BUS 321 Ch. 5
This has been ratified by 34 countries and is an attempt to eliminate bribery in international business transactions.
Anti-Bribery Convention of the Organized for Economic Cooperation and Development
Fruit juice suppliers in South America rely heavily on ________.
child labor
According to the model developed by Rob van Tulder and Alex van der Zwart, which of the following best exhibits the cultural values of a nation's citizens?
civil society
According to the model developed by van Tulder and van der Zwart there are three main actors in the policy formulation process. Which is not a main actor?
commercial society
Firms such as Procter & Gamble that use recycled materials whenever possible are most likely demonstrating their ________.
commitment to environmental protection
Gift exchanges in a business situation in Japan are best described as ________.
common
According to the model developed by Rob van Tulder and Alex van der Zwart, Anglo-Saxon countries view the state, the market, and civil society as ________.
competitive
Which of the following is not one of the main groups of stakeholders that firms usually focus on?
competitors
Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n) ________.
conflict of interest
Jack always likes to place orders with Sam's Supply Company because the company sends him a gift certificate for $100 each holiday season. Which ethical issue is this an example of?
conflict of interest
Which term refers to a decision that benefits an individual to the possible detriment of the organization?
conflict of interest
According to the model developed by Rob van Tulder and Alex van der Zwart, firms that adhere to the Asian Way are more likely to ________.
cooperate closely with government
According to the model developed by Rob van Tulder and Alex van der Zwart, what is the key to the Continental European Approach?
cooperation between labor, business and government
A firm that wants to review the effectiveness of its social responsibility efforts should most likely conduct a(n) ________.
corporate social audit
When an organization does everything it must do from a legal standpoint but nothing more, it has adopted the ________ to social responsibility.
defensive stance
Sally uses her telephone at work to call her sister long distance. Which of the following best describes Sally's ethical issue?
dishonesty
Which of the following best explains why international factory owners would most likely want regular ILO inspections?
encourage investments from MNE's
When behavior conforms to generally accepted norms, it is referred to as ________ behavior
ethical
The extent to which members of an organization follow basic ethical standards of behavior is ________.
ethical compliance
Which term refers to an individual's personal beliefs about whether a decision, behavior, or action is right or wrong?
ethics
BP's program to prepare managers at headquarters for assignments in Russia is an example of ________.
ethics training
A company taking a proactive approach to social responsibility will most likely ________.
exhibit sincere and significant efforts to contribute to society
Browning Enterprises is planning to conduct a corporate social audit. Which of the following would LEAST likely occur during the audit?
gathering social goal data from shareholders
Jason completes company work at home on the weekends. He justifies taking office supplies home because of the company work he completes at home. Which ethical issue does this scenario relate to?
honesty
Which of the following best explains why looting was uncommon in Japan after the country's 2011 earthquake and tsunami?
importance of group membership
Ethical beliefs are primarily ________ in nature.
individual
Sonya and Amber work together in the Hong Kong corporate office. Despite having similar backgrounds and education, they cannot agree on whether it is appropriate to offer bribes to Chinese officials for the purpose of expediting business transactions. Which ethical generalization does this most likely illustrate?
individuals have their personal belief system
Which of the following is LEAST susceptible to ethical variations in international business?
insurance benefits
The extent to which an organization conforms to regional, national, and international laws is known as ________.
legal compliance
Which regulation attempts to eliminate bribes in international business transactions?
the Anti-Bribery Convention of the OECD
Ethics is an organizational concept, not an individual one.
False
Firms conduct corporate social audits to assess the ethical values and behaviors of employees
False
Firms that view themselves as citizens in a society and are proactive about finding ways to contribute to it are taking an accommodative stance towards social responsibility.
False
Kenya is one of the countries that has cleaned-up the rampant bribery of its' public officials.
False
Like individuals, organizations have ethics.
False
Low-context cultures are more likely to exchange gifts in a business context.
False
Many U.S. firms move production and low-skill jobs to developing countries to reap the benefits of low labor costs, favorable public relations, and clear-cut business practices.
False
Philanthropic giving is an example of an informal tool to manage social responsibility.
False
Research indicates that as much as 50% of the world's diamonds are smuggled "conflict diamonds."
False
Studies indicate that despite the widespread nature of bribery in China, the corrupt behavior has no noticeable impact on the country's GDP.
False
The Anglo-Saxon approach focuses on cooperation between the state, the market, and civil society.
False
The Foreign Corrupt Practices Act has been ratified by 34 countries in 2001.
False
There are no longer concerns about human rights violations in Vietnam.
False
To date, the ILO has focused most of its efforts on improving labor conditions in China.
False
Under the Anti-Bribery Convention of the Organization for Economic Cooperation and Development, those convicted of paying bribes do not face jail time, only fines.
False
Under the Foreign Corrupt Practices Act, American firms are permitted to pay bribes only in those countries where bribery is considered a normal part of business.
False
Values are defined as an individual's personal beliefs about whether a decision, behavior, or action is right or wrong.
False
This law passed in 1977 to prohibit firms from bribing foreign government officials in order to influence actions or policies that would help them retain or gain business.
Foreign Corrupt Practices Act
This law prohibits US companies from bribing foreign government officials for company gains.
Foreign Corrupt Practices Act
Which regulation prohibits the offering of bribes to any foreign government official in order to influence official actions or policies of that official or to gain or retain business?
Foreign Corrupt Practices Act
This combination of cultural orientations is most prevalent in countries where gift-giving is seen as acceptable.
High context, collectivist, power respecting
Which three phrases are used to characterize ethical behaviors in cross-cultural and international contexts?
How an organization treats its employees, how employees treat the organization, how employees and the organization treat other economy agents
Mick has been padding his expense account on business trips. However, it seems fair to him because the company refuses to provide him with comp time despite long hours he works on these business trips. Which ethical generalization does this most likely illustrate?
Individuals can rationalize behavior in various circumstances
McDonald's Ronald McDonald House program is an example of a(n) ________ to social responsibility.
proactive stance
If you thought Nike's Asian plant was using child labor, what organization would you contact to check out the working conditions?
International Labor Organization
What organization is the major watchdog for monitoring working conditions in factories in developing countries?
International Labor Organization
The Body Shop seeks out opportunities to improve the welfare of individuals all over the world. It has adopted the ________ to social responsibility.
proactive stance
Which of the following is the most responsible approach to social responsibility?
proactive stance
Which of the following most likely improves the effectiveness of a code of ethics for an MNE?
support from organizational practices
What approach of corporate social responsibility views the state, market and civil society as separate, competitive, and antagonistic entities?
Anglo-Saxon Approach
Which of the following was not mentioned as a formal organizational dimension that is used to implement a firm's social responsibility?
Accommodation
In practice, which of the following contexts was not mentioned as an area most susceptible to ethical variation in MNCs?
Advertising
Which regulation seeks to protect individuals from human rights abuses and holds MNCs accountable for such abuses?
Alien Tort Claims Act
Unocal was accused of violating which law for using forced labor supplied by the Burmese military?
Alien tort claims act
In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery acceptable.
Austria
Which three behaviors were examined in the section on the ethics in cross-cultural and international contexts?
Behavior of the employees towards the organization, the organization towards its employees, the employees and the organization towards other economy agents
Bribery in this country are so rampant that it costs the country as much as 13% to 16% of its' GDP.
China
Which of the following are the written statements of the values and ethical standards that guide a firm's actions?
Code of ethics
Those who supported the passage of anti-corruption legislation envisioned which two primary means of finding law-breakers?
Competitors and Government investigations
Three employees of Martin Enterprises have flown to China to meet a potential business partner. The three employees cannot agree about giving a gift to the potential partner. James, an American manager, believes that gift-giving is an ethical violation. Eun Hee, a South Korean manager, and Evan Lee, a Japanese manager, assert that gift-giving would be appropriate. This situation most likely illustrates which of the following statements?
