IBUS Chapter 5 Quiz

Miller Corporation intends to build a new factory in a foreign country. However, the company is having a hard time getting the government to approve the necessary paperwork so construction can begin. To move the process along, Miller Corporation makes legal payments to the government officials. These payments are typically referred to as

"facilitating payments" aka speed money or grease payments.

The Foreign Corrupt Practices Act was amended in order to

allow for "facilitating payments."

An American executive of a multinational electronics company finds that one of the company's production units in Thailand employs children to work in its factories. However, most of the children employed at the factory are orphans who will be sold as forced labor or pushed into prostitution if they lose their jobs. The executive finds that all the available alternatives to remedy this situation seem ethically unacceptable. In this example, the American executive faces

an ethical dilemma.

According to Rawls's just distribution theory, all economic goods and services should be distributed equally except when

an unequal distribution would work to everyone's advantage.

What term refers to the accepted principles of right or wrong governing the conduct of businesspeople?

business ethics

General Motors' stand against apartheid in South Africa was based upon what came to be known as

the Sullivan principles.

A pesticide manufacturer has moved its production facility to a foreign country where it is free to dump pollutants into the local waterways. By doing so, this company is contributing to

the global tragedy of the commons.

The Luxury Motors Corporation moved its automobile production plant to a country in South America because it could freely dump waste products into the nearby ocean. By doing this, the corporation was contributing to the concept of

the tragedy of the commons.

As a philosophy for business ethics, utilitarianism focuses attention on the need to

weigh carefully all social benefits and costs of a business action.

Kantian ethics hold that the moral worth of actions or practices is determined by their consequences.

False

Rico is a naive immoralist, which means he believes a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

False

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions obliges member states to make payments to expedite routine government action a criminal offense.

False

Using Hofstede's dimensions of social culture, research has shown that companies headquartered in cultures where masculinity and power distance are important attributes were more likely to emphasize the importance of behaving ethically.

False

A company that has a formal statement of the ethical priorities that employees must follow has established a code of ethics.

True

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

True

Keesha was working in Uganda for a multinational firm, and she was told that she would need to bribe government officials if she wanted to get her raw materials on time. She was uncomfortable with this as she had always felt bribes were unethical. This kind of pressure sometimes happens with expatriates who work abroad.

True

The practice of "gift-giving" between the parties in a business negotiation is considered right and proper behavior in many Asian cultures. However, some Westerners view the practice as a form of bribery and therefore unethical—particularly if the gifts are substantial. This demonstrates that

facilitating payments should never be allowed.

As a philosophical approach to business ethics, the righteous moralist approach

is typically associated with managers from developed nations.

Vanessa wanted to move her company to a state with lower taxes, but was concerned about how that would impact the company's employees. Vanessa is demonstrating the concept of

moral imagination.

The term __________ refers to the values and norms that are shared among employees of an organization.

organizational culture