Deck 3: The Stoikt:holdc:r Approach to Businssotit:l, and Elhics

Question 1

The assumption underlying the instrumental value of the stakeholder model is that effective stakeholder management should lead to achievement of traditional business goals such as profits and growth.

Answer 1

True

Question 2

For sustainable development to become a reality,which approach offers the best opportunity for this to happen?

A)Socioeconomic
B)Stakeholder
C)Shareholder
D)Organizational

Answer 2

B

Question 3

The corporation is currently viewed as having a specialized purpose of providing a profit through the provision of goods and services.

Answer 3

False

Question 4

The stakeholder model has normative value because it emphasizes how stakeholders should be treated.

Question 5

Because stakeholder challenges usually contain a risk of damage to the finn,they are given more attention than stakeholder opportunities in the textbook.

Question 6

A major distinction between the managerial view of the firm and the stakeholder view is the recognition that groups who think they have a stake in the firm are properly included as stakeholders,whether managers of the firm agree with them or not.

Question 7

The use of generic groups to answer the question "Who are our stakeholders?" is generally sufficient for businesses.

Question 8

The primary factor behind the transition from a relatively simple business model to the highly complex state we now have is public recognition that the business organization is no longer the sole property or interest of its owners.

Question 9

The key to effective stakeholder management is in its implementation.

Question 10

A major criticism of the stakeholder management approach is that it is extremely complex and time consuming.

Question 11

Some authors now argue that stakeholder inclusion is the key to corporate success.

Question 12

Before managers in the firm can identify what stakes are held,they must first identify who the stakeholders are.

Question 13

Once stakeholders have been identified,the firm can safely assume that they will remain the same for several years.

Question 14

The primary element in the concept of the stakeholder corporation is that stakeholders should be granted ownership positions in the firm relative to their power over the firm.

Question 15

The descriptive value of the stakeholder model is based in its ability to identify and describe particular stakeholders for the finn.

Question 16

The stakeholder view of the finn is now universally accepted.

Question 17

The transactional level of stakeholder management capability requires companies to compete on the basis of their financial strength and tangible assets.

Question 18

To get a corporation to respond to its demands a stakeholder must hold all three attributes of power,legitimacy,and urgency.

Question 19

The primary strategy for a manager relative to a marginal stakeholder is to monitor that group.

Question 20

One of the reasons that the stakeholder model is becoming more popular is because the stakeholder environment is finally cahning down after several decades of turbulence.

Question 21

Which of the following statements is accurate?

A)Stockholders are the same thing as stakeholders.
B)All stakeholders are stockholders.
C)Stakeholders are a subset of stockholders.
D)Every stockholder is a stakeholder.

Question 22

Which of the views of the firm recognizes the fewest stakeholders and is the least complex?

A)production view
B)managerial view
C)ownership view
D)stakeholder view

Question 23

Business organizations must address the legitimate needs and expectations of stakeholders because

A)it is required by law.
B)it is the right thing to do.
C)stakeholders force them to.
D)they will need to,in order to be successful in the long run.

Question 24

If we consider the stakeholder typology,and the three attributes of power,group number eight on the outside is called:

A)A defrnitive stakeholder
B)A dangerous stakeholder
C)A demanding stakeholder
D)A nonstakeholder

Question 25

The view of the firm that recognizes just suppliers and customers as stakeholders is the

A)production view.
B)managerial view.
C)ownership view.
D)stakeholder view.

Question 26

If we consider the stakeholder typology,and the three attributes of power,group number one on the top outside is called:

A)A dormant stakeholder
B)A dangerous stakeholder
C)A demanding stakeholder
D)A nonstakeholder

Question 27

A group of people who represents the interests of a nonhuman species (such as the natural environment)and does not have a direct stake in the finn is known as

A)primary social stakeholders.
B)secondary social stakeholders.
C)primary nonsocial stakeholders.
D)secondary nonsocial stakeholders.

Question 28

Which of the following is not recognized as a type of stake?

