Question 1

Which of the following is true of ethical relativism?

Accepted Answer

Ethical relativism holds that moral principles are relative to cultural, societal or individual norms or beliefs. Therefore, what is considered right or wrong varies across cultures or situations, and there are no absolute ethical standards that are universally applicable to all individuals and circumstances. Choice C accurately portrays this view by stating that there are no absolutes when it comes to business ethics, and local cultural norms, morality, and circumstances may determine whether certain behaviors are right or wrong. Choices A, B, D, and E do not accurately describe ethical relativism.

Question 2

The results of strategies that cannot pass the test of moral scrutiny often are NOT manifested in

Accepted Answer

The results of strategies that cannot pass the test of moral scrutiny typically lead to negative outcomes such as financial losses, public relations issues, legal penalties, and criminal charges against executives. Increased customer loyalty is not a result of morally questionable strategies; rather, it is more likely to decrease due to damaged trust and reputation.

Question 3

The school of ethical relativism holds that

Accepted Answer

Ethical relativism posits that moral standards are culturally based and therefore should be interpreted in the context of the specific culture, allowing local moral standards to take precedence in cross-cultural situations.

Question 4

According to the school of ethical universalism

Accepted Answer

According to the school of ethical universalism, there exists a set of universal ethical standards to which all societies and individuals can be held accountable, based on the common moral agreement about right and wrong actions and behaviors across multiple cultures and countries. Therefore, option D is the correct choice. Option A is incorrect, as it implies that ethical principles are only subjectively provable, while universalism posits that there are objectively provable ethical principles. Option B is incorrect, as universalism argues that concepts of right and wrong are universal across countries and cultures. Option C is incorrect, as ethical universalism holds that ethical principles are not socially determined, but rather, objective and universal. Option E is incorrect, as there is no global body that formulates a Code of Ethical Behavior for the world.

Question 5

The degree of cross-country variability in paying bribes and kickbacks to grease business transactions

Accepted Answer

The degree of cross-country variability in paying bribes and kickbacks to grease business transactions is one of the thorniest ethical problems that multinational companies face because paying bribes is normal and customary in some countries and ethically or legally forbidden in others. This creates a dilemma for companies as they strive to comply with ethical and legal standards while also competing in these markets. The issue is not simply a matter of personal morality but also of compliance with differing legal and cultural standards. Therefore, option D is the best choice.

Question 6

Which of the following is true of the school of ethical universalism?

Accepted Answer

The answer of Which of the following is true of...

Question 7

A belief in ethical relativism leads to the conclusion that

Accepted Answer

Ethical relativism is the belief that ethical standards and principles are relative to the individual, culture, or society. Therefore, ethical relativism would lead to the conclusion that the use of underage labor and the payment of bribes/kickbacks cannot be deemed universally ethical or unethical. Instead, ethical judgments on these practices are dependent on the moral standards, values, and business norms present in a particular culture, society, or circumstance.

Question 8

The strength of the beliefs underlying ethical universalism is that

Accepted Answer

The strength of ethical universalism is that it draws upon the collective views of multiple societies and cultures to put clear boundaries on what constitutes ethical and unethical business behavior, regardless of the country or culture a company is operating in. It acknowledges the universality of some ethical principles while leaving room for varying shades of gray in certain situations. It does not rely on the subjective determinations of religious or moral experts, nor does it suggest that ethical standards should be strictly grounded in religious doctrine. It does recognize variation in basic moral standards according to local cultural beliefs and social mores, but seeks to identify a common foundation of ethical business behavior that transcends these differences.

Question 9

Ethical principles in business

Accepted Answer

Ethical principles in business are not materially different from ethical principles in general, as they are based on the same fundamental concepts of right and wrong that apply to society at large.

Question 10

If one accepts the tenets of the school of ethical relativism, then which of the following is NOT true?

Accepted Answer

Ethical relativism suggests that ethical standards are not universal but are instead based on local norms and customs, making option E, which implies universal standards, inconsistent with ethical relativism.

Question 11

According to the advocates of ethical relativism,

Accepted Answer

Ethical relativism is the belief that moral truths are relative to the culture or society in which they exist. Therefore, if a particular culture/society/country accepts the use of underage labor and/or the payment of bribes/kickbacks, then according to ethical relativism, it can be considered morally correct and ethical for a company to use these practices in conducting its business activities in that culture/society/country. This means that ethical standards are subjective and vary across cultures/societies/countries.

Question 12

The contentions that (1) many of the same standards of what's ethical and what's unethical resonate with peoples of most societies regardless of local traditions and cultural norms and (2) to the extent there is common moral agreement about right and wrong actions, common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances, are defining beliefs of which of the following?

Accepted Answer

These contentions are defining beliefs of the school of ethical universalism, which holds that there are universal ethical standards applicable to all cultures and societies. The school of ethical relativism, on the other hand, argues that ethical standards depend on the norms and traditions of each society and there are no universal ethical principles. Integrative social contracts theory is similar to ethical universalism but adds the idea that ethical standards are formed through a process of negotiation and agreement between different societal groups.

Question 13

Ethical principles as they apply to the conduct of personnel and business decisions

Accepted Answer

The answer of Ethical principles as they apply to the...

Question 14

Multinational companies that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition

Accepted Answer

Companies that forbid the payment of bribes and kickbacks face a difficult challenge of losing business to competitors who engage in such practices. This penalty is unjust and can cause ethical companies and employees to suffer. However, enforcing code of conduct with respect to bribery and kickbacks is a necessary step towards creating a business environment that values ethical behavior over corruption.

Question 15

Which of the following statements about the ethical relativism school of thinking is FALSE?

Accepted Answer

This statement is false because the ethical relativism school of thinking holds that local ethical standards should take precedence over what the ethical standards may be in a company's home market. Therefore, it is not appropriate for ethical standards in a company's home market to take precedence over local ethical standards.

Question 16

How do ethical principles apply to businesses?

Accepted Answer

The answer of How do ethical principles apply to businesses?
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Question 17

Although exposing children to hazardous work and long work hours is unquestionably deplorable, which of the following, if true, leads to a moral dilemma?

Accepted Answer

C) introduces a moral dilemma because it suggests that child labor might be a necessity for families in extreme poverty, potentially providing essential income. This contrasts with the clear moral stance against child labor due to its hazards and exploitation, creating a conflict between the need to protect children and the economic realities of impoverished families.

Question 18

If one concurs with the school of ethical universalism, then one believes that

Accepted Answer

The school of ethical universalism holds that certain moral standards are universal and applicable across cultures and situations, and do not vary significantly according to local beliefs or circumstances. It rejects cultural relativism, which argues that moral standards are culturally determined and vary from one culture to another. Therefore, A is the best choice as it aligns with the beliefs of ethical universalism.

Question 19

The contention that since there are cross-country or cross-cultural differences in ethical standards, it is appropriate to judge behavior as ethical/unethical in the light of local customs and social mores should take precedence over a single set of ethical standards or what may be applicable in a company's home market

Accepted Answer

The contention described in the question is an example of ethical relativism, which holds that what is ethical depends on the cultural and social context in which it takes place. Therefore, local customs and social mores should take precedence over universal ethical standards.

Question 20

The school of ethical universalism holds that

Accepted Answer

According to the school of ethical universalism, the most basic ethical principles are universal and apply to all individuals, regardless of their culture or country. In other words, there is a set of fundamental ethical beliefs that underlie all cultures and that are universally applicable in all situations, including in business. Therefore, D is the best choice as it accurately represents the perspective of ethical universalism.

Quiz 9: Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY