Sustainable Goals & Stakeholder Analysis | MCQ
1. What is the first step in Stakeholder Analysis?
a) Make recommendations for addressing concerns
b) Identify potential risks
c) Make a comprehensive list of all stakeholders
d) Assign power levels to stakeholders
Answer: c) Make a comprehensive list of all stakeholders
2. Why is it important to consider stakeholders’ influence?
a) To ignore their opinions
b) To plot them on a Support-Influence map
c) To increase opposition
d) To minimize business efforts
Answer: b) To plot them on a Support-Influence map
3. Which stakeholders are primarily concerned about environmental impact?
a) Investors
b) Employees
c) Environment activists
d) Customers
Answer: c) Environment activists
4. What does the Stakeholder Map represent?
a) The location of stakeholders
b) The hierarchy within an organization
c) The relationships and influence of stakeholders
d) The stock market trends
Answer: c) The relationships and influence of stakeholders
5. Which of the following is NOT a stakeholder interest?
a) Salary and job security for employees
b) Competitive pricing for suppliers
c) Electoral returns for investors
d) Higher returns for investors
Answer: c) Electoral returns for investors
6. What is the key action agenda for high-power stakeholders?
a) Monitor closely
b) Engage and empower
c) Satisfy and manage closely
d) Ignore their demands
Answer: c) Satisfy and manage closely
7. Which of the following strategies can help transform opposition into support?
a) Ignoring stakeholder concerns
b) Strategizing to transform attitudes
c) Increasing competition
d) Reducing product quality
Answer: b) Strategizing to transform attitudes
8. What was the primary goal of Hardik Shah in 2010?
a) Increasing industrial production
b) Reducing industrial pollution in Gujarat
c) Expanding government control over industries
d) Raising tax revenue from factories
Answer: b) Reducing industrial pollution in Gujarat
9. What was the key challenge in the Gujarat pollution audit program?
a) Industries refused to participate
b) Reports were not clearly drafted
c) Lack of government support
d) Farmers did not file complaints
Answer: b) Reports were not clearly drafted
10. How did Gujarat High Court attempt to control pollution in 1996?
a) Introduced third-party audits
b) Ordered factory shutdowns
c) Imposed fines on industries
d) Encouraged self-regulation
Answer: a) Introduced third-party audits
11. What is the SMART approach for setting a goal?
a) Specific, Measurable, Attainable, Relevant, Time-Based
b) Simple, Motivating, Active, Realistic, Transparent
c) Social, Market-oriented, Action-driven, Reliable, Tested
d) Strong, Maintainable, Accurate, Rigorous, Targeted
Answer: a) Specific, Measurable, Attainable, Relevant, Time-Based
12. Which of the following is NOT a method to get stakeholders on board?
a) Persuasion
b) Incentive
c) Force
d) Isolation
Answer: d) Isolation
13. What is an example of a strict action taken by the Supreme Court in 2016?
a) Banning sale of liquor within 500m of highways
b) Enforcing a national lockdown
c) Imposing additional taxes on industries
d) Encouraging organic farming
Answer: a) Banning sale of liquor within 500m of highways
14. What approach did a Kerala bar take to bypass the liquor ban?
a) Changed its business type
b) Constructed a maze to circumvent the rule
c) Moved its location
d) Shut down operations
Answer: b) Constructed a maze to circumvent the rule
15. Which of the following is NOT an instrument used by Hardik Shah?
a) Persuasion (Saam)
b) Incentives (Daam)
c) Creating division (Bhed)
