MKT 310 ch. 5

according to rawls' view of justice, when people operate under a veil of ignorance, they would unanimously agree on two fundamental principles of justice. what are these two principles?

- each person is permitted the maximum amount of basic liberties compatible with a similar liberty for others - one basic liberty is ensured, inequality in basic social goods is to be allowed only if such inequalities benefit everyone

3 actions managers can take to ensure that ethical issues are considered in business decision making

- favor hiring and promoting of people with a sense of personal ethics - implement decision-making processes that consider ethical aspects of business decisions - build an organizational culture that values ethical behavior

according to the OECD convention of 1999, the bribery of a foreign official is considered

a criminal offense

payment that ensures a business receives the standard treatment that it ought to receive from a foreign government is known as

a grease payment

a moral ______ is any person or institution that is capable of moral action

agent

in a business setting, noblesse oblige refers to _______ behavior considered to be the responsibility of successful enterprises

benevolent

one justification given for investment in china, which has a questionable human rights record, is that investments will

boost economic growth and raise the standard of living

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

ethical dilemmas

customers, suppliers, and unions are all examples of _______ stakeholders

external

rights that are taken for granted in developed nations, such as freedom of association and freedom of speech are

not universally accepted

when making ethical decisions, ________ factors are stressed in japan, while ________ factors are more important in the US

organizational; individual or personal

concept included in kantian ethics that isn't found in the utilitarian approach is the need to respect

people's dignity

the generally accepted principles and values that govern interactions between individuals are called

personal ethics

an example of a sustainable strategy

strategy designed to reduce CO2 emissions

strategy that helps a company make good profits but does so without harming the environment

sustainable

starbuck's ethical sourcing policies are an example of a _______ that benefits multiple stakeholders including shareholders, the environment, local communities, and customers

sustainable strategy

unrealistic performance goals can often only be attained by

taking shortcuts or behaving in an unethical manner

according to cultural relativism, all ethics are culturally determined

true

business people may behave unethically simply because they forget to ask whether the decision or action they are making is ethical

true

companies can use psychological tests in the hiring process to help identify people who have a strong sense of personal ethics

true

the decision-making process is one of the determinants of ethical behavior

true

universal declaration of human rights was created by the _______ and has been ratified by almost every country

united nations

ethical theory emphasizes that the best actions are those that benefit the most number of people and harm the least number of people?

utilitarianism

garrett's company believes minimizing air emissions is the right thing to do, and it will not contract with a supplier who thinks otherwise. this idea about what the company believes to be right is an example of a

value

what a group believes to be good, right, and desirable is a reflection of their ________

values

which company is contributing to the global tragedy of the commons?

virtual-day inc moved production to a south american country with lower environmental regulations and sends pollutants freely into the air

how do facilitating payments benefit a company?

smooths the progress of services to which the business is entitled

what is an accurate description of developed nations with regard to the environment?

they have more substantive environmental regulations

The United Nations ______ is a global expression of what many believe are the rights to which all human beings are inherently entitled

universal declaration of human rights

pursuing strategies that are sustainable has little impact on helping an organization ensure that ethical issues are considered in business decisions

false

the organization for economic cooperation and development adopted conventions in 1999 that obligated member states to reject the use of facilitating payments

false

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

foreign corrupt practices act

theory that concentrates on the fair distribution of economic goods and services in a society

justice

who argued that it was ethically justified for general motors to operate in south africa as long as conditions of promoting abolition of apartheid laws were fulfilled?

leon sullivan

in the majority of nations, it's the responsibility of the government to provide benefits and services that secure the rights of the citizens. in this respect, the government is acting as a

moral agent

gemini corp is a multinational company. which argument should the company use to justify conducting business in a repressive country?

continuing inward investment helps boost economic growth and living standards in the country

2 drawbacks associated with the utilitarian philosophy on business ethics

- does not take justice into account - difficult to measure the benefits, costs, and risks of a course of action

which two of hofstede's dimensions are present in countries where ethical practices are commonly practiced?

- high in individualism - high in uncertainty avoidance

4 determinants of ethical behavior

- personal ethics - societal culture - leadership - organizational culture

2 theories that 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

3 practices that would be considered acceptable according to the concept of cultural relativism

- there's a rejection of universal notions of morality - if a culture supports slavery, it's okay to use slave labor - you should adopt the culture of the country that you are doing business in, no matter what

carla questioned the ethics of her company when hiring an indonesian firm to manufacture its clothing products. she knew that women who worked in these sewing factories were forced to work long hours in substandard conditions and she knew she wouldn't like to work that way. carla is demonstrating the use of _______

a moral immagination

it's wrong to cheat on a test. conversely, it's right to

accept responsibility for your actions

Some ethics experts have proposed practical guides or ethical ______ to make ethical decisions in a systematic way.

algorithms

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

garret hardin described how herders shared common land for grazing. it was advantageous to the poor to place more and more livestock on the commons because it would mean more income. why did these actions result in ultimate tragedy?

