MGT 4334 FINAL EXAM QUESTIONS
AND ANSWERS GRADED A+ 2025/2026
What are stakeholders? - ANS Customers, shareholders, employees, suppliers, government
agencies, and anyone who has a "stake" in a company's success.
What are the 3 approaches to stakeholder theory? - ANS Normative, descriptive,
instrumental.
What is the normative approach to stakeholder theory? - ANS It identifies ethical guidelines
that dictate how firms should treat stakeholders.
What is the descriptive approach to stakeholder theory? - ANS It focuses on the firms
behavior and assess how decisions and strategies are made for stakeholder relationships.
What is the instrumental approach to stakeholder theory? - ANS It describes what happens if
firms behave in a particular way.
What are primary stakeholders? - ANS Those whose continued association and resources are
necessary for firm's survival. (Employees, customers, shareholders, governments and
communities that provide necessary infrastructure)
What are secondary stakeholders? - ANS Not essential for firm's survival. (Media, trade
associations, interest groups)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is stakeholder orientation? - ANS The degree to which a firm understands and
addresses stakeholder demands.
What are the 3 sets of orientation activities? - ANS 1. Organization wide generation of data
about stakeholder groups and how the firm affects these groups.
2. The distribution of this info to the firm.
3. The responsiveness of the organization as a whole to this info.
What is social responsibility? - ANS An organizations obligation to maximize positive impacts
and minimize negative impacts on stakeholders.
What are the 4 levels of social responsibility? - ANS 1. Economic
2. Legal
3. Ethical
4. Philanthropic
What is the economic level of social responsibility? - ANS Must be profitable and create
value.
What is the legal level of social responsibility? - ANS Must follow laws and regulations.
What is the ethical level of social responsibility? - ANS Follow standards of acceptable
behavior as judged by stakeholders.
What is the philanthropic level of social responsibility? - ANS "give back" to society.
What is corporate citizenship? - ANS It is used to express how well firms meet those 4 levels.
What are the 4 issues associated with social responsibility? - ANS 1. Social Issues
2. Consumer Protection
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 3. Sustainability
4. Corporate Governance
Key Dimensions of Evaluating Board of Directors - ANS Board Independence
CEO is Chair (or not)
Relevance of Skills to Business Model
Director Compensation
Ownership
General approachability of proxy statement
What are social issues? - ANS Deal with concerns affecting large segments of society and the
welfare of society.
What is consumer protection? - ANS Laws passed to protect consumers from unfair and
deceptive business practices.
What is sustainability? - ANS The long-term well being of the natural environment.
What is corporate governance? - ANS The development of formal systems of accountability,
oversight, and control.
What are fiduciaries? - ANS People put in positions of trust to act of behalf of best interest of
the org.
What is the duty of care/diligence? - ANS Making informed and prudent decisions.
What is the duty of loyalty? - ANS All directors decisions should be in best interest of
corporation and shareholders.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
AND ANSWERS GRADED A+ 2025/2026
What are stakeholders? - ANS Customers, shareholders, employees, suppliers, government
agencies, and anyone who has a "stake" in a company's success.
What are the 3 approaches to stakeholder theory? - ANS Normative, descriptive,
instrumental.
What is the normative approach to stakeholder theory? - ANS It identifies ethical guidelines
that dictate how firms should treat stakeholders.
What is the descriptive approach to stakeholder theory? - ANS It focuses on the firms
behavior and assess how decisions and strategies are made for stakeholder relationships.
What is the instrumental approach to stakeholder theory? - ANS It describes what happens if
firms behave in a particular way.
What are primary stakeholders? - ANS Those whose continued association and resources are
necessary for firm's survival. (Employees, customers, shareholders, governments and
communities that provide necessary infrastructure)
What are secondary stakeholders? - ANS Not essential for firm's survival. (Media, trade
associations, interest groups)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is stakeholder orientation? - ANS The degree to which a firm understands and
addresses stakeholder demands.
What are the 3 sets of orientation activities? - ANS 1. Organization wide generation of data
about stakeholder groups and how the firm affects these groups.
2. The distribution of this info to the firm.
3. The responsiveness of the organization as a whole to this info.
What is social responsibility? - ANS An organizations obligation to maximize positive impacts
and minimize negative impacts on stakeholders.
What are the 4 levels of social responsibility? - ANS 1. Economic
2. Legal
3. Ethical
4. Philanthropic
What is the economic level of social responsibility? - ANS Must be profitable and create
value.
What is the legal level of social responsibility? - ANS Must follow laws and regulations.
What is the ethical level of social responsibility? - ANS Follow standards of acceptable
behavior as judged by stakeholders.
What is the philanthropic level of social responsibility? - ANS "give back" to society.
What is corporate citizenship? - ANS It is used to express how well firms meet those 4 levels.
What are the 4 issues associated with social responsibility? - ANS 1. Social Issues
2. Consumer Protection
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 3. Sustainability
4. Corporate Governance
Key Dimensions of Evaluating Board of Directors - ANS Board Independence
CEO is Chair (or not)
Relevance of Skills to Business Model
Director Compensation
Ownership
General approachability of proxy statement
What are social issues? - ANS Deal with concerns affecting large segments of society and the
welfare of society.
What is consumer protection? - ANS Laws passed to protect consumers from unfair and
deceptive business practices.
What is sustainability? - ANS The long-term well being of the natural environment.
What is corporate governance? - ANS The development of formal systems of accountability,
oversight, and control.
What are fiduciaries? - ANS People put in positions of trust to act of behalf of best interest of
the org.
What is the duty of care/diligence? - ANS Making informed and prudent decisions.
What is the duty of loyalty? - ANS All directors decisions should be in best interest of
corporation and shareholders.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