d) Forceful shutdown of industries
Answer: d) Forceful shutdown of industries
16. What is an example of the ‘Persuasion’ approach in stakeholder management?
a) Offering monetary benefits
b) Creating divisions among competitors
c) Communicating future benefits
d) Forcing compliance through legal action
Answer: c) Communicating future benefits
17. What does "Bhed" mean in stakeholder management?
a) Collaboration with stakeholders
b) Creating division among opposers
c) Offering incentives to stakeholders
d) Negotiating better deals
Answer: b) Creating division among opposers
18. How does stakeholder power affect decision-making?
a) Higher power stakeholders must be managed closely
b) Lower power stakeholders should always be ignored
c) All stakeholders have equal influence
d) Power is not an important factor
Answer: a) Higher power stakeholders must be managed closely
19. What is a common method to transform an indifferent stakeholder into a supporter?
a) Ignore their concerns
b) Engage and empower them
c) Reduce their influence
d) Avoid communication
Answer: b) Engage and empower them
20. Which factor is NOT considered when setting a SMART goal?
a) Specificity
b) Attainability
c) Randomness
d) Time-based tracking
Answer: c) Randomness
21. What is the primary interest of investors in a business?
a) Job security
b) Higher returns
c) Low environmental impact
d) Competitive pricing
Answer: b) Higher returns
22. What is the main concern of government stakeholders?
a) Business follows regulations and serves public good
b) Maximizing company profits
c) Reducing wages of employees
d) Increasing monopoly in the market
Answer: a) Business follows regulations and serves public good
23. What do customers primarily look for in a business?
a) High product price
b) Monopoly market
c) Quality product at an affordable price
d) Business expansion
Answer: c) Quality product at an affordable price
24. Why do suppliers care about their relationship with a business?
a) To ensure competitive pricing and assured payment
b) To monitor government policies
c) To promote environmental causes
d) To increase employee job security
Answer: a) To ensure competitive pricing and assured payment
25. How can local communities benefit from businesses?
a) By competing with businesses
b) By securing a share in the company’s success
c) By reducing their influence
d) By taking strict legal action against companies
Answer: b) By securing a share in the company’s success
26. What should businesses do for low-power stakeholders?
a) Manage closely
b) Engage, empower, and monitor
c) Ignore their concerns
d) Prevent them from influencing decisions
Answer: b) Engage, empower, and monitor
27. Which of the following is NOT a recommended stakeholder engagement strategy?
a) Force compliance
b) Persuasion
c) Incentives
d) Creating division
Answer: a) Force compliance
28. What is a key strategy to transform opposition into support?
a) Ignore their concerns
b) Strategize to engage and address their issues
c) Reduce their influence in decision-making
d) Avoid their participation
Answer: b) Strategize to engage and address their issues
29. What is the best way to deal with high-power stakeholders?
a) Manage them closely and satisfy their interests
b) Ignore them
c) Avoid engaging with them
d) Treat them the same as low-power stakeholders
Answer: a) Manage them closely and satisfy their interests
30. Which of the following is a benefit of stakeholder mapping?
a) Helps businesses prioritize key stakeholders
b) Reduces the number of stakeholders
c) Encourages businesses to ignore weak opponents
d) Increases organizational bureaucracy
Answer: a) Helps businesses prioritize key stakeholders
31. What challenge did Hardik Shah face in Gujarat's pollution control efforts?
a) Industries did not follow audit recommendations
b) The High Court rejected environmental regulations
