Chapter 3 - MOS 4467 Test Bank PDF

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Test bank including questions for Professionalism and Ethics course (MOS 4467)...

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c3 Student: ___________________________________________________________________________ 1. In a pluralistic society, one institution is completely independent of the others. True False

2. Organizations must identify their stakeholders to obtain their resources and maintain their legitimacy. True False

3. A stakeholder is an individual, or group, who can influence and/or is influenced by the achievement of an organization's purpose. True False

4. Corporations must understand how their activities influence stakeholders but not how stakeholders can influence their activities. True False

5. It is the responsibility of the stakeholders to identify themselves to the organization. The organization does not need to identify stakeholders. True False

6. Owners always have a lot of influence over an organization. True False

7. The role of the board of directors is to determine the corporation's strategic direction, monitor and review performance, and hire and fire the top executives. True False

8. Every board of directors plays a substantial role in the organization and is considered insiders. True False

9. Employees are often considered the most obvious and, sometimes, the most important stakeholder. True False

10. Although customers are the source of revenue and should be treated carefully, corporations that are a monopoly do not need to focus on this stakeholder. True False

11. Lenders and Creditors are stakeholders that can be taken for granted because their influence is small as there are many lending institutions. True False

12. When an organization is able to obtain a particular material from several suppliers they are not dependent on that supplier. True False

13. Management consultants are not stakeholders because they are not employees of the company. True False

14. Competitors include organizations that produce substitute products and therefore should be monitored. True False

15. Joint-venture participants can also be called Lenders. True False

16. Service, Fraternal, Cultural, and Ethnic Associations can provide business contacts through volunteerism. True False

17. Government may play several roles as a stakeholder, such as media and lender. True False

18. Non-Governmental Organizations (NGOs) are those organizations, such as charities, run by the volunteer sector. True False

19. The concept of a stakeholder has broadened in time to include individuals or groups other than owners, government and labour. True False

20. Categorizing stakeholders into various groups, such as internal and external, is desirable because it helps managers strategize accommodations. True False

21. Derivative stakeholders are those from whom the corporation has not accepted benefits, but they hold power over the corporation and may exert either a beneficial or harmful influence. True False

22. Different stakeholders have different sources and expressions of power. When one stakeholder becomes too powerful, another stakeholder may act to counterbalance and restrict this power. True False

23. It is the responsibility of the board of directors, not the manager, to determine how to respond to stakeholders' power and pressures. True False

24. The Board of Directors determines the corporation's social responsibility initiatives. True False

25. Opponents to the stakeholder concept argue, in part, that considering broader social issues is not the mandate of a business in the capitalist system. True False

26. There is a tremendous amount of opposition to the stakeholder concept. True False

27. The "social market" lacks a clear corporate purpose necessary to meet corporate objectives. True False

28. An issue is a point in question where different views are held of what ought to be done by the corporation, based on stakeholder or management expectations. True False

29. Issues management refers not to social change, but to a process by which the organization responds to economic, social, and environmental issues. True False

30. One of the main issues pertaining to the automotive industry in Canada is Green Manufacturing. True False

31. One of the main issues in the banking industry today is executive compensation. True False

32. One of the main issues in the pharmaceutical industry today is unionization. True False

33. In order for the successful implementation of issues management there must be support from top management and broad participation at the staff levels. True False

34. Ideally, the issues management approach should be implemented quickly with a forceful, concentrated effort by senior level management leading the way. True False

35. Once an issue has progressed through the issue life cycle to the decline stage, it is considered to be resolved. True False

36. Early identification of an emerging issue that deals with conflicting value and interest is important. True False

37. Identifying issues can be done in many ways, for example, environmental scanning, social forecasting and public issues scanning. True False

38. The issues management process, while helpful, does not ensure that the most salient or critical issues are addressed. True False

39. An example of a crisis for management can be seen in the situation of XL Foods, operating in Brooks, Alberta, when it was discovered that E.coli was present in beef, but the plant was allowed to continue to operate for about ten days after that discovery. True False

40. One of the issues which resulted from the E.coli crisis at XL Foods was that the cattle industry was concerned about their future as consumers may purchase less beef, and that there may be damage to international markets. True False

41. In Fink's "Anatomy of a Crisis" it is argued that the outcome is not necessarily always negative, and that positive outcomes may result from a crisis. True False

42. The acute crisis stage is the point at which the situation resolves itself. True False

43. Norman Augustine formulated an alternative to Fink's anatomy using only three stages: avoidance, preparation, and resolution. True False

44. Government in Canada is very influential over corporate decision-making. ABC Corporation is negotiating with aboriginal groups regarding forestry practices in their region and the government is facilitating the process. Influence and power, in this case, is not held by any one institution and is dispersed. This example reflects the operation of a(n) __________ society. A. pluralist B. stakeholder C. issues-oriented D. business-oriented E. collective

45. The government of Canada recently sold off its remaining shares in Petro Canada. The government, in regards to this decision, is considered which type of stakeholder? A. Government B. Director C. Owner D. Consumer E. All of the answers are accurate.