Cultural similarities lead to common ethical beliefs
These 4 were the stances to social responsibility that was mentioned in the chapter.
Defensive, accomodative, proactive, obstructionists
Which of the following was not mentioned as a type of interaction between the organization and the economic agents that may be subject to ethical ambiguity?
Employee treatment
This term is used to describe an individual's personal beliefs about whether a decision, behavior, or action is right or wrong.
Ethics
A corporate social audit is a formal analysis of the firm by a task force of highly regarded outsiders to the company.
False
Accepting gifts in a business relationship is unethical behavior in any country
False
According to the text, the obstructionist stance to managing social responsibility occurs when an organization will do everything that is required of it legally, but nothing more.
False
As with many under-developed countries, child labor is legal in Mexico.
False
Bribery is common in China and Russia but is considered unacceptable in Kenya and South Korea
False
What is the purpose of the Foreign Corrupt Practices Act (FCPA)?
It prohibits the offering of bribes to any foreign government official
What is the purpose of the Alien Tort Claims Act?
It protects individuals from human rights abuses
This is an informal dimension of social responsibility?
Leadership
These are the 3 formal organizational dimensions a company might use to implement its plan for social responsibility.
Legal Compliance, Ethical Compliance, Philanthropic giving
According to the text, which of the following is NOT an ethical generalization?
National values have little influence on an individual's personal ethics
In which country is corruption such a problem at all levels of government that, despite being rich in oil, 70% of its population earns less than $1 a day?
Nigeria
When Nestle violated international law by controlling the baby formula markets, it could be accused of taking which type of social responsibility stance?
Obstructionist
Which of the following was not mentioned as an approach to social responsibility?
Offensive stance
What is the "oil curse"?
Oil discovery causes a poor country to have increases in poverty and social problems
Which of the following statements is most likely true about firms with formal codes of ethics?
Organizational practices and a strong ethical corporate culture are essential
This term is used to describe the people and organizations that are directly affected by the practices of a company's performance.
Organizational stakeholders
McDonald's Ronald McDonald House is an example of which form of managing social responsibility?
Proactive Stance
This is a set of obligations an organization undertakes to protect and enhance the society in which it functions.
Social responsibility
This term describes the set of obligations an organization undertakes to protect and enhance the society in which it functions.
Social responsibility
Domestic firms from which country find bribery to be relatively acceptable?
South Korea
If you intend to do business in this country, you might have to pay a few bribes to succeed.
South Korea
In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery unacceptable.
South Korea
Which of the following was not mentioned as one of the three main stakeholders of companies?
Suppliers
A company with an defensive stance to social responsibility will do everything that is required of it legally but nothing more.
True
According to the Alien Tort Claims Act, U.S. MNCs could be held responsible for human rights abuses by foreign governments if the company benefitted from those abuses.
True
An employee's distinction between ethical versus unethical behavior is determined by that employees' value system.
True
An individual's personal beliefs regarding whether a decision, behavior, or action is right or wrong is known as ethics.
True
Circumstances have a significant influence on an individual's behavior
True
Codes of ethics are one of the most common methods of addressing appropriate ethical behavior within organizations.
True
Companies can manage social responsibility using formal and informal tools.
True
Ethical behavior typically conforms to accepted social norms.
True
Ethical behavior usually refers to behavior that conforms to generally accepted social norms.
True
Gift giving is most common in high-context, collectivistic, and power-respecting cultures.
True
In some countries small bribes are considered a normal part of doing business.
True
Large German firms typically negotiate with labor organizations under the oversight of the German government.
True
Merck Pharmaceuticals has exhibited philanthropy by providing free medication to individuals in developing countries for the treatment of river blindness.
True
Proctor & Gamble's use of recycled materials is an example of its' national environment social responsibility?
True
Social responsibility is the set of obligations an organization undertakes to protect and enhance the society in which it functions.
True
The Anglo-Saxon approach to corporate social responsibility views the state, the market, and civil society as separate, competitive, and antagonistic.
True
The U.S. government played an active role in opening foreign markets to U.S. tobacco firms.
