Deck 5: Ethics and Social Responsibility in International Business

Question 1

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

A) advertising
B) working conditions
C) insurance benefits
D) employee skills

Answer 1

B

Question 2

________ are the things a person feels to be important.

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

Answer 2

A

Question 3

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 3

A

Question 4

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

Question 5

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 6

What are ethics? How does culture affect ethics for global organizations?

Question 7

Ethics is an organizational concept, not an individual one.

Question 8

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 9

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 10

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

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

Question 11

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

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

Question 12

What constitutes ethical behavior varies from person to person.

Question 13

Ethical beliefs are primarily ________ in nature.

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

Question 14

Ethical behavior typically conforms to accepted social norms.

Question 15

Circumstances have a significant influence on an individual's behavior.

Question 16

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

A) occupation
B) peers
C) social trends
D) television

Question 17

Values influence how individuals define ethical versus unethical behavior.

Question 18

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 19

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) Gift exchanges are a more important way of doing business in high-context cultures.
C) Belonging to a group is important to the Asian culture.
D) Individuals may not always be consistent with their beliefs.

Question 20

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

Question 21

Consider the use of child labor from the perspective of a person from a developed country and from the perspective of person from a developing country. How might the two views differ? Why?

Question 22

Why is gift exchange in business relationships more common in high-context, power-respecting cultures than in low-context, power-tolerant cultures?

Question 23

Bribery is common in China and Russia but is considered unacceptable in Kenya and South Korea.

Question 24

Studies indicate that despite the widespread nature of bribery in China, the corrupt behavior has no noticeable impact on the country's GDP.

Question 25

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 26

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 27

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

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

Question 28

Accepting gifts in a business relationship is unethical behavior in any country.

Question 29

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

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

Question 30

HR at APEX Designs, an international architectural firm noticed the following behaviors among employees lately. Which of the following would most likely be considered a problematic ethical situation at APEX?

A) bringing office supplies from home
B) making business calls during work time
C) padding company expense accounts
D) working overtime

Question 31

In some countries small bribes are considered a normal part of doing business.

Question 32

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 33

Low-context cultures are more likely to exchange gifts in a business context.

Question 34

Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the United States 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 and ethical practices
D) global marketing methods

Question 35

According to a survey on the acceptability of bribing officials when doing business in foreign countries, which of the following was the most tolerant of bribery?

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

Question 36

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

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

Question 37

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 38

Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the United States 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 39

Which of the following is a common method for encouraging ethical behavior among employees?

A) codes of ethics
B) promoting religion in the workplace
C) public admonishment
D) highlighting the failures of competitive companies

Question 40

In a survey on the acceptability of bribing officials when doing business in foreign countries, which country found bribery most unacceptable?

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

Question 41

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 42

What is a code of ethics? What are the characteristics of an effective code of ethics?

Question 43

How do multi-national firms manage the ethical behavior of employees and maintain social responsibility towards organizational stakeholders?

Question 44

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 45

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) stakeholders

Question 46

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 47

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 48

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

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

Question 49

Which of the following is one of the main groups of stakeholders that firms usually focus on?

A) competitors
B) customers
C) the government
D) the general public

Question 50

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 51

Research indicates that as much as 50 percent of the world's diamonds are smuggled "conflict diamonds."

Question 52

Companies that are socially responsible to their investors do which of the following?

A) provide appropriate information to shareholders and investors
B) fail to use corporate resources judiciously
C) thwart appropriate accounting procedures
D) manipulate stock prices

Question 53

Why is it important for top management to demonstrate ethical behavior?

Question 54

Social responsibility is the set of obligations an organization undertakes to protect and enhance the society in which it functions.

Question 55

What is ethical compliance? How can global firms improve the ethical compliance of their employees?

Question 56

Codes of ethics are one of the most common methods of addressing appropriate ethical behavior within organizations.

Question 57

The primary purpose of the Kimberley Process is to eliminate the smuggling and corruption associated with the South African diamond industry.

Question 58

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 59

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 60

What is social responsibility? What are the three main groups a global firm targets with its social responsibility efforts?

Question 61

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 62

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 63

A company with a defensive stance to social responsibility will do everything that is required of it legally but nothing more.

Question 64

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 65

Which of the following is an informal dimension of social responsibility?

A) acts of philanthropic giving
B) employment applications
C) public relations
D) organizational culture

Question 66

Firms that view themselves as citizens in a society and are proactive about finding ways to contribute to it are taking an accommodative stance towards social responsibility.

Question 67

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 68

Companies can manage social responsibility using formal and informal tools.

Question 69

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 70

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 71

Whistle-blowing refers to disclosing illegal or unethical conduct on the part of individuals within an organization.

Question 72

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 73

Philanthropic giving is an example of an informal tool to manage social responsibility.

Question 74

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 75

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 76

Merck Pharmaceuticals has exhibited philanthropy by providing free medication to individuals in developing countries for the treatment of river blindness.

Question 77

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 78

How do organizations that are socially responsible treat their workers? What international organizations monitor the treatment of workers?

Question 79

Large German firms typically negotiate with labor organizations under the oversight of the German government.

Question 80

When tobacco companies make a decision to follow laws regarding the marketing of its products in the United States but market its tobacco aggressively in countries without such regulations, this 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