IB ch. 5

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

Ethical dilemmas

Which aspect of international business convinced Leon Sullivan to lead the way in eliminating apartheid in South Africa?

Ethics

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

Ethics Officer

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.

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

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

False (Organizational culture refers to the values and norms that are shared among employees.)

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 (The study showed that corruption had a significant negative impact on a country's economic growth rate.)

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

Foreign Corrupt Practices Act

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 ______.

Friedman Doctrine

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

Nelson Mandela

______ refers to the moral obligation to act in an honorable and benevolent manner.

Noblesse oblige

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 ______.

moral courage

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 ______.

moral imagination

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 ______.

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

norms

Today, Freedom House ranks Myanmar as __.

not free

Rights such as freedom of association and freedom of speech are

not universally accepted.

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

personal ethics.

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

When a company acts in its own self-interest and abuses a resource that isn't owned by anyone, such as a river, it is participating in the

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

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.

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

values

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

violated basic human rights.

Which maxim accurately summarizes the concept of cultural relativism?

when in Rome, do as the Romans do

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

1990s

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

difference

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

dignity

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

just

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

just

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

Which two groups are most likely to be considered the external stakeholders of a firm?

-Customers -Suppliers

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.

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.

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

-Righteous moralist -Cultural relativism -Friedman doctrine -Naive immoralist

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 four of the determinants of ethical behavior?

-Societal culture -Leadership -Organizational culture -Personal ethics

What are the next four steps a company should take in the decision-making process once it has identified its stakeholders? List the steps in the correct order, starting with step two at the top of the list.

1. Judge the ethics of the proposed decision 2. Establish moral intent 3. engage in ethical behavior 4. audit the decisions

When Byron Manufacturing decided to recycle component parts, it not only saved the company money, it also limited the amount of waste it sent to landfills. This decision reflects the idea of ______.

CSR (Corporate Social Responsibility)

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 justice theory attributed to ______ 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

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

Kantian

______ 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

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

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

Straw Men

"Everyone is doing it" is not sufficient to prove that an action is ethically justified and is a criticism against ______.

the naive immoralist

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

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

What is one thing a company must have in order to build an organizational culture that emphasizes ethical behavior?

The business must explicitly articulate values that emphasize ethical behavior.

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 is the correct definition of business ethics?

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

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

There was mandated segregation between whites and blacks/nonwhites.

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

They have more substantial environmental regulations.

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

True

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

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

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

True

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

United Nations

______ ethics measure actions on a cost-benefit scale.

Utilitarian

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

What is the focus of the justice theories?

a fair distribution of economic goods and services

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.

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

algorithms

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

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 ______.

an ethical dilemma

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

an unequal distribution would provide everyone with an advantage

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

apartheid system.

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

audit the decision

International businesses frequently have to address ethical issues that develop because

countries have different business laws, practices, and regulations.

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) ______.

criminal offense

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.

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

culture

Ethical issues arise in international business when

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

A business strategy that does not violate the accepted principles of right or wrong governing the conduct of businesspeople is called a(n) ___________ strategy.

ethical

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 ______ business behavior than countries which score high on masculinity and power distance measures

ethical

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 ______ implications of this decision.

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) ______.

ethical dilemma

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

facilitating payments

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 ______.

global tragedy of the commons

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 ______.

grease payments

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

high power distance

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 ______.

his personal ethics

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

home

Because ______ 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 ______ 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.

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

righteous moralist

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

What do scientists believe occurs as the result of the increasing amount of carbon dioxide in the atmosphere?

the carbon dioxide reflects heat back to the earth's surface and the earth's temperature increases