Test Bank for Canadian Business And Society : Understanding Social And Ethical Challenges 1st Canadian Edition by Robert W Sexty

Description

Chapter 4

Student: ___________________________________________________________________________

  1. Stakeholder management represents how managers perceive stakeholders. This suggests that stakeholders can be controlled.
    True    False

 

  1. All corporations should involve themselves in stakeholder management.
    True    False

 

  1. The main value of creating a map or diagram of the stakeholders of a company is to gain an understanding for the number of stakeholders and their real and possible influences.
    True    False

 

  1. Stakeholder management capability involves analysis of the power stakeholders held over the organization’s decisions. This is done in the process level of stakeholder management.
    True    False

 

  1. NTM Corporation has assigned Robert to respond to environmental NGOs as a key stakeholder group. Robert considers environmentalism to be an inappropriate concern for business. For this reason, he will be an appropriate choice for this role.
    True    False

 

  1. Portfolio analysis can be used to assess stakeholders.
    True    False

 

  1. Matrix mapping is a technique of categorizing an organization’s stakeholders by their influence according to two variables.
    True    False

 

  1. Bart is hoping to develop effective strategies to help his company deal with hiring practices for employees. He does a matrix map to determine the influence of the union on this process. Although useful, matrix mapping will not help Bart identify appropriate courses of action to counter or influence the demands placed by this stakeholder.
    True    False

 

  1. Nancy identifies that a particular NGO is a problematic stakeholder. This implies that the NGO will oppose the course of action proposed by Nancy’s company and should be considered an important stakeholder.
    True    False

 

  1. Low priority stakeholders are supportive of an organization’s course of action.
    True    False

 

  1. A strategy to manage antagonistic stakeholders is to provide educational programs.
    True    False

 

  1. When considering the diagnostic typology of organizational stakeholders, the strategy for managing supportive stakeholders is to encourage the cooperative potential and not ignore them or take them for granted.
    True    False

 

  1. When considering the diagnostic typology of organizational stakeholders, the strategy for managing marginal stakeholders is to monitor them closely while recognizing that their interests are narrow and issue-specific.
    True    False

 

  1. Ahmed is assessing and managing stakeholder relationships regarding his company’s planned change to their supply chain. He determines that the sales employees within his company are not a particularly powerful threat, but are not likely to cooperate with the planned change. This stakeholder group is considered marginal and should therefore be involved more fully in the decision-making.
    True    False

 

  1. Stakeholder salience may change by acquiring an attribute.
    True    False

 

  1. Legitimacy is a generalized perception that the actions of an entity are appropriate within some socially constructed system of norms.
    True    False

 

  1. Stakeholder attributes: power, legitimacy, and urgency, exist in an objective, steady state.
    True    False

 

  1. Latent stakeholders are those with one attribute and low salience, whereas expectant stakeholders possess three attributes and are more salient.
    True    False

 

  1. Nahreem is identifying the salient stakeholders for her company. She determines that a particular NGO is dangerous because it possesses power and urgency but lacks legitimacy.
    True    False

 

  1. Power can be used to influence another to act in ways other than they intended.
    True    False

 

  1. If a definitive stakeholder loses an attribute no salience exists.
    True    False

 

  1. Ishmal determines that the company shareholders expect attention from the company, but their demands are not urgent. He also notes that they do have considerable power and a legitimate claim to have input. This stakeholder is a dependent stakeholder and therefore in the definitive stakeholder category.
    True    False

 

  1. Resource dependence applies when an organization only has one supplier to obtain one or more resources.
    True    False

 

  1. The difference between a withholding strategy and a usage strategy is whether the intention to change behaviour exists.
    True    False

 

  1. Indirect strategies, such as influence pathway, requires communication and cooperation of high degree between stakeholders, therefore they are difficult to sustain.
    True    False

 

  1. Increasing the organization’s environmental stability and enhancing control over changing circumstances are goals of collaboration.
    True    False

 

  1. Stakeholder management focuses on managing relationships whereas stakeholder collaboration focuses on building relationships.
    True    False

 

  1. Social capital is created when the relationship between stakeholders and the organization gains increased understanding, cooperation, and coordination.
    True    False

 

  1. Effective and efficient relationships with stakeholders may provide a competitive advantage.
    True    False

 

  1. Stakeholder collaboration is also referred to as stakeholder engagement in the academic literature and in corporate reports.
    True    False

 

  1. One perspective of social capital views it as the trust or goodwill existing between the corporation and its stakeholders.
    True    False

 

  1. An example of the potential business value created by the benefits of social capital is when norm adherence establishes a strong emotional connection between the corporation and its customers.
    True    False

 

  1. Which of the following is an industry where it is particularly important for corporations to be involved in stakeholder management?
    A. Oil and Gas industry
    B. Pharmaceutical industry
    C. Automotive industry
    D. Child care services industry
    E. All of the answers.

