BUS5 187: Smartbook Chp 5

Select all that apply: Which two groups are most likely to be considered he external stakeholders of a firm?

1. customers 2. suppliers

Select all that apply: According to Rawl's 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 prinicples?

1. each person is permitted the maximum amount of basic liberties compatible with a similar liberty for others. 2. once basic liberty is ensured, inequality in basic social goods is to be allowed only if such inequalities benefit everyone

Click and drag on elements in order: What are the next four steps a company should take in the decision-making process once it has identified its stakeholders? List the steps in the correct order, starting with step two at the top of the list.

1. judge the ethics of the proposed strategic decision 2. establish moral intent 3. engage in ethical behavior 4. audit the decisions

Select all that apply: What are four of the determinants of ethical behavior?

1. societal culture 2. leadership 3. personal ethics 4. organizational culture

The theory that states that businesses should not incur social expenditures unless required by law or required for the efficient operations of a business if the ____.

Friedman Doctrine

Jeff is a manager at a toy manufacturing facility. Which of these situations demonstrate how Jeff uses his moral imagination?

Jeff decided not to outsource parts to a company in Asia because he knew the company used small children as laborers

The Universal Declaration of Human rights was adopted by the ____ and is a global expression of what many believe are the rights to which all human beings are inherently entitled

United Nations

What is the focus of the justice theories?

a fair distribution of economic goods and services

Our personal ethics tell us it is wrong to cheat on a test. Conversely, it is right to

accept responsibility for your actions

The Universal Declaration of Human Rights has been ratified by ______.

almost every country

Global warming is said to be the result of which greenhouse gas?

carbon dioxide

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

____ refers to the moral obligation to act in an honorable and benevolent manner

noblesse oblige

______ refers to the moral obligation to act in an honorable and benevolent manner.

noblesse oblige

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.

The accepted standards or ways of doing things in a particular setting are known as

norms

Today, Freedom House ranks Myanmar as ____.

not free

Today, Freedom House ranks Myanmar as ______.

not free

Rights such as freedom of association and freedom of speech are

not universally accepted

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

True or False: Business people may behave unethically simply because they forget to ask themselves whether the decision or action they are making is ethical

true

True or False: Companies can use psychological tests in the hiring process to help identify people who have a strong sense of personal ethics

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

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

_____ 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

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

The _____ of a company reflect what the company believes to be good, right, and desirable.

values

In the 1980s, Western businesses questioned the ethics of operating in South Africa because the apartheid system in place there

violated basic human rights

Which maxim accurately summarizes the concept of cultural relativism?

when in Rome, do as the Romans do

Under Rawl's _____ principle, the long-run expectations of the least-advantaged social group need to be maximized

difference

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. Finally, Bennie is told that if he starts offering "daily cash bonuses" to employees, they will meet their targets. He is torn between doing what he believes is right and meeting his numbers. Bennie is facing a challenge to ____.

his personal ethics

Because _____ violations were so prevalent in Myanmar in the 1990s, many Western companies could no longer condone doing business there

human rights

When Byron Manufacturing decided to recycle component parts, it not only saved the company money, it also limited the amount of waste it sent to landfills. This decision reflects the idea of ______.

CSR

Which step in the decision-making process is often overlooked by companies?

audit the decision

In a business setting, noblesse oblige refers to ______ behavior considered to be the responsibility of successful enterprises.

benevolent

International businesses frequently have to address ethical issues that develop because

countries have different business laws, practices, and regulations

According to the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the bribery of a foreign public official is considered a(n) _____.

criminal offense

The belief that ethics are culturally determined and a firm should adopt the ethics of the country it is doing business in is

cultural relativism

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

When the Morrison Manufacturing company was fined by the US government for the amount of carbon dioxide it released into the air, it decided to move its business to Thailand where it knew there were fewer restrictions on air emissions. Environmentalists would most likely question the _____ implications of this decision

ethical

In some countries, bribes are considered appropriate in business. In other countries, bribes are against the law. This is an example of ______.

ethical dilemma

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 dilemma

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

ethical dilemmas

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

ethical officers

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

Which statement BEST explains how a manager's personal ethics might be challenged in international transactions?

expatriate managers may face more pressure to violate their personal ethics

In order to expedite routine government actions, what was specifically excluded from the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions?

facilitating payments

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

false

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

internal

The main criticism of the righteous moralist approach is that

its supporters go too far. The home-country standards are not always applicable

What theories concentrate on the fair distribution of economic goods and services in a society?

justice

Maria's boss asked her to do whatever t 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

Clara questioned the ethics of her company in hiring and 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. Clara is demonstrating the use of ____.

moral imagination

The _____ believes it is always the appropriate strategy to adopt home-country ethical standards

righteous moralist

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

social responsibility

A strategy that not only helps a multinational firm make a good profit, but does so without harming the environment while simultaneously ensuring that the company acts in a socially responsible manner toward its stakeholders is referred to as a(n) ______ strategy

sustainable

A(n) ______ strategy is a conscious and proactive use of methods that do not harm the planet, people or profits while leaving a positive impact.

sustainable

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

In a organization where personal ethics are important, which individual should be hired?

the individual who has a disappointing interview despite having verified glowing letters of recommendation that attest to his integrity

What is an accurate description of developed nations in terms of the environment?

they have more substantial environmental regulations

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

to increase profits