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True/False
1. Walmart has been called a template for 21st century capitalism.

Answer: F
Page: 3
2. A business is any organization that is engaged in making a product or providing a service for a
profit.
Answer: T
Page: 4
3. Businesses and society are independent of one another.

Answer: F
Page: 4
4. The stakeholder theory of the firm argues that a firms sole purpose is to create value for its
shareholders.
Answer: F
Page: 6
5. The instrumental argument for the stakeholder theory of the firm says that companies perform
better if they consider the rights and concerns of multiple groups in society.
Answer: T
Page: 6
6. The normative argument for the stakeholder theory of the firm says that the stakeholder view is
simply a more realistic description of how companies really work.
Answer: F
Page: 7
7. Nonmarket stakeholders are those that engage in economic transactions with the company as it
carries out its primary purpose of providing society with goods and services.
Answer: F
Page: 8
8. Market stakeholders include nongovernmental organizations and the media.

Answer: F
Page: 8
9. Government can be considered both a market and nonmarket stakeholder.

Answer: T
Page: 10
10. The interests of different stakeholders often coincide.

Answer: T
Page: 14
11. Stakeholders involved with one part of a company often may have little or no involvement with
another part of the company.
Answer: T
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Page: 15
12. Some scholars have suggested that managers pay the most attention to stakeholders possessing the
least salience.
Answer: F
Page: 16
13. Urgency refers to the extent to which a stakeholders actions are seen as proper or appropriate by
the broader society.
Answer: F
Page: 16
14. A stakeholder map is a useful tool, because it enables managers to see quickly how stakeholders
feel about an issue and whether salient stakeholders tend to be in favor or opposed.
Answer: T
Page: 17
15. The external environment of business is static.

Answer: F
Page: 19
Multiple Choice
16. Which statement is not correct about the business-society interdependence?

A. Business is a part of society.
B. Business is is separated from the rest of society by clear boundaries.
C. Business activities impact other activities in society.
D. Actions by governments rarely significantly affect business.
Answer: D
Difficulty: Medium
Page: 5
17. Which of the following examples best illustrates the boundary exchanges a company would
encounter according to the general systems theory?
A. An industrial company installs new equipment in its plant to comply with environmental
regulations.
B. A software company develops an application for a client.
C. A purchasing department employee negotiates a price on parts from a supplier.
D. All of the above.
Answer: D
Difficulty: Hard
Page: 5
18. Which of the following is the result of an inseparable relationship between business and society?
A. All business decisions have a social impact.
B. The vitality of business depends on societys actions and attitudes.
C. The survival of business is independent of society.

D. Both A and B, but not C.

Answer: D
Difficulty: Medium
Page: 5
19. Which of the following statements is not true about the interactive social
system?
A. Business and society need, as well as influence, each other.
B. The boundary between business and society is clear and distinct.
C. Business is a part of society, and society penetrates far and often into the
business.
D. Business and society are both separate and connected.
Answer: B
Difficulty: Hard
Page: 5
20. A firm subscribing to the ownership theory of the firm would mainly be
concerned with providing value for its:
A. Shareholders.
B. Customers.
C. Board of Directors.
D. Community.
Answer: A
Difficulty: Medium
Page: 6
21. Corporations that run their operations according to the stakeholder theory of
the firm create value by:
A. Innovating new products.
B. Increasing their stock price.
C. Developing their employees professional skills.
Answer: D
Difficulty: Medium
Page: 6
22. Which argument says that stakeholder management realistically depicts how
companies really work?
A. Descriptive argument.

B. Instrumental argument.
C. Normative argument.
D. Fiduciary argument.
Answer: A
Difficulty: Easy
Page: 6
23. The instrumental argument says stakeholder management is:

A. A more realistic description of how companies really work.
B. More effective as a corporate strategy.
C. Simply the right thing to do.
D. Determined by the amount of stock owned in the firm.
Answer: B

Difficulty: Easy
Page: 6
24. The fiduciary duty of managers benefits a firms:

A. Stockholders.
B. Customers.
C. Employees.
Answer: D
Difficulty: Medium
Page: 7
25. A number of European countries require public companies to include

employee members on their boards of directors, so:
A. The employees are available to answer questions.
B. Management does not have to attend the meetings.
C. That their interests will be explicitly represented.
D. They have more power than any other stakeholder.
Answer: C
Difficulty: Medium
Page: 7
26. Stakeholder groups can include:

A. Stockholders.
B. The media.
C. Environmental activists.
Answer: D
Difficulty: Easy
Page: 7
27. Which one of the following is considered to be a nonmarket stakeholder of

business?
A. Customers.
B. Media.
C. Creditors.
D. Stockholders.

Answer: B
Difficulty: Easy
Page: 8
28. Which of the following is not considered to be a nonmarket stakeholder?

A. Government agencies.
B. Creditors.
C. Activist groups.
D. Non-governmental organizations.
Answer: B
Difficulty: Easy

Page: 8
29. All of the following are external stakeholders of the firm except:
A. Managers.
B. Customers.
C. Stockholders.
D. Suppliers.
Answer: A
Difficulty: Easy
Page: 9
30. The phenomenon of a person or group holding multiple stakeholder duties

is referred to as:
A. Role sets.
B. Primary Stakeholder(s).
C. Ownership Theory.
D. None of the above.
Answer: A
Difficulty: Medium
Page: 10
31. A stakeholder analysis:

A. Creates equality among all stakeholder interests.
B. Allows managers to examine two primary questions.
C. Involves understanding the nature of stakeholder interests.
Answer: C
Difficulty: Medium
Page: 10
32. The five types of stakeholders power recognized by most experts are:
A. Voting, economic, political, legal, and informational power.
B. Social, legal, environmental, economic, and political power.
C. Social, regulatory, voting, governance, and media power.
D. Economic, media, legal, stockholder, and political power.
Answer: A
Difficulty: Medium
Page: 12

33. Which of the following statements is (are) correct about stakeholders
power?
A. Different stakeholders have different types and degrees of power.
B. Stockholders voting power is limited to the percentage of stock owned by
the stockholder.
C. It uses resources to achieve a desired decision or outcome.
Answer: D
Difficulty: Hard
Page: 12-13
34. Customers can exercise economic stakeholder power by:

A. Voting on a proposed merger for the company and a competitor.
B. Boycotting products if they believe the goods are too expensive.
C. Attending the companys annual meeting.
D. Applying for a job with the company.
Answer: B
Difficulty: Medium
Page: 12
35. Which of the following is not an example of stakeholders economic power?

