International Business - chapter 5

According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making?

Build an organizational culture that values ethical behavior. Implement decision-making processes that consider ethical aspects of business decisions. Favor hiring and promoting of people with a sense of

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

Customers Suppliers

Which two theories provide the moral compass that is important when thinking through the ethical implications of decisions in a systematic way?

Rawl's theory of justice rights theories

What are four of the determinants of ethical behavior

Societal culture Personal ethics Organizational culture Leadership

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.

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.

______ ethics measure actions on a cost-benefit scale.

Utilitarian

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

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

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

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

apartheid system.

Many companies develop a formal statement of primary values and ethical standards for employees and managers to follow. This is called a

code of ethics

International businesses frequently have to address ethical issues that develop because...

countries have different business laws, practices, and regulations

International businesses frequently have to address ethical issues that develop because

countries have different business laws, practices, and regulations.

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.

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

ethical

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

ethical dilemmas

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 dilemmas

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

ethical dilemmas

To ensure that the business has appropriate legal compliance programs and acts in an ethical manner, some firms now have created a position for a(n)______ officer.

ethics

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

ethics officer

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

false

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

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

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

Individuals or groups who work for or own the business are referred to as

internal

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

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

What characteristic helps managers walk away from a decision that is profitable, but not ethical?

moral courage

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

personal ethics

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

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

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

the FCPA.

According to Milton Friedman, what is the social responsibility of a business?

to increase profits

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

true

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