Stakeholder Management Flashcards

A board of directors primarily represents which stakeholder group's interests under U.S. corporate governance?

Answer: Shareholders

Directors owe fiduciary duties of care and loyalty primarily to the corporation and its shareholders.

A retailer cut supplier prices sharply, boosting margins, but later faced supply shortages. Which conclusion is best supported?

Answer: Short-term gains from pressuring one stakeholder can create longer-term costs

Squeezing suppliers improved short-term margins but weakened the relationship, causing operational problems later.

A company discloses carbon emissions data voluntarily to investors. This primarily addresses which stakeholder concern?

Answer: Transparency regarding ESG risks

Voluntary emissions disclosure helps investors assess environmental, social, and governance risk exposure.

In stakeholder negotiations, what does BATNA stand for?

Answer: Best Alternative To a Negotiated Agreement

BATNA is the best option a party has if negotiations fail, which sets their walk-away point.

Which practice most effectively builds long-term trust with community stakeholders near a new facility?

Answer: Engaging the community early and consistently, including before decisions are final

Early, two-way engagement gives communities a real voice and reduces opposition later.

Which tool visually maps stakeholders along axes of influence and impact to prioritize engagement?

Answer: Influence/impact grid

An influence/impact grid classifies stakeholders by their ability to affect the project and the project's effect on them.

Which situation most likely signals that stakeholder expectations were not properly managed?

Answer: A sponsor rejects a deliverable that met all written specifications

Rejection despite meeting specifications suggests unstated expectations were never surfaced or aligned.