Deck 3: Ethics, Social Responsibility, and Sustainability

Question 1

Many NGOs recognize that MNCs fail to adhere to high standards of social and environmental responsibility in host countries' markets.

Answer 1

False
Explanation: Many NGOs recognize that MNCs can have positive impacts on the countries in which they do business, often adhering to higher standards of social and environmental responsibility than local firms. In fact, MNCs may be in a position to transfer "best practices" in social or environmental actions from their home to host countries' markets.

Question 2

The existence of equal opportunity in French and German law guarantees that equal opportunity initiatives will be implemented.

Answer 2

False
Explanation: The existence of equal opportunity in French and German law does not guarantee that equal opportunity initiatives will be implemented. It is a difficult journey as women attempt to make their mark in the workplace, but soon it may be possible for them to break through the glass ceiling.

Question 3

Kantian moral analysis accepts consequences (either conceivable or likely)as morally irrelevant when evaluating the choice of an agent.

Answer 3

False
Explanation: Kantian moral analysis rejects consequences (either conceivable or likely) as morally irrelevant when evaluating the choice of an agent. It states that the moral worth of an action does not lie in the effect expected from it, nor in any principle of action which requires to borrow its motive from this expected effect.

Question 4

An aspect that has become a key tenet of Patagonia's strategy is social sustainability with an emphasis on employee welfare.

Question 5

Western philosophers typically hold that people are an intrinsic and inseparable part of the universe.

Question 6

According to a study conducted by the World Economic Forum,an international nonprofit organization that measured the economic opportunities and political empowerment of women by nation in 2015,Japan occupied the first rank in the "gender gap index."

Question 7

One Percent for the Planet is an international nonprofit dedicated to philanthropy for environmental organizations cofounded by the founder of Patagonia.

Question 8

In the context of corporate governance,the U.K.and U.S.systems have been termed insider systems because ownership tends to be much more concentrated,with shares often being owned by holding companies,families,or banks.

Question 9

Corporate social responsibility includes the actions of a firm that go beyond the requirements of the law and the direct interests of the firm.

Question 10

In November 2015,Morgan Stanley stated that it has a responsibility to guide the global community toward a low-carbon economy as a financier.

Question 11

Ethical dilemmas arise from conflicts between ethical standards of a country and business ethics,or the moral code guiding business behavior.

Question 12

Patagonia shows that a company that transforms its corporate strategy to emphasize "doing good" socially and environmentally cannot do well economically.

Question 13

Sustainability involves development that meets humanity's needs by harming future generations.

Question 14

In the context of corruption,it was observed that when U.S.multinationals stopped influencing foreign officials through personal payments or political contributions,they were unable to sell in that particular market.

Question 15

Eastern perspectives attempt to describe and categorize the universe from a detached,objective viewpoint.

Question 16

The study of morality and standards of conduct is referred to as ethics.

Question 17

In Japan,women in the workforce still experience the effects of a "glass ceiling."

Question 18

Tesla has collaborated with several other researchers and car manufacturers to produce greener automobiles to achieve its secondary goal of inspiring sustainability across the entire automobile industry.

Question 19

The Foreign Corrupt Practices Act makes it illegal for U.S.companies and their managers to attempt to influence foreign officials through personal payments or political contributions.

Question 20

Utilitarianism favors the greatest good for the greatest number of people under a given set of constraints.

Question 21

In the context of globalization and ethical obligations of MNCs,the transfer of the labor force overseas creates:

A) an interesting dynamic in the scope of ethics and corporate responsibility.
B) a general ambiance of nondiscriminatory practices.
C) an ideal environment for women to work in.
D) equal employment opportunities for both men and women.

Question 22

In the context of human rights,one violation of human rights that resonated with MNCs and made them question whether to move operations into China was:

A) the imposition of restrictions on religious practices by foreigners in China in January 1994.
B) the violent June 1989 crackdown on student protesters in Beijing's Tiananmen Square.
C) the dramatic increase in the use of death penalty in China.
D) the open discrimination against women in China since 1979.

Question 23

Which of the following scenarios best exemplifies a glass ceiling effect?

