Question 1

What methods do special interest groups use to force organizations to alter their products or change their practices?

Accepted Answer

Special interest groups employ a variety of methods to influence organizations to alter their products or change their practices. These methods are designed to apply pressure on organizations to respond to the concerns or demands of these groups. Here are some common strategies used by special interest groups:

1. **Lobbying:** Special interest groups often engage in lobbying, which involves directly interacting with policymakers and legislators to advocate for regulatory changes that would require organizations to alter their products or practices.

2. **Public Campaigns:** These groups may launch public awareness campaigns to highlight issues with certain products or practices. This can include social media campaigns, advertisements, public demonstrations, and press conferences to garner public support and media attention.

3. **Boycotts and Consumer Pressure:** Calling for boycotts or encouraging consumers to avoid certain products can impact an organization's bottom line, prompting them to make changes. Consumer pressure can also take the form of petitions or organized efforts to contact companies directly with concerns.

4. **Shareholder Activism:** Special interest groups may buy shares in a company to gain the ability to submit shareholder resolutions, attend shareholder meetings, and influence the company's decisions from within.

5. **Litigation:** Filing lawsuits or supporting legal action against organizations can force them to change practices that are illegal or could potentially harm the public or the environment.

6. **Collaboration and Partnerships:** Some groups seek to work collaboratively with organizations to find mutually beneficial solutions that allow for product or practice changes without adversarial tactics.

7. **Research and Reports:** Publishing detailed research, case studies, or investigative reports can expose harmful practices or product issues, leading to public scrutiny and pressure on organizations to make changes.

8. **Coalition Building:** Joining forces with other organizations, experts, and activists can amplify the group's message and resources, increasing the pressure on the target organization.

9. **Direct Negotiation:** Sometimes, special interest groups will directly approach an organization to negotiate changes, using the threat of the above tactics as leverage.

10. **Social Media and Online Activism:** Utilizing platforms like Twitter, Facebook, and Instagram to spread their message, create viral content, and mobilize supporters quickly and effectively.

11. **Endorsements and Certifications:** Offering endorsements or certifications for products that meet certain standards can incentivize organizations to alter their products to gain the positive recognition associated with the endorsement.

By employing these methods, special interest groups aim to create a combination of public, financial, legal, and moral pressure that compels organizations to reconsider their products and practices in favor of more responsible, ethical, or sustainable alternatives.

Question 2

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.

Accepted Answer

A)   stakeholder model of corporate governance
B)   stakeholder bias
C)   code of ethics
D)   stakeholder interaction model
E)   corporate interface model D

Question 3

Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?

Accepted Answer

A)   Employees
B)   Secondary stakeholders
C)   Primary stakeholders
D)   Investors
E)   Customers B

Question 4

The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is

Accepted Answer

A)   reputation.
B)   corporate citizenship.
C)   corporate ethical audit.
D)   ethical citizenship.
E)   fiduciary duties.

Question 5

Which ISO guideline was established as a corporate responsibility regulation that is meant to encourage discussions on the role of social responsibility and the importance of stakeholders?

Accepted Answer

A)   ISO 3000
B)   ISO 2000
C)   ISO 265000
D)   ISO 26000
E)   ISO 14000

Question 6

A stakeholder orientation is not complete unless it includes

Accepted Answer

A)   clear accounting procedures.
B)   major financing activities.
C)   marketing strategy.
D)   feedback from special-interest groups.
E)   activities that actually address stakeholder issues.

Question 7

Which of the following is a major concern among corporate boards of directors?

Accepted Answer

A)   Compensation
B)   The non-traditional directorship approach
C)   Dividend reporting
D)   Corporate social audits
E)   Debt swaps

Question 8

Board members being linked to more than one company is an example of

Accepted Answer

A)   strategic philanthropy.
B)   stakeholder commitment.
C)   interlocking directorate.
D)   conflict of interest.
E)   an illegal activity.

Question 9

What is the first step in implementing a stakeholder perspective in an organization?

Accepted Answer

A)   Identifying resources and determining urgency
B)   Identifying stakeholder groups
C)   Identifying stakeholder issues
D)   Assessing the corporate culture
E)   Assessing organizational commitment to social responsibility

Question 10

What are the four levels of social responsibility?

Accepted Answer

A)   Financial, religious, ethical, and philanthropic
B)   Ethical, philanthropic, selfish, and short-sighted
C)   Economic, long-term, ethical, and philanthropic.
D)   Legal, economic, ethical, and philanthropic
E)   Economic, compliance, legal, and philanthropic

Question 11

Why do some businesspeople and scholars question whether ethics should have a role in business?

Accepted Answer

The answer of Why do some businesspeople and scholars question...

Question 12

One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _____

Accepted Answer

A)   there should be no limit on what top executives can earn.
B)   managers should earn no more than twenty times the pay of other employees.
C)   top managers should make the same amount as other employees.
D)   employees can determine how much managers make.
E)   the government should determine the worth of each manager's service.

Question 13

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?

Accepted Answer

A)   Adam Smith.
B)   Theodore Levitt.
C)   Norman Bowie.
D)   Herman Miller
E)   Milton Friedman.

Question 14

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

Accepted Answer

A)   Adam Smith.
B)   Theodore Levitt.
C)   Norman Bowie.
D)   Herman Miller
E)   Milton Friedman.

Question 15

In ascending order, Caroll's four levels of social responsibility are

Accepted Answer

A)   ethical, legal, economic, philanthropic.
B)   economic, ethical philanthropic, legal.
C)   economic, legal, ethical, philanthropic.
D)   legal, ethical, economic, philanthropic.
E)   ethical, legal, moral, economic.

Question 16

A stakeholder orientation can be viewed as a(n)

Accepted Answer

A)   necessity for business success.
B)   continuum.
C)   polarizing concept.
D)   good marketing ploy.
E)   expensive proposition.

Question 17

When unethical acts are discovered in a firm, in most instances

Accepted Answer

A)   they are caused by unwilling participants.
B)   the cause is due to external stakeholders.
C)   the perpetrators are caught and prosecuted.
D)   there was knowing cooperation or complicity from within the company.
E)   the cause is a corrupt Board of Directors.

Question 18

Public health and safety and support of local organizations are issues most relevant to which stakeholder group?

Accepted Answer

A)   Investors
B)   Community
C)   Suppliers
D)   Customers
E)   Employees

Question 19

The _____ model is founded in classic economic precepts.

Accepted Answer

A)   economic
B)   shareholder
C)   stakeholder
D)   board
E)   ISO

Question 20

The specific steps for implementing the stakeholder perspective do not include which of the following?

Accepted Answer

A)   Identifying stakeholder groups
B)   Identifying stakeholder issues
C)   Identifying and gaining stakeholder feedback
D)   Identifying and gaining government feedback
E)   Assessing organizational commitment to social responsibility groups

Exam 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance