International Mgmt Chapter 5

51) According to the model developed by Rob van Tulder and Alex van der Zwart, which of the following best exhibits the cultural values of a nation's citizens?

civil society

19) Which of the following is a common method for encouraging ethical behavior among employees?

codes of ethics

30) Firms such as Procter & Gamble that use recycled materials whenever possible are most likely demonstrating their ________.

commitment to environmental protection

15) Gift exchanges in a business situation in Japan are best described as ________.

common

52) According to the model developed by Rob van Tulder and Alex van der Zwart, Anglo-Saxon countries view the state, the market, and civil society as ________.

competitive

13) Which term refers to a decision that benefits an individual to the possible detriment of the organization?

conflict of interest

14) Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n) ________.

conflict of interest

18) 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?

conflict of interest

53) According to the model developed by Rob van Tulder and Alex van der Zwart, firms that adhere to the Asian Way are more likely to ________.

cooperate closely with the government

54) According to the model developed by Rob van Tulder and Alex van der Zwart, what is the key to the Continental European Approach?

cooperation between labor, business, and government

50) A firm that wants to review the effectiveness of its social responsibility efforts should most likely conduct a(n) ________

corporate social audit

28) Which of the following is one of the main groups of stakeholders that firms usually focus on?

customers

36) When an organization does everything, it must do from a legal standpoint but nothing more, it has adopted the ________ to social responsibility.

defensive stance

63) Which of the following best explains why international factory owners would most likely want regular ILO inspections?

encourage investments from MNEs

5) When behavior conforms to generally accepted norms, it is referred to as ________ behavior.

ethical

49) The extent to which members of an organization follow basic ethical standards of behavior is ________.

ethical compliance

1) Which term refers to an individual's personal beliefs about whether a decision, behavior, or action is right or wrong?

ethics

11) BP's program to prepare managers at headquarters for assignments in Russia is an example of ________.

ethics training

42) A company taking a proactive approach to social responsibility will most likely ________.

exhibit sincere and significant efforts to contribute to society

7) Which of the following best explains why looting was uncommon in Japan after the country's 2011 earthquake and tsunami?

importance of group membership

2) Ethical beliefs are primarily ________ in nature.

individual

48) The extent to which an organization conforms to regional, national, and international laws is known as ________.

legal compliance

43) When tobacco companies make a decision to follow laws regarding the marketing of its products in the United States but market its tobacco aggressively in countries without such regulations, this is an example of which approach to social responsibility?

the defensive stance

59) 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?

Foreign Corrupt Practices Act

9) Three employees of Martin Enterprises have flown to China to meet a potential business partner. The three employees cannot agree about giving a gift to the potential partner. James, an American manager, believes that gift-giving is an ethical violation. Eun Hee, a South Korean manager, and Evan Lee, a Japanese manager, assert that gift-giving would be appropriate. This situation most likely illustrates which of the following statements?

Gift exchanges are a more important way of doing business in high-context cultures

8) 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 does this most likely illustrate?

Individuals can rationalize behavior in various circumstances.

10) Sonya and Amber work together in the Hong Kong corporate office. Despite having similar backgrounds and education, they cannot agree on whether it is appropriate to offer bribes to Chinese officials for the purpose of expediting business transactions. Which ethical generalization does this most likely illustrate?

Individuals have their personal belief systems.

61) What organization is the major watchdog for monitoring working conditions in factories in developing countries?

International Labor Organization

20) Which of the following most likely improves the effectiveness of a code of ethics for an MNE?

support from organizational practices

60) Which regulation seeks to protect individuals from human rights abuses and holds MNCs accountable for such abuses?

Alien Tort Claims Act

23) In a survey on the acceptability of bribing officials when doing business in foreign countries, which country found bribery most unacceptable?

Austria

55) What is the purpose of the Foreign Corrupt Practices Act (FCPA)?

It prohibits the offering of bribes to any foreign government official.

56) What is the purpose of the Alien Tort Claims Act?

It protects individuals from human rights abuses.

31) Which of the following statements is most likely true about firms with formal codes of ethics?

Organizational practices and a strong ethical corporate culture are essential.

21) Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following questions is most relevant to the current discussion about the firm's code of ethics?

Should the code of ethics be globally consistent or tailored to local contexts?

24) According to a survey on the acceptability of bribing officials when doing business in foreign countries, which of the following was the most tolerant of bribery?

South Korea

6) ________ are the things a person feels to be important.

Values

39) Logix Manufacturing is a U.S. firm with a factory in Mexico City. Local leaders in Mexico City ask Logix managers to make contributions to a youth sports organization. Logix provides the league with new equipment and uniforms. Which stance towards social responsibility does Logix most likely have?

accommodative

22) Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following training topics would most likely prepare expatriate managers for handling ethics issues in China and Bangladesh?

local business and ethical practices

16) Gift exchanges are likely to be considered a conflict of interest in a(n) ________ culture.

low-context

58) The primary purpose of the International Labor Organization (ILO)is to ________.

monitor working conditions of factories in developing countries

33) Which of the following is the most resistant approach to social responsibility?

obstructionist stance

35) When an organization does as little as possible to address social or environmental issues, it has adopted the ________ to social responsibility.

obstructionist stance

38) Which of the following is an informal dimension of social responsibility?

organizational culture

17) HR at APEX Designs, an international architectural firm noticed the following behaviors among employees lately. Which of the following would most likely be considered a problematic ethical situation at APEX?

padding company expense accounts

3) Which of the following is most influential on an individual's ethics?

peers

37) Alcoa's gift of $112,000 to a small town in Brazil to build a sewage treatment plant is an example of ________.

philanthropic giving

34) Which of the following is the most responsible approach to social responsibility?

proactive stance

40) McDonald's Ronald McDonald House program is an example of a(n) ________ to social responsibility.

proactive stance

41) Firms that view themselves as citizens of society have adopted the ________ to social responsibility.

proactive stance

44) The Body Shop seeks out opportunities to improve the welfare of individuals all over the world. It has adopted the ________ to social responsibility.

proactive stance

29) Companies that are socially responsible to their investors do which of the following?

provide appropriate information to shareholders and investors

62) An MNE with a factory in Cambodia is being inspected by the International Labor Organization. What is the most likely focus of the inspection?

safe working conditions

57) Individuals convicted under the Anti-Bribery Convention of the Organization for Economic Cooperation and Development will most likely be required to ________.

serve time in jail

25) The term ________ refers to the set of obligations an organization undertakes to protect and enhance the society in which it functions.

social responsibility

27) The term ________ refers to those people and organizations that are directly affected by the practices and performance of an organization.

stakeholders

45) According to the model developed by van Tulder and van der Zwart there are three main actors in the policy formulation process. Which is a main actor?

the state

26) A company that is socially responsible will most likely ________.

undertake efforts to protect the society in which it functions

4) Behavior that fails to conform to generally accepted social norms is considered ________.

unethical

32) Examples of promoting the general welfare of society include all of the following except ________.

using appropriate accounting procedures

46) Which term refers to the disclosure by an employee of illegal or unethical conduct on the part of others within the organization?

whistle-blowing

47) Justin is aware that his supervisor used corporate funds to pay for a personal vacation and reports the offense. This is called ________.

whistle-blowing

12) Which of the following is most susceptible to ethical variations in international business?

working conditions