 

  1. BCS Corporation is developing its level of stakeholder management capability. In the _______ level of the process of managing stakeholder relationships, the firm identifies coalitions that are formed amongst the stakeholder groups.
    A. rational
    B. process
    C. transactional
    D. stakeholder identification
    E. None of the answers.

 

  1. Roberta is responsible for the firm’s relationship with its suppliers. She is careful to ensure that they receive regular emails regarding product development and that they are invited to company sponsored events. Roberta’s role is consistent with which level of Freeman’s stakeholder relationship process?
    A. Process
    B. Rational
    C. Transactional
    D. Stakeholder identification
    E. None of the answers.

 

  1. The position/importance matrix is a method used to categorize stakeholders. Stakeholders who would oppose the organization’s course of action and are relatively unimportant to the organization would be placed in the ________ category.
    A. low priority stakeholders
    B. antagonistic stakeholders
    C. supporter stakeholders
    D. problematic stakeholders
    E. None of the answers.

 

  1. Kim is applying the position/importance matrix as a method to categorize stakeholders in his company. The company is considering changing the colour of its product from blue to bright pink. Stakeholders who support the organization’s course of action and are relatively unimportant to the company are considered _________ and a(n) __________ strategy is appropriate.
    A. low priority stakeholders; accommodation
    B. supporter stakeholders; educational
    C. low priority stakeholders; educational
    D. supporter stakeholders; accommodation
    E. None of the answers.

 

  1. Telus Corporation announced in February 2007 that it has no plans to change its policy of supporting the download of pornography to cellular phones. Parents opposed to this policy, and are considered by the company to be very important stakeholders. They are also likely to form coalitions to gain further power. Parents are _________ stakeholders and a(n) _____________ strategy is appropriate.
    A. antagonistic; avoidance
    B. problematic; defensive
    C. antagonistic; defensive
    D. problematic; avoidance
    E. None of the answers.

 

  1. The position/importance matrix is a method used to categorize stakeholders. Stakeholder who would support the organization’s course of action and are important to the organization would be placed in the ________ category.
    A. low priority stakeholders
    B. antagonistic stakeholders
    C. supporter stakeholders
    D. problematic stakeholders
    E. None of the answers.

 

  1. A large chain of bookstores called Littera is planning to build a new store in a small town in the prairies. They are known for their large selection and low prices. Before going public, the management at Littera decides to categorize identified stakeholders using a position/importance matrix. There are three small, independent bookstores in town. They aren’t considered to be a competitive concern. They would be categorized as _________________.
    A. low priority stakeholders
    B. antagonistic stakeholders
    C. supporter stakeholders
    D. problematic stakeholders
    E. None of the answers.

 

  1. A large chain of bookstores called Littera is planning to build a new store in a small town in the prairies. They are known for their large selection and low prices. Before going public, the management at Littera decides to categorize identified stakeholders using a position/importance matrix. The customers who would purchase from Littera would be categorized as:
    A. Low priority stakeholders
    B. Antagonistic stakeholders
    C. Supporter stakeholders
    D. Problematic stakeholders
    E. None of the answers.

 

  1. Wearebig is a large department store chain and is planning to open a new store in a city in southern Manitoba. The location was chosen because the city’s size should provide an excellent customer base for the store. Residents of a small, neighboring town are excited that the store will be open and plan to shop there as well. The residents of the small town are most probably __________ stakeholders and Wearebig should adopt a strategy to ____________.
    A. supportive; provide information to reinforce this position
    B. low priority; provide information to reinforce this position
    C. supportive; promote their involvement with other supporters
    D. low priority; promote their involvement with supporters
    E. None of the answers.

 

  1. Tammy is responsible for working with a stakeholder group that is considered by many to be the ideal stakeholder. She is working with __________ stakeholder(s), according to Savage’s diagnostic typology.
    A. Type 1
    B. Type 2
    C. Supportive
    D. Types 1 and 2
    E. Type 2 and supportive

 

  1. The diagnostic typology states that for a mixed blessing stakeholder, a(n) _________ strategy is recommended.
    A. involve
    B. collaborate
    C. monitor
    D. defend
    E. threaten

 

  1. There are three attributes in the stakeholder typology, power, legitimacy, and urgency. If a stakeholder possesses all three attributes they are called a _____________ stakeholder.
    A. dangerous
    B. definitive
    C. dominant
    D. dependent
    E. discretionary

 

  1. An oil company has just announced its intentions for a new drill site. Immediately, a known activists group mobilizes, barricades all access to the new drill site and directs media attention to the environmental concern. This group has a negative public image for getting involved in issues without due diligence in their research. This activist group would be considered a __________ stakeholder.
    A. dangerous
    B. demanding
    C. dependent
    D. discretionary
    E. dominant

