MGT 3030 Smartbook Ch 5

Place the steps involved in the decision-making process, surrounding the creation of an organization's ethical culture in the correct order. Audit decisions Engage in ethical behavior Establish moral intent Judge the ethics of strategic decisions Identify stakeholder's decisions

1. Identify stakeholder's decisions 2. Judge the ethics of strategic decisions 3. Establish moral intent 4. Engage in ethical behavior 5. Audit decisions

What is an example of a sustainable strategy? Multiple choice question. A strategy that results in tragedy of the commons A strategy designed to reduce CO2 emissions A strategy designed to increase a company's carbon footprint A strategy that depletes the environment for short-term economic gain

A strategy designed to reduce CO2 emissions

The first thing Brett's manager told him when he started working was that the company always considered the social consequences of any business decision. This is a reflection of Blank______. Multiple choice question. FTP CSR JIT GNI

CSR

______ are situations where none of the available alternatives seems morally acceptable. Multiple choice question. Ethical dilemmas Facilitating payments Tragedy of the Commons MNEs

Ethical dilemmas

Which two of Hofstede's dimensions are present in countries where ethical practices are commonly practiced? Multiple select question. High in uncertainty avoidance High in masculinity High in power distance High in individualism

High in uncertainty avoidance High in individualism

An organization's code of ethics may be partially based on documents such as the United Nations Universal Declaration of __________ __________. (Enter one word in each blank.)

Human Rights

According to the Friedman Doctrine, what is the only social responsibility a company has as long as it stays within the rules of law? Multiple choice question. Delivering goods Protecting humanity Increasing profits Fostering employment

Increasing profits

Elect the most appropriate determinant of ethical behavior for each hypothetical company situation. (leadership, decision-making processes, personal ethics, organizational culture, unrealistic performance expectations). 4. Jack is the CEO of a large corporation. Due to the global economic crisis, he has frozen wages, disallowed employee travel, and cancelled the annual holiday party. Last week he skied at Vail, a posh resort, with his wife, and charged all of his expenses to the company under the pretense that he was "meeting with local legislators."

Leader

What helps managers walk away from a decision that is profitable, but not ethical? Multiple choice question. Rights theory Moral suasion Moral ineptitude Moral courage

Moral courage

According to cultural relativism, all ethics are culturally determined. True false question. True False

True

The decision-making process is one of the determinants of ethical behavior. True false question. True False

True

Elect the most appropriate determinant of ethical behavior for each hypothetical company situation. (leadership, decision-making processes, personal ethics, organizational culture, unrealistic performance expectations). 3. Company "X" has an evaluation system in place that eliminates 20 percent of underperformers every six months.

Unrealistic performance expectations

Which ethical theory emphasizes that the best actions are those that benefit the most number of people and harm the least number of people? Multiple choice question. Protestantism Evangelism Kantian Utilitarianism

Utilitarianism

VW's goal of being the world leader in electric vehicles together with its decision to devote large resources to the effort signals Multiple Choice that personal ethics are important that commitment to sustainability is a requirement for promotion the engagement of ethics officers profits trump ethical behavior corporate social responsibility.

corporate social responsibility.

The two caveats of the Sullivan principles were that a company should not obey the apartheid laws in its own South African operations, and a company should Multiple Choice do everything possible to abolish apartheid laws. provide facilitating payments to foster the apartheid movement. limit toxic emissions and control environmental pollutants. not add to the tragedy of the commons. return production facilities to the home country.

do everything possible to abolish apartheid laws.

Sanjay told his staff that the company didn't care if the components came from a company using sweatshop labor, the parts were needed to meet the order and the company needed the order to make the sales quota. In this situation, the company makes this decision based on purely Blank______ terms. Multiple choice question. political social economic ethical

economic

Lucia is responsible for establishing a confidential service that employees can use to question if a practice is unethical and she also makes sure the company complies with government laws and regulations. Lucia is an example of a(n) Blank______. Multiple choice question. ethics officer sales manager chief financial officer human resource manager

ethics officer

Generon Inc. has moved its production to a new nation. It freely dumps its harmful waste in the rivers and causes environmental degradation there. In this case, Generon has contributed to the Multiple choice question. the difference principle. global tragedy of the commons. noblesse oblige. Sullivan principle.

global tragedy of the commons.

Employees, directors, and stockholders are examples of ______ (internal or external?) stakeholders.

internal

A(n) Blank______ strategy helps a company make good profits but does so without harming the environment. Multiple choice question. Kantian noblesse immoralist sustainable

sustainable

Unrealistic performance goals can often only be attained by Multiple choice question. bringing on additional support staff. taking shortcuts or behaving in an unethical manner. working with a team. following all the rules.

taking shortcuts or behaving in an unethical manner.

Sonja relies on a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States. She is using the __________blank approach to ethics to determine the answer. Multiple Choice utilitarian Friedman doctrine naive moralist difference principle cultural relativist

utilitarian

In the 1980s, Western businesses questioned the ethics of operating in South Africa because the apartheid system in place there Multiple choice question. required significant government bribes. created a competitive advantage. legitimized the segregation of expatriates. violated basic human rights.

violated basic human rights.

A(n) _______ distribution is one that is considered fair and equitable.

just

The fair and equitable dissemination of economic goods and services is the focus of a(n) Blank______ distribution. Multiple choice question. equivalent just loaded biased

just

The Blank______ believes that if a multinational firm sees that other firms are not following ethical norms, then they don't have to either. Multiple choice question. righteous moralist naive moralist naive immoralist righteous immoralist

naive immoralist

When making ethical decisions, Blank______ factors are stressed in Japan, while Blank______ factors are more important in the United States. Multiple choice question. individual or personal; opportunity organizational; individual or personal organizational; opportunity opportunity; individual or personal

organizational; individual or personal

Laws on the use of child labor in Bangladesh Multiple Choice are rigid and archaic. are similar to those in China. are not always enforced. are limiting for young children but accommodating for older children.do not apply to teenagers.

are not always enforced.

In a business setting, noblesse oblige refers to Blank______ behavior considered to be the responsibility of successful enterprises. Multiple choice question. unethical courageous powerful benevolent

benevolent

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 walks away because she knows that while paying the bribe would ensure large profits, doing so would be unethical. Maria is demonstrating moral Blank______. Multiple choice question. mission accommodation imagination courage

courage

With its goal of offering a complete line of electric cars beginning in 2020, VW is Multiple Choice trying to capitalize on the tragedy of the commons. eliminating head-to-head competition with other carmakers. hoping to evoke a feeling of nostalgia among older customers. demonstrating its commitment to pursuing a sustainable strategy. hoping to mitigate conflict over local emissions regulations.

demonstrating its commitment to pursuing a sustainable strategy.

The Plume and Fabric manufacturing company abides by a strict code of providing the best in equipment, lighting, and overall working conditions for its 350 employees who create costumes for Broadway shows. While the company could save money by hiring less-skilled or underage labor to do the job, it knows that decision is not acceptable. This scenario demonstrates how a(n) Blank______ plays a role in the company's decisions. Multiple choice question. vision statement ethical strategy mission statement marketing plan

ethical strategy

Cyrus knows it is wrong for his company to continue pouring manufacturing waste products into the water system based on environmental standards set down by the state, but he lets it continue anyway. Cyrus is demonstrating a lack of business Multiple Choice procedures. objectives. ethics. development. goals.

ethics.

Manuel lives in a city with a large semiconductor factory, and he regularly attends city council meetings to protest the pollution from this plant. With respect to this company, Manuel would be considered a(n) Multiple Choice internal stakeholder. mini-multinational. external stakeholder. customer. supplier.

external stakeholder.

The decision by many Western businesses to pull out of South Africa in protest of the country's apartheid government contributed to the economic crisis that ultimately led to the collapse of the apartheid system. The local communities and customers that were negatively impacted by the decisions of the Western businesses can best be described as Multiple Choice internal stakeholders. being complicit. victims of utilitarianism. victims of cultural relativism. external stakeholders.

external stakeholders.

Many companies develop a formal statement of primary values and ethical standards for employees and managers to follow. This is called a Multiple choice question. code of conduct. code of grievances. code of ethics. code of honor.

code of ethics.

Sweden scores high on the individualism and uncertainty avoidance measures of societal culture. According to Hofstede's dimensions of societal culture, Sweden is more likely to engage in Blank______ business behavior than, for example, Russia. Multiple choice question. unethical avoidance ethical individualistic

ethical

A U.S. manager knows that many of his company's competitors are doing business with an unethical garment factory in Bangladesh. The manager is under pressure to look the other way on the subcontractor's violations, but instead chooses a more ethical company knowing that doing so will raise costs. The manager Multiple Choice will certainly be fired. is displaying moral courage. has violated social norms in Bangladesh. is showing poor judgment. is putting his company at risk.

is displaying moral courage.

