Chapter 5—Issues Management and Crisis Management York University ADMS 3660

Chapter 5—Issues Management and Crisis Management TRUE/FALSE 1. One of the factors that has helped make issues management and crisis management more important to business is instant global communication. ANS: T PTS: 1 REF: 192 NAT: AACSB Analytic | Environmental Influence 2. Issues management is a process by which a firm deals with its most important stakeholders' demands. ANS: F PTS: 1 REF: 192 NAT: AACSB Analytic | Group Dynamics 3. The narrow approach to issues management severely restricts the options available to respond to important issues. ANS: F PTS: 1 REF: 193-194 NAT: AACSB Analytic | Environmental Influence 4. In reality, the conventional and strategic management approaches to issues management have much in common. ANS: T PTS: 1 REF: 195-197 NAT: AACSB Analytic | Environmental Influence 5. The issues that companies are having to deal with are becoming widely divergent, making the process of issues management more difficult. ANS: F PTS: 1 REF: 197 NAT: AACSB Analytic | Environmental Influence 6. An issue is a matter that is in dispute between two or more parties. ANS: T PTS: 1 REF: 198 NAT: AACSB Analytic | Group Dynamics 7. The stages of the issues management process are easily separable; thus each can be assigned to a specialist with the public affairs office. ANS: F PTS: 1 REF: 199 NAT: AACSB Analytic | Environmental Influence 8. Issues selling is the process by which stakeholders convince managers to pay attention to the stakeholders' particular interests. ANS: F PTS: 1 REF: 202-203 NAT: AACSB Analytic | Environmental Influence 9. Top managers who adopt a more open mindset for the issues that their subordinates consider important are said to be "buying" those issues. ANS: T PTS: 1 REF: 202-203 NAT: AACSB Analytic | Group Dynamics 10. An efficient issues management process will analyze issues before ranking them. ANS: F PTS: 1 REF: 203-205 NAT: AACSB Analytic | Environmental Influence 11. The formulation stage of the issues management process involves designing the firm's response to the issues facing it. ANS: T PTS: 1 REF: 205-206 NAT: AACSB Analytic | Environmental Influence 12. Bellwether states in the issues development process refer to the transformation of issues from low levels of public awareness to full awareness. ANS: F PTS: 1 REF: 206-207 NAT: AACSB Analytic | Environmental Influence 13. Issues development is a very well-defined process that allows managers to understand clearly what stage of the life cycle a particular issue is in. ANS: F PTS: 1 REF: 206-207 NAT: AACSB Analytic | Environmental Influence 14. In most companies, issues management is done in isolation from other departments. ANS: F PTS: 1 REF: 208-209 NAT: AACSB Analytic | Environmental Influence 15. Issues management can be viewed as a type of pre-crisis planning. ANS: T PTS: 1 REF: 209-210 NAT: AACSB Analytic | Environmental Influence 16. The concept of crisis management is relatively new, arising out of the crises of the past two decades. ANS: T PTS: 1 REF: 210 NAT: AACSB Analytic | Environmental Influence 17. A crisis is a major, unpredictable event that has potentially negative consequences. ANS: T PTS: 1 REF: 212-213 NAT: AACSB Analytic | Environmental Influence 18. According to a survey of Fortune 500 companies, most believe crises are rare events that are unlikely to affect them. ANS: F PTS: 1 REF: 212-213 NAT: AACSB Analytic | Environmental Influence 19. The most effective form of communication during a crisis is one that reacts quickly to events. ANS: F PTS: 1 REF: 221-222 NAT: AACSB Communication | Environmental Influence 20. In a crisis, the first communication should be with internal stakeholders. ANS: T PTS: 1 REF: 224 NAT: AACSB Communication | Environmental Influence MULTIPLE CHOICE 1. The issues management process and crisis management process are both focused on a. improving stakeholder management. b. improving sustainability. c. improving financial performance. d. improving management development. ANS: A PTS: 1 REF: 192 NAT: AACSB Analytic | Environmental Influence 2. The ultimate objective of issues and crisis management is a. prevention of harm to the firm. b. avoidance of crises. c. to increase the organization's social responsiveness to stakeholders. d. understanding of stakeholders' interests. ANS: C PTS: 1 REF: 193 NAT: AACSB Analytic | Environmental Influence 3. Which of the following is not an element of the issues management process? a. issues identification b. prioritizing issues c. eliminating issues d. monitoring results of responses to issues ANS: C PTS: 1 REF: 193 NAT: AACSB Analytic | Environmental Influence 4. The conventional approach to issues management includes all of the following characteristics except a. issues originate in social, political, regulatory, or judicial environments. b. issues fall in the domain of public affairs management. c. an issue is any trend or event that might affect the company. d. issues are legitimate and urgent stakeholder concerns. ANS: D PTS: 1 REF: 193-194 NAT: AACSB Analytic | Environmental Influence 5. The strategic management approach to issues management takes a ____ view of the process. a. narrow b. broad c. futuristic d. historical ANS: B PTS: 1 REF: 195 NAT: AACSB Analytic | Strategy 6. Which of the following is not a characteristic of the strategic management approach to issues management? a. Issues management is the responsibility of senior management. b. Issues identification is more important than in more narrowly focused approaches. c. Issues management helps anticipate and manage internal and external challenges. d. Issues management is narrowly focused on public policy issues. ANS: D PTS: 1 REF: 195 NAT: AACSB Analytic | Strategy 7. The principal distinction between the conventional and strategic management approaches to issues management is a. how broadly the idea of issues in conceived to be. b. how broadly responsibility for issues management is spread. c. how broadly the firm defines who its stakeholders are. d. how many issues are being managed at one time. ANS: A PTS: 1 REF: 195 NAT: AACSB Analytic | Strategy 8. Which of the following is not a feature that distinguishes the conventional approach to issues management from the strategic management approach? a. how broadly issues are defined b. whether the function stands alone or is integrated with other functions c. who within the firm implements the system d. at what level of the firm issues identification takes place ANS: D PTS: 1 REF: 195-196 NAT: AACSB Analytic | Strategy 9. Which of the following issues has always been part of the business process? a. legislative b. ecological c. financial d. social welfare ANS: C PTS: 1 REF: 197 NAT: AACSB Analytic | Environmental Influence 10. The most dramatic growth in importance of issues has been in ____ issues. a. financial b. social, ethical, and political c. practical d. military ANS: B PTS: 1 REF: 197 NAT: AACSB Analytic | Environmental Influence 11. The approach to issues management in which each issue is viewed as separate from all others is the a. conventional approach. b. strategic management approach. c. portfolio approach. d. changing mix approach. ANS: C PTS: 1 REF: 197 NAT: AACSB Analytic | Environmental Influence 12. One of the benefits of the portfolio a