Deck 4: Ethics in International Business

Question 1

Gift-giving between parties to a business negotiation is considered right and proper in many ________ cultures.

A) Latin
B) Western
C) Asian
D) European
E) Turkish

Answer 1

C

Question 2

The opening case on mining notes that one of the ethical issues affecting Canadian mining companies operating internationally include

A) differences in economic development.
B) differences in legal systems.
C) monitoring labour practices by local companies hired to develop the sites.
D) examining the changing economic environment.
E) keeping up to date with changes in the technological environment.

Answer 2

C

Question 3

___________ is/are a course of action,which international businesses take that does not violate a company's accepted principles.

A) Ethical strategy
B) Business ethics
C) Ethical dilemmas
D) Ethical issues
E) Ethical relativism

Answer 3

A

Question 4

Many of the ethical issues and dilemmas in international business are rooted in the fact of differences in all BUT which one of the following?

A) political systems
B) culture
C) monetary values
D) economic development
E) law

Question 5

The concept of _________ refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions.

A) corruption
B) human rights
C) just distribution
D) social responsibility
E) environmental responsibility

Question 6

The atmosphere and the oceans can be viewed as a _____________.

A) tragedy of the commons
B) global commons
C) vulnerable biota
D) pollution free
E) Different biospheres

Question 7

In ____________,member states of the OECD adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

A) 1863
B) 1993
C) 1997
D) 2001
E) 1999

Question 8

Multinational organizations have ethical obligations toward all EXCEPT which one of the following?

A) human rights
B) use of power
C) cultural relativism
D) environmental pollution
E) employment conditions

Question 9

Some economists have argued that ________ reduces the returns on business investment and leads to low economic growth.

A) human rights
B) corruption
C) ethical behaviour
D) the social structure of culture
E) environmental pollution

Question 10

What was the multinational organization that adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions in 1997?

A) WTO
B) GATT
C) World Bank
D) United Nations
E) OECD

Question 11

The ________ oblige(s)member states to make the bribery of foreign public officials a criminal offence.

A) Foreign Corrupt Practices Act
B) Sullivan Principles
C) Universal Declaration of Human Rights
D) United Nations Convention on Fair Labour Practices
E) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

Question 12

In the international business setting,the most common ethical issues involve all EXCEPT which one of the following?

A) employment practices
B) human rights
C) corruption
D) border control
E) environmental protection

Question 13

The way working conditions are maintained by a business refers to the __________ of that business.

A) culture
B) human rights
C) human code of behaviours
D) employment practices
E) corporate culture

Question 14

According to your text,which Canadian province has become a lightning rod of criticism regarding corruption?

A) Ontario
B) Quebec
C) Alberta
D) Saskatchewan
E) British Columbia

Question 15

__________ is/are excluded from both the Foreign Corrupt Practices Act and the OECD convention on bribery.

A) Ethics
B) Human rights
C) Pollution
D) Facilitating payments
E) Employment practices

Question 16

Which country is given as an example of so repressive a regime that investment cannot be justified on any grounds?

A) South Korea
B) Zimbabwe
C) Kazakhstan
D) China
E) Myanmar

Question 17

In order for the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions to be truly effective,what must happen?

A) further UN actions must be taken
B) the convention must be translated into laws by each signatory nation
C) the OECD ethical code must be implemented
D) The Friedman Doctrine must be signed into law
E) Facilitation payments must be outlawed

Question 18

When a resource that is held in common but owned by no one is overused by individuals,it is known as _________.

A) the Sullivan principles
B) the tragedy of the commons
C) cultural relativism
D) just distribution
E) noblesse oblige

Question 19

All of the following except ____________ are truths about power.

A) it is morally neutral
B) it always decreases social welfare
C) it is how it is used that matters
D) it can be used in positive ways
E) all of these answers are correct

Question 20

Which one of the following is NOT considered to be a valued human right?

A) Freedom of speech
B) Freedom condoning political oppression
C) Freedom of assembly
D) Freedom of movement
E) Freedom of religion

Question 21

Which one of the following could be considered a reason why organizations may make decisions that ultimately lead to unethical business actions being undertaken?

A) They have based the decision on economic logic only
B) They are appreciative of human rights concerns
C) They address environmental concerns and issues
D) They do not solely base decisions on business variables such as cost and product quality
E) They have strong leadership that supports personal ethics

Question 22

__________ refers to the values and norms that are shared among employees of an organization.

A) Organization culture
B) Social responsibility
C) Cultural relativism
D) Just distribution
E) Personal Ethics

Question 23

Which one of the following could be considered a reason why organizations may make decisions that ultimately lead to unethical business actions being undertaken?

