CS CS Stakeholder Management & Communication 2 — Questions and Answers
Question 1: In strategic communication, the 'SBAR' technique (Situation, Background, Assessment, Recommendation) is primarily used to:
- Structure performance reviews
- Deliver concise, structured briefings to decision makers (Correct answer)
- Create marketing content
- Format financial reports
Correct answer: Deliver concise, structured briefings to decision makers
SBAR provides a standardized communication framework that efficiently conveys critical information and a clear recommendation to busy executives or stakeholders.
Question 2: A strategy narrative differs from a strategic plan primarily because it:
- Is longer and more detailed
- Uses compelling storytelling to build emotional buy-in alongside logical rationale (Correct answer)
- Contains only financial data
- Is prepared by external consultants only
Correct answer: Uses compelling storytelling to build emotional buy-in alongside logical rationale
A strategy narrative uses story structure — challenge, journey, resolution — to connect stakeholders emotionally to the strategy, complementing the analytical rigor of formal plans.
Question 3: Environmental, Social, and Governance (ESG) reporting has become a strategic stakeholder communication tool because it:
- Replaces annual financial reporting
- Demonstrates accountability to investors, customers, and regulators on non-financial performance (Correct answer)
- Is required only for government contractors in the US
- Primarily addresses employee compensation transparency
Correct answer: Demonstrates accountability to investors, customers, and regulators on non-financial performance
ESG reporting signals responsible stewardship on sustainability, social impact, and governance to an increasingly broad set of stakeholders who factor ESG performance into decisions.
Question 4: Crisis communication in strategic management requires which immediate priority?
- Determining legal liability before any public statement
- Communicating transparently and quickly to prevent information vacuums (Correct answer)
- Preparing press releases for all possible scenarios in advance
- Delegating all communication to the legal department
Correct answer: Communicating transparently and quickly to prevent information vacuums
In a crisis, silence creates uncertainty and invites speculation; rapid, transparent communication helps organizations maintain stakeholder trust and control the narrative.
Question 5: A multi-stakeholder strategy review should include which type of input to be most effective?
- Only executive leadership perspectives
- Diverse perspectives including customers, employees, investors, and community representatives (Correct answer)
- External consultant recommendations exclusively
- Competitor benchmarking data only
Correct answer: Diverse perspectives including customers, employees, investors, and community representatives
Multi-stakeholder reviews surface blind spots and conflicting priorities that single-perspective reviews miss, resulting in more robust and broadly supported strategies.
Question 6: The concept of 'social license to operate' is most relevant to organizations in which context?
- Software startups seeking app store approval
- Industries with significant community or environmental impact, such as mining or energy (Correct answer)
- Firms launching loyalty reward programs
- Companies registering new trademarks
Correct answer: Industries with significant community or environmental impact, such as mining or energy
Social license to operate refers to the ongoing acceptance granted by local communities and broader society to a company whose activities affect them, especially in extractive or high-impact industries.
In strategic communication, the 'SBAR' technique (Situation, Background, Assessment, Recommendation) is primarily used to: