1. Those who have a claim in some aspect of a firm’s products, operations, markets, industry, and outcomes are known as a. shareholders. |
C |
2. Stakeholders’ power over businesses stems from their a. ability to withdraw or withhold resources. |
A |
3. Which of the following do not typically engage in transactions with a company and thus are not essential for its survival? a. Employees |
B |
4. A firm that makes use of a __________ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm’s internal and external environments. a. stakeholder model of corporate governance |
D |
5. The degree to which a firm understands and addresses stakeholder demands can be referred to as a. a stakeholder orientation. |
A |
6. Which of the following industries tends to generate a high level of trust from consumers and stakeholders? a. Insurance |
B |
7. Which of the following is not a benefit that primary stakeholders tend to provide to organizations? a. Supplies of capital and resources. |
E |
8. A stakeholder group that is absolutely necessary for a firm’s survival is defined as a. direct. |
E |
9. When unethical acts are discovered in a firm, in most instances a. they are caused by unwilling participants. |
D |
10. Which of the following is not a method typically employed by firms when researching relevant stakeholder groups? a. Surveys |
E |
11. A stakeholder orientation can be viewed as a(n) a. necessity for business success. |
B |
12. Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer? a. The promise of customer loyalty |
B |
13. Which of the following is not associated with the stakeholder interaction model? a. Involves a two-way relationship between firm and stakeholders |
E |
14. The first of the three activities that are associated with the stakeholder orientation is the a. organization-wide generation of data. |
A |
15. Public health and safety and support of local organizations are issues most relevant to which stakeholder group? a. Investors |
B |
16. Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder? a. Environmental groups |
A |
17. The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with a. Adam Smith. |
E |
18. The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was a. Adam Smith |
A |
19. Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist’s theory are they following most closely with this belief? a. Adam Smith. |
E |
20. In ascending order, Carroll’s four levels of social responsibility are a. ethical, legal, economic, philanthropic. |
C |
21. The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is a. reputation. |
B |
22. In corporate governance, _ is the process of auditing and improving organizational decisions and actions. a. profit |
D |
23. Accountability, oversight, and control all fall under the definition and implementation of corporate a. profit. |
D |
24. Major corporate governance issues normally involve _______ decisions. a. strategic-level |
A |
25. Which of the following is a major ethical concern among corporate boards of directors? a. Compensation |
A |
26. One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _________ a. there should be no limit on what top executives can earn. |
B |
27. The specific steps for implementing the stakeholder perspective do not include which of the following? a. Identifying stakeholder groups |
D |
28. What are the four levels of social responsibility? a. Financial, religious, ethical, and philanthropic |
D |
29. The _____ model is founded in classic economic precepts. a. economic |
B |
30. Which of the following are not typically secondary stakeholders? a. Television news anchors |
C |
31. Which of the following are not typically primary stakeholders? a. Customers |
B |
32. Why do critics argue that high compensation for boards of directors is a bad thing? a. It is too expensive for the organization. |
B |
33. Board members being linked to more than one company is an example of a. strategic philanthropy. |
C |
34. What is the first step in implementing a stakeholder perspective in an organization? a. Identifying resources and determining urgency |
D |
35. A stakeholder orientation is not complete unless it includes a. clear accounting procedures. |
E |
Ethics Ch. 2
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