Deck 2: Managing Interdependence Social Responsibility and Ethics

Question 1

Consensus on what should constitute moral and ethical behavior is emerging because of ________.

A) a global corporate culture
B) American ethical values
C) an increase in regional variation
D) pressure from religious leaders

Answer 1

A

Question 2

U.S. firms are most likely to implement corporate social responsibility by ________.

A) fulfilling business obligations
B) suggesting social changes
C) engaging in nationalization
D) using forms of expropriation

Answer 2

A

Question 3

The most significant issue raised by the Primark situation is that ________.

A) organizational culture determines the success or failure of most international firms
B) corporate social responsibility must factor into a firm's culture and strategy
C) CEOs cannot avoid their social responsibilities without facing penalties
D) panic during an economic crisis leads to disruptions in service

Answer 3

B

Question 4

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) corporate social responsibility
B) global corporate culture
C) corporate code of conduct
D) moral universalism

Question 5

Issues of social responsibility continue to center on all of the following EXCEPT ________.

A) military industrial complexes
B) unequal opportunities
C) consumer concerns
D) employee safety issues

Question 6

The criticisms of MNCs have been lessened in recent years for all of the following reasons EXCEPT ________.

A) decreasing economic differences among countries
B) decreasing public concern about environmental issues
C) increasing emphasis on social responsibility by multinationals
D) increasing numbers of multinationals from less developed countries

Question 7

A firm's concern towards the community, workers, and environment in which it operates is known as ________.

A) international sustainable development
B) corporate social responsibility
C) international business ethics
D) cultural sensitivity

Question 8

The concept of international social responsibility is the expectation that MNCs concern themselves about ________ effects of their decisions regarding activities in other countries.

A) philosophical
B) competitive
C) cultural and religious
D) social and economic

Question 9

Some argue that MNCs have a positive impact on less developed countries in all of the following ways EXCEPT by ________.

A) providing managerial training
B) providing investment capital
C) improving infrastructure
D) sharing profits

Question 10

In regards to corporate social responsibility, firms are described as ________ because their actions swing between making a profit and solving societal problems.

A) socially reactive
B) environmentally sensitive
C) professionally committed
D) ecologically proactive

Question 11

The primary dilemma that Del Monte managers in Kenya face is whether to ________.

A) pay the prevailing low wages to farmers or to pay higher wages
B) provide company transportation to workers or to let them use their own means
C) use rich coastal lands for growing pineapples or to leave the land for subsistence farming
D) train locals to manage the pineapple farming or to continue using managers from the home country

Question 12

Firms with operations overseas are most likely to deal effectively with cross-cultural CSR dilemmas by ________.

A) translating the firm's ethics code into different languages
B) adopting local customs regarding worker treatment
C) establishing labor standards for suppliers
D) using only home-country managers

Question 13

Which of the following terms refers to the expectation that MNCs should be concerned about the social and economic effects of their decisions regarding activities in other countries?

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

Question 14

A global corporate culture has most likely occurred as a result of ________.

A) corporate-level organizational boundaries
B) internationally linked securities markets
C) micropolitical risk events
D) multimedia pressures

Question 15

A firm that follows an ethnocentric approach applies the morality used by which of the following?

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

Question 16

What is the difference between ethics and social responsibility?

A) Ethics deals with decisions made at an individual level.
B) Ethics is mandated by international regulations and laws.
C) Social responsibility relates to low-level, narrow issues.
D) Social responsibility focuses only on an individual's actions.

Question 17

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

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

Question 18

Which of the following is LEAST likely to assert pressure on managers regarding a firm's social responsibility and ethical behavior?

A) public interest groups
B) government agencies
C) industry competitors
D) media reporters

Question 19

According to research, what is the most significant monetary benefit for firms that implement corporate social responsibility?

A) employee retention
B) high recruitment rates
C) increased brand value
D) improved organizational culture

Question 20

Which of the following significantly increases the complexity of corporate social responsibility for MNCs?

A) distance between the home office and the subsidiaries
B) difficult nature of training managers in different cultures
C) additional stakeholders associated with the firm's activities
D) international laws, regulations, and moral principles

Question 21

Which of the following statements is most likely NOT true?