c) The government refused to support pollution control
d) Farmers supported pollution-causing industries
Answer: a) Industries did not follow audit recommendations
32. How was the pollution audit program improved?
a) By introducing clearer audit reports
b) By removing third-party audits
c) By legalizing industrial pollution
d) By reducing environmental standards
Answer: a) By introducing clearer audit reports
33. Why was third-party auditing introduced in Gujarat?
a) To ensure transparency and accountability in pollution control
b) To promote industrial expansion
c) To remove government oversight
d) To reduce competition among industries
Answer: a) To ensure transparency and accountability in pollution control
34. How did Hardik Shah persuade industries to comply with pollution control measures?
a) Through persuasion, incentives, and negotiation
b) By forcing compliance through legal action
c) By shutting down industries
d) By reducing environmental standards
Answer: a) Through persuasion, incentives, and negotiation
35. What is the meaning of "Saam" in stakeholder management?
a) Persuasion
b) Incentive
c) Creating division
d) Forceful compliance
Answer: a) Persuasion
36. What is an example of "Daam" (Incentive)?
a) Offering financial rewards for compliance
b) Ignoring stakeholder concerns
c) Increasing regulatory burdens
d) Removing legal protection
Answer: a) Offering financial rewards for compliance
37. What is the role of "Bhed" in stakeholder management?
a) Creating division among opponents
b) Engaging stakeholders in decision-making
c) Increasing stakeholder influence
d) Strengthening competitor relationships
Answer: a) Creating division among opponents
38. How can incentives be used to gain stakeholder support?
a) By sharing credit and offering benefits for cooperation
b) By restricting stakeholder involvement
c) By reducing stakeholder influence
d) By enforcing strict rules
Answer: a) By sharing credit and offering benefits for cooperation
39. What was the impact of the Supreme Court’s 2016 liquor ban near highways?
a) Some businesses found loopholes to bypass the ban
b) All liquor shops shut down
c) The alcohol industry flourished
d) The ban had no effect on businesses
Answer: a) Some businesses found loopholes to bypass the ban
40. Why did some bars in Kerala construct a maze?
a) To bypass the 500m highway liquor ban
b) To increase customer engagement
c) To promote responsible drinking
d) To avoid paying taxes
Answer: a) To bypass the 500m highway liquor ban
41. What is the ultimate goal of stakeholder management?
a) To balance stakeholder interests for long-term success
b) To maximize profits without considering stakeholders
c) To minimize stakeholder influence
d) To ignore stakeholder concerns
Answer: a) To balance stakeholder interests for long-term success
42. What is the best approach to dealing with weak opponents?
a) Address their concerns and engage them
b) Ignore their demands
c) Reduce their influence
d) Avoid discussions
Answer: a) Address their concerns and engage them
43. How does stakeholder analysis benefit decision-making?
a) Helps businesses prioritize stakeholders and manage conflicts
b) Reduces the need for stakeholder engagement
c) Promotes conflict among stakeholders
d) Increases organizational complexity
Answer: a) Helps businesses prioritize stakeholders and manage conflicts
44. Which of the following is NOT a component of a Stakeholder Map?
a) Employees
b) Government
c) Environment activists
d) Product pricing strategy
Answer: d) Product pricing strategy
45. What is the purpose of a Stakeholder Map?
a) To understand the influence and support level of different stakeholders
b) To reduce stakeholder engagement
c) To prioritize only government stakeholders
d) To create unnecessary complexity in decision-making
Answer: a) To understand the influence and support level of different stakeholders
