1. Corporate public policy is a firm’s posture or position regarding the environmental, social, global, and ethical aspects of
stakeholders and corporate functioning.
a. True
b. False
2. There is a growing consensus that ethics should be a central component of strategic management.
a. True
b. False
3. Corporate public policy takes place primarily at the corporate level of strategy.
a. True
b. False
4. Enterprise-level strategy and societal-level strategy are synonymous.
a. True
b. False
5. Some management scholars believe that the successful firms of the future will be those that can meet stakeholders’
social expectations and investment advisors’ financial expectations.
a. True
b. False
6. The steps of the strategic management process are most effective if done sequentially in the order specified in the
textbook.
a. True
b. False
7. The sustainability report can be an effective component of a firm’s strategic control system.
a. True
b. False
8. A sustainability report is an effort to measure a firm’s overall value creation and to spur integrated thinking.
a. True
b. False
9. Sustainability reports can be thought of as a planning and control system.
a. True
b. False
10. Sustainability reporting is a new but declining concept.
a. True
b. False
11. Social performance reporting should be isolated from other forms of assessment and reporting.
a. True
b. False
12. The Global Reporting Initiative (GRI) is attempting to overcome one of the major obstacles to the advance of effective
sustainability reporting by providing standardized measures for reporting.
a. True
b. False
13. To be most effective, a sustainability report should be isolated from other aspects of the strategic management process.
a. True
b. False
14. Public affairs management focuses on the formalization and institutionalization of corporate public policy.
a. True
b. False
15. The public affairs function is a logical component of the overall strategic management process.
a. True
b. False
16. Public affairs evolved from social activism.
a. True
b. False
17. Regarding the four key strategy levels, decisions involving great uncertainty tend to be made at the lower levels.
a. True
b. False
18. One of the reasons that public affairs departments have seen extensive growth over the past three decades is because
they have been able to easily measure and document their results.
a. True
b. False
19. For the public affairs function to be effective in representing issues affecting business decision making, they should
have influence at the middle management level.
a. True
b. False
20. Good publicity is a pro of B Corporation status.
a. True
b. False
21. Which of the following terms does not have the same basic meaning?
a. corporate public policy
b. corporate social policy
c. corporate social performance
d. corporate citizenship
22. The main idea behind corporate public policy is that
a. a firm must give specific attention to issues in which basic questions of right, wrong, justice, fairness, or public
policy reside.
b. a firm must look out for its own best interests.
c. a firm should have a say in setting the political direction of the country.
d. a firm should be able to influence public policy when it can.
23. The concept of enterprise-level strategy is the idea that best links
a. ethics to performance.
b. strategy to performance.
c. public policy to performance.
d. ethics to strategy.
24. Which of the following is not one of the levels of strategy mentioned in the textbook?
a. enterprise-level
b. department-level
c. corporate-level
d. functional-level
25. The overarching strategy level that asks what role the firm plays in society and what the firm stands for is the ____
level.
a. enterprise
b. corporate
c. business
d. functional
26. The strategy level that asks what business the firm should be in is the ____ level.
a. enterprise
b. corporate
c. business
d. functional
27. ____ level strategy seeks to determine how a firm should compete in a given industry.
a. Enterprise
b. Corporate
c. Business
d. Functional
28. ____ level strategy attempts to integrate the firm’s activities to accomplish its goals.
a. Enterprise
b. Corporate
c. Business
d. Functional
29. The enterprise-level strategy may addresses the firm’s
a. Obligations to stockholders.
b. Role in society.
c. Implications of cohesion.
d. Competition strategy.
30. Corporate-level strategy decisions include all of the following except
a. mergers
b. acquisitions
c. divestitures
d. broad or narrow markets
31. All of the following represent examples of enterprise-level thinking except
a. how a firm responds to a public crisis.
b. the extent to which a firm attempts to identify social issues, analyze them, and integrate them into its strategic
management process.
c. the extent to which a firm has established board or senior management committees to grapple with social issues.
d. the extent to which a firm has studied its functional structure and made changes necessary to make its operations
more efficient.
32. The deeply ingrained principles that guide all of a company’s actions and decisions are the firm’s
a. vision statements.
b. guiding lights.
c. core values.
d. mission statements.
33. Which of the following is not one of the steps in the strategic management process?
a. goal formulation
b. strategy implementation
c. problem identification
d. environmental analysis
34. Which of the steps in the strategic management process informs all the rest?
a. goal formulation
b. strategy formulation
c. strategic control
d. environmental analysis
35. Strategic control includes all of the following steps except
a. setting standards.
b. revising budgets.
c. comparing actual performance to standards.
d. taking corrective action.
36. A systematic attempt to identify, measure, monitor, and evaluate a firm’s performance with respect to its social efforts,
goals, and programs is a(n)
a. Triple Bottom Line audit.
b. environmental audit.
c. sustainability report
d. social impact statement.
37. Which of the following terms does not refer to the same thing?
a. social audit
b. social responsibility report
c. integrated reports
d. social impact statement
38. A social audit can be thought of as
a. the first step in planning
b. a narrow list of activities
c. planning and control system
d. a brief experimentation
39. All of the following are used to describe social performance reports except
a. CSR reports
b. Corporate citizenship reports
c. Social audits
d. Sustainability reports
40. The impetus of social sustainability reports has come from
a. Societal and public interest groups expectations
b. Financial investment advisors
c. Marketing firms
d. Domestic companies
41. Sustainability reports help companies
a. By disrupting their communications systems
b. Managing their finances
c. Isolating their performance
d. With their competitive positions