Midterm Prep TRUE/FALSE

A firm's organizational culture refers to the values and norms that are shared among employees of an organization

True

An individual with a strong sense of personal ethics is less likely to behave in an unethical manner in a business setting

True

Corporate social responsibility refers to the idea that managers should consider the social consequences of economic actions when making business decisions

True

Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable

True

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

Governments do not always act in the national interest when they intervene in the economy; politically important interest groups often influence them

True

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

Patents, copyrights, and trademarks establish ownership rights over intellectual property

True

Some corporations contribute to the global tragedy of the commons by pumping pollutants into the atmosphere or dumping them in oceans or rivers

True

The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market.

True

What is considered normal business practice in one country may be considered unethical in other countries

True

A company needs to be of a large size to facilitate, and benefit from, the globalization of markets.

False

According to supporters of free trade, as countries get richer they commit greater violation of environmental and labor regulations

False

The Foreign Corrupt Practices Act does not allow for grease payments

False

The United Nations has focused on policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties

False

The World Trade Organization (WTO) does not have the power to impose trade sanctions

False

The ethical obligations of a multinational corporation toward employment conditions, human rights, environmental pollution, and the use of power are always clear-cut

False

The objective of the government in a command economy is to encourage free and fair competition between private producers

False

To facilitate international business, property rights are defined in a consistent way across countries

False