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Chapter 2—Stakeholder and Issues Management Approaches

TRUE/FALSE

1.The primary stakeholders of a firm include its owners, suppliers, employees, customers, and competitors.

ANS:FDIF:EasyREF:p. 43

2.Monitoring shifting coalitions is one of the steps in conducting the stakeholder analysis.

ANS:TDIF:EasyREF:p. 45

3.Organizations take voluntary steps to uphold moral responsibilities to their stakeholders.

ANS:TDIF:ModerateREF:p. 49

4.The ideal strategic situation for an organization, according to the diagnostic typology of organizational stakeholders, is type 4, the mixed blessing stakeholder.

ANS:FDIF:ModerateREF:p. 50

5.The appropriate strategy with type 2, marginal stakeholder, is to collaborate.

ANS:FDIF:HardREF:p. 50

6.A distributive method resolution technique should be the first approach a CEO uses to resolve a dispute with stakeholders.

ANS:FDIF:ModerateREF:p. 54

7.Stakeholder analysis applies to both internal and external events.

ANS:TDIF:HardREF:p. 53

8.Moral dilemmas can arise for HR managers when affirmative action policies are threatened in favor of corporate decisions to hide biases or protect corporate profits.

ANS:TDIF:ModerateREF:p. 60

9.According to Thomas Marx, the first stage of Life Cycle Issue Development is social control.

ANS:FDIF:EasyREF:p. 67

10.To effectively deal with a crisis, the solution must represent cross-departmental involvement.

ANS:TDIF:ModerateREF:p. 72

MULTIPLE CHOICE

1.Which of the following is a common area of focus for stockholder and stakeholder approach?

a. / Moral factors
b. / Economic factors
c. / Political and legal factors
d. / Technological interests

ANS:BDIF:HardREF:p. 43

2.The management approach that includes analytic concepts for mapping and evaluating strategy is _____.

a. / stakeholder management
b. / stakeholder mapping
c. / analytic review
d. / stakeholder analysis

ANS:DDIF:ModerateREF:p. 42

3.Which approach provides a framework that enables users to map and, ideally, manage the corporation’s relationship with groups to reach “win-win” collaborative outcomes?

a. / Stockholder approach
b. / Issues management approach
c. / Crisis management approach
d. / Stakeholder approach

ANS:DDIF:ModerateREF:p. 42

4.The primary stakeholders of a firm include all of the following except

a. / competitors.
b. / customers.
c. / employees.
d. / suppliers.

ANS:ADIF:EasyREF:p. 43

5.A ____ is any interest, share, or claim that a group or individual has in the outcome of a corporation’s policies, procedures, or actions toward others.

a. / crises
b. / stake
c. / strategy
d. / stock

ANS:BDIF:EasyREF:p. 44

6.Which of the following represent the first step in the stakeholder analysis?

a. / Monitoring shifting coalitions
b. / Constructing a matrix of shareholder moral responsibilities
c. / Assessing the nature of each stakeholder’s interest
d. / Mapping stakeholder relationships

ANS:DDIF:ModerateREF:p. 45

7.Which of the following is the final step in the stakeholder analysis?

a. / Monitoring shifting coalitions
b. / Constructing a matrix of shareholder moral responsibilities
c. / Assessing the nature of each stakeholder’s interest
d. / Mapping stakeholder relationships

ANS:ADIF:ModerateREF:p. 45

8.According to the stakeholder analysis, once you have identified the stakeholders who are directly or indirectly involved with your firm, which of the following steps comes next?

a. / Monitoring shifting coalitions
b. / Constructing a matrix of shareholder moral responsibilities
c. / Assessing the nature of each stakeholder’s interest
d. / Mapping stakeholder relationships

ANS:DDIF:HardREF:p. 45

9.Which of the following is NOT an area of moral responsibility for organizations?

a. / Economic
b. / Societal
c. / Legal
d. / Ethical

ANS:BDIF:ModerateREF:p. 49

10.All of the following are types of power stakeholders except those with

a. / voting power.
b. / social power.
c. / political power.
d. / economic power.

ANS:BDIF:EasyREF:p. 48

11.According to the diagnostic typology of organizational stakeholders, the ideal strategic situation for the focal corporations is type

a. / 1.
b. / 2.
c. / 3.
d. / 4.