 

  1. Future generations affected by the effects of an oil company drilling at an environmentally sensitive location are _________ stakeholders and are therefore _____.
    A. dormant; latent
    B. definitive; definitive
    C. discretionary; definitive
    D. discretionary; latent
    E. dormant; definitive

 

  1. A chemical manufacturing plant obtains various ingredients from many suppliers. There is one rare ingredient that is only available from a single supplier. This relationship is an example of
    A. Indirect/usage (firm power).
    B. Direct/usage (high interdependence).
    C. Indirect/withholding (low interdependence).
    D. Direct/withholding (stakeholder power).
    E. None of the answers.

 

  1. A supplier only makes one product and sells it exclusively to one chemical manufacturing plant. Their relationship is an example of
    A. Indirect/usage (firm power).
    B. Direct/usage (high interdependence).
    C. Indirect/withholding (low interdependence).
    D. Direct/withholding (stakeholder power).
    E. Direct/usage (firm power)

 

  1. When there is interdependence between the corporation and the stakeholder, which strategy exists?
    A. Usage/withholding
    B. Direct/usage
    C. Indirect/withholding
    D. Firm power
    E. Stakeholder power

 

  1. NMO Corporation has an exclusive contract with the supplier of a rare metal needed for the production of a specialized engineering process. The supplier, MTLs Inc. decides that it wants to receive more money for the material and refuses to ship. MTLs Inc. is applying a(n) _________ strategy.
    A. withholding
    B. usage
    C. resource dependence
    D. influence pathway
    E. None of the answers.

 

  1. There are very few channels to distribute MNKY Corporation’s product to rural New Brunswick. The company has therefore become dependent upon TRK Shipping to distribute its product. The only alternative shipper makes a deal with TRK Shipping to not bid down the contract price. The alternative shipper is applying a(n) ________ strategy on behalf of TRK Shipping.
    A. withholding
    B. usage
    C. influence pathway
    D. withholding and influence pathway
    E. usage and influence pathway

 

  1. Svendsen outlines a framework that includes six steps to foster stakeholder relationships. After an organization has created a foundation, aligned the organizations, and developed a strategy, it must move on to the next step, which is
    A. Initiate contact
    B. Build trust
    C. Gain consensus within the whole organization
    D. Influence pathway
    E. Evaluate the relationship

 

  1. Social capital, in regards to stakeholder relationships, is
    A. Diagnosing the potential for cooperation that allows the organization to move beyond defensive and offensive strategies against a threat.
    B. A technique of categorizing an organization’s stakeholders by their influence according to two variables.
    C. Any aspect of a corporation’s organizational arrangements that creates value and facilitates the actions of stakeholders within and external to the corporation.
    D. Networking between an organization and the stakeholders it influences to ensure a high interdependence.
    E. None of the answers.

 

  1. A proactive oil company holds a monthly town meeting to address the concerns of the community where the oil company has a drill site. At the town meeting the company shares their current events with the community and listens to their concerns. The oil company has discovered that many ideas are generated from these meetings and values the input. It has increased understanding, cooperation and coordination between the two groups as trust has been built. This is an example of
    A. Matrix mapping
    B. Stakeholder management capability
    C. Influence pathway
    D. Social capital
    E. None of the answers.

 

  1. When considering the dimensions of social capital, one can be described as represented by the networks in which the relationships are embedded. It is called:
    A. Structural
    B. Relational
    C. Cognitive
    D. Influence pathway
    E. Matrix mapping

 

  1. The model of social capital and business value creation does not include:
    A. Mutual trust
    B. Goodwill
    C. Adhering to personal norms
    D. Growth and development
    E. Operational efficiency

 

  1. Stakeholder management includes all of the following, except:
    A. Fragmentation among departments
    B. Focus on managing relationships
    C. Long-term goals
    D. Idiosyncratic implementation
    E. Buffering the organization.

 

  1. The types of latent stakeholders include all of following, except:
    A. Dormant
    B. Dangerous
    C. Discretionary
    D. Demanding
    E. All are types of latent stakeholders.

 

  1. Which of the following stakeholder types possesses two of the three attributes of power, legitimacy, and urgency?
    A. Dormant
    B. Discretionary
    C. Demanding
    D. Definitive
    E. Dominant

 

  1. Benefits of social capital and business value creation include all of the following, except:
    A. New ideas from external networks
    B. Sharing of information
    C. Work collaboration
    D. Contributions to the community
    E. Lessening of debts to unions

 

  1. Low priority stakeholders are those who
    A. Oppose a course of action and is unimportant to the organization.
    B. Support a course of action and are relatively unimportant to the organization.
    C. Oppose a course of action and are important to an organization.
    D. Support a course of action and are important to the organization.