A) Elena asks her team to contribute toward a green economy.
B) Roger asks his senior manager to standardize compensation packages at the top level.
C) Sheba is not considered for the role of a senior manager because she is a woman.
D) Keith is not considered for the role of a factory worker because he is a child.

Question 24

Which of the following views the individual as part of,rather than separate from,nature?

A) Aristotelian virtue ethics
B) Utilitarianism
C) Kantian philosophical traditions
D) Eastern philosophy

Question 25

Which of the following statements is true about women's rights and gender equity in Japan?

A) There has been an increase in the number of women not only in the workforce but also in management positions.
B) It has equal opportunity initiatives, whether they are guaranteed by law or are represented by growing social groups.
C) Many women college graduates are still offered only secretarial or low-level jobs.
D) Japanese women have still not experienced the effects of a "glass ceiling."

Question 26

The Environmental Kuznets Curve (EKC)has an inverted U-shape partly because:

A) compensation packages are standardized at relatively high levels of income.
B) the use of natural resources increases with income at relatively low levels of income.
C) working conditions are regularized at relatively low levels of income.
D) the emission of wastes decreases with income at relatively low levels of income.

Question 27

In the context of sustainability in operations and products,Nestlé encourages _____.

A) compensation benefits
B) resource efficiency
C) use of industrial refrigerants
D) long-distance shipping of raw materials

Question 28

Which of the following statements is true about utilitarianism?

A) It is aimed at minimizing utility and maximizing morality.
B) It is an attractive perspective for business decision making.
C) It emphasizes the formation of good character in individuals.
D) It attempts to describe and categorize the universe from a detached, objective viewpoint.

Question 29

According to Aristotelian virtue ethics,which of the following statements is true?

A) Social and institutional arrangements play an insignificant role in the formation of good character in individuals.
B) The universe is described and categorized from a detached, objective viewpoint.
C) A given act is morally correct if the ratio of benefit to harm is greater than the ratio resulting from an alternative act.
D) A good, or virtuous, individual does what is right for the right reasons.

Question 30

In the context of corporate governance,in an insider system,such as that in many continental European countries,_____.

A) ownership tends to be much more concentrated
B) institutions have limited direct control
C) institutional investor ownership is predominant
D) corporate equity is largely dispersed among outside stakeholders

Question 31

Which of the following statements is true about Kantian philosophical traditions?

A) They argue that individuals have responsibilities based on a core set of moral principles that go beyond those of narrow self-interest.
B) They argue that what is distinctive about rational behavior is the fact that it is self-interested and purpose driven.
C) They ask to accept consequences, either conceivable or likely, as morally relevant when evaluating the choice of an agent.
D) They state that rational beings are incapable of evaluating their choices through the lens of a universal law or the "categorical imperative."

Question 32

In the context of human rights,which of the following best reflects a glass ceiling effect?

A) Sexual harassment at workplace
B) Reduction of child labor
C) Unequal managerial opportunities
D) Standardized compensation packages

Question 33

Social sustainability for the company Patagonia includes:

A) third-party audits of factories that provide nonbiased assessments of the factories.
B) permission to use formaldehyde in the manufacture of its clothing.
C) the discretion of each factory to determine the percentage of each product that is recyclable.
D) modification of its supply chain from an environmental viewpoint, leaving corporate social responsibility solely in the hands of each supplier.

Question 34

The _____ makes it illegal for U.S.companies and their managers to influence foreign officials through personal payments or political contributions.

A) Foreign Corrupt Practices Act
B) Global Bribery Act
C) International Ethics and Bribery Act
D) Export-Import Ethical Standards Act

Question 35

Unlike Western perspectives,Eastern perspectives _____.

A) typically hold that people are an intrinsic and inseparable part of the universe
B) provide an account of what character traits contribute to pursuing and realizing the good in concrete ways
C) are based on a logic similar to an economic calculation of utility or cost-benefit
D) emphasize the greatest happiness principle as an individual's moral standard

Question 36

In an attempt to achieve its secondary goal of inspiring sustainability across the entire automobile industry,Tesla _____.