A) They are governed by the laws of the home and host countries
B) They are appreciative of human rights concerns
C) They do not incorporate ethics into business decision making
D) They do not solely base decisions on business variables such as input cost per unit of output
E) They have a CEO and a Chief Ethics Officer

Question 24

__________ are situations in which none of the available alternatives seem ethically acceptable.

A) Ethical behaviours
B) Moral obligations
C) Social responsibilities
D) Ethical dilemmas
E) Personal crises

Question 25

Who is noted for making the following statement,"There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game,which is to say that it engages in open and free competition without deception of fraud."?

A) Leon Sullivan
B) Milton Friedman
C) David Hume
D) Jon Stuart Mill
E) Immanuel Kant

Question 26

A ____________ claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

A) righteous moralist
B) righteous immoralist
C) naïve immoralist
D) utilitarian approach
E) cultural relativist

Question 27

_________ approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate guidelines for ethical decision-making in a multinational enterprise.

A) Straw men
B) The Enron principles
C) Just distribution
D) Rights theories
E) Cultural relativism

Question 28

What is considered by some to be the root cause contributing to the demise of the organization known as Enron?

A) concern for workers
B) open communication
C) control throughout the organization
D) organization culture
E) exposure to foreign cultural differences

Question 29

__________ is the belief that ethics are nothing more than the reflection of a culture and are culturally determined.

A) Rights theory
B) Just distribution
C) Cultural relativism
D) The Friedman Doctrine
E) Moral expediency

Question 30

Home-country managers working abroad in multinational organizations may experience _________ than the usual degree of pressure to violate their personal ethics.

A) less
B) more
C) lower
D) fewer
E) a smaller amount

Question 31

_________ and ________ shape the culture of a business organization.

A) Norms; greed
B) Values; norms
C) Greed; values
D) Values; profits
E) Shareholders; management

Question 32

Which one of the statements below would be considered a reason why business people may NOT realize they are behaving in an unethical manner?

A) They fail to question if the business decision is ethical
B) They acknowledge the need for human rights
C) They are aware of the cultural differences between countries
D) They are driven by the acquisition of profits
E) They have a personal code of ethics that they believe does not apply in the country

Question 33

The Enron and Conrad Black examples show that it is not just what leaders say that matters but ___________.

A) How they say it
B) The ethical dynamism attached to it
C) What they do
D) Where the host country is located
E) Where the home country is located

Question 34

The first step to establishing a strong sense of business ethics is for a company to emphasize ________.

A) strong personal ethics
B) advantages of deriving profit maximization
C) immorality
D) amoral conduct
E) religious faith

Question 35

Expatriate managers may experience more than the usual degree of what?

A) ethical imperialism
B) cultural ethics
C) public ethics
D) ethical dilemmas
E) cultural imperialism

Question 36

All of the following EXCEPT ________ are reasons why expatriate managers may experience increased pressure to violate their personal ethical standards.

A) they are away from their ordinary social context
B) they place a high value on adherence to human rights
C) they are geographically away from the parent company
D) they are challenged by exorbitant goals set by the company
E) they recognize that there is an accepted code of behaviour in the country that is different from their own

Question 37

Of the following,which one would NOT be considered a rationale for why managers may behave in a manner that is unethical?

A) Business ethics are not divorced from an individual's personal ethics
B) Personal ethical codes exert profound influence on the way we behave as businesspeople
C) The company exerts pressure on individuals to achieve unrealistic goals
D) The personal ethical code of the individual staunchly recognizes the difference between right and wrong
E) That is the norm in the country the manager is operating in

Question 38

An individual with a strong sense of personal ethics is ______ to behave in an unethical manner in a business setting.

A) less probable
B) less likely
C) more likely
D) more unlikely
E) likely

Question 39

Of the following,whose basic position is that the only social responsibility of business is to increase profits so long as the company stays within the rules of law?

A) Milton Friedman
B) Leon Sullivan
C) Paul Martin
D) Stephen Harper
E) Gilles Duceppe

Question 40

Generally accepted principles of right and wrong governing individual conduct are known as what?

A) ethical dilemmas
B) ethical imperialism
C) personal ethics
D) corruption
E) moral obligations

Question 41

Moral theorists argue that fundamental human rights form the basis for the ________ that managers should use when making decisions that have an ethical component.

