MGMT 003 Last Minute Mid Term Prep – Flashcards
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After the safety of the Mass Rapid Transit system in Singapore was questioned by the public after several fatal incidents, the recent installation of platform screen doors at all relevant stations can be viewed as planning for Disaster recovery. Crisis communication Emergency response Crisis prevention
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Crisis prevention
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The Walt Disney Company., under its former CEO Michael Eisner, would most probably have viewed the stakeholder approach as Strategic. Multifiduciary. Stakeholder synthesis. Stakeholder disintegration.
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Strategic.
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In The Corporation, Milton Friedman described externality as 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.
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The effect of a transaction between two parties on a third party who is not involved in the transaction.
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All of the following are types of stakes EXCEPT An interest. An awareness. A right. Ownership
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An awareness.
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Corporate social performance emphasizes Obligation and accountability. Action and Activity Outcomes and results. Socially responsible investing
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Outcomes and results.
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The examination of business and its relationship to society typically focuses on Big business and highly visible industries. All business and all industries. Small business and highly visible industries. None of the above.
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Big business and highly visible industries.
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What stakeholders have a direct stake in the organization and its success but usually these stakeholders are not able to be communicated with directly? Primary social stakeholders. Primary non-social stakeholders. Secondary social stakeholders. Secondary non-social stakeholders.
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Primary non-social stakeholders.
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_________ refers to the degree to which the stakeholder claim on the business calls for the business' immediate attention or response. Power. Legitimacy Urgency Proximity.
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Urgency
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The strategic management approach to issues management takes a ____ view of the process. Historical Futuristic Broad Narrow
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Broad
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The collection of private, commercially oriented organizations, ranging in size from sole proprietorship to large corporations is referred to as The third sector. Business. The free market economy. Capitalism.
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Business
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The most dramatic growth in importance of issues has been in ____ issues. Military Practical Financial Social, ethical and political
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Social, ethical and political
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The reputation of a firm is 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.
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A compilation of the views held by all of the firm's stakeholders.
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Emerging issues have all of the following characteristics EXCEPT 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.
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Trade-offs are not yet needed
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All of the following is a valid criticism of stakeholder management EXCEPT 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.
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Managers are not trained in this type of management.
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Segments of business's macroenvironment include all of the following EXCEPT The social environment. The natural environment. The economic environment. The political environment.
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The natural environment.
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Major institutions in a pluralistic, special-interest society will inevitably receive Praise. Special favors. Scrutiny and criticism. Tax advantages.
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Scrutiny and criticism.
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Which of the following is not an element of the social contract? Law. Employment contracts Regulations Shared understandings between the business and society.
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Employment contracts.
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Financial returns from socially conscious investment funds are 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.
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Competitive with returns from other investments.
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If we conceptualize stakeholder groups as a series of concentric circles, the group in the outside ring is called Core stakeholders. Strategic stakeholders. Ancillary stakeholders. Environmental stakeholders
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Environmental Stakeholders
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One way to make public affairs thinking truly relevant to the manager is to 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.
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Link achievement of the manager's goals to public affairs.
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The evaluation, monitoring, and control of issues involves 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.
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Continual control of responses to ensure that they remain on track.
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A social audit is most closely associated with the __________ step in the strategic management process. Strategy formulation Strategy evaluation Strategy implementation. Strategic control
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Strategic control.
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Carroll's corporate social performance model can be used in all of the ways listed below EXCEPT 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.
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Providing answers to specific social problems.
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All of the following are key spheres of sustainability under the "Triple Bottom Line" concept EXCEPT Economic Ethical Social Environmental
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Ethical
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All of the following statements are correct EXCEPT 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.
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Corporate public policy takes place primarily at the corporate level of strategy.
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A social problem is: 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.
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a. a gap between society's expectations of social conditions and current social realities.
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The philosophy of entitlement is the belief that: 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.
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d. a person is owed something simply because he or she is a member of society
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Business power is: 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.
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c. the ability to influence or produce an effect in a given situation.
