BUS330 CH5

Global warming is said to be the result of which greenhouse gas?

Carbon dioxide

Which statement BEST explains how a manager's personal ethics might be challenged in international transactions?

Expatriate managers may face more pressure to violate their personal ethics.

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

Foreign Corrupt Practices Act

The justice theory attributed to Blank______ emphasizes the socially just distribution of goods in society.

John Rawls

What theories concentrate on the fair distribution of economic goods and services in a society?

Justice

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

Leon Sullivan

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

Rawl's theory of justice Rights theories

What is an accurate description of developed nations in terms of the environment?

They have more substantial environmental regulations.

True or false: The decision-making process is one of the determinants of ethical behavior.

True

______ ethics measure actions on a cost-benefit scale.

Utilitarian

According to the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the bribery of a foreign public official is considered a(n) Blank______.

criminal offense

Organizational Blank______ is the name given to the values and norms that are shared among employees of an organization.

culture

Under Rawls' Blank______ principle, the long-run expectations of the least-advantaged social group need to be maximized.

difference

Ethical issues arise in international business when

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

When the Morrison Manufacturing company was fined by the US government for the amount of carbon dioxide it released into the air, it decided to move its business to Thailand where it knew there were fewer restrictions on air emissions. Environmentalists would most likely question the Blank______ implications of this decision.

ethical

A system of moral principles that govern the conduct of an individual is known as

ethics.

In order to expedite routine government actions, what was specifically excluded from the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions?

facilitating payments

Companies that decide to relocate their production activities to a nation where there are fewer environmental regulations which allows the company to dump production waste into rivers are contributing to the Blank______.

global tragedy of the commons

Which of Hofstede's dimensions are likely to be found in nations where corruption is rampant?

high power distance

The managers of ABC Manufacturing are struggling to meet their increased quota. They decide to eliminate two quality control steps in the manufacturing process in order to meet the demand. This is unethical behavior that was a result of

unrealistic performance goals.

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

violated basic human rights.

The __ believes that if a multinational firm does not follow the ethical norms of the host country, then other multinational firms don't have to follow them.

naive immoralist

Trevor told his foreign-born roommate that it was socially acceptable in the United States to question a professor if you believed he or she was saying something that was not true. This example of a social rule that governs behavior demonstrates the idea of a

norm.

The basic principles and values that govern interactions between individuals are known as

personal ethics.

As demonstrated by the Nike example in the text, which working conditions situation is generally MOST preferred?

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

The Blank______ believes it is always the appropriate strategy to adopt home-country ethical standards.

righteous moralist

How do facilitating payments benefit a company?

smooths the progress of services to which the business is entitled

True or false: Businesspeople may behave unethically simply because they forget to ask themselves whether the decision or action they are making is ethical.

True

The Universal Declaration of Human rights was adopted by the Blank______ and is a global expression of what many believe are the rights to which all human beings are inherently entitled.

United Nations

Many companies develop a formal statement of primary values and ethical standards for employees and managers to follow. This is called a

code of ethics.

International businesses frequently have to address ethical issues that develop because

countries have different business laws, practices, and regulations.

Because Blank______ violations were so prevalent in Myanmar in the 1990s, many Western companies could no longer condone doing business there.

human rights

Individuals or groups who work for or own the business are referred to as Blank______ stakeholders.

internal

The main criticism of the righteous moralist approach is that

its supporters go too far. The home-country standards are not always applicable.

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

just

Maria's boss asked her to do whatever it takes to secure a contract. Maria knows that paying a bribe would ensure that the contract would be signed, but doesn't do this because she knows that while paying the bribe would ensure large profits, doing so would be unethical. Maria is demonstrating Blank______.

moral courage

Today, Freedom House ranks Myanmar as __.

not free

The idea that business people should favor decisions that have both good economic and social consequences is called corporate

social responsibility.

Which maxim accurately summarizes the concept of cultural relativism?

when in Rome, do as the Romans do

What are two problems with the utilitarian approach to business ethics?