A. A toy manufacturer halts supplies to a customer that demanded very low
prices.
B. A social group protests a governments decision to raise taxes.
C. A local community boycotts a grocery store suspected of inaccurate weight
scales.
D. An equal rights group refuses to do business with a business that has a
discriminatory hiring policy.
Answer: B
Difficulty: Hard
Page: 12
36. When a community group sues a company for health effects caused by the
unsafe disposal of toxic chemicals, this is an exercise of a stakeholders:
A. Legal power.
B. Voting power.
C. Economic power.
D. Political power.

Answer: A
Difficulty: Medium
Page: 13
37. What stakeholder group(s) can exercise legal power?

A. Employees.
B. Customers.
C. Shareholders.
Answer: D
Difficulty: Easy
Page: 13
38. What kind of power might a local community use to influence a companys
decisions?
A. Publicizing an issue.
B. Lobbying government policy makers for regulations.
C. Challenging whether a business activity should continue to operate.
Answer: D
Difficulty: Hard
Page: 13
39. With the explosive growth of technologies that facilitate the sharing of
information, this kind of stakeholder power has become increasingly important:
A. Economic power.
B. Political power.
C. Informational power.

D. Legal power.
Answer: C
Difficulty: Medium
Page: 13
40. Stakeholders have been able to form international coalitions more

successfully through use of:
A. Government regulation.
B. Community involvement.
C. Communications technology.
D. Unions.
Answer: C
Difficulty: Easy
Page: 16
41. When something stands out from a background, is seen as important, or

draws attention it is:
A. Urgent.
B. Salient.
C. Powerful.
D. Legitimate.
Answer: B
Difficulty: Medium
Page: 16
42. Stakeholders stand out to managers when they exhibit:

A. Integrity, power, and legitimacy.
B. Power, legitimacy, and urgency. PLU
C. Integrity, loyalty, and power.
D. Legitimacy, loyalty, and urgency.
Answer: B
Difficulty: Hard
Page: 16
43. A stakeholder map is a useful tool because:

A. It enables mangers to see quickly how stakeholders feel about an issue.
B. It allows managers to evaluate what outcomes are likely regarding an issue.
C. It helps managers discourage or dissolve stakeholder coalitions.
D. Both A and B, but not C.

Answer: D
Difficulty: Hard
Page: 16-17
44. Departments, or offices, within an organization that reach across the

dividing line that separates the company from groups and people in society are:
A. Inter-departmental divisions.
B. Geographical location areas.
C. Boundary-spanning departments.
D. Organizational maps.
Answer: C
Difficulty: Easy
Page: 18

45. Interactions between business and society occur:

A. Within a finite natural ecosystem.
B. Only during an environmental crisis.
C. When business employees and the community are of similar cultural
backgrounds.
D. When legislation is passed requiring interaction.
Answer: A
Difficulty: Medium
Page: 20
Short Answer Questions
46. Describe how general systems theory can be applied to a business.

Page: 5
47. Supporters of the stakeholder theory of the firm make three core arguments
for their position. Define and provide examples of each.
Page: 6 7
48. Compare and contrast the relationships a firm may have with market and
non-market stakeholders.
Page: 8 11
49. Discuss why a manager should, or should not, be considered a stakeholder.

Page: 9
50. Explain the process called stakeholder analysis. Include a description of its
four key questions.
Page: 1 16
51. What is a stakeholder map? Why is it a useful tool?

Page: 16 17
52. Describe and give examples of the external forces that shape the
relationship between business and society.

Page: 19 21
Managing Public Issues and Stakeholder Relationships
True / False Questions
1. A public issue exists when there is agreement between the stakeholders' expectations of
what an institution should do and the actual performance of those businesses.
True False
2. Emerging public issues are a risk and an opportunity.

True False
3. Understanding and responding to changing societal expectations a business necessity.

True False
4. Because the public issues that garner the most public attention change over time,
sometimes emerging with surprising suddenness, companies do not waste time tracking
them.
True False
5. Organizations always have full control of a public issue.

True False
6. Environmental analysis is a method managers use to gather information about external

issues and trends.
True False
7. Environmental intelligence is the acquisition of information gained from analyzing the

multiple environments affecting organizations.
True False

8. According to management scholar Karl Albrecht, scanning to acquire environmental

intelligence should focus on four strategic radar screens.
True False
9. Legal environment includes the structure, processes, and actions of government at the
local, state, national, and international levels.
True False
10. Competitive intelligence enables managers in companies of all sizes to make informed
decisions in all areas of the business.
True False
11. Identifying the issue in the issue management process involves anticipating emerging
issues.
True False
12. Financially sound companies do not need to understand how a public issue is likely to
evolve, and how it will affect.
True False
13. Dialogue between a single firm and its stakeholders is always sufficient to address an
issue effectively.
True False
14. For stakeholder engagement to occur, both the business and the stakeholder must be
motivated to work with one another to solve the problem.
True False

15. Companies are learning that it is important to take a strategic approach to the
management of public issues, both domestically and globally.
True False
Multiple Choice Questions
16. A public issue is also sometimes referred to as:

A. Social issues.
B. Sociopolitical issues.
C. Both A and B.
17. The emergence of a public issue indicates that:

A. A gap has developed between what stakeholders expect and what an organization is
actually doing.
B. Technology is forcing ethics and business strategy closer together.
C. Consumers are unaware of how an organization's actions affect them.
18. Failure to understand the beliefs and expectations of stakeholders:

A. Causes company's profits to increase in the short run.
B. Causes company's profits to decrease in the short run.
C. Causes the performance-expectations gap to grow larger.
D. Increases the chance of a corporate buy-out.
19. According to a recent survey of top executives, the issue most likely to gain public and
political attention over the next five years is:
A. Pension and retirement benefits.
B. Environmental issues, including climate change.
C. Demand for more ethically produced products.
D. Affordable cost of products for poor consumers.

20. According to management scholar Karl Albrecht, scanning to acquire environmental

intelligence should focus on:
A. Eight strategic radar screens.
B. Six management templates.
C. Eight process improvement models.
D. Six ethical decision indicators.
21. Customer environmental intelligence includes:

A. Demographic factors.
B. An analysis of the firm's competitors.
C. New technological applications.
D. The cost of producing consumer goods.
22. The "graying" of the population is an example of:

A. Customer environment.
B. Competitor environment.
C. Economic environment.
D. Social environment.
23. An analysis of the stability or instability of a government is an example of scanning the:

A. Social environment.
B. Legal environment.
C. Geophysical environment.
D. Political environment.
24. Legal environmental intelligence includes:

A. Patterns of aggressive growth versus static maintenance.
B. Analysis of local, state, national, and international politics.
C. Considerations of patents, copyrights, or trademarks.
D. Information regarding costs, prices, and international trade.