A) introduced a full-size SUV, named the Model X, as the latest addition to its fleet in late 2015
B) partnered with Toyota to design luxury sedans for the masses
C) designed a high-performance sports car that could accelerate from zero to 60 in less than four seconds
D) partnered with Mercedes to provide powertrain components for its electric models

Question 37

In the context of human rights,identify a true statement about women's rights and gender equity.

A) Japan has equal opportunity initiatives, whether they are guaranteed by law or are represented by growing social groups.
B) Many women college graduates in Great Britain are still offered only secretarial or low-level jobs.
C) Two-thirds of businesses in France have no female members on their senior leadership teams.
D) Germany has seen an increase in the number of women both in the workforce and in management positions.

Question 38

In early 2010,the issue of relatively low wages paid by _____ subcontractors made the headlines after a number of suicides by workers at factories run by Foxconn.

A) Vietnamese
B) Malaysian
C) Mexican
D) Chinese

Question 39

In the context of human rights,which country has experienced widespread human trafficking that has accelerated in recent years?

A) South Africa
B) India
C) Russia
D) China

Question 40

Which of the following statements is true about the adage "When in Rome,do as the Romans do"?

A) The adage is derived from the idea of cultural relativism.
B) Its logic is similar to an economic calculation of utility or cost-benefit.
C) The adage assumes that an individual is distinct from the entire universe.
D) It is derived from the idea that a virtuous individual derives utmost satisfaction from his or her good actions.

Question 41

The Transparent Agents Against Contracting Entities (TRACE)standard was developed to:

A) support and respect the protection of international human rights within their sphere of influence.
B) prevent the shifting of corrupt practices to suppliers and intermediaries.
C) prevent multinationals from disguising personal payments as consulting fees.
D) serve as a formal agreement by a host of industrialized nations to outlaw the practice of bribing foreign government officials.

Question 42

Which of the following is likely to present an opportunity for MNCs to make a positive impact in developing countries?

A) Low wage rates
B) Lax environmental standards
C) Adoption and exportation of best practices
D) Underdeveloped infrastructure

Question 43

All of the following companies have been criticized by NGOs for actions portraying lack of social responsibility in developing countries except _____.

A) Nike
B) Levi's
C) Chiquita
D) Hewlett-Packard

Question 44

All of the following are examples of NGOs except _____.

A) Save the Children
B) CARE
C) OECD
D) Oxfam

Question 45

According to the latest corruption index of countries around the world,the country with the lowest level of perceived corruption is _____.

A) Mexico
B) Brazil
C) Hong Kong
D) Denmark

Question 46

NGOs that seek to promote ethical and socially responsible business practices are generating substantial changes in all of the following areas except _____.

A) corporate management
B) business development
C) strategy
D) corporate governance

Question 47

Which of the following statements is incorrect about the treaty that initially included 29 nations that belong to the Organization for Economic Cooperation and Development (OECD)and marked a victory for the United States?

A) It outlaws the practice of bribing foreign government officials.
B) It outlaws most payments to political party leaders.
C) Its provisions are much narrower than U.S. negotiators wanted.
D) It is a step in the direction of a more ethical and level playing field in global business.

Question 48

Development that meets humanity's needs without harming future generations is termed _____.

A) corporate responsibility
B) sustainability
C) social responsibility
D) governance

Question 49

Latin American countries have established the _____ Inter-American Convention Against Corruption,which entered into force in March 1997.

A) OECD
B) FCPA
C) OAS
D) TRACE

Question 50

According to the principles of the global compact,the elimination of discrimination with respect to employment and occupation falls under the category of _____.

A) human rights
B) labor
C) environment
D) anticorruption

Question 51

Identify a statement about NGOs that is false.

A) Large global NGOs are active in all parts of the world.
B) NGO activism has been responsible for minor changes in corporate behavior and governance.
C) NGOs are regarded as a counterweight to business and global capitalism by some observers.
D) The force of NGOs has been felt in a range of major public policy debates.

Question 52

According to the latest corruption index of countries around the world,the country with the highest level of perceived corruption is _____.