commons were overgrazed and eventually destroyed by the livestock

Under Rawls' ______ principle, the long-run expectations of the least-advantaged social group need to be maximized

difference

sanjay told his staff that the company didn't care if the components came from a company using sweatshop labor, the parts were needed to meet the order and the company needed to order to make the sales quota. in this situation, the company makes this decision based on purely _____ terms

economic

ethical issues arise in international business when

environmental regulations in host nations are less stringent than those in the home country

Celia, a product manager, advocated for the company to proceed with the development of the product even though it hadn't received FDA approval yet because she wanted to be the first to market with the product when it was approved. Jessica, the director of product development, felt this wasn't a good idea because early studies had shown that the product might be causing neurological problems in users and might need to be reformulated. Which step in the process to assess an ethical issue does this represent?

establishing moral intent

Bennie is managing a call center in Italy. He is finding it difficult to motivate employees to meet their call volume using the standard tactics employed in the United States. Bennie is told by another manager that if he starts offering "daily bonuses" to employees, they will meet their targets. He is torn between doing what is right and meeting his numbers. Which type of challenge is Bennie facing?

ethical

Marietta is visiting her company's manufacturing subcontractor in Pakistan. She notices children working on the machinery with no air conditioning and little access to water. But she also knows these children are probably supporting their families. Marietta can't decide if children working in the factory is appropriate or inappropriate. This is an example of a(n) ______.

ethical dilemma

The Plume and Fabric manufacturing company abides by a strict code of providing the best in equipment, lighting, and overall working conditions for its 350 employees who create costumes for Broadway shows. While the company could save money by hiring less-skilled or underage labor to do the job, it knows that decision is not acceptable. This scenario demonstrates how a(n) _____ plays a role in the company's decisions.

ethical strategy

Lucia is responsible for establishing a confidential service that employees can use to question if a practice is unethical and she also makes sure the company complies with government laws and regulations. Lucia is an example of an ________

ethics manager

management position that serves as the organization's internal control point for improprieties

ethics officer

which statement accurately describes how personal ethics might be challenged in international transactions?

expatriate managers may face more pressure to violate their personal ethics

the foreign corrupt practices act was amended to include _______ because some US businesses complained the act would put US firms at a competitive disadvantage

facilitating payments

straw men theory that states businesses should behave in a socially responsible manner, according to ethical custom and without deception and fraud is the _______

friedman doctrine

according to the friedman doctrine, what is the only social responsibility a company has as long as it stays within the rules of law?

increasing profits

employees, directors, and stockholders are examples of ______ stakeholders

internal

individuals or groups who work for or own the business are referred to as ______ stakeholders

internal

the fair and equitable dissemination of economic goods and services is the focus of a ____ distribution

just

_______ ethics hold that people are conscious moral beings that have dignity and should be treated with respect

kantian

hewlett-packard example discussed in this chapter suggests that one cause of unethical behavior in a company can stem from ______

leadership

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

moral courage

according to hofstede's theory, cultures high in masculinity and power distance are ______ likely to engage in unethical behavior

more

Celeste, a manager at a multinational investment firm located in Italy, knows that the company isn't reporting accurate profits to the government. She explains that this action is fine because all the multinational investment firms behave in the same manner. Celeste can be described as a(n) ______.

naive immoralist

the _______ believes that if a multinational firms sees that other firms are not following ethical norms, then they don't have to either

naive immoralist

Trevor told his foreign-born roommate that it was socially acceptable in the United States to question a professor if you believed he or she was saying something that was not true. This example of a social rule that governs behavior demonstrates the idea of a

norm

social rules and guidelines used to determine appropriate behavior in a particular setting are known as ______

norms

as demonstrated by the nike example in the text, which situation is generally MOST preferred when considering employment practices in international business?

requiring good conditions in home and foreign operations even when this results in smaller profit margin

James is an expatriate from Nebraska managing a tech support center in India. He is a firm believer in the minimum wage and treating employees fairly. Yet he sees his assistant manager firing an employee and hiring his neighbor to do the job at a lower rate. Knowing this would never be accepted in the United States, James confronts his assistant manager, claiming this behavior isn't right. He is displaying the ______ approach to ethics.

righteous moralist

a person who follows the idea of ______ says that the multinational's home country standards of ethics are the appropriate approach to follow in foreign countries

righteous moralist

certain theories accept that there are rights, both positive and negative, that all humans have simply because they are human. these are called ______ theories

rights

idea that business people should favor decisions that have both good economic and social consequences is called corporate

social responsibility

approach the business ethics that includes cultural relativism, righteous moralist, and naive immoralist

straw men

which description of behavior is most likely to promote a strong ethical culture in an organization?

the boss who consistently demonstrates strong personal ethics in all dealings with clients

_______ ethics measure actions on a cost-benefit scale

utilitarian

the first thing brett's manager told him when he started working was that the company always considered the social consequences of any business decisions. this is a reflection of ______

CSR - corporate social responsibility

4 approaches that make up the straw men approach to ethics

- righteous moralist - friedman doctrine - cultural relativism - naive immoralist