Chapter 5: Ethics, Corporate Social Responsibility, and Sustainability

According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making? (Check all that apply.)

Build an organizational culture that values ethical behavior. Implement decision-making processes that consider ethical aspects of business decisions. Favor hiring and promoting of people with a sense of personal ethics.

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

Ethical dilemmas

True or false: Pursuing strategies that are sustainable has little impact on helping an organization ensure that ethical issues are considered in business decisions.

False

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

Foreign Corrupt Practices Act

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

Friedman Doctrine

Which two of Hofstede's dimensions are present in countries where ethical practices are commonly practiced?

High in uncertainty avoidance High in individualism

What are four determinants of ethical behavior? (Check all that apply.)

Organizational culture Societal culture Personal ethics Leadership

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 a smaller profit margin

Which description of leader 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.

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

They have more substantive environmental regulations.

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

True

______ 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

It is wrong to cheat on a test. Conversely, it is right to

accept responsibility for your actions.

A company's organizational _____ reflects the values and norms that are shared among employees of an organization.

culture

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 the 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.

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

The accepted principles of right and wrong that guide a person's decisions are called _____.

ethics

The Foreign Corrupt Practices Act was amended to include _____ because some U.S. businesses complained the act would put U.S. firms at a competitive disadvantage.

facilitating payments

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

A(n) _______ distribution is one that is considered fair and equitable.

just

The fair and equitable dissemination of economic goods and services is the focus of a(n) _____ distribution.

just

The Hewlett-Packard example discussed in this chapter suggests that one cause of unethical behavior in a company can stem from _____.

leadership

According to Hofstede's theory, cultures high in masculinity and power distance are _____ (more or less?) likely to engage in unethical behavior.

more

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 United States.

organizational; individual or personal

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

personal ethics.

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

The _______ theories recognize that there are things we CANNOT do against individuals because they have certain moral, fundamental rights.

rights

Unrealistic performance goals can often only be attained by

taking shortcuts or behaving in an unethical manner.

True or false: The decision-making process is one of the determinants of ethical behavior.

true

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.

The managers of Simple Sound Manufacturing are struggling to meet their quota that was recently increased by upper management. They decide to eliminate two quality control steps in the manufacturing process. This is unethical behavior that was a result of

unrealistic performance goals.

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

violated basic human rights.