Chapter 5 Connect

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

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

leadership

Which approach to business ethics includes cultural relativism, the righteous moralist, and the naive immoralist?

Straw Men

General Motors adopted the ______ principles in order to continue business operations in South Africa during the apartheid movement.

Sullivan

Which company is contributing to the global tragedy of the commons?

Virtual-Day Inc. moved production to a South American country with lower environmental regulations and sends pollutants freely into the air.

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

An organization's code of ethics may be partially based on documents such as the UN Universal Declaration of ___ ___

human rights

Many companies develop a formal statement of primary values and ethical standards for employees and managers to follow. This is called a

code of ethics.

International business frequently have to address ethical issues that develop because

countries have different business laws, practices and regulations.

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

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

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.

James is an expatriate managing a tech support center in India. He is a firm believer in the minimum wage and treating employees fairly. Yet he sees his assistant manager firing an employee and hiring his neighbor to do the job at a lower rate. James confronts his assistant manager, claiming this behavior isn't right. He is displaying the ______ approach to ethics.

righteous moralist

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

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

violated basic human rights.

Which two theories provide the moral compass that is important when thinking through the ethical implications of decisions in a systematic way?

-Rawl's theory of justice -Rights theories

The first thing Brett's manager told him when he started working was that the company always considered the social consequences of any business decision. This is a reflection of _____.

CSR

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 because they forget to ask whether the decision or action they are making is ethical.

True

True or false: Companies can use psychological tests in the hiring process to help identify people who have a strong sense of personal ethics.

True

______ ethics measure actions on a cost-benefit scale.

Utilitarian

______ ethics hold that one should always respect the humanity in others and act in accordance with rules that could apply to everyone.

Kantian

What helps managers walk away from a decision that is profitable, but not ethical?

Moral courage

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

In an organization where personal ethics are important, which individual should be considered for a job opening?

The individual who has a disappointing interview but has glowing letters of recommendation that attest to his integrity.

Rights that are taken for granted in developed nations, such as freedom of association and freedom of speech are

not universally accepted.

What are the determinants of ethical behavior?

1. Personal Ethics 2. Decision-Making Processes 3. Organizational Culture 4. Unrealistic Performance Goals 5. Leadership 6. Societal Culture

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

Ethical dilemmas

What management position serves as the organization's internal control point for improprieties?

Ethics Officer

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

accept responsibility for your actions.

The belief that ethics are culturally determined and a firm should adopt the ethics of the country it is doing business in is

cultural relativism.

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.

Generon Inc. has moved its production to a new nation. It freely dumps its harmful waste in the rivers and causes environmental degradation there. In this case, Generon has contributed to the

global tragedy of the commons.

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) _____ strategy helps a company make good profits but does so without harming the environment.

sustainable

______ refers to the moral obligation to act in an honorable and benevolent manner.

Noblesse oblige

According to the text, which actions can managers take to ensure that ethical issues are considered in business decision making?

1. Favor hiring and promoting people with a well-grounded sense of personal ethics 2. Build an organizational culture and exemplify leadership behaviors that place a high value on ethical behavior 3. Put decision-making processes in place that require people to consider the ethical dimension of business decisions 4. Institute ethics officers in the organization 5. Develop moral courage 6. Make CSR a cornerstone of enterprise policy 7. Pursue strategies that are sustainable

The straw men approach to ethics is comprised of which four approaches?

1. Friedman Doctrine 2. Cultural Relativism 3. Righteous Moralist 4. Naive Immoralist

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

What theories concentrate on the fair distribution of economic goods and services in a society?

Justice

______ argued that it was ethically justified for General Motors to operate in South Africa so long as conditions of disobeying and promoting the abolition of apartheid laws were fulfilled.

Leon Sullivan

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

A person who follows the idea of _____ says that the multinational's home-country standards of ethics are the appropriate approach to follow in foreign countries.

a righteous moralist

Some ethics experts have proposed practical guides or ethical ______ to make ethical decisions in a systematic way.

algorithms

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

apartheid system.

In a business setting, noblesse oblige refers to _____ behavior considered to be the responsibility of successful enterprises.

benevolent

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.

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

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

One concept included in Kantian ethics that is not found in the utilitarian approach is the need to respect

people's dignity.

Starbucks' ethical sourcing policies are an example of a(n) ______ that benefits multiple stakeholders including shareholders, the environment, local communities, and customers.

sustainable strategy

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

Maria's boss asked her to do whatever it takes to secure a contract. Maria knows that paying a bribe would ensure that the contract would be signed, but walks away because she knows that while paying the bribe would ensure large profits, doing so would be unethical. Maria is demonstrating moral ______.

courage

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

mandated segregation between whites and nonwhites.

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

more

Celeste, a manager at a multinational investment firm located in Italy, knows that the company isn't reporting accurate profits to the government. She explains that this action is fine because all the multinational investment firms behave in the same manner. Celeste can be described as a(n) ______.

naive immoralist

The ______ believes that if a multinational firm sees that other firms are not following ethical norms, then they don't have to either.

naive immoralist

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.