Stakeholder Rights & Responsibilities Flashcards
7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Stakeholder Rights & Responsibilities flashcards as text
A company knowingly contracts with a supplier that uses child labor. Which stakeholder accountability principle applies?
Answer: Extended supply chain responsibility for upstream ethical violations
Ethical supply chain responsibility extends upstream — companies are accountable for foreseeable harms caused by suppliers they knowingly engage.
A bank's fiduciary duty to depositors requires it to:
Answer: Safeguard deposits and act in depositors' best financial interests
Fiduciary duty to depositors means the bank must prioritize their financial security and interests, not merely maximize institutional profits.
In a stakeholder conflict between profitability and worker safety, the CEA ethical framework favors:
Answer: A balanced approach that treats safety as a non-negotiable baseline
Worker safety is a baseline ethical obligation — not a factor to be traded off against profitability — while profitability is pursued within that constraint.
Which stakeholder has a right to receive accurate, non-misleading financial disclosures from a publicly traded company?
Answer: All investors and potential investors
Securities law and ethical principles require that all investors — institutional and retail — receive accurate and non-misleading financial disclosures.
The 'social license to operate' concept means a company must:
Answer: Earn and maintain ongoing acceptance from affected communities
A social license to operate is an ongoing, informal grant of acceptance from communities affected by corporate activities, requiring continuous engagement.
A manager discovers that marketing materials contain misleading claims that could harm customers. Her responsibility under stakeholder ethics is to:
Answer: Report and correct the misleading materials promptly
Managers have an affirmative duty to prevent foreseeable stakeholder harm, which requires proactive correction of misleading information.
When companies adopt a multi-stakeholder governance model, boards typically become accountable to:
Answer: A broader set including employees, customers, communities, and shareholders
Multi-stakeholder governance models expand board accountability beyond shareholders to include all groups materially affected by the enterprise.