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 corporation's board decides to close a factory, displacing 500 workers, without prior consultation. Which stakeholder right is most directly violated?
Answer: Right to be informed and consulted on significant decisions
Employees have a right to be informed and consulted on major decisions that materially affect their livelihoods.
Environmental groups argue they have stakeholder status even though they have no financial relationship with a company. This claim is based on:
Answer: Moral stakeholder theory, recognizing interests beyond economic relationships
Moral stakeholder theory expands the stakeholder concept to include groups affected by corporate actions even without a direct economic relationship.
Which stakeholder responsibility do investors bear toward the companies in which they invest?
Answer: Active stewardship, including engagement on ESG and governance matters
Responsible investment principles require investors to actively engage with companies on governance, environmental, and social issues — not just monitor returns.
A pharmaceutical company prices a life-saving drug so high that low-income patients cannot afford it. Which stakeholder ethical principle is at issue?
Answer: Non-maleficence and equitable access
Non-maleficence and the obligation of equitable access are violated when pricing systematically excludes vulnerable populations from essential medicine.
Corporate transparency reports that disclose environmental and social performance data are primarily intended to serve which stakeholder function?
Answer: Enable informed stakeholder decision-making and accountability
Transparency reporting supports stakeholder rights by providing the information needed for accountability and informed engagement.
Which scenario best illustrates a company fulfilling its responsibility to future generations as stakeholders?
Answer: Investing in renewable energy to reduce long-term environmental impact
Investing in sustainable practices directly addresses the interests of future generations who will inherit the environmental consequences of today's decisions.
When a non-governmental organization (NGO) campaigns against a company's labor practices, which stakeholder mechanism is it exercising?
Answer: Voice and reputational pressure as a secondary stakeholder
NGOs exercise influence as secondary stakeholders through advocacy, public pressure, and reputational mechanisms rather than formal legal rights.