Chapter 3.3 Study Guide Questions

Abiding by a foreign country's cultural norms during an international business transaction means a company has met a minimum standard for acting ethically.

False

Under the IDDR ("I Desire to Do Right") approach of ethical decision making, decision makers should go through the following steps in order: First Step: Second Step: Third Step: Fourth Step:

First Step: Inquiry Second Step: Discussion Third Step: Decision Fourth Step: Review

If a U.S. company decided to outsource production of alcohol to Saudi Arabia, a country which prohibits the consumption of alcohol for moral reasons, it would likely be:

Illegal and Unethical

Since the late 1970s, the ____1.____ has prohibited U.S. businesses from bribing foreign officials.

1. Foreign Corrupt Practices Act (FCPA)

____1.____ has been shown to be the most influential in setting an ethical tone for a business.

1. Management's Behavior

The inquiry analysis step of the IDDR Approach to ethical analysis of business decisions involves identifying the ____1.____ and collecting the relevant ___2.___.

1. Parties 2.Facts

A U.S. Corporation decides to outsource its product manufacturing to Country Z, where the minimum wage for workers is below the minimum wage requirements in the United States. If the company pays the workers based on the minimum wage required in Country Z, this is: ____1.___ ____2.____.

1.Legal 2. And possibly ethical or unethical

Why is it important to monitor the employment practices of foreign suppliers?

Because corporate watch groups will discover and publicize unethical behavior by suppliers, link it to the American company, and harm its reputation.

Which of the following represent a potential ethical issue for a U.S. company doing business in a foreign country?

The country does not mandate a minimum livable wage for its workers The country does not regulate child labor. The country does not permit women to sign contracts without a male co-signatory. The country permits payments made to government officials to secure government contract approval.

The FCPA does not prohibit payments to low-level employees of foreign nations who exercise little (or no) discretion in their jobs, but merely process paperwork.

True