 

  1. Differentiate between stakeholder management and stakeholder collaboration.

 

 

 

 

  1. Outline and describe the 6 steps involved in FOSTERing stakeholder relationships.

 

 

 

 

  1. Interpret the typology of influence strategies presented in Table 4.3 (Typology of Influence Strategies) of your textbook.

 

 

 

 

  1. According to a research report prepared for the Canadian Institute of Chartered Accountants, value is created through social capital obtained from stakeholder relationships. Discuss the three levels of organizational culture that explain how corporations orient themselves toward stakeholders.

 

 

 

 

 

 

c4 Key

  1. (p. 73)Stakeholder management represents how managers perceive stakeholders. This suggests that stakeholders can be controlled.
    FALSE

 

Difficulty: Moderate
Learning Objective: 04-01 Explain stakeholder analysis in an organization.
Sexty – Chapter 04 #1
 

  1. (p. 73)All corporations should involve themselves in stakeholder management.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-01 Explain stakeholder analysis in an organization.
Sexty – Chapter 04 #2
 

  1. (p. 74)The main value of creating a map or diagram of the stakeholders of a company is to gain an understanding for the number of stakeholders and their real and possible influences.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-01 Explain stakeholder analysis in an organization.
Sexty – Chapter 04 #3
 

  1. (p. 76)Stakeholder management capability involves analysis of the power stakeholders held over the organization’s decisions. This is done in the process level of stakeholder management.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-02 Describe stakeholder management capability.
Sexty – Chapter 04 #4
 

  1. (p. 76)NTM Corporation has assigned Robert to respond to environmental NGOs as a key stakeholder group. Robert considers environmentalism to be an inappropriate concern for business. For this reason, he will be an appropriate choice for this role.
    FALSE

 

Difficulty: Difficult
Learning Objective: 04-02 Describe stakeholder management capability.
Sexty – Chapter 04 #5
 

  1. (p. 76)Portfolio analysis can be used to assess stakeholders.
    TRUE

 

Difficulty: Moderate
Learning Objective: 04-02 Describe stakeholder management capability.
Sexty – Chapter 04 #6
 

  1. (p. 77)Matrix mapping is a technique of categorizing an organization’s stakeholders by their influence according to two variables.
    TRUE

 

Difficulty: Moderate
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #7
 

  1. (p. 77)Bart is hoping to develop effective strategies to help his company deal with hiring practices for employees. He does a matrix map to determine the influence of the union on this process. Although useful, matrix mapping will not help Bart identify appropriate courses of action to counter or influence the demands placed by this stakeholder.
    FALSE

 

Difficulty: Moderate
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #8
 

  1. (p. 78)Nancy identifies that a particular NGO is a problematic stakeholder. This implies that the NGO will oppose the course of action proposed by Nancy’s company and should be considered an important stakeholder.
    FALSE

 

Difficulty: Moderate
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #9
 

  1. (p. 79)Low priority stakeholders are supportive of an organization’s course of action.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #10
 

  1. (p. 79)A strategy to manage antagonistic stakeholders is to provide educational programs.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #11
 

  1. (p. 80)When considering the diagnostic typology of organizational stakeholders, the strategy for managing supportive stakeholders is to encourage the cooperative potential and not ignore them or take them for granted.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-04 Discuss the diagnostic typology of organizational stakeholders.
Sexty – Chapter 04 #12
 

  1. (p. 80)When considering the diagnostic typology of organizational stakeholders, the strategy for managing marginal stakeholders is to monitor them closely while recognizing that their interests are narrow and issue-specific.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-04 Discuss the diagnostic typology of organizational stakeholders.
Sexty – Chapter 04 #13
 

  1. (p. 80)Ahmed is assessing and managing stakeholder relationships regarding his company’s planned change to their supply chain. He determines that the sales employees within his company are not a particularly powerful threat, but are not likely to cooperate with the planned change. This stakeholder group is considered marginal and should therefore be involved more fully in the decision-making.
    FALSE

 

Difficulty: Difficult
Learning Objective: 04-04 Discuss the diagnostic typology of organizational stakeholders.
Sexty – Chapter 04 #14
 

  1. (p. 82)Stakeholder salience may change by acquiring an attribute.
    TRUE

 

Difficulty: Moderate
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #15
 

  1. (p. 82)Legitimacy is a generalized perception that the actions of an entity are appropriate within some socially constructed system of norms.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #16
 

  1. (p. 82)Stakeholder attributes: power, legitimacy, and urgency, exist in an objective, steady state.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #17
 

  1. (p. 83)Latent stakeholders are those with one attribute and low salience, whereas expectant stakeholders possess three attributes and are more salient.
    FALSE

 

