Business & Society, 16e (Lawrence)
Chapter 19 The Public and Corporate Reputation
1) How the general public perceives a business firm can have a major effect on its performance.
2) The public may react strongly against a firm, even when their intentions are good.
3) The way an organization presents itself to its stakeholders is known as the corporate reputation.
4) Companies that have name recognition also have a good reputation.
5) The public relations function is a boundary-spanning role that primarily involves the flow of
information to and from the organization.
6) An example of direct communications is through a company website.
7) The variety of communications channels for public relations departments has decreased due to
combined technology options.
8) A firm must constantly reestablish its brands in order to maintain their reputation.
9) The most iconic brands foster intellectual attachments that expand the firm’s market power.
10) The public scrutiny following a corporate crisis can have a political, legal, financial, and
governmental impact on its business.
11) Key employees must be identified in advance of a crisis so that they are ready to address the
issue.
12) The industries most prone to corporate crisis include the fast food industry and automakers.
13) It is recommended that businesses use the same tactics to communicate with all stakeholders.
14) The most important part of building a firm’s reputation is winning trust from its key
stakeholders.
15) An organization’s public relations programs may vary by country depending on the culture,
social mores, or political systems.
16) The general public is accurately described by which statement(s)?
A) They deal with businesses through an economic exchange.
B) This organizational stakeholder consists of individuals and groups found in society.
C) They are unable to influence a firm’s reputation.
D) All of these answers are correct.
17) Through which stakeholder networks can the public demand a certain level of performance
from a firm?
A) Consumer advocacy groups.
B) Government agencies.
C) A firm’s employees.
D) Both consumer advocacy groups and government agencies.
18) A firm can affect the general public’s opinion of its reputation through:
A) Television advertisements.
B) Billboard messages.
C) Blogs written by CEOs.
D) All of these answers are correct.
19) Which of these situations is not a reason for a firm to communicate through the media?
A) Repairing a damaged image.
B) Ignoring or downplaying an organizational crisis.
C) Managing its public relations.
D) Engaging with multiple stakeholders.
20) The corporate reputation is accurately described by which statement(s)?
A) Refers to desirable qualities.
B) Refers to undesirable qualities.
C) Relies on the perceptions of past actions, results, and future prospects.
D) All of these answers are correct.
21) The way organizational members believe others see the organization is called the corporate:
A) Identity.
B) Reputation.
C) Image.
D) Perception.
22) The corporate reputation of distinction must be built:
A) Over time.
B) During the firm’s startup period.
C) Only after a major product release.
D) Only after a corporate crisis.
23) Building a positive and ethical reputation requires a firm to:
A) Offer products that are somewhat better than their competitors.
B) Convey a compelling story about the firm and what it stands for.
C) Avoid attention from the news media.
D) Pay opinion leaders to write positive reviews.
24) Organizations with strong positive reputations are generally more successful because they:
A) Receive fewer opportunities.
B) Are generally less immune to long-term criticism.
C) Often get the benefit of the doubt in uncertain circumstances.
D) Both of these answers are correct: Receive fewer opportunities; and often get the benefit of the
doubt in uncertain circumstances.
25) A 2018 Harris poll indicated that some firms, such as Amazon, Tesla Motors, and Patagonia,
have:
A) Paid only marginal attention to the public’s perception of their reputation.
B) Earned a high reputation quotient.
C) Ignored the public’s concern for a good reputation.
D) Dropped off lists that recognize firms for their reputation.
26) The purpose of the media relations department is to manage a firm’s:
A) Customer support.
B) Relationship with the public.
C) Public image.
D) Both relationship with the public and public image.
27) A good public relations program:
A) Manages the firm’s public image and its relationship with the public.
B) Is separate from the company’s public affairs program to avoid conflicts of interest.
C) Should be primarily reactive, responding to issues as they arise.
D) Is necessary only for highly vulnerable companies.
28) Purposefully planned messages sent to selected media promoting the company without
payment to the media is called:
A) Advertising.
B) Corporate sponsorship.
C) Publicity.
D) Internal communications.
29) Which of these channels represents a traditional media outlet?
A) Blogs.
B) Cell phones.
C) Television.
D) Podcasts.
