Deck 5: Ethics and Social Responsibility in International Business

Question 1

BP's program to prepare managers at headquarters for assignments in Russia is an example of ________.

A) ethics training
B) selection procedures
C) corporate socialization
D) employee orientation

Answer 1

A

Question 2

According to the text, which of the following is NOT an ethical generalization?

A) Individuals have their own belief system about what is ethical and unethical.
B) People from the same cultural backgrounds usually have similar ethics.
C) National values have little influence on an individual's personal ethics.
D) Circumstances cause individuals to deviate from their ethical beliefs.

Answer 2

C

Question 3

The type of gift exchanged by business people in Japan is primarily determined by all of the following factors EXCEPT the ________.

A) nature of the business relationship
B) length of the business relationship
C) amount of business being transacted
D) location of the business in the community

Answer 3

D

Question 4

Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n) ________.

A) conflict of interest
B) strategic breakdown
C) breach of contract
D) trade violation

Question 5

Which term refers to an individual's personal beliefs about whether a decision, behavior, or action is right or wrong?

A) values
B) culture
C) ethics
D) norms

Question 6

In Japan, ________ gifts represent a token of gratitude for favors and loyalty shown throughout the year.

A) wa
B) ochugen
C) oseibo
D) keiretsu

Question 7

Ethical beliefs are primarily ________ in nature.

A) societal
B) familial
C) individual
D) cultural

Question 8

Which of the following is LEAST susceptible to ethical variations in international business?

A) hiring practices
B) working conditions
C) insurance benefits
D) employee privacy

Question 9

Gift exchanges in a business situation in Japan are best described as ________.

A) common
B) trendy
C) rare
D) illegal

Question 10

Which of the following best explains why looting was uncommon in Japan after the country's 2011 earthquake and tsunami?

A) personal religious beliefs
B) individual desires for survival
C) pressures from law enforcement
D) importance of group membership

Question 11

Fruit juice suppliers in South America rely heavily on ________.

A) elderly employees
B) child labor
C) female workers
D) illegal immigrant workers

Question 12

When behavior conforms to generally accepted norms, it is referred to as ________ behavior.

A) ethical
B) societal
C) normal
D) unethical

Question 13

Which term refers to a decision that benefits an individual to the possible detriment of the organization?

A) conflict of interest
B) confidentiality
C) ethical behavior
D) breach of privacy

Question 14

________ are the things a person feels to be important.

A) Values
B) Ethics
C) Norms
D) Expectations

Question 15

According to the text, the primary ethics concerns surrounding BP related to ________.

A) corruption
B) child labor
C) worker safety
D) market price control

Question 16

Sonya and Amber work together in the Hong Kong corporate office. Despite having similar backgrounds and education, they cannot agree on whether it is appropriate to offer bribes to Chinese officials for the purpose of expediting business transactions. Which ethical generalization does this most likely illustrate?

A) Individuals have their personal belief systems.
B) Culture has the strongest influence on personal ethics.
C) Personal values rarely overlap with global business dealings.
D) Society requires individuals to rationalize ethical inconsistencies.

Question 17

Behavior that fails to conform to generally accepted social norms is considered ________.

A) ethical
B) unethical
C) illegal
D) unregulated

Question 18

Which of the following is LEAST influential on an individual's ethics?

A) family
B) peers
C) social trends
D) religious beliefs

Question 19

Mick has been padding his expense account on business trips. However, it seems fair to him because the company refuses to provide him with comp time despite long hours he works on these business trips. Which ethical generalization does this most likely illustrate?

A) Individuals have their own personal belief system.
B) Individuals are typically consistent with their beliefs.
C) Individuals can rationalize behavior in various circumstances.
D) Individuals from the same cultural contexts have similar beliefs.

Question 20

Three employees of Martin Enterprises have flown to China to meet a potential business partner. The three employees cannot agree about giving a gift to the potential partner. James, an American manager, believes that gift-giving is an ethical violation. Eun Hee, a South Korean manager, and Evan Lee, a Japanese manager, assert that gift-giving would be appropriate. This situation most likely illustrates which of the following statements?

