Deck 5: Ethics and International Business

Question 1

Easy accessibility of the Internet has led to a perceptible decline in deceptive marketing.

Answer 1

False

Question 2

Ethical behavior is critical to business success.

Answer 2

True

Question 3

Scholars examining ethics from the perspective of relativism hold that ethical truths are absolute.

Answer 3

False

Question 4

Corporate codes of conduct emphasize standards related to ethics and social responsibilities.

Question 5

A corporate culture that advocates profit over sustainability and human welfare cannot lead to employee abuse.

Question 6

Standards of ethical behavior are uniform worldwide.

Question 7

Intellectual property rights law enacted in one country are enforceable worldwide.

Question 8

In countries with questionable ethical norms, it is usually ill-advised to maintain ethical standards superior to what is required by local laws and values.

Question 9

The five approaches to analyzing ethical dilemmas often lead to similar solutions.

Question 10

When it comes to ensuring ethical behavior, experienced managers follow a systematic process.

Question 11

Failure to adopt CSR behaviors can have high detrimental effects on a company.

Question 12

Ethics and appropriate behavior transcend all international business activities and figure prominently in management decisions about financial performance and competitive advantage.

Question 13

The most advanced companies monitor suppliers to ensure that they use sustainable practices.

Question 14

Corporate social responsibility represents the apex of the pyramid of ethical behavior.

Question 15

CSR improves employee perceptions of a company, which in turn enhances their loyalty and focus on company goals.

Question 16

Grease payments intended to expedite transactions are both accepted and legal in many countries.

Question 17

Ethical behavior represents the base of the the pyramid of ethical behavior.

Question 18

Widespread corruption hinders economic development.

Question 19

The utilitarian approach is based on the belief that, regardless of how one deals with an ethical dilemma, human dignity must be preserved.

Question 20

Piracy is equivalent to counterfeiting.

Question 21

Improper ethical behavior is unlikely to result when bad means are justified by good ends.

Question 22

________ is the procurement of products or services from suppliers located abroad.

A) Licensing
B) Franchising
C) Deceptive marketing
D) Global sourcing

Question 23

Creating alternatives is the last step of the framework for arriving at ethical decisions.

Question 24

Relying on one's instincts is often the best way to identify an ethical problem.

Question 25

In helping identify ethical problems, the firm's code of conduct should be tailored to match the norms of each individual region from which the firm operates.

Question 26

The five approaches to analyzing ethical problems rarely conflict with each other.

Question 27

________ refers to offering, giving, receiving, or soliciting anything of value to influence the actions of a government official or a corporate manager.

A) Patenting
B) Piracy
C) Bribery
D) Normativism

Question 28

Which of the following acts makes it illegal for U.S. firms to offer bribes to foreign parties in order to secure or retain business?

A) the U.S. Foreign Corrupt Practices Act
B) the Robinson-Patman Act
C) the U.S. Securities Exchange Act
D) the Sherman Antitrust Act

Question 29

The Global Reporting Initiative pioneered the development of the most widely used sustainability reporting framework.

Question 30

Evaluation of results is the last step of the framework for arriving at ethical decisions.

Question 31

In countries with minimal corruption ________.

A) commercial laws are unfair and discriminatory
B) financial and accounting information is transparent
C) direct investment does not take place
D) the contribution of the private sector to the national GDP is negligible

Question 32

Acknowledging the presence of an ethical problem is the first step of the framework for arriving at ethical decisions.

Question 33

Corruption is defined as ________.

A) the system of procedures and processes by which corporations are managed, directed, and controlled
B) a manner of operating a business that meets or exceeds the ethical, legal, commercial, and public expectations of customers
C) the abuse of power to achieve illegitimate personal gain
D) the tendency to make decisions based purely on cognitive factors

Question 34

Which of the following countries have the LEAST corruption?

A) Mexico
B) Philippines
C) Russia
D) Denmark

Question 35

________ are moral principles and values that govern the behavior of people, firms, and governments, regarding right and wrong.

A) Attitudes
B) Ethics
C) Laws
D) Biases

Question 36

According to the framework for arriving at ethical decisions, a course of action must be identified as soon as the ethical problem is detected.

Question 37

________ refers to the system of procedures and processes by which corporations are managed, directed, and controlled.

A) Corporate governance
B) Deceptive marketing
C) Global sourcing
D) Corporate social responsibility

Question 38

Which of the following is true with regard to corruption?

A) Countries with minimal corruption fail to attract direct investment.
B) In firms, corruption rarely occurs across the range of value chain activities.
C) Corruption harms the poorest in societies.
D) Under the Sherman Antitrust Act, firms charged for corruption may be fined $2 million and managers can be imprisoned for up to five years.

Question 39

________ means meeting humanity's needs without harming future generations.

A) Sustainability
B) Corporate social responsibility
C) Ethical behavior
D) Casuistry

Question 40

Experienced managers scan operations in each country and potential partners for the possibility of ethical abuses. Such scanning is an ongoing process because company operations and environments evolve continuously.