25. Because of the risks and opportunities public issues present, organization need.
A. A strong relationship with a lobbying firm or an in-house lobbying department.
B. Executives to be rewarded with substantial bonuses as part of total compensation.
C. A systematic way of identifying, monitoring, and selecting public issues.
D. Tougher government regulations and oversight by political action committees.
26. The role of special interest groups is an important element in acquiring intelligence from
the:
27. The issues management process is a:

A. Beneficial tool used only to maximize the positive effects of a public issue for the
organization's advantage.
B. Beneficial tool used only to minimize the negative effects of a public issue for the
C. Systematic process companies use when responding to public issues that are of greatest
importance to the business.
D. Confusing process that is rarely used to help top management within an organization.
28. The issue management process has how may stages?

A. Three.
B. Four.
C. Five.
D. Six.
29. The components of a typical issues management process include:

A. Identify issue.
B. Generate options.
C. Take action.

30. Once an issue has been identified, its implications must be:
A. Acted upon.
B. Analyzed.
C. Segmented.
D. Deleted
31. An issue's public profile indicates to managers:

A. How significant an issue is for the organization, but it does not tell them what to do.
B. Both how significant an issue is for the organization and exactly what to do.
C. Exactly what to do without indicators of how significant an issue is for the organization.
D. Any of the above depending on the organization type.
32. Once an organization has implemented the issue management program, it must:
A. Use trade associations or consultants to follow high priority issues.
B. Study the results and make necessary adjustments.
C. Not limit the number of public issues the firm can address.
D. Pick a selected number of issues to address immediately.
33. When working well, the issue management process:

A. Is static and never pulls in additional information that would disturb the balance.
B. Generates two specific options for each issue.
C. Minimizes dialogue with the stakeholders and focuses on short-term survival.
D. Continuously cycles back to the beginning and repeats.
34. Contemporary issue management:

A. Is a linear process.
B. Was useful in the 9170s, but not today.
C. Is used by all government agencies.
D. Is an art, not a science.

35. An effective way to learn what issues are important to people outside of the organization
is through:
A. Building ongoing, positive relationships with stakeholders.
B. Conducting public opinion polls.
C. Hiring individuals from outside the company for available positions rather than promoting
from within the organization.
36. A corporation's issue management activities are usually linked to.

A. The board of directors.
B. Top management.
C. Both the board of directors and top management levels.
D. The strategic governance committee.
37. Overtime, the nature of business's relationship with its stakeholders often:
A. Remains static.
B. Evolves through a series of stages.
C. Becomes more hostile.
38. Firms that believe they can make decisions unilaterally, without taking into consideration
their impact on others are:
A. Interactive companies.
B. Proactive companies.
C. Reactive companies.
D. Inactive companies.
39. Firms that generally act only when forced to do so, and then in a defensive manner are
B. Proactive companies
C. Reactive companies

40. Proactive companies are:

A. Much less likely to be blindsided by crises and negative surprises.
B. Much more likely to be blindsided by crises and negative surprises.
C. Just as likely to be blindsided by crises and negative surprises.
D. Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder.
41. Stakeholder engagement is:

A. Any issue that is of mutual concern to an organization and one or more of its stakeholders.
B. Competitive intelligence being collected ethically and systematically.
C. The process of ongoing relationship building between a business and its stakeholders.
D. The acquisition of information gained from analyzing the multiple environments.
42. Stakeholder engagement is, at its core, a:

A. Program.
B. Relationship.
C. Process.
D. Systems model.
43. The drivers of stakeholders of engagement are:

A. Scanning, assessment, and growth.
B. Data, strategy, and organizational development.
C. Goals, motivation, and operational capacity.
D. Financial, operational, and legal.
44. A business and its stakeholders coming together for face-to-face conversations about
issues of common concern is:
A. Stakeholder networks.
B. Stakeholder motivation.
C. Stakeholder systems.
D. Stakeholder dialogue.

45. Corporations working collaboratively with other businesses and concerned persons and
organizations is an example of:
46. What is a public issue and how do they impact modern firms?
47. Identify the eight strategic radar screens that enable public affairs managers to scan their
business environment. Briefly discuss the issues involved with each environment.
48. What is competitive intelligence? Why is it important to the public affairs function?

49. Identify and discuss the five steps to the Issues Management Process.
50. What are the various stages of the business-stakeholder relationship?
51. Engaging interactively with stakeholders carries a number of potential benefits. Discuss.

Chapter 02 Managing Public Issues and Stakeholder Relationships Answer Key
True / False Questions
1. (p. 25) A public issue exists when there is agreement between the stakeholders' expectations
of what an institution should do and the actual performance of those businesses.
FALSE
2. (p. 26) Emerging public issues are a risk and an opportunity.

TRUE
3. (p. 26) Understanding and responding to changing societal expectations a business necessity.
TRUE
4. (p. 26) Because the public issues that garner the most public attention change over time,
sometimes emerging with surprising suddenness, companies do not waste time tracking
them.
FALSE

5. (p. 27) Organizations always have full control of a public issue.

FALSE
6. (p. 28) Environmental analysis is a method managers use to gather information about
external issues and trends.
TRUE
7. (p. 29) Environmental intelligence is the acquisition of information gained from analyzing
the multiple environments affecting organizations.
TRUE
8. (p. 29) According to management scholar Karl Albrecht, scanning to acquire environmental
intelligence should focus on four strategic radar screens.
FALSE
9. (p. 30) Legal environment includes the structure, processes, and actions of government at the
local, state, national, and international levels.
FALSE

10. (p. 31) Competitive intelligence enables managers in companies of all sizes to make
informed decisions in all areas of the business.
TRUE
11. (p. 32) Identifying the issue in the issue management process involves anticipating
emerging issues.
TRUE
12. (p. 35) Financially sound companies do not need to understand how a public issue is likely
to evolve, and how it will affect.
FALSE
13. (p. 40) Dialogue between a single firm and its stakeholders is always sufficient to address
an issue effectively.
FALSE
14. (p. 40) For stakeholder engagement to occur, both the business and the stakeholder must be
motivated to work with one another to solve the problem.
TRUE
15. (p. 42) Companies are learning that it is important to take a strategic approach to the
management of public issues, both domestically and globally.
TRUE

Multiple Choice Questions
16. (p. 25) A public issue is also sometimes referred to as:

A. Social issues.
B. Sociopolitical issues.
C. Both A and B.
Difficulty: Easy
17. (p. 25) The emergence of a public issue indicates that:

