Deck 2: Managing Interdependence, Social Responsibility, and Ethics

Question 1

In recent years,which of the following has lessened the criticisms of MNCs?

A) increasing economic differences among countries
B) greater emphasis on social responsibility by MNCs
C) limited emphasis on social responsibility and ethical behavior
D) dissolution of MNCs in developing countries

Answer 1

B

Question 2

Moral universalism is the need for a moral standard that is accepted by all ________.

A) corporations
B) governments
C) cultures
D) employees

Answer 2

C

Question 3

Primo is a multinational enterprise based in California that manufactures and sells affordably priced athletic shoes in retail stores around the world.A Primo manufacturing subsidiary in China employs over 20,000 locals.Primo executives recently learned of human rights violations at the firm's China subsidiary.Workers had been forced to work more than 60 hours each week and minimum wage laws were regularly ignored.As a result,Primo executives need to decide if operations in China should be discontinued. Which of the following,if true,would best support a decision by Primo to remain in China?

A) Primo becomes SA8000 certified.
B) Sales of Primo's competitors drop sharply.
C) U.S. manufacturing jobs decrease in number.
D) More service sector jobs become available in China.

Answer 3

A

Question 4

According to the international codes of conduct,the MNE behavior toward the host government is related to ________.

A) economic and developmental policies, laws and regulations, and political involvement
B) political involvement, technology transfer, and environmental protection
C) political involvement, communication practices, and laws and regulations
D) laws and regulations, technology transfer, and communication practices

Question 5

Which of the following significantly increases the complexity of social responsibility and ethical behavior of MNCs?

A) distance between the headquarters and the subsidiaries
B) difficulties posed in training managers from different cultures
C) additional stakeholders associated with the firm's activities
D) international laws, regulations, and moral principles

Question 6

McDonald's,a fast food chain headquartered in the United States,applies the morality it practices in the United States to all foreign countries in which it operates.McDonald's is adhering to ________.

A) moral universalism
B) ethical relativism
C) ethnocentrism
D) geocentrism

Question 7

Which of the following is one of the standards of SA8000?

A) reducing environmental footprints
B) providing a safe work environment
C) not allowing workers to unionize
D) regularly require more than 48-hour workweeks

Question 8

Which of the following terms refers to an integration of the business environments in which firms currently operate,resulting from a dissolution of traditional boundaries and from increasing links among MNCs?

A) operative culture
B) global corporate culture
C) corporate integration
D) moral universalism

Question 9

Sundew,an American soda company,opened a number of manufacturing units in a developing country.It employed people from the host country to work in the new units.This move radically lowered the poverty rate in the developing country.In this scenario,Sundew is ________.

A) making questionable payments
B) following moral guidelines
C) making a foreign investment
D) adopting local customs

Question 10

The Anti-Sweatshop Code of Conduct requires companies to provide a healthy and safe work environment and ________.

A) to differentiate on the basis of gender
B) to pay the prevailing local minimum wage
C) to reduce environmental footprints
D) to employ forced labor when the situation demands it

Question 11

With an ethnocentric approach,a company applies the morality used in its ________.

A) host nation
B) industry
C) general society
D) home country

Question 12

According to the international codes of conduct,MNEs should ________.

A) resolve disputes according to the domestic law of the home country
B) dominate the capital markets in which their operations are based
C) use inexpensive, imported sources for components and raw materials
D) conduct research and development activities in developing countries

Question 13

Which of the following concepts includes the expectation that MNCs should be concerned with the social and economic effects of their decisions?

A) macropolitical interdependence
B) international social responsibility
C) corporate technoglobalism
D) moral idealism

Question 14

Which of the following is a business benefit from corporate social responsibility?

A) revenue decreases
B) cost increases
C) increase in brand value
D) risk assessment

Question 15

Creating Shared Value(CSV)creates ________.

A) economic value by creating shared value
B) social value by increasing shared value
C) economic value by creating social value
D) social value by increasing market value

Question 16

According to the international codes of conduct,the MNE behavior toward the public is related to ________.

A) technology transfer and environmental protection
B) development policies
C) economic and developmental policies
D) laws and regulations

Question 17

Which of the following creates shared value?