46. Which of the following statements regarding employees as stakeholders is NOT true? A. Employees are individuals who work for the corporation. B. Managers are considered employees. C. Part time employment is becoming a more common strategy to hiring employees. D. Employees are considered one of the more obvious and, perhaps, most important stakeholders. E. All primary stakeholders can be considered employees.

47. When a news report came out in Saskatchewan that the beef supplier for Burgers R Us was not implementing hygienic practices, which of the following stakeholders may not have influenced Burgers R Us to change its approach to purchasing meat? A. The Current Supplier B. The Owners, Lenders, and Creditors C. The Customers and the General Public D. The Media E. The Government

48. Cathy drinks a lot of coffee to help her stay awake during midterms. She, however, will only purchase coffee that is produced under conditions that guarantee good working conditions for the labourers and respect for human rights and environmental protection. Cathy is a consumer of ______. A. Whole Foods Market B. Fairtrade products C. Product Red brand D. Boycotted products E. Green products

49. Janet is on the board of directors for SPT Corporation. Which of the following assumptions about Janet's involvement with SPT Corporation is not correct? A. Janet was elected by the shareholders to this role. B. Janet is not a shareholder of SPT Corporation. C. In her role as a board member, Janet is responsible for the functioning of SPT Corporation. D. Janet is a competitor of SPT Corporation. E. Janet's position on the board is not permanent.

50. Samuel has been asked by the manager of his department to compile a list of all the stakeholders relevant to the industry so that they can ensure that in the future all stakeholder interests are appropriately considered. Samuel spends the entire weekend on the task, but it looks like he will never finish the task. Which of the following is not a reason why Samuel is having difficulty? A. You cannot list all the stakeholders. B. Stakeholders influence shifts over time. C. New stakeholders emerge all the time. D. Their involvement varies between corporations. E. He is not on the best position to do the task.

51. Examples of primary stakeholders include all of the following, except: A. Creditors B. Customers C. Communities D. Competitors E. Unions

52. In determining where to locate a factory, BCS Corporation develops a list of stakeholders. Francois encourages the management to locate in a community with high unemployment because it will help a community become more economically stable. Mark states that it is important to consider whether the company will be able to arrange for raw materials to be shipped to the factory for production. Sarah notes that by relocating the firm should consider the environmental group, STOP, that used to picket the company, even though it hasn't been heard from for years. Which stakeholders should the company not necessarily consider in their decision? A. The environmental group, STOP B. Community in which they may locate C. Suppliers D. Media E. Government

53. In terms of categorizing stakeholders, primary interaction occurs with all of the following, except: A. Unions B. Creditors C. Media D. Suppliers E. Owners

54. Secondary interactions do not include: A. government B. the general public C. local communities D. business support groups E. investors

55. Normative stakeholders include all of the following, except: A. financers B. employees C. consumers D. suppliers E. competitors

56. Derivative stakeholders are all of the following, except: A. may exert harmful influences B. are those from whom the corporation has not accepted benefits C. are those to whom the organization has no obligation D. are typically financers E. have power over the corporation

57. ABC Corporation is a forestry company that is attempting to develop more sustainable approaches to forestry in order to preserve the land for use by future generations. They receive considerable support from mainstream environmental groups. Eco-terrorists, who will sabotage trees in such a way as to injure the forestry worker who is cutting the tree, do not believe that ABC Corporation is doing enough. Which of the following stakeholders should ABC consider in its decisions about forestry? A. Employees B. Mainstream environmental groups C. Eco-terrorism environmental groups D. Media E. All stakeholders should potentially be considered.

58. The manager is a unique stakeholder because she or he _____. A. can affect the organization B. can be a manager and shareholder C. is affected by the organization D. deals with the other stakeholders E. cannot be an employee

59. There is opposition to the stakeholder concept for all of the following reasons, except: A. They are difficult to categorize B. Each of them have different expectations C. Stakeholders often have contrary objectives D. Practicality of shared governance E. Dilution of top management focus

60. Frank thinks that it is inappropriate for his company, BSD Corporation, to spend valuable company time and resources on meeting with stakeholder groups. He, and others who oppose stakeholder involvement, identify the following rationale(s): A. Managing so many stakeholders diverts management's attention away from the business. B. Responding to stakeholders' interest does not produce loyalty. C. Corporations are not designed to benefit shareholders. D. It is necessary for business success. E. There is an agreement on priorities.

61. Advocates of the stakeholder concept: A. argue that an appreciation for stakeholders is fundamental to understanding how to make money. B. believe that responding to stakeholders is simply good business. C. feel it is necessary to not only recognize the interests of all stakeholders but also to promote the loyalty of other individuals and groups. D. believe that shareholders are a principal stakeholder. E. All of the above are true.

62. Following a media report highlighting a lack of hygienic meat handling practices by its suppliers, Burgers R Us realized they should have been engaged in _____________, a process to respond to the economic, social, and environmental problems that they might face in the future. A. stakeholder management B. issues management C. environmental management D. media control E. strategy

63. All of the following are main issues in the banking industry, except: A. executive compensation B. government regulation C. issues management D. service charges E. credit card charges

64. The purposes of issues management include all of the following, except: A. It is more systematic in dealing with concerns. B. It serves as an early warning system. C. It provides a framework for assessment. D. It provides a mechanism for coordination. E. It can prepare managers for most issues that can arise.

