International Busines Ch 5

What are four of the determinants of ethical behavior?

- Societal culture - Organizational culture - Leadership - Personal ethics

The introduction of democratic elections in the ______ led to the eventual demise of the apartheid system in South Africa.

1990's

A business strategy that does not violate the accepted principles of right or wrong governing the conduct of businesspeople is called a(n) ______ strategy

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

Which aspect of international business convinced Leon Sullivan to lead the way in eliminating apartheid in South Africa?

Ethics

Kantian ethics hold that the moral worth of actions or practices is determined by their consequences

False

Rico 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

True or False: The study in the text confirms that corruption had a small but positive impact on a country's economic growth rate

False

True or false: Organizational culture refers to the system used to create job levels and hierarchies within a company

False

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

Which act outlaws the payment of bribes to foreign government officials to gain businesses?

Foreign Corrupt Practices Act

Roboton Inc. moved its production facilities to a new nation where it freely dumps its harmful waste in the rivers and causes environmental degradation. In this case, Roboton has contributed to the

Global tragedy of the commons

What was taking place in South Africa when the apartheid system was dominant?

There was mandated segregation between whites and blacks/nonwhites

A company that has a formal statement of the ethical priorities that employees must follow has established a code of ethics

True

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

True or false: Businesspeople may behave unethically simply because they forget to ask themselves whether the decision or action they are making is ethical

True

True or false: The decision-making process is one of the determinants of ethical behavior

True

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

Values

The effects of corruption on a company's economic growth have resulted in many multinationals to adopt

a zero-tolerance policy

Our personal ethics tell us it is wrong to cheat on a test. Conversely, it is right to

accept responsibly for your actions

The Foreign Corrupt Practices Act was amended in order to

allow for "facilitating payments."

What term refers to the accepted principles of right or wrong governing the conduct of businesspeople?

business ethics

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

culture

Ethical issues arise in international business when

environmental regulations in host nations are less stringent than those in the home country

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

norms

Today, Freedom House ranks Myanmar as __.

not free

Rights such as freedom of association and freedom of speech are

not universally accepted

The basic principles and values that govern interactions between individuals are known as

personal ethics

As demonstrated by the Nike example in the text, which working conditions situation is generally MOST preferred?

requiring good conditions in home and foreign operations even when this results in a smaller profit margin

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

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

the Sullivan principles

What do scientists believe occurs as the result of the increasing amount of carbon dioxide in the atmosphere?

the carbon dioxide reflects heat back to the earth's surface and the earth's temperature increases

Garrett Hardin described how herders shared common land for grazing. It was advantageous to the poor to place more and more livestock on the common land because it would mean more income. Why did these actions result in ultimate tragedy?

the commons were overgrazed and eventually destroyed by the livestock

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

the tragedy of the commons

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 make decisions

TimeTurner Corp. is a company based in the United States that manufactures luxury wrist watches. By western standards, if the company uses sweatshop labor to make these watches it is most likely to be considered

unethical

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

Garrett's company believes minimizing air emissions is the right thing to do, and it will not contract with a supplier who thinks otherwise. This idea about what the company believes to be right is an example of a

value

A system of moral principles that govern the conduct of an individual is known as

ethics

After US companies objected that the Foreign Corrupt Practices Act would put them at a competitive disadvantage, the FCPA was eventually amended to allow for ______.

grease payments

Which of Hofstede's dimensions are likely to be found in nations where corruption is rampant?

high power distance

Bennie is managing a call center in Italy. He is finding it difficult to motivate employees to meet their call volume using the standard tactics employed in the United States. Finally, Bennie is told that if he starts offering "daily cash bonuses" to employees, they will meet their targets. He is torn between doing what he believes is right and meeting his numbers. Bennie is facing a challenge to ______

his personal ethics

Because ______ violations were so prevalent in Myanmar in the 1990s, many Western companies could no longer condone doing business there

human rights

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 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

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

Sharon is visiting her company's manufacturing subcontractor in Pakistan. She is disturbed when she notices children working on the machinery in a room with no air conditioning and little access to water, but she also knows these children are probably supporting their families. This is an example of a(n) ______.

ethical dilemma

A pesticide manufacturer has moved its production facility to a foreign country where it is free to dump pollutants into the local waterways. By doing so, this company is contributing to

the global tragedy of the commons

International businesses frequently have to address ethical issues that develop because

countries have different business laws, practices, and regulations

In the 1980s, Western businesses questioned the ethics of operating in South Africa because the apartheid system in place there

violated basic human rights

The managers of ABC Manufacturing are struggling to meet their increased quota. They decide to eliminate two quality control steps in the manufacturing process in order to meet the demand. This is unethical behavior that was a result of

unrealistic performance goals

A policy of racial segregation and political and economic discrimination against blacks/nonwhites in South Africa was known as the

apartheid system

Trevor told his foreign-born roommate that it was socially acceptable in the United States to question a professor if you believed he or she was saying something that was not true. This example of a social rule that governs behavior demonstrates the idea of a

norm

Maria has decided to send a letter to her state representative regarding the ten industrial plants in her community that release toxic emissions into the air which could create health problems in the future for families living in the area. What phenomenon is Maria concerned with?

tragedy of the commons

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

What is an accurate description of developed nations in terms of the environment?

They have more substantial environmental regulations

______ argued that it was ethically justified for General Motors to operate in South Africa so long as conditions of disobeying and promoting the abolition of apartheid laws were fulfilled.

Leon Sullivan

Which well-known advocate for human rights was elected president of South Africa following the apartheid movement in South Africa?

Nelson Mandela

Which statement BEST explains how a manager's personal ethics might be challenged in international transactions?

expatriate managers may face more pressure to violate their personal ethics

An amendment to the Foreign Corrupt Practices Act allowed for the use of ______ which allow a business to receive the standard treatment it ought to receive from a foreign government

facilitating payments

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