Question 41

________ is the top market for counterfeit and pirated goods.

A) China
B) The United States
C) Iran
D) Russia

Question 42

Which of the following refers to a typical CSR value?

A) increasing profits
B) upholding market monopolies
C) engaging in philanthropy
D) sustaining sweatshops

Question 43

The Nike "Swoosh" is an example of a ________.

A) patent
B) fad
C) copyright
D) trademark

Question 44

Which of the following is true with regard to bribery?

A) Bribery promotes a culture of dishonesty and immorality.
B) Bribery poses no significant threat to market economies.
C) Bribery is considerably rare in developing economies.
D) Bribery is not acceptable in much of the world.

Question 45

Trademarks, copyrights, and patents are examples of ________.

A) intellectual property rights
B) fundamental rights
C) tangible property rights
D) ethical rights

Question 46

An international human rights organization recommends that its member countries review their human rights policies on a periodic basis to ensure that their governments are upholding ethical standards for the treatment of prisoners. Which of the following represents the most effective reasoning in support of the organization's recommendation?

A) Ethical policies and practices tend to remain consistent within the same country over time.
B) Nations should emphasize more on rehabilitation than retribution in their treatment of prisoners.
C) Nations should enforce only those ethical standards that have been adopted by other nations.
D) Ethical standards change over time, so national policies should be updated as necessary.

Question 47

Firms with a strong social interest ________.

A) openly support the use of sweatshops
B) aim to optimize work conditions and diversity in hiring
C) are reluctant to provide health insurance to employees
D) engage in deceptive marketing

Question 48

Which of the following grants protections to the creators of art, music, books, software, movies, and TV shows?

A) patent
B) trademark
C) copyright
D) domain registration

Question 49

Firms with strong environmental interests are most likely to ________.

A) provide employees educational opportunities
B) encourage the use of sweatshops
C) optimize diversity in hiring
D) minimize pollutants in manufacturing

Question 50

An individual who believes in ethical normativism is most likely to view ethical behavioral standards as ________.

A) universal
B) constantly changing
C) dependent on societal norms
D) superior to religious beliefs

Question 51

Which of the following behaviors of a firm can be called unethical?

A) setting up operations abroad
B) manufacturing luxury consumer goods
C) tolerating sweatshop conditions
D) failing to meet shareholders' expectations with regard to annual profit

Question 52

________ confer the exclusive right to manufacture, use, and sell products or processes.

A) Patents
B) Trademarks
C) Trade secrets
D) Copyrights

Question 53

Sustainable firms ________.

A) have a high employee turnover rate
B) have greater liabilities than assets
C) avoid emitting toxic wastes
D) actively resist organizational change

Question 54

According to relativists ________.

A) a passive acceptance of others' values is unethical
B) ethical truths differ from group to group
C) firms and individuals should seek to uphold ethical behavioral standards consistently around the world
D) ethical truths are absolute

Question 55

The process of reproducing assets without compensating those who originally created them is known as ________.

A) counterfeiting
B) bribery
C) product differentiation
D) trademarking

Question 56

________ refers to ideas or works created by individuals or firms and includes a variety of proprietary, intangible assets: discoveries and inventions; artistic, musical, and literary works; and words, phrases, symbols, and designs.

A) Global sourcing
B) Corporate governance
C) Constant capital
D) Intellectual property

Question 57

Which of the following would most likely be considered an appropriate action for a multinational company in meeting its global corporate social responsibility obligations?

A) lowering production costs for specific manufactured items
B) improving the efficiency of assembly line operations
C) developing a strategic plan to enter an emerging market
D) promoting rights for people with disabilities

Question 58

________ represents the base of the pyramid of ethical behavior.

A) Ethical behavior
B) Corporate social responsibility
C) Complying with laws and regulations
D) Guarding against corruption

Question 59

________ represents the apex of the pyramid of ethical behavior.

A) Ethical behavior
B) Corporate social responsibility
C) Complying with laws and regulations
D) Guarding against corruption

Question 60

Economic interests refer to a firm's economic impact on ________.

A) the localities where it does business
B) the top management of the firm
C) the middle management of the firm
D) the society as a whole

Question 61

When making decisions regarding ethical business actions, managers should ________.

A) minimize employee empowerment to achieve greater control
B) focus mainly on the company's obligations to produce profits for its shareholders
C) place the highest emphasis on enhancing the company's ability to benefit from a common pool of resources
D) balance their obligation to shareholders with explicit contributions to the broader public good

Question 62

Acme Ethical Standards (Scenario)
Four senior managers of Acme International meet to discuss strategies for improving ethical practices in the company's worldwide operations. Jang heads the company's manufacturing division in China, while Luis and Marta are based in the Finland and U.S. sales divisions, respectively. Geoff manages the research and development office, based in Brazil.
Who among the following managers is most likely to raise concern over the ban on advertising directed at children in his/her country?

A) Marta
B) Geoff
C) Luis
D) Jang

Question 63

In the five-step framework for making ethical decisions, implementing a course of action implies ________.

