International Business Ch. 5

International businesses cannot gain economic advantages by making payments to corrupt government officials

false

Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because of which of the following?

They may be based in a culture that does not place the same value on ethical norms important in the manager's home country

The _____ approaches to ethics hold that the moral worth of actions or practices is determined by their consequences

utilitarian

Identify the incorrect statement about environmental regulations

environmental regulations are similar across developed and developing nations

Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople

true

The veil of ignorance was developed by _____ as part of his approach to justice theories

John Rawls

According to John Rawls's difference principle,

inequalities are justified if they benefit the position of the least advantaged person

Which of the following enables managers to walk away from a decision that is profitable, but unethical?

moral courage

Building an organization culture that places a high value on ethical behavior requires incentive and reward systems

true

It is in the best interest of prospective employees to find out all they can about the

ethical climate in an organization

Which of the following refers to the values and norms that the employees of an organization share?

organization culture

_____ arguments suggest that improving working conditions beyond the level required by the law and necessary employee productivity will reduce profits and are therefore not appropriate

Friedman's

The _____ occurs when a resource that is shared by all, but owned by no one, is overused by individuals, resulting in its degradation

tragedy of the commons

A ______ asserts that if a manager of a multinational see the firms from other nations are not following ethical norms in a host nation, that manager should not either

naive immoralist

According to _______, the social responsibility of business is to increase profits, so long as the company stays within the rules of law

the Friedman doctrine

Facilitating payments are also known as

speed money or grease payments

BP, one of the world's largest oil companies, has made it part of the company policy to undertake "social investments" in the countries where it does business. There was no economic reason for BP to make this social investment, but the company believes it is morally obligated to give something back to the societies that have made their success possible. BP's actions are an example of:

noblesse oblige

Social responsibility refers to the idea that businesspeople should favor decisions that have both good economic and social consequences

true

The Friedman doctrine is the belief that ethics are nothing more than a reflection of culture therefore, a firm should adopt the ethics of the culture in which it is operating

false

Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors in its subsidiary, even though it is against the multinational's home-country ethics. Which of the following approaches to business ethics would justify the actions of the multinational company?

cultural relativism

To foster ethical behavior, many businesses draft a code of ethics, which is an informal statement of the ethical priorities the company follows

false

Grady works at a fast food restaurant. One day he noticed a co-worker giving free food to a friend. He was unsure about what to do> Grady most likely decided to follow the example of

his supervisor

Most moral philosophers see value in utilitarian and Kantian approaches to business ethics

true

According to the ____, even if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should maintain the standards of the company's home country

Righteous moralist

Facilitating payments are

permitted under the amended Foreign Corrupt Practices Act.