Deck 16: Defining Ethics and Corporate Social Responsibility in the International Marketplace

Question 1

Unlike some other developing nations,corporate social responsibility is deeply rooted in the Indian tradition.

Answer 1

True

Question 2

Ethics are __________________________________________________.

A) codes of conduct stipulating how members of a society are required to act
B) behavioral standards determined by society that stipulate how its members should act in a moral manner
C) enforced by relevant government agencies such as the police
D) consistent from society to society

Answer 2

B
Explanation: This is the definition of law, not ethics.

Question 3

Disregarding an ethical code may result in sanctions that are short of criminal proceedings.

Answer 3

True

Question 4

When Liu Jiang does business in Singapore,he is careful not to request any special favors from his local distributors in terms of gifts,contracts,or services.While these behaviors are viewed as nothing more than proper business etiquette at home in China,he knows that it could jeopardize his transactions in Singapore.Liu Jiang practices _____________.

A) ethical protectionism
B) ethical universalism
C) ethical relativism
D) ethical absolutism

Question 5

The European Commission Union defines corporate social responsibility,or CSR,as _____________________________.

A) the idea that a firm's continuous profitability is the best means of improving the lot of society overall
B) the government-imposed need for each European firm to accommodate the health care, child care, and elder care costs of its employees
C) a concept whereby companies integrate social and environmental concerns in their business operations and their interactions with their stakeholders on a voluntary basis
D) the requirement of all European MNCs to pay a proportion of total revenues to organizations dedicated to the social welfare of EU citizens

Question 6

The Amsterdam-based NGO that has developed a widely used sustainability framework adopted by 1500 companies worldwide is the ___________________________.

A) World Bank
B) Global Reporting Initiative
C) European Union Commission
D) International Labor Organization

Question 7

Ethical universalism propones that __________________________.

A) when in Rome, one should do as the Romans do
B) one should always give preference to one's own ethical values
C) the ethical nature of an action is independent of cultural settings
D) the ethical nature of an action can only be determined relative to the moral norms of the particular culture where the action takes place

Question 8

According to Transparency International,the value of global bribery is ______________ annually.

A) €1.0 billion
B) U.S.$145.0 billion
C) €1.0 trillion
D) U.S.$1.0 trillion

Question 9

The incidence of bribery payments is greater in developing countries.

Question 10

Governments,not multinational organizations,are responsible for monitoring bribery and corruption.

Question 11

When Hindustan Unilever Limited adopts a village and provides improved medical and educational facilities,it is an example of _______________________.

A) both corporate philanthropy and corporate social responsibility
B) corporate philanthropy
C) social responsibility
D) a cause-related marketing program

Question 12

While CSR activities and reporting are extensive in both developed and developing countries.

Question 13

The idea that businesses should act in the interests of society at large,taking into consideration all of its stakeholders is the foundation of ________________________________.

A) business law
B) social responsibility
C) stock holder responsibility
D) ethical universalism

Question 14

When determining if a gift given to you is constituted as a bribe or a token of esteem,you should consider ____________________.

A) the context of gift giving and the material value of the gift
B) the value of the contract for which you are negotiating
C) the probability that you will pay fines or serve jail time for accepting the gift
D) the likelihood that you will lose a customer if you do not accept the gift

Question 15

China is only at the beginning of forming a viable CSR philosophy and governance.

Question 16

Codes of conduct stipulating how members of a society are required to act are referred to as ___________________.

A) principles
B) morals
C) ethics
D) laws

Question 17

The adoption of corporate social responsibility programs in Brazil has been attributed to all of these factors except ___________________.

A) the rise of global codes
B) a desire by companies to gain more legitimacy and increase customer loyalty
C) increase of NGOs operating in the country
D) concern that the World Bank would withdraw their environmental loan to Brazil

Question 18

Extraterritorial application of the U.S.Foreign Corrupt Practices Act is one example of ____________________________.

A) ethical absolutism
B) ethical universalism
C) ethical realism
D) ethical relativism

Question 19

What percent of tax revenues are lost by Asian governments each year by virtue of corruption?

A) 50%
B) 10%
C) 38%
D) Corruption does not impact tax revenues

Question 20

Some of the adoption of CSR activities in non-developed countries is attributed to NGO organizations.

