Test Bank Chapter 3 Defining And Prioritizing Stakeholders

Chapter 3: Defining and Prioritizing Stakeholders

= Correct answer

Multiple Choice/Fill in the Blank

1. Which of the following are Starbucks’ stakeholders? (Select all that apply.)

A. milk producers

B. urban and suburban communities

C. coffee and tea growers

D. plastic-cover manufacturers

Difficulty: Easy

Blooms: Understand

AACSB: Ethics

1. Which are some types of stakeholder relationships that a local chamber of commerce would have? (Select all that apply.)

A. minority- and women-owned small business owners

B. local and regional governments

C. environmental agencies

D. pet owners

Difficulty: Easy

Blooms: Apply

AACSB: Analytical

1. Which of the following is considered the most important internal stakeholder of a corporation?

A. marketing directors

B. board of directors

C. executive management

D. governmental affairs office

Difficulty: Easy

Blooms: Remember

AACSB: Ethics

1. Which of the following are the duties of the board of directors? (Select all that apply.)

A. Managing and executing the strategy of a company

B. Supervising middle and senior management

C. Defining a company’s ongoing mission

D. Evaluating the salary and benefits of senior management

Difficulty: Moderate

Blooms: Understand

AACSB: Application, Real-world

1. Which of the following is not a stakeholder of a nonprofit business?

A. community

B. competitors

C. media

D. public policy

Difficulty: Easy

Blooms: Application

AACSB: Real-world

1. Which employee typically reports directly to a board of directors?

A. chief legal officer

B. government liaison/lobbying director

C. chief executive officer

D. chief privacy officer

Difficulty: Easy

Blooms: Remember

AACSB: Application

1. In which functional areas of business does the CEO hire management? (Select all that apply.)

A. finance

B. marketing

C. legal compliance

D. dining/food service

Difficulty: Easy

Blooms: Apply

AACSB: Application

1. Which of the following best describes the interplay of promises of businesses to stakeholders and vice versa?

A. promise of quality that is greater than advertised

B. only accepting cash and not credit

C. supporting offshore philanthropy

D. on-time delivery and responsiveness

Difficulty: Difficult

Blooms: Apply

AACSB: Application

1. Which of the following are stakeholders?

A. entities and people invested and influential in the success of an organization

B. entities and people with one role at one time to care for a business

C. delivering high-quality products and services on time

D. demands to patronize environmental interests

Difficulty: Easy

Blooms: Remember

AACSB: Application

1. Which of the following examples best demonstrates the burden of the social contract that companies have with stakeholders?

A. Samsung’s washers had a spin-cycle problem in 2017.

B. Samsung warned customers that the machines could tip over.

C. Samsung assumed the risk of exposure and picked up the washers.

D. Samsung’s recall paid refunds and limited potential lawsuits.

Difficulty: Difficult

Blooms: Apply

AACSB: Application

1. Which of the following is the most ethical action a company can take if a product does not live up to manufacturing claims?

A. The company needs to correct the problem to regain consumer trust.

B. The company must meet the ethical minimum.

C. The company must meet the ethical maximum.

D. The company must issue a warning to consumers.

Difficulty: Moderate

Blooms: Apply

AACSB: Ethics

1. Which does a company listed on the Dow Jones Sustainability Indices exemplify?

A. being the most sustainable company for investment purposes

B. being a benchmark company to compare against other companies for investment profit

C. operating and preserving resources in an ecologically responsible manner

D. endowing worthwhile philanthropies and contributing to underprivileged communities

Difficulty: Difficult

Blooms: Apply

AACSB: Application

1. Which of the following describes the efficacy of legislation like the California Transparency in Supply Chains Act?

A. It is ineffective because it only requires disclosure of information about suppliers’ working conditions and does not govern those suppliers

B. It is effective because it requires disclosure of information about suppliers’ working conditions and does not govern those suppliers.