Accurately measuring the costs and benefits of a given situation Doesn't consider justice

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

Ethical dilemmas

True or False: The study in the text confirms that corruption had a small but positive impact on a country's economic growth rate.

False

True or false: Organizational culture refers to the system used to create job levels and hierarchies within a company.

False

The theory that states that businesses should not incur social expenditures unless required by law or required for the efficient operations of a business is the Blank______.

Friedman Doctrine

According to the Sullivan principles, what two conditions were GM required to fulfill in order to continue to operate in South Africa?

GM could not obey the apartheid laws in its own South African operations. GM should do everything possible to promote the abolition of apartheid laws.

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

Straw Men

Which two groups are most likely to be considered the external stakeholders of a firm? (Check all that apply.)

Suppliers Customers

In an organization where personal ethics are important, which individual should be hired?

The individual who has a disappointing interview despite having verified glowing letters of recommendation that attest to his integrity.

What was taking place in South Africa when the apartheid system was dominant?

There was mandated segregation between whites and blacks/nonwhites.

True or false: According to the rights theories, human beings have fundamental rights and privileges that transcend national boundaries. True false question.

True

True or false: Companies can use psychological tests in the hiring process to help identify people who have a strong sense of personal ethics.

True

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

algorithms

The Universal Declaration of Human Rights has been ratified by Blank______.

almost every country

In some countries, bribes are considered appropriate in business. In other countries, bribes are against the law. This is an example of Blank______.

an ethical dilemma

According to Rawls's theory of justice, all economic goods and services should be distributed equally except when Blank______.

an unequal distribution would provide everyone with an advantage

Which step in the decision-making process is often overlooked by companies?

audit the decision

Roboton Inc. moved its production facilities to a new nation where it freely dumps its harmful waste in the rivers and causes environmental degradation. In this case, Roboton has contributed to the

global tragedy of the commons.

After US companies objected that the Foreign Corrupt Practices Act would put them at a competitive disadvantage, the FCPA was eventually amended to allow for Blank______.

grease payments

Bennie is managing a call center in Italy. He is finding it difficult to motivate employees to meet their call volume using the standard tactics employed in the United States. Finally, Bennie is told that if he starts offering "daily cash bonuses" to employees, they will meet their targets. He is torn between doing what he believes is right and meeting his numbers. Bennie is facing a challenge to Blank______.

his personal ethics

Giving people that which they are due is an example of a(n) __ distribution. Multiple choice question.

just

Rights such as freedom of association and freedom of speech are

not universally accepted.

Certain theories accept that there are rights, both positive and negative, that all humans have simply because they are human. These are known as Blank______ theories.

rights

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

speed money.

The introduction of democratic elections in the Blank______ led to the eventual demise of the apartheid system in South Africa.

1990s

The straw men approach to ethics is comprised of four approaches. What are those four approaches? Multiple select question.

Cultural relativism Righteous moralist Friedman doctrine Naive immoralist

True or false: Pursuing strategies that are sustainable has little impact on helping an organization ensure that ethical issues are considered in business decisions.

False

The effects of corruption on a company's economic growth have resulted in many multinationals to adopt

a zero-tolerance policy.

Our personal ethics tell us it is wrong to cheat on a test. Conversely, it is right to

accept responsibly for your actions.

A policy of racial segregation and political and economic discrimination against blacks/nonwhites in South Africa was known as the

apartheid system.

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.

Under Rawls' Blank______ principle, the long-run expectations of the least-advantaged social group need to be maximized. Multiple choice question.

difference

Scandinavia scores high on the individualism and uncertainty avoidance measures of societal culture. According to Hofstede's dimensions of societal culture, Scandinavia is more likely to engage in Blank______ business behavior than countries which score high on masculinity and power distance measures. Multiple choice question.

ethical

Sharon is visiting her company's manufacturing subcontractor in Pakistan. She is disturbed when she notices children working on the machinery in a room with no air conditioning and little access to water, but she also knows these children are probably supporting their families. This is an example of a(n) Blank______.

ethical dilemma

Carla questioned the ethics of her company in hiring an Indonesian firm to manufacture its clothing products. She knew that women who worked in these sewing factories were forced to work long hours in substandard conditions and she knew she wouldn't like to work that way. Carla is demonstrating the use of Blank______.

moral imagination

In a business setting, noblesse oblige refers to Blank______ behavior considered to be the responsibility of successful enterprises.

benevolent

Marion, a manager at a multinational investment firm located in Italy, knows that the company isn't reporting accurate profits to the government. She explains that this action is fine because all the multinational investment firms behave in the same manner. Marion's behavior reflects the ideas of a Blank______. Multiple choice question.

naive immoralist

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

Ethics Officer

According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making?