A. A gap has developed between what stakeholders expect and what an organization is
actually doing.
B. Technology is forcing ethics and business strategy closer together.
C. Consumers are unaware of how an organization's actions affect them.
Difficulty: Easy
18. (p. 26) Failure to understand the beliefs and expectations of stakeholders:
A. Causes company's profits to increase in the short run.
B. Causes company's profits to decrease in the short run.
C. Causes the performance-expectations gap to grow larger.
D. Increases the chance of a corporate buy-out.
Difficulty: Medium
19. (p. 28) According to a recent survey of top executives, the issue most likely to gain public
and political attention over the next five years is:
A. Pension and retirement benefits.
B. Environmental issues, including climate change.
C. Demand for more ethically produced products.
D. Affordable cost of products for poor consumers.
Difficulty: Medium

20. (p. 29) According to management scholar Karl Albrecht, scanning to acquire environmental
intelligence should focus on:
A. Eight strategic radar screens.
B. Six management templates.
C. Eight process improvement models.
D. Six ethical decision indicators.
Difficulty: Hard
21. (p. 29) Customer environmental intelligence includes:

A. Demographic factors.
B. An analysis of the firm's competitors.
C. New technological applications.
D. The cost of producing consumer goods.
Difficulty: Medium
22. (p. 29) The "graying" of the population is an example of:

Difficulty: Medium
23. (p. 30) An analysis of the stability or instability of a government is an example of scanning
the:
A. Social environment.
B. Legal environment.
C. Geophysical environment.
D. Political environment.
Difficulty: Easy

24. (p. 30) Legal environmental intelligence includes:

A. Patterns of aggressive growth versus static maintenance.
B. Analysis of local, state, national, and international politics.
C. Considerations of patents, copyrights, or trademarks.
D. Information regarding costs, prices, and international trade.
Difficulty: Medium
25. (p. 31) Because of the risks and opportunities public issues present, organization need.
A. A strong relationship with a lobbying firm or an in-house lobbying department.
B. Executives to be rewarded with substantial bonuses as part of total compensation.
C. A systematic way of identifying, monitoring, and selecting public issues.
D. Tougher government regulations and oversight by political action committees.
Difficulty: Hard
26. (p. 31) The role of special interest groups is an important element in acquiring intelligence
from the:
Difficulty: Medium
27. (p. 31) The issues management process is a:

A. Beneficial tool used only to maximize the positive effects of a public issue for the
B. Beneficial tool used only to minimize the negative effects of a public issue for the
C. Systematic process companies use when responding to public issues that are of greatest
importance to the business.
D. Confusing process that is rarely used to help top management within an organization.
Difficulty: Hard

28. (p. 32) The issue management process has how may stages?
A. Three.
B. Four.
C. Five.
D. Six.
Difficulty: Easy
29. (p. 32) The components of a typical issues management process include:
A. Identify issue.
B. Generate options.
C. Take action.
Difficulty: Easy
30. (p. 33) Once an issue has been identified, its implications must be:
A. Acted upon.
B. Analyzed.
C. Segmented.
D. Deleted
Difficulty: Hard
31. (p. 33) An issue's public profile indicates to managers:

A. How significant an issue is for the organization, but it does not tell them what to do.
B. Both how significant an issue is for the organization and exactly what to do.
C. Exactly what to do without indicators of how significant an issue is for the organization.
D. Any of the above depending on the organization type.
Difficulty: Hard

32. (p. 34) Once an organization has implemented the issue management program, it must:
A. Use trade associations or consultants to follow high priority issues.
B. Study the results and make necessary adjustments.
C. Not limit the number of public issues the firm can address.
D. Pick a selected number of issues to address immediately.
Difficulty: Easy
33. (p. 35) When working well, the issue management process:
A. Is static and never pulls in additional information that would disturb the balance.
B. Generates two specific options for each issue.
C. Minimizes dialogue with the stakeholders and focuses on short-term survival.
D. Continuously cycles back to the beginning and repeats.
Difficulty: Medium
34. (p. 35) Contemporary issue management:

A. Is a linear process.
B. Was useful in the 9170s, but not today.
C. Is used by all government agencies.
D. Is an art, not a science.
Difficulty: Medium
35. (p. 36) An effective way to learn what issues are important to people outside of the
organization is through:
A. Building ongoing, positive relationships with stakeholders.
B. Conducting public opinion polls.
C. Hiring individuals from outside the company for available positions rather than promoting
from within the organization.
Difficulty: Easy

36. (p. 36) A corporation's issue management activities are usually linked to.
A. The board of directors.
B. Top management.
C. Both the board of directors and top management levels.
D. The strategic governance committee.
Difficulty: Medium
37. (p. 37) Overtime, the nature of business's relationship with its stakeholders often:
A. Remains static.
B. Evolves through a series of stages.
C. Becomes more hostile.
Difficulty: Medium
38. (p. 38) Firms that believe they can make decisions unilaterally, without taking into
consideration their impact on others are:
B. Proactive companies.
C. Reactive companies.
Difficulty: Medium
39. (p. 38) Firms that generally act only when forced to do so, and then in a defensive manner
are
B. Proactive companies
C. Reactive companies
Difficulty: Hard

40. (p. 38) Proactive companies are:

A. Much less likely to be blindsided by crises and negative surprises.
B. Much more likely to be blindsided by crises and negative surprises.
C. Just as likely to be blindsided by crises and negative surprises.
D. Much more likely to be forced to defend itself in a lawsuit brought by a stakeholder.
Difficulty: Medium
41. (p. 38) Stakeholder engagement is:

A. Any issue that is of mutual concern to an organization and one or more of its stakeholders.
B. Competitive intelligence being collected ethically and systematically.
C. The process of ongoing relationship building between a business and its stakeholders.
D. The acquisition of information gained from analyzing the multiple environments.
Difficulty: Medium
42. (p. 38) Stakeholder engagement is, at its core, a:

A. Program.
B. Relationship.
C. Process.
D. Systems model.
Difficulty: Medium
43. (p. 39) The drivers of stakeholders of engagement are:

A. Scanning, assessment, and growth.
B. Data, strategy, and organizational development.
C. Goals, motivation, and operational capacity.
D. Financial, operational, and legal.
Difficulty: Medium

44. (p. 40) A business and its stakeholders coming together for face-to-face conversations about
issues of common concern is:
Difficulty: Hard
45. (p. 41) Corporations working collaboratively with other businesses and concerned persons
and organizations is an example of:
Difficulty: Hard
46. (p. 25) What is a public issue and how do they impact modern firms?
Answers will vary
47. (p. 29) Identify the eight strategic radar screens that enable public affairs managers to scan
their business environment. Briefly discuss the issues involved with each environment.
Answers will vary

