int bus ch 5- Ethics, Corporate Social Responsibility, and Sustainability

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

accept responsibility for your actions.

International business frequently have to address ethical issues that develop because

countries have different business laws, practices and regulations.

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

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

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

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.)

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

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

-Personal ethics -Organizational culture -Leadership -Societal culture

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

Ethical dilemmas

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

apartheid system.

A company's organizational _____ reflects 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.

Scandinavia scores high on the individualism and uncertainty avoidance measures of societal culture. According to Hofstede's dimensions of societal culture, Scandinavia is more likely to engage in ______ business behavior than -- for example -- Russia.

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 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

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

more

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

leadership

An accurate description of the apartheid system in South Africa is that it

mandated segregation between whites and nonwhites.

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.

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.

Young children are permitted to work in the manufacturing of soccer balls in Pakistan, but this would not be legal in the United States. However, a company wants to sell these soccer balls in the United States to Kick-Rite Sports Equipment and Kick-Rite is not sure it wants to sell these particular soccer balls. This is an example of a(n) ______ dilemma.

ethical

Unrealistic performance goals can often only be attained by

taking shortcuts or behaving in an unethical manner.

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

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.

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

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

They have more substantive environmental regulations.

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

True

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.