Chapter 5
6) Which of the following is not a factor that influences one's ethics? A) family B) peers C) observation of others D) religious beliefs E) All of the above influence ethical beliefs.
E) All of the above influence ethical beliefs.
70) Which regulation prohibits the offering of bribes to any foreign government official in order to influence official actions or policies of that official or to gain or retain business? A) Foreign Corrupt Practices Act B) Helms-Burton Act C) Alien Tort Claims Act D) the Anti-Bribery Convention of the OECD E) Disclosure of Conflict Act
A) Foreign Corrupt Practices Act
15) Sonya and Amber work together in the Hong Kong corporate office. Despite their similar backgrounds and education, they cannot agree on whether it is appropriate to offer bribes to officials in China in order to move their business dealings along there. Which ethical generalization is this an example of? A) Individuals have their personal belief system. B) Individuals from the same cultural contexts will tend to have similar beliefs. C) Individuals can rationalize behavior. D) Individuals may not always be consistent with their beliefs. E) All of the above are ethical generalizations.
A) Individuals have their personal belief system.
73) What organization is the major watchdog for monitoring working conditions in factories in developing countries? A) International Labor Organization B) Human Rights Campaign C) Organization for Economic Cooperation and Development D) World Trade Organization E) Organization for the Protection of Underprivileged Employees
A) International Labor Organization
75) A major company is suspected of human rights violations in factories in less developed countries. Which organization should be contacted to investigate? A) International Labor Organization B) Human Rights Campaign C) Organization for Economic Cooperation and Development D) World Trade Organization E) Organization for the Protection of Underprivileged Employees
A) International Labor Organization
66) What is the purpose of the Foreign Corrupt Practices Act (FCPA)? A) It prohibits the offering of bribes to any foreign government official. B) It protects individuals from human rights abuses. C) It eliminates bribery in international business transactions. D) It inspects working conditions of factories in developing countries. E) It prohibits conflicts of interest among employees of international businesses.
A) It prohibits the offering of bribes to any foreign government official.
10) ________ are the things a person feels to be important. A) Values B) Attitudes C) Ethics D) Norms E) Expectations
A) Values
57) A company taking a proactive approach to social responsibility ________. A) actively seeks opportunities to contribute to society B) usually does as little as possible to address social or environmental problems C) undertakes to protect and enhance the society in which it functions D) conforms to regional, national, and international laws E) follows basic ethical standards of behavior
A) actively seeks opportunities to contribute to society
60) According to the model developed by van Tulder and van der Zwart there are three main actors in the policy formulation process. Which is not a main actor? A) commercial society B) the state C) the market D) civil society
A) commercial society
39) Which of the following is not one of the main groups of stakeholders that firms usually focus on? A) competitors B) customers C) employees D) investors E) none of the above
A) competitors
20) What ethical issue refers to the situation that occurs when a decision potentially benefits the individual to the possible detriment of the organization? A) conflict of interest B) wages C) confidentiality D) honesty E) secrecy
A) conflict of interest
21) Many companies have forbidden their buyers from accepting gifts from potential suppliers. What ethical issue is this an example of? A) conflict of interest B) wages C) confidentiality D) honesty E) secrecy
A) conflict of interest
29) Jack always likes to place orders with Sam's Supply Company because the company sends him a gift certificate for $100 each holiday season. Which ethical issue is this an example of? A) conflict of interest B) honesty C) confidentiality D) secrecy E) none of the above
A) conflict of interest
8) When behavior conforms to generally accepted norms, it is referred to as ________. A) ethical behavior B) acceptable behavior C) normal behavior D) unethical behavior E) expected behavior
A) ethical behavior
16) BP's program to prepare managers at headquarters for assignments in Russia is an example of A) ethics training B) ethical guidelines C) organizational practices and corporate culture D) a code of ethics E) guanxi
A) ethics training
46) Which of the following is the least responsible approach to social responsibility? A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance E) reactive stance
A) obstructionist stance
48) When an organization does as little as possible to address social or environmental issues, it has adopted the ________ to social responsibility. A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance E) reactive stance
A) obstructionist stance
51) Which of the following is not an informal dimension of social responsibility? A) philanthropic giving B) organizational leadership C) organizational culture D) how the organization responds to whistle blowing E) all of the above are examples of informal dimensions of social responsibility
A) philanthropic giving
42) Companies such as Procter & Gamble and the Conservation Corporation of Africa that use recycled materials whenever possible are demonstrating ________. A) their social responsibility to the natural environment B) general social welfare C) codes of ethics D) their responsibility to organizational stakeholders E) their accommodative stance
A) their social responsibility to the natural environment
14) Three employees of Martin Enterprises have flown to China to meet with potential business partners there. The three employees are in a disagreement about whether to give gifts to the potential partners. James is from the U.S. office and he feels it is an ethical violation. Eun Hee (from the South Korean office) and Evan Lee (from the Japanese office) agree that the gift is appropriate given the Chinese culture. Which ethical generalization is this an example of? A) Individuals have their personal belief system. B) Individuals from the same cultural contexts will tend to have similar beliefs. C) Individuals can rationalize behavior. D) Individuals may not always be consistent with their beliefs. E) All of the above are ethical generalizations.
