Chapter 5 T/F
38. To establish moral intent, managers need to stand in the shoes of a stakeholder and ask how a proposed decision might impact that stakeholder.
FALSE
42. To foster ethical behavior, many businesses draft a code of ethics, which is an informal statement of the ethical priorities the company follows.
FALSE
5. Corporations can contribute to the global tragedy of the commons by not pumping pollutants into the atmosphere or dumping them in oceans or rivers.
FALSE
6. International businesses cannot gain economic advantages by making payments to corrupt government officials.
FALSE
8. The Foreign Corrupt Practices Act originally allowed "facilitating payments" to secure contracts that would not otherwise be secured.
FALSE
34. According to Rawls, inequalities are unjust even if the system that produces inequalities is to the advantage of everyone.
FALSE
37. A firm's internal stakeholders include customers, suppliers, and lenders.
FALSE
3. The Sullivan principles mandated that GM could operate in South Africa as long as the company complied with the apartheid laws.
FALSE
32. Utilitarian philosophy takes into consideration the principle of justice.
FALSE
33. Rights theories recognize that human rights and privileges are culturally determined and vary from country to country.
FALSE
1. Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople.
FALSE
10. Noblesse oblige refers to payments that ensure receiving the standard treatment that a business ought to receive from a foreign government.
FALSE
13. The ethical obligations of a multinational corporation toward employment conditions, human rights, environmental pollution, and the use of power are always clear-cut.
FALSE
16. Societal business ethics are divorced from personal ethics.
FALSE
20. Straw men approaches to business ethics offer appropriate guidelines for ethical decision making in a multinational enterprise.
FALSE
21. The utilitarian approach to ethics is a straw men approach to business ethics that has some inherent value, but is unsatisfactory in important ways.
FALSE
23. The Friedman doctrine is the belief that ethics are nothing more than a reflection of culture and therefore, a firm should adopt the ethics of the culture in which it is operating.
FALSE
26. Cultural relativism suggests that even if slavery is culturally acceptable in a country, a foreign firm operating in that country should avoid using slave labor.
FALSE
27. According to the righteous moralist, if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.
FALSE
28. The righteous moralist approach to ethics is typically associated with managers from developing and under-developed nations.
FALSE
29. An American firm that sets up production units in China is accused of releasing untreated chemical waste into water bodies. The manager of the firm defends the firm stating that, factories in China set up by French and British firms also release untreated chemical waste into water bodies. In this example, the manager is using the utilitarian approach to business ethics.
FALSE
11. In a business setting, noblesse oblige is taken to mean benevolent behavior that is the responsibility of successful enterprises.
TRUE
12. Social responsibility refers to the idea that businesspeople should favor decisions that have both good economic and social consequences.
TRUE
14. Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.
TRUE
15. Ethical dilemmas exist because many real-world decisions involve first-, second-, and third-order consequences that are hard to quantify.
TRUE
17. An individual with a strong sense of personal ethics is less likely to behave in an unethical manner in a business setting.
TRUE
18. A firm's organizational culture refers to the values and norms that are shared among employees of an organization.
TRUE
19. Employees in a business often take their cue from business leaders, and if those leaders do not behave in an ethical manner, they might not either.
TRUE
2. What is considered normal business practice in one country may be considered unethical in other countries.
TRUE
22. Milton Friedman's basic position is that the only social responsibility of business is to increase profits, so long as the company stays within the rules of law.
TRUE
24. Friedman's arguments suggest that improving working conditions beyond the level required by the law and necessary to maximize employee productivity will reduce profits and are therefore not appropriate.
TRUE
25. According to the cultural relativism point-of-view, a firm should adopt the ethics of the culture in which it is operating.
TRUE
30. Most moral philosophers see value in utilitarian and Kantian approaches to business ethics.
TRUE
31. The utilitarian approaches to ethics hold that the moral worth of actions or practices is determined by their consequences.
TRUE
35. Talking with prior employers regarding someone's reputation is a good way to discern a potential employee's ethical predisposition.
TRUE
36. Building an organization culture that places a high value on ethical behavior requires incentive and reward systems.
TRUE
39. Moral courage enables managers to walk away from a decision that is profitable but unethical.
TRUE
4. The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation.
TRUE
40. Companies can strengthen the moral courage of employees by committing themselves to not retaliate against employees who exercise moral courage.
TRUE
41. It is in the best interest of prospective employees to find out all they can about the ethical climate in an organization.
TRUE
43. Ethics officers are hired by many businesses to make sure that all employees are trained to be ethically aware and that ethical considerations enter the business decision-making process at all levels of the organization.
TRUE
7. The Foreign Corrupt Practices Act outlawed the paying of bribes to foreign government officials to gain business.
TRUE
9. Facilitating payments are also known as speed money or grease payments.
TRUE
