Question 1

An individual's personal ethical code generally has little influence on their behavior in business.

Accepted Answer

An individual's personal ethical code significantly influences their behavior in business as it guides their decision-making and actions, reflecting their values and principles.

Question 2

Many of the ethical issues in international business are rooted in the fact that political systems, law, economic development, and culture vary significantly from nation to nation.

Accepted Answer

Ethical issues in international business often arise due to differences in political systems, legal frameworks, economic conditions, and cultural norms across countries, leading to varying standards and practices.

Question 3

John Rawls argues that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.

Accepted Answer

John Rawls' theory of justice includes the "difference principle," which allows for inequalities in the distribution of goods only if they benefit the least advantaged members of society.

Question 4

Business leaders should use every relevant opportunity to stress the importance of business ethics and make sure that key business decisions not only make good economic sense but also are ethical.

Accepted Answer

Business leaders have a responsibility to ensure that their decisions align with ethical standards, as this can enhance the company's reputation, foster trust, and ensure long-term success.

Question 5

According to the concept of cultural relativism, a firm, while operating in any host country, should adopt the ethics of the culture that is predominant in its home country.

Accepted Answer

Cultural relativism suggests that a firm should adopt the ethics of the culture in the host country, not its home country, recognizing that moral standards are culturally bound.

Question 6

One criticism of the righteous moralist approach to ethics is that adopting home-country standards isn't always appropriate.

Accepted Answer

The righteous moralist approach suggests that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. Critics argue that this approach may not consider the cultural, legal, and economic differences in the host country, making it sometimes inappropriate.

Question 7

The term ethics refers to accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization.

Accepted Answer

Ethics involves the principles and standards that guide individuals and organizations in determining what is right or wrong behavior.

Question 8

An ethical dilemma occurs when neither of the choices in a situation seem appropriate or right.

Accepted Answer

An ethical dilemma involves a situation where a person must choose between two conflicting moral principles, and neither option seems entirely right or acceptable.

Question 9

The utilitarian approaches to ethics are based on the idea that the moral worth of actions is determined by their ultimate consequences.

Accepted Answer

Utilitarianism is an ethical theory that evaluates actions based on their outcomes, aiming to maximize overall happiness or utility.

Question 10

In order to create a business culture that places a high value on ethical behavior, a system of incentives and rewards must be in place.

Accepted Answer

A system of incentives and rewards can encourage and reinforce ethical behavior by aligning employees' motivations with the organization's ethical standards.

Question 11

After it was amended, the Foreign Corrupt Practices Act allowed for "facilitating payments."

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) was amended in 1988 to allow for "facilitating payments," which are small payments made to expedite routine governmental actions.

Question 12

The phenomenon known as the tragedy of the commons occurs when multiple companies attempt to produce and sell the same products.

Accepted Answer

The tragedy of the commons refers to the overuse and depletion of a shared resource by individuals acting in their own self-interest, not specifically to companies producing the same products.

Question 13

One concern with the utilitarian approach is that the action that produces the greatest good for the greatest number of people may result in the unjustified treatment of a minority.

Accepted Answer

The utilitarian approach focuses on maximizing overall happiness, which can sometimes lead to the neglect or unfair treatment of minority groups if their suffering is outweighed by the benefits to the majority.

Question 14

The social rules that provide guidelines for appropriate behavior in a particular situation are known as values.

Accepted Answer

Social rules that provide guidelines for appropriate behavior are known as norms, not values. Values are broader cultural beliefs about what is good or desirable.

Question 15

Kantian ethics is concerned with environmental ethical issues such as manufacturing emissions and polluted waters.

Accepted Answer

Kantian ethics is not concerned with environmental ethical issues.

Question 16

The Sullivan principles stem from the beliefs of Leon Sullivan who felt it was not ethical for General Motors to operate in South Africa unless the company participated in apartheid laws for its African operations.

Accepted Answer

The Sullivan Principles were developed by Leon Sullivan to promote corporate social responsibility and were aimed at pressuring companies to oppose apartheid by improving the rights and conditions of black workers in South Africa, not to participate in apartheid laws.

Question 17

According to John Rawls's veil of ignorance, inequalities are justified if they benefit the position of the least-advantaged person.

Accepted Answer

The answer of According to John Rawls's veil of ignorance,...

Question 18

Unfortunately, it is common in business practices to assume that people from different cultures make ethical decisions using the same process.

Accepted Answer

Different cultures have varying values, norms, and ethical frameworks, which can lead to different processes for making ethical decisions. However, businesses often overlook these differences and assume a universal approach.

Question 19

"Facilitating payments" are payments to secure contracts that would not otherwise be secured.

Accepted Answer

Facilitating payments are small payments made to expedite routine government actions, not to secure contracts that wouldn't otherwise be secured.

Question 20

The OECD convention on bribery obliges member states and other signatories to make the bribery of foreign public officials a criminal offense.

Accepted Answer

The OECD Anti-Bribery Convention requires signatory countries to criminalize the act of bribing foreign public officials in international business transactions.

Quiz 5: Ethics, Corporate Social Responsibility, and Sustainability