48. (p. 31) What is competitive intelligence? Why is it important to the public affairs function?
Answers will vary

49. (p. 31) Identify and discuss the five steps to the Issues Management Process.
Answers will vary
50. (p. 37) What are the various stages of the business-stakeholder relationship?
Answers will vary
51. (p. 41) Engaging interactively with stakeholders carries a number of potential benefits.
Discuss.
Answers will vary
CHAPTER 3ETHICS AND SOCIAL RESPONSIBILITY
MULTIPLE CHOICE
1. Business ethics deals primarily with

a. Social responsibility.
b. the pricing of products and services.
c. Moral obligation.
d. Being unfair to the competition.
ANS: C PTS: 1 DIF: E REF: p. 75
NAT: AACSB: Ethics, Ethical Responsibilities
2. Ethics are important because

a. Suppliers prefer to deal with ethical companies.
b. Customers prefer to deal with ethical companies.
c. Employees prefer to deal with ethical companies.
d. all of the choices.
ANS: D PTS: 1 DIF: M REF: p. 75
NAT: AACSB: Ethics, Legal Responsibilities

3. According to the concept of moral intensity, a worker is most likely to behave ethically and
legally when
a. A manager observes his or her behavior closely.
b. The worker has intense morals.
c. The consequences of the act are minor.
d. The consequences of the act are substantial.
ANS: D PTS: 1 DIF: D REF: p. 76
4. Pierre takes a utilitarian viewpoint of ethics. He will therefore judge a business decision to be
ethical so long as
a. More good than bad results from the decision.
b. Everybody is treated fairly.
c. Certain rights are not violated.
d. He has good character and integrity.
ANS: A PTS: 1 DIF: M REF: p. 76
NAT: AACSB: Ethics, Individual Dynamics
5. Small-business owner Jason is thinking about giving a potential customer an expense paid
vacation to Las Vegas for her and her husband. When asked if he is being ethical, Jason
replies, "Look whatever works works." Which ethical principle is Jason most likely using?
a. focus on the rights of individuals
b. pragmatism
c. utilitarianism (consequences)
d. focus on integrity (virtue ethics)
ANS: B PTS: 1 DIF: M REF: p. 78
NAT: AACSB: Ethics, Strategy
6. Bonita is an ethically centered production manager so she will ship a product

a. Only after all its problems have been eliminated.
b. Only if the shipping people use packing material that does not harm the
environment.
c. Only after an ethics committee has approved it.
d. As quickly as she can to meet the customer's schedule.
ANS: A PTS: 1 DIF: E REF: p. 80
7. Benefits derived from social responsibility include;

a. enhanced organizational efficiency
b. producing better products
c. attracting people who want to work for the firm
d. both a & c
NAT: AACSB: Ethics, Environmental Influence

8. According to concept of moral laxity, workers will often behave unethically because
a. they have planned to be unethical.
b. they come from dysfunctional families.
c. other issues seem more important at the time.
d. management pressures them into unethical behavior.
9. Unethical behavior is often triggered by

a. pressure from higher management to achieve goals.
b. an organizational atmosphere that condones such behavior.
c. both a & b
d. a system of checks and balances.
ANS: C PTS: 1 DIF: M REF: p. 82
NAT: AACSB: Ethics, Group Dynamics
10. Building a sustainable environment includes

a. developing a green supply chain
b. omitting hazardous emissions
c. both a & b
d. writing a code of ethics
ANS: C PTS: 1 DIF: M REF: pp. 102-103
NAT: AACSB: Technology, Operations Management
11. Fairness in employment practices centers on

a. hiring no family members or friends.
b. giving people equal rewards for accomplishing the same tasks.
c. obeying equal employment opportunity legislation.
d. avoiding conflicts of interest.
NAT: AACSB: Analytic, Strategy
12. Which one of the following is not recommended as a method for a company to protect itself
against sexual harassment charges?
a. Develop a zero-tolerance policy on harassment and communicate it to employees.
b. Retaliate swiftly against employees who bring forth charges of harassment.
c. Give swift and sure punishment to harassers.
d. Train managers at all levels on sexual harassment issues.
ANS: B PTS: 1 DIF: D REF: p. 85
13. Team leader Gary is scheduled to prepare a performance of Lisa, a team member who also
happens to be his wife's closest friend. The ethical temptation Gary faces is

a. sexual harassment.
b. misuse of corporate resources.
c. dealing with confidential information.
d. conflict of interest.
ANS: D PTS: 1 DIF: E REF: p. 86
NAT: AACSB: Analytic, HRM
14. Kate, the owner of a small telecommunications firm gives gifts of stock in her company to
telephone company mangers who purchase her equipment. Kate is giving in to the ethical
temptation of
a. kickbacks.
c. sexual harassment.
d. treating people unfairly.
15. Marvin has his own Website that carries ads for a dozen retailers. At night, Marvin spends
hours clicking on these sites so he can collect commissions from the advertisers. Marvin is
engaged in the scandal referred to as
a. click fraud.
b. work-at-home scam.
c. cyber squatting.
d. backdating Websites.
NAT: AACSB: Technology, Information Technologies
16. The purpose of backdating stock options is to give the stock-option holder
a. large payout on his or her birthday.
b. tax-free investment.
c. chance to diversify his or her stock portfolio.
d. sure profit on the options.
17. Which one of the following questions is not asked in six-question ethics test?
a. How does it smell?
b. Who gets hurt?
c. What can we possibly get away with?
d. Would you tell your child (or young relative) to do it?
NAT: AACSB: Ethics, HRM
18. The ethical dilemma of choosing between two rights refers to

a. choosing between the lesser of two evils.
b. deciding which of two employee rights is the most important.
c. deciding to offer a bribe or lose out on an important opportunity.
d. choosing between the two types of sexual harassment.
19. The stakeholder view of social responsibility states that organizations must respond to the
needs of
a. employees and customers.
b. shareholders and owners.
c. all interested parties.
d. all those who might sue the organization.
20. A firm is said to have good corporate social performance when

a. stockholders invest in socially responsible causes.
b. charitable deductions are automatically deducted from pay without the consent of
employees.
c. the company has not been convicted of ethical violations for five consecutive
years.
d. stakeholders are satisfied with its level of social responsibility.
21. Corporate social responsibility has three components according to professors