A) American managers treat everyone the same by making moral judgments based on general rules.
B) Managers in Japan and Europe make ethical decisions based on shared values and social ties.
C) American, Canadian, and British managers exhibit similar ethical practices.
D) Japanese and Australian managers practice the highest ethical standards.

Question 22

Which of the following best describes SA8000?

A) a group of 8000 manufacturers in South Asia who support an increase in the minimum wage rate
B) a social accountability index fashioned around the manufacturing quality standard ISO9000
C) a code classification system for South Asian garment exporters
D) a social accountability index for the electronics industry

Question 23

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

A) international committee that monitors electronic data privacy laws
B) German non-governmental organization that fights corruption
C) American non-profit organization that argues for workplace equality
D) non-profit group that raises awareness about human rights violations in China

Question 24

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, 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.

Question 25

The international codes of conduct were developed by all of the following groups EXCEPT the ________.

A) Organization for Economic Cooperation and Development
B) International Chamber of Commerce
C) Council of Economic Priorities
D) International Labor Organization

Question 26

Which of the following is NOT addressed by the Electronic Industry Code of Conduct?

A) excessive overtime
B) quality control
C) working conditions
D) child and forced labor

Question 27

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 behavior standards
C) corruptions within legal organizations
D) differences in worldwide religions

Question 28

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

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

Question 29

All of the following are significant problems faced by MNCs operating in China EXCEPT ________.

A) protecting intellectual property
B) training workers for service jobs
C) correcting human rights violations
D) working within an uncertain legal climate

Question 30

Which of the following receives the most publicity regarding human rights violations?

A) Brazil
B) Africa
C) Mexico
D) Asia

Question 31

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 32

If McDonald's applies the morality it practices in the United States to all foreign countries in which it operates, then McDonald's is most likely adhering to ________.

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

Question 33

Which of the following is NOT required under the Anti-Sweatshop Code of Conduct?

A) Forced labor, abuse, and discrimination are banned.
B) Firms must provide healthy work environments.
C) Firms must agree to regular inspections by OSHA.
D) Firms must pay at least the prevailing local minimum wage.

Question 34

According to Robertson and Crittenden, which of the following is a societal factor in a host environment that affects the strategic decisions made by international managers?

A) corporate culture
B) historic tradition
C) natural resources
D) political stability

Question 35

According to many U.S. executives, there is little difference in ethical practices among which of the following?

A) United States, Canada, Mexico
B) Northern Europe, Australia, Canada
C) United States, Canada, Northern Europe
D) Germany, France, United Kingdom

Question 36

What is the ethical and moral issue that raises the most concerns for global firms that conduct business with China?

A) China's environmental policies
B) China's economic protectionism
C) China's violation of human rights
D) China's fluctuating leadership

Question 37

Which of the following terms refers to the business conduct or morals of MNCs in their relationships to all individuals and entities with whom they come in contact when conducting business overseas?

A) global corporate culture
B) ethical relativism
C) moral universalism
D) international business ethics

Question 38

Which sector of China's economy is growing at the fastest rate?

A) financial services
B) telecommunication
C) pharmaceutical
D) manufacturing

Question 39

All of the following are SA8000 proposed global labor standards that would be monitored by outside organizations EXCEPT ________.

A) providing a safe working environment
B) requiring employers to provide health benefits
C) respecting workers' rights to form labor unions
D) paying wages sufficient to meet workers' basic needs

Question 40

According to the international codes of conduct, MNE behavior towards the host government relates to which three issues?

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

Question 41

What was the primary purpose of the Organization for Economic Co-operation and Development Convention on Bribery?

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

Question 42

In Japan, corporate social responsibility has traditionally meant that the company ________.

A) follows what its competitors are doing
B) follows the example of the government
C) donates to charitable organizations
D) takes care of its employees

Question 43

According to Transparency International's 2007 Global Corruption Barometer for the business sector, which of the following countries is the LEAST corrupt?

A) United States
B) Singapore
C) Germany
D) Japan

Question 44

According to Transparency International's 2007 Global Corruption Barometer for the business sector, which of the following countries is the MOST corrupt?

A) Serbia
B) Brazil
C) Chile
D) Nigeria

Question 45

Richard Rhodes, CEO of Rhodes Architectural Stone, makes a number of recommendations regarding how to deal with ethical situations overseas. Which of the following is NOT one of his recommendations?

