International business Chapter 5

as demonstrated by Nike, which situation is generally most preferred?

a company that requires good conditions in its home and foreign operations and at foreign subcontractors even when this results in a smaller profit margin

the ideas that business people 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 know as

corporate social responsibility

the belief that ethics are nothing more than the reflection of a culture is called ___

cultural relativism

situations where none of the available alternatives seems ethically acceptable are defined as ____

ethical dilemmas

to ensure that business acts in an ethical manner, some firms now have created a position for a/an ___ officer

ethics

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

ethics

as the text states, Western-based companies began to exit Myanmar in the mid 1990s because business could not be ethically justified in a country with such extreme ___ ___ violations

human rights

are employees, directors, and stockholders examples of internal or external stakeholders? they are examples of ___ stakeholders

internal

a(n) ____ distribution is considered fair and equitable

just

the ____ theories concentrate on the attainment of a fair and equitable distribution of economics goods and services

justice

__ 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

the phenomenon known as the tragedy of the commons was first named by Garrett Hardin in sixteenth century England when he observed how the poor used __ to supplement their income

livestock

what message did leaders at Daimier send to employees when they tolerated the use of bribes to facilitate business?

managers should do whatever it takes to succeed, organizational objectives are more important than personal ethics

one criticism of the ___ immoralist is that a multinational must recognize that it has the ability to change the prevailing business practices in a country

naive

social rules and guidelines that prescribe appropriate behavior in a particular situation are known as

norms

Daimler effectively encourage and legitimized unethical behavior by establishing unrealistic ___ that managers believed could only be paying bribes

performance goals

generally accepted principles of right and wrong that govern individual conduct are called ___ ethics

personal

facilitating payments help a business to

receive the standard treatment from a foreign government

a ___ moralist claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries

righteous

the theories that recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures are called ___ theories

rights

starbucks ethical sourcing policies are an example of a ____ strategy that benefits multiple stakeholders including shareholders, the environment, local communities, and customers

sustainable

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 deals with clients

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

wotf accurately describe developed nations

they have substantial environmental regulations

when a resource held in common by all, but owned by no one, is overused by individuals resulting in its degradation, the phenomenon is called ____

tragedy of the commons

most moral philosophers see value in ___ approaches to business ethics

utilitarian

which ethical theory recognizes that actions have multiple consequences, some of which are good and some are harmful?

utilitarianism

Leon Sullivan is credited with helping rid South Africa of ___ when his actions helped General Motors (the company he worked for) and other American companies realized they could not ethically justify a continued presence in this country

apartheid

the ___ denied basic political rights to the majority nonwhite population of South Africa

apartheid system

___ ethics holds that people have dignity, and need to be respected as such, and that people are not instruments

kantian

the main criticism of the ___ approach is that its supporters go too far. it does not always follow that the appropriate thing to do is adopt home-country standards

righteous moralist

which of the following are determinants of ethical behavior?

social culture, decision- making processes, leadership, unrealistic performance goals, organization culture, personal ethics

which of the following countries followed the apartheid system

south africa

what UN declared stipulated basic principles that should always be adhered to irrespective of culture in which one is doing business

universal declaration of human rights

which approach to business ethics fails to take into account the proprieties of justice? for example, while a business might produce a great deal of good for most people, at the same time it results in the unjustified treatment of another group

utilitarianism

abstract ideas about what a group believes to be good, right, and desirable are known as

values

which theories provide the moral compass that is important to thinking through the ethical implications of decisons in a systematic way?

rights theories, rail's theory of justice

Some ethics experts have proposed practical guides or ethical ___ to make ethical decisions in a systematic way

algorithms

according to philosopher John Rawls, all economic goods and services should be distributed equally except when

an unequal distribution would work to everyone's advantage

according to the concept of __ ___ , if a country you are doing business in uses slave labor, then it is acceptable for your company to use slave labor. in other words, ethics are nothing more than the reflection of a culture and a firm should adopt the culture in which it is operating

cultural relativism

an ethical strategy is a strategy that ___

does not violate the accepted principles of right or wrong

as the text relates, companies headquartered in cultures where individualism and uncertainty avoidance are strong are ___ likely to emphasize the importance of behaving ethically

more

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

organizational culture

some ethics experts have proposed practical guides or ethical ___ to make ethical decisions in a systematic way

algorithms

business people may behavior unethically because they forgot to ask whether the decision or action they are making is ethical

true

companies can use psychological tests in the hiring process to help identify people who have a strong sense of personal ethics

true

in a business setting noblesse oblige refers to benevolent behavior considered the responsibility of successful enterprises

true

international businesses have gained economic advantages by making payments to corrupt government officials

true

the straw men approach to ethics is comprised of four approaches. which of the following are included among these appraoches

friedman doctrine, cultural relativism, righteous moralist, naive immoralist

according to rawls 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

once basic liberty is ensured, inequality in basic social goods is to be allowed only if such inequalities benefit everyone, each person is permitted the max amount of basic liberties compatible with a similar liberty for others

when making ethical decisions, ___ factors are stressed in Japan while ___ factors are more important in the US

organizational, individual personal

since expatriate managers may be based in a country that doesn't place the same value on ethical norms important in the manager's home country, the manager's ____ may be challenged

personal ethics

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 stakeholder is refereed to as ___ strategy

sustainable

business ethics can best be described as ____

the accepted principles of right or wrong governing the conduct of people engaged in trade and commerce

a company pursuing a sustainable strategy would not adopt policies that negatively affect the well-being of key stakeholders such as employees and suppliers

true

ethical issues are a rare occurrence in international business because business practices and regulations are similar thoughout the world

false

sustainable strategies are always zero-sum games where increasing the returns to one stakeholder group requires the imposition of costs on other stakeholders

false

the justice theory attributed to John Rawls initially states that all economic goods and services should be distributed unequally in order to work in everyone's advantage

false

rights such as freedom of association and freedom of speech are ____

not universally accepted

according to the text, choose the things that managers can do to ensure that ethical issues are considered in business decision making

build an organizational culture that values ethical behavior, favor hiring and promoting of people with a sense of personal ethics, implement decision-making processes that consider ethical aspects of business decisions

global warming is said to be the result of which greenhouse gas?

carbon dioxide

a formal statement of the ethical principles a business must adhere to is a ____ of ____

code of ethics

which of the four straw men approaches is associated with the phrase, "when in Rome do as the Romans?

cultural relativism

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 her ___ imagination

moral

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 ___ courage

moral

who states that if a manager of a multinational sees businesses from other countreis not following ethical standards in a host country, that manager should not either

native immoralist

which of the following acts outlaws the payment of bribes to foreign government officials to gain businesses

foreign corrupt practices act

the __ doctrine states that increasing profits is the only social responsibility a company has

friedman doctrine