A) immoral compass
B) moral compass
C) amoral compass
D) mortality compass
E) personal compass

Question 42

Philosopher _________ argued that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.

A) John Rawls
B) Lou Rawls
C) Immanuel Kant
D) Jane Jacobs
E) John Jacobs

Question 43

Along with rights comes what?

A) ethics
B) profits
C) society
D) culture
E) obligations

Question 44

The classic example of which one of the following approaches is the drug lord problem?

A) The Friedman doctrine
B) The righteous moralist
C) The naïve immoralist
D) The rights approach
E) The cultural relativist

Question 45

In its extreme viewpoint,_________ suggests that if a culture supports slavery,it is all right to use the slave labour in the country.

A) the righteous moralist
B) cultural relativism
C) the naïve immoralist
D) utilitarian approach
E) rights approach

Question 46

What theory recognizes that human beings have fundamental privileges that transcend national boundaries and cultures?

A) The Friedman doctrine
B) The righteous moralist
C) The naïve immoralist
D) The rights theories
E) The cultural relativist

Question 47

The Universal Declaration of Human Rights is a _________ document that lays down the basic principles of human rights that should be adhered to.

A) United Nations
B) United States
C) Canadian
D) World Health Organization
E) International Labour Organization

Question 48

Fundamental human rights form the basis of what?

A) The Friedman doctrine
B) A moral compass
C) The drug lord problem
D) Collective goods
E) Cultural relativism

Question 49

________ focus on the attainment of a just distribution of economic goods and services.

A) Cultural relativisms
B) Justice theories
C) Distribution theories
D) Codes of ethics
E) Utilitarian theories

Question 50

All of the following would be considered to be that which individuals are ignorant of under John Rawls' veil of ignorance EXCEPT ________.

A) nationality
B) race
C) special talents
D) political affiliation
E) gender

Question 51

Developed in the 20^th century,_______ recognize(s)that human beings have fundamental rights and privileges that transcend national boundaries and cultures.

A) righteous morality
B) cultural relativism
C) just distribution
D) the Sullivan doctrine
E) rights theories

Question 52

What does Article 29 of the Universal Declaration of Human Rights convey?

A) Everyone has the right to join a trade union
B) Everyone has the right to work
C) Everyone has the right to fair remuneration
D) Everyone has duties to the community
E) Everyone has a duty to the family

Question 53

Which one is guaranteed by Rawls' conceptual device known as the veil of ignorance?

A) impartiality
B) political liberty
C) equity
D) freedom of assembly
E) justice

Question 54

Article 23 of the Universal Declaration of Human Rights conveys all EXCEPT which one of the following?

A) Everyone has the right to work.
B) Everyone has the right to join trade unions.
C) Everyone has the right to expect remuneration.
D) Everyone has the right to work under unsafe working conditions.
E) Everyone has the right to equal pay

Question 55

Article 1 of the Universal Declaration of Human Rights is thought to echo ________ ethics.

A) utilitarian
B) Friedman
C) Kantian
D) cultural relativism
E) social democratic

Question 56

____________ asserts that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation,that manager should not either.

A) The Kantian ethicist
B) The righteous moralist
C) The naïve moralist
D) The righteous immoralist
E) The naïve immoralist

Question 57

Which ethics approach is typically associated with managers from developed countries?

A) The Martin principles
B) The Friedman doctrine
C) The naïve immoralist
D) The righteous moralist
E) The Harper principles

Question 58

A(n)__________ is one that is considered fair and equitable.

A) right theory
B) righteous moralist
C) cultural relativism
D) just distribution
E) indifference principle

Question 59

Which business straw men approach to business ethics is best summarized by the maxim "When in Rome,do as the Romans do"?

A) Cultural relativism
B) Righteous moralist
C) Naïve immoralist
D) Friedman doctrine
E) Managerial Imperative

Question 60

Rawls' considers all but ________ to be political liberties.

A) freedom of speech
B) right to bear arms.
C) right to hold personal property
D) freedom of thought
E) freedom of religion

Question 61

Businesses can make sure they are hiring individuals who match well with their established ethical guidelines if they undertake all EXCEPT which one of the following?

A) Administer psychological tests.
B) Check former employer and personal references.
C) Talk with former coworkers of the job candidate.
D) Hire only relatives of current organizational employees.
E) Hire employees with a strong sense of personal ethics

Question 62

Of the following,which assist organizations to think through the ethical implications of decision in a systematic way?