A) assessing how effective the decision was
B) reviewing any proposed action to ensure it is acceptable according to company policy and the firm's code of conduct
C) determining the nature and dimensions of the ethical problem
D) creating new rules, processes, or procedures, and putting these into effect

Question 64

In order to be effective, a corporate code of conduct should be designed to function like a ________.

A) business white paper
B) moral compass
C) project plan
D) political treatise

Question 65

In terms of CSR and sustainability, going ________ means institutionalizing appropriate behavior into the organization's culture so it becomes part and parcel of strategy.

A) wide
B) deep
C) local
D) global

Question 66

Which of the following is true of a good code of conduct?

A) It guides employee behavior in all situations.
B) It does not define the values and principles that are intended to guide organizational decision making.
C) It emphasizes profit over righteousness.
D) It is a cure for all ethical dilemmas.

Question 67

Which of the following approaches to ethical standards for corporate governance reflects the view that the best action emphasizes the welfare of the entire community or nation?

A) rights approach
B) utilitarian approach
C) common good approach
D) virtue approach

Question 68

When using the five-step framework for making ethical decisions, which of the following steps involves investigating which individuals have a stake in the outcome?

A) examining the facts
B) implementing a decision
C) evaluating alternatives
D) identifying the ethical problem

Question 69

Which of the following is true with regard to the rights approach?

A) It is based on the belief that the best action treats everyone equally and fairly.
B) It produces the greatest balance of good over harm to customers, employees, shareholders, the community, and the natural environment.
C) According to the rights approach, the most important virtues are truth and prudence.
D) It is based on the belief that, regardless of how you deal with an ethical dilemma, human dignity must be preserved.

Question 70

Acme Ethical Standards (Scenario)
Four senior managers of Acme International meet to discuss strategies for improving ethical practices in the company's worldwide operations. Jang heads the company's manufacturing division in China, while Luis and Marta are based in the Finland and U.S. sales divisions, respectively. Geoff manages the research and development office, based in Brazil.
________ is most likely to point to a controversial practice in his/her country in which the compensation of top executives is far greater than that of low-ranking subordinates.

A) Geoff
B) Luis
C) Jang
D) Marta

Question 71

Sustainable practices lead to ________.

A) cost savings from more efficient production
B) the abolition of labor unions
C) higher employee turnover
D) reduced operational flexibility

Question 72

When applying the five-step framework for making ethical decisions, managers should, at first, ________.

A) evaluate alternatives
B) examine the facts
C) recognize the ethical problem
D) implement a decision

Question 73

In a world ever sensitive to social and environmental issues, more and more firms are embracing CSR and sustainability. Such firms are more likely than not to ________.

A) develop closer relations with foreign stakeholders to better understand their needs and work jointly toward solutions
B) minimize their contribution to the local community in order to maximize profits
C) be reluctant to hire managers from around the world
D) favor region-specific CSR standards to global CSR standards for foreign operations

Question 74

Which of the following approaches to ethical standards for corporate governance reflects the view that the best action treats everyone equally and in a just manner?

A) fairness approach
B) virtue approach
C) utilitarian approach
D) rights approach

Question 75

According to the virtue approach ________.

A) the best action emphasizes the welfare of the entire community or nation
B) the best action emphasizes moral excellence and righteousness that provide for the full development of our humanity
C) the best ethical action is the one that provides the most good or the least harm
D) the best action protects and respects the moral rights of everyone involved

Question 76

Acme Ethical Standards (Scenario)
Four senior managers of Acme International meet to discuss strategies for improving ethical practices in the company's worldwide operations. Jang heads the company's manufacturing division in China, while Luis and Marta are based in the Finland and U.S. sales divisions, respectively. Geoff manages the research and development office, based in Brazil.
The managers discuss various ethical problems commonly encountered in their local territories. Which of the following representatives is most likely to label counterfeiting of goods as the biggest challenge in his/her country?

A) Jang
B) Luis
C) Marta
D) Geoff

Question 77

Which of the following approaches to ethical standards for corporate governance reflects the view that the best ethical action is the one that provides the most good or the least harm?

A) common good approach
B) utilitarian approach
C) virtue approach
D) fairness approach

Question 78

In terms of CSR and sustainability, going wide implies ________.

A) a continuous effort to understand how CSR and sustainability affect every aspect of the firm's operations worldwide
B) institutionalizing appropriate behavior into the organization's culture so it becomes part and parcel of strategy
C) encouraging unstructured learning among employees
D) a sustained effort to reduce control mechanisms throughout the organization

Question 79

In the five-step framework for making ethical decisions, which of the following approaches to evaluating actions is being used by a manager who questions whether a proposed action embodies character strengths he/she values?

A) rights approach
B) virtue approach
C) common good approach
D) utilitarian approach

Question 80

The ________ is a policy platform and practical framework for companies committed to sustainability and responsible business practices. It is the world's largest voluntary corporate citizenship initiative, representing thousands of businesses in more than 135 countries.

A) Organization for Economic Cooperation and Development
B) United Nations Global Compact
C) International Economic Development Council
D) Global Reporting Initiative