actions to put social commitments into practice It can be applied worldwide through corporate citizenship