Wrong Answers Flashcards
Public profile
How significant an issue is but does not tell what to do
The role of special interest group is an important element in acquiring intelligence from the:
Competitor environment
Competitive intelligence
Systematic and continuous process of gathering, analyzing and managing external information about the competitors that can affect the organisation’s plans, decisions and operations.
Stages in business-stakeholders relationship
- Inactive - ignore stakeholders concern and believe they can make decisions unilaterally
- Reactive - act when forced to do so, in a defensive manner
- Proactive - actively anticipate stakeholders concern using the environmental scanning practise, they are unlikely to be blindsided but still see it as a problem instead of competitive advantage
- Interactive - actively engage with stakeholders in an ongoing relationship of mutual trust, openness and respect.
Benefits of engagement.
Bring about a number of distinct strengths, alert companies of emerging issues
Learn about society’s expectations
Draw on outside expertise
Generate creative solutions
Win stakeholders’ support for implementing them
Neutralize critics
Increase reputation for constructive actions
Stakeholder theory of the firm; 3 arguments
- Descriptive - a more realistic description of how companies really work.
- concerned with producing high quality and innovative products for customers
- attract and retain talented employees
- comply with government regulations
- direct energies to stakeholders not just shareholders - Instrumental - more effective as a corporate strategy
- behave responsibly towards multiple stakeholders perform better financially
- good relationship is a form of value
- helps with bottom line - Normative - is simply the right thing to do
- great power and control over resources
- privilege carry a duty toward those affected by
- any stakeholder makes a contribution or took a risk
- has moral right to claim on corporation’s rewards
Compare and contrast the relationship a firm may have with market and nonmarket stakeholders
Market stakeholders are those that engage in economic transactions with the company as it carries out its purpose of providing society with goods and services.
- stockholder invest in the firm and receive dividends or capital gains
- creditors loan money and collect payment of interests
- suppliers provide raw materials in return for payment
Non-market stakeholders are those not engaged in direct economic transactions but nonetheless affected by its actions
- community
- various levels of government
- competitors
- public
Phases of CSR
- Corporate social stewardship
- Corporate Social Responsiveness
- Corporate/Business ethics
- Corporate/Global citizenship
CSR Drivers
- Corporate social stewardship
- executive conscience
- company image - Corporate Social Responsiveness
- social unrest
- repeated corporate misbehavior
- public policy/ regulation
- stakeholder pressure
- think tank policy papers - Corporate/Business ethics
- religious /ethnic belief
- technology-driven value change
- human rights pressure
- code of ethics
- ethics committee, training
- stakeholder negotiations - Corporate/Global citizenship
- global economic trade/investments
- high-tech communication networks
- geopolitical shift/competition
- NGO pressures
- ecological awareness/concern
CSR Policy instruments
- Corporate social stewardship
- philanthropic funding
- public relations - Corporate Social Responsiveness
- stakeholder strategy
- regulatory compliance
- social audits
- public affairs function
- governance reform - Corporate/Business ethics
- mission/vision/values
- statements
- CEO leadership ethics - Corporate/Global citizenship
- interngovernmental compacts
- global audit standards
- NGO dialogue
- sustainability audits/reports
As a response to the conflict between long- and short-term profit making, an enlightened self-interest
point of view would be the least useful and practical approach.
False
Corporations have a role in establishing their community’s
Economic growth
Iron law of responsibility
In the long run, those who do not use power in a manner that society considers responsible will tend to lose it.
Under the World Trade Organization’s most favored nation rule, member countries may not discriminate
against foreign products for any reason.
True
A firm that would like to develop a global supply chain would:
Purchase raw materials, components, or supplies from sellers in other countries.
The three strategies of globalization can be summarized using what three words?
Sell, make, and buy
Technological innovation has aided the spread of globalization by:
Leveling the playing field and allowing all to participate on an equal footing in global commerce
The loan policies of the World Bank:
Impose strict restrictions on debtor countries which can sometimes lead to hardship
Single-party rule by communist parties still remains in:
Vietnam
The richest 1 percent of the people in the world receives as much income annually as:
The poorest 57 percent.
The basis for corporate citizenship does not rely on the generosity of a firm’s senior management or their
awareness of their role as trustees of the public’s interests.
True
Robert Civita, chairman and CEO of the Brazilian Abril Group, has defined global corporate citizenship
as “socialism with a conscience.”
False
Social audits look at what an organization does, not at the results of the actions.
False
Some companies have created a department of corporate citizenship to:
Centralize under common leadership wide-ranging corporate citizenship functions
Once a company enters the innovative stage of corporate citizenship, it will:
Begin reporting its efforts to stakeholders.
Companies see the need to build more coherent initiatives as they move into the:
Integrated stage
Managers responding to the needs of the local education system as a normal or routine aspect of its
operations is an example of an organization in the:
Transformative stage
Which of the following organizations have developed standards to judge corporate performance?
International Organisation for Standards
Which of the following is true about corporate boards?
Corporate boards average 12 members.
Which of the following is not a function of board committees?
The finance committee works closely with the human resources department to fund employee salaries
The main reason that American executives are paid so much is:
Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an
interest in pushing compensation up.
Government and business together establish the regulatory rules under which business operates in society.
False
In Europe, unions are prohibited by law to be on businesses’ administrative boards.
False
To help reduce national deficits, President George W. Bush proposed cutting regulatory agencies’ budgets
False
Unilateral regulation occurs when a country seeks to regulate business by firms from its country in another
country.
True
The World Trade Organization supported President Bush’s tariff plans to protect U.S. steel firms from
unfair steel dumping.
False
Regulation can be argued as justified based on
Utilitarian and justice grounds.
An example of a regulatory agency charged with enforcing social regulation is:
FTC
Total social regulation costs are:
Significantly higher than total economic regulation costs.
Since the 1970s, staffing for economic regulation has:
Been about the same.
Deregulation is often:
A politically popular idea.
Deregulation has occurred in the following industries
Commercial airlines, railroads and financial institutions.
Unilateral regulation applies when:
All companies from a single country are regulated in how they conduct business abroad.
