Mgt CH 2

A public issue exists when there is agreement between the stakeholders’ expectations of what a business firm should do and the actual performance of that business firm.

False

Emerging public issues are both a risk and an opportunity.

True

Understanding and responding to changing societal expectations is a business necessity

True

Because the public issues that garner the most public attention change over time, companies do not waste time tracking them.

False

Organizations always have full control of a public issue.

False

Environmental analysis is a method managers use to gather information about external issues and trends.

True

Environmental intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations.

True

According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on four strategic radar screens.

False

Legal environment includes the structure, processes, and actions of government at the local, state, national, and international levels.

False

Competitive intelligence enables managers in companies of all sizes to make informed decisions in all areas of the business.

True

In the issue management process, identifying the issue involves anticipating emerging issues.

True

Financially sound companies do not need to understand how a public issue is likely to evolve, or how it will affect them.

False

For stakeholder engagement to occur, both the business and the stakeholder must be motivated to work with one another to solve the problem.

True

Dialogue between a single firm and its stakeholders is always sufficient to address an issue effectively.

False

Companies are learning that it is important to take a strategic approach to the management of public issues, both domestically and globally.

True

Public issues are also sometimes referred to as:

Both A & B: – Social issues. – Sociopolitical issues.

The emergence of a public issue indicates that:

A gap has developed between what stakeholders expect and what an organization is actually doing.

Failure to understand the beliefs and expectations of stakeholders:

Causes the performance-expectations gap to grow larger.

Issue ripeness refers to:

When society’s expectations are high and the issue is highly relevant to business.

According to management scholar Karl Albrecht, scanning to acquire environmental intelligence should focus on:

Eight strategic radar screens

Customer environmental intelligence includes:

Demographic Factors

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

Customer environment

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

Political Environment

Legal environmental intelligence includes:

Considerations of patents, copyrights, or trademarks.

The role of special interest groups is an important element in acquiring intelligence from the:

Competitor Environment

Because of the risks and opportunities public issues present, organizations need:

A systematic way of identifying, monitoring, and selecting public issues.

The issues management process is a:

Systematic process companies use when responding to public issues that are of greatest importance to the business.

The issue management process has how may stages?

Five

The components of a typical issues management process include:

All of the Above: – Identify issue. – Generate options. – Take action

Once an issue has been identified, its implications must be:

Analyzed

An issue’s public profile indicates to managers:

How significant an issue is for the organization, but it does not tell them what to do.

Once an organization has implemented the issue management program, it must:

Study the results and make necessary adjustments.

When working well, the issue management process:

Continuously cycles back to the beginning and repeats.

Contemporary issue management:

Is an interactive, forward thinking process.

A leadership role in addressing emerging management issues is often taken by:

All of the Above: – The public affairs department. – The government relations department. – The department of sustainability or environmental, health and safety.

A corporation’s issue management activities are usually linked to:

Both the board of directors and top management levels.

Overtime, the nature of business’s relationship with its stakeholders often:

Evolves through a series of stages.

Firms that believe they can make decisions unilaterally, without taking into consideration their impact on others are:

Inactive Companies

Firms that generally act only when forced to do so, and then in a defensive manner are:

Reactive Companies

Proactive companies are:

Much less likely to be blindsided by crises and negative surprises.

Stakeholder engagement is:

The process of ongoing relationship building between a business and its stakeholders.

Stakeholder engagement is, at its core, a:

Relationship

The drivers of stakeholders of engagement are:

Goals, motivation, and operational capacity

A business and its stakeholders coming together for face-to-face conversations about issues of common concern is

Stakeholder dialogue.

Corporations working collaboratively with other businesses and concerned persons and organizations is an example of:

Stakeholder networks.