Basu and Palazzo:
a. cognitive, linguistic, and cognitive
b. ethical, social, authoritative.
c. reflective, analytic, corporative
d. conceptual, sensing, assertive
ANS: A PTS: 1 DIF: D REF: p. 92
22. A socially responsible mutual fund will only purchase stocks in companies that
a. have a no-smoking policy in place.
b. have a culturally diverse management team.
c. hire some job candidates who are HIV positive.
d. have good social performance.
NAT: AACSB: Reflective Thinking, Operations Management
23. A whistle blower is an employee who

a. exposes organizational wrongdoing.
b. complains a lot to company management.
c. engages in unethical behavior.
d. referees disputes with other employees.
24. Which one of the following approaches to creating an ethical and socially responsible
workplace is likely to be the most powerful?
a. Passing out buttons with the statement "Just Say No to Bad Ethics"
b. Placing posters about ethics throughout the organization
c. Top management acting as models of the right behavior
d. Including a statement about ethics and social responsibility in the employee
handbook
NAT: AACSB: Ethics, Leadership Principles
25. A recommended way of minimizing unethical behavior is for employees to

a. write anonymous notes to ethical violators.
b. immediately report all suspicious behavior to top management.
c. spend part of their vacation preparing a personal philosophy of ethics.
d. Confront fellow employees about ethical deviations.
TRUE/FALSE
1. In some situations a company action can be legal, yet still unethical.
ANS: T PTS: 1 DIF: M REF: p. 75

2. Ethics is the study of moral obligation, or separating right from wrong.
ANS: T PTS: 1 DIF: E REF: p. 75

3. According to the concept of moral intensity, an intensely moral person will be equally ethical
in almost all situations.
ANS: F PTS: 1 DIF: M REF: p. 76

4. According to the utilitarian view of ethics, what really counts is the net balance of good
consequences over bad.

5. According to the ethical philosophy of pragmatism, there are certain absolute principles or
standards, objective truth, and objective reality that one must follow in business.

6. Oscar, the meat department manager at a supermarket, follows a deontological view of ethics.
He therefore sees no ethical problem in selling rabbit meat and labeling it as chicken, so long
as no customer gets sick.
ANS: F PTS: 1 DIF: D REF: p. 78

7. Lois is a sleazy individual who is out to manipulate and trick people. According to the virtue
ethics point of view, even when Lois's actions do not harm people, she is still unethical.
ANS: T PTS: 1 DIF: M REF: pp. 78-79

8. An ethically centered manager is more concerned about the completion dates of a project
than high quality, because he or she is primarily concerned about customer satisfaction.

9. According to a survey conducted by the Ethics Resource Center, a frequent ethical problem is
lying to employees, customers, vendors, or the public.

10. An individual driver of unethical behavior is unconscious biases that lead us to behave in
unjust ways toward others.

11. Violating software agreements is so widely practiced, it is now considered no more illegal
than an able-bodied person parking in a spaced reserved for physically disabled people.
ANS: F PTS: 1 DIF: E REF: p. 84


12. Dhani is the human resources manager for a government agency. He faces a conflict of
interest when his girlfriend's mother applies to the agency and he must provide input on
whether the woman should be hired.
ANS: T PTS: 1 DIF: D REF: p. 86

13. Whether to use corporate resources for personal use is an ethical dilemma that falls into a
gray area for many people.

14. As a Website advertiser, you know that you have been the victim of click fraud when
thousands of people click on your ad with absolutely no interest in making a purchase--and
you are charged for all those clicks.

15. One of the ethical problems with backdating stock options is that it involves lying about
when the option was granted.

NAT: AACSB: Analytic, Creation of Value
16. One of the questions in the guide to ethical decision making asks, "Who gets hurt?"

17. A study of Wal-Mart suggests that what constitutes being socially responsible is not so clear
cut.
ANS: T PTS: 1 DIF: D REF: pp. 95-97

18. The concept of social responsibility holds that business organizations have a legal obligation
to be good citizens.

NAT: AACSB: Reflective Thinking, Environmental Influence
19. Parties often disagree about what constitutes socially responsible behavior, such as selling
handguns in a retail store.


20. The stakeholder viewpoint is the traditional perspective on social responsibility that a
business organization is responsible only to its owners and stockholders

21. Organizations take a major social responsibility initiative when they establish programs that
help employees balance the demands of work and personal life.

22. Lincoln Electric Co., a Cleveland-based manufacturer of welding equipment, has become the
model of a company whose management has avoided downsizing.

23. Blowing the whistle on one's employer frequently leads to negative consequences for the
individual, such as no further promotions or low performance evaluations.

24. According to the concept of a virtuous cycle, corporate social performance and financial
performance enhance each other.

25. Economically viable refers to such financial benefits as attaining reduced costs from energy
savings, gaining governmental subsidies, and avoiding penalties..

ESSAY
1. A major corporate thrust toward ethical and socially responsible behavior to go green. How
can a company try to create a sustainable environment
ANS:
Going green means creating processes that are (1) environmentally friendly, (2) economically
viable, and (3) pragmatic. Environmentally friendly refers to reducing pollution.
Economically viable refers to reduced costs from energy savings. A pragmatic approach
means sustainability through a realistic approach.

PTS: 1 DIF: M REF: p. 102
NAT: AACSB: Analytic, Environmental Influence
2. Imagine that you are about to hire a relative or close friend over a more qualified outside
candidate. Take this problem through the ethical decision-making guide, and reach a decision
about whether to hire him or her.
ANS:
Decision makers ask six things
Is it right? No; Is it fair? No; Who gets hurt? The qualified candidate; Would you be
comfortable if the details of your decision were reported on the front page of your local
newspaper, on a popular Web site or blog, or through your companys e-mail system? No;
Would you tell your child to do it? No; How does it smell? Bad.
The person should not be hired.

3. Are values closely related to ethics? Explain
ANS:
Values are closely related to ethics. Values can be considered clear statements of what is
critically important. Ethics become the vehicle for converting values into actions, or doing
the right thing. A persons values also influence which kind of behaviors he or she believes
are ethical.

4. Nestle India wants to produce its products locally. About half its 480 factories are located in
developing countries.The company has introduced a water education program, has bored
wells
for nearly 100 village schools for children, and teaches hygiene programs.
1. Why is Nestle a socially responsible company?
2. How has social responsibly increased Nestles profits?
ANS:
1. The initiatives by Nestle India to create clean water supplies can considered socially
responsible because they are looking out for the welfare of society.

