Deck 9: Ethics and Globalization

Question 1

From a business ethics perspective,the constant hunger for growth at any cost does not present an ethical dilemma.

Answer 1

False

Question 2

International markets represent growth,and with profitable growth comes happy shareholders and rising stock prices.

Answer 2

True

Question 3

Globalization is the expansion of international trade to a point,where regional trade blocs have overtaken national markets,leading eventually to a global marketplace.

Answer 3

True

Question 4

Business transactions in different countries do not force North American companies to revisit the ethical principles to which they are committed.

Question 5

Less-developed nations are countries that lack the economic,social,and technological infrastructure of a developed nation.

Question 6

The term globalization has the same meaning for both developed and less developed countries.

Question 7

Less-developed nations stereotypically know how to play the game of globalization.

Question 8

Multinational corporations are also referred to as crossnational corporations.

Question 9

Utilitarianism is ethical choices that offer the greatest good for a small portion of individuals within a nation.

Question 10

A multinational corporation is a company that operates across multiple national borders in the provision and sale of products and services.

Question 11

The term globalization only has applications in economic and political environments.

Question 12

The ideal "black and white" world of ethics must give way to a gray area of ethical relativism.

Question 13

The assumption that "what works here works there" has made several companies extremely wealthy over the years.

Question 14

Critics argue that most MNCs have chosen to ignore all ethical standards in the pursuit of the all mighty dollar.

Question 15

Developed nations typically have a low standard of living.

Question 16

When you focus on doing the greatest good for the greatest number of people,there is no accountability for individual actions.

Question 17

Less-developed countries lack the economic,social,and technological infrastructure of a developed nation.

Question 18

Critics have argued that most MNCs ignore all ethical standards in the pursuit of the almighty dollar because if they didn't pursue the business,somebody else would,and they are operating in full compliance with local laws and regulations.

Question 19

Any country that enjoys a high standard of living as measured by economic,social,and technological criteria is a developed nation.

Question 20

Ethical relativism exists when ethical principles are defined by the traditions of a person's society,his or her personal opinions,and the circumstances of the present moment.

Question 21

Globalization can be seen as having an upside only.

Question 22

At this time,only a handful of global companies are large enough to have a dramatic impact on trade levels just with their own internal transactions.

Question 23

The UN Global Compact is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four key areas of concern: the environment,anticorruption,the welfare of workers around the world,and global human rights.

Question 24

The Global Code of Conduct is a general standard of business practice that can be applied equally to all countries over and above their local customs and social norms.

Question 25

OECD Guidelines for Multinational Enterprises promote principles and standards of behavior in the areas of: human rights,information disclosure,anticorruption,taxation,labor relations,environment,competition,and consumer protection.

Question 26

The Global Compact is a regulatory instrument,which is relied upon to police,enforce,and measure the behavior or actions of companies.

Question 27

Global Citizenship represents a commitment to promote good corporate citizenship,with a focus on four key areas.

Question 28

In the pursuit of profit and continued expansion,MNCs have been guilty of bribery,pollution,false advertising,and questionable product quality.

Question 29

Critics have argued that the moral temptations of global expansion have grown weaker so MNCs tend to ignore them.

Question 30

Even though we are now seeing the development of larger trading blocs,as neighboring countries work together,the individual countries within those trading blocs are not disappearing.

Question 31

Under the labor standards of the Global Compact,businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Question 32

"Contribute to the host country's development" and "Respect the human rights of your employees" are two of the guidelines for organizations offered by Richard DeGeorge.

Question 33

"Do no intentional harm" is one of the guidelines for organizations offered by Richard DeGeorge.

Question 34

In 1999 the UN Global Compact became operational.

Question 35

Richard DeGeorge's guidelines present something of an ethical ideal that reveal some of the most severe transgressions which have brought negative attention to the ethical behavior of MNCs.

Question 36

The UN Global Compact is a voluntary corporate citizenship initiative endorsing 12 key principles that focus on five key areas of concern.

Question 37

For advocates of global ethics,a flexible solution has to be found,one that provide standards of practice to guide managers as they conduct business across national boundaries,while respecting the individual customs of the countries in which they are operating.

Question 38

Enforcing ethical behavior,once it crosses national boundaries,becomes extremely difficult.

Question 39

Under the anticorruption areas of concern of the Global Compact,businesses should work against all forms of corruption,including extortion and bribery.

Question 40

Enforcing a global ethical standard would require the United Nations to set acceptable standards of behavior and appropriate consequences for failing to abide by those standards.

Question 41

Social and political chaos can generate a bureaucracy that ______.

A)bears no relation to realty
B)is self-serving
C)has a communistic framework
D)will eventually self-destruct

Question 42

______ is where a person defines his or her ethical principles according to traditions of society,personal opinions,and the circumstances of the present moment.

A)Utilitarianism
B)Normative ethics
C)Descriptive ethics
D)Ethical relativism

Question 43

The OECD guidelines carry criminal and civil enforcement.

Question 44

The disclosure chapter of the OECD guidelines recommends disclosure on all material matters and encourages communication in areas where reporting standards are still emerging such as social,environmental,and risk reporting.

Question 45

The UN's Global Compact represents a more governmental approach to the same issues featured in the OECD Guidelines for Multinational Enterprises.

Question 46

A(n)_______ is a country that lacks a high standard of economic,social,and technological infrastructure.

A)developed nation
B)MNC
C)industrialized nation
D)less-developed nation

Question 47

A(n)______ enjoys a high standard of living.

A)developed nation
B)MNC
C)industrialized nation
D)less-developed nation

Question 48

A company that operates across multiple national boarders in the provision and sale of products and services is referred to as a ______.

A)conglomerate
B)international corporation
C)multinational corporation
D)translateral corporation

Question 49

The environment chapter of the OECD guidelines requires by law that enterprises raise their performance in protecting the environment.

Question 50

All of the following are arguments used to promote the downside of globalization,EXCEPT:

A)developing countries are ravaged for their raw materials.
B)globalization brings unprecedented improvements in wealth and standards of living.
C)workers are exploited.
D)corporations are free to take full advantage of less-restrictive legal environments.

Question 51

For less-developed nations,the concept of globalization ______.

A)has a similar meaning
B)has a different meaning
C)has the same meaning
D)has no meaning

Question 52

The assumption that "_______" has managed to get a lot of companies into hot water over the years.

A)what works there,works here
B)what works here,works there
C)it probably will not work,let us research it further
D)it did not work last time,we shouldn't try

Question 53

Any questionable behavior in overseas markets can be explained away using the concept of

A)utilitarianism
B)moral relativism
C)the golden rule
D)universal ethics

Question 54

Globalization can be seen to have ______.

A)an upside
B)a downside
C)an upside and a downside
D)an upside only

Question 55

International markets represent all of the following,EXCEPT _____.

A)growth
B)falling stock prices
C)sources of cheaper resources
D)cheap labor

Question 56

_____ is the expansion of international trade to a point where national markets have been overtaken by regional trade blocs,leading eventually to a global marketplace.

A)Utilitarianism
B)Developmentalism
C)Globalization
D)Relativism

Question 57

______ nations are countries that enjoy a high standard of living as measured by economic,social,and technological criteria.

A)Less-developed
B)Developing
C)Developed
D)Less-industrialized

Question 58

Multinational corporations are also referred to as ______.

A)conglomerates
B)international corporations
C)a multilateral corporations
D)transnational corporations

Question 59

Critics have argued that most MNCs ignore all ethical standards in the pursuit of the almighty dollar because

A)if they didn't pursue the business,somebody else would
B)there are no local laws and regulations.
C)if they didn't pursue the business,the foreign economies will suffer
D)we do not care what are the local laws and regulations

Question 60

The term globalization has applications in all of the following,EXCEPT _____.

A)legal environment
B)economic environment
C)political environment
D)commercial environment

Question 61

______ is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four main areas of concern: the environment,anticorruption,the welfare of workers around the world,and global human rights.

