Ethics Ch 2

_____ are groups or individuals who have a claim in some aspect of a company's products, operations, markets, industry, and outcomes.

• Customers

• Employees

• Investors

• Stakeholders

In the stakeholder interaction model, _____.

• there are reciprocal relationships between the firm and its stakeholders

• there are no reciprocal relationships between the firm and its stakeholders

• it recognizes other stakeholders and does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments

• it recognizes other stakeholders, does not explicitly acknowledge that dialogue must exist, but can exist between the firm's employees and customers

Which of the following is NOT a primary stakeholder group?

• the media

• employees

• investors

• shareholders

Which of the following is NOT a secondary stakeholder group?

• special interests groups

• trade associations

• magazines

• employees

The four levels of social responsibility are _____.

• economic, legal, ethical, and philanthropic

• economic, legal, political, and social

• ethical, philanthropic, social, and religious

• political, economic, legal, and ethical

Corporate governance is defined as _____.

• a. the members of the Board of Directors

• b. formal systems of accountability, oversight, and control

• c. the memos sent out by upper management on appropriate conduct

• d. classic economic precepts, including the goal of maximizing wealth

Which of the following statements is correct?

• d. The degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation.

• a. Social responsibility is associated with decreased profits.

• b. Primary stakeholders do not typically engage in transactions with a company.

• c. Secondary stakeholders are essential for a company's survival.

The two-way relationship between a firm and its stakeholders is conceptualized by the _____.

• a. measures of corporate impacts table

• b. stockholder-focus approach

• c. corporate governance model

• d. stakeholder interaction model

e. stakeholder interaction model

• a. duty of control

• b. duty of accountability

• c. duty of conflict

• d. duty of loyalty

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 _____.

• accountability

• a duty of loyalty

• control

• duty of oversight