Deck 3: Missioning and Visioning

Question 1

According to De Wit, when is stakeholder management seen as being instrumental?
A.When managing stakeholders is seen as a pragmatic approach, or technique, for dealing with the essential participants in the value-adding process
B.When managing stakeholders is based on the fundamental notion that the organization's purpose is to serve the stakeholders
C.When shareholders treat stakeholders with concern and respect
D.When stakeholders and shareholders have goals that may, or may not, be in alignment with each other.

Answer 1

When managing stakeholders is seen as a pragmatic approach, or technique, for dealing with the essential participants in the value-adding process

Question 2

What, according to the textbook, is the major emphasis of the stakeholder values perspective?
A.Means over ends
B.Worker participation over worker representation
C.Responsibility over profitability
D.Instrumentalism over normativism.

Answer 2

Responsibility over profitability

Question 3

Discussing the topic of different forms of corporate governance, the text refers to Tricker (1994).Which of the following characteristics does Tricker NOT put forward?
A.Board function
B.Board structure
C.Board membership
D.Board tasks.

Answer 3

Board function

Question 4

To which issue does the textbook refer, when it discusses the broader set of fundamental principles giving direction to strategic decision-making?
A.The issue of corporate governance
B.The issue of corporate profitability
C.The issue of corporate direction
D.The issue of corporate mission.

Question 5

Which of the following describes the 'performance function' of corporate governance
A.To ensure corporate conformance to the stated mission and strategy
B.To monitor whether the organization is undertaking the activities as promised, and whether the performance is satisfactory
C.To shape, articulate and communicate the fundamental principles that will drive the organizations activities
D.To judge the strategy initiatives brought forward by top management and/or, actively participate in strategy development.

Question 6

According to the textbook, what are the two major topics which raise discussion between proponents of the shareholder value, and stakeholder values perspectives?
A.The issues of corporate mission and corporate governance
B.The issues of strategy formulation and strategy implementation
C.The issues of short-term and long-term goals
D.The issues of economic, and legal, responsibilities of business organizations.

Question 7

The corporate mission of a firm defines the boundaries, within which, strategic choices and actions must take place.By specifying the fundamental principles, on which strategies must be based, the strategic options are limited, and set the firm on a particular heading.
According to the textbook, which function of the corporate mission is described above?
A.Direction
B.Legitimization
C.Motivation
D.Restriction.

Question 8

Which of the following is NOT listed as an element of corporate mission?
A.Organizational beliefs
B.Organizational direction
C.Organizational values
D.Business definition.

Question 9

Which of the following questions best reflects the corporate purpose, according to the text?
A.What are the driving ideas and assumptions?
B.Why does the firm exist?
C.Where does the firm operate?
D.What is of fundamental importance?

Question 10

In their initial discussion about organizational purpose, De Wit points out how advocates of the shareholder value perspective argue that:
A.Business strategies should be developed in accordance with the interests and values of the company's shareholders, banks, and government
B.Business strategies should be judged by the economic value created for those who invested risk-taking capital in the enterprise
C.Business strategies should be implemented so that investors/shareholders take a significant responsibility for the company's operations
D.Business strategy formulation and implementation are the responsibility of the corporate board of directors.

Question 11

According to the textbook, there is an obvious paradox in the organizational purpose of firms.How is this paradox referred to?
A.Target vs.vision
B.Profitability vs.responsibility
C.Shareholders vs.stakeholders
D.Charitable vs.societal.

Question 12

Which of the following describes the 'forming function' of corporate governance?
A.To ensure corporate conformance to the stated mission and strategy
B.To shape, articulate and communicate the fundamental principles that will drive the organization's activities
C.To judge the strategy initiatives brought forward by top management and/or, actively, to participate in strategy development
D.To monitor whether the organization is undertaking the activities as promised, and whether the performance is satisfactory.

Question 13

What are the three important corporate governance functions?
A.Controlling, monitoring, and supervising
B.Forming, performance, and conformance
C.Hiring and firing the CEO, determining the business philosophy, and setting priorities
D.Networking, organizing, and controlling.