A) Refuse to pay bribes at all times.
B) Accept that some issues are neither black nor white.
C) Do not conduct business with entities that use child labor.
D) Do not conduct business with entities that mistreat women.

Question 46

Which of the following statements about the Foreign Corrupt Practices Act (FCPA) is NOT true?

A) The FCPA allows "grease payments' as long as they are lawful in the host country.
B) Possible penalties for violating the FCPA include severe fines and imprisonment.
C) The FCPA allows firms to give government officials gifts in exchange for help.
D) The FCPA applies only to U.S.-based multinational corporations.

Question 47

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 48

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

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

Question 49

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 process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage

Question 50

Tokens of appreciation, grease money, and kickbacks are considered ________.

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

Question 51

Criticism against MNCs has primarily regarded their ________.

A) attempts to impose moral standards
B) dealings with foreign governments
C) activities in less developed countries
D) disregard towards the environment

Question 52

Which of the following statements NOT true?

A) Bribery of public officials is prohibited by law in all countries.
B) Bribery is common in parts of Africa and south and east Asia.
C) Bribery occurs to expedite routine transactions and to persuade politicians.
D) Bribery occurs only in less developed countries to supplement low incomes.

Question 53

John is an American manager working 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 54

Which of the following is NOT recommended to international managers when they face decisions about questionable business practices?

A) Consult the International Codes of Conduct for MNEs.
B) Consult the generally accepted practices in the host country.
C) Consult the laws of both the home and host country.
D) Consult the company's code of ethics.

Question 55

MNCs assets located in host countries face the risk of all of the following EXCEPT ________.

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

Question 56

All of the following are criticisms of multinational corporations EXCEPT that they ________.

A) begin their foreign operations by purchasing existing firms
B) increase demand for luxury goods in host countries
C) stimulate too much demand for scarce resources
D) concentrate their R&D in host countries

Question 57

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 58

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

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

Question 59

Typical policies implemented by MNCs to confront concerns about ethical behavior include all of the following EXCEPT ________.

A) developing a worldwide code of ethics
B) integrating ethical policies into strategy development
C) assessing the firm's ethical posture on a regular basis
D) lobbying host governments to prosecute ethics violations

Question 60

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 61

What codes of conduct have been established to address human rights issues? What human rights issues do global managers face when working in China?

Question 62

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 63

Coca-Cola's operations in India suggests that international managers need to ________.

A) work with locals to develop innovative environmental solutions
B) consider the effects of MNC activities on the natural environment
C) investigate cultural, political, and economic risks more carefully
D) involve national governments in MNC ethics policy development

Question 64

Which of the following is NOT one of the three dimensions of sustainability?

A) social
B) economic
C) technological
D) environmental

Question 65

Explain the differences between moral universalism, ethnocentrism, and ethical relativism. Which approach is best and why?

Question 66

All of the following are methods that MNCs can implement to deal with an increasing scarcity of natural resources EXCEPT by ________.

A) looking for alternate raw materials
B) developing new methods of recycling
C) expanding the use of byproducts
D) limiting foreign direct investment

Question 67

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 68

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 69

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 questions is MOST relevant to the decision by Primo to remain in China?

A) To what extent does bribery affect decisions made by Primo's global managers in China?
B) What is done with the hazardous waste created by Primo's China manufacturing facility?
C) How does the local Chinese community benefit from Primo's manufacturing subsidiary?
D) What changes need to be made by Primo managers to show more respect for the Chinese culture?

Question 70

The two main exporters of pesticides are ________.

A) England and Germany
B) Canada and Mexico
C) United States and Taiwan
D) United States and Germany

Question 71

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 72

MNCs operating in developing countries should ensure that their activities ________.

A) do no intentional harm to the host country
B) alter the economic system of the host country
C) improve the existing culture of the host country
D) all of the above

Question 73

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 74

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

Question 75

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 76

What level of social responsibility is expected from domestic firms? What level is expected from international firms?

Question 77

What is the relationship between global corporate culture and moral universalism?

Question 78

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 79

Which of the following is NOT a typical bargaining chip of host governments in their dealings with MNCs?

A) operation of state-owned firms
B) regulations regarding taxes and permissions
C) control of raw materials and market access
D) possession of technology desired by the MNC

Question 80

What is the main reason why companies dispose of hazardous waste in less developed countries?

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