Question 1

Sean, a senior manager in Freedom, adheres to the relativist view regarding ethical standards. He goes by the rule, "When in Rome, do as the Romans do." Sean is most likely to agree strongly with which of the following views?

Accepted Answer

Sean's relativist view means that he believes ethical standards are relative to the culture or country in which they occur. Therefore, he would likely agree that Freedom should passively accept the practices that prevail in countries where it does business, rather than imposing its own ethical standards on them. Option A is not correct as it suggests avoiding partnerships with foreign entities altogether. Option C is not correct as it suggests not hiring foreign managers. Option D is not correct as it suggests instituting a single global code of conduct, which would go against Sean's relativist view.

Question 2

Standards of ethical behavior are uniform worldwide.

Accepted Answer

Standards of ethical behavior vary by culture, religion, and personal values. What is considered ethical in one country or organization may not be the same in another.

Question 3

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

Accepted Answer

Ethical normativism is the belief that ethical standards are universal and apply to all individuals and cultures. It holds that there are certain moral principles that are objectively true and binding, regardless of context or circumstance. Therefore, an individual who believes in ethical normativism would view ethical behavioral standards as universal.

Question 4

________ means meeting humanity's needs without harming the ability of future generations to meet their needs.

Accepted Answer

Sustainability is the concept of meeting the needs of the present without compromising the ability of future generations to meet their own needs. It involves balancing economic, environmental, and social considerations to ensure that resources are used in a way that is not detrimental to the planet or future generations. Corporate social responsibility and ethical behavior are related but do not encompass the same idea as sustainability, and casuistry is a philosophical approach to ethics that is not directly related to sustainability.

Question 5

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?

Accepted Answer

Counterfeiting is a widespread problem in Asian countries, especially in China and South Korea, which are Jang's territories. Therefore, Jang is the most likely representative to label counterfeiting of goods as the biggest challenge.

Question 6

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

Accepted Answer

Ethics are moral principles and values that guide behavior, distinguishing right from wrong. Attitudes are a person's overall evaluation of a concept or belief, whereas laws are rules and regulations enforced by a government or authority. Biases are preconceived opinions that may cause unfair judgment or treatment of a person or group.

Question 7

Piracy is equivalent to counterfeiting.

Accepted Answer

Both piracy and counterfeiting involve the unauthorized copying and distribution of copyrighted or trademarked content, whether it be music, software, or physical goods. Both activities harm the original creators and legitimate distributors of the content, as they miss out on revenue from the sale of their authentic products.

Question 8

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

Accepted Answer

Ethics and appropriate behavior are universal principles that apply to all business activities, including international ones. Management decisions about financial performance and competitive advantage should always be made with considerations for ethical and responsible business practices.

Question 9

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

Accepted Answer

Tolerating sweatshop conditions is an unethical behavior because it involves exploiting workers and violating their basic human rights. Setting up operations abroad and manufacturing luxury consumer goods may not be unethical in themselves, as long as they are done in compliance with laws and ethical business practices. Failing to meet shareholders' expectations with regard to annual profit may also not necessarily be unethical, as long as the company is transparent and operates in good faith.

Question 10

Advances in communications technologies makes it difficult to deceive consumers in foreign countries .

Accepted Answer

Advances in communications technologies have made information more accessible, but they also enable deceptive practices to be more sophisticated and widespread, affecting consumers globally.

Question 11

According to relativists ________.

Accepted Answer

Relativists believe that ethical truths differ from group to group and that there is no objective or universal ethical standard. Therefore, they do not adhere to the concept of absolute ethical truths. They also do not necessarily believe in the need for individuals or firms to uphold consistent ethical standards globally, as those standards may differ depending on the cultural or societal context. However, they do not necessarily advocate for a passive acceptance of others' values without critical examination or evaluation.

Question 12

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

Accepted Answer

A corporate culture that prioritizes profit over sustainability and human welfare can lead to employee abuse. This is because when profit is the main concern, employees may be undervalued and exploited in order to cut costs and increase profits. This can result in long working hours, low wages, unsafe working conditions, lack of benefits, and other forms of mistreatment. A culture that values sustainability and human welfare, on the other hand, prioritizes the well-being of employees and recognizes that success is not just measured in financial terms.

Question 13

Who among the following managers is most likely to raise concern over the ban on advertising directed at children in his/her country?

Accepted Answer

Luis is based in Finland, a country known for its strict regulations on advertising, especially those directed at children, to protect them from undue influence. This makes it likely that Luis would raise concerns over the ban on advertising directed at children in his/her country.

Question 14

________ represents the base of the pyramid of ethical behavior.

Accepted Answer

Complying with laws and regulations is the foundation of ethical behavior. Failure to comply with laws and regulations can have serious consequences, such as legal action and damage to a company's reputation. Therefore, it is essential to follow these guidelines to ensure ethical behavior.

Question 15

________ 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.

Accepted Answer

Marta is likely to point to the controversial practice of unequal compensation between top executives and low-ranking subordinates in her country. This is because she would be concerned about the social and economic implications of such a practice, and would likely advocate for more equitable compensation policies.

Question 16

Widespread corruption hinders economic development.

Accepted Answer

Corruption leads to a lack of transparency, unequal distribution of resources, and discourages foreign investment, all of which hinder economic development.

Question 17

________ represents the apex of the pyramid of ethical behavior.

Accepted Answer

Corporate social responsibility represents the apex of the pyramid of ethical behavior because it goes beyond mere compliance with laws and regulations, incorporating ethical considerations into business practices to benefit society as a whole.

Question 18

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

Accepted Answer

Intellectual property rights laws vary by country and are only enforceable within the legal jurisdiction of that country. However, there are international agreements and treaties, such as the Paris Convention and the World Intellectual Property Organization (WIPO), that provide some level of protection and enforcement of intellectual property rights across borders.

Question 19

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?

Accepted Answer

Ethical standards are not static and may change over time due to various factors such as evolving social norms, changes in legal frameworks, and advancements in technology. Therefore, it is important for member countries to periodically review their human rights policies to ensure that they are keeping up with the changing ethical standards and are providing just treatment to their prisoners.

Question 20

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

Accepted Answer

Corporate governance refers to the framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its stakeholders, including shareholders, customers, employees, and society at large. It encompasses a range of issues, such as board composition, executive pay, risk management, and shareholder rights. Effective corporate governance is critical for maximizing long-term value creation and minimizing risks and scandals.

Quiz 4: Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance