Global Dim Chapter 5
Which well-known advocate for human rights was elected president of South Africa following the apartheid movement in South Africa?
Nelson Mendela
______ refers to the moral obligation to act in an honorable and benevolent manner.
Noblesse oblige
Today, Freedom House ranks Myanmar as _____.
Partly Free
Which approach to business ethics includes cultural relativism, the righteous moralist, and the naive immoralist?
Straw men
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
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
A(n) ______ strategy is a conscious and proactive use of methods that do not harm the planet, people or profits while leaving a positive impact.
Sustainable
What is an accurate description of developed nations in terms of the environment?
They have more substantial environmental regulations.
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
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
What are two examples of external stakeholders?
suppliers customers
"Everyone is doing it" is not sufficient to prove that an action is ethically justified and is a criticism against _____.
the naive immoralist
According to Milton Friedman, what is the social responsibility of a business?
to increase profits
When a company acts in its own self-interest and abuses a resource that isn't owned by anyone, such as a river, it is participating in the
tragedy of the commons.`
Which maxim accurately summarizes the concept of cultural relativism?
when in Rome, do as the Romans do
Ethical Strategy
A business strategy that does not violate the accepted principles of right or wrong governing the conduct of businesspeople is called a(n)
Which of these corporate strategies would be considered a sustainable strategy?
A strategy designed to reduce CO2 emissions
According to the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the bribery of a foreign public official is considered a(n) _____.
Criminal offense
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 straw men approach to ethics is comprised of four approaches. What are those four approaches?
Cultural relativism Righteous moralist Friedman doctrine Naive immoralist
Organizational _____ is the name given to the values and norms that are shared among employees of an organization.
Culture
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 high on masculinity and power distance measures.
Ethical
When the Morrison Manufacturing company was fined by the US government for the amount of carbon dioxide it released into the air, it decided to move its business to Thailand where it knew there were fewer restrictions on air emissions. Environmentalists would most likely question the ______ implications of this decision.
Ethical
______ are situations where none of the available alternatives seems morally acceptable.
Ethical Dilemmas
What management position specifically serves as an organization's internal control point for improprieties?
Ethics officer
An amendment to the Foreign Corrupt Practices Act allowed for the use of ______ in which a business ensured that it will receive the standard treatment it ought to receive from a foreign government.
Facilitating payments
Which act outlaws the payment of bribes to foreign government officials to gain businesses?
Foreign Corrupt Practices Act
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
According to the Sullivan principles, what two conditions were GM required to fulfill in order to continue to operate in South Africa?
GM should do everything possible to promote the abolition of apartheid laws. GM could not obey the apartheid laws in its own South African operations.
After US companies objected that the FCPA would put them at a competitive disadvantage, the Foreign Corrupt Practices Act was eventually amended to allow for _____.
Grease payments
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 doesn't do this because she knows that while paying the bribe would ensure large profits, doing so would be unethical. Maria is demonstrating ______.
Moral Courage
What characteristic helps managers walk away from a decision that is profitable, but not ethical?
Moral courage
Marion, 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. Marion's behavior reflects the ideas of a _____.
naive immoralist
The accepted standards or ways of doing things in a particular setting are known as
norms
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
The managers of ABC Manufacturing are struggling to meet their increased quota. They decide to eliminate two quality control steps in the manufacturing process. This is unethical behavior that was a result of
unrealistic performance goals.
The ____ of a company reflect what the company believes to be good, right, and desirable.
values
What human characteristic did Immanuel Kant use as the basis of his ethical theory?
dignity
Giving people that which they are due is an example of a(n) ______ distribution.
just
What are the next four steps a company should take in the decision-making process once it has identified its stakeholders? List the steps in the correct order, starting with step two at the top of the list.
1. Judge the ethics of the proposed decision 2. Establish moral intent 3. engage in ethical behavior 4. audit the decisions
The introduction of democratic elections in the _____ led to the eventual demise of the apartheid system in South Africa.
1990s
What are two problems with the utilitarian approach to business ethics?
Accurately weighing the costs and benefits of a given situation Dealing with unjust actions even if they benefit the majority of people
When Byron Manufacturing decided to recycle component parts, it not only saved the company money, it also limited the amount of waste it sent to landfills. This decision reflects the idea of _____.
CSR
Under Rawls' ______ principle, the long-run expectations of the least-advantaged social group need to be maximized.
Difference
According to Rawls's view of justice, when people operate under a veil of ignorance, they would unanimously agree on two fundamental principles of justice. What are these two principles?
Each person is permitted the maximum amount of basic liberties compatible with a similar liberty for others. Once basic liberty is ensured, inequality in basic social goods is to be allowed only if such inequalities benefit everyone.
Because ______ violations were so prevalent in Myanmar in the 1990s, many Western companies could no longer condone doing business there.
Human Rights
According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making?
Implement decision-making processes that consider ethical aspects of business decisions. Build an organizational culture that values ethical behavior. Favor hiring and promoting of people with a sense of personal ethics.
The justice theory attributed to _____ emphasizes the socially just distribution of goods in society.
John Rawls
What theories concentrate on the fair distribution of economic goods and services in a society?
Justice
______ ethics holds that one should always respect the humanity in others and act in accordance with rules that could apply to everyone.
Kantian
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
James is a manager from Tennessee working at a tech support center in India. He is a firm believer in the minimum wage and treating employees fairly. Yet he see his assistant manager firing one employee and hiring his neighbor at a lower rate. James confronts his assistant manager, claiming this behavior isn't consistent with home-country standards. Which philosophical approach to ethics does James represent?
Righteous moralist
Certain theories accept that there are rights, both positive and negative, that all humans have simply because they are human. These are known as ______ theories.
Rights
What are four of the determinants of ethical behavior?
Societal culture Organizational culture Leadership Personal ethics
Which leader behavior is most likely to promote a strong ethical culture in an organization?
The boss who consistently demonstrates strong personal ethics in all of his dealings with clients.
What is one thing a company must have in order to build an organizational culture that emphasizes ethical behavior?
The business must explicitly articulate values that emphasize ethical behavior.
In an organization where personal ethics are important, which individual should be hired?
The individual who has a disappointing interview despite having verified glowing letters of recommendation that attest to his integrity.
The Universal Declaration of Human rights was adopted by the _____ and is a global expression of what many believe are the rights to which all human beings are inherently entitled.
United Nations
______ ethics measure actions on a cost-benefit scale.
Utilitarian
The police have located a suspect in a dirty bomb threat to a major city. They plan to do whatever is necessary to locate the bomb -- including torture. Which approach to ethics are the police using in this situation?
Utilitarianism
What is the focus of the justice theories?
a fair distribution of economic goods and services
The Universal Declaration of Human Rights has been ratified by _____.
almost every country
According to Rawls's theory of justice, all economic goods and services should be distributed equally except when _____.
an unequal distribution would provide everyone with an advantage
Which step in the decision-making process is often overlooked by companies?
audit the decisions
To ensure that the business has appropriate legal compliance programs and acts in an ethical manner, some firms now have created a position for a(n) ______ officer.
ethics
In order to expedite routine government actions, what was specifically excluded from the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions?
facilitating payments
Companies that decide to relocate their production activities to a nation where there are fewer environmental regulations which allows the company to dump production waste into rivers are contributing to the _____.
global tragedy of the commons
Which of Hofstede's dimensions are likely to be found in nations where corruption is epidemic?
high power distance
The righteous moralist person says that a multinational's _____ country standards of ethics are the appropriate approach to follow in foreign countries.
home
The main criticism of the righteous moralist approach is that
its supporter go too far. The home-country standards are not always applicable,
A(n) ______ distribution is one that is considered fair and equitable.
just
The _____ believes it is always the appropriate strategy to adopt home-country ethical standards.
righteous moralist
How do facilitating payments benefit a company?
smooths the progress of services to which the business is entitled
The idea that business people should favor decisions that have both good economic and social consequences is called corporate
social responsibility
A payment which ensures that a business receives the standard treatment that it ought to receive from a foreign government is known as
speed money.
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