B) Individuals from the same cultural contexts will tend to have similar beliefs.
67) What is the purpose of the Alien Tort Claims Act? A) It prohibits the offering of bribes to any foreign government official. B) It protects individuals from human rights abuses. C) It eliminates bribery in international business transactions. D) It inspects working conditions of factories in developing countries. E) It prohibits conflicts of interest among employees of international businesses.
B) It protects individuals from human rights abuses.
44) Which of the following is not a socially responsible behavior toward investors? A) Follow appropriate accounting procedures. B) Overstate earnings to increase share prices. C) Manage the organization to protect shareholder interests. D) Avoid the appearance of improprieties. E) All of the above are socially responsible behaviors towards investors.
B) Overstate earnings to increase share prices.
3) Fruit juice suppliers in South America rely heavily on ________. A) elderly employees B) child labor C) female workers D) illegal immigrant workers E) none of the above
B) child labor
49) When an organization does everything it must do from a legal standpoint but nothing more, it has adopted the ________ to social responsibility. A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance E) reactive stance
B) defensive stance
27) Sally uses her telephone at work to call her sister long distance. Which ethical issue is this an example of? A) conflict of interest B) honesty C) confidentiality D) secrecy E) none of the above
B) honesty
28) Jason completes company work at home on the weekends. He justifies taking office supplies home because of the company work he completes at home. Which ethical issue does this scenario relate to? A) conflict of interest B) honesty C) confidentiality D) secrecy E) none of the above
B) honesty
50) Alcoa's gift of $12,000 to a small town in Brazil to build a sewage treatment plant is an example of ________. A) guanxi B) philanthropic giving C) ethical compliance D) legal compliance E) basic ethical standards of behavior
B) philanthropic giving
53) McDonald's Ronald McDonald House program is an example of ________ to social responsibility. A) accommodative stance B) proactive stance C) obstructionist stance D) ethical stance E) defensive stance
B) proactive stance
35) The term ________ refers to the set of obligations an organization undertakes to protect and enhance the society in which it functions. A) organizational ethics B) social responsibility C) corporate ethics D) social values E) none of the above
B) social responsibility
58) R.J. Reynolds' decision to follow laws regarding the marketing of its products in the United States but market its tobacco aggressively in countries without such regulations is an example of which approach to social responsibility? A) the obstructionist stance B) the defensive stance C) the accommodative stance D) the proactive stance E) the reactive stance
B) the defensive stance
7) Behavior that does not conform to generally accepted social norms is considered ________. A) ethical B) unethical C) illegal D) unregulated
B) unethical
19) The ethical concerns prevalent in how employees treat the organization include all of the following except ________. A) conflict of interest B) wages C) confidentiality D) honesty E) secrecy
B) wages
17) When an employee is paid less than he deserves because the manager knows the employee depends on the job, the ethical issue is an example of ________. A) hiring and firing practices B) wages and working conditions C) employee privacy D) conflict of interest E) honesty
B) wages and working conditions
62) The term ________ refers to the disclosure by an employee of illegal or unethical conduct on the part of others within the organization. A) honesty B) whistle-blowing C) acknowledgement D) conflict of interest E) organizational communication
B) whistle-blowing
63) Justin is aware that his supervisor used corporate funds to pay for a personal vacation. He reports the offense. This is called ________. A) honesty B) whistle-blowing C) acknowledgement D) conflict of interest E) organizational communication
B) whistle-blowing
71) Which regulation seeks to protect individuals from human rights abuses and holds MNCs accountable for such abuses? A) Foreign Corrupt Practices Act B) Helms-Burton Act C) Alien Tort Claims Act D) the Anti-Bribery Convention of the OECD E) Disclosure of Conflict Act
C) Alien Tort Claims Act
33) In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery acceptable. A) Russia B) China C) Austria D) Taiwan E) South Korea
C) Austria
12) Mick has been padding his expense account on business trips. However, it seems fair to him because the company refuses to provide him with comp time despite long hours he works on these business trips. Which ethical generalization is this an example of? A) Individuals have their personal belief system. B) Individuals from the same cultural contexts will tend to have similar beliefs. C) Individuals can rationalize behavior. D) Individuals may not always be consistent with their beliefs. E) All of the above are ethical generalizations.
