Deck 8: Ethics and Corporate Responsibilty

Question 1

In a now famous case of corporate fraud in the United States reported in The Australian Financial Review,17 December 2008,the case against financier Bernard Madoff was primarily about:

A)greed.
B)fear.
C)betrayal.
D)jealousy.

Answer 1

A

Question 2

The truth about power is that it is morally neutral.

Answer 2

True

Question 3

Many international business ethical issues arise as primarily because of differences in culture.

Answer 3

False

Question 4

In an international business context,an ethical dilemma is:

A)the best possible decision that can be made from several alternatives chosen.
B)one of two possible solutions to a problem.
C)a situation where none of the available alternatives seems ethically acceptable.
D)whether to employ children or adults.

Question 5

Many companies such as Nike have gone a step further,hiring independent auditors to make sure they are behaving in a manner consistent with their ethical codes.Nike,for example,has hired independent auditors to make sure that subcontractors used by the company are living up to Nike's code of conduct.One of the criticisms of the Nike company was in relation to the management practices of its employees,namely:

A)executives' wishes
B)managers' demands
C)staffing practices
D)ethical codes of conduct

Question 6

Many developing countries have established substantial environmental emissions pollution regulations.

Question 7

One of the most significant issues in the corrupt oil-for-food program was the:

A)blind opportunism by the perpetrators.
B)amount of money involved.
C)secrecy of the deals and consequent blame mentality.
D)sheer number of companies involveD.

Question 8

One of the criticisms of the Nike company was in relation to the management practices of its employees,namely:

A)executives.
B)managers.
C)contractors.
D)subcontractors.

Question 9

Many of the ethical issues that arise,when companies do business in different nations,are due to differences in the economic development between nations.

Question 10

Myanmar (formally known as Burma)has one of the worst human rights records in the world.

Question 11

Which one of the statements below would be considered a reason why businesspeople may not realise they are behaving in an unethical manner?

A)They are too focused on the competition.
B)They delegate responsibility and authority too quickly.
C)They fail to rationalise if the business decision is ethical.
D)They have relaxed internal operating procedures.

Question 12

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

Question 13

When human rights activists complained about the sweatshop conditions at Nike's subcontractors' operations,Nike,even though it had not broken any laws,was forced to:

A)apologise to the activists' cause.
B)seek redress and remedy.
C)institute a code of conduct for its subcontractors.
D)increase payments to satisfy its subcontractors.

Question 14

Freedom of speech is considered to be the most valued human right.

Question 15

Established in the United States,facilitating payments are excluded from the Foreign Corrupt Practices Act on the grounds they:

A)'speed up' approval for business investments.
B)cause no harm to recipient users.
C)constitute such small amounts of money.
D)are legally neutral.

Question 16

To limit serious unethical behaviour such as bribery and corruption,many participating international business managers are adopting a:

A)zero-tolerance policy towards ethical violations.
B)laissez-faire policy approach to cope.
C)'When in Rome,do as the Romans do' policy.
D)'give and take' policy approach.

Question 17

The idea that businesspeople should take into account the social consequences of economic actions when making business decisions is regarded as:

A)an ethical dilemma to consider.
B)a moral obligation to perform.
C)an invidious decision to be in.
D)a legal obligation to warrant.

Question 18

The tragedy of the commons occurs when a resource,owned by the host country,is overused by all individuals.

Question 19

Many of the ethical issues and dilemmas in international business are rooted in monetary values.

Question 20

Ethical issues arise when environmental regulations in host countries are inferior to those in the home nation.

Question 21

Specific tools,such as cost benefit analysis and risk assessment,are firmly rooted in ______.

A)Kantian ethics
B)utilitarian approaches
C)the Sullivan principles
D)the Friedman doctrine

Question 22

The belief that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries is called:

A)righteous moralism.
B)righteous immoralism.
C)naive immoralism.
D)utilitarian approach.

Question 23

Many of the ethical issues and dilemmas in international business are rooted in the principle:

A)'Take what you can get.'
B)'When in Rome .'
C)'Money makes the world go round.'
D)'Do as I say,not as I do.'

Question 24

Labour market studies show a trend towards unethical decision making with regard to workers in international business settings.The studies show that:

A)low-wage workers are often cheated by their employers.
B)high-wage workers are often overcompensated for the efforts.
C)low-wage workers are often denied better paid contracts.
D)high-wage workers need not set time lines or major deadlines to complete tasks.

