Deck 3: Doing Things Right: International Ethics and Social Responsibility

Question 1

What is corporate social responsibility? What are the pressures on corporations to engage in social responsibility in the global economy?

Answer 1

No Answer

Question 2

Payment of bribes to foreign governments

A) leads to little risk of prosecution in some countries.
B) is illegal in most countries
C) is illegal in the US according to the Foreign Corrupt Practices Act (FCPA)
D) is part of everyday business practice in some countries.
E) involves all of these.

Answer 2

E

Question 3

Which of the following terms refers to a bribery payment in Mexico?

A) el queso fresco.
B) la mordida.
C) baksheesh.
D) el tipo.
E) la plata.

Answer 3

B

Question 4

Although the Eco-Index has not been officially adopted, all of the following are changes Levi has made to score well on the index except for:

A) shortened transportation routes.
B) cut back on packaging costs.
C) reduced the amount of materials and types of tags.
D) donates used clothing to Goodwill.
E) all of these help the company score well.

Question 5

When doing business in countries run by governments that commit wrong acts against their citizens, most companies

A) steadfastly refused to do business in such circumstances.
B) continue to do business, arguing that more good can be accomplished by staying in a country.
C) use the "When in Rome" philosophy.
D) are paralyzed by the conflict in values.
E) find a way to outsmart the government to protect their employees.

Question 6

Companies that operate in countries where human rights abuses exist

A) are breaking an international code of conduct.
B) always turn a blind eye to a government's actions against its people.
C) are not permitted to sell to the government.
D) arguably offer opportunities for individual development and improved standard of living that could ultimately put pressure on the government to curtail abusive practices.
E) do none of these

Question 7

Individuals' moral judgments about what is right or wrong are

A) ethical values.
B) cultural relativism.
C) religious beliefs.
D) human rights.
E) all of these.

Question 8

Ethical values

A) may be fairly resistant to change.
B) are generally not published.
C) are established by the current government.
D) change rapidly with the times.
E) are up to the individual to enforce.

Question 9

In Germany and Australia, business ethics tends to be described in terms of

A) individuals.
B) standard behaviors.
C) personnel issues.
D) management actions.
E) the relationship between business and their local environment.

Question 10

Americans generally think that _____________ are the main source of ethical values.

A) cultures.
B) governments.
C) corporations.
D) individuals.
E) communities.

Question 11

The following statement is an example of which position on business ethics? "I don't think it's appropriate to pull out of Tunisia. We do not have the right to interfere with their government. In the long run, it would have a negative impact on the people."

A) Roman law.
B) anti-interventionism.
C) relativism.
D) universalism.
E) low involvement

Question 12

Payments made to low- and middle-level officials so that they will perform functions that are ordinarily part of their job, such as processing a permit

A) are illegal according to the FCPA.
B) are called questionable payments.
C) should never be permitted.
D) are called grease payments.
E) involve none of these.

Question 13

Which of the following is not illegal under the FCPA?

A) providing gifts that help overcome bureaucratic technicalities that impede business.
B) providing gifts that encourage the award of a contract.
C) making payments to an employee for information on other firms' bids.
D) providing money to senior government officials to avoid unfavorable policies.
E) all of these.

Question 14

The FCPA prohibits

A) all questionable payments by US business people.
B) corruption among foreign business people working in the US.
C) corruption among foreign business people selling to US subsidiaries.
D) some but not all questionable payments by US businesses.
E) all of these.

Question 15

What effect does the FCPA have on U.S. businesses?

Question 16

Should companies use competitive intelligence in order to develop their international strategies? Why or why not?

Question 17

List two forms of competitive intelligence that you feel are unethical and why.

Question 18

Discuss the history of the FCPA in the U.S. and whether it is still relevant today.

Question 19

Discuss the challenges of enforcing a corporate code of conduct.

Question 20

A firm with a consistent attitude of cultural relativism discovers that it is buying ores from a country where the miners are whipped and forced to work 90 hours a week, the firm will likely:

A) stop the purchases.
B) continue the purchases.
C) file a complaint.
D) attempt to persuade the mine owners to change their habits.
E) none of the above.

Question 21

Which of the following violates the U.S. Foreign Corrupt Practices Act?

A) Providing money to custom officials to get machinery through customs
B) Providing money to host government bureaucrats responsible for granting import licenses
C) Providing funds to a foreign government official in order to get new business
D) For a tip of $ 200, you can cut through the paperwork associated with an important shipment
E) none of the above

Question 22

Which form of competitive intelligence is most likely to be considered a gray area within the US context?

