DONE Chapter 5 MC

Speed money, or grease payments, are payments made to

D) ensure a business receives the standard treatment that it ought to receive.

Straw men approaches to ethics refer to those that are

A) inappropriate guidelines.

According to Milton Friedman, the only social responsibility of business is to

A) increase profits.

An American manager of a multinational company who is working in one of the company's production plants located in a foreign country, employs child labor at the manufacturing unit he oversees. When criticized as unethical, the manager argues that such actions are ethically defensible because every company in the country is doing it. What ethical approach is this manager using?

C) naive immoralist

The practice of "gift giving" between the parties to a business negotiation is considered right and proper in many Asian cultures. However, some Westerners view the practice as a form of bribery, and therefore unethical, particularly if the gifts are substantial. This demonstrates that

C) what is ethical depends on one's cultural perspective.

BlueLine Boxes moved its entire production operation to a foreign country, where the company was free to dump pollutants into the river located adjacent to the factory. In this scenario, BlueLine Boxes is contributing to

E) the global tragedy of the commons.

A(n) ________ is considered an external stakeholder of an organization.

B) customer

The apartheid system was based on a violation of

B) human rights.

Within organizational culture, ________ are abstract ideas about what a group thinks is good, right, and desirable.

C) values

While making a business decision, a manager who believes in rights theories is most likely to focus on

A) respecting fundamental human privileges.

According to the utilitarian perspective, the best decisions are those that

C) have greater social costs than benefits.

While Kyle realized that his company was allowed to conduct a 12-hour workday in the overseas facility he managed, he instead implemented two 8-hour shifts because he felt it was fundamentally the right thing to do. A rights theorist would say that Kyle is using ________ to make this choice.

C) his moral compass

Jonathan is the expatriate manager of his company's facility in Indonesia. He expects the exact same standards of working conditions, wages, and labor management in the Indonesian facility as practiced by the corporate office in the United States. His policy does not always lead to profits because of the vast cultural differences between the two nations. What straw men approach to ethics is Jonathan using?

C) righteous moralism

After TurboAir opened a facility in a foreign country, it learned that child labor was acceptable in that nation and agreed to hire a group of 15-year-old children as full-time employees. Which philosophical approach to ethics is TurboAir using?

A) Cultural relativism

What is a drawback of the utilitarian approach to business ethics?

A) It omits the consideration of justice.

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.

In the modern world, corporations often hasten the global tragedy of the commons by

A) moving production to locations where they are free to pump pollutants into the environment.

Rawls would agree with the idea that inequalities can be justified if they

D) are used to the advantage of everyone.

A multinational corporation that adopts the naive immoralist approach to ethics will most likely

D) believe that, in a host country, any action is ethically justified if everyone is doing it.

The straw man approach of righteous moralism is typically associated with managers from

D) developed nations.

GreenPlace is a manufacturing company that makes plant fertilizers. It has customers, investors, vendors, and competitors from all across the globe. Which of these GreenPlace business associates would be an internal stakeholder?

B) Selena, a prominent member of the top management of GreenPlace

Renata believes that it is the obligation of the state government to provide food and shelter for every citizen. Renata believes that government should act as

D) a moral agent.

Sun-Yip is the manager of an appliance manufacturing facility in a developing country. This facility does not meet the acceptable standards of the manufacturing facility in his home nation. He knows that demanding a better facility will raise the cost of the appliances that are mainly exported to other less-developed countries. However, he also realizes that by not demanding a better facility, the employees who work there are prone to serious health issues. Sun-Yip is facing

D) an ethical dilemma.

The biggest criticism of the righteous moralist approach to an ethical situation is that it

D) goes too far and not every situation can be approached relying on home-country standards.

Kendrik would like to hire just one company to construct the new highway overpass in Phoenix, but he can't imagine asking such a small crew to work many months in the hot conditions of the Arizona summer. Kendrik is relying on ________ to make his decision.

E) his moral imagination

When the employees at SuperCars learned that management had failed to pay suppliers for parts, the employees began to add more hours to their time cards even though they hadn't worked those extra hours. The employees felt that the company was sending a message that unethical decisions were acceptable. In this situation, the unethical choices of the employees are the result of

E) leadership choices.

The utilitarian philosophy for business ethics primarily focuses on

E) weighing the benefits, costs, and risks associated with a course of action.

Three Torque Inc., a U.S.-based multinational company, allows its managers to make facilitating payments in host countries to expedite government formalities. However, in countries where such payments are considered as unethical, the company restricts its managers from indulging in such activities. This behavior of the company illustrates the straw man approach of

B) cultural relativism.

What situation is most likely to lead to unethical behavior in a business setting?

B) expatriate managers working away from their ordinary social context and supporting culture

The Universal Declaration of Human Rights would agree that

B) it is unethical to employ child labor in sweatshops even if that happens to be common in some countries.

One way to reduce the pressure on managers to violate their personal ethics is to

B) keep managers psychologically and geographically close to the parent company.

The result of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions was to

B) make bribery of foreign officials a criminal offense but not consider facilitating payments a criminal offense.

The CEO of Gold Chip Software engages in corruption and uses his power in the company to enrich himself and his family members. Consequently, his employees also engage in the same behavior. In this case, the roots of unethical behavior can be traced to

B) organizational leadership.

Silver Meteorite Inc. is a multinational company whose home country considers grease payments illegal and unethical. The company has a zero-tolerance approach toward grease payments irrespective of any of its host nations' perspectives toward such payments. In this context, Silver Meteorite Inc. is following the approach to ethics known as

B) righteous moralist.

In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made legal payments to the government officials of the host nation. Such payments are typically referred to as

B) speed money

Justice theories primarily focus on

B) the attainment of fair and equitable distribution of economic goods and services.

The ________ approach to ethics holds that an action is judged desirable if it leads to the best possible balance of good consequences over bad consequences.

B) utilitarian

Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan concluded that following his principles

B) was not sufficient to ethically justify the existence of Western businesses in South Africa.

Rapid Removal Inc. operates in three different countries, and the CEO believes that the best approach to ethics is cultural relativism. How will this ethical approach affect the actions of Rapid Removal Inc.?

C) The business units of Rapid Removal Inc. will be empowered to adopt the standards of ethics followed in their respective host nations.

Johan is the manager of CycleUp and has agreed to build a new manufacturing plant in Argentina. He realizes this decision will cause him to shut down a small plant in Ohio, but he decides that since the new facility will cut his operating costs in half, that is worth more than closing a plant employing ten people. Which philosophical approach to ethics does this demonstrate?

C) Utilitarian

One way businesses can make sure they are hiring individuals with strong personal ethics is by

C) asking for letters of reference from the prospective employees.

The last step in ethical decision making involves

C) auditing of decisions.

Business ________ refers to accepted principles of right or wrong that govern the conduct of a businessperson, the members of a profession, or the actions of an organization.

C) ethics

Due to strict environmental standards in its home nation, Neptune Inc. has shifted its operations to developing nations. The firm has now been able to gain competitive advantage by avoiding costly pollution controls. This strategic move of Neptune Inc. would be considered

C) immoral.

Some contemporary moral philosophers view Kant's ethical philosophy as incomplete because his system has no place for

C) moral emotions and sentiments.

The term global commons refers to

C) natural resources from which everyone benefits but for which no one is specifically responsible.

Under John Rawls's concept of the veil of ignorance, people are imagined to be ignorant of their

C) particular characteristics such as race, sex, and nationality.

Over the past few years, three new factories have been built near Pleasantown. A four-acre area of land lies between these three factories and since no one "owns" this land, all three factories are using it as a landfill to dump waste products. The once-beautiful land is now encased in garbage. What phenomenon does this portray?

C) tragedy of the commons

Straight Arrow unloaded two tankers worth of toxic waste at a port in a foreign nation. Two hundred men and boys worked two days in their shorts and sandals to unload the barrels from the tankers for $5 a day. They were not told about the content of the barrels. Some observers felt that it was the obligation of not just the government, but also of Straight Arrow to ensure that no harm was done to the workers. These observers are most likely

D) rights theorists.

SolarCorp. won the bid to build an energy facility for a host country government. However, the execution of the contract has been delayed due to bureaucratic procedures in the less developed nation. In order to legally overcome this problem, SolarCorp. could resort to the payment of

D) speed money.

Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for their products. The market analysis team is busy comparing the benefits of increased wood production to the costs of deforestation and resulting environmental conditions. The company is using the ________ approach to make this ethical decision.

D) utilitarianism

The ________ supports the idea that everyone is imagined to be oblivious to all of his or her particular characteristics, such as, race, sex, intelligence, nationality, family background, and special talents.

D) veil of ignorance

Which of these companies has adopted unethical practices?

E) ClearLand Inc. sends its waste products for disposal to a developing nation because the pollution control laws in its home country are stricter than those in the developing nation.

Green Quantum Inc. has research and production units all across the globe. The company expects its expatriate managers to adopt the ethics propagated by the culture in which they operate their respective units. Even in situations when others consider certain actions as unethical, the company allows its managers to pursue such actions if they are permitted in the host nation. Green Quantum is following

E) cultural relativism.

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

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

Studies have found that facilitating payments ultimately increase the cost of doing business and as a result some companies have

C) adopted a zero-tolerance approach.

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

B) a firm dumping its chemical wastes directly into an ocean

The Sullivan principles resulted from Leon Sullivan's response to

B) apartheid laws.

The ________ step in ethical decision making helps businesspeople know if their decision process is working and if changes should be made to ensure greater compliance with a code of ethics.

B) auditing past decisions

Article 23 of the Universal Declaration of Human Rights implies that it is unethical to employ child labor in sweatshop settings and pay less than subsistence wages, even if that happens to be common practice in some countries. This is in contrast to

B) cultural relativism.

In its home country, Barat's Boxes routinely uses grease payments to local officials to expedite overseas shipments. It has decided to open a plant in the United States and has determined that it would not offer any facilitating payments to U.S. officials. Barat's Boxes behavior illustrates the straw man approach of

B) cultural relativism.

What practice should a company avoid to ensure ethical decision making?

D) placing its economic interests before its moral principles

CopperTech Inc. believes that the sole purpose of its existence is to maximize profits for its stockholders. The firm has often been criticized for not engaging in any social investments. However, the firm has been praised for abiding by the laws while earning profits. Which philosophical approach to ethics does this demonstrate?

A) Friedman doctrine

The ________ is a straw man approach to business ethics.

A) Friedman doctrine

Who asserts that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage?

A) John Rawls

According to ________, people should be treated as ends and never purely as means to the ends of others.

A) Kantian ethics

A righteous moralist is most likely to claim that

A) a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

Jalen is the ethics officer at TurboLife. His responsibilities would include

A) auditing decisions to make sure they are consistent with the company's moral principles.

In a business setting, the term noblesse oblige refers to

A) benevolent behavior that is considered the responsibility of successful enterprises.

The phrase "when in Rome, do as the Romans" is associated with

A) cultural relativism.

The ________, developed by Rawls, indicates that inequalities are justified if they benefit the position of the least-advantaged members of society.

A) difference principle

Kantian philosophy would view ________ as an ethical violation.

A) employing people to work at sweatshops

In a business setting, managers sometimes do not realize they are behaving unethically, primarily because they

A) fail to take into account the ethical dimension of business decisions.

A moral compass is used by managers to

A) help them navigate through difficult ethical dilemmas.

When thinking through an ethical issue, the first step you should take is to

A) identify which stakeholders a decision would affect and in what ways.

The veil of ignorance, a conceptual device designed by John Rawls, supports

A) impartiality in justice.

Bethany works for FastFashion Inc. which has set the same sales target for all employees in their 550 stores across the globe. The company fails to take into account any environmental constraints which might hamper sales and to avoid being penalized, employees often falsify their sales reports. What is triggering the employees' unethical behavior?

A) unrealistic performance goals

Bryan works as a salesman for Jumbo Corp. Last year his sales target was $3 million and this year in an aggressive bid for growth, the company increased the sales quota for all its salespeople to $5 million, although the market for Jumbo Corp's product has slowed. In order to meet his target, Bryan bribed an official of a potential customer. The roots of his unethical behavior can be traced to

A) unrealistic performance goals.

________ is the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumption in favor of decisions that have both good economic and social consequences.

D) Corporate social responsibility

In stating that all human beings are born free and equal in dignity and rights, and that they are endowed with reason and conscience and should act toward one another in a spirit of brotherhood, Article 1 of the Universal Declaration of Human Rights echoes

D) Kantian ethics.

Which of these employees is facing an ethical dilemma?

D) Salena is responsible for deciding whether she should upgrade the manufacturing unit with new machines and reduce costs or retain the impoverished manual labor force.

Financial Resources Inc. paid a sum of $50,000 to an official of a foreign government to ensure that the company obtained exclusive preferential treatment. The $50,000 can be classified as

D) a bribe.

In a business setting, which of these practices is most likely to be considered unethical?

D) making sure that key business decisions make good economic sense irrespective of their social costs and risks

The term ________ can be described as standing in the shoes of a stakeholder and asking how a proposed decision might impact that stakeholder

D) moral imagination