When considering the implications of its decision to provide an electric version of its cars, VW Multiple Choice must use moral imagination. should avoid moral courage and focus on cultural relativism. should encourage noblesse oblige at the expense of corporate social responsibility. put the demands of shareholders above stakeholders. must engage ethics officers to ensure the legality of its decisions.

must use moral imagination.

The apartheid government in South Africa mandated segregation between whites and nonwhites and prohibited Black people from being placed in positions where they would manage whites. The approach to business ethics that would encourage Western businesses to question the ethics of continuing to operate within this environment is Multiple Choice justice theories. rights theories. Utilitarian ethics. Kantian ethics. the Friedman Doctrine.

rights theories.

The idea that business people should favor decisions that have both good economic and social consequences is called corporate Multiple choice question. social imagination. moral courage. social responsibility. moral compass.

social responsibility.

Elect the most appropriate determinant of ethical behavior for each hypothetical company situation. (leadership, decision-making processes, personal ethics, organizational culture, unrealistic performance expectations). 2. Company ABC employees are pleasantly surprised by the way motivation and initiatives are being recognized after they were acquired by Company EFG.

Organizational culture

What are four determinants of ethical behavior? Multiple select question. Humanism Organizational culture Leadership Personal ethics Social behavior law Societal culture

Organizational culture Leadership Personal ethics Societal culture

The generally accepted principles and values that govern interactions between individuals are called Multiple choice question. straw men. facilitating payments. social responsibilities. personal ethics.

personal ethics.

An operations manager of a company conducted a study to determine if the company's proposed site for a new factory would damage the environment in that area. The study was inconclusive, so the manager decided to look for another site that would definitely not cause harm. This manager was applying the __________blank principle. Multiple Choice Kantian precautionary utilitarian moral righteous

precautionary

Which philosophical approach claims that a multinational's home-country standards of ethics are the ones employees should follow even when working in foreign countries? Multiple Choice Sullivan principles cultural relativism naive immoralism righteous moralism Freidman doctrine

righteous moralism

The managers of Simple Sound Manufacturing are struggling to meet their quota that was recently increased by upper management. They decide to eliminate two quality control steps in the manufacturing process. This is unethical behavior that was a result of Multiple choice question. fraudulent accounting practices. following a strict codes of ethics. unrealistic performance goals. the need to establish high quality standards.

unrealistic performance goals.

A manager responsible for ensuring that its subcontractors are being ethical in their hiring finds that one company has employed a young girl aged 12. The manager wants to immediately fire the child but is told that the child's wages are the only source of income for her family. If the manager fires the girl, her family will starve. The manager Multiple Choice is facing an ethical dilemma. has violated his contract. is displaying polycentric behavior. recognizes that the home country policy is always right. is troubled by a lack of enforcement.

is facing an ethical dilemma.

By the mid-1980s, Western managers in South Africa faced a critical decision: remain in the country supporting the economy, but also supporting apartheid; or pull out in protest of apartheid, knowing that doing so would contribute to economic crisis. The situation in which Western managers found themselves can best be described as Multiple Choice an ethical strategy. business ethics. the Sullivan principle. an ethical dilemma. tragedy of the commons.

an ethical dilemma.

Pursuing strategies that are sustainable has little impact on helping an organization ensure that ethical issues are considered in business decisions. True false question. True False

False

______ ethics measure actions on a cost-benefit scale. Multiple choice question. Assimilation Rights theories Utilitarian Justice

Utilitarian

The director of human resources asked the management team to consider how they would feel if they were asked to travel more than 65 miles to get to work—which is what they were asking the management team at the foreign office to do. The director is relying on __________blank to approach this ethical situation. Multiple Choice the naive immoralist approach the difference principle the Sullivan principle moral imagination ethnocentrism

moral imagination

One of the root causes of unethical behavior in business is Multiple Choice a strong sense of personal ethics. pressure to meet unrealistic performance goals. a societal culture with low power distance. management's ability to see beyond economic benefits. organization culture that emphasizes business ethics.

pressure to meet unrealistic performance goals.