True
The primary purpose of the Kimberley Process is to eliminate the smuggling and corruption associated with the South African diamond industry.
True
The primary reason for the existence of a business is to create value
True
Under U.S. law, bribes to foreign officials are legal if they are made in order to get a bureaucrat to do something the bureaucrat should have done anyway.
True
Values influence how individuals define ethical versus unethical behavior
True
What constitutes ethical behavior varies from person to person.
True
Whistle-blowing is generally considered unwelcome by most Japanese firms.
True
Whistle-blowing refers to disclosing illegal or unethical conduct on the part of individuals within an organization.
True
________ are the things a person feels to be important
Values
Firms that view themselves as citizens of society have adopted the ________ to social responsibility.
proactive stance
Logix Manufacturing is a U.S. firm with a factory in Mexico City. Local leaders in Mexico City ask Logix managers to make contributions to a youth sports organization. Logix provides the league with new equipment and uniforms. Which stance towards social responsibility does Logix most likely have?
accommodative
Which of the following is not an informal dimension of social responsibility?
acts of philanthropic giving
Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following training topics would most likely prepare expatriate managers for handling ethics issues in China and Bangladesh?
local business practices
The type of gift exchanged by business people in Japan is primarily determined by all of the following factors EXCEPT the ________.
location of the business in the community
Gift exchanges are likely to be considered a conflict of interest in a(n) ________ culture.
low-content
Companies that are socially responsible to their investors do all of the following except ________.
manipulate stock prices
The primary purpose of the International Labor Organization (ILO)is to ________.
monitor working conditions of factories in developing countries
When an organization does as little as possible to address social or environmental issues, it has adopted the ________ to social responsibility.
obstructionist stance
Which of the following is the LEAST responsible approach to social responsibility?
obstructionist stance
The term ________ refers to those people and organizations that are directly affected by the practices and performance of an organization.
organizational stakeholder
In Japan, ________ gifts represent a token of gratitude for favors and loyalty shown throughout the year.
oseibo
Alcoa's gift of $112,000 to a small town in Brazil to build a sewage treatment plant is an example of ________.
philanthropic giving
Which of the following actions LEAST likely shows a firm's social responsibility toward its customers?
providing warranties
Which of the following is not a common method for encouraging ethical behavior among employees?
public admonishment
In an international setting, which of the following behaviors is LEAST likely to be subject to ethical ambiguity?
recruiting
What was the first action taken by Siemens after the firm was fined for numerous ethics violations?
replaced top executives
An MNE with a factory in Cambodia is being inspected by the International Labor Organization. What is the most likely focus of the inspection?
safe working conditions
Individuals convicted under the Anti-Bribery Convention of the Organization for Economic Cooperation and Development will most likely be required to ________.
serve time in jail
Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following questions is most relevant to the current discussion about the firm's code of ethics?
should the code of ethics be globally consistent or tailored to local contexts?
The term ________ refers to the set of obligations an organization undertakes to protect and enhance the society in which it functions.
social responsibility
Which of the following is LEAST influential on an individual's ethics?
social trends
R.J. Reynolds' decision to follow laws regarding the marketing of its products in the United States but market its tobacco aggressively in countries without such regulations is an example of which approach to social responsibility?
the defensive stance
A company that is socially responsible will most likely ________.
undertake efforts to protect the society in which it functions
Behavior that fails to conform to generally accepted social norms is considered ________.
unethical
Examples of promoting the general welfare of society include all of the following except ________.
using appropriate accounting procedures
Justin is aware that his supervisor used corporate funds to pay for a personal vacation and reports the offense. This is called ________.
whistle-blowing
Which term refers to the disclosure by an employee of illegal or unethical conduct on the part of others within the organization?
whistle-blowing
According to the text, the primary ethics concerns surrounding BP related to ________.
worker safety
HR at APEX Designs, an international architectural firm, have noticed the following behaviors among employees lately. Which of the following would NOT be considered a problematic ethical situation at APEX?
working excessive overtime