C. It is ineffective because it uses consumer stakeholders to pressure suppliers and make changes.

D. It is effective because it expects NGOs, state governments, and political action committees to influence suppliers’ working conditions.

Difficulty: Difficult

Blooms: Analyze

AACSB: Application, Analytical

1. Which example from the text best exemplifies how a stakeholder can effect a change that, in turn, affects other stakeholders?

A. the strong ethical stance taken by Johnson & Johnson executives

B. an NGO raising concern about unequal pay of laborers

C. Ford’s introduction of the Edsel to compete with other cars

D. Whole Foods’ assertion of social responsibility for companies

Difficulty: Moderate

Blooms: Apply

AACSB: Real-world

1. What do peers and competitors as normative stakeholders influence? (Select all that apply.)

A. industry norms

B. shareholders

C. legislatures

D. rules

Difficulty: Moderate

Blooms: Understand

AACSB: Application

1. Which of the following is not an example of a diffused shareholder?

A. NGOs

B. voters

C. mass media

D. competitors

Difficulty: Easy

Blooms: Remember

AACSB: Application

1. What was the reason for Scarlett Johansson’s withdrawal from a recent movie?

A. her portrayal of the character was insincere

B. her portrayal of the character was not approved

C. her portrayal of the character offended shareholders

D. her portrayal of the character offended stakeholders

Difficulty: Easy

Blooms: Understand

AACSB: Application

1. Which of the following is a resource made available to employees, in addition to salary?

A. wages

B. amenities

C. remuneration

D. compensation

Difficulty: Moderate

Blooms: Remember

AACSB: Real-world

1. Which of the following is the lesson learned from the Edsel story?

A. It is not necessary to conduct extensive market research.

B. Car design should focus on being competitive on the road.

C. Stakeholder perceptions have a large impact on success.

D. Car manufacturers need to be quicker to the market.

Difficulty: Moderate

Blooms: Apply

AACSB: Real-world

1. Which of the following are steps in the MITRE stakeholder process? (Select all that apply.)

A. Establish trust.

B. Identify shareholders.

C. Gather and analyze appropriate data.

D. Present information to the board of directors.

Difficulty: Moderate

Blooms: Understand

AACSB: Application

1. Which of the following best relates to prioritizing stakeholders?

A. Customers are not considered high-priority stakeholders.

B. Corporations need to maintain initial priority of stakeholders.

C. Customers are considered high-priority stakeholders.

D. Corporations need to manage expectations of customers.

Difficulty: Moderate

Blooms: Understand

AACSB: Application

1. What are some amenities companies offer employees that go beyond a legal minimum or even perhaps industry standards? (Select all that apply.)

A. discounted company stock

B. salary

C. health insurance

D. company discounts

Difficulty: Easy

Blooms: Remember

AACSB: Application

1. Which of the following are the opposing views of how large, publicly held corporations should approach social responsibility and ethics?

A. Business should behave ethically, focusing only on environmentalism.

B. Business should behave ethically, focusing exclusively on shareholders/investors.

C. Business should behave ethically, being responsible to all stakeholders.

D. Business should behave ethically, fulfilling a strategic mission.

Difficulty: Moderate

Blooms: Evaluate

AACSB: Reflection

1. Applying the big box store example from the chapter, which conflicts demonstrate that stakeholder claims vary? (Select all that apply.)

A. Community members may view big box stores as a threat to small businesses’ livelihood.

B. Consumers support big box stores that offer quality goods and reasonable prices.

C. Big box stores are looking for a profit margin and to expand competitively.

D. Local governments are seeking to institute tax advantages to attract business competition.

Difficulty: Difficult

Blooms: Apply

AACSB: Application, Real-world

1. According to Donaldson and Preston, what are the three theoretical approaches to considering stakeholder claims?

A. normative, descriptive, and decision-making approaches

B. stakeholder, decision-making, and descriptive approaches

C. normative, descriptive, and instrumental approaches

D. ideological, stakeholder, and environmental approaches

Difficulty: Moderate

Blooms: Understand

AACSB: Ethics, Application

1. What is a measure that accounts for an organization’s results in terms of its effects on profits, planet, and people?

A. corporate social responsibility

B. triple bottom line

C. greenwashing

D. stakeholder prioritization

Difficulty: Easy

Blooms: Understand

AACSB: Application

True/False

1. True or false? Laws dictate all ethical responsibilities that a company may owe key stakeholders.

Difficulty: Easy

Blooms: Remember

AACSB: Ethics, Application

1. True or false? Rachel Carson’s 1962 book, Silent Spring, first brought attention to chemical poisoning of waterways by corporations.