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Decentralization, a system of checks and balances, and diversity are characteristics of: a. the revolution of rising expectations. b. a social contract. c. business power. d. pluralism
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d. pluralism.
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The purchasing manager at Noxious Nellie's has the authority to buy computer equipment that costs less than $5,000 without any other approval. Which sphere of power does this represent? a. Economic b. Technological c. Individual d. Environmental
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c. Individual
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The socially conscious investing movement: 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.
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b. uses social or ethical criteria, as well as financial criteria, to make investment decisions.
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Which one of the acts described below would be considered a proactive behavior? 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.
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b. A company anticipates the need for a day-care center for its employees' children, and opens one adjacent to its office building.
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Which of the following is not one of Carroll's three-dimensional models of corporate social performance? a. A company's reputation in the marketplace b. Social responsibility categories c. Mode of social responsiveness d. Social issues being considered
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a. A company's reputation in the marketplace
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The most practical reason for businesses to be socially responsible is: 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.
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c. to ward off government intervention.
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The multiple bottom-line perspective holds that: 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.
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d. there are three key spheres of sustainability -- economic, social, and environmental.
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The stakeholder view of the firm includes only: a. suppliers and customers. b. suppliers, customers, employees, and owners. c. stockholders. d. all individuals and groups who are affected by, or can affect the company.
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d. all individuals and groups who are affected by, or can affect the company.
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The multifiduciary view of stakeholders: 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.
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b. holds that managers have the same types of duties to stakeholders and owners.
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Which of the following is not one of the five major questions that capture the essential information needed for stakeholder management? 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?
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d. What responsibilities do the stakeholders have to the firm?
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Core stakeholders are: 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.
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d. essential for the survival of the organization.
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The most basic level of stakeholder management capability, which entails identifying stakeholders groups and their respective stakes, is known as: a. the process level. b. the transactional level. c. the identity level. d. the rational level.
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d. the rational level.
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In order to understand corporate governance, it is important to understand the idea of: a. social responsibility. b. legitimacy. c. stakeholders. d. auditors.
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b. legitimacy.
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A structural element existing in large corporations that contributes to the corporate governance problem is: a. golden parachutes. b. poison pills. c. the separation of ownership from control. d. greenmail.
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c. the separation of ownership from control.
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Studies of executive compensation show that: 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.
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c. executives' pay packages often go up even if the firm's financial performance falls.
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In addition to having an independent board of directors, firms should also: 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.
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c. increase the diversity on the board.
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Which of the following has not been a recent major shareholder initiative? a. The rise of shareholder activist groups b. Public shareholder meetings c. Shareholder resolutions d. Shareholder lawsuits
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b. Public shareholder meetings
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Strategic management is: 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.
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d. the overall management process that relates a firm to its environment.
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Which of the following is not a step included in the strategic management process? a. Strategy formulation b. Strategy implementation c. Environmental analysis d. External affairs management
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d. External affairs management
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Freeman and Gilbert argued in their book, Corporate Strategy and the Search for Ethics, that strategic management and ethics are related in what manner? 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.
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d. For business ethics to have any real meaning, it must be linked to strategic management.
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Which of the following is not a level of strategy? a. System b. Enterprise c. Corporate d. Functional
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a. System
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The public affairs function that we know today: 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.
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b. is rooted in the social activism of the 1960s and 1970s.
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Which of the following approaches to issues management can be employed by itself, with no connections to other management systems? a. Conventional approach b. Strategic management approach c. Crisis management approach d. Public affairs approach
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a. Conventional approach
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A significant contribution made by the book Megatrends was: 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.
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b. in the area of trend-spotting services.
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The terms social forecasting, environmental scanning, and futures research have all been used to mean the same thing as: a. probability-impact matrix. b. stakeholder analysis. c. political analysis. d. issue identification.
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d. issue identification.
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The issue development life cycle occurs in which of the following patterns? 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.
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d. Felt need, media coverage, leading political jurisdictions, regulation/litigation.
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Which of the following is not one of the steps of an overall crisis plan according to the former CEO of Monsanto Company? 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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c. Never retreat.