46. What is an example of a high-power, high-interest stakeholder?
a) A customer who occasionally buys a product
b) A government regulatory body enforcing industry laws
c) A distant supplier with minimal business interaction
d) A new startup competitor with no market share
Answer: b) A government regulatory body enforcing industry laws
47. How can businesses transform "indifferent stakeholders" into supporters?
a) By increasing engagement and communication
b) By ignoring their needs
c) By reducing their influence in decision-making
d) By avoiding direct interaction
Answer: a) By increasing engagement and communication
48. In a Support-Influence Map, what does a “weak opponent” refer to?
a) A stakeholder who opposes the business but has little power
b) A stakeholder with high influence and strong opposition
c) A neutral stakeholder with no particular interest
d) A stakeholder who fully supports the business
Answer: a) A stakeholder who opposes the business but has little power
49. Why is power an important variable in stakeholder management?
a) It determines how much influence a stakeholder has on decision-making
b) It helps businesses eliminate weak stakeholders
c) It allows businesses to ignore lower-power stakeholders
d) It reduces the need for stakeholder engagement
Answer: a) It determines how much influence a stakeholder has on decision-making
50. What should a business do for low-power stakeholders?
a) Engage, empower, and monitor them
b) Ignore their concerns
c) Eliminate their influence
d) Convert them into competitors
Answer: a) Engage, empower, and monitor them
51. What is the correct approach for handling high-power stakeholders?
a) Satisfy and manage them closely
b) Completely ignore their interests
c) Ensure they have no influence
d) Treat them the same as low-power stakeholders
Answer: a) Satisfy and manage them closely
52. Which of the following stakeholders would require close management due to high power?
a) Government regulators
b) A new supplier with minimal influence
c) A single dissatisfied customer
d) A competitor with no significant market share
Answer: a) Government regulators
53. How should businesses handle stakeholders with low power and low interest?
a) Monitor them without close engagement
b) Prioritize their demands over high-power stakeholders
c) Give them financial incentives
d) Ignore them completely
Answer: a) Monitor them without close engagement
54. Why should companies consider sustainability in stakeholder management?
a) To ensure long-term success and balance economic, social, and environmental factors
b) To increase short-term profits by ignoring regulations
c) To limit innovation in business strategies
d) To avoid competition
Answer: a) To ensure long-term success and balance economic, social, and environmental factors
55. What is the biggest challenge when implementing sustainable stakeholder management?
a) Balancing competing interests of multiple stakeholders
b) Completely eliminating stakeholder involvement
c) Avoiding environmental concerns
d) Ensuring only investors' demands are met
Answer: a) Balancing competing interests of multiple stakeholders
56. Why is stakeholder engagement crucial for sustainable development?
a) It aligns business goals with social and environmental responsibilities
b) It helps businesses avoid all regulations
c) It ensures only shareholders benefit
d) It limits government involvement
Answer: a) It aligns business goals with social and environmental responsibilities
57. What was the major issue with Gujarat’s pollution audit reports before 2010?
a) Reports were unclear, leading to poor action from industries
b) The Gujarat government banned third-party audits
c) Industries refused to participate in audits
d) Farmers opposed the audit program
Answer: a) Reports were unclear, leading to poor action from industries
58. How did Hardik Shah improve the audit program?
a) By making audit reports more transparent and actionable
b) By shutting down all non-compliant industries
c) By removing environmental regulations
d) By reducing penalties for polluting industries
Answer: a) By making audit reports more transparent and actionable
59. Which of the following methods did Hardik Shah NOT use?
a) Offering financial incentives to industries for compliance
b) Using persuasion techniques to gain support
c) Creating division among opposing stakeholders
d) Enforcing strict legal action against industries
Answer: d) Enforcing strict legal action against industries
60. What was the primary focus of the third-party audit program in Gujarat?
a) To ensure industries complied with pollution regulations
b) To promote industrial expansion
c) To increase government control over businesses
d) To reduce market competition
Answer: a) To ensure industries complied with pollution regulations
61. Which of the following is NOT a way to get stakeholders on board?
a) Persuasion
b) Nudge
c) Incentive
d) Exclusion
Answer: d) Exclusion
62. What is the purpose of the "Nudge" technique in stakeholder engagement?
a) Encouraging stakeholders to take desired actions subtly
b) Forcing compliance through strict legal actions
c) Ignoring stakeholders' interests
d) Increasing regulatory burdens
Answer: a) Encouraging stakeholders to take desired actions subtly
63. How do incentives help in stakeholder engagement?
a) By offering rewards that encourage collaboration
b) By reducing business transparency
c) By forcing compliance through penalties
d) By increasing stakeholder opposition
Answer: a) By offering rewards that encourage collaboration
64. What is an example of a negative reinforcement strategy in stakeholder management?
a) Imposing fines on industries that fail to comply with regulations
b) Providing financial rewards for sustainability efforts
c) Engaging stakeholders through collaborative decision-making
d) Encouraging voluntary environmental audits
Answer: a) Imposing fines on industries that fail to comply with regulations
65. What is the primary reason businesses engage in ethical stakeholder management?
a) To build trust and maintain long-term sustainability
b) To maximize short-term profits at any cost
c) To reduce the number of stakeholders involved
d) To minimize customer engagement
Answer: a) To build trust and maintain long-term sustainability
66. How can businesses ensure ethical stakeholder engagement?
a) By maintaining transparency, fairness, and accountability
b) By prioritizing only investor interests
c) By limiting environmental regulations
d) By avoiding customer feedback
Answer: a) By maintaining transparency, fairness, and accountability