A) Personal and business ethics are often rationalized.
B) Cultural similarities lead to common ethical beliefs.
C) Belonging to a group is important to the Asian culture.
D) Individuals may not always be consistent with their beliefs.

Question 21

In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery unacceptable.

A) Sweden
B) Australia
C) Switzerland
D) South Korea

Question 22

Jason completes company work at home on the weekends. He justifies taking office supplies home because of the company work he completes at home. Which ethical issue does this scenario relate to?

A) conflict of interest
B) honesty
C) confidentiality
D) secrecy

Question 23

Sally uses her telephone at work to call her sister long distance. Which of the following best describes Sally's ethical issue?

A) conflict of interest
B) dishonesty
C) poor confidentiality
D) lack of secrecy

Question 24

What was the first action taken by Siemens after the firm was fined for numerous ethics violations?

A) implemented new hiring policies
B) changed the hierarchical structure
C) revised the code of ethics
D) replaced top executives

Question 25

In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery acceptable.

A) Russia
B) Austria
C) Taiwan
D) South Korea

Question 26

Which of the following is not a common method for encouraging ethical behavior among employees?

A) codes of ethics
B) ethics training
C) public admonishment
D) organizational practices

Question 27

Gift exchanges are likely to be considered a conflict of interest in a(n) ________ culture.

A) high-context
B) collectivist
C) low-context
D) power-respecting

Question 28

Which of the following most likely improves the effectiveness of a code of ethics for an MNE?

A) relevancy to local religions
B) application by new recruits
C) explanation through online training
D) support from organizational practices

Question 29

Which of the following actions LEAST likely shows a firm's social responsibility toward its customers?

A) giving fair treatment
B) charging fair prices
C) providing warranties
D) meeting delivery commitments

Question 30

Jack always likes to place orders with Sam's Supply Company because the company sends him a gift certificate for $100 each holiday season. Which ethical issue is this an example of?

A) conflict of interest
B) honesty
C) confidentiality
D) secrecy

Question 31

A company that is socially responsible will most likely ________.

A) do as little as possible to address social or environmental problems
B) undertake efforts to protect the society in which it functions
C) conform to regional, national, and international laws
D) follow basic ethical standards of behavior

Question 32

The term ________ refers to the set of obligations an organization undertakes to protect and enhance the society in which it functions.

A) organizational ethics
B) social responsibility
C) corporate ethics
D) social values

Question 33

Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following questions is most relevant to the current discussion about the firm's code of ethics?

A) Should the code of ethics be globally consistent or tailored to local contexts?
B) What should be addressed by the firm's code of ethics in order to comply with U.S. laws?
C) Should home-country or host-country managers provide training on the firm's code of ethics?
D) What punishment is used by the firm's competitors when employees violate the code of ethics?

Question 34

Companies that are socially responsible to their investors do all of the following except ________.

A) provide appropriate information to shareholders and investors
B) manage the organization to protect shareholder rights
C) adhere to appropriate accounting procedures
D) manipulate stock prices

Question 35

Firms such as Procter & Gamble that use recycled materials whenever possible are most likely demonstrating their ________.

A) commitment to environmental protection
B) concern for general social welfare
C) implementation of a code of ethics
D) responsibility to stakeholders

Question 36

In an international setting, which of the following behaviors is LEAST likely to be subject to ethical ambiguity?

A) recruiting
B) advertising
C) bargaining
D) purchasing

Question 37

The term ________ refers to those people and organizations that are directly affected by the practices and performance of an organization.

A) corporate customers
B) permanent employees
C) community stockholders
D) organizational stakeholders

Question 38

Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following training topics would most likely prepare expatriate managers for handling ethics issues in China and Bangladesh?

A) multilingual contexts
B) local religious customs
C) local business practices
D) global marketing methods

Question 39

Which of the following is not one of the main groups of stakeholders that firms usually focus on?

A) competitors
B) customers
C) employees
D) investors

Question 40

HR at APEX Designs, an international architectural firm, have noticed the following behaviors among employees lately. Which of the following would NOT be considered a problematic ethical situation at APEX?

A) taking office supplies home for personal use
B) making personal calls during work time
C) padding company expense accounts
D) working excessive overtime

Question 41

Which of the following statements is most likely true about firms with formal codes of ethics?

A) Virtually all ethical issues are eliminated from the firm.
B) Ethical training is unnecessary, redundant, and too costly to be effective.
C) Organizational practices and a strong ethical corporate culture are essential.
D) Individual codes must be developed and implemented for each subunit in the firm.

Question 42

According to the model developed by van Tulder and van der Zwart there are three main actors in the policy formulation process. Which is not a main actor?

A) commercial society
B) the state
C) the market
D) civil society

Question 43

Which of the following is not an informal dimension of social responsibility?

A) acts of philanthropic giving
B) corporate leadership
C) responses to whistle blowing
D) organizational culture

Question 44

McDonald's Ronald McDonald House program is an example of a(n) ________ to social responsibility.

A) accommodative stance
B) proactive stance
C) obstructionist stance
D) defensive stance

Question 45

When an organization does as little as possible to address social or environmental issues, it has adopted the ________ to social responsibility.

A) obstructionist stance
B) defensive stance
C) accommodative stance
D) proactive stance

Question 46

The Body Shop seeks out opportunities to improve the welfare of individuals all over the world. It has adopted the ________ to social responsibility.

A) obstructionist stance
B) defensive stance
C) accommodative stance
D) proactive stance

Question 47

Alcoa's gift of $112,000 to a small town in Brazil to build a sewage treatment plant is an example of ________.

A) guanxi
B) philanthropic giving
C) ethical compliance
D) legal compliance

Question 48

A firm that wants to review the effectiveness of its social responsibility efforts should most likely conduct a(n) ________.

A) corporate social audit
B) SWOT analysis
C) strategy session
D) HR audit

Question 49

Logix Manufacturing is a U.S. firm with a factory in Mexico City. Local leaders in Mexico City ask Logix managers to make contributions to a youth sports organization. Logix provides the league with new equipment and uniforms. Which stance towards social responsibility does Logix most likely have?

A) proactive
B) obstructionist
C) accommodative
D) defensive

Question 50

Justin is aware that his supervisor used corporate funds to pay for a personal vacation and reports the offense. This is called ________.

A) whistle-blowing
B) acknowledgement
C) conflict of interest
D) organizational communication

Question 51

When an organization does everything it must do from a legal standpoint but nothing more, it has adopted the ________ to social responsibility.

A) obstructionist stance
B) defensive stance
C) accommodative stance
D) proactive stance

Question 52

Which of the following is the LEAST responsible approach to social responsibility?

A) obstructionist stance
B) defensive stance
C) accommodative stance
D) proactive stance

Question 53

The extent to which members of an organization follow basic ethical standards of behavior is ________.

A) guanxi
B) legal compliance
C) ethical compliance
D) whistle-blowing

Question 54

R.J. Reynolds' decision to follow laws regarding the marketing of its products in the United States but market its tobacco aggressively in countries without such regulations is an example of which approach to social responsibility?

A) the obstructionist stance
B) the defensive stance
C) the accommodative stance
D) the proactive stance

Question 55

The extent to which an organization conforms to regional, national, and international laws is known as ________.

A) guanxi
B) legal compliance
C) ethical compliance
D) whistle-blowing

Question 56

A company taking a proactive approach to social responsibility will most likely ________.

A) exhibit sincere and significant efforts to contribute to society
B) require employees to participate in local charities
C) conform to regional customs and laws
D) provide online ethics training

Question 57

Examples of promoting the general welfare of society include all of the following except ________.

A) making charitable contributions
B) supporting public radio stations
C) becoming involved in local schools
D) using appropriate accounting procedures

Question 58

Which of the following is the most responsible approach to social responsibility?

A) obstructionist stance
B) defensive stance
C) accommodative stance
D) proactive stance

Question 59

Firms that view themselves as citizens of society have adopted the ________ to social responsibility.

A) obstructionist stance
B) defensive stance
C) accommodative stance
D) proactive stance

Question 60

Which term refers to the disclosure by an employee of illegal or unethical conduct on the part of others within the organization?

A) whistle-blowing
B) acknowledgement
C) conflict of interest
D) organizational communication

Question 61

What constitutes ethical behavior varies from person to person.

