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Ethics Chapter 1

Which statement is not correct about the business-society interdependence?
actions by government rarely significantly affect business
Which of the following statements is not true about the interactive social system?
the boundary between business and society is clear and distinct
A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:
Which argument says that stakeholder management realistically depicts how companies really work?
descriptive argument
The instrumental argument says stakeholder management is
more effective as a corporate strategy
A number of European countries require public companies to include employee members on their boards of directors, so:
their interests will be explicitly represented
Which one of the following is considered to be a nonmarket stakeholder of business?
Which of the following is not considered to be a nonmarket stakeholder?
All of the following are external stakeholders of the firm except
The phenomenon of a person or group holding multiple stakeholder duties is referred to as:
role sets
A stakeholder analysis:
involves understanding the nature of stockholder interests
Customers can exercise economic stakeholder power by:
boycotting products if they believe the goods are too expensive
Which of the following is not an example of stakeholders’ economic power?
social groups protesting a governmental decision to raise taxes
When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder’s:
Legal Power
With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increasingly important:
Stakeholders have been able to form international coalitions more successfully through use of:
communications technology
When something stands out from a background, is seen as important, or draws attention it is:
Stakeholders stand out to managers when they exhibit:
power, legitimacy, and urgency
Departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society are:
boundary-spanning departments
Interactions between business and society occur:
within a finite natural ecosystem

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