BUS5 187 Chp 5 Quiz

External stakeholders

are individuals or group who own the business

What is the term for a company's formal statement of the ethical priorities it expects all of its employees to follow?

code of ethics

Identify the incorrect statement about environmental regulations.

environmental regulations are often lacking in developing nations

International business executives find that making payments to corrupt government officials never results in economic advantages.

false

Ethical dilemmas exist because many real-world decisions involve

first-, second-, and third-order consequences that are hard to quantify

The __________ outlawed the paying of bribes to foreign government officials to gain business.

foreign corrupt practices act

Grant works at a fast-food restaurant. One day he noticed a coworker giving free food to a friend. In not knowing how to handle the situation, Grant will most likely follow the example of

his supervisor

Davey works at a computer servicing center. His supervisor tells him to invoice the client for additional computer parts even though they will not be installed, stating "the customer will never know." Davey refuses to do so. His response is an example of

just distribution

_____________ enables managers to walk away from a decision that is profitable but unethical

moral courage

_____________ means standing in the shoes of a stakeholder and asking how a proposed decision might impact that stakeholder.

moral imagination

As it relates to sustainability, what principle suggests that when assessing an action, if the state of scientific knowledge were uncertain, the action should not be pursued or be postponed until more knowledge becomes available?

precautionary principle

The core idea behind ______ is that an organization's actions will not exert a negative impact on the ability of future generations to meet their own economic needs and that its actions impart long-run economic and social benefits on stakeholders.

sustainability

Why might managers working abroad in multinational firms behave in a manner that is unethical?

They incorporate ethical issues into strategic and operational decision making.

The __________ occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation.

tragedy of the commons

A firm's values and norms shape its culture which, in turn, has an important influence on the ethics of the firm's business decision making.

true

An individual with a strong sense of personal ethics is less likely to behave in an unethical manner in a business setting.

true

Building an organizational culture that places a high value on ethical behavior requires incentive and reward systems.

true

Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.

true

Fostering ethical behavior in a company is easily achieved by simply providing a company-specific code of ethics.

true

Many ethical issues in international business are rooted in the fact that political systems, the law, economic development, and culture vary significantly from nation to nation.

true

Social responsibility refers to the idea that businesspeople should favor decisions that have both good economic and social consequences.

true