A)an interest
B)an option
C)a right
D)ownership

Question 29

The view of the firm that recognizes a wide variety of groups as stakeholders is the

A)production view.
B)managerial view.
C)ownership view.
D)stakeholder view.

Question 30

Which of the following is not an attribute upon which managers judge the importance of stakeholders?

A)power
B)urgency
C)legitimacy
D)nationality

Question 31

Which of the views of the firm recognizes the most stakeholders and is the most complex?

A)production view
B)managerial view
C)ownership view
D)stakeholder view

Question 32

A group of people who holds a direct stake in the finu is known as

A)primary social stakeholders.
B)secondary social stakeholders.
C)primary nonsocial stakeholders.
D)secondary nonsocial stakeholders.

Question 33

An interest or share in something is referred to as a(n)

A)option.
B)ownership position.
C)stake.
D)bond.

Question 34

Some authors indicate that the corporate model needs redefinition because of all the following except

A)Business size
B)Socioeconomic power
C)Inadequacy of the ownership model and its implications
D)Responsiveness

Question 35

A group of people who is able to influence the finn,but does not hold a direct stake in is known as

A)primary social stakeholders.
B)secondary social stakeholders.
C)primary nonsocial stakeholders.
D)secondary nonsocial stakeholders.

Question 36

If we consider the stakeholder typology,and the three attributes of power,group number seven in the very center is called:

A)A defrnitive stakeholder
B)A dormant stakeholder
C)A dependent stakeholder
D)A discretionary stakeholder

Question 37

Any type of stake can be viewed as a(n)

A)option.
B)ownership position.
C)right.
D)duty.

Question 38

The view of the firm that recognizes suppliers,customers,employees,and owners as stakeholders is the

A)production view.
B)managerial view.
C)ownership view.
D)stakeholder view.

Question 39

An individual or group who can affect or be affected by an organization is a(n)

A)stakeholder.
B)stockholder.
C)shareholder.
D)owner.

Question 40

A nonhuman species (such as the spotted owl)that holds a direct stake in a firm is called a

A)primary social stakeholder.
B)secondary social stakeholder.
C)primary nonsocial stakeholder.
D)secondary nonsocial stakeholder.

Question 41

Which of the following is not considered an important function of stakeholder management?

A)to lead
B)to understand
C)to analyze
D)to manage

Question 42

Responsibilities for stakeholder management include all of the following except

A)social.
B)ethical.
C)philanthropic.
D)economic.

Question 43

Recognition that all stakeholders depend on each other for their success and financial well-being is a concept known as

A)stakeholder synthesis.
B)interdependency.
C)mutual benefit analysis.
D)stakeholder symbiosis.

Question 44

Which of the frrm's social responsibilities is not relevant in analyzing management's duties to stakeholders?

A)economic
B)legal
C)ethical
D)philanthropic

Question 45

Which of the following is not seen as a value of the stakeholder model of the firm?

A)It is descriptive.
B)It is instrumental.
C)It is judgmental.
D)It is normative.

Question 46

The view of stakeholders that sees them as more than just people or groups who can wield economic or legal power is the

A)strategic approach.
B)multifiduciary approach.
C)symbiotic approach.
D)stakeholder synthesis approach.

Question 47

Describe the origin of stake and stakeholder.

Question 48

Which of the following is not a strategy or action alternative in best addressing stakeholders?

A)Deal directly or indirectly
B)Take offense or defense
C)Collaborate or participate
D)Manipulate or resist

Question 49

Which of the following is not listed as a question to ask in order to gain the essential information needed for stakeholder management?

A)Who are our stakeholders?
B)What do our stakeholders want?
C)What are our stakeholders' stakes?
D)What opportunities and challenges do our stakeholders present to the frrm?

Question 50

The challenges of stakeholder management include all of the following except

A)assuring that the firm's primary stakeholders achieve their objectives.
B)seeing to it that the finn's secondary stakeholders are treated ethically and are relatively satisfied.
C)making the finn profitable.
D)maintaining strong relations with goverrnnental stakeholders.