A) Somalia
B) Chile
C) Ukraine
D) Poland

Question 53

In the context of corruption,the _____ standard was developed as a way to prevent the shifting of corrupt practices to suppliers and intermediaries.

A) OAS
B) FCPA
C) TRACE
D) OECD

Question 54

Corporate social responsibility:

A) is not related to ethics.
B) refers to the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm.
C) involves the study of or the learning process involved in understanding morality.
D) is not based on voluntary actions.

Question 55

According to the principles of the global compact,the principle "Freedom of association and the effective recognition of the right to collective bargaining" applies to _____.

A) human rights
B) anticorruption
C) environment
D) labor

Question 56

In November 2015,on the opening day of the United Nations climate summit in Paris,which of the following MNCs announced that it would no longer provide financing to coal-mining companies in both the developed and developing world?

A) JPMorgan Chase
B) HSBC
C) Wells Fargo
D) Merrill Lynch

Question 57

The United Nations has a division dedicated to the education,promotion,facilitation,and advocacy of sustainable practices and environmentally sound concerns called the _____.

A) UNRWA
B) UNIFEM
C) UNODC
D) UNEP

Question 58

All of the following countries have outsider systems of corporate governance except _____.

A) the United States
B) Canada
C) the United Kingdom
D) Spain

Question 59

Which of the following statements about the Transparent Agents Against Contracting Entities (TRACE)is incorrect?

A) It was developed after a review of the practices of 34 companies.
B) It applies to business intermediaries.
C) It was developed as a way to prevent the shifting of corrupt practices to suppliers and intermediaries.
D) It was established by Latin American companies.

Question 60

_____ can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm.

A) Corporate social responsibility
B) Law
C) Governance
D) Ethics

Question 61

The _____ specifies the distribution of rights and responsibilities among different participants in a corporation and spells out the rules and procedures for making decisions on corporate affairs.

A) corporate governance structure
B) nongovernmental organizations
C) Foreign Corrupt Practices Act
D) Rainforest Action Network

Question 62

In the context of corporate governance,the U.K.and U.S.systems have been termed _____ systems because of dispersed ownership of corporate equity among a large number of external investors.

A) cascade
B) ethical
C) outsider
D) insider

Question 63

All of the following regions are associated with "crony capitalism" except _____.

A) Asia
B) Europe
C) Latin America
D) Africa

Question 64

The seventeen Sustainable Development Goals include _____.

A) accelerated industrialization
B) reduction of poverty
C) enhanced college education
D) institutional reform

Question 65

Which of the following is not one of the seventeen U.N.Sustainable Development Goals?

A) Reducing poverty
B) Ensuring environmental sustainability
C) Ensuring free vaccinations for women
D) Eradicating discrimination against women

Question 66

_____ can be best defined as an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability.

A) Trade union
B) Corporate governance
C) Fair trade
D) Nongovernmental organization activism

Question 67

The seventeen Sustainable Development Goals constitute an ambitious agenda to significantly improve the human condition by _____.

A) 2020
B) 2030
C) 2040
D) 2050

Question 68

Explain corporate social responsibility and sustainability.

Question 69

Define fair trade,and describe how it helps farming families across Latin America,Africa,and Asia.

Question 70

"Crony capitalism" describes business practices in countries with _____.

A) well-developed legal and institutional protections
B) market-oriented economic systems
C) weak corporate governance
D) limited government interference

Question 71

Define ethics.Why is it important in international management?

Question 72

Corporate governance:

A) can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm.
B) seeks to serve society's interests by focusing on social, political, and economic issues such as poverty, social justice, education, health, and the environment.
C) can be defined as the system by which business corporations are directed and controlled.
D) can be defined as development that meets humanity's needs without harming future generations.

Question 73

What is meant by corporate governance?

Question 74

Which of the following constitutes an ambitious agenda to significantly improve the human condition by 2030?

A) The Human Rights Act 1993
B) The seventeen Sustainable Development Goals
C) The Foreign Corrupt Practices Act
D) The NAFTA

Question 75

Discuss the Foreign Corrupt Practices Act (FCPA)as one of the measures that has been adopted against corruption.