Creating Shared Value

Regarding stakeholders:

• They are the same for all organizations.

   

• The only relevant stakeholder is the shareholder.

• Competitors cannot be considered stakeholders.

   

• All alternatives are wrong.

If a group is affected by one organization's strategies and actions:

• Maybe it is a stakeholder.

• Can be considered a stakeholder if it also affects the

  organization´s strategies.

• The organization should consider paying attention to it.

   

• All alternatives are correct.

M. Friedman´s ideas on the purpose of a business:

 

• Are still valid in the 21st century.

   

   

• Are no longer valid in the 21st century.

   

• Are not focused on creating value for shareholders.

   

• All alternatives are wrong.

When identifying who the stakeholders of an organization are:

 

• One should ask if they are key to its performance.

   

• The stakeholder´s objectives are not necessary.

   

• Awareness of the stakeholders´ objectives is not essential.

   

• All alternatives are correct.

When classifying stakeholders:

• According to the impact of their actions, they can be primary.

   

• All are primary stakeholders.

   

• All the stakeholders have the same profile.

   

• It´s not essential to consider the industry the organization is in.

Contemporaneous approach to business purpose:

 

• Emphasizes profits above anything else.

   

• Emphasizes creating value for all stakeholders.

   

• Arguments that profit isn’t important.

• Put shareholders above all other stakeholders.

Managing using the carrot and the stick has to do with:

 

• Incentives and punishments in the old style of management.

• Using business to feed poor people and avoid violence.

• Tools business managers correctly use to achieve results.

• All alternatives are correct.

In the current-contemporaneous world of business ideas, purpose is: 

• A new line of business firms should consider implementing.

   

• Related to the difference a firm is trying to make in a society.

   

• Pampering employees, regardless of profits.

• Pampering all stakeholders, regardless of profits.

According to Porter and Kramer (2011), usually, businesses with a clear purpose:

 

• Have high productivity and excel in their industries.

   

  .

• Usually don’t have higher productivity than competitors.

• Usually don’t have employees that are happier than competitors’.

   

• All alternatives are wrong.

According to Porter and Kramer (2011) ideas, shared value:

 

• Is not connected to competitive advantage.

   

• Competitive advantage is achieved by making shareholders happy.

• Shared value and redistribution approach are the same.

• Expands the total pool of economic and social value.