30) Global businesses that have extended their public relations strategies worldwide should:
A) Ensure that communications with local media take place in the area’s native language.
B) Never decentralize their global public relations programs to ensure the company has “one
voice.”
C) Assume that there is no anti-American sentiment in the countries where they have operations.
D) Ignore local customs and emerging issues in the locations where they operate.
31) In 2018, what was the most valuable brand according to Brand Directory?
A) Google.
B) Apple.
C) Samsung.
D) Amazon.
32) Which of the following is (are) true regarding a recognizable brand?
A) Identifies how a company is distinctive from their rivals.
B) Instills an emotional attachment that creates brand loyalty.
C) Customers trust its exceptional value.
D) All of these answers are correct.
33) Brand management often involves conveying what about a product or service?
A) The solutions provided.
B) The disadvantages of the product or service.
C) The expected experience.
D) Both the solutions provided and the expected experience.
34) A significant business disruption that stimulates extensive news media and social networking
coverage is called a(n):
A) Explosion.
B) Crisis management.
C) Corporate crisis.
D) Human error.
35) Which of the following represents a type of corporate crisis?
A) Acts of God.
B) Management indecision.
C) Mechanical problems.
D) All of these answers are correct.
36) According to the Institute for Crisis Management this industry is among the top crisis-prone
industries because of sophisticated technology found in its products:
A) Airline.
B) Automobile.
C) Pharmaceuticals.
D) Telecommunications.
37) Scenario-based press releases, key discussion points, and procedures to activate the
organization’s website are all part of which step in an effective crisis management plan?
A) Get ready before the crisis hits.
B) Communicate quickly, but accurately.
C) Use the Internet.
D) Do the right thing.
38) During crisis management, doing the right thing should include:
A) Accepting responsibility.
B) Expressing regret.
C) Minimizing the seriousness of the problem.
D) Both accepting responsibility and expressing regret.
39) Seeking to restore the firm’s reputation takes place during this effective crisis management
step:
A) Communicate quickly, but accurately.
B) Do the right thing.
C) Follow up and, where appropriate, make amends to those affected.
D) Create and document policies and procedures.
40) Media training is especially important for which company roles?
A) Board of directors.
B) Individual contributors.
C) General Counsel.
D) Both board of directors and General Counsel.
41) A rule of media communication is to:
A) Be honest.
B) Be current.
C) Be accessible.
D) All of these answers are correct.
42) Emphasizing key points and guiding the media reporter to them is called:
A) Hooking.
B) Bridging.
C) Flagging.
D) Gapping.
43) The media control technique called bridging is exemplified by which of these phrases?
A) “We are undertaking a program to correct the situation.”
B) “Your listeners may not know that….”
C) “While that is true, what is important to know is….”
D) “This is important news because….”
44) A customer tweeting about a recent bad shopping experience is using which type of media
communication?
A) Paid content.
B) Public service announcement.
C) User-generated content.
D) Event sponsorship.
45) What media technique is used to promote the general perception of a product or service, rather
than promoting its functional attributes?
A) User-generated content.
B) Issue advertisements.
C) Public service announcements.
D) Image advertisements.
46) What happened to United Airlines’ reputation after several in-flight incidents were reported,
according to the discussion case United Airlines—Navigating a Social Media Storm?
A) The airline’s reputation improved slightly.
B) The company’s public rating dropped significantly.
C) United’s reputation suffered, but not enough to fall behind American, Delta, or Southwest.
D) After the firm defended their actions, there was little to no effect on their reputation.
47) Define the general public. How do firms and the public affect one another?
48) How do firms develop a distinctive and positive reputation? How can the general public affect
a company’s reputation? Identify an organization that has recovered from having a bad reputation
and explain how the firm restored public confidence.
49) Why do firms create public relations departments? Outline the structure and activities of a
typical department.
50) What new challenges emerge when public relations strategies take on a global perspective?
51) Discuss the value of a recognizable brand. What can a company do to foster brand appeal?
What can customers do to voice dissatisfaction with a company’s products?
52) Define a corporate crisis. Outline an effective crisis management plan for a public relations
manager.
53) Evaluate public opinion influencing strategies used by business organization, such as public
service announcements, image advertisements, paid content, and event sponsorship.