Difficulty: Moderate
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #18
 

  1. (p. 83)Nahreem is identifying the salient stakeholders for her company. She determines that a particular NGO is dangerous because it possesses power and urgency but lacks legitimacy.
    TRUE

 

Difficulty: Moderate
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #19
 

  1. (p. 83)Power can be used to influence another to act in ways other than they intended.
    TRUE

 

Difficulty: Moderate
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #20
 

  1. (p. 83)If a definitive stakeholder loses an attribute no salience exists.
    FALSE

 

Difficulty: Moderate
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #21
 

  1. (p. 83)Ishmal determines that the company shareholders expect attention from the company, but their demands are not urgent. He also notes that they do have considerable power and a legitimate claim to have input. This stakeholder is a dependent stakeholder and therefore in the definitive stakeholder category.
    FALSE

 

Difficulty: Difficult
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #22
 

  1. (p. 84)Resource dependence applies when an organization only has one supplier to obtain one or more resources.
    TRUE

 

Difficulty: Moderate
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #23
 

  1. (p. 84-85)The difference between a withholding strategy and a usage strategy is whether the intention to change behaviour exists.
    FALSE

 

Difficulty: Moderate
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #24
 

  1. (p. 85)Indirect strategies, such as influence pathway, requires communication and cooperation of high degree between stakeholders, therefore they are difficult to sustain.
    TRUE

 

Difficulty: Moderate
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #25
 

  1. (p. 87)Increasing the organization’s environmental stability and enhancing control over changing circumstances are goals of collaboration.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-07 Identify the use of stakeholder collaboration approaches.
Sexty – Chapter 04 #26
 

  1. (p. 87)Stakeholder management focuses on managing relationships whereas stakeholder collaboration focuses on building relationships.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-07 Identify the use of stakeholder collaboration approaches.
Sexty – Chapter 04 #27
 

  1. (p. 88)Social capital is created when the relationship between stakeholders and the organization gains increased understanding, cooperation, and coordination.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #28
 

  1. (p. 89)Effective and efficient relationships with stakeholders may provide a competitive advantage.
    TRUE

 

Difficulty: Moderate
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #29
 

  1. (p. 87)Stakeholder collaboration is also referred to as stakeholder engagement in the academic literature and in corporate reports.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-07 Identify the use of stakeholder collaboration approaches.
Sexty – Chapter 04 #30
 

  1. (p. 89)One perspective of social capital views it as the trust or goodwill existing between the corporation and its stakeholders.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #31
 

  1. (p. 90)An example of the potential business value created by the benefits of social capital is when norm adherence establishes a strong emotional connection between the corporation and its customers.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #32
 

  1. (p. 73)Which of the following is an industry where it is particularly important for corporations to be involved in stakeholder management?
    A. Oil and Gas industry
    B. Pharmaceutical industry
    C. Automotive industry
    D. Child care services industry
    E. All of the answers.

 

Difficulty: Difficult
Learning Objective: 04-01 Explain stakeholder analysis in an organization.
Sexty – Chapter 04 #33
 

  1. (p. 76)BCS Corporation is developing its level of stakeholder management capability. In the _______ level of the process of managing stakeholder relationships, the firm identifies coalitions that are formed amongst the stakeholder groups.
    A. rational
    B. process
    C. transactional
    D. stakeholder identification
    E. None of the answers.

 

Difficulty: Moderate
Learning Objective: 04-02 Describe stakeholder management capability.
Sexty – Chapter 04 #34
 

  1. (p. 77)Roberta is responsible for the firm’s relationship with its suppliers. She is careful to ensure that they receive regular emails regarding product development and that they are invited to company sponsored events. Roberta’s role is consistent with which level of Freeman’s stakeholder relationship process?
    A. Process
    B. Rational
    C. Transactional
    D. Stakeholder identification
    E. None of the answers.

 

Difficulty: Moderate
Learning Objective: 04-02 Describe stakeholder management capability.
Sexty – Chapter 04 #35
 

  1. (p. 78)The position/importance matrix is a method used to categorize stakeholders. Stakeholders who would oppose the organization’s course of action and are relatively unimportant to the organization would be placed in the ________ category.
    A. low priority stakeholders
    B. antagonistic stakeholders
    C. supporter stakeholders
    D. problematic stakeholders
    E. None of the answers.

 

Difficulty: Easy
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #36
 

  1. (p. 79)Kim is applying the position/importance matrix as a method to categorize stakeholders in his company. The company is considering changing the colour of its product from blue to bright pink. Stakeholders who support the organization’s course of action and are relatively unimportant to the company are considered _________ and a(n) __________ strategy is appropriate.
    A. low priority stakeholders; accommodation
    B. supporter stakeholders; educational
    C. low priority stakeholders; educational
    D. supporter stakeholders; accommodation
    E. None of the answers.

