Question 1

The term "moral idealism" is used to address the need for a moral standard that is accepted by all cultures.

Accepted Answer

Moral idealism is a philosophical stance that posits certain ethical standards or principles are universally true and should guide human actions, but it does not necessarily mean these standards are accepted by all cultures, as moral and cultural relativism challenge this universality.

Question 2

The sales,debts,and resources of some of the largest multinational firms exceed the gross national product,the public and private debt,and the resources,respectively,of some nations.

Accepted Answer

This statement is true. There are several multinational corporations whose sales, debts, and resources exceed the gross national product, public and private debt, and resources of small and medium-sized nations. For example, the sales of Walmart alone were larger than the entire GDP of some small countries, such as Iceland and Luxembourg.

Question 3

When managing interdependence,international managers must go beyond general issues of social responsibility and deal with the specific concerns of the MNC subsidiary--host country relationship.

Accepted Answer

International managers must focus on the specific concerns and dynamics between the MNC subsidiary and host country in order to effectively manage interdependence. Simply addressing general issues of social responsibility is not enough.

Question 4

In a globalized market economy,CSR has to be part of modern business.

Accepted Answer

In a globalized market economy, CSR (Corporate Social Responsibility) has become a vital aspect of modern business. As companies expand their operations globally, they are expected to take into account and address the environmental, social, and economic impact of their activities. CSR includes various initiatives taken up by businesses to contribute to sustainable development, such as reducing carbon footprint, promoting ethical business practices, investing in local communities, and empowering employees. Therefore, businesses that embrace CSR are more likely to gain consumer trust, attract and retain talented employees, and build long-term value.

Question 5

Social responsibility deals with decisions and interactions mostly on an individual level.

Accepted Answer

Social responsibility deals with decisions and interactions on a societal level, including organizations, industries, and governments. It involves considering the impact of actions and decisions on various stakeholders, including the environment, employees, customers, and communities.

Question 6

The biggest single problem for MNCs in their attempt to define a corporate-wide ethical posture is the great variation of ethical standards around the world.

Accepted Answer

The great variation of ethical standards around the world poses a significant challenge for MNCs in defining a corporate-wide ethical posture. Different countries and cultures have different values and ethical frameworks, and what is acceptable in one country may not be in another, making it challenging for MNCs to establish universal ethical standards that apply across all their operations globally.

Question 7

Globalization has reduced the ethical problems facing organizations.

Accepted Answer

Globalization has actually increased the ethical problems facing organizations due to the increased complexity and diversity of business relationships and cultural differences across borders. Organizations are expected to adhere to ethical standards across different countries and cultures, which can lead to conflicts and challenges in decision-making.

Question 8

Ethnocentric culture is an integration of the business environments in which firms currently operate.

Accepted Answer

Ethnocentric culture refers to a company that believes its home country is superior and tends to view other cultures from its own perspective. It is not an integration of business environments.

Question 9

Under governmentalism,the government uses its policy-setting role to favor national interests,rather than relying on market forces.

Accepted Answer

Under governmentalism, the government takes an active role in setting policies to promote national interests, rather than relying solely on the market forces.

Question 10

Under nationalism,the host institutes a partial or complete closing of borders to withstand competitive foreign products,using tariff and nontariff barriers.

Accepted Answer

The answer of Under nationalism,the host institutes a partial or...

Question 11

Under protectionism,public opinion is rallied in favor of national goals and against foreign influences.

Accepted Answer

The answer of Under protectionism,public opinion is rallied in favor...

Question 12

Creating Shared Value (CSV)leverages the unique resources and expertise of the company to create social value by creating economic value.

Accepted Answer

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Question 13

What is the difference between ethics and social responsibility? What are some of the social responsibility issues that MNCs must consider?

Accepted Answer

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Question 14

Global corporate culture refers to the business conduct or morals of MNCs in their relationships with individuals and entities.

Accepted Answer

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Question 15

The difference between social responsibility and ethical behavior is a matter of scope and degree.

Accepted Answer

Social responsibility involves considering the impact of an organization's actions on society at large, while ethical behavior pertains to individual actions that align with moral principles. While social responsibility can encompass ethical behavior, it extends beyond individual actions to the organization's overall impact on the community and environment. Therefore, the difference lies in the wider scope and greater degree of responsibility associated with social responsibility.

Question 16

Improved customer attraction and retention; improved reputation; and improved employee recruitment,motivation,and retention are business benefits of corporate social responsibility.

Accepted Answer

These are all commonly cited business benefits of practicing corporate social responsibility. By being socially and environmentally responsible, companies can improve their image and appeal to customers, retain existing customers, and attract new ones who value such practices. Additionally, employees are often more motivated and committed to companies that prioritize social responsibility, which helps with recruitment and retention.

Question 17

The Foreign Corrupt Practices Act (FCPA)prohibits U.S.companies from making illegal payments,other gifts,or political contributions to foreign government officials for the purpose of influencing them in business transactions.

Accepted Answer

The statement is true. The FCPA prohibits U.S. companies from making illegal payments or gifts to foreign government officials to influence them in business transactions. It was enacted to prevent corruption and promote transparency in international business dealings.

Question 18

Ethical relativism adopts the local moral code of the country in which it is operating.

Accepted Answer

Ethical relativism holds that moral standards are relative to different cultures, societies, and historical contexts. Therefore, it adopts the local moral code of the country in which it is operating.

Question 19

The increased complexity regarding the social responsibility and ethical behavior of firms across borders is brought about by the distance between the headquarters and its subsidiaries.

Accepted Answer

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Question 20

Decisions about ethics tend to be made at a higher level,affect more people,and reflect a general stance taken by a company or a number of decision makers.

Accepted Answer

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Quiz 2: Managing Interdependence, Social Responsibility, and Ethics