Exam-4-bus

________ represents the base of the pyramid of ethical behavior.

Complying with laws and regulations

In 2014, ________ was the largest single source of counterfeit products imported into the U.S., which accounted for 63 percent of Homeland Security seizures, followed by Hong Kong, an administrative region of China, amounting to 25 percent of seizures.

China

The ________ is a policy platform and practical framework for companies committed to sustainability and responsible business practices. It is the world's largest voluntary corporate citizenship initiative, representing thousands of businesses in more than 135 countries.

United Nations Global Compact

Which of the following is TRUE with regard to the rights approach?

It is based on the belief that, regardless of how you deal with an ethical dilemma, human dignity must be preserved.

In terms of CSR and sustainability, going wide implies ________.

a continuous effort to understand how CSR and sustainability affect every aspect of the firm's operations worldwide

Which of the following can extend legal protection to Hudson's proprietary software used in its toys?

a copyright

Firms with a strong social interest ________.

aim to optimize work conditions and diversity in hiring

Sustainable firms ________.

avoid emitting toxic wastes

In the five-step framework for making ethical decisions, implementing a course of action implies ________.

creating new rules, processes, or procedures, and putting these into effect

In countries with minimal corruption ________.

financial and accounting information is transparent

In order to be effective, a corporate code of ethics should be designed to function like a ________.

moral compass

Which of the following behaviors of a firm can be called unethical?

tolerating sweatshop conditions

Which of the following approaches to ethical standards for corporate governance reflects the view that the best ethical action is the one that provides the most good or the least harm?

utilitarian approach

In the five-step framework for making ethical decisions, which of the following approaches to evaluating actions is being used by a manager who questions whether a proposed action embodies character strengths he/she values?

virtue approach

Which of the following countries has the LEAST corruption?

Denmark

In countries with questionable ethical norms, it is usually ill-advised to maintain ethical standards superior to what is required by local laws and values.

FALSE

In helping identify ethical problems, the firm's code of conduct should be tailored to match the norms of each individual region from which the firm operates.

FALSE

Intellectual property rights law enacted in one country are enforceable worldwide.

FALSE

Scholars examining ethics from the perspective of relativism hold that ethical truths are absolute.

FALSE

Standards of ethical behavior are uniform worldwide.

FALSE

The five approaches to analyzing ethical problems rarely conflict with each other.

FALSE

The utilitarian approach is based on the belief that, regardless of how one deals with an ethical dilemma, human dignity must be preserved.

FALSE

Which of the following grants protections to the creators of art, music, books, software, movies, and TV shows?

copyright

Sustainable practices lead to ________.

cost savings from more efficient production

The process of reproducing assets without compensating those who originally created them is known as ________.

counterfeiting

Upholding the right to join labor unions is an example of CSR values.

TRUE

Corporate social responsibility represents the base of the pyramid of ethical behavior.

FALSE

Creating alternatives is the last step of the framework for arriving at ethical decisions.

FALSE

Improper ethical behavior is unlikely to result when bad means are justified by good ends.

FALSE

When it comes to ensuring ethical behavior, experienced managers follow a systematic process.

TRUE

Widespread corruption hinders economic development.

TRUE

Firms with strong environmental interests are most likely to ________.

minimize pollutants in manufacturing

According to the framework for arriving at ethical decisions, a course of action must be identified as soon as the ethical problem is detected.

FALSE

________ refers to offering, giving, receiving, or soliciting anything of value to influence the actions of a government official or a corporate manager.

Bribery

Which of the following is TRUE with regard to bribery?

Bribery promotes a culture of dishonesty and immorality

________ refers to the system of procedures and processes by which corporations are managed, directed, and controlled.

Corporate governance

________ represents the apex of the pyramid of ethical behavior.

Corporate social responsibility

Which of the following is TRUE with regard to corruption?

Corruption harms the poorest in societies.

Freedom Shoes (Scenario) Freedom Shoes Inc., a sports shoe company, is considering entering into a contract with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be the most attractive in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions. Which of the following, if TRUE, implies that Freedom has a strong social interest?

Despite the overseas vendor's effectiveness, Freedom decides not to enter into a contract with it because according to Freedom, tolerating sweatshop conditions is unethical.

An international human rights organization recommends that its member countries review their human rights policies on a periodic basis to ensure that their governments are upholding ethical standards for the treatment of prisoners. Which of the following represents the most effective reasoning in support of the organization's recommendation?

Ethical standards change over time, so national policies should be updated as necessary.

________ are moral principles and values that govern the behavior of people, firms, and governments, regarding right and wrong.

Ethics

A corporate culture that advocates profit over sustainability and human welfare cannot lead to employee abuse.

FALSE

Advances in communications technologies makes it difficult to deceive consumers in foreign countries.

