International business chapter 5

______ are situations where none of the available alternatives seems morally acceptable

ethical dilemmas

An amendment to the Foreign Corrupt Practices Act allowed for the use of ______ in which a business is ensured that it will receive the standard treatment it ought to receive from a foreign government.

facilitating payments

The Foreign Corrupt Practices Act was amended to include _____ because some U.S. businesses complained the act would put U.S. firms at a competitive disadvantage

facilitating payments

The Foreign Corrupt Practices Act was amended to include _____ because some U.S. businesses complained the act would put U.S. firms at a competitive disadvantage.

facilitating payments

Generon Inc. has moved its production to a new nation. It freely dumps its harmful waste in the rivers and causes environmental degradation there. In this case, Generon has contributed to the

global tragedy of the commons

Rights that are taken for granted in developed nations, such as freedom of association and freedom of speech are

not universally accepted

When making ethical decisions, ______ factors are stressed in Japan, while ______ factors are more important in the United States.

organizational; individual or personal

The _________ theories recognize that there are things we CANNOT do against individuals because they have certain moral, fundamental rights.

rights

Texas Star Oil won the bid to build an oil facility for a host country government. However, the execution of the contract has been delayed due to bureaucratic procedures in the less-developed nation. In order to legally overcome this problem, Texas Star Oil could resort to the payment of

speed money

The Sullivan principles resulted from Leon Sullivan's response to

Apartheid laws

What management position serves as the organization's internal control point for improprieties?

Ethics Officer

True or False: The Organization for Economic Cooperation and Development adopted conventions in 1999 that obligated member states to reject the use of facilitating payments.

False The OECD adopted conventions in 1999 that made the bribery of public officials a criminal offense but excluded facilitating payments that were used to expedite routine government actions.

Which congressional act outlaws the payment of bribes to foreign government officials to gain businesses?

Foreign Corrupt Practices Act

What is a drawback of the utilitarian approach to business ethics?

It omits the consideration of justice.

Which two theories provide the moral compass that is important when thinking through the ethical implications of decisions in a systematic way?

Rights theories Rawl's theory of justice

What are six determinants of ethical behavior?

Societal culture decision-making process leadership unrealistic performance goals organizational culture personal ethics

Which ethical theory emphasizes that the best actions are those that benefit the most number of people and harm the least number of people?

Utilitarianism

Which company is contributing to the global tragedy of the commons?

Virtual-Day Inc. moved production to a South American country with lower environmental regulations and sends pollutants freely into the air.

According to the OECD convention of 1999, the bribery of a foreign official is considered

a criminal offense

A payment which ensures that a business receives the standard treatment that it ought to receive from a foreign government is known as

a grease payment

A person who follows the idea of _____ says that the multinational's home-country standards of ethics are the appropriate approach to follow in foreign countries.

a righteous moralist

Some ethics experts have proposed practical guides or ethical ______ to make ethical decisions in a systematic way.

algorithms

Annika is the manager of an auto parts manufacturing facility in a developing country. This facility does not meet the acceptable standards of the manufacturing facility based in her home nation. She knows that demanding a better facility will raise the cost of the auto parts that are mainly exported to other less-developed countries. However, she also realizes that by not demanding a better facility, the employees who work there are prone to serious health issues. This scenario represents

an ethical dilemma

The __________, developed by Rawls, indicates that inequalities are justified if they benefit the position of the least-advantaged members of society.

difference principle

______ ethics hold that people are conscious moral beings that have dignity and should be treated with respect.

Kantian

The belief that ethics are culturally determined and a firm should adopt the ethics of the country it is doing business in is

cultural relativism.

Ethical issues arise in international business when

environmental regulations in host nations are less stringent than those in the home country.

A(n)_______ distribution is one that is considered fair and equitable.

just

Which two of Hofstede's dimensions are present in countries where ethical practices are commonly practiced?

High in individualism High in uncertainty avoidance

Marietta is visiting her company's manufacturing subcontractor in Pakistan. She notices children working on the machinery with no air conditioning and little access to water. But she also knows these children are probably supporting their families. Marietta can't decide if children working in the factory is appropriate or inappropriate. This is an example of a(n) ______.

ethical dilemma

According to the Friedman Doctrine, what is the only social responsibility a company has as long as it stays within the rules of law?

increasing profits

The ______ theories concentrate on the attainment of a fair and equitable distribution of economic goods and services.

justice

The Hewlett-Packard example discussed in this chapter suggests that one cause of unethical behavior in a company can stem from _____.

leadership

According to Hofstede's theory, cultures high in masculinity and power distance are _____ (more or less?) likely to engage in unethical behavior.

more

The generally accepted principles and values that govern interactions between individuals are called

personal ethics

Which approach to business ethics includes cultural relativism, the righteous moralist, and the naive immoralist?

straw men

In the 1980s, Western businesses questioned the ethics of operating in South Africa because the apartheid system in place there

violated basic human rights

______ argued that it was ethically justified for General Motors to operate in South Africa so long as conditions of promoting the abolition of apartheid laws were fulfilled.

Leon Sullivan

The straw men approach to ethics is comprised of which four approaches?

Cultural relativism Friedman doctrine Righteous moralist Naive immoralist

Which description of leader behavior is most likely to promote a strong ethical culture in an organization?

The boss who consistently demonstrates strong personal ethics in all dealings with clients.

As demonstrated by the Nike example in the text, which situation is generally MOST preferred when considering employment practices in international business?

Requiring good conditions in home and foreign operations even when this results in a smaller profit margin