A) creating social value by creating economic value
B) disabling local cluster development
C) reconceiving products and markets
D) creating economic value by creating social value

Question 18

Which of the following often forces the MNC to act in accordance with ethnocentric value systems?

A) moral universalism
B) environmental policies in the home country
C) public pressure in the home country
D) media pressure

Question 19

Which of the following is a policy of the Electronic Industry Code of Conduct (EICC)?

A) Excessive overtime can be propagated if it benefits the company.
B) Child labor can be allowed when there is a shortage of employees.
C) Contract manufacturers should follow some basic environmental requirements.
D) Factory inspection should be limited to the headquarters.

Question 20

A company subscribing to ethical relativism would implement the morality of the ________.

A) host country
B) shareholders
C) legal system
D) home country

Question 21

According to international codes of conduct,which of the following is related to the MNE behavior toward persons?

A) political involvement
B) employment practices
C) environmental protection
D) laws and regulations

Question 22

Which of the following is considered the primary problem for MNCs attempting to define their corporate-wide ethics?

A) inconsistencies among international laws
B) variations in ethical standards around the world
C) corruption within legal organizations
D) differences in worldwide religions

Question 23

Which of the following is the last step of making an ethical decision?

A) consulting your superiors if you still need clarification
B) following your own conscience and moral code
C) consulting the company's code of ethics and established norms
D) weighing stakeholders' rights

Question 24

The FCPA allows "grease" payments to facilitate business in a foreign country,if ________.

A) the purpose of payment is beneficial to the home country
B) the purpose of payment is beneficial to the company
C) those payments are lawful in that country
D) those payments are a small amount compared to the revenue generated

Question 25

Payments to expedite routine transactions are often referred to as ________.

A) slotting fees
B) grease money
C) gray funds
D) expropriation

Question 26

Which of the following is the first step of making an ethical decision?

A) consulting the International Codes of Conduct for MNEs
B) consulting the superiors if clarification is sought
C) consulting the company's code of ethics and established norms
D) consulting the laws of both the host and the home countries

Question 27

According to Robertson and Crittenden,which of the following has made integrating an ethical component into international strategic decisions,challenging?

A) corporate ethics
B) cultural constraints
C) natural resources
D) political stability

Question 28

The Foreign Corrupt Practices Act of 1977 was primarily established to ________.

A) distinguish between harmless customs and actual bribery
B) combat corruption initiated by electronics firms and their subsidiaries
C) provide managers with anonymous methods for reporting bribery
D) prosecute international extortionists under the U.S. legal system

Question 29

According to international codes of conduct,which of the following is related to the MNE behavior toward persons?

A) consumer protection
B) environmental protection
C) political involvement
D) technology transfer

Question 30

Transparency International is best described as a(n)________.

A) international committee that monitors electronic data privacy laws
B) nongovernmental organization that fights corruption
C) nonprofit organization that argues for workplace equality
D) nonprofit group that raises awareness about human rights violations

Question 31

Which of the following is a primary focus of the research that is carried out by Transparency International?

A) relative prevalence of bribery in various spheres of people's lives
B) existence of child labor in various developing countries
C) relative prevalence of dictatorship in various countries
D) existence of bonded labor in various countries

Question 32

John,an American national,works as a manager at his firm's subsidiary in Indonesia.A local government official tells John that materials could be delivered to the firm's facility more quickly if John pays an extra fee to the port supervisor.What should be John's first action?

A) consult his supervisor in the U.S.
B) discuss the issue with his local agent
C) refer to the company's code of ethics
D) consult both American and Indonesian laws

Question 33

Which of the following was the primary purpose of the Organization for Economic Cooperation and Development Convention on Bribery?

A) to establish bribery laws
B) to quantify global corruption
C) to combat corporate corruption
D) to protect corporate bribery whistleblowers

Question 34

Which of the following shows that employees have understood,and signed off on,the legal obligations regarding bribery and corruption in the countries where they do business?

A) having global interdependence
B) having a global compliance system
C) adhering to globalization
D) adhering to commercialization

Question 35

Which of the following is dedicated to monitoring issues of data privacy in Europe?