A)Corporate Citizenship
B)Global Compact
C)Ethical Expatriatism
D)Global Fellowship

Question 62

A __________________________ is a country that lacks a high standard of economic,social,and technological infrastructure.

Question 63

Enforcing ethical behaviors once they cross national boundaries is ______.

A)extremely difficult
B)moderately difficult
C)slightly difficult
D)relatively easy

Question 64

_____________________ nations are countries that enjoy a high standard of living as measured by economic,social,and technological criteria.

Question 65

The _____ chapter of the OECD guidelines lays out specific recommendations,including provisions on human rights,sustainable development,supply chain responsibility,and local capacity building,and,more generally,it calls on enterprises to take full account of established policies in the countries in which they operate.

A)disclosure
B)Concepts and Principles
C)General Policies
D)Combating Bribery

Question 66

The ______ is a general standard of business practice that applies equally to all countries over and above their local customs and social norms.

A)universal accounting standards
B)global code of ethics
C)international cross border customs practices
D)the generally accepted business principles

Question 67

Critics have argued that the moral temptations of global expansion have simply been ______.

A)sturdy
B)feeble
C)too weak
D)too strong

Question 68

American corporations are accountable for ethical conduct in their home country under the

A)American Corrupt Practices Act
B)Global Corrupt Practices Act
C)International Corrupt Practices Act
D)Foreign Corrupt Practices Act

Question 69

The ____ represent(s)a more governmental approach to the same issues featured in the UN's nongovernmental Global Compact.

A)OECD Guidelines for Multinational Enterprises
B)World Bank guidelines
C)FOMC guidelines
D)Global Code of Conduct

Question 70

All of the following are principles of the Global Compact under the area of environment,EXCEPT _____.

A)businesses should support a precautionary approach to environmental challenges
B)businesses should undertake initiatives to promote greater environmental responsibility
C)businesses should encourage the development and diffusion of environmentally friendly technologies
D)businesses should work against all forms of corruption

Question 71

In the pursuit of profit and expansion,MNCs have been guilty of all of the following,EXCEPT:

A)bribery
B)pollution
C)the promotion of human rights
D)questionable product quality

Question 72

Richard DeGeorge's guidelines present a(n)______.

A)business model
B)realistic ethical framework
C)ethical ideal
D)ethical solution

Question 73

The OECD guidelines promote principles and standards of behavior in the all of the following areas,EXCEPT:

A)finance
B)human rights
C)labor relations
D)consumer protection

Question 74

The _____ chapter of the OECD guidelines presents the values which underlie the guiding principles,such as their voluntary character,their application worldwide,and the fact that they reflect good practice for all enterprises.

A)Disclosure
B)Concepts and Principles
C)General Policies
D)Combating Bribery

Question 75

Which of the following is NOT a guideline offered by Richard DeGeorge?

A)Seek an economic profit without breaking local laws
B)Respect the human rights of your employees
C)Produce more good than harm for the host country
D)Do no intentional harm

Question 76

The ______ is a governmental initiative endorsed by over 30 members and 9 non-members,promoting principles and standards of behavior in the following areas: human rights,information disclosure,anticorruption,taxation,labor relations,environment,competition,and consumer protection.

A)SEC guidelines
B)FOMC guidelines
C)OECD guidelines
D)World Bank guidelines

Question 77

In a speech to the World Economic Forum on January 31,1999,by UN Secretary General _______,the UN Global Compact became operational in July 2000.

A)Richard DeGeorge
B)Lester Thurow
C)Tom DiPietropolo
D)Kofi Annan

Question 78

If an organization is committed to ethical business conduct,that commitment should remain constant ______.

A)in developed countries
B)in its home country
C)wherever that business is conducted in the world
D)in countries with similar ethical beliefs

Question 79

In _____ the UN Global Compact became operational.

A)1953
B)1990
C)1999
D)2003

Question 80

For those advocates of global ethics,this means that a(n)______ solution has to be found,one that provides standards of practice to guide managers as they conduct business across national boundaries.

A)inflexible
B)strict
C)flexible
D)rigid