James is an expatriate from Nebraska managing a tech support center in India. He is a firm believer in the minimum wage and treating employees fairly. Yet he sees his assistant manager firing an employee and hiring his neighbor to do the job at a lower rate. Knowing this would never be accepted in the United States, James confronts his assistant manager, claiming this behavior isn't right. He is displaying the Blank______ approach to ethics. Multiple choice question. righteous moralist Friedman doctrine naive immoralist naive moralist

righteous moralist

Celeste, 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. Celeste can be described as a(n) Blank______. Multiple choice question. cultural relativist righteous moralist naive immoralist

naive immoralist

Which congressional act outlaws the payment of bribes to foreign government officials to gain businesses? Multiple choice question. Prevention of Foreign Corruption Act Foreign Corrupt Practices Act Corruption of Foreign Public Officials Act Foreign Money Laundering Control Act

Foreign Corrupt Practices Act

An amendment to the Foreign Corrupt Practices Act allowed for the use of Blank______ in which a business is ensured that it will receive the standard treatment it ought to receive from a foreign government. Multiple choice question. trade sanctions isolationism facilitating payments deregulation

facilitating payments

As demonstrated by the Nike example in the text, which situation is generally MOST preferred when considering employment practices in international business? Multiple choice question. Meeting required home standards, but permitting the use of child labor in the foreign country if it is the norm there Having good working conditions in home operations, but holding foreign operations to the lower standards that are acceptable in that country Requiring good conditions in home and foreign operations, but accepting subcontractor safety violations if it's more profitable Requiring good conditions in home and foreign operations even when this results in a smaller profit margin

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

How do facilitating payments benefit a company? Multiple choice question. Helps a business avoid tax payments Helps a business secure contracts that would not otherwise be secured Allows a company to obtain exclusive preferential treatment Smooths the progress of services to which the business is entitled

Smooths the progress of services to which the business is entitled

Until the 1980s, many Western businesses continued to profit from their operations in South Africa despite knowing that doing so indicated tacit support of the country's apartheid government. Which approach to business ethics claims that "the social responsibility of business is to increase profits" so long as the company stays within the rules of law? Multiple Choice Cultural Relativism The Naïve Immoralist The Righteous Moralist Utilitarian Ethics The Friedman Doctrine

The Friedman Doctrine

Which description of leader behavior is most likely to promote a strong ethical culture in an organization? Multiple choice question. The boss who pays little regard to social norms and values and instead succeeds by his or her own set of rules. The boss who consistently demonstrates strong personal ethics in all dealings with clients. The boss who makes quick decisions without anyone's input and then places the blame for problems on others. The boss who speaks strongly about personal ethics and at the same time encourages employees to do whatever it takes to succeed.

The boss who consistently demonstrates strong personal ethics in all dealings with clients.

Which company is contributing to the global tragedy of the commons? Multiple choice question. Perfect Paint Supply plans to open a manufacturing plant in Italy since 40 percent of its sales are in Europe. Virtual-Day Inc. moved production to a South American country with lower environmental regulations and sends pollutants freely into the air. Top Line Appliance imports parts from an eastern nation that uses child labor. Wood Form Corp. implemented a waste disposal system that complies with government regulations.

Virtual-Day Inc. moved production to a South American country with lower environmental regulations and sends pollutants freely into the air.

A payment which ensures that a business receives the standard treatment that it ought to receive from a foreign government is known as Multiple choice question. a grease payment. an embargo. an import tariff. a tax.

a grease payment.

A person who follows the idea of Blank______ says that the multinational's home-country standards of ethics are the appropriate approach to follow in foreign countries. Multiple choice question. cultural relativism the Friedman doctrine a naive immoralist a righteous moralist

a righteous moralist

VW's decision to commit significant financial and R&D resources to electric vehicles can best be described as ____ approach to business ethics. Multiple Choice a utilitarian the Friedman doctrine a naïve immoralist a cultural relativism a righteous moralist

a utilitarian

A manager is considering whether it is ethical to source garments from a factory that uses child labor. In this case, ethics refers to Multiple Choice the host country's regulations on the use of child labor. the home country's regulations on the use of child labor. the generally accepted employment practices of the host country.any ethnocentric behavior by the manager or company as a whole on human rights. accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization.

accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization.

The basic position of the Friedman doctrine says that Multiple Choice businesses should undertake social expenditures beyond those that are mandated by the law. the only social responsibility of business is to increase profits, so long as the company stays within the rules of law. the best business decisions are those that produce the greatest good for the greatest number of people. a multinational's home-country standards of ethics are appropriate to follow in foreign countries. people should be treated as ends and never purely as means to the ends of others.

the only social responsibility of business is to increase profits, so long as the company stays within the rules of law.