A) the Telecommunications Data Protection directive
B) the EU Data Retention Directive
C) the EU Directive of Data Protection
D) the Privacy and Electronic Communications EC Directive

Question 36

Tokens of appreciation and grease money are considered ________.

A) cultural reward systems
B) questionable payments
C) sales commissions
D) business expenses

Question 37

One of the primary complaints about the Foreign Corrupt Practices Act is that the legislation ________.

A) puts U.S. firms at a competitive disadvantage
B) fails to enforce equal punishments on U.S. firms
C) encourages U.S. managers to hire local agents
D) requires U.S. firms to adhere to host country laws

Question 38

Which of the following prohibits U.S.companies from making illegal payments or other gifts or political contributions to foreign government officials for the purposes of influencing them in business transactions?

A) Sherman Antitrust Act
B) Robinson-Patman Act
C) Wagner Corruption Act
D) Foreign Corrupt Practices Act

Question 39

According to international codes of conduct,which of the following is related to the MNE behavior toward persons?

A) human rights
B) laws and regulations
C) development policies
D) political involvement

Question 40

________ refers to the business conduct or morals of MNCs in their relationships with individuals and entities.

A) Global corporate culture
B) Ethical relativism
C) Moral universalism
D) International business ethics

Question 41

Under governmentalism,the government uses its policy-setting role to favor the interests of ________.

A) a national company
B) the nation
C) a foreign company
D) foreign investors

Question 42

Global interdependence creates demands on international managers to take a positive stance on issues of social responsibility and ethical behavior.

Question 43

In recent years,the export of hazardous wastes from developed countries to less developed ones has ________.

A) decreased considerably
B) remained about the same
C) increased significantly
D) been banned by the EU

Question 44

Which of the following terms refers to adopting business strategies and activities that meet the needs of the enterprise and its stakeholders today,while protecting,maintaining,and enhancing the human and natural resources that will be needed in the future?

A) privatization
B) protectionism
C) sustainability
D) technoglobalism

Question 45

Which of the following is the main reason why companies dispose hazardous wastes in less developed countries?

A) international agreements
B) weak regulations and low costs
C) advanced waste disposal plants
D) large amounts of available land

Question 46

If MNCs want to take the lead in dealing with ecological interdependence,then they most likely need to ________.

A) comply with international environmental regulations
B) incorporate sustainability goals into strategic planning
C) invest all profits into recycling and renewing resources around the world
D) work with foreign governments to draft global environmental protection legislation

Question 47

________ is a systems view in which one seeks to optimize the total materials cycle from virgin material,to finished material,to component,to product,to obsolete product,and to ultimate disposal.

A) Industrial engineering
B) Ecological succession
C) Ecological shadow
D) Industrial ecology

Question 48

Which of the following terms refers to the practice by a country of rallying public opinion in favor of national goals and against foreign influences?

A) nationalism
B) privatization
C) protectionism
D) governmentalism

Question 49

________ lies at the intersection of financial,social,and environmental health--sometimes described as the "triple bottom line."

A) Sustainability
B) Technoglobalism
C) Protectionism
D) Privatization

Question 50

________ model provides a system for examining,measuring,and managing the drivers of corporate sustainability.

A) Epstein's
B) Buhovac's
C) Willard's
D) Atkisson's

Question 51

Which of the following best defines the concept of managing interdependence?

A) the effective management of a long-term, MNC subsidiary-host-country relationship through cooperation and consideration for host concerns
B) the process by which international managers accept and enact their role in the preservation of ecological balance on the earth
C) the process by which a firm grants the rights to a firm in the host country to produce or sell a product
D) the effective development of strategies that involve designing and operating systems, and working with people around the world to ensure sustained competitive advantage

Question 52

Which of the following MNC subsidiary activities is blamed for rising interest rates in host countries?

A) transferring in inappropriate technology
B) dissolving local labor unions
C) raising capital from local sources
D) filling key jobs with expatriates

Question 53

Under governmentalism,the government uses its policy-setting role to favor national interests,rather than relying on ________.

