Chapter 5

International businesses frequently have to address ethical issues that develop because...

Countries have different business laws, pracitces, and regulations

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

Ethics Officer

T/F: Kantian Ethics hold that the moral worth of actions or practices is determined by their consequences.

False

The accepted standards or ways of doing things in a particular setting are known as.....

Norms

Organizational _______ is the name given to the values and norms that are shared among employees of an organization.

Culture

Which two of the following are examples of external stakeholders?

Customers and Suppliers

Which strategy is considered a sustainable strategy?

A strategy designed to reduce CO2 emissions

T/F: Using Hofstede's dimensions of social culture, research has shown that companies headquartered in cultures where masculinity and power distance are important attributes were more likely to emphasize the importance of behaving ethically.

False

Carla questioned the ethics of her company in hiring an Indonesian firm to manufacture its clothing products. She knew that women who worked in these sewing factories were forced to work long hours in substandard conditions and she knew she wouldn't like to work that way. Carla is demonstrating the use of ________.

Moral imagination

The idea that business people should favor decisions that have both good economic and social consequences is corporate...

Social responsibility

Young children are permitted to work in the manufacturing of soccer balls Pakistan, but this would not be legal in the United States. Yet, a company wants to sell the soccer balls in the United States. This is one example of a(n) .....

Ethical dilemma

T/F: Carl is a naive immoralist, which means he believes a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

False

Which of the following statements is true about the righteous moralist approach to ethics?

The righteous moralist approach is typically associated with managers from developed nations

T/F: Apple has a formal statement of the ethical priorities that employees must follow. This is called a code of ethics.

True

As a philosophy for business ethics, utilitarianism focuses attention on the need to...

Weigh carefully all social benefits and costs of a business action

Which step in decision-making process is often overlooked by companies?

Audit the decision

Jeff is a manager at a toy manufacturing facility. Which of these situations demonstrate how Jeff uses his moral imagination?

Jeff decided not to outsource parts to a company in Asia because he knew the company used small children as laborers

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

Rights theories and Rawl's theory of justice

The theory that states that businesses should not incur social expenditures unless required by law or required for the efficient operations of a business is the ________.

Friedman Doctrine

Jennifer doesn't understand why the management team decided to continue supporting the supplier in India when it was obvious that a better product at a better price was available from a supplier in Indonesia. According to the text, what is the best starting point to understand this decision?

Understand the process the management team uses to makes decisions

T/F: Suzanne was working in Rwanda for a multinational firm, and she was told that she would need to bribe government officials if she wanted to get her raw materials on time. She was uncomfortable with this as she had always felt bribes were unethical. This kind of pressure sometimes happens with expatriates who work abroad.

True

Heidi told her husband that there was no possible way she could meet her monthly sales goal now that her manager had doubled it. She decided the only way to make the new goal was to add 5% to every sales order and hide this cost under "personal needs" when she submitted her report. What is causing Heidi to act in this unethical manner?

Unrealistic performance goals

The ______ of a company reflect what the company believes to be good, right, and desirable.

Values

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

Benevolent

____________ are the accepted principles of right or wrong governing the conduct of businesspeople.

Business ethics

Steps to the decision-making process

1. Identify stakeholder's decisions 2. Judge the ethics of strategic decisions 3. Establish moral intent 4. Engage in ethical behavior 5. Audit decisions

Which four of the following are determinants of ethical behavior?

1. Societal culture 2. Personal ethics 3. Organizational culture 4. Leadership

Individuals or groups who work for or own the business are referred to as _________ stakeholders.

Internal

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 countries which score on masculinity and power distance measures.

Ethical

Josiah wanted to move his company to a state with lower taxes, but he was concerned about how that impact his employees. Josiah is demonstrating the concept of....

Moral imagination

What is the correct definition of business ethics?

The principles that govern the proper conduct and moral decisions that arise in a business environment

From an international business perspective, some argue that what is ethical....

Depends on one's cultural perspective

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

Accept responsibility for your actions

T/F: Building an organizational culture that places a high value on ethical behavior requires incentive and reward systems that reward people who engage in ethical behavior.

True

Which of the following statements explains how a manager's personal ethics might be challenged in international transactions?

Expatriate managers may face more pressure to violate their personal ethics

The ethical obligations of a multinational Corporation toward employment conditions, human rights, corruption, and environmental pollution are......

Not always clear cut

The All-Emissions Corporation moved its automobile production plant to a country in South America because it could freely dump waste products into the nearly ocean. By doing this, the corporation was contributing to the concept of....

The tragedy of the commons

T/F: Business people may behave unethically because they forgot to ask whether the decision or action they are making is ethical.

True

T/F: The convention on combating bribery of foreign public officials in international business transactions obligates member states to make payments to expedite routine government action a criminal offense.

False

The Foreign Corrupt Practices Act was amended in order to....

Allow for "facilitating payments"

An American executive of a multinational home-furnishings chain finds that one of the company's production units in Philippines employs children to work in its factories. However, most of the children employed at the factory are orphans who will be sold as forced labor or pushed into prostitution if they lose their jobs. The executive finds that all the available alternatives seem ethically unacceptable. In this example, the American executive faces.....

An ethical dilemma

The practice of "gift-giving" between the parties in a business negotiation is considered right and proper behavior in many Asian cultures, while some Westerners You the practice as a form of bribery. What is this an example of?

An ethical dilemma

According to Rawl's just distribution theory, all economic goods and services should be distributed equally except when....

An unequal distribution would work to everyone's advantage

Maria's boss has 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

The term ___________ refers to the values and norms that are shared among employees of an organization

Organizational culture

A strategy that not only helps a multinational firm make a good profit, but does so without harming the environment while simultaneously ensuring that the company acts in a socially responsible manner toward its stakeholders is referred to as a(n) ________ strategy.

Sustainable

General Motors' stand against apartheid in South Africa was based upon what came to be known as....

The Sullivan principles