Chapter 2 example #30510

Directors share a ______, which means all their decisions should be in the best interests of the corporation and its stakeholders. a. duty of loyalty b. duty of accountability c. duty of oversight d. duty of control e. duty of conflict

The concept of board members being linked to more than one company is known as _____. a. a board member compensation problem b. the stakeholder concept c. the stakeholder model of corporate governance d. the shareholder concept e. an interlocking directorate

The four levels of social responsibility are _____. a. economic, legal, ethical, and philanthropic b. ethical, philanthropic, social, and religious c. political, economic, legal, and ethical d. economic, legal, political, and social e. economic, legal, philanthropic, and social

Which of the following is NOT a primary stakeholder group? a. the Media b. employees c. shareholders d. investors e. customers

Which approach to stakeholder theory focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships. a. Control approach b. Instrumental approach c. Normative approach d. Strategic decision making approach e. Descriptive approach

The shareholder model of corporate governance _____. a. considers stakeholder welfare in tandem with corporate needs and interests b. is the same as the stakeholder model c. is a less restrictive than the stakeholder orientation d. adopts a broader view of the purpose of business than the stakeholder model e. is founded on the goal of maximizing wealth for investors and owner

The concept that refers to how closely workplace decisions align with a firm's stated strategic direction and its compliance with ethical and legal considerations is defined as _____. a. a duty of loyalty b. control c. oversight d. a duty of oversight e. accountability

In the stakeholder interaction model, _____. a. it recognizes other stakeholders, does not explicitly acknowledge that dialogue must exist, but can exist between the firm's employees and customers b. it recognizes other stakeholders and does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments c. there are no reciprocal relationships between the firm and its stakeholders d. there are reciprocal relationships between the firm and its stakeholders e. it recognizes other stakeholders and but does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments

Groups that influence and/or are affected by a company and that neither engage in economic exchanges with the firm nor are fundamental to its daily survival are collectively called _____. a. community organizations b. secondary stakeholders c. market constituents d. primary stakeholders e. significant others

_____ are groups or individuals who have a claim in some aspect of a company's products, operations, markets, industry, and outcomes. a. Gatekeepers b. Stakeholders c. Investors d. Employees e. Customers

Which of the following is NOT a secondary stakeholder group? a. employees b. special interest groups c. magazines d. trade associations e. television news reporters

Corporate governance is defined as _____. a. the management style of the firm's CEO b. formal systems of accountability, oversight, and control c. the members of the Board of Directors d. the memos sent out by upper management on appropriate conduct e. classic economic precepts, including the goal of maximizing wealth

The two-way relationship between a firm and its stakeholders is conceptualized by the _____. a. corporate governance model b. stakeholder orientation model c. stakeholder interaction model d. measures of corporate impacts table e. stockholder-focus approach

Which of the following statements is correct? a. Social responsibility is associated with decreased profits. b. The degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation. c. Ethical issues are usually easy to detect and simple to fix. d. Primary stakeholders do not typically engage in transactions with a company. e. Secondary stakeholders are essential for a company's survival.

Fortunately, social responsibility and ethics are completely interchangeable terms. a. True b. False

Executive Compensation