Favor hiring and promoting of people with a sense of personal ethics. Implement decision-making processes that consider ethical aspects of business decisions. Build an organizational culture that values ethical behavior.

Which well-known advocate for human rights was elected president of South Africa following the apartheid movement in South Africa?

Nelson Mandela

James is a manager from Tennessee working at a tech support center in India. He is a firm believer in the minimum wage and treating employees fairly. Yet he sees his assistant manager firing one employee and hiring his neighbor at a lower rate. James confronts his assistant manager, claiming this behavior isn't consistent with home-country standards. Which philosophical approach to ethics does James represent?

Righteous moralist

The righteous moralist says that a multinational's Blank______ country standards of ethics are the appropriate approach to follow in foreign countries. Multiple choice question.

home

According to Rawls's view of justice, when people operate under a veil of ignorance, they would unanimously agree on two fundamental principles of justice. What are these two principles?

Once basic liberty is ensured, inequality in basic social goods is to be allowed only if such inequalities benefit everyone. Each person is permitted the maximum amount of basic liberties compatible with a similar liberty for others.

Jeff is a manager at a toy manufacturing facility. Which of these situations demonstrate how Jeff uses his moral imagination?

Jeff decided not to outsource parts to a company in Asia because he knew the company used small children as laborers.

The accepted standards or ways of doing things in a particular setting are known as .

norm

What is the focus of the justice theories?

a fair distribution of economic goods and services

According to Milton Friedman, what is the social responsibility of a business?

to increase profits

Maria has decided to send a letter to her state representative regarding the ten industrial plants in her community that release toxic emissions into the air which could create health problems in the future for families living in the area. What phenomenon is Maria concerned with?

tragedy of the commons

Jennifer doesn't understand why the management team decided to continue supporting the supplier in India when it was obvious that a better product at a better price was available from a supplier in Indonesia. According to the text, what is the best starting point to understand this decision?

understand the process the management team uses to make decisions

TimeTurner Corp. is a company based in the United States that manufactures luxury wrist watches. By western standards, if the company uses sweatshop labor to make these watches it is most likely to be considered

unethical.

Heidi told her husband that there was no possible way she could meet her monthly sales goal now that her manager had doubled it. She decided the only way to make the new goal was to add 5% to every sales order and hide this cost under "personal needs" when she submitted her report. What is causing Heidi to act in this unethical manner?

unrealistic performance goals

Garrett Hardin described how herders shared common land for grazing. It was advantageous to the poor to place more and more livestock on the common land because it would mean more income. Why did these actions result in ultimate tragedy?

The commons were overgrazed and eventually destroyed by the livestock.

What is the correct definition of business ethics?

The principles that govern the proper conduct and moral decisions that arise in a business environment.

What are four of the determinants of ethical behavior?

Leadership Organizational culture Societal culture Personal ethics

What human characteristic did Immanuel Kant use as the basis of his ethical theory?

dignity

Garrett's company believes minimizing air emissions is the right thing to do, and it will not contract with a supplier who thinks otherwise. This idea about what the company believes to be right is an example of a

value.

The Blank______ of a company reflect what the company believes to be good, right, and desirable.

values

______ ethics holds that one should always respect others and act in accordance with rules that could apply to everyone. Multiple choice question.

Kantian

The police have located a suspect in a dirty bomb threat to a major city. They plan to do whatever is necessary to locate the bomb -- including torture. Which approach to ethics are the police using in this situation?

Utilitarianism

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