38. Discuss the difference between primary and secondary stakeholders in the stakeholder interaction model and give examples for each type. The stakeholder interaction acknowledges there are reciprocal relationships ANSWER: between the company and several primary and secondary stakeholders. The model also acknowledges the dialogue between the company's internal and external environments. Primary stockholders are essential to the company's survival and include: employees, shareholders, suppliers, community, government regulatory agencies and customers. Secondary stakeholders are not essential to the company's survival and include: special interest groups, the mass media, competitors and trade associations. 1 POINTS: Moderate DIFFICULTY: p. 32, primary and secondary stakeholders REFERENCES: p. 33, stakeholder interaction p. 35, figure 2-2 2.1: Identify stakeholders’ roles in business ethics LEARNING OBJECTIVES: United States - BUSPROG: Ethics NATIONAL STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities STATE STANDARDS: Blooms: Comprehension KEYWORDS: 39. Why do some businesspeople and scholars question whether ethics should have a role in business? Many business people and scholars question the role of ethics and social ANSWER: responsibility in business. and economic responsibilities are generally accepted as the most important determinants of performance. "If this is well done," say classic economic theorists, "profits are maximized more or less continuously and firms carry out their major responsibilities to society." 1 POINTS: Easy DIFFICULTY: p. 39 REFERENCES: 2.3: Examine the relationship between stakeholder orientation and social responsibility LEARNING OBJECTIVES: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities STATE STANDARDS: Blooms: Comprehension KEYWORDS:
38. Discuss the difference between primary and secondary stakeholders in the stakeholder interaction model and give examples for each type. ANSWER: The stakeholder interaction acknowledges there are reciprocal relationships between the company and several primary and secondary stakeholders. The model also acknowledges the dialogue between the company's internal and external environments. Primary stockholders are essential to the company's survival and include: employees, shareholders, suppliers, community, government regulatory agencies and customers. Secondary stakeholders are not essential to the company's survival and include: special interest groups, the mass media, competitors and trade associations. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 32, primary and secondary stakeholders p. 33, stakeholder interaction p. 35, figure 2-2 LEARNING OBJECTIVES: 2.1: Identify stakeholders’ roles in business ethics NATIONAL STANDARDS: United States - BUSPROG: Ethics STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Comprehension 39. Why do some businesspeople and scholars question whether ethics should have a role in business? ANSWER: Many business people and scholars question the role of ethics and social responsibility in business. and economic responsibilities are generally accepted as the most important determinants of performance. "If this is well done," say classic economic theorists, "profits are maximized more or less continuously and firms carry out their major responsibilities to society." POINTS: 1 DIFFICULTY: Easy REFERENCES: p. 39 LEARNING OBJECTIVES: 2.3: Examine the relationship between stakeholder orientation and social responsibility STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities KEYWORDS: Blooms: Comprehension
test-bank-business-ethics-10th-edition-ferrell.docx