Question 25

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

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

Question 26

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

A)United Nations
B)sympathetic
C)treaty
D)prejudicial

Question 27

The term 'noblesse oblige' refers to the notion that:

A)power is morally neutral.
B)privilege requires responsibility.
C)authority has no social bounds.
D)oppression requires suppression.

Question 28

One drawback,as an approach to business ethics of the utilitarian philosophy,involves the measuring of the benefits,costs and risks of a course of action.What is a second problem?

A)admission of human rights
B)acknowledgment of environmental concerns
C)omission of the consideration of justice
D)omission of slave labour

Question 29

Home-country managers working abroad in multinational firms (expatriate managers)may experience ______an the usual degree of pressure to violate their personal ethics.

A)less pressure
B)more pressure
C)lower pressure
D)no pressure

Question 30

Utilitarian approaches to ethics hold that the moral worth of actions or practices is determined by their _________.

A)initial start-up costs
B)consequences
C)cost benefit analysis
D)risk assessment

Question 31

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

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

Question 32

Contemporary moral philosophers tend to view Immanuel Kant's ethical philosophy as incomplete,principally because his system has no place for ______________.

A)human rights or theories
B)immoral sentiments and emotions
C)moral emotions and sentiments
D)human emotions and dignity

Question 33

Several studies of unethical behaviour in a business setting have concluded that business people may not realise they are behaving in an unethical manner,primarily because:

A)they fail to ask 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.

Question 34

Philosopher ____________ed 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)Leon Sullivan
C)Carol Gilligan
D)Jack Welch

Question 35

The belief that people should be treated as ends,and never purely as means to the ends of others,is known as:

A)Kantian ethics.
B)the Universal Declaration of Human Rights.
C)just distribution.
D)cultural relativism.

Question 36

Under the Universal Declaration of Human Rights,it confers on employees the right to work,join trade unions and expect favourable remuneration,but not:

A)free choice of employment.
B)protection against employment.
C)just and favourable work conditions.
D)work under unsafe working conditions.

Question 37

In Australia,the corporate failures of HIH and One.Tel were attributed to the problems of:

A)closed communication and other corporate non-disclosures.
B)weak financial planning and actions.
C)poor corporate governance and unethical behaviour.
D)leadership mishaps.

Question 38

Justice theories focus on the attainment of a ____________onomic goods and services.

A)rights principle
B)just-in-time distribution
C)rights law
D)just distribution

Question 39

Distribution of economic goods and services that are fair and equitable is based on the principle of:

A)cultural relativism.
B)just theories.
C)distribution theories.
D)codes of ethics.

Question 40

Payments,usually in the form of cash that are not officially receipted and are therefore untraceable,is a form of corruption known as:

A)the black-market.
B)grease payments.
C)slippery codes of practice.
D)unethical procedures.

Question 41

Multinational corporations have ethical obligations towards employment conditions,human rights,corruption and environmental pollution,but the use of ______s not always clear-cut.

A)negotiation
B)power
C)cultural relativism
D)authority

Question 42

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

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

Question 43

The atmosphere and oceans can be viewed as a 'global commons' from which everyone benefits,but for which no one is responsible.In such cases,this is known as:

A)the Sullivan principles.
B)the tragedy of the commons.
C)cultural relativism.
D)just distribution.

Question 44

The idea that businesspeople should consider the social consequences of economic actions when making business decisions is called:

A)noblesse obligue.
B)social conscience.
C)just practices.
D)social responsibility.

Question 45

'Gift giving' between parties to a business negotiation is considered right and proper in many ____________res.

A)South American
B)Western European
C)Asia-Pacific
D)African

Question 46

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 emphasising their importance
C)challenging those who present opposition
D)holding annual seminars about ethics

Question 47

Individuals or groups that have an interest or claim in what the company does,and in how well it performs,are called:

A)pressure groups.
B)stakeholders.
C)claimants.
D)defendants.

Question 48

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 organisational culture that places a high value on ethical behaviour.
D)Promote individuals with a proven track record of unethical behaviours.

Question 49

The ethical implications of facilitating payments or speed money,under the Foreign Corrupt Practices Act and the OECD convention on bribery,is very:

A)unclear.
B)certain.
C)strict.
D)imperfect.