MGT 408 FINAL EXAM | VERIFIED ACCURATE STUDY
GUIDE | 2026
Social Responsibility - Answers -the adoption by a business of a strategic focus for
fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by
its stakeholders
Neoclassical view of CSR - Answers -neglection of employees, customers,
communities, etc in pursuit of profit
Contemporary view of CSR - Answers -- shareholders are not the be-all, end all
- customers have real choice, access to information and the ability to communicate
- employees are assets; they have options and their continued participation is
necessary for corporate survival
stakeholders - Answers -constituents who have an interest or stake in a company's
products, industry, markets, and outcomes
shareholders - Answers -an owner of shares in the company
primary stakeholders - Answers -they are fundamental to a company's operations and
survival; these include shareholders and investors, employees, customers, suppliers,
and public stakeholders, such as government and the commmunity
secondary stakeholders - Answers -they do not typically engage in direct transactions
with a company and thus are not essential for its survival; these include the media,
trade associations, and special-interest groups
fiduciary duties - Answers -the highest standard of care. The person who has a
fiduciary duty is called the fiduciary, and the person to whom he owes the duty, is
typically referred to as the principal or the beneficiary. If an individual breaches the
fiduciary duties, he or she would need to account for the ill-gotten profit. His or her
beneficiaries are entitled to damages, even if they suffered no harm.
stakeholder orientation - Answers -the degree to which a firm understands and
addresses stakeholder demands
coercive power - Answers -involves the use of fear, suppression, punishment, or some
type of restraint
utilitarian power - Answers -involves financial or material control or based on a
decision's utility or usefulness
, symbolic power - Answers -relies on the use of symbols that connote social
acceptance, prestige, or some other attribute
dynamism - Answers -the theory that phenomena of matter or mind are due to the
action of forces rather than to motion or matter.
legitimacy - Answers -the perception or belief that a stakeholder's actions are proper,
desirable, or appropriate within a given context
urgency - Answers -the time sensitivity and the importance of the claim to the
stakeholder
principle - Answers -people who own the firm (shareholders)
agent - Answers -people who make strategic decisions on behalf of those who own the
firm (top level managers)
self-interested - Answers -seek to advance their own interests over those of others
risk-averse - Answers -disinclined or reluctant to take risks
managerial opportunism - Answers -the seeking of self-interest with guile or deceit
corporate governance - Answers -the system of rules, practices and processes by
which a company is directed and controlled
business ethics - Answers -the principles and standards that guide the behavior of
individuals and groups in the world of business
abusive supervision - Answers -the subordinates' perceptions of the extent to which
their supervisors engage in the sustained display of hostile verbal and nonverbal
behaviors excluding physical contact
workplace deviance - Answers -voluntary behaviour that violates significant
organisational norms, and in doing so, threatens the wellbeing of the organisation,
and/or its members.
FCPA or Foreign Corrupt Practices Act - Answers -illegal to make payments to foreign
government officials to assist in obtaining or retaining business
Sexual Harassment - Answers -any repeated, unwanted behavior of a sexual nature
perpetrated upon one individual by another; it may be verbal, visual, written, or physical
and can occur between people of different genders or those of the same gender
Quid pro quo - Answers -a favor or advantage granted or expected in return for
something
GUIDE | 2026
Social Responsibility - Answers -the adoption by a business of a strategic focus for
fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by
its stakeholders
Neoclassical view of CSR - Answers -neglection of employees, customers,
communities, etc in pursuit of profit
Contemporary view of CSR - Answers -- shareholders are not the be-all, end all
- customers have real choice, access to information and the ability to communicate
- employees are assets; they have options and their continued participation is
necessary for corporate survival
stakeholders - Answers -constituents who have an interest or stake in a company's
products, industry, markets, and outcomes
shareholders - Answers -an owner of shares in the company
primary stakeholders - Answers -they are fundamental to a company's operations and
survival; these include shareholders and investors, employees, customers, suppliers,
and public stakeholders, such as government and the commmunity
secondary stakeholders - Answers -they do not typically engage in direct transactions
with a company and thus are not essential for its survival; these include the media,
trade associations, and special-interest groups
fiduciary duties - Answers -the highest standard of care. The person who has a
fiduciary duty is called the fiduciary, and the person to whom he owes the duty, is
typically referred to as the principal or the beneficiary. If an individual breaches the
fiduciary duties, he or she would need to account for the ill-gotten profit. His or her
beneficiaries are entitled to damages, even if they suffered no harm.
stakeholder orientation - Answers -the degree to which a firm understands and
addresses stakeholder demands
coercive power - Answers -involves the use of fear, suppression, punishment, or some
type of restraint
utilitarian power - Answers -involves financial or material control or based on a
decision's utility or usefulness
, symbolic power - Answers -relies on the use of symbols that connote social
acceptance, prestige, or some other attribute
dynamism - Answers -the theory that phenomena of matter or mind are due to the
action of forces rather than to motion or matter.
legitimacy - Answers -the perception or belief that a stakeholder's actions are proper,
desirable, or appropriate within a given context
urgency - Answers -the time sensitivity and the importance of the claim to the
stakeholder
principle - Answers -people who own the firm (shareholders)
agent - Answers -people who make strategic decisions on behalf of those who own the
firm (top level managers)
self-interested - Answers -seek to advance their own interests over those of others
risk-averse - Answers -disinclined or reluctant to take risks
managerial opportunism - Answers -the seeking of self-interest with guile or deceit
corporate governance - Answers -the system of rules, practices and processes by
which a company is directed and controlled
business ethics - Answers -the principles and standards that guide the behavior of
individuals and groups in the world of business
abusive supervision - Answers -the subordinates' perceptions of the extent to which
their supervisors engage in the sustained display of hostile verbal and nonverbal
behaviors excluding physical contact
workplace deviance - Answers -voluntary behaviour that violates significant
organisational norms, and in doing so, threatens the wellbeing of the organisation,
and/or its members.
FCPA or Foreign Corrupt Practices Act - Answers -illegal to make payments to foreign
government officials to assist in obtaining or retaining business
Sexual Harassment - Answers -any repeated, unwanted behavior of a sexual nature
perpetrated upon one individual by another; it may be verbal, visual, written, or physical
and can occur between people of different genders or those of the same gender
Quid pro quo - Answers -a favor or advantage granted or expected in return for
something