ANS:ADIF:ModerateREF:p. 50

12.A type 2 stakeholder, according to the diagnostic typology, is referred to as a ____ stakeholder.

a. / supportive
b. / nonsupportive
c. / marginal
d. / mixed blessing

ANS:CDIF:ModerateREF:p. 50

13.Which of these strategies is suggested for a type 4, mixed blessing, stakeholder?

a. / Involve
b. / Monitor
c. / Defend
d. / Collaborate

ANS:DDIF:ModerateREF:p. 50

14.A type 2, marginal, stakeholder calls for a(n) ____ strategy.

a. / involve
b. / defend
c. / monitor
d. / collaborate

ANS:CDIF:ModerateREF:p. 50

15.Fry and Ury base their negotiation recommendations on all of the following except

a. / separate people from problems.
b. / focus on positions.
c. / generate a variety of options.
d. / use objective criteria.

ANS:BDIF:HardREF:p. 55

16.To identify and respond to trends that lead to organizational opportunities and threats, many companies use which of the following?

a. / Trend setters
b. / Market researchers
c. / Issues managers
d. / Codes of ethics

ANS:CDIF:ModerateREF:p. 60

17.Which of the following represents the first step in the 6-step issue management process?

a. / A felt need arises
b. / Social expectations
c. / Environmental scanning and issue identification
d. / Issues analysis

ANS:CDIF:ModerateREF:p. 64

18.Which of the following represents the final step in the 6-step issue management process?

a. / Social control
b. / Issue evaluation and monitoring
c. / Issues and policies enter litigation
d. / Issues response and implementation

ANS:BDIF:ModerateREF:p. 64

19.Which of the following represents the first phase of the 7-phase issue development process?

a. / A felt need arises
b. / Social expectations
c. / Environmental scanning and issue identification
d. / Issues analysis

ANS:ADIF:ModerateREF:p. 65

20.Which of the following represents the final phase of the 7-phase issue development process?

a. / Social control
b. / Issue evaluation and monitoring
c. / Issues and policies enter litigation
d. / Issues response and implementation

ANS:CDIF:ModerateREF:p. 66

21.Which of the following represents the first stage in the 4-stage issue life cycle?

a. / A felt need arises
b. / Social expectations
c. / Environmental scanning and issues identification
d. / Legislation

ANS:BDIF:ModerateREF:p. 67

22.The final stage of the 4-stage issue life cycle is

a. / litigation.
b. / issue evaluation and monitoring.
c. / legislation.
d. / social control.

ANS:DDIF:ModerateREF:p. 67

23.Which of the following is the first stage of the 4-stage crisis management approach?

a. / Reaction
b. / Accommodation
c. / Prodromal
d. / Acute

ANS:CDIF:EasyREF:p. 69

24.Which of the following is the first stage of the 5-stage crisis management approach, according to Matthews, Goodpaster, and Nash?

a. / Reaction
b. / Accommodation
c. / Prodromal
d. / Acute

ANS:ADIF:EasyREF:p. 71

25.____ is the final stage of the 5-stage crisis management approach.

a. / Agency
b. / Defense
c. / Reaction
d. / Accommodation

ANS:ADIF:ModerateREF:p. 71

26.During which stage of the 5-stage crisis management approach does the company attempt to understand the causes of the safety issue and develop an education program for the public?

a. / Agency
b. / Defense
c. / Reaction
d. / Accommodation

ANS:ADIF:HardREF:p. 71

27.Which of the following should a manager NOT use to effectively deal with a crisis situation?

a. / Use the firm’s philosophy
b. / Stage “war games”
c. / Understand the entire business
d. / Delay response to customers until the solution has been tried

ANS:DDIF:ModerateREF:p. 72

ESSAY

1.Briefly describe the seven steps of stakeholder analysis.

ANS:

Students should describe: (1) Mapping stakeholder relationships; (2) Mapping stakeholder coalitions; (3) Assessing the nature of each stakeholder’s interest; (4) Assessing the nature of each stakeholder’s power; (5) Constructing a matrix of stakeholder moral responsibilities; (6) Developing specific strategies and tactics; and (7) Monitoring shifting coalition.

REF:p. 44 - p. 52

2.Explain the diagnostic typology of organizational stakeholders.

ANS:

Please refer to Figure 2.4 in the chapter.

REF:p. 50

3.Discuss the 7-phase issue development process using an example.

ANS:

Please refer to Figure 2.9 in the text.

REF:p. 74 - p. 66

4.Describe the 4-stage issue life cycle approach.

ANS:

Please refer to Figure 2.10 in the text.

REF:p. 74 - p. 67

5.Identify and explain the 4-stage approach to crisis management.

ANS:

Please refer to Figure 2.11 in the text.

REF:p. 69