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 Multiple choice question. moral. unethical. disorganized. acceptable.

unethical

Which description of leader behavior is most likely to promote a strong ethical culture in an organization? Multiple choice question. The boss who speaks strongly about personal ethics and at the same time encourages employees to do whatever it takes to succeed. The boss who pays little regard to social norms and values and instead succeeds by his or her own set of rules. The boss who consistently demonstrates strong personal ethics in all dealings with clients. The boss who makes quick decisions without anyone's input and then places the blame for problems on others.

The boss who consistently demonstrates strong personal ethics in all dealings with clients.

What is an accurate description of developed nations with regard to the environment? Multiple choice question. They have more substantive environmental regulations. They lack environmental laws and rules. They have a pollution free environment. They import toxic chemicals from developing nations.

They have more substantive environmental regulations.

What is the final step companies should take when assessing ethical issues? Multiple choice question. Establish objectives Review moral intent Audit the company's decisions Determine stakeholder liability

Audit the company's decisions

Elect the most appropriate determinant of ethical behavior for each hypothetical company situation. (leadership, decision-making processes, personal ethics, organizational culture, unrealistic performance expectations). 5. Ellen has taken over a troubled manufacturing plant. The citizens who live around the plant are concerned about safety and pollution. She sets up a community meeting so that managers, organized labor, affected citizens, and all other parties can air their concerns as a step toward addressing the simmering issues.

Decision-making processes

In an organization where personal ethics are important, which individual should be considered for a job opening? Multiple choice question. The individual who misrepresents his college credentials but performs well in the interview. The individual who has a strong history of success, but a reputation of doing whatever it takes to succeed regardless of the consequences. The individual who has a disappointing interview but has glowing letters of recommendation that attest to his integrity. The individual who is well connected within the organization, but follows a policy of when in Rome, do as the Romans.

The individual who has a disappointing interview but has glowing letters of recommendation that attest to his integrity.

Business people may behave unethically simply because they forget to ask whether the decision or action they are making is ethical. True false question. True False

True

Companies can use psychological tests in the hiring process to help identify people who have a strong sense of personal ethics. True false question. True False

True

According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making? Multiple select question. Implement decision-making processes that consider ethical aspects of business decisions. Favor hiring and promoting of people with a sense of personal ethics. Develop solid accounting and auditing practices. Build an organizational culture that values ethical behavior. Invest in international businesses that promote advocacy.

Implement decision-making processes that consider ethical aspects of business decisions. Favor hiring and promoting of people with a sense of personal ethics. Build an organizational culture that values ethical behavior.

__________blank gives employees the integrity to blow the whistle on persistent unethical behavior in a company. Multiple Choice Moral courage Cultural relativism Righteous moralism Moral imagination Naive immoralism

Moral courage

Which two theories provide the moral compass that is important when thinking through the ethical implications of decisions in a systematic way? Multiple select question. The Friedman Doctrine Rawl's theory of justice Rights theories Straw men theories

Rawl's theory of justice Rights theories

A company's organizational Blank______ reflects the values and norms that are shared among employees of an organization. Multiple choice question. vision culture endowment hierarchy

culture

The straw men theory that states that businesses should behave in a socially responsible manner, according to ethical custom and without deception and fraud is the Blank______. Multiple choice question. Yellen Doctrine Greenspan Doctrine Monroe Doctrine Friedman Doctrine

Friedman Doctrine

Elect the most appropriate determinant of ethical behavior for each hypothetical company situation. (leadership, decision-making processes, personal ethics, organizational culture, unrealistic performance expectations). 1. Joe regularly visits China and offers lavish gifts to the Chinese company officials who are customers of his U.S. software company. He does this in order to secure his yearly sales quota bonus, and writes off the gifts as a business expense to his company.

Personal ethics

Certain theories accept that there are rights, both positive and negative, that all humans have simply because they are human. These are called Blank______ theories. Multiple choice question. rights Friedman utilitarian Kantian

rights

Cryon Builders decides to move production to a developing country where it is free to pump pollutants into the atmosphere without legal restriction. By doing this, the company is contributing to Multiple Choice corporate social responsibility. facilitating payments. cultural relativism. the global tragedy of the commons. the difference principle.

the global tragedy of the commons.