MGMT 003 Last Minute Mid Term Prep
The effect of a transaction between two parties on a third party who is not involved in the transaction.
The environmental, social, and economic impacts of producing a good or service that are not directly reflected in the market price.
Pollution by a firm in the course of its production which causes nuisance or harm to others.
As a situation where the market will end up producing too much of a good than what is socially optimal.
Obligation and accountability.
Action and Activity
Outcomes and results.
Socially responsible investing
Big business and highly visible industries.
All business and all industries.
Small business and highly visible industries.
None of the above.
Primary social stakeholders.
Primary non-social stakeholders.
Secondary social stakeholders.
Secondary non-social stakeholders.
The third sector.
The free market economy.
Social, ethical and political
A collection of different perspectives of the firm.
A compilation of the views held by all of the firm’s stakeholders.
The ability of the firm to exert enormous pressure on its stakeholders.
The ability of the firm to engage its stakeholders to settle disagreements on an amicable basis.
The terms of the debate are not clearly defined.
The issue does not lend itself to resolution by expert knowledge.
The issue deals with matters of conflicting values and interests.
Trade-offs are not yet needed.
It is very time consuming.
Managers are not trained in this type of management.
Ranking of stakeholder claims is very difficult.
It increases the complexity of decision-making.
The social environment.
The natural environment.
The economic environment.
The political environment.
Scrutiny and criticism.
Shared understandings between the business and society.
Competitive with returns from other investments.
Higher than returns from other investments.
Slightly lower than returns from other investments.
Much lower than returns from other investments.
Show how it can help improve the firm’s bottom line.
Link achievement of the manager’s goals to public affairs.
Provide clear assessments of the public affairs facing the manager.
Invite managers to regular public policy debates.
Continual control of responses to ensure that they remain on track.
Extensive cost/benefit analyses.
Deciding what to do about the issues the firm faces.
Appointing a separate team within the public affairs office to perform the control function.
Providing a conceptualization that could lead to better managed social performance.
Providing answers to specific social problems.
Using it as a planning tool.
Identifying categories within which the organisation can be situated.
Corporate public policy is a firm’s posture or position regarding the public, social, global, and ethical aspects of stakeholders and corporate functioning.
There is a growing consensus that ethics should be a central component of strategic management.
Corporate public policy takes place primarily at the corporate level of strategy.
Enterprise-level strategy and societal-level strategy are synonymous.
a. a gap between society’s expectations of social conditions and current social realities.
b. a gap between society’s expectations of social conditions and those of the federal government.
c. a gap between society’s expectations of social conditions and technological reality.
d. a gap between society’s expectations of social conditions and environmental conditions.
a. children in need must receive social benefits.
b. ecological problems are more important than economic problems.
c. company owners are entitled to preference over other stakeholders.
d. a person is owed something simply because he or she is a member of society.
a. centered only at the individual firm level.
b. most effectively used by groups of firms.
c. the ability to influence or produce an effect in a given situation.
d. the assurance that the firm’s preferences will prevail in the marketplace.
a. the revolution of rising expectations.
b. a social contract.
c. business power.
a. uses the Council on Economic Priorities’ criteria for determining if a company is ethical or not.
b. uses social or ethical criteria, as well as financial criteria, to make investment decisions.
c. is declining in the 21st century.
d. is appealing to investors because returns are almost always higher.
a. A company obeys laws that have been passed limiting the amount of pollution discharged into the air.
b. A company anticipates the need for a day-care center for its employees’ children, and opens one adjacent to its office building.
c. A company sees that its competitors are sponsoring several youth sports teams and decides that its image will be enhanced if it also sponsors some teams.
d. After receiving many complaints about inferior products from their customers, a company improves the quality of its goods.
a. A company’s reputation in the marketplace
b. Social responsibility categories
c. Mode of social responsiveness
d. Social issues being considered
a. to increase financial returns to the business.
b. to improve the image of corporations.
c. to ward off government intervention.
d. that it is easier than fighting society’s demand for ethical business practices.
a. the financial bottom line is irrelevant, so other bottom lines should be utilized.
b. companies should report their results of operations on the bases of both historical cost and current values.
c. both financial and ecological results should be reported to the public.
d. there are three key spheres of sustainability — economic, social, and environmental.
a. suppliers and customers.
b. suppliers, customers, employees, and owners.
d. all individuals and groups who are affected by, or can affect the company.
a. views stakeholders as entities who have economic or legal power.
b. holds that managers have the same types of duties to stakeholders and owners.
c. views stakeholders as groups to be managed for the financial benefit of the company.
d. views external stakeholders as obstacles to the financial goals of the firm.
a. Who are our stakeholders?
b. What are our stakeholders’ stakes?
c. What opportunities and challenges do the stakeholders present to the firm?
d. What responsibilities do the stakeholders have to the firm?
a. vital to the organization and the particular set of threats and opportunities the firm faces.
b. all stakeholders that are important to the firm’s future.
c. the same as primary social stakeholders.
d. essential for the survival of the organization.
a. the process level.
b. the transactional level.
c. the identity level.
d. the rational level.
a. social responsibility.
a. golden parachutes.
b. poison pills.
c. the separation of ownership from control.
a. executives’ pay packages are closely related to the firm’s financial performance.
b. executives’ pay packages are inversely related to the firm’s financial performance.
c. executives’ pay packages often go up even if the firm’s financial performance falls.
d. executives’ pay packages have remained level for the past decade.
a. increase the number of directors.
b. hire celebrity directors to assure the legitimacy of the firm.
c. increase the diversity on the board.
d. appoint union members to the board.
a. The rise of shareholder activist groups
b. Public shareholder meetings
c. Shareholder resolutions
d. Shareholder lawsuits
a. a method of motivating employees.
b. the same thing as public policy.
c. the set of all management decision-making.
d. the overall management process that relates a firm to its environment.
a. Strategy formulation
b. Strategy implementation
c. Environmental analysis
d. External affairs management
a. There is little relationship between the two at the present time, but there could be.
b. Firms with high ethical standards are not strategically well managed.
c. Ethics and strategy must be analyzed and formulated separately.
d. For business ethics to have any real meaning, it must be linked to strategic management.
a. is outdated.
b. is rooted in the social activism of the 1960s and 1970s.
c. is a result of the growth of corporations after World War II.
d. was first suggested by consumer advocates.
a. Conventional approach
b. Strategic management approach
c. Crisis management approach
d. Public affairs approach
a. to explain issues management.
b. in the area of trend-spotting services.
c. highlighting the increase in corporate crises during the second half of the 20th century.
d. to prioritize the trends of the 21st century.
a. probability-impact matrix.
b. stakeholder analysis.
c. political analysis.
d. issue identification.
a. Leading political jurisdictions, media coverage, felt need, regulation/litigation.
b. Regulation/litigation, felt need, media coverage, leading political jurisdictions.
c. Media coverage, felt need, leading political jurisdictions, regulation/litigation.
d. Felt need, media coverage, leading political jurisdictions, regulation/litigation.
a. Reply truthfully.
b. Refuse to press for what is not good public policy.
c. Never retreat.
d. Respect the opposition’s concerns.
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