C) Individuals can rationalize behavior.
68) What is the purpose of the Anti-Bribery Convention of the Organization for Economic Cooperation and Development? A) It prohibits the offering of bribes to any foreign government official. B) It protects individuals from human rights abuses. C) It eliminates bribery in international business transactions. D) It inspects working conditions of factories in developing countries. E) It prohibits conflicts of interest among employees of international businesses.
C) It eliminates bribery in international business transactions.
52) When a company agrees to participate in a social program only after being asked to do so, we say the company has a ________ stance towards social responsibility. A) proactive B) obstructionist C) accommodative D) reactive E) defensive
C) accommodative
18) Some organizations read the electronic mail messages sent by their employees. Which ethical issue is this an example of? A) hiring and firing practices B) wages and working conditions C) employee privacy D) conflict of interest E) honesty
C) employee privacy
1) The term ________ refers to an individual's personal beliefs about whether a decision, behavior, or action is right or wrong. A) value B) culture C) ethics D) religion E) expectations
C) ethics
64) The extent to which an organization conforms to regional, national, and international laws is known as ________. A) guanxi B) wa C) legal compliance D) ethical compliance E) whistle-blowing
C) legal compliance
25) Gift exchanges are likely to be considered a conflict of interest in a(n) ________ culture. A) high-context B) collectivist C) low-context D) power-respecting E) uncertainty-avoiding
C) low-context
43) Firms with formal codes of ethics A) eliminate virtually all ethical issues from their business B) do not need to incorporate ethical training as well C) must back up the code of ethics with organizational practices and a strong ethical organizational corporate culture D) must develop individuals codes for each subunit E) all of the above
C) must back up the code of ethics with organizational practices and a strong ethical organizational corporate culture
2) In Mexico, ________. A) child labor is legal B) school-age children do not work C) one in five children work D) children are only permitted to work field hands E) laws against child labor are strictly enforced
C) one in five children work
22) In Japan, ________ gifts represent a token of gratitude for favors and loyalty shown throughout the year. A) wa B) ochugen C) oseibo D) glasnost E) keiretsu
C) oseibo
31) Which of the following is not a common method for encouraging ethical behavior among employees? A) code of ethics B) ethics training C) promotion of punishment for unethical transgressions D) organizational practices E) corporate culture
C) promotion of punishment for unethical transgressions
36) A company that is socially responsible ________. A) usually agrees to participate in social programs, but not proactively B) usually does as little as possible to address social or environmental problems C) undertakes to protect and enhance the society in which it functions D) conforms to regional, national, and international laws E) follows basic ethical standards of behavior
C) undertakes to protect and enhance the society in which it functions
55) A company that is socially responsible ________. A) usually agrees to participate in social programs, but not proactively B) usually does as little as possible to address social or environmental problems C) undertakes to protect and enhance the society in which it functions D) conforms to regional, national, and international laws E) follows basic ethical standards of behavior
C) undertakes to protect and enhance the society in which it functions
13) Janet believes in protecting the privacy of her employees. Yet, she shared a rumor that Matt, a coworker, has been having an affair with another coworker. Which ethical generalization is this an example of? A) Individuals have their personal belief system. B) Individuals from the same cultural contexts will tend to have similar beliefs. C) Individuals can rationalize behavior. D) Individuals may not always be consistent with their beliefs. E) All of the above are ethical generalizations.
D) Individuals may not always be consistent with their beliefs.
69) What is the purpose of the International Labor Organization (ILO)? A) It prohibits the offering of bribes to any foreign government official. B) It protects individuals from human rights abuses. C) It eliminates bribery in international business transactions. D) It inspects working conditions of factories in developing countries. E) It prohibits conflicts of interest among employees of international businesses.
D) It inspects working conditions of factories in developing countries.