A) Kant's principles and Rawls' theory of justice.
B) Rights theories and Hume's principles.
C) Cultural relativism and Rawls' theory of justice.
D) Rights theories and Rawls' theory of justice.
E) Utilitarian moralists and Friedman's principles

Question 63

A firm's _________ are individuals or groups that have an interest or claim in what the company does and in how well it performs:

A) box holders
B) stakeholders
C) righteous moralists
D) naturalists
E) employees

Question 64

People who work for or own the company such as employees,board of directors,and stockholders are better identified as _________.

A) internal stakeholders
B) venture capitalists
C) external stakeholders
D) external shareholders
E) direct stakeholders

Question 65

The idea that managers should consider the social consequences of economic actions when making business decisions is known as what?

A) justice theory
B) corporate social responsibility
C) moral outrage
D) moral courage
E) ethics officers

Question 66

At which step of a stakeholder analysis would an organization to audit its decisions to see if they were consistent with ethical principles?

A) Step 4
B) Step 3
C) Step 5
D) Step 7
E) Step 6

Question 67

Stakeholder analysis involves a certain amount of what has been called ______.

A) moral imagination
B) immoral imagination
C) moral magnetism
D) amoral magnetism
E) ethical morality

Question 68

A company that makes it difficult for people to effectively complain about an unethical situation is doing what?

A) showing moral courage
B) displaying righteous moralism
C) showing cultural relativism
D) displaying moral intent
E) taking an obstructionist stance

Question 69

Step 2 of a stakeholder analysis would NOT involve which one of the following?

A) Judging the ethics of the proposed decision.
B) Determine whether the proposed decision would violate fundamental rights.
C) Providing information to workers about potentially hazardous working conditions.
D) Establish moral intent.
E) Determine the rights involved

Question 70

All of the following are examples of moral courage except __________.

A) whistle blowing
B) saying no to supervisors who want an employee to act unethically
C) walking away from profit making deals
D) competing with your colleagues for promotions
E) all of these answers are correct

Question 71

Which of the following is NOT one of the five things an international business and its managers can do to make sure ethical issues are considered in business decisions?

A) Favour hiring and promoting people with a well-grounded sense of personal ethics.
B) Develop moral courage.
C) Build an organizational culture that has a high value on ethical behaviour.
D) Promote individuals with a proven track record of unethical behaviours.
E) Make sure that leaders within the company not only speak about ethical behaviour, but also practice it.

Question 72

When an employee says no to a supervisor because what he or she was asked to do was unethical,it is _______ that provides the employee with the strength to say no.

A) moral courage
B) righteous moralism
C) cultural relativism
D) moral intent
E) naive moralism

Question 73

Building an organization culture that places a high value on ethical behaviour requires all EXCEPT ________.

A) establishing reward systems
B) sanctioning those who act in an ethical manner.
C) providing employee incentives
D) sanctioning those who act unethically
E) all of these answers are correct

Question 74

At which step of a stakeholder analysis would an organization's managers establish moral intent?

A) Step 1
B) Step 2
C) Step 3
D) Step 4
E) Step 5

Question 75

In Rawls' philosophy,the _________ indicates that inequalities are justified if they benefit the position of the least-advantaged members of society.

A) second principle
B) first principle
C) primary principle
D) Friedman principle
E) difference principle

Question 76

________ are responsible for making sure that all employees are trained to be ethically aware and that ethical considerations enter the business decision-making process.

A) Righteous moralists
B) Guidance counsellors
C) Ethics officers
D) Board of directors
E) Line Managers

Question 77

Having articulated values in a code of ethics or some other document,leaders in the business must give life and meaning to those words by _________.

A) terminating those who deviate from them
B) repeatedly emphasizing their importance
C) challenging those who present opposition
D) holding annual seminars about ethics
E) hiring people who promise to follow them

Question 78

In Rawls' philosophy,the principle that each person be permitted the maximum amount of basic liberty compatible with a similar liberty for others is known as the ____ principle.

A) first
B) second
C) third
D) fourth
E) fifth

Question 79

A _________ is a formal statement of the ethical priorities a business adheres to.

A) cultural relativism
B) declaration of code
C) code of ethics
D) business policy
E) strategic plan

Question 80

External stakeholder groups would most likely be comprised of all but which one of the following?

A) unions
B) suppliers
C) government
D) employees
E) local communities