Question 62

An MNE with a factory in Cambodia is being inspected by the International Labor Organization. What is the most likely focus of the inspection?

A) excessive corruption
B) customs procedures
C) environmental violations
D) safe working conditions

Question 63

Which regulation prohibits the offering of bribes to any foreign government official in order to influence official actions or policies of that official or to gain or retain business?

A) Foreign Corrupt Practices Act
B) Helms-Burton Act
C) Alien Tort Claims Act
D) Disclosure of Conflict Act

Question 64

According to the model developed by Rob van Tulder and Alex van der Zwart, firms that adhere to the Asian Way are more likely to ________.

A) bargain with labor groups
B) promote social responsibility
C) strive for competitive advantages
D) cooperate closely with the government

Question 65

According to the model developed by Rob van Tulder and Alex van der Zwart, Anglo-Saxon countries view the state, the market, and civil society as ________.

A) competitive
B) symbiotic
C) supervisory
D) corrupt

Question 66

What is the purpose of the Foreign Corrupt Practices Act (FCPA)?

A) It prohibits the offering of bribes to any foreign government official.
B) It protects individuals from human rights abuses.
C) It inspects working conditions of factories in developing countries.
D) It prohibits conflicts of interest among employees of international businesses.

Question 67

An individual's personal beliefs regarding whether a decision, behavior, or action is right or wrong is known as ethics.

Question 68

The primary purpose of the International Labor Organization (ILO)is to ________.

A) minimize the use of child labor by MNEs
B) eliminate extortion in international business transactions
C) monitor working conditions of factories in developing countries
D) prohibit conflicts of interest among employees of international businesses

Question 69

According to the model developed by Rob van Tulder and Alex van der Zwart, what is the key to the Continental European Approach?

A) consumer demands for quality products and services
B) cooperation between labor, business, and government
C) competition to encourage consumer market expansion
D) oversight by nongovernmental organizations

Question 70

The primary reason for the existence of a business is to create value.

Question 71

Which regulation attempts to eliminate bribes in international business transactions?

A) Foreign Corrupt Practices Act
B) Helms-Burton Act
C) Alien Tort Claims Act
D) the Anti-Bribery Convention of the OECD
E) Disclosure of Conflict Act

Question 72

Browning Enterprises is planning to conduct a corporate social audit. Which of the following would LEAST likely occur during the audit?

A) defining current social responsibility goals
B) gathering social goal data from shareholders
C) assessing the accomplishment of social goals
D) analyzing social responsibility resource distribution

Question 73

Many U.S. firms move production and low-skill jobs to developing countries to reap the benefits of low labor costs, favorable public relations, and clear-cut business practices.

Question 74

Which of the following best explains why international factory owners would most likely want regular ILO inspections?

A) eliminate workplace corruption
B) encourage investments from MNEs
C) comply with World Trade Organization
D) earn reductions in exporting taxes and fees

Question 75

What organization is the major watchdog for monitoring working conditions in factories in developing countries?

A) International Labor Organization
B) Human Rights Campaign
C) Organization for Economic Cooperation and Development
D) World Trade Organization

Question 76

Individuals convicted under the Anti-Bribery Convention of the Organization for Economic Cooperation and Development will most likely be required to ________.

A) pay a fine
B) serve time in jail
C) surrender their passport
D) admit to a conflict of interest

Question 77

According to the model developed by Rob van Tulder and Alex van der Zwart, which of the following best exhibits the cultural values of a nation's citizens?

A) the state
B) the market
C) civil society
D) competitors

Question 78

What is the purpose of the Alien Tort Claims Act?

A) It protects individuals from human rights abuses.
B) It eliminates bribery in international business transactions.
C) It inspects working conditions of factories in developing countries.
D) It prohibits conflicts of interest among employees of international businesses.

Question 79

Which regulation seeks to protect individuals from human rights abuses and holds MNCs accountable for such abuses?

A) Foreign Corrupt Practices Act
B) Helms-Burton Act
C) Alien Tort Claims Act
D) Disclosure of Conflict Act

Question 80

Ethics is an organizational concept, not an individual one.