Deck 8: Ethics and Corporate Responsibilty

Question 1

Some ethical issues arise when companies do business in different countries because of differences in economic development.

Answer 1

True

Question 2

The most common ethical issues in international business involve employment practices.

Answer 2

True

Question 3

Human rights are now widely accepted and enforced in most countries worldwide.

Answer 3

False

Question 4

Power is morally positive.

Question 5

Many of the ethical issues that arise when companies do business in different nations are due to differences in the social classes between nations.

Question 6

Payments made to foreign officials to ensure that there is no obstruction to a transaction are known as:

A) facilitating payments.
B) guarantor payments.
C) down payments.
D) exclusive payments.

Question 7

The lesson from the Enron debacle is that an ___________________ can legitimise behaviour that society would judge as unethical, particularly when combined with a focus on ______________________________.

A) organisation culture; unrealistic performance goals
B) individual; competition
C) organisation's values; host nation values
D) overly jealous manager; winning

Question 8

The belief that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries is known as:

A) corporate governance.
B) corporate responsibility.
C) cultural relativism.
D) righteous moralism.

Question 9

When human rights activists complained about the sweatshop conditions at Nike's subcontractors' operations, Nike was forced to ______________________________, even though it had not broken any laws.

A) apologise to the activists' cause
B) seek redress and remedy
C) institute a code of conduct for its subcontractors
D) increase payments to satisfy its subcontractors

Question 10

In an international business context, an ______________ is a situation where none of the available alternatives seems ethically ____________________.

A) appropriate decision; suitable
B) opportunity; confronting
C) ethical dilemma; acceptable
D) international exchange; corrupt

Question 11

When Nike managers originally made subcontracting decisions, they chose subcontractors on the basis of business variables such as cost, delivery and product quality, but failed to consider:

A) the reliability and sustainability of the subcontractors.
B) any conflicts of interest amongst the subcontractors.
C) the moral attitudes of host nations.
D) how the subcontractors treated their workforce.

Question 12

One of the criticisms of Nike related to the management practices of its employees, namely, its:

A) executives' wishes.
B) managers' demands.
C) staffing practices.
D) ethical codes of conduct.

Question 13

BP has enacted a ______________________ to limit serious unethical behaviour such as bribery and corruption.

A) zero-tolerance policy
B) laissez-faire policy
C) 'When in Rome, do as the Romans do' policy
D) facilitating payments policy

Question 14

'Naive immoralism' is the belief that if a manager of a multinational sees that firms from other nations are not following the ethical norms in a host nation, that manager should:

A) advise their fellow staff of the firm's own ethical policies, to ensure that they are being adhered to.
B) not follow those norms either.
C) report those firms to authorities.
D) approach the offending firms and notify them of their ethical obligations.

Question 15

Economists theorise that in a country where pre-existing political structures distort or limit the workings of the market mechanism, corruption in the form of _____________________, smuggling and side payments to government bureaucrats may enhance welfare.

A) black-marketeering
B) threats
C) tax incentives
D) unethical procedures

Question 16

There is no simple answer to why managers behave unethically, but determinants include:

A) personal ethics, decision-making processes and unrealistic performance expectations.
B) organisational culture, lack of information and conflicts of interest.
C) unrealistic policies, lack of corporate governance and competition among staff.
D) organisational structure, unrealistic workloads and lack of leadership.

Question 17

The way in which boards oversee the running of a company by its managers, and the accountability of the board members to shareholders and to the company, is referred to as:

A) ethical governance.
B) executive governance.
C) corporate governance.
D) organisational governance.

Question 18

Utilitarian philosophy has some serious drawbacks as an approach to business ethics. One problem is:

A) the uncertainty of results caused by a course of action.
B) how to measure the benefits, costs and risks of a course of action.
C) the complexity of courses of action needed.
D) the competing demands on resources.

Question 19

The Universal Declaration of Human Rights is a document inspired by _______________ and rights theorists. It is ratified by almost every country on the planet and lays down basic principles that should be adhered to, irrespective of the _________________ in which one is doing business.

A) utilitarian; country
B) left; nation
C) governments; work conditions
D) Kantian; culture

Question 20

Developed in the 20th century, rights theories recognise that human beings have fundamental ___________ and privileges that transcend national boundaries and _____________.

A) rights; cultures
B) needs; religions
C) beliefs; governments
D) rights; laws

Question 21

According to Rawls' theory of justice, all economic goods and services should be distributed equally except:

A) when religious beliefs prevent their equal distribution.
B) when the group to be disadvantaged is smaller than the group to be advantaged.
C) when human rights are compromised.
D) when unequal distribution would work to everyone's advantage.

Question 22

Philosopher John Rawls' __________________ is a conceptual tool that contributes to the moral compass that managers can use to help them navigate through difficult ethical dilemmas.

A) 'veil of ignorance'
B) 'glove of justice'
C) 'coat of arms'
D) 'veil of knowledge'

Question 23

John Rawls' 'difference principle' accepts that inequalities can be justified if they benefit the position of the:

A) least advantaged person.
B) smallest minority group.
C) country as a whole.
D) individual in a group or organisation.

Question 24

A five-step process to think through ethical problems includes:

A) a cost-benefit analysis, a financial audit and performance management.
B) establishing moral intent, engaging in ethical behaviour and auditing decisions.
C) undertaking policy reviews, staff orientation and cultural-awareness training.
D) holding annual seminars about ethics, having a whistleblower policy and a code of ethics.

Question 25

The concept of _____________________ refers to 'standing in the shoes of' a stakeholder and asking how a proposed decision would affect that stakeholder.

A) risk analysis
B) moral imagination
C) stakeholder analysis
D) business integrity

Question 26

The tragedy of the commons occurs when individuals overuse a resource held in common by all, but owned by no one, resulting in its degradation. Examples of such resources include:

A) power supplies and land.
B) the atmosphere and oceans.
C) water supplies and farms.
D) roads and railway lines.

Question 27

Facilitating payments are distinguished from bribes in that they are not payments that businesses make to secure contracts they would not otherwise get; rather, they are payments made to:

A) ensure that officials expedite the performance of duties that they are already obliged to perform.
B) ensure that legal obligations are included in any business dealings.
C) ensure that all local government expenses are paid outright to speed up the commencement of a contract.
D) provide a guarantee that the contract will not be cancelled.

Question 28

Multinational corporations have ethical obligations with respect to employment conditions, human rights, corruption and environmental pollution, but their obligations regarding the use of __________ is not always clear cut.

A) negotiation
B) power
C) cultural relativism
D) authority

Question 29

According to the International Labour Organisation (ILO), not all work done by children should be targeted for elimination. Some work done by children can be positive and formative, such as:

A) work that provides a child with a means to survive.
B) work that keeps children off the streets and gainfully employed.
C) assisting parents with their business.
D) assisting organisations with work that provides the child with specialist skills.

Question 30

When an employee says 'no' to a supervisor who asks them to do something unethical, it is __________________ that provides the employee with the strength to say 'no'.

A) moral courage
B) righteous moralism
C) cultural relativism
D) moral intent