Chap004TB - CHAPTER 4 STAKEHOLDERS, ETHICS, AND CORPORATE...

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CHAPTER 4 STAKEHOLDERS, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY TRUE/FALSE Learning Goal 1 Identify stakeholders in an organization. Level of Learning 1 (Knows basic terms and facts) 4.1. A stakeholder is an individual, institution, or community that has a stake in the operations of an organization and in how it does business. Answer: True LG: 1/LL: 1 Page: 82 AG: 7 4.2. Stakeholders include only those who regularly transact directly with the organization such as employees, customers, and suppliers. Answer: False LG: 1/LL: 1 Page: 82; figure 4.1 AG: 7 4.3. All stakeholders are in an exchange relationship with an organization. Answer: True LG: 1/LL: 1 Page: 83 AG: 7 4.4. Each stakeholder group supplies the organization with inducements and in exchange each expects to receive resources. Answer: False LG: 1/LL: 1 Page: 83 AG: 7 4.5. Managers need to take the various claims of stakeholders into account when making decisions. Answer: True LG: 1/LL: 1 Page: 83 AG: 7 4.6. Managers can always satisfy the claims of all stakeholders. Answer: False LG: 1/LL: 1 Page: 83 AG: 7 125
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Level of Learning 2 (Understands concepts and principles) 4.7. The government is a stakeholder in a firm. Answer: True LG: 1/LL: 2 Page: 82; figure 4.1 AG: 7 Rationale: Stakeholders include those who regularly transact directly with the organization, most notably employees, customers, suppliers, distributors, shareholders, and creditors. Stakeholders also include institutions that are more remote but still have a stake in how the organization operates and does business, including government, local communities, and the general public. 4.8. Employees of an organization provide labor and skills and expect value for money. Answer: False LG: 1/LL: 2 Page: 83 AG: 7 Rationale: Employees provide labor and skills and expect commensurate income, job satisfaction, job security, and good working conditions. 4.9. The government provides an organization with rules and regulations that govern business practice and maintain fair competition. In exchange the government wants businesses to adhere to rules and regulations and pay their taxes on time. Answer: True LG: 1/LL: 2 Page: 83 AG: 7 Rationale: Each stakeholder group supplies the organization with important resources (or contributions), and in exchange each expects its interests to be satisfied (by inducements). 4.10. Catering to the claims of different stakeholder groups is indicative of weak management. Answer: False LG: 1/LL: 2 Page: 83 AG: 7 Rationale: Catering to the claims of different stakeholder groups is good business strategy and will help the organization to survive and prosper in the long run. If managers do not consider the various claims of stakeholders when making decisions, stakeholders may withdraw their support. Learning Goal 2
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This note was uploaded on 04/17/2011 for the course ENTP 6380 taught by Professor Picken,j during the Spring '08 term at Dallas.

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Chap004TB - CHAPTER 4 STAKEHOLDERS, ETHICS, AND CORPORATE...

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