Question 51

Stakeholders who have a high potential for cooperation and a low potential for threat to the frrm are known as stakeholders.

A)mixed blessing
B)supportive
C)nonsupportive
D)marginal

Question 52

The recommended strategy for nonsupportive stakeholders is to

A)monitor them.
B)defend against them.
C)involve them.
D)collaborate with them.

Question 53

Stakeholder management capability is thought of in three levels.Which is considered the highest level?

A)the rational level
B)the process level
C)the intangible level
D)the transactional level

Question 54

A stakeholder's ability or capacity to produce an effect within the finn is called its

A)power.
B)legitimacy.
C)urgency.
D)coercion.

Question 55

The degree to which a stakeholder's claim requires immediate response is its

A)power.
B)legitimacy.
C)urgency.
D)coercion.

Question 56

Which of the following is not a valid criticism of stakeholder management?

A)It is very time consuming.
B)Ranking of stakeholder claims is very difficult.
C)Managers are not trained in this type of management.
D)It increases the complexity of decision-making.

Question 57

Which of the following is not a strategic step toward successful stakeholder management?

A)integrating stakeholder management into the finn's governing philosophy
B)setting goals for stakeholder inclusion
C)creating a stakeholder-inclusive values statement
D)implementing a stakeholder performance measurement system

Question 58

The perceived validity or appropriateness of a stakeholder's claim is referred to as

A)power.
B)legitimacy.
C)urgency.
D)coercion.

Question 59

Stakeholders that are perceived to have high levels of power,legitimacy,and urgency are referred to as

A)dormant stakeholders.
B)demanding stakeholders.
C)discretionary stakeholders.
D)defmitive stakeholders.

Question 60

The view of stakeholders that recognizes the finn's responsibilities to all stakeholders,but sees them as separate types of groups,with different duties to each,depending on whether they have an ownership stake or not,is called the

A)strategic approach.
B)multifiduciary approach.
C)symbiotic approach.
D)stakeholder synthesis approach.

Question 61

Stakeholder management,with its normative content,holds out the promise of positive outcomes to the fmns that use it.Discuss some of these expected outcomes and evaluate their likelihood of occurrence and their importance to the
fmn.

Question 62

Explain what the concept of tapping the expertise of stakeholders means.

Question 63

Summarize the principles of stakeholder management.

Question 64

Stakeholders present both opportunities and challenges to the firm.Why does the textbook choose to focus only on the challenges?

Question 65

Describe the levels of stakeholder management capability.

Question 66

Stakeholder management does not specify how managers should view the function of stakeholders.Some view stakeholders as just additional groups to be managed for the benefit of the firm and its owners.Others view stakeholders as groups to whom the firm has certain responsibilities that are equally important to duties owed to
owners.Discuss this issue and defend your stance.

Question 67

Considering the textbook example of Switzerland scientists,and looking at the examples of primary and secondary social and nonsocial stakeholder,distinguish between social and nonsocial stakeholders.Does your defmition of the
difference seem useful to you? Why or why not?

Question 68

A major factor in support of stakeholder management is stakeholder culture.Explain how various cultures impact stakeholder management.

Question 69

Are the natural enviromnent and nonhuman species properly considered stakeholders of the firm? Defend your
answer.

Question 70

The textbook provides an example of stakeholder attributes when it discusses the case of Horne Depot,old growth wood,and environmental activists.Discuss this case in terms of the envirornnental group's legitimacy,power,and
urgency.

Question 71

This chapter of the textbook has made a strong case for the use of stakeholder management.Discuss reasons why firms may choose not to utilize this model.

Question 72

Who are the stakeholders of the college or university where you are taking this class? Provide a list and discuss their relative importance to the school.

Question 73

Compare and contrast the strategic,multifiduciary,and synthesis approaches of stakeholder management.

Question 74

Discuss how PETA is making itself a stakeholder in the wool industry.

Question 75

The diagnostic typology of organizational stakeholders categorizes stakeholders by their perceived level of cooperation and/or threat.Explain how this typology works and evaluate its usefulness.