Week 2

Hofstede added a fifth dimension to his study on how culture relates to values in the workplace known as long-term versus short-term orientation, which was inspired by Confucianism.

Explanation Geert Hofstede added a fifth dimension inspired by Confucianism that he called long-term versus short-term orientation.

Armen's religion believes in the spiritual progression of each person's soul and that dharma is the moral force guiding behavior. Which religion does this describe? Hinduism

Explanation Hindus believe that a moral force in society requires the acceptance of certain responsibilities, called dharma. Hindus believe in reincarnation, or rebirth into a different body, after death. Hindus also believe in karma, the spiritual progression of each person's soul.

Which statement about Hinduism is true? Hinduism supported India's caste system.

Explanation Historically, Hinduism supported India's caste system. The concept of mobility between castes within an individual's lifetime makes no sense to traditional Hindus. Hindus see mobility between castes as something that is achieved through spiritual progression and reincarnation. An individual can be reborn into a higher caste in his or her next life if he or she achieves spiritual development in this life.

Suppose a Japanese company has branch offices in Spain where Spanish is spoken at work, and France where French is spoken at work. Which is true?: Cultural misunderstandings occur even when everyone is working toward the same goal.

Explanation In a multinational organization within which people speak multiple languages, cultural misunderstandings occur even when everyone is working toward the same goal.

What is a characteristic of mores? Certain mores have been enacted into law.

Explanation In many societies, certain mores have been enacted into law. Thus, all advanced societies have laws against theft, incest, and cannibalism.

In the modern world, corporations often hasten the global tragedy of the commons by moving production to locations where they are free to pump pollutants into the environment.

Explanation In the modern world, corporations can contribute to the global tragedy of the commons by moving production to locations where they are free to pump pollutants into the atmosphere or dump them in oceans or rivers, thereby harming these valuable global commons.

When her manager asked Talia if she would "lose" the invoice that came in with the extra shipment of parts because the supplier wouldn't know any difference, Talia replied "No." Her response is an example of moral courage

Explanation It is important to recognize that employees in an international business may need significant moral courage. Moral courage enables managers to walk away from a decision that is profitable, but unethical. Moral courage gives an employee the strength to say no to a superior who instructs her to pursue actions that are unethical. Moral courage gives employees the integrity to go public to the media and blow the whistle on persistent unethical behavior in a company.

Lisette works for Brookings Auto Group, which has set the same sales target for all employees in their 350 locations across the globe. The company fails to consider any environmental constraints which might hamper sales and to avoid being penalized, employees often falsify their sales reports. What is triggering the employees' unethical behavior? unrealistic performance goals

Explanation One of the causes of unethical behavior is pressure from the parent company to meet unrealistic performance goals that can be attained only by cutting corners or acting in an unethical manner.

One of the most important things an international businessperson can do to avoid cultural misunderstandings is to: listen to your client or customer.

Explanation One of the most important things an international businessperson can do to avoid cultural misunderstandings is to carefully listen to what the customer or client is saying.

A righteous moralist is most likely to claim that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

Explanation Righteous moralism is the belief that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

The __________ is a straw man approach to business ethics. Friedman doctrine

Explanation Straw men approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate guidelines for ethical decision making in a multinational enterprise. Four such approaches to business ethics are commonly discussed in the literature. These approaches can be characterized as the Friedman doctrine, cultural relativism, the righteous moralist, and the naive immoralist.

Trish is leading the team at SunBelt Sports in creating a formal statement of the ethical priorities the business will adhere to. What type of document is Trish and her team working on? code of ethics

Explanation A code of ethics is a formal statement of the ethical priorities a business adheres to. Often, the code of ethics draws heavily on documents such as the UN Universal Declaration of Human Rights, which itself is grounded in Kantian and rights-based theories of moral philosophy.

What is the new "sixth dimension" to be added to Hofstede's original dimensions? indulgence versus restraint

Explanation A strong movement is underway to add a sixth dimension to Hofstede's work. Geert Hofstede, working with Michael Minkov's analysis of the World Values Survey, added a promising new dimension called indulgence versus restraint.

An American businessperson in Russia who recognizes that a lack of a smile by their Russian counterpart does not indicate that the American has done anything wrong might have: a high degree of cross-cultural literacy.

Explanation An American businessperson in Russia who recognizes that a lack of a smile by their Russian counterpart does not indicate that the American has done anything wrong might have a high degree of cross-cultural literacy. Cross-cultural literacy refers to understanding how cultural differences across and within countries can have an effect on the way business is practiced.

A high degrees of class consciousness in societies can be disruptive within industries, which can often lead to an increase in the costs of production.

Explanation An antagonistic relationship between management and labor classes, and the resulting lack of cooperation and high level of industrial disruption, tends to raise the costs of production in countries characterized by significant class divisions. In turn, this can make it more difficult for companies based in such countries to establish a competitive advantage in the global economy.

Kristina felt very uncomfortable while talking to the store manager because he moved so close to Kristina that his face was just inches away. What aspect of the situation was bothering Kristina? unspoken language

Explanation An aspect of nonverbal communication is personal space, which is the comfortable amount of distance between you and someone you are talking with.