Difficulty: Easy

Blooms: Remember

AACSB: Application

1. True or false? All stakeholders must be treated the same.

Difficulty: Easy

Blooms: Understand

AACSB: Application

1. True or false? The most important function of the board of directors is to hire the president or chief executive officer.

Difficulty: Moderate

Blooms: Remember

AACSB: Analytical

1. True or false? All companies must have a board of directors.

Difficulty: Moderate

Blooms: Understand

AACSB: Application

1. True or false? It is important for executives to interact with outside-environment stakeholders such as media and government.

Difficulty: Moderate

Blooms: Analyze

AACSB: Reflection

1. True or false? A trade secret is a form of intellectual property protection and is easier to protect than a trademark or patent.

Difficulty: Difficult

Blooms: Apply

AACSB: Application, Real-world

1. True or false? CSR and greenwashing are the same concepts.

Difficulty: Moderate

Blooms: Understand

AACSB: Application

Short Answer

1. What CSR lesson did Starbucks convey when it closed its stores for a day?

Difficulty: Moderate

Blooms: Understand, Apply

AACSB: Application, Real-world

1. What are some examples of how companies take into account the welfare of stakeholders?

Difficulty: Difficult

Blooms: Evaluate

AACSB: Ethics, Reflection

1. Name the four groups of stakeholders and provide a few examples of each. Why is this grouping important?

Difficulty: Difficult

Blooms: Apply

AACSB: Real-world

1. Explain the organizational linkage model and provide examples of how stakeholders are analyzed.

Difficulty: Moderate

Blooms: Apply

AACSB: Communication

1. Define and explain an indirect stakeholder claim.

Difficulty: Moderate

Blooms: Apply

AACSB: Application, Ethics

1. Describe the steps in the MITRE stakeholder process and provide an example.

Difficulty: Difficult

Blooms: Apply

AACSB: Application, Real-world

1. Explain how Ikea has had to adapt its business model in different countries.

Difficulty: Moderate

Blooms: Evaluate

AACSB: Analytical

1. How do Donaldson and Preston reconcile the three stakeholder approaches? Which best represents ethical stakeholder theory? Why is ethical stakeholder theory important?

Difficulty: Difficult

Blooms: Analyze, Evaluate

AACSB: Application

1. How does a corporation prioritize stakeholder claims?

Difficulty: Easy

Blooms: Apply

AACSB: Reflection, Application

1. How are Ben & Jerry’s and Coca-Cola respective examples of greenwashing?

Difficulty: Difficult

Blooms: Apply

AACSB: Real-world

1. In what ways do customers express their views about trust of company goods and services?

Difficulty: Easy

Blooms: Analyze

AACSB: Reflection

1. Why is it ethical that Kroger is making its own clothes?

Difficulty: Moderate

Blooms: Evaluate

AACSB: Application, Real-world

1. How can corporations measure the impact of a CSR initiative?

Difficulty: Moderate

Blooms: Apply

AACSB: Real-world

1. Why is the ethical minimum insufficient in cases of product failure? Provide an example.

Difficulty: Moderate

Blooms: Evaluate

AACSB: Application, Real-world

1. Explain Lynn Stout’s view of the role of shareholders and the implication for stakeholder welfare.

Difficulty: Moderate

Blooms: Remember

AACSB: Ethics, Application

This file is copyright 2019, Rice University. All Rights Reserved.