 

Difficulty: Difficult
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #37
 

  1. (p. 78-79)Telus Corporation announced in February 2007 that it has no plans to change its policy of supporting the download of pornography to cellular phones. Parents opposed to this policy, and are considered by the company to be very important stakeholders. They are also likely to form coalitions to gain further power. Parents are _________ stakeholders and a(n) _____________ strategy is appropriate.
    A. antagonistic; avoidance
    B. problematic; defensive
    C. antagonistic; defensive
    D. problematic; avoidance
    E. None of the answers.

 

Difficulty: Difficult
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #38
 

  1. (p. 79)The position/importance matrix is a method used to categorize stakeholders. Stakeholder who would support the organization’s course of action and are important to the organization would be placed in the ________ category.
    A. low priority stakeholders
    B. antagonistic stakeholders
    C. supporter stakeholders
    D. problematic stakeholders
    E. None of the answers.

 

Difficulty: Moderate
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #39
 

  1. (p. 79)A large chain of bookstores called Littera is planning to build a new store in a small town in the prairies. They are known for their large selection and low prices. Before going public, the management at Littera decides to categorize identified stakeholders using a position/importance matrix. There are three small, independent bookstores in town. They aren’t considered to be a competitive concern. They would be categorized as _________________.
    A. low priority stakeholders
    B. antagonistic stakeholders
    C. supporter stakeholders
    D. problematic stakeholders
    E. None of the answers.

 

Difficulty: Moderate
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #40
 

  1. (p. 79)A large chain of bookstores called Littera is planning to build a new store in a small town in the prairies. They are known for their large selection and low prices. Before going public, the management at Littera decides to categorize identified stakeholders using a position/importance matrix. The customers who would purchase from Littera would be categorized as:
    A. Low priority stakeholders
    B. Antagonistic stakeholders
    C. Supporter stakeholders
    D. Problematic stakeholders
    E. None of the answers.

 

Difficulty: Difficult
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #41
 

  1. (p. 79)Wearebig is a large department store chain and is planning to open a new store in a city in southern Manitoba. The location was chosen because the city’s size should provide an excellent customer base for the store. Residents of a small, neighboring town are excited that the store will be open and plan to shop there as well. The residents of the small town are most probably __________ stakeholders and Wearebig should adopt a strategy to ____________.
    A. supportive; provide information to reinforce this position
    B. low priority; provide information to reinforce this position
    C. supportive; promote their involvement with other supporters
    D. low priority; promote their involvement with supporters
    E. None of the answers.

 

Difficulty: Difficult
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #42
 

  1. (p. 79)Tammy is responsible for working with a stakeholder group that is considered by many to be the ideal stakeholder. She is working with __________ stakeholder(s), according to Savage’s diagnostic typology.
    A. Type 1
    B. Type 2
    C. Supportive
    D. Types 1 and 2
    E. Type 2 and supportive

 

Difficulty: Moderate
Learning Objective: 04-04 Discuss the diagnostic typology of organizational stakeholders.
Sexty – Chapter 04 #43
 

  1. (p. 80)The diagnostic typology states that for a mixed blessing stakeholder, a(n) _________ strategy is recommended.
    A. involve
    B. collaborate
    C. monitor
    D. defend
    E. threaten

 

Difficulty: Easy
Learning Objective: 04-04 Discuss the diagnostic typology of organizational stakeholders.
Sexty – Chapter 04 #44
 

  1. (p. 83)There are three attributes in the stakeholder typology, power, legitimacy, and urgency. If a stakeholder possesses all three attributes they are called a _____________ stakeholder.
    A. dangerous
    B. definitive
    C. dominant
    D. dependent
    E. discretionary

 

Difficulty: Moderate
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #45
 

  1. (p. 83)An oil company has just announced its intentions for a new drill site. Immediately, a known activists group mobilizes, barricades all access to the new drill site and directs media attention to the environmental concern. This group has a negative public image for getting involved in issues without due diligence in their research. This activist group would be considered a __________ stakeholder.
    A. dangerous
    B. demanding
    C. dependent
    D. discretionary
    E. dominant

 

Difficulty: Difficult
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #46
 

  1. (p. 83)Future generations affected by the effects of an oil company drilling at an environmentally sensitive location are _________ stakeholders and are therefore _____.
    A. dormant; latent
    B. definitive; definitive
    C. discretionary; definitive
    D. discretionary; latent
    E. dormant; definitive

 

Difficulty: Difficult
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #47
 

  1. (p. 85)A chemical manufacturing plant obtains various ingredients from many suppliers. There is one rare ingredient that is only available from a single supplier. This relationship is an example of
    A. Indirect/usage (firm power).
    B. Direct/usage (high interdependence).
    C. Indirect/withholding (low interdependence).
    D. Direct/withholding (stakeholder power).
    E. None of the answers.

