Question 1

_____ is referred to as a course of action that does not violate the accepted principles of right or wrong governing the conduct of businesspeople.

Accepted Answer

The term that refers to a course of action that aligns with the principles of right and wrong is ethical. Ethical strategy refers to the set of actions taken by a company that aligns with ethical principles. The other options do not specifically relate to principles of right or wrong in business.

Question 2

The righteous moralist approach to ethics is typically associated with managers from developed nations.

Accepted Answer

The statement is true, as the righteous moralist approach to ethics emphasizes a strict adherence to ethical principles and values, which are often promoted in developed nations. Managers from these regions may be more likely to adopt this approach in their decision making.

Question 3

The action that produces the greatest good for the greatest number of people can result in the unjustified treatment of a minority.

Accepted Answer

This concept is known as the "tyranny of the majority" and highlights the potential negative consequences of utilitarianism, which prioritizes the greatest good for the greatest number. In some cases, this approach can lead to the neglect or mistreatment of minority groups.

Question 4

_____ are the accepted principles of right or wrong governing the conduct of businesspeople.

Accepted Answer

Business ethics refers to the principles and values that guide the behavior of individuals and organizations in the business world. It dictates what is right and wrong and influences decision-making processes. A strong ethical culture is integral to the success and sustainability of a business. The other choices (A, C, D, and E) are not related to the accepted principles of right or wrong governing the conduct of businesspeople.

Question 5

John Rawls's veil of ignorance is a conceptual tool that contributes to the moral compass that managers can use to help them navigate through difficult ethical dilemmas.

Accepted Answer

The veil of ignorance prompts managers to consider ethical decisions from an impartial perspective, making the tool valuable in ethical decision making.

Question 6

Business leaders should use every relevant opportunity to stress the importance of business ethics and make sure that key business decisions not only make good economic sense but also are ethical.

Accepted Answer

Business leaders have a responsibility to promote ethical behavior and ensure that business decisions are not only financially sound but also ethical. This helps to build trust among stakeholders and contribute to the long-term success of the business.

Question 7

Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from employees.

Accepted Answer

Ethics officers are internal ombudspersons who handle confidential inquiries and concerns from employees regarding ethical and legal issues. They provide guidance and support to employees and ensure that the organization's ethical standards are upheld.

Question 8

Firms now have ethics officers to penalize those employees who exercise moral courage.

Accepted Answer

The role of ethics officers is to encourage and support ethical behavior within a company, not to penalize those who exercise moral courage.

Question 9

Customers,suppliers,and lenders constitute the internal stakeholders of an organization.

Accepted Answer

Customers, suppliers, and lenders are considered external stakeholders, as they are not part of the organization but have an interest in its operations. Internal stakeholders typically include employees, managers, and owners.

Question 10

Moral courage enables managers to walk away from a decision that is profitable but unethical.

Accepted Answer

Moral courage is the willingness to stand up for ethical principles and values, even if it means risking one's own interests, comfort, or safety. In the scenario given, a decision may be profitable, but if it goes against ethical principles or values, a manager with moral courage would be able to walk away from it, despite the potential loss of profit.

Question 11

John Rawls argues that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage.

Accepted Answer

This is the idea behind Rawls' theory of justice as fairness, which emphasizes the importance of equal distribution of resources unless it benefits society as a whole to have some level of inequality.

Question 12

Kantian ethics assert that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation,that manager should not either.

Accepted Answer

Kantian ethics emphasize that individuals should act based on moral principles that can be universally applied, regardless of cultural or societal differences. Therefore, if firms from other nations are not following ethical norms in a host nation, a Kantian manager should still abide by ethical principles and not simply follow the unethical actions of others.

Question 13

The first step in an ethical algorithm is to identify those common resources that are not owned by any one in particular but are used by everybody.

Accepted Answer

The answer of The first step in an ethical algorithm...

Question 14

The term _____ refers to accepted principles of right or wrong that govern the conduct of a person,the members of a profession,or the actions of an organization.

Accepted Answer

Ethics refer to moral principles and values that guide acceptable behavior. They are a set of standards that help individuals and organizations to determine the right course of action in various situations. Strategy refers to the plan of action that an organization takes to achieve its goals. Goodwill refers to the reputation or positive image that a company has earned. Mission refers to the purpose or reason for an organization's existence. Vision refers to the desired future state or goal that an organization wants to achieve.

Question 15

Internal stakeholders of a company do not have an exchange relationship with the company.

Accepted Answer

Internal stakeholders of a company, such as employees and shareholders, do have an exchange relationship with the company. They provide their labor, investments, or expertise in exchange for compensation, benefits, or returns on their investment.

Question 16

According to John Rawls difference principle,wide variations in income and wealth can be considered just if the market-based system that produces this unequal distribution also benefits the least-advantaged members of society.

Accepted Answer

According to John Rawls, the difference principle justifies wide variations in income and wealth if and only if they result in improving the condition of the least advantaged individuals in society. Rawls believed that inequality is only justifiable if it benefits everyone and not just a privileged few. This concept is at the heart of his theory of justice as fairness. Therefore, option A is true.

Question 17

To strengthen the moral courage of employees,companies should not retaliate against those employees who complain about unethical actions.

Accepted Answer

Retaliation against employees who report unethical actions can foster a culture of fear and discourage other employees from coming forward with similar complaints. Instead, companies should encourage and protect whistleblowers, and take actions to address any unethical behavior that is reported. This can help build trust and increase the moral courage of employees.

Question 18

Star Synergy Inc.,a chemical dye manufacturing firm headquartered in the U.S.,has started its production units in the less developed nations of the world in order to benefit from the low production costs.However,the process of dye extraction results in the release of toxic substances.Hence,the most ethical and economical way for the firm to tackle this problem will be to:

Accepted Answer

Introducing the company's home nation environmental standards in their less developed nation production units ensures that the firm maintains high environmental protection standards, which is both ethical and can be economical in the long run by avoiding potential fines and damage to reputation.

Question 19

Multinational corporations do not qualify to act as moral agents within the framework of rights theories.

Accepted Answer

The answer of Multinational corporations do not qualify to act...

Question 20

External stakeholders are individuals or groups who have no interest,claim,or stake in a company.

Accepted Answer

External stakeholders may have interest or a claim in a company, such as customers, suppliers, and shareholders.

Quiz 5: Ethics in International Business