Chapter 5 Smartbook Int'l Law

Organizational _____ is the name given to the values and norms that are shared among employees of an organization.

CULTURE

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

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

Ethical dilemmasssss

Which aspect of international business convinced Leon Sullivan to lead the way in eliminating apartheid in South Africa?

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.

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

Falseeee

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

Foreign Corrupt Practices Act

According to the Sullivan principles, what two conditions were GM required to fulfill in order to continue to operate in South Africa?

GM should do everything possible to promote the abolition of apartheid laws and GM could not obey the apartheid laws in its own South African operations.

Which well-known advocate for human rights was elected president of South Africa following the apartheid movement in South Africa?

Nelson Mandela

What are four of the determinants of ethical behavior?

Personal ethics, leadership, organizational culture, and societal culture

The practice of "gift-giving" between the parties in a business negotiation is considered right and proper behavior in many Asian cultures, while some Westerners view the practice as a form of bribery. What is this an example of?

An ethicallllllll dilemmaaaaa

Building an organizational culture that places a high value on ethical behavior requires incentive and reward systems that reward people who engage in ethical behavior. True or False

T

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

TRUE

Apple has a formal statement of the ethical priorities that employees must follow. This is called a code of ethics.

TRUEEEEEEEEEEE

What was taking place in South Africa when the apartheid system was dominant?

There was mandated segregation between whites and nonwhites.

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

They have more substantial environmental regulations.

Suzanne was working in Rwanda for a multinational firm, and she was told that she would need to bribe government officials if she wanted to get her raw materials on time. She was uncomfortable with this as she had always felt bribes were unethical. This kind of pressure sometimes happens with expatriates who work abroad. True or False

TrUe

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

VALUES

General Motors' stand against apartheid in South Africa was based upon what came to be known as

the Sullivan principles.

What do scientists believe occurs as the result of the increasing amount of carbon dioxide in the atmosphere?

the carbon dioxide reflects heat back to the earth's surface and the earth's temperature increases

When a company acts in its own self-interest and abuses a resource that isn't owned by anyone, such as a river, it is participating in the

tragedy of the commons

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 Multiple choice question.

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? Multiple choice question.

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. This is unethical behavior that was a result of

unrealistic performance goalsssss

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

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

violated basic human rights.

Ethical issues arise in international business when

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

Young children are permitted to work in the manufacturing of soccer balls in some countries, but this would not be legal in the United States. Yet, a company wants to sell these soccer balls in the United States. This is one example of a(n) ______.

ethical dilemma

An amendment to the Foreign Corrupt Practices Act allowed for the use of ______ in which a business ensured that it will receive the standard treatment it ought to receive from a foreign government.

facilitating payments

After US companies objected that the FCPA would put them at a competitive disadvantage, the Foreign Corrupt Practices Act was eventually amended to allow for _____.

grease payments

Which of Hofstede's dimensions are likely to be found in nations where corruption is epidemic?

high power distance

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

The introduction of democratic elections in the _____ led to the eventual demise of the apartheid system in South Africa.

1990s

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

accept responsibility for your actions.

The Foreign Corrupt Practices Act was amended in order to

allow for "facilitating payments."

An American executive of a multinational home-furnishings chain finds that one of the company's production units in Philippines employs children to work in its factories. However, most of the children employed at the factory are orphans who will be sold as forced labor or pushed into prostitution if they lose their jobs. The executive finds that all the available alternatives seem ethically unacceptable. In this example, the American executive faces

an ethical dilemma.......

A policy of racial segregation and political and economic discrimination against nonwhites in South Africa was known as the

apartheid system.

_____ are the accepted principles of right or wrong governing the conduct of businesspeople.

business ethics

International businesses frequently have to address ethical issues that develop because

countries have different business laws, practices and regulations.

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 ethical obligations of a multinational corporation toward employment conditions, human rights, corruption, and environmental pollution are

not always clear-cut.

Rights such as freedom of association and freedom of speech are

not universally accepted.

The term _____ refers to the values and norms that are shared among employees of an organization.

organizational structure

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

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

speed money