While Jaxon realized that his company was allowed to deduct an employee's wages if they called in sick in the overseas facility he managed, he instead implemented up to ten paid sick days per year for each employee because he felt it was fundamentally the right thing to do. A rights theorist would say that Jaxon is using __________ to make this choice. his moral compass

Explanation Developed in the twentieth century, rights theories recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures. Moral theorists argue that fundamental human rights form the basis for the moral compass that managers should navigate by when making decisions that have an ethical component. More precisely, they should not pursue actions that violate these rights.

Which situation exemplifies a violation of a folkway? failing to greet a person you know

Explanation Folkways are the routine conventions of everyday life. Generally, folkways are actions of little moral significance, like greeting a person you know. Although folkways define the way people are expected to behave, violation of them is not normally a serious matter.

Salty 'n Crunchy Popcorn Inc. believes that the sole purpose of its existence is to maximize profits for its stockholders. The firm has often been criticized for not engaging in any social investments. However, the firm has been praised for abiding by the laws while earning profits. Which philosophical approach to ethics does this demonstrate? Friedman doctrine

Explanation Friedman's basic position is that the only social responsibility of business is to increase profits, so long as the company stays within the rules of law. Friedman's belief is that a firm should maximize its profits because that is the way to maximize the returns that accrue to the owners of the firm, its stockholders. If stockholders then wish to use the proceeds to make social investments, that is their right, according to Friedman, but managers of the firm should not make that decision for them.

Karon was born into a family that owns numerous corporations and more than one multimillion dollar home. She never worried about paying for college or buying her own car. These characteristics define Karon's social stratum.

Explanation Individuals are born into a particular stratum. They become a member of the social category to which their parents belong. These strata are typically defined on the basis of socioeconomic characteristics such as family background, occupation, and income.

Which statement about culture is true? Multinational enterprises can be engines of cultural change.

Explanation It is important to note that multinational enterprises can themselves be engines of cultural change. In India, for example, McDonald's and other Western fast-food companies may help to change the dining culture of that nation, drawing them away from traditional restaurants and toward fast-food outlets.

Mosha, who works for a multinational company, is often put in teams consisting of people from different cultures. Mosha finds it difficult to function in these teams because, unlike the others, he comes from a culture where building his personal "brand" is emphasized. His culture emphasizes individualism.

Explanation The emphasis on individualism makes it difficult to build teams within an organization to perform collective tasks. If individuals are always competing with each other on the basis of individual performance (such as building one's personal brand), it may be difficult for them to cooperate.

Water Wonders is a manufacturing company that makes large-scale fish tanks. It has customers, investors, vendors, and competitors from all across the globe. Which of these Water Wonders business associates would be an internal stakeholder? Gretchen, a prominent member of the top management at Water Wonders

Explanation The internal stakeholders of a company are individuals or groups who work for or own the business. They include all employees, the board of directors, and stockholders. External stakeholders are all other individuals and groups that have some claim on the firm. Typically, this group is composed of customers, suppliers, lenders, governments, unions, local communities, and the general public.

What is a characteristic of Islamic values, norms, and rituals? Islam forbids the consumption of pork and alcohol.

Explanation The ritual nature of everyday life in a Muslim country is striking to a Western visitor. Among other things, orthodox Muslim ritual requires prayer five times a day (business meetings may be put on hold while the Muslim participants engage in their daily prayer ritual), demands that women should be dressed in a certain manner, and forbids the consumption of pork and alcohol.

Business __________ refers to accepted principles of right or wrong that govern the conduct of a businessperson, the members of a profession, or the actions of an organization. ethics

Explanation The term business ethics refers to accepted principles of right or wrong that govern the conduct of a businessperson, the members of a profession, or the actions of an organization.

Over the past few years, three new factories have been built near Jasper City. A four-acre area of land lies between these three factories and since no one "owns" this land, all three factories are using it as a landfill to dump waste products. The once-beautiful land is now encased in garbage. What phenomenon does this portray? tragedy of the commons

Explanation The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation.

Charlotte is the ethics officer at Green Stages Inc. Her responsibilities would include conducting training programs for employees.

Explanation To make sure that a business behaves in an ethical manner, a number of firms now have ethics officers. These individuals are responsible for managing their organization's ethics and legal compliance programs. This includes making sure that all employees are trained to be ethically aware, that ethical considerations enter the business decision-making process, and that the company's code of ethics is followed.

The __________ supports the idea that everyone is imagined to be oblivious to all of his or her particular characteristics, such as, race, sex, intelligence, nationality, family background, and special talents. veil of ignorance

Explanation Under the veil of ignorance, everyone is imagined to be ignorant of all of his or her particular characteristics, for example, race, sex, intelligence, nationality, family background, and special talents.

The __________ approach to ethics holds that an action is judged desirable if it leads to the best possible balance of good consequences over bad consequences. utilitarian

Explanation Utilitarian approaches to ethics hold that the moral worth of actions or practices is determined by their consequences. An action is judged desirable if it leads to the best possible balance of good consequences over bad consequences.

Mason is an expatriate who was recently moved from a South American location, where his company said he was allowed to make facilitating payments in order to hasten government documentation, to a European location where the company says he needs to find another way to accomplish this task because facilitating payments aren't allowed. Which of the straw man approaches to ethics does this represent? cultural relativism

Explanation While dismissing cultural relativism in its most sweeping form, some ethicists argue there is residual value in this approach. Societal values and norms do vary from culture to culture, customs do differ, so it might follow that certain business practices are ethical in one country, but not in another.