65. The benefits of issues management include all of the following, except: A. Reduces the firm's competitive advantage B. Corporate behaviour is more consistent with societal expectations C. Enables corporations to identify issues earlier D. Corporation's vulnerability is decreased E. Corporation's credibility is enhanced

66. The issue life cycle outlines stages through which an issue progresses. Those stages are: A. Introduction, growth, maturity, and decline B. Awareness, growth, prominent, threatening, and decline C. None or little, increasing, prominent, peak, and declining D. None or little, awareness, increasing, prominent, peak, and declining E. Introduction, growth, maturity, decline, and resolution

67. A furniture store has just discovered that the lumber used to make its furniture is from an ancient forest. Later that week they received a letter from an environmental group stating that all furniture stores using lumber from ancient forests are receiving this letter as a warning to find alternate sources for their lumber or the store will be picketed. This furniture store is in what stage of the issue life cycle? A. Peak B. Prominent C. Growth D. Increasing E. Awareness

68. Sable is excited about her new job. As marketing manager for NMO Corporation, she is hoping to help the company adopt more environmentally friendly packaging. She brings up the issue with the management team, who state that they had never given the issue much thought. NMO Corporation is at what stage in the issue life cycle? A. None or little B. Increasing C. Prominent D. Peak E. Declining

69. Jack recently purchased a small furniture store that specializes in handmade, high quality products. The company, when he purchased it, relied almost exclusively on wood from old growth forests. He temporarily closes the business until a supplier of sustainable wood products can be found. The company is at what stage of the issue life cycle? A. Peak B. Prominent C. Growth D. Increasing E. Awareness

70. When an organization is in the process of describing and evaluating an issue so that consensus is achieved among managers it is in which step of the issues management process? A. Identification of issues B. Analysis of issues C. Ranking or prioritizing of issues D. Formulating issue response E. Implementing issue response

71. When the available choices to the corporation are identified and evaluated they are in which step of the issues management process? A. Identification of issues B. Analysis of issues C. Ranking or prioritizing of issues D. Formulating issue response E. Monitoring and evaluating issue response

72. TMB Corporation has chosen to engage stakeholders in the decisions regarding plant expansion. The company has identified that stakeholders are concerned about many issues, so a team of employees spoke to multiple stakeholders to clarify the concerns. They determined which issues were most important to the stakeholders and a specific plan was formulated to act on the key issue. Once the specific plan is put into action from the available choices, the corporation is in the _____________ step of the issues management process. A. identification of issues B. ranking or prioritizing of issues C. formulating issue response D. implementing issue response E. monitoring and evaluating issue response

73. Who is the author of "Anatomy of a Crisis"? A. Adam Augustine B. Johnathan Berstein C. Adam Smith D. Steven Fink E. Norman Augustine

74. The four stages proposed in the Anatomy of a Crisis are: A. Prodromal, acute, chronic, and resolution B. Pre-crisis, mid-crisis, post-crisis, and peak-crisis C. Prodromal, peak, acute, and continuous D. Pre-acute, acute, pre-chronic, and chronic E. Prodromal, resolved, crisis, and peak

75. In which stage of the Anatomy of a Crisis does the corporation receive some warning, however subtle, that a crisis is lurking? A. Prodromal B. Peak C. Chronic D. Pre-chronic E. Resolution

76. An alternative to the Anatomy of a Crisis, called the Six Stages of Crisis Management, was developed by: A. Adam Augustine B. Johnathan Berstein C. Adam Smith D. Steven Fink E. Norman Augustine

77. Describe the acute crisis stage of the Anatomy of a Crisis.

78. What are the six stages of crisis management as formulated by Norman Augustine?

79. List the six steps of the typical issues management process.

80. Outline the benefits to practicing issues management.

81. List the main ethical issues in the automotive industry.

82. What are the main arguments from those who oppose the stakeholder concept?

83. What are the arguments for and against the recognition of the environment as a stakeholder?

c3 Key

1. (p. 48) In a pluralistic society, one institution is completely independent of the others. FALSE

Difficulty: Easy Learning Objective: 03-01 Recognize business as one institution in society and understand that its activities are influenced by other institutions and individuals referred to as stakeholders. Sexty - Chapter 03 #1

2. (p. 49) Organizations must identify their stakeholders to obtain their resources and maintain their legitimacy. TRUE

Difficulty: Moderate Learning Objective: 03-02 Define and identify the corporation's stakeholders generally and the stakeholders relating to particular issues confronting the corporation. Sexty - Chapter 03 #2

3. (p. 48) A stakeholder is an individual, or group, who can influence and/or is influenced by the achievement of an organization's purpose. TRUE

Difficulty: Easy Learning Objective: 03-02 Define and identify the corporation's stakeholders generally and the stakeholders relating to particular issues confronting the corporation. Sexty - Chapter ...