A) market forces
B) stockholder interests
C) competitive analysis
D) environmental standards

Question 54

Primo is a multinational enterprise based in California that manufactures and sells affordably priced athletic shoes in retail stores around the world.A Primo manufacturing subsidiary in China employs over 20,000 locals.Primo executives recently learned of human rights violations at the firm's China subsidiary.Workers had been forced to work more than 60 hours each week,and minimum wage laws were regularly ignored.As a result,Primo executives need to decide whether to continue operations in China. Which of the following is MOST relevant to the decision by Primo to remain in China?

A) the extent of effect that bribery has on decisions made by Primo's global managers in China
B) the methods of dealing with the hazardous waste created by Primo's China manufacturing facility
C) the benefits that the local Chinese community might have
D) the changes that need to be made by Primo managers to show more respect for the Chinese culture

Question 55

The profitability of individual companies depends on a cooperative and constructive attitude toward ________.

A) moral idealism
B) macropolitical interdependence
C) global interdependence
D) corporate technoglobalism

Question 56

Which of the following is most likely a benefit to host countries with MNC operations?

A) risk sharing
B) export diversification
C) decrease of local capital
D) creation of assembly-only plants

Question 57

Social responsibility,ethical behavior,and interdependence are important concerns to be built into ________.

A) economic control
B) management control
C) corporate sustainability
D) moral idealism

Question 58

Which of the following concepts requires that an industrial system be viewed not in isolation from its surrounding systems,but in concert with them?

A) industrial ecology
B) industrial engineering
C) ecological succession
D) ecological shadow

Question 59

Which of the following terms refers to a country's use of tariff and nontariff barriers to partially or completely close its borders to various imported products that would compete with domestic products?

A) nationalism
B) privatization
C) protectionism
D) governmentalism

Question 60

Which of the following is a potential benefit to the host country of MNC operation?

A) increased competition for local scarce capital
B) competition for scarce skills
C) increased interest rates as supply of local capital decreases
D) infrastructure development and support

Question 61

The term "moral idealism" is used to address the need for a moral standard that is accepted by all cultures.

Question 62

The sales,debts,and resources of some of the largest multinational firms exceed the gross national product,the public and private debt,and the resources,respectively,of some nations.

Question 63

When managing interdependence,international managers must go beyond general issues of social responsibility and deal with the specific concerns of the MNC subsidiary--host country relationship.

Question 64

In a globalized market economy,CSR has to be part of modern business.

Question 65

Social responsibility deals with decisions and interactions mostly on an individual level.

Question 66

The biggest single problem for MNCs in their attempt to define a corporate-wide ethical posture is the great variation of ethical standards around the world.

Question 67

Globalization has reduced the ethical problems facing organizations.

Question 68

Ethnocentric culture is an integration of the business environments in which firms currently operate.

Question 69

Under governmentalism,the government uses its policy-setting role to favor national interests,rather than relying on market forces.

Question 70

Under nationalism,the host institutes a partial or complete closing of borders to withstand competitive foreign products,using tariff and nontariff barriers.

Question 71

Under protectionism,public opinion is rallied in favor of national goals and against foreign influences.

Question 72

Creating Shared Value (CSV)leverages the unique resources and expertise of the company to create social value by creating economic value.

Question 73

What is the difference between ethics and social responsibility? What are some of the social responsibility issues that MNCs must consider?

Question 74

Global corporate culture refers to the business conduct or morals of MNCs in their relationships with individuals and entities.

Question 75

The difference between social responsibility and ethical behavior is a matter of scope and degree.

Question 76

Improved customer attraction and retention; improved reputation; and improved employee recruitment,motivation,and retention are business benefits of corporate social responsibility.

Question 77

The Foreign Corrupt Practices Act (FCPA)prohibits U.S.companies from making illegal payments,other gifts,or political contributions to foreign government officials for the purpose of influencing them in business transactions.

Question 78

Ethical relativism adopts the local moral code of the country in which it is operating.

Question 79

The increased complexity regarding the social responsibility and ethical behavior of firms across borders is brought about by the distance between the headquarters and its subsidiaries.

Question 80

Decisions about ethics tend to be made at a higher level,affect more people,and reflect a general stance taken by a company or a number of decision makers.