Deck 2: Managing Interdependence, Social Responsibility, and Ethics

Question 1

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

Answer 1

True

Question 2

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

Answer 2

B

Question 3

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.

Answer 3

True

Question 4

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

Question 5

Ethnocentric firms typically uses the same business practices in all cultures and markets.

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 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 8

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 9

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

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

Question 10

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

Question 11

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

Question 12

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 13

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

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

Question 14

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

Question 15

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 16

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

Question 17

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 18

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

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

Question 19

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 20

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 21

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 22

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 23

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 24

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 25

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 26

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 27

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 28

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 29

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 30

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 31

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

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

Question 32

Tokens of appreciation and grease money are considered ________.

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

Question 33

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.

Question 34

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 35

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 36

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 37

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 38

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 39

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 40

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 41

What are questionable payments? Why are they problematic for international managers?

Question 42

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

Question 43

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

Question 44

What employment practices should MNEs follow abroad according to the international codes of conduct?

Question 45

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

Question 46

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 47

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

Question 48

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

Question 49

What is the primary problem for MNCs that try to define organizational ethics?

Question 50

The Foreign Corrupt Practices Act (FCPA)allows 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 51

Globalization has increased the ethical problems facing organizations.

Question 52

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 United States
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 53

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

Question 54

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

Question 55

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 56

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

Question 57

What are the proposed global labor standards of SA8000?

Question 58

In a globalized market economy, CSR does not have to be part of modern business.

Question 59

According to the international codes of conduct, how should MNEs handle technology transfer overseas?

Question 60

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 61

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 62

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 63

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 64

________ 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 65

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 66

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 67

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 68

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 69

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 70

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 71

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 72

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 73

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 74

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 75

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 76

________ 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 77

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 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 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 80

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