2. Being socially responsible leads to increased profits for Nestle because without clean
water
available locally, the company cannot operate successfully.
PTS: 1 DIF: D RE
CHAPTER 3ETHICS AND SOCIAL RESPONSIBILITY
MULTIPLE CHOICE
1. Business ethics deals primarily with

a. Social responsibility.
b. the pricing of products and services.
c. Moral obligation.
d. Being unfair to the competition.
2. Ethics are important because

a. Suppliers prefer to deal with ethical companies.
b. Customers prefer to deal with ethical companies.
c. Employees prefer to deal with ethical companies.
d. all of the choices.
3. According to the concept of moral intensity, a worker is most likely to behave ethically and
legally when
a. A manager observes his or her behavior closely.
b. The worker has intense morals.
c. The consequences of the act are minor.
d. The consequences of the act are substantial.
4. Pierre takes a utilitarian viewpoint of ethics. He will therefore judge a business decision to be
ethical so long as
a. More good than bad results from the decision.
b. Everybody is treated fairly.
c. Certain rights are not violated.
d. He has good character and integrity.

5. Small-business owner Jason is thinking about giving a potential customer an expense paid
vacation to Las Vegas for her and her husband. When asked if he is being ethical, Jason
replies, "Look whatever works works." Which ethical principle is Jason most likely using?
a. focus on the rights of individuals
b. pragmatism
c. utilitarianism (consequences)
d. focus on integrity (virtue ethics)
6. Bonita is an ethically centered production manager so she will ship a product

a. Only after all its problems have been eliminated.
b. Only if the shipping people use packing material that does not harm the
environment.
c. Only after an ethics committee has approved it.
d. As quickly as she can to meet the customer's schedule.
7. Benefits derived from social responsibility include;

a. enhanced organizational efficiency
b. producing better products
c. attracting people who want to work for the firm
d. both a & c
NAT: AACSB: Ethics, Environmental Influence
8. According to concept of moral laxity, workers will often behave unethically because
a. they have planned to be unethical.
b. they come from dysfunctional families.
c. other issues seem more important at the time.
d. management pressures them into unethical behavior.
9. Unethical behavior is often triggered by

a. pressure from higher management to achieve goals.
b. an organizational atmosphere that condones such behavior.
c. both a & b
d. a system of checks and balances.
NAT: AACSB: Ethics, Group Dynamics
10. Building a sustainable environment includes

a. developing a green supply chain
b. omitting hazardous emissions
c. both a & b
d. writing a code of ethics
ANS: C PTS: 1 DIF: M REF: pp. 102-103
NAT: AACSB: Technology, Operations Management
11. Fairness in employment practices centers on

a. hiring no family members or friends.
b. giving people equal rewards for accomplishing the same tasks.
c. obeying equal employment opportunity legislation.
d. avoiding conflicts of interest.
12. Which one of the following is not recommended as a method for a company to protect itself
against sexual harassment charges?
a. Develop a zero-tolerance policy on harassment and communicate it to employees.
b. Retaliate swiftly against employees who bring forth charges of harassment.
c. Give swift and sure punishment to harassers.
d. Train managers at all levels on sexual harassment issues.
ANS: B PTS: 1 DIF: D REF: p. 85
13. Team leader Gary is scheduled to prepare a performance of Lisa, a team member who also
happens to be his wife's closest friend. The ethical temptation Gary faces is
a. sexual harassment.
c. dealing with confidential information.
d. conflict of interest.
14. Kate, the owner of a small telecommunications firm gives gifts of stock in her company to
telephone company mangers who purchase her equipment. Kate is giving in to the ethical
temptation of
a. kickbacks.
c. sexual harassment.
d. treating people unfairly.

15. Marvin has his own Website that carries ads for a dozen retailers. At night, Marvin spends
hours clicking on these sites so he can collect commissions from the advertisers. Marvin is
engaged in the scandal referred to as
a. click fraud.
b. work-at-home scam.
c. cyber squatting.
d. backdating Websites.
NAT: AACSB: Technology, Information Technologies
16. The purpose of backdating stock options is to give the stock-option holder
a. large payout on his or her birthday.
b. tax-free investment.
c. chance to diversify his or her stock portfolio.
d. sure profit on the options.
17. Which one of the following questions is not asked in six-question ethics test?
a. How does it smell?
b. Who gets hurt?
c. What can we possibly get away with?
d. Would you tell your child (or young relative) to do it?
18. The ethical dilemma of choosing between two rights refers to

a. choosing between the lesser of two evils.
b. deciding which of two employee rights is the most important.
c. deciding to offer a bribe or lose out on an important opportunity.
d. choosing between the two types of sexual harassment.
19. The stakeholder view of social responsibility states that organizations must respond to the
needs of
a. employees and customers.
b. shareholders and owners.
c. all interested parties.
d. all those who might sue the organization.
20. A firm is said to have good corporate social performance when

a. stockholders invest in socially responsible causes.
b. charitable deductions are automatically deducted from pay without the consent of
employees.
c. the company has not been convicted of ethical violations for five consecutive
years.
d. stakeholders are satisfied with its level of social responsibility.
21. Corporate social responsibility has three components according to professors

Basu and Palazzo:
a. cognitive, linguistic, and cognitive
b. ethical, social, authoritative.
c. reflective, analytic, corporative
d. conceptual, sensing, assertive
ANS: A PTS: 1 DIF: D REF: p. 92
22. A socially responsible mutual fund will only purchase stocks in companies that
a. have a no-smoking policy in place.
b. have a culturally diverse management team.
c. hire some job candidates who are HIV positive.
d. have good social performance.
23. A whistle blower is an employee who

a. exposes organizational wrongdoing.
b. complains a lot to company management.
c. engages in unethical behavior.
d. referees disputes with other employees.
24. Which one of the following approaches to creating an ethical and socially responsible
workplace is likely to be the most powerful?
a. Passing out buttons with the statement "Just Say No to Bad Ethics"
b. Placing posters about ethics throughout the organization
c. Top management acting as models of the right behavior
d. Including a statement about ethics and social responsibility in the employee
handbook

25. A recommended way of minimizing unethical behavior is for employees to
a. write anonymous notes to ethical violators.
b. immediately report all suspicious behavior to top management.
c. spend part of their vacation preparing a personal philosophy of ethics.
d. Confront fellow employees about ethical deviations.
TRUE/FALSE
1. In some situations a company action can be legal, yet still unethical.

2. Ethics is the study of moral obligation, or separating right from wrong.

3. According to the concept of moral intensity, an intensely moral person will be equally ethical
in almost all situations.

4. According to the utilitarian view of ethics, what really counts is the net balance of good
consequences over bad.

5. According to the ethical philosophy of pragmatism, there are certain absolute principles or
standards, objective truth, and objective reality that one must follow in business.