 

Difficulty: Moderate
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #48
 

  1. (p. 85)A supplier only makes one product and sells it exclusively to one chemical manufacturing plant. Their relationship is an example of
    A. Indirect/usage (firm power).
    B. Direct/usage (high interdependence).
    C. Indirect/withholding (low interdependence).
    D. Direct/withholding (stakeholder power).
    E. Direct/usage (firm power)

 

Difficulty: Moderate
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #49
 

  1. (p. 85)When there is interdependence between the corporation and the stakeholder, which strategy exists?
    A. Usage/withholding
    B. Direct/usage
    C. Indirect/withholding
    D. Firm power
    E. Stakeholder power

 

Difficulty: Difficult
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #50
 

  1. (p. 85)NMO Corporation has an exclusive contract with the supplier of a rare metal needed for the production of a specialized engineering process. The supplier, MTLs Inc. decides that it wants to receive more money for the material and refuses to ship. MTLs Inc. is applying a(n) _________ strategy.
    A. withholding
    B. usage
    C. resource dependence
    D. influence pathway
    E. None of the answers.

 

Difficulty: Difficult
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #51
 

  1. (p. 86)There are very few channels to distribute MNKY Corporation’s product to rural New Brunswick. The company has therefore become dependent upon TRK Shipping to distribute its product. The only alternative shipper makes a deal with TRK Shipping to not bid down the contract price. The alternative shipper is applying a(n) ________ strategy on behalf of TRK Shipping.
    A. withholding
    B. usage
    C. influence pathway
    D. withholding and influence pathway
    E. usage and influence pathway

 

Difficulty: Difficult
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #52
 

  1. (p. 87)Svendsen outlines a framework that includes six steps to foster stakeholder relationships. After an organization has created a foundation, aligned the organizations, and developed a strategy, it must move on to the next step, which is
    A. Initiate contact
    B. Build trust
    C. Gain consensus within the whole organization
    D. Influence pathway
    E. Evaluate the relationship

 

Difficulty: Easy
Learning Objective: 04-07 Identify the use of stakeholder collaboration approaches.
Sexty – Chapter 04 #53
 

  1. (p. 88)Social capital, in regards to stakeholder relationships, is
    A. Diagnosing the potential for cooperation that allows the organization to move beyond defensive and offensive strategies against a threat.
    B. A technique of categorizing an organization’s stakeholders by their influence according to two variables.
    C. Any aspect of a corporation’s organizational arrangements that creates value and facilitates the actions of stakeholders within and external to the corporation.
    D. Networking between an organization and the stakeholders it influences to ensure a high interdependence.
    E. None of the answers.

 

Difficulty: Moderate
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #54
 

  1. (p. 89)A proactive oil company holds a monthly town meeting to address the concerns of the community where the oil company has a drill site. At the town meeting the company shares their current events with the community and listens to their concerns. The oil company has discovered that many ideas are generated from these meetings and values the input. It has increased understanding, cooperation and coordination between the two groups as trust has been built. This is an example of
    A. Matrix mapping
    B. Stakeholder management capability
    C. Influence pathway
    D. Social capital
    E. None of the answers.

 

Difficulty: Moderate
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #55
 

  1. (p. 90)When considering the dimensions of social capital, one can be described as represented by the networks in which the relationships are embedded. It is called:
    A. Structural
    B. Relational
    C. Cognitive
    D. Influence pathway
    E. Matrix mapping

 

Difficulty: Easy
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #56
 

  1. (p. 89)The model of social capital and business value creation does not include:
    A. Mutual trust
    B. Goodwill
    C. Adhering to personal norms
    D. Growth and development
    E. Operational efficiency

 

Difficulty: Moderate
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #57
 

  1. (p. 87)Stakeholder management includes all of the following, except:
    A. Fragmentation among departments
    B. Focus on managing relationships
    C. Long-term goals
    D. Idiosyncratic implementation
    E. Buffering the organization.

 

Difficulty: Moderate
Learning Objective: 04-07 Identify the use of stakeholder collaboration approaches.
Sexty – Chapter 04 #58
 

  1. (p. 83)The types of latent stakeholders include all of following, except:
    A. Dormant
    B. Dangerous
    C. Discretionary
    D. Demanding
    E. All are types of latent stakeholders.

