Question 1

_________________ is the idea that because people live in a community, social rules should benefit the community.

Accepted Answer

A) The stakeholder interaction model 
B) Consumer protection 
C) The common good 
D) Sustainability 
E) Corporate governance

Question 2

A stakeholder orientation is not complete unless it includes

Accepted Answer

A) clear accounting procedures. 
B) major financing activities. 
C) marketing strategy. 
D) feedback from special-interest groups. 
E) activities that actually address stakeholder issues.

Question 3

The specific steps for implementing the stakeholder perspective do not include which of the following?

Accepted Answer

A) Identifying stakeholder groups 
B) Identifying stakeholder issues 
C) Identifying and gaining stakeholder feedback 
D) Identifying and gaining government feedback 
E) Assessing organizational commitment to social responsibility groups

Question 4

The degree to which a firm understands and addresses stakeholder demands can be referred to as

Accepted Answer

A) a stakeholder orientation. 
B) a shareholder orientation. 
C) the stakeholder interaction model. 
D) a two-way street. 
E) a continuum.

Question 5

The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is

Accepted Answer

A) reputation. 
B) corporate citizenship. 
C) corporate ethical audit. 
D) ethical citizenship. 
E) fiduciary duties.

Question 6

Compare and contrast the stakeholder and shareholder models of corporate governance.

Accepted Answer

The answer of Compare and contrast the stakeholder and shareholder...

Question 7

A stakeholder orientation can be viewed as a(n)

Accepted Answer

A) necessity for business success. 
B) continuum. 
C) polarizing concept. 
D) good marketing ploy. 
E) expensive proposition.

Question 8

Shareholders provide resources to an organization that are critical to long-term success. Which of the following does the book suggest that suppliers offer?

Accepted Answer

A) The promise of customer loyalty 
B) Material resources and/or intangible knowledge 
C) Infrastructure 
D) Revenue 
E) Leadership skills

Question 9

Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?

Accepted Answer

A) Employees 
B) Secondary stakeholders 
C) Primary stakeholders 
D) Investors 
E) Customers

Question 10

Why is ethical misconduct more difficult to overcome than poor financial performance?

Accepted Answer

The answer of Why is ethical misconduct more difficult to...

Question 11

Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist's theory are they following most closely with this belief?

Accepted Answer

A) Adam Smith. 
B) Archie Carroll. 
C) Jack Ma. 
D) Noel Biderman. 
E) Milton Friedman.

Question 12

Which of the following are not typically secondary stakeholders?

Accepted Answer

A) Television news anchors 
B) Special-interest groups 
C) Customers 
D) Trade associations 
E) Journalists

Question 13

Social responsibility rests on a stakeholder orientation. ​

Accepted Answer

A) True 
 B)False

Question 14

Board members being linked to more than one company is an example of

Accepted Answer

A) the stakeholder concept. 
B) the stakeholder model of corporate governance. 
C) interlocking directorate. 
D) conflict of interest. 
E) multiple directorate.

Question 15

​InDodge vs. Ford Motor Co., the court ruled that a business exists for the profit of shareholders, and the board of directors should focus on that objective.

Accepted Answer

A) True 
 B)False

Question 16

Major corporate governance issues normally involve _____ decisions. (Choose the response that is most correct)

Accepted Answer

A) strategic-level 
B) tactical-level 
C) divisional-level 
D) marketing-level 
E) accounting-level

Question 17

Which of the following are not typically primary stakeholders?

Accepted Answer

A) Customers 
B) Trade associations 
C) Employees 
D) Shareholders 
E) Suppliers

Question 18

Both directors and officers of corporations are fiduciaries for the shareholders. Fiduciaries are persons placed in positions of trust that act on behalf of the best interests of the organization. This is defined as

Accepted Answer

A) duty of oversight and loyalty. 
B) duty of care or a duty of diligence 
C) duty of control and audit. 
D) duty of confidence and leadership. 
E) duty of analysis and insight.

Question 19

A broader view of social responsibility​

Accepted Answer

A) ​views customers as the most important stakeholder. 
B) ​takes into account a shareholder orientation. 
C) ​prioritizes all stakeholders the same way. 
D) ​considers the long-term welfare of society. 
E) ​emphasizes adherence to law as the highest priority.

Question 20

The purpose of a stakeholder orientation is to

Accepted Answer

A) emphasize shareholders and provide them with a return on their investment. 
B) maximize positive outcomes that meet stakeholder needs. 
C) enhance the profitability of the firm. 
D) determine which stakeholders to address and which to ignore. 
E) allow stakeholders to determine the limits of executive compensation.

Exam 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance