Internation Management Final Review ch 5

According to the _____ point-of-view, a firm should adopt the ethics of the culture in which it is operating. A. cultural relativism B. righteous moralist C. naïve immoralist D. utilitarian approach

a

Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable. a.TRUE b.FALSE

a

Ethical dilemmas exist because many real-world decisions involve: A. first-, second-, and third-order consequences that are hard to quantify. B. people from different cultures. C. employers and employees. D. people from different multinational firms.

a

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. a.TRUE b.FALSE

a

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. a.TRUE b.FALSE

a

Social responsibility refers to the idea that businesspeople should favor decisions that have both good economic and social consequences. A. TRUE B. FALSE

a

Which of the following observations about the Foreign Corrupt Practices Act is true? A. The act outlawed the paying of bribes to foreign government officials to gain business. B. There is enough evidence that it put U.S. firms at a competitive disadvantage. C. The act originally allowed for "facilitating payments." D. The Nike case was the impetus for the 1977 passage of this act.

a

_____ recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures. A. Rights theories B. Utilitarians C. Cultural relativists D. Kantian ethics

a

Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors in its subsidiary, even though it is against the multinational's home-country ethics. Which of the following approaches to business ethics would justify the actions of the multinational company? A. Righteous moralist B. Cultural relativism C. Deontological ethics D. Kantian ethics

b

The Foreign Corrupt Practices Act originally allowed "facilitating payments" to secure contracts that would not otherwise be secured. A. TRUE B. FALSE

b

The utilitarian approach to business ethics suggests that: A. people should be treated as ends and never purely as means to the ends of others. B. the moral worth of actions or practices is determined by their consequences. C. people have dignity and need to be treated as such. D. human beings have fundamental rights and privileges that transcend national cultures.

b

To foster ethical behavior, many businesses draft a code of ethics, which is an informal statement of the ethical priorities the company follows. a.TRUE b.FALSE

b

Which of the following ethical theories explicitly rejects the idea that businesses should undertake social expenditures beyond those mandated by the law and required for the efficient running of a business? A. The naive immoralist B. The Friedman doctrine C. Cultural relativism D. The righteous moralist

b

Which of the following is an example of an external stakeholder? A. Employees B. Customers C. Stockholders D. The board of directors

b

According to the _____ approach, the best decisions are those that produce the greatest good for the greatest number of people. A. naive immoralist B. Friedman doctrine C. Kantian ethics D. utilitarian

d

According to the naive immoralist, A. a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. B. the social responsibility of business is to increase profits, so long as the company stays within the rules of law. C. ethics are nothing more than the reflection of a culture. D. if firms in a host nation do not follow ethical norms then the manager of a multinational should also not follow ethical norms there

d

Justice theories of business ethics focus on: A. the moral worth of actions or practices. B. minimum levels of morally acceptable behavior. C. fundamental rights and privileges that transcend national boundaries. D. the attainment of an equitable distribution of goods and services.

d

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 is known as: A. moral relativism. B. noblesse oblige. C. ethical dilemma. D. social responsibility.

d

_____ arguments suggest that improving working conditions beyond the level required by the law and necessary to maximize employee productivity will reduce profits and are therefore not appropriate. A. Rawls' B. Kantian C. Sullivan's D. Friedman's

d

_____ enables managers to walk away from a decision that is profitable but unethical. A. Utilitarianism B. Righteousness C. Just distribution D. Moral courage

d

A firm's _____ include customers, suppliers, and lenders. A. internal stakeholders B. clients C. external stakeholders D. community

c

A(n) _____ asserts that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either. A. Kantian ethicist B. righteous moralist C. naive immoralist D. utilitarian ethicist

c

According to the Friedman doctrine: A. ethics are nothing more than the reflection of culture. B. a multinational's home-country standards of ethics are inappropriate to follow in foreign countries. C. businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business. D. if a manager of a multinational sees that firms from other nations are not following environmental legislation in a host nation, that manager should not either.

c

Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because of which of the following? A. They are surrounded by their ordinary social context and supporting culture. B. They are psychologically and geographically closer to the parent company. C. They may be based in a culture that does not place the same value on ethical norms important in the manager's home country. D. They may be surrounded by local employees who have more rigorous ethical standards.

c

The Kantian approach to ethics suggests that: A. human beings have fundamental rights and privileges that transcend national boundaries. B. the moral worth of actions or practices is determined by their consequences. C. people should be treated as ends and never purely as means to the ends of others. D. ethics are nothing more than the reflection of culture.

c