A) hiring a competitor's former emplyees.
B) digging through a company's trash on public property.
C) sending phony job seekers in responseto a competitor's want ad.
D) eavesdropping on private company conversations.
E) all of these.

Question 23

Which form of competitive intelligence is illegal in the US?

A) hiring a competitor's former emplyees.
B) digging through a company's trash on public property.
C) sending phony job seekers in responseto a competitor's want ad.
D) eavesdropping on private company conversations.
E) attending trade shows where competitor's wares are displayed.

Question 24

Which country has the highest rate of corruption?

A) Spain
B) Congo, DR.
C) Sierra Leone.
D) the USA.
E) India.

Question 25

Cultural relativism

A) is an popular alternative to universalism.
B) is an ethical philosophical perspective that purports ethical behavior is determined by the unique culture, laws, and business practices of the country.
C) argues that to not act in accordance with local customs and laws is disrespectful of the culture into which one comes as a guest.
D) can be a difficult position when customs violate human rights.
E) is all of these.

Question 26

Digging through a company's trash on public property is an example of

A) illegal corporate activity.
B) a common practice for US companies.
C) an ethical gray area for most companies.
D) the lowest-level job in a company.
E) competitive intelligence activity.

Question 27

It is easier to resolve ethical conflicts if you are a relativist.

Question 28

In some countries, it is common to provide a public official with a nominal payment to process paperwork for your imports.

Question 29

Universalists believe that lying is defined the same way within every cuture. They believe there is no ambiguity about how to interpret something.

Question 30

Some studies seem to indicate that the FCPA has not had a major impact on US business competitiveness overseas.

Question 31

Most countries outlaw the payment of bribes to foreign governments.

Question 32

US business has always been a model of ethical practice as evidence by the FCPA

Question 33

The use of illegal or questionable payments has been a common practice in many societies throughout history.

Question 34

Establishing a corporate code of conduct ensures employees wil engage in ethica practices.

Question 35

When asked if they would pay a bribe to do business in a large Asian market, European managers were more likely to do so in order to maintain a competitive business presence.

Question 36

Thefts of U.S. industrial secrets from firms involving Chinese citizens in particular have significanty raised the profile of competitive intellignce.

Question 37

One study found that American managers were more likely to view human relations issues (such as employee theft and misuse of company information) in ethical terms than were their counterparts from Austria and Germany.

Question 38

Studies have also shown that, even when attitudes about ethical issues are similar across countries, they may be the result of different moral reasoning processes.

Question 39

French firms tend to have ethical codes of conduct in place, while German and British firms do not.

Question 40

Cultural relativism is

A) concerned with overarching norms.
B) an absolute and objective set of ethical standards.
C) the view that the US is more ethical than other countries.
D) the unique ethical perspectives of a culture.
E) all of these.

Question 41

Questionable payments include

A) direct monetary payments.
B) bribery.
C) extortion.
D) lavish entertainment.
E) all of these.

Question 42

The following statement is an example of which position on business ethics? "I think we should pull out of X country because of the discriminatory treatment the employees are forced to face. We can't just sit back and support this country."

A) Roman law
B) anti-inverventionism
C) relativism
D) universalism
E) low involvement

Question 43

Which of the following statements is not associated with universalism?

A) there is wide acceptance of some of the basic principles for doing business.
B) advocates of this position agree that there are moral rules everyone should follow.
C) there is a variety of justifications for continuing a firm's business activity in countries where immoral actions are taking place.
D) there is ambiguity about how to interpret a basic principle or code.
E) not all countries accept a basic code since political pressures can play a role in its acceptance.

Question 44

A set of principles set forth for companies doing business in South Africa during apartheid, which included equal treatment of all races is called

A) Helsinki Final Act.
B) Sullivan Principles.
C) apartheid.
D) UN Code of Conduct on Transnational Corporations.
E) European Convention on Human Rights.

Question 45

An individuals' moral judgments about what is right or wrong are called

A) belief systems.
B) ethical values.
C) cultural assumptions.
D) social responsibility.
E) values posture.

Question 46

Undercover information-gathering that attempts to anticipate a competitor's business moves, that includes a range of data collection techniques, and that can walk a fine line between the ethical and legal is called

A) competitive intelligence.
B) corruption.
C) Yazuka in Japan.
D) market research.
E) all of these.

Question 47

Competitive intelligence is always legal and ethical.

Question 48

Questionable payments refer to practices like bribery, extortion, and "grease" payments to bureaucrats and business leaders, both foreign and domestic.

Question 49

According to government reports, economic espionage is on the rise and responsible for billions in annual osses among U.S. businesses, governments and universities.