Quiz 3

Question 1

Stakeholders

Answer 1

Parties affected by the business and its actions who have a interest in the business

Question 2

Stakeholders - Core Questions

Answer 2

1. Who are our stakeholders?
2. What are their stakes, interests, or issues?
3. What responsibilities does our firm have to its takeholders
4. What opportunities and challenges are presented to our firm
5. What strategies/actions should our firm take to deal with stakeholder challenges and opportunities

Question 2

Primary Stakeholders

Answer 2

Employees (unions), shareholders, creditors, suppliers, customers

Question 3

Secondary Stakeholders

Answer 3

Local communities, governments, social activist groups, media, business support groups, general public

Question 4

External Stakeholders

Answer 4

Owners, associates, employee associations, the public, directors

Question 5

Internal Stakeholders

Answer 5

Chief executive officers, line managers, operators, analysts of the technostructure, support staff, ideology

Question 6

Externality

Answer 6

The effect of a market exchange on a third party who is outside or “external” to the exchange

Question 7

Issue

Answer 7

a point in question or a matter that is in dispute where different views are held of what is or what ought to be within the purview or purpose of business, performance-based management, or stakeholder expectations

Question 8

Issue Life Cycle

Answer 8

T1 - keep an eye out for emergent issues
T2 - Awareness increases
T3 - Issue cannot be ignored
T4 - Issue peaks; potentially a crisis
T5 - May not be a source of relief, because issue awareness may not decline

Question 9

Identifying issues

Answer 9

• Researching existing / emergent trends using industry publications, media
• Surveys of internal/external stakeholders
• Roundtables/online forums
• Collaborating with stakeholders

Question 10

Ranking Issues

Answer 10

1. Priority issue for management
2. Next priorities for management
3. Of little importance to stakeholders/management

Question 11

Wicked problems

Answer 11

Issues that are particularly complex and interconnected

Question 12

Issues Management

Answer 12

A systematic process by which a organization can identify, evaluate, and respond to economic, social, and environmental issues that may impact significantly upon it

Question 13

Issues management process

Answer 13

1. Identification of issues
2. Analysis of issues
3. Ranking or prioritizing issues
4. Formulating issue responses
5. Implementing issue response
6. Monitoring and evaluating issue response

Question 14

Purpose of issues management

Answer 14

• Minimize surprises
• Helps managers anticipate change with foresight
• Tries to assess, coordinate, and integrate issues across the organization

Benefits
- helps maintain competitive advantage
- organizational behavior aligns with societal expectations

Question 15

Corporate Social Responsibility

Answer 15

• organizational responsibility
• understood as the duty an organization has towards itself and society

An umbrella concept imposing a duty on organizations to balance economic, social, and environmental responsibilities in their operations to address shareholders and other stakeholder expectations
- corporate responsibility, corporate accountability, corporate ethics, corporate citizenship, tripe-E bottom line

Question 16

Four concepts - CSR

Answer 16

• duty
  -responsibility
• business
• moral agency

Question 17

Moral Minimum

Answer 17

Duty of one individual toward another
- primary duty to cause no harm before preventing harm, removing harm and doing good
- compliance with the law is often insufficient for conducting an ethically responsible business

Question 18

Moral Responsibility

Answer 18

We are accountable for the wrongful acts we perform and for those injurious effects we bring about when this was done knowingly and freely
- diminished by uncertainty, difficulty, degree of involvement, non-seriousness of the wrongdoing
- excused by ignorance, inability

Question 19

Organizational Responsibility

Answer 19

Commit: personally do something
Omit: Personally neglect to prevent something from occurring
Co-operate: provide the resources to someone else for something to occur or prevent something from occurring
Induce: Promote a certain behavior through incentives and other means

Question 20

Shareholder view of CSR

Answer 20

Profit maximization as the primary purpose of business by law
- business corporations are responsible to owners
- managers have a fiduciary duty to principals
- businesses have no authority to operate in the social area

Question 21

Stakeholder view of CSR

Answer 21

Capitalism: Theoretically capitalism leads to overall economic prosperity, but
- is capitalism operating perfectly according to theory?
- What about market failures?
- is the distribution of wealth leading to societal prosperity for all?

Moral Agency: Business does not have moral responsibility,; only people do, but…
- What about the power and responsibility relationship?

Social Policy: Governments elected by the people and work for best interests of constituents, but
- Do governments really protect their people?
- Who can step up in the absence of those responsible for protecting the vulnerable

Question 22

Classic CSR Pyramid

Answer 22

Top
Philanthropic - promote society’s welfare by contributing resources to the community
Ethical - do what is right, fair, and just, while avoiding harm
Legal - Obey the law in operating jurisdictions
Economic - Make a profit
Bottom

Question 23

Moral CSR Pyramid

Answer 23

Social value - corporate community integration creates shared social value between business and society
Ethical Responsibility - at the center of the Moral CSR pyramid
Global Citizenship - Firms need to respect ethical local laws and international standards
Organizational Purpose - includes all different types of organizational forms including co-operatives and for-benefit business, as well as for-profits

Question 24

Triple-E (economic, ethical, and environmental) bottom line

Answer 24

Evaluates a corporation’s performance according to a summary economic, social, and environmental value the corporation adds or destroys

Question 25

Risk of not practicing CSR

Answer 25

• Damaged reputation
• Increased spending to remedy past damage
• Suspended operating permits