Chapter 2

Question 1

What is considered one of the most important areas of business today?

Answer 1

building effective relationships

Question 2

What helps business identify internal and external shareholders and identify, monitor, and respond to the needs, values and expectations of different stakeholder gtroups?

Answer 2

stakeholder framework

Question 3

what is corporate governance?

Answer 3

the system of accountability, oversight, and control (ethical and socially resp. behavior)

Question 4

What are those who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes

Answer 4

stakeholders

Question 5

How is the relationship between companies and their staekholders defined?

Answer 5

Two-way street

Question 6

What are the three approaches to the stakeholder theory?

Answer 6

Normative
Descriptive
Instrumental

Question 7

Principles and values help identify ethical guidelines that dictate how to treat stakeholders

Answer 7

normative

Question 8

Focuses on actual behavior, addressing decisions and strategies in stakeholder relationships

Answer 8

descriptive

Question 9

examines stakeholder relationships and describes outcomes for particular behaviors

Answer 9

instrumental

Question 10

Who are those continued association is absolutely necessary for a firm’s survival?

Answer 10

Primary Stakehodlers

Question 11

Who do not typically engage in transactions with the firm and are not essential to a firm’s survival?

Answer 11

Secondary Stakeholders

Question 12

What is th edegree to which a firm understands and addresses stakeholder demands?

Answer 12

Stakeholder orientation

Question 13

What is the main goal of stakeholder orientation?

Answer 13

Inolves activities that facilitate and maintain value with stakeholders

Question 14

What three things does stakeholder orientation entail?

Answer 14

Generation of data about stakeholders

Distribution of that information

Responsiveness of the organization as a hold

Question 15

What is an organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact?

Answer 15

Social Responsibility

Question 16

What are the four levels of social responsibility

Answer 16

Economic
Legal
Ethical
Philanthropic

Question 17

the extent to which businesses strategically meet their economic, legal, ethical, and philanthropic responsibilites

Answer 17

corporate citizenship

Question 18

What are the four interrelated dimensions of corporate citizenship?

Answer 18

1. Strong sustained economic performance
2. Rigoruous compliance
3. Ethical actions beyond what is legally required.
4. Voluntary contributions to advance reputation and stakeholder commitment

Question 19

one of an organization’s greatest intangible assets with tangible value

Answer 19

reputation

Question 20

What are the four Social Responsibility issues?

Answer 20

1. Social
2. Consumer Protection
3. Sustainability
4. Corporate Governance

Question 21

Deals with concerns that effect the welfare of entire society, associated with a common good

Answer 21

social

Question 22

The company has the responsibility of taking precations to prevent consumer harm

Answer 22

consumer protection

Question 23

Businesses can no longer afford to ignore the natural environment as a stakeholder

Answer 23

Systainability

Question 24

How closely workplace decisions align with a firm’s stragic direction

Answer 24

accountability

Question 25

A system of checks and balances to minimize opportunities for misconduct

Answer 25

oversight

Question 26

The process of auditing and improving organization decisions and actions

Answer 26

control

Question 27

What view of corporate governance states the purpose of business is to max. wealth for investors and owners

Answer 27

shareholder model

Question 28

What is a broader view of the purpose of business which includes satisfying concerns of primary stakeholders including employees, suppliers, regulators, communities, and special interest groups

Answer 28

stakeholder model

Question 29

who holders the final responsibility for its firm's sucess, failure, and ethicality of actions?

Answer 29

Board of directors

Question 30

What kind of duty do BODs have?

Answer 30

Duty of diligence

Question 31

What is the concept of board members being linked to more than one company

Answer 31

interlocking directorate

Question 32

What are the steps to implementing a stakeholder perspective?

Answer 32

1. Assessing the corporate culture 2. Indentifying stakeholder groups 3. Identifying stakeholder issues 4. Assessing organizational commitment to social responsibility 5. Identifying resources and determining urgency 6. Gaining stakeholder feedback