 

Difficulty: Moderate
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #59
 

  1. (p. 83)Which of the following stakeholder types possesses two of the three attributes of power, legitimacy, and urgency?
    A. Dormant
    B. Discretionary
    C. Demanding
    D. Definitive
    E. Dominant

 

Difficulty: Difficult
Learning Objective: 04-05 Apply the stakeholder identification and salience typology.
Sexty – Chapter 04 #60
 

  1. (p. 90)Benefits of social capital and business value creation include all of the following, except:
    A. New ideas from external networks
    B. Sharing of information
    C. Work collaboration
    D. Contributions to the community
    E. Lessening of debts to unions

 

Difficulty: Moderate
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #61
 

  1. (p. 79)Low priority stakeholders are those who
    A. Oppose a course of action and is unimportant to the organization.
    B. Support a course of action and are relatively unimportant to the organization.
    C. Oppose a course of action and are important to an organization.
    D. Support a course of action and are important to the organization.

 

Difficulty: Easy
Learning Objective: 04-03 Understand stakeholder matrix mapping.
Sexty – Chapter 04 #62
 

  1. (p. 87)Differentiate between stakeholder management and stakeholder collaboration.

Stakeholder management is usually a fragmented process, with responsibility divided between different departments; stakeholder collaboration takes an integrated approach. Stakeholder management focuses on managing relationships; stakeholder collaboration focuses on building relationships. Stakeholder management attempts to buffer the organization; stakeholder collaboration focuses on creating opportunities and mutual benefits. Stakeholder management is linked to short-term business goals; stakeholder collaboration focuses on long-term business goals. Stakeholder management has idiosyncratic implementation dependent both on the divisional interest and the personal style of the manager. Stakeholder collaboration focuses on a coherent approach driven by business goals, mission, values, and corporate strategies.

 

Difficulty: Easy
Learning Objective: 04-07 Identify the use of stakeholder collaboration approaches.
Sexty – Chapter 04 #63
 

  1. (p. 87)Outline and describe the 6 steps involved in FOSTERing stakeholder relationships.

1) Creating a foundation involves relationship building in a strategic mode by incorporating it into corporate missions, values, and ethics guidelines. 2) Organizational alignment involves putting the organization’s internal systems and structures in a state of readiness to support the development of collaborative relationships including dialogue with stakeholders to obtain a clear understanding of their comments and perceptions. 3) Strategy Development is involves formulation of a strategy for new stakeholder relationships. 4) Trust building is required because trust is essential for stable social relationships as it promotes cooperation and understanding. 5) Evaluation of the effectiveness of the relationship-building effort also requires the identification of improvements. 6) Repeat the process to further improve social performance.

 

Difficulty: Easy
Learning Objective: 04-07 Identify the use of stakeholder collaboration approaches.
Sexty – Chapter 04 #64
 

  1. (p. 85)Interpret the typology of influence strategies presented in Table 4.3 (Typology of Influence Strategies) of your textbook.

Of the four cells, indirect/usage represents no difficulties for the firm, but the other three do. Indirect/withholding exists where the stakeholder, for example an NGO, encourages a customer of the corporation to withhold its business unless the corporation supplied goods in a particular form or condition. The direct/withholding cell is illustrated by a consumer boycott, and if successful, the stakeholder has the power. The fourth cell, direct/usage, is more complicated. An example is KFC restaurants directing suppliers to provide chickens that were produced under specified humane conditions.

 

Difficulty: Moderate
Learning Objective: 04-06 Explain the application of stakeholder influence strategies.
Sexty – Chapter 04 #65
 

  1. (p. 89)According to a research report prepared for the Canadian Institute of Chartered Accountants, value is created through social capital obtained from stakeholder relationships. Discuss the three levels of organizational culture that explain how corporations orient themselves toward stakeholders.

Level 1 is a compliance culture that preserves the value of stakeholder relationships as established by laws and norms and seeks to avoid unacceptable destruction of value. Level 2 is referred to as a relationship management culture where value is created but is often traded off, usually after the demands of the shareholders are satisfied. Maximum value is created at Level 3, a sustainable organizational culture. This culture maximizes the creation of value simultaneously in economic, ethical, and environmental terms. The research focused on corporations at Levels 2 and 3.

 

Difficulty: Easy
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory.
Sexty – Chapter 04 #66
 

 

 

c4 Summary

Category # of Questions
Difficulty: Difficult 14
Difficulty: Easy 23
Difficulty: Moderate 29
Learning Objective: 04-01 Explain stakeholder analysis in an organization. 4
Learning Objective: 04-02 Describe stakeholder management capability. 5
Learning Objective: 04-03 Understand stakeholder matrix mapping. 13
Learning Objective: 04-04 Discuss the diagnostic typology of organizational stakeholders. 5
Learning Objective: 04-05 Apply the stakeholder identification and salience typology. 13
Learning Objective: 04-06 Explain the application of stakeholder influence strategies. 9
Learning Objective: 04-07 Identify the use of stakeholder collaboration approaches. 7
Learning Objective: 04-08 Define social capital and understand its relationship to stakeholder theory. 10
Sexty – Chapter 04 66