Question 1

The Foreign Corrupt Practices Act was subsequently amended to allow for speed money or grease payments,which are payments made to

Accepted Answer

The amendment allows for "facilitating payments" or "grease payments," which are intended to expedite or secure the performance of a routine governmental action that the company is entitled to receive.

Question 2

Which of the following statements is true about the Sullivan principles?

Accepted Answer

The Sullivan principles were a set of corporate social responsibility standards that encouraged companies operating in South Africa to promote equal rights and opportunities for non-whites. One of the main goals of these principles was to promote the abolition of apartheid laws. Therefore, statement B is true. Statements A, C, D, and E are false.

Question 3

Due to certain strict environmental and employment standards in its home nation,Taurus Inc.has shifted its operations to developing nations.Hence,the firm has now been able to gain competitive advantage by avoiding costly pollution controls.This strategic move of Taurus Inc.will be considered

Accepted Answer

Taurus Inc.'s decision to shift its operations to developing nations solely to avoid costly pollution controls is considered an immoral choice. This decision can harm the environment and impact the health of the local population. Furthermore, it is not a sustainable long-term strategy as stricter regulations can eventually be enforced globally.

Question 4

The term global commons refers to

Accepted Answer

The term global commons refers to natural resources, such as the oceans and the atmosphere, from which everyone benefits but for which no one is specifically responsible. These resources are shared by all people and nations, and their protection and management require international cooperation.

Question 5

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

Accepted Answer

Internal stakeholders of a company, such as employees, shareholders, and managers, have a vested interest in the success and operations of the company, and therefore have an exchange relationship with the company. They may provide their services or investment in exchange for compensation or returns on their investment.

Question 6

Delta Inc.moved its entire production operation to the country of Xondervan,where the company was free to dump pollutants to the atmosphere.Delta Inc.is contributing to

Accepted Answer

Delta Inc.'s actions contribute to the global tragedy of the commons by exploiting shared environmental resources without regard for the negative impact on the environment, leading to pollution and degradation that affect everyone.

Question 7

Brain Wing Inc.has won the bid to build airplanes for a host country government.However,the execution of the contract has been delayed due to certain unproductive,bureaucratic procedures in the less developed nation.In order to legally overcome this problem,Brain Wing Inc.could resort to the payment of

Accepted Answer

The payment of speed money, also known as facilitation payments or grease money, is a form of bribery used to speed up bureaucratic processes in less developed countries. While it is illegal in some countries, it is commonly used in others as a way of doing business. Therefore, Brain Wing Inc. may choose to pay speed money to overcome the bureaucratic procedures and move forward with the execution of the contract.

Question 8

In the modern world,corporations can worsen the global tragedy of the commons by

Accepted Answer

By moving production to locations where they can ignore environmental regulations and freely pollute, corporations worsen the global tragedy of the commons, in which individuals or groups overuse a shared resource to the point of depletion or damage. This exacerbates environmental problems on a global scale, such as climate change, ocean acidification, and biodiversity loss.

Question 9

Which of the following occurs when a resource held jointly by all,but owned by no one,is overused by individuals,resulting in its degradation?

Accepted Answer

The tragedy of the commons occurs when a resource held jointly by all but owned by no one is overused by individuals, resulting in its degradation. It happens when individuals pursue their own self-interest without considering the impact on others, leading to depletion or degradation of the shared resource. This concept is often cited in the context of environmental issues such as overfishing or deforestation. Therefore, option C is the correct choice.

Question 10

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

It is important for business leaders to prioritize ethics and ensure that their decisions are not only financially sound, but also serve the greater good and adhere to ethical principles. This can build trust with stakeholders and contribute to the long-term success of the business.

Question 11

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 speak up and report unethical behavior can discourage others from doing the same and can create a toxic work culture. To promote ethical behavior, companies should establish policies that protect whistleblowers from retaliation and create a safe and supportive environment for reporting any concerns.

Question 12

Ten years after he proposed what came to be known as Sullivan's principles,Leon Sullivan concluded that following his principles

Accepted Answer

Leon Sullivan concluded that following his principles was not sufficient to ethically justify the existence of Western businesses in South Africa, indicating that there were still ethical issues with doing business in the country, regardless of following his principles.

Question 13

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

Accepted Answer

This is the role of ethics officers, to handle confidential inquiries and act as an internal ombudsperson for employees.

Question 14

Which of the following best exemplifies the global tragedy of the commons?

Accepted Answer

Dumping chemical wastes directly into an ocean is a classic example of the global tragedy of the commons, where a resource that is held in common by all is exploited by a single user or group of users for their own benefit without regard for the long-term consequences on the environment or other users. This practice harms marine life and ecosystems, and can affect the livelihoods and health of nearby communities that rely on the ocean.

Question 15

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

Accepted Answer

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

Question 16

The result of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions was to

Accepted Answer

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions was created to make bribery of foreign officials a criminal offense. However, the convention does not consider facilitating payments a criminal offense.

Question 17

In order to build large production units and expedite certain routine government actions related to this,Scorpius Inc.made legal payments to the government officials of a host nation.Such payments are typically referred to as

Accepted Answer

The payments made by Scorpius Inc. are referred to as speed money, which is a form of bribe paid to expedite routine government actions such as obtaining permits, licenses, or approvals. Customs duties are taxes paid on imported goods, excise taxes are taxes on specific goods, and preferred dividends are a type of dividend paid to certain shareholders before others. However, in this scenario, the best choice is "speed money."

Question 18

The Sullivan principles attempted to fight against

Accepted Answer

The Sullivan principles were a set of guidelines created to encourage multinational corporations operating in South Africa to do so in a socially responsible way and help fight against apartheid laws. The principles were developed by Rev. Leon Sullivan in 1977 and promoted corporate social responsibility, equal opportunities, fair wages, and human rights.

Question 19

Which of the following is most likely to be considered unethical?

Accepted Answer

Sending waste products to a developing nation with less strict pollution laws is a violation of ethical principles and can harm the environment and public health. It is considered unethical and socially irresponsible behavior. The other options demonstrate positive ethical practices such as fair labor practices, responsible pricing, and compliance with labor laws.

Question 20

Which of the following 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 refers to accepted principles of right or wrong that govern the conduct of an individual, the members of a profession, or the actions of an organization. Strategy refers to a plan of action designed to achieve a particular goal or objective. Goodwill refers to the reputation of a business based on the quality of its products and services. Mission refers to the purpose or reason for the existence of a company or organization. Vision refers to a future aspiration or goal that an organization hopes to achieve.

Quiz 5: Ethics, Corporate Social Responsibility, and Sustainability