Question 21

Donaldson and Dunfee refer to those situations in which unethical behavior in your home country is considered acceptable in another culture as ________________________.

A) core moral values
B) ethnocentrism
C) ethical relativism
D) moral free space

Question 22

The single main factor that motivates corruption and bribery is monetary gain.

Question 23

Anti-corruption and bribery legislation has thus far been limited to developed nations.

Question 24

A conflict of tradition occurs when an American businessperson is expected to present a gift to his Japanese distributor partners.

Question 25

Some studies have found that ethical behavior has less impact on corporate performance in the long run than in the short run.

Question 26

The U.S.regulation which requires a company to publicly disclose its code of ethics if its stock is traded under the purview of the SEC is known as the _____________ Act.

A) Sarbanes-Oxley
B) Foreign Corrupt Practices
C) Sherman Anti-Trust
D) Transparency International

Question 27

Benjai Pertiwi is torn.His U.S.firm's interest in constructing a manufacturing facility in his father's Indonesian village would provide hundreds of much-needed jobs to the area.The government welcomes the investment,and Benjai's company looks forward to dramatic cost savings as Indonesia does not require the same level of pollution controls or worker safety as a U.S.-based facility would.Although pollution and safety issues could harm residents,their current economic state almost mandates that Benjai promote the facility.Benjai is facing a conflict of _________________________.

A) relative development
B) tradition
C) interest
D) transparency

Question 28

Curry is astonished.Her firm has never knowingly given or accepted a bribe from any customer or supplier,foreign or domestic.And,her company has strict controls that assure the propriety of all foreign transactions.Yet she is still being severely admonished for violating the FCPA.What did Curry do wrong?

A) Her firm must have failed to maintain books and records that accurately account foreign.
B) She must have spoken with a government official in China about foreign exchange.
C) Her firm must have failed to publish a corporate Code of Ethics.
D) Her firm must have solicited bids for construction contracts on the Internet.

Question 29

A study between 41 and 86 companies in the UK taken from the FTSE 350 found that ____________________________________.

A) while profitability was greater among firms with codes of ethics, firms without codes experienced less P&L volatility
B) codes of ethics had no appreciable effect on a firm's financial performance
C) the presence of a code of ethics proved to be detrimental to the financial performance of firms
D) those firms with a code of ethics exhibited greater levels of financial performance than those without a code

Question 30

Business practices that may be considered unethical in one culture may be acceptable in another.

Question 31

The Sarbanes-Oxley Act of 2002 is composed of all the following requirements except _______________________.

A) greater corporate transparency
B) prosecution of whistleblowers
C) senior management accountability
D) enhanced control systems

Question 32

The measures invoked by the UN Convention Against Corruption are mandatory in both private and public sector cases.

Question 33

When British firm Cogswell LLC was found to have bribed several officials in Myanmar to obtain release of a large shipment of goods held ostensibly for illegal content,it was required by the UK government to pay the penalties invoked by _____________.

A) the UN Convention against Corruption
B) Sarbanes-Oxley
C) OECD Anti-Bribery Convention
D) Transparency International

Question 34

The anti-corruption organization based in Germany that measures the extent of corruption and bribery worldwide is ________________.

A) OECD Bribery Convention
B) Transparency International
C) UN Convention Against Corruption
D) Foreign Corrupt Practices Convention

Question 35

An ombudsman and protection for whistleblowers are necessary elements for the implementation of a(n)______________.

A) employee code of conduct
B) anti-bribery policy
C) corporate responsibility statement
D) ethics code

Question 36

A study of Corporate Revealed Ethics and Corporate Applied Ethics in the UK determined that ____________________.

A) accounting measures are less influenced by business ethics than by market factors
B) neither Corporate Revealed Ethics codes nor Corporate Applied Ethics (ethical training) had an impact on firm performance
C) in the long run, firms that specifically provided training on their code of ethics to their employees, thus implementing CAE, financially outperformed those with codes but no training
D) firms that specifically provided training on their code of ethics to their employees, thus implementing CAE, achieved greater financial performance from both short and long-term perspectives as compared to those who had not

Question 37

An Italian distributor of UK-based Brit-Tel was found to have offered a substantial payment to an Italian telecom official in order to have Brit-Tel's products specified in a government bid.Because Brit-Tel was not directly involved in the scenario,it did not suffer penalties under the UK Bribery Bill.