MNGT 375 Chapter 5

Which of the following straw men approaches to business ethics is best summarized by the maxim "When in Rome, do as the Romans"? A. Cultural relativism B. Just distribution C. Kantian ethics D. Righteous moralist E. Sullivan principles

A. Cultural relativism

Which of the following do moral theorists argue form the basis for the moral compass that managers should navigate by when making decisions that have an ethical component? A. Fundamental human rights B. Collective goals C. Interests of the state D. Fundamental duties E. Employment practices

A. Fundamental human rights

What was the Chinese subsidiary's reaction to the potential criminal charges? A. Stopping questionable activity B. Continuing business as usual C. Pleading guilty D. Ceased working with Crime-ler E. Claiming no knowledge of crime

A. Stopping questionable activity

When an employee says no to a supervisor because what he or she was asked to do was unethical, it exhibits the employee's: A. moral courage B. organizational citizenship C. ethical dilemma D. cross-cultural literacy E. cultural relativism

A. moral courage

Ethics

Accepted principles of right or wrong that govern the conduct of a person, members of a profession, or the actions of an organization

Check all that apply - The most common ethical issues in business involve: A. Employment practices B. Human rights C. Environmental regulations D. Corruption E. Moral obligations of multinational companies

All of these

Which of the following best exemplifies the global tragedy of the commons? A. A firm exploiting the weak employment standards in a host nation B. A firm dumping its chemical wastes directly into an ocean C. A firm exploiting the weak intellectual property rights in a developing nation D. A neighboring country opposing the introduction of a free trade area E. A country denying its citizens basic human rights

B. A firm dumping its chemical wastes directly into an ocean

A company's formal statement of ethical priorities is called its A. Mission statement B. Code of ethics C. Code of values D. Organizational culture

B. Code of ethics

How long did the formal investigation of Crime-ler take? A. Eight days B. Eight years C. Eight months D. There was no official inquiry E. A week after the discovery

B. Eight years

Which of the following typically focus on the attainment of fair and equitable distribution of economic goods and services? A. Utilitarian approaches B. Justice theories C. Rights theories D. Straw men approaches E. Sullivan principles

B. Justice theories

Which of the following is a root cause of unethical behavior in business? A. Strong sense of personal ethics B. Pressure to meet unrealistic performance goals C. Societal culture with low power distance D. Management's ability to see beyond economic benefits E. Organization culture that emphasizes business ethics

B. Pressure to meet unrealistic performance goals

Which philosophy claims that a company's home-country standards of ethics are the appropriate ones to follow in foreign countries? A. Cultural relativism B. Righteous moralist C. Friedman doctrine D. Naïve immoralist

B. Righteous moralist

An economic argument put forth for speed money is that it A. cuts corners on quality. B. removes bureaucracy. C. creates growth for all nations. D. helps gain exclusive contracts. E. lowers the prices of goods.

B. removes bureaucracy.

Justice Theories (John Rawls)

Ethical approaches that focus on the attainment of a just distribution of economic goods and services - Veil of ignorance

Sustainability Strategies

Help the MNC make profits without harming the environment

Rights Theories

Human beings have fundamental rights and privileges which transcend national boundaries and cultures

External Stakeholders

Individuals or groups that have some claim on a firm such as customers, suppliers, and unions

Kantian Ethics

People should be treated as ends and never purely as means to the ends of others

Internal Stakeholders

People who work for or own the business such as employees, directors, and stockholders

According to the Friedman Doctrine: A. businesses should undertake social expenditures beyond those that are mandated by the law. B. the only social responsibility of business is to increase profits, so long as the company stays within the rules of law. C. the best business decisions are those that produce the greatest good for the greatest number of people. D. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. E. people should be treated as ends and never purely as means to the ends of others.

B. the only social responsibility of business is to increase profits, so long as the company stays within the rules of law.

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions A. Is recognized by all countries B. Allows bribing C. Allows facilitating payments D. Bans bribing & speed money

C. Allows facilitating payments (aka: speed money, grease money)

The act that outlaws paying of bribes to foreign government officials to gain business is known as A. Money Laundering Act B. Non-Payment Act C. Foreign Corrupt Practices Act D. Prevention of Corruption Act E. International Corruption Act

C. Foreign Corrupt Practices Act

Which of the following asserts that 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? A. Kantian approach B. Cultural relativism C. Naive immoralism D. Righteous moralism E. Friedman doctrine

C. Naive immoralism

''Facilitating payments'' A. are legal in many countries. B. are seen as inefficient. C. are also known as speed money. D. gives a bus exclusive rights. E. removes competition.

C. are also known as speed money. (grease money)

Which of the following does not contribute to unethical behavior by managers? A. Unrealistic performance goals B. Leadership C. Organizational culture D. Restrictions on bribes

D. Restrictions on bribes

Which of the following is typically associated with managers from developed nations, and claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries? A. Sullivan principles B. Cultural relativism C. Naive immoralism D. Righteous moralism E. Friedman doctrine

D. Righteous moralism

Multinational companies are concerned with ethics is all of the following areas except A. Employment practices B. Human rights C. Environmental regulations D. Trade regulations

D. Trade regulations

Who are considered internal stakeholders of a company? A. Suppliers B. Competitors C. Lenders D. Customers E. Employees

E. Employees

Which of the following are payments to ensure receiving the standard treatment that a business ought to receive from a foreign government, but might not due to the obstruction of a foreign official? A. Provisional payments B. Social exchanges C. Deferred payments D. Kickbacks E. Grease payments

E. Grease payments (speed money, facilitating payments)

The code of ethics of a company draws heavily upon documents such as the UN Universal Declaration of Human Rights, which itself is grounded in Kantian and rights-based theories of moral philosophy. In the context of this information, this company is most likely to: A. restrict its employees from joining a trade union B. set unrealistic performance goals for its employees C. promote employees on the sole basis of their particular characteristics such as race, sex, nationality, and class D. make its employees work under unfavorable working conditions E. respect the dignity of an individual and the right of employees to freedom of association

E. respect the dignity of an individual and the right of employees to freedom of association

Moral Intent

The degree of commitment to the moral course of action

Corporate Social Responsibility

The idea that business people should take the social consequences of economic actions into account when making business decisions

True or False: Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.

True

Which of the following holds that the moral worth of actions or practices is determined by their consequences, and is committed to the maximization of good and the minimization of harm? A. Cultural relativism B. Kantianism C. Utilitarianism D. Righteous moralism E. Friedman doctrine

Utilitarianism