FALSE

Freedom Shoes (Scenario) Freedom Shoes Inc., a sports shoe company, is considering entering into a contract with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be the most attractive in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions. Sean, a senior manager in Freedom, adheres to the relativist view regarding ethical standards. He goes by the rule, "When in Rome, do as the Romans do." Sean is most likely to agree strongly with which of the following views?

Freedom should passively accept the practices that prevail in countries where it does business.

________ is the procurement of products or services from suppliers located abroad.

Global sourcing

Which of the following is TRUE of a code of ethics?

It guides decision making by all employees in the firm.

________ refers to ideas or works created by individuals or firms and includes a variety of proprietary, intangible assets: discoveries and inventions; artistic, musical, and literary works; and words, phrases, symbols, and designs.

Intellectual property

The five approaches to analyzing ethical dilemmas often lead to similar solutions.

TRUE

The most advanced companies monitor suppliers to ensure that they use sustainable practices.

TRUE

________ confer the exclusive right to manufacture, use, and sell products or processes.

Patents

________ means meeting humanity's needs without harming the ability of future generations to meet their needs.

Sustainability

Acknowledging the presence of an ethical problem is the first step of the framework for arriving at ethical decisions.

TRUE

Corporate codes of conduct emphasize standards related to ethics and social responsibilities

TRUE

Corporate social responsibility represents the apex of the pyramid of ethical behavior.

TRUE

Ethical behavior is essential for business success

TRUE

Ethics and appropriate behavior transcend all international business activities and figure prominently in management decisions about financial performance and competitive advantage.

TRUE

Evaluation of results is the last step of the framework for arriving at ethical decisions.

TRUE

Experienced managers scan operations in each country and potential partners for the possibility of ethical abuses. Such scanning is an ongoing process because company operations and environments evolve continuously.

TRUE

Failure to adopt CSR behaviors can have high detrimental effects on a company.

TRUE

Grease payments intended to expedite transactions are both accepted and legal in many countries

TRUE

Piracy is equivalent to counterfeiting.

TRUE

Relying on one's instincts is often the best way to identify an ethical problem

TRUE

The Global Reporting Initiative (www.globalreporting.org) pioneered the development of the most widely used sustainability reporting framework.

TRUE

When making decisions regarding ethical business actions, managers should ________.

balance their obligation to shareholders with explicit contributions to the broader public good

Which of the following approaches to ethical standards for corporate governance reflects the view that the best action emphasizes the welfare of the entire community or nation?

common good approach

In terms of CSR and sustainability, going ________ means institutionalizing appropriate behavior into the organization's culture so it becomes part and parcel of strategy.

deep

In a world ever sensitive to social and environmental issues, more and more firms are embracing CSR and sustainability. Such firms are more likely than not to ________.

develop closer relations with foreign stakeholders to better understand their needs and work jointly toward solutions

Which of the following would most likely be considered an appropriate action for a multinational company in meeting its global corporate social responsibility obligations?

devoting substantial R&D to poor-country ailments

Which of the following refers to a typical CSR value?

engaging in philanthropy

According to relativists ________.

ethical truths differ from group to group

When using the five-step framework for making ethical decisions, which of the following steps involves investigating which individuals have a stake in the outcome?

examining the facts

Which of the following approaches to ethical standards for corporate governance reflects the view that the best action treats everyone equally and in a just manner?

fairness approach

Sid Maxwell (Scenario) Sid Maxwell is the head of legal affairs at Hudson Inc., an American toy manufacturer. Hudson's signature toy, the Witty Parakeet, includes an embedded software program that allows the bird to interact with children. Hudson is currently planning to expand its market in Asia but Sid is concerned about reports of software piracy in the region. The software program embedded in Hudson's signature toy, the Witty Parakeet, is an example of a(n) ________.

intellectual property

Trademarks, copyrights, and patents are examples of ________.

intellectual property rights

When applying the five-step framework for making ethical decisions, managers should, at first, ________.

recognize the ethical problem

Which of the following acts makes it illegal for U.S. firms to offer bribes to foreign parties in order to secure or retain business?

the U.S. Foreign Corrupt Practices Act

Corruption is defined as ________.

the abuse of power to achieve illegitimate personal gain

According to the virtue approach ________.

the best action emphasizes moral excellence and righteousness that provide for the full development of our humanity

Economic interests refer to a firm's economic impact on ________.

the localities where it does business

Hudson uses a distinctive sign to enable its customers to easily identify its products. This distinctive sign that the company also uses to distinguish its offerings from that of its competitors is known as a ________.

trademark

The Nike "swoosh" is an example of a ________.

trademark

An individual who believes in ethical normativism is most likely to view ethical behavioral standards as ________.

universal