34) In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery unacceptable. A) Sweden B) Australia C) Switzerland D) South Korea E) Canada
D) South Korea
23) The type of gift exchanged by businesspeople in Japan is determined by ________. A) the nature of the business relationship B) the length of the business relationship C) the amount of business being transacted D) all of the above E) A and B only
D) all of the above
4) What ethical abuses have independent contractors manufacturing shoes for Nike been accused of in past years? A) child labor abuse B) unsafe working conditions C) violations of local regulations D) all of the above E) none of the above
D) all of the above
61) Firms can formally implement social responsibility at the corporate level through ________. A) philanthropic giving B) ethical compliance C) legal compliance D) all of the above
D) all of the above
65) The extent to which members of an organization follow basic ethical standards of behavior is ________. A) guanxi B) wa C) legal compliance D) ethical compliance E) whistle-blowing
D) ethical compliance
5) Ethical beliefs are ________ in nature. A) societal B) regional C) familial D) individual E) cultural
D) individual
41) Companies that are socially responsible to their investors do all of the following except ________. A) provide appropriate information to shareholders B) manage the organization to protect shareholder rights and responsibilities C) follow proper accounting procedures D) manipulate stock prices to provide the most value to investors E) all of the above
D) manipulate stock prices to provide the most value to investors
38) The term ________ refers to those people and organizations that are directly affected by the practices of an organization and have a stake in its performance. A) customers B) employees C) community D) organizational stakeholders E) suppliers
D) organizational stakeholders
47) Which of the following is the most responsible approach to social responsibility? A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance E) reactive stance
D) proactive stance
56) Firms that view themselves as citizens of society have adopted the ________ to social responsibility. A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance E) reactive stance
D) proactive stance
59) The Body Shop seeks out opportunities to improve the welfare of individuals all over the world. It has adopted the ________ to social responsibility. A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance E) reactive stance
D) proactive stance
72) Which regulation attempts to eliminate bribes in international business transactions? A) Foreign Corrupt Practices Act B) Helms-Burton Act C) Alien Tort Claims Act D) the Anti-Bribery Convention of the OECD E) Disclosure of Conflict Act
D) the Anti-Bribery Convention of the OECD
26) Ethical situations involving honesty include all of the following except ________. A) stealing supplies from the office B) making personal calls during work time C) padding expense accounts D) working overtime E) shopping online during work hours
D) working overtime
40) Social responsibility to customers includes all of the following except ________. A) provide fair treatment B) offer fair prices C) honor product warranties D) meet delivery commitments E) All are forms of customer-oriented social responsibility.
E) All are forms of customer-oriented social responsibility.
9) All of the following are ethical generalizations except ________. A) individuals have their own belief system B) individuals from the same cultural contexts will tend to have similar beliefs C) individuals can rationalize behavior D) individuals may not always be consistent with their beliefs E) All of the above are ethical generalizations.
E) All of the above are ethical generalizations.
74) What organization systematically inspects factories in countries like Cambodia to monitor working conditions of employees? A) International Rights Organization B) Human Rights Campaign C) Organization for Economic Cooperation and Development D) World Trade Organization E) International Labor Organization
E) International Labor Organization
54) Which of the following social responsibility hot spots continues to have significant problems? A) Costa Rica B) Uganda C) New Zealand D) Botswana E) Nigeria
E) Nigeria
11) Perceptions of what is ethical behavior vary from ________. A) culture to culture B) individual to individual C) family to family D) country to country E) all of the above
E) all of the above
30) What categories below hold the potential for ethical dilemmas between the organization and its economic agents? A) financial disclosures B) advertising and promotions C) bargaining and negotiating D) ordering and purchasing E) all of the above
E) all of the above
32) A code of ethics only works if ________. A) it is clear and straightforward B) it addresses elements of ethical conduct relevant to the environment C) it is adhered to when problems arise D) it addresses elements of culture relevant to business operations E) all of the above
E) all of the above
37) Which of the following is not an area in which an organization may exercise social responsibility? A) stakeholders B) natural environment C) general social welfare D) local community E) all of the above
E) all of the above
24) Japan has a high-context culture. Gift exchanges in a business situation are ________. A) common B) appropriate C) rare D) inappropriate E) both A and B
E) both A and B
45) Examples of promoting the general welfare of society include all of the following except ________. A) charitable contributions B) involvement in public health C) involvement in education D) promotion of human rights issues E) use of appropriate accounting procedures
E) use of appropriate accounting procedures