6. Oscar, the meat department manager at a supermarket, follows a deontological view of ethics.
He therefore sees no ethical problem in selling rabbit meat and labeling it as chicken, so long
as no customer gets sick.
ANS: F PTS: 1 DIF: D REF: p. 78


7. Lois is a sleazy individual who is out to manipulate and trick people. According to the virtue
ethics point of view, even when Lois's actions do not harm people, she is still unethical.
ANS: T PTS: 1 DIF: M REF: pp. 78-79

8. An ethically centered manager is more concerned about the completion dates of a project
than high quality, because he or she is primarily concerned about customer satisfaction.

9. According to a survey conducted by the Ethics Resource Center, a frequent ethical problem is
lying to employees, customers, vendors, or the public.

10. An individual driver of unethical behavior is unconscious biases that lead us to behave in
unjust ways toward others.

11. Violating software agreements is so widely practiced, it is now considered no more illegal
than an able-bodied person parking in a spaced reserved for physically disabled people.
ANS: F PTS: 1 DIF: E REF: p. 84

12. Dhani is the human resources manager for a government agency. He faces a conflict of
interest when his girlfriend's mother applies to the agency and he must provide input on
whether the woman should be hired.

13. Whether to use corporate resources for personal use is an ethical dilemma that falls into a
gray area for many people.

14. As a Website advertiser, you know that you have been the victim of click fraud when
thousands of people click on your ad with absolutely no interest in making a purchase--and
you are charged for all those clicks.

15. One of the ethical problems with backdating stock options is that it involves lying about
when the option was granted.

16. One of the questions in the guide to ethical decision making asks, "Who gets hurt?"

17. A study of Wal-Mart suggests that what constitutes being socially responsible is not so clear
cut.
ANS: T PTS: 1 DIF: D REF: pp. 95-97

18. The concept of social responsibility holds that business organizations have a legal obligation
to be good citizens.

NAT: AACSB: Reflective Thinking, Environmental Influence
19. Parties often disagree about what constitutes socially responsible behavior, such as selling
handguns in a retail store.

20. The stakeholder viewpoint is the traditional perspective on social responsibility that a
business organization is responsible only to its owners and stockholders

21. Organizations take a major social responsibility initiative when they establish programs that
help employees balance the demands of work and personal life.

22. Lincoln Electric Co., a Cleveland-based manufacturer of welding equipment, has become the
model of a company whose management has avoided downsizing.


23. Blowing the whistle on one's employer frequently leads to negative consequences for the
individual, such as no further promotions or low performance evaluations.

24. According to the concept of a virtuous cycle, corporate social performance and financial
performance enhance each other.

25. Economically viable refers to such financial benefits as attaining reduced costs from energy
savings, gaining governmental subsidies, and avoiding penalties..

ESSAY
1. A major corporate thrust toward ethical and socially responsible behavior to go green. How
can a company try to create a sustainable environment
ANS:
Going green means creating processes that are (1) environmentally friendly, (2) economically
viable, and (3) pragmatic. Environmentally friendly refers to reducing pollution.
Economically viable refers to reduced costs from energy savings. A pragmatic approach
means sustainability through a realistic approach.

NAT: AACSB: Analytic, Environmental Influence
2. Imagine that you are about to hire a relative or close friend over a more qualified outside
candidate. Take this problem through the ethical decision-making guide, and reach a decision
about whether to hire him or her.
ANS:
Decision makers ask six things
Is it right? No; Is it fair? No; Who gets hurt? The qualified candidate; Would you be
comfortable if the details of your decision were reported on the front page of your local
newspaper, on a popular Web site or blog, or through your companys e-mail system? No;
Would you tell your child to do it? No; How does it smell? Bad.
The person should not be hired.

3. Are values closely related to ethics? Explain
ANS:
Values are closely related to ethics. Values can be considered clear statements of what is
critically important. Ethics become the vehicle for converting values into actions, or doing
the right thing. A persons values also influence which kind of behaviors he or she believes
are ethical.

4. Nestle India wants to produce its products locally. About half its 480 factories are located in
developing countries.The company has introduced a water education program, has bored
wells
for nearly 100 village schools for children, and teaches hygiene programs.
1. Why is Nestle a socially responsible company?
2. How has social responsibly increased Nestles profits?
ANS:
1. The initiatives by Nestle India to create clean water supplies can considered socially
responsible because they are looking out for the welfare of society.
2. Being socially responsible leads to increased profits for Nestle because without clean
water
available locally, the company cannot operate successfully.
PTS: 1 DIF: D REF: pp. 74-75 NAT: AACSB: Ethics, Strategy

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1. Walmart has been called a template for 21st century capitalism.

3. Businesses and society are independent of one another.

8. Market stakeholders include nongovernmental organizations and the media.

9. Government can be considered both a market and nonmarket stakeholder.

10. The interests of different stakeholders often coincide.

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15. The external environment of business is static.

16. Which statement is not correct about the business-society interdependence?

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D. Both A and B, but not C.

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23. The instrumental argument says stakeholder management is:

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24. The fiduciary duty of managers benefits a firms:

25. A number of European countries require public companies to include

26. Stakeholder groups can include:

27. Which one of the following is considered to be a nonmarket stakeholder of

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28. Which of the following is not considered to be a nonmarket stakeholder?

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30. The phenomenon of a person or group holding multiple stakeholder duties

31. A stakeholder analysis:

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34. Customers can exercise economic stakeholder power by:

35. Which of the following is not an example of stakeholders economic power?

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37. What stakeholder group(s) can exercise legal power?

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40. Stakeholders have been able to form international coalitions more

41. When something stands out from a background, is seen as important, or

42. Stakeholders stand out to managers when they exhibit:

43. A stakeholder map is a useful tool because:

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44. Departments, or offices, within an organization that reach across the

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45. Interactions between business and society occur:

Short Answer Questions

46. Describe how general systems theory can be applied to a business.

49. Discuss why a manager should, or should not, be considered a stakeholder.

51. What is a stakeholder map? Why is it a useful tool?

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True / False Questions

2. Emerging public issues are a risk and an opportunity.

3. Understanding and responding to changing societal expectations a business necessity.

5. Organizations always have full control of a public issue.

6. Environmental analysis is a method managers use to gather information about external

7. Environmental intelligence is the acquisition of information gained from analyzing the

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8. According to management scholar Karl Albrecht, scanning to acquire environmental

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Multiple Choice Questions

16. A public issue is also sometimes referred to as:

17. The emergence of a public issue indicates that:

18. Failure to understand the beliefs and expectations of stakeholders:

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20. According to management scholar Karl Albrecht, scanning to acquire environmental

21. Customer environmental intelligence includes:

22. The "graying" of the population is an example of:

23. An analysis of the stability or instability of a government is an example of scanning the:

24. Legal environmental intelligence includes:

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27. The issues management process is a: