Hill Ethics and Sustainability Full Test Bank Chapter 5

Global Business Today, 11e (Hill)

Chapter 5 Ethics, Corporate Social Responsibility, and Sustainability

1) The term ethics 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.

2) Many of the ethical issues in international business are rooted in the fact that political systems, law, economic development, and culture vary significantly from nation to nation.

3) The Sullivan principles stem from the beliefs of Leon Sullivan who felt it was not ethical for General Motors to operate in South Africa unless the company participated in apartheid laws for its African operations.

4) The phenomenon known as the tragedy of the commons occurs when multiple companies attempt to produce and sell the same products.

5) "Facilitating payments" are payments to secure contracts that would not otherwise be secured.

6) After it was amended, the Foreign Corrupt Practices Act allowed for "facilitating payments."

7) The OECD convention on bribery obliges member states and other signatories to make the bribery of foreign public officials a criminal offense.

8) An ethical dilemma occurs when neither of the choices in a situation seem appropriate or right.

9) An individual's personal ethical code generally has little influence on their behavior in business.

10) Unfortunately, it is common in business practices to assume that people from different cultures make ethical decisions using the same process.

11) The social rules that provide guidelines for appropriate behavior in a particular situation are known as values.

12) According to the concept of cultural relativism, a firm, while operating in any host country, should adopt the ethics of the culture that is predominant in its home country.

13) One criticism of the righteous moralist approach to ethics is that adopting home-country standards isn't always appropriate.

14) The utilitarian approaches to ethics are based on the idea that the moral worth of actions is determined by their ultimate consequences.

15) One concern with the utilitarian approach is that the action that produces the greatest good for the greatest number of people may result in the unjustified treatment of a minority.

16) Kantian ethics is concerned with environmental ethical issues such as manufacturing emissions and polluted waters.

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

18) According to John Rawls's veil of ignorance, inequalities are justified if they benefit the position of the least-advantaged person.

19) 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.

20) In order to create a business culture that places a high value on ethical behavior, a system of incentives and rewards must be in place.

21) 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.

22) An external stakeholder includes any individuals and groups that have some type of direct or indirect claim on a company.

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

24) The concept of corporate social responsibility (CSR) refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions.

25) The core idea behind sustainability is for business to NOT exert a negative impact on the ability of future generations to meet their own economic needs.

26) Business ________ refers to accepted principles of right or wrong that govern the conduct of a businessperson, the members of a profession, or the actions of an organization.

A) strategy

B) goodwill

C) ethics

D) mission

E) vision

27) The Sullivan principles resulted from Leon Sullivan's response to

A) globalization.

B) apartheid laws.

C) grease payments.

D) deforestation.

E) anti-dumping laws.

28) The apartheid system was based on a violation of

A) environmental standards.

B) human rights.

C) educational standards.

D) totalitarian beliefs.

E) religious principles.

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

A) was the most ethical way of doing business in South Africa.

B) was not sufficient to ethically justify the existence of Western businesses in South Africa.

C) would be effective only when companies opposed democracy in South Africa.

D) had led international companies to successfully combat the apartheid regime in South Africa.

E) would safeguard the citizens and businesses in South Africa from Western businesses.

30) Due to strict environmental standards in its home nation, Neptune Inc. has shifted its operations to developing nations. The firm has now been able to gain competitive advantage by avoiding costly pollution controls. This strategic move of Neptune Inc. would be considered

A) illegal.

B) ethical.

C) immoral.

D) uneconomical.

E) totalitarian.

31) Which of these companies has adopted unethical practices?

A) Gemini Inc. ceased its operations in some developing nations on account of low employment standards in those countries.

B) ModernMeds Corp. sells its medicines at a lower price in less developed nations.

C) Capricorn Inc., a multinational company operating in developing nations, pays its labor 30 percent more than what the local competitors pay.

D) Centaur Inc. closed down a production plant as the local management there employed child labor.

E) ClearLand Inc. sends its waste products for disposal to a developing nation because the pollution control laws in its home country are stricter than those in the developing nation.

32) BlueLine Boxes moved its entire production operation to a foreign country, where the company was free to dump pollutants into the river located adjacent to the factory. In this scenario, BlueLine Boxes is contributing to

A) environmental growth.

B) corruption.

C) human rights growth.

D) improving its corporate social responsibility.

E) the global tragedy of the commons.

33) The term global commons refers to

A) social norms and values that are common across the globe.

B) a group of nations that share similar ideologies on globalization.

C) natural resources from which everyone benefits but for which no one is specifically responsible.

D) common laws to be obeyed by companies involved in international business.

E) arrangements, like common currencies, between countries to simplify international trading.

34) Over the past few years, three new factories have been built near Pleasantown. A four-acre area of land lies between these three factories and since no one "owns" this land, all three factories are using it as a landfill to dump waste products. The once-beautiful land is now encased in garbage. What phenomenon does this portray?

A) social loafing

B) cultural relativism

C) tragedy of the commons

D) deadweight loss

E) antidumping

35) In the modern world, corporations often hasten the global tragedy of the commons by

A) moving production to locations where they are free to pump pollutants into the environment.

B) imposing stringent environmental standards on developing countries.

C) creating common environmental and employment standards for all nations.

D) adopting costly pollution controls and in turn losing out on economic advantages.

E) adhering to civil laws rather than common laws in case of any environmental violations.

36) Which company is contributing to the global tragedy of the commons?

A) a firm exploiting the weak employment standards in a host nation

B) a firm dumping its chemical wastes directly into an ocean

C) a firm exploiting the weak intellectual property rights in a developing nation

D) a neighboring country opposing the introduction of a free trade area

E) a country denying its citizens basic human rights

37) Speed money, or grease payments, are payments made to

A) secure contracts that would not otherwise be secured.

B) obtain exclusive preferential treatment in a foreign market.

C) influence foreign bureaucrats in the company's favor.

D) ensure a business receives the standard treatment that it ought to receive.

E) secure monopoly rights in less developed countries.

38) 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 the host nation. Such payments are typically referred to as

A) bribes

B) speed money

C) customs duties.

D) excise taxes.

E) preferred dividends.

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

A) make it mandatory for companies to adhere to the pollution control standards of their home country in all the nations in which they do business.

B) make bribery of foreign officials a criminal offense but not consider facilitating payments a criminal offense.

C) make grease payments mandatory in order to obtain exclusive preferential treatment in a host nation.

D) consider payment of speed money to be moral, but illegal.

E) make it obligatory for companies to adopt a zero-tolerance approach toward grease payments.

40) SolarCorp. won the bid to build an energy facility for a host country government. However, the execution of the contract has been delayed due to bureaucratic procedures in the less developed nation. In order to legally overcome this problem, SolarCorp. could resort to the payment of

A) customs duties.

B) excise taxes.

C) expatriation taxes.

D) speed money.

E) repatriation fees.

41) Financial Resources Inc. paid a sum of $50,000 to an official of a foreign government to ensure that the company obtained exclusive preferential treatment. The $50,000 can be classified as

A) customs duties.

B) excise taxes.

C) speed money.

D) a bribe.

E) repatriation fees.

42) Studies have found that facilitating payments ultimately increase the cost of doing business and as a result some companies have

A) embraced a "wait and see" approach.

B) made such payments a part of normal business practice.

C) adopted a zero-tolerance approach.

D) agreed that such payments should only be used in the home country.

E) asked the United Nations to legalize these payments.

43) The practice of "gift giving" between the parties to a business negotiation is considered right and proper in many Asian cultures. However, some Westerners view the practice as a form of bribery, and therefore unethical, particularly if the gifts are substantial. This demonstrates that

A) notions of ethics are universal.

B) Asian countries are still influenced by totalitarianism.

C) what is ethical depends on one's cultural perspective.

D) Asian cultures are more economically advanced.

E) accepted employment practices are universal.

44) Sun-Yip is the manager of an appliance manufacturing facility in a developing country. This facility does not meet the acceptable standards of the manufacturing facility in his home nation. He knows that demanding a better facility will raise the cost of the appliances that are mainly exported to other less-developed countries. However, he also realizes that by not demanding a better facility, the employees who work there are prone to serious health issues. Sun-Yip is facing

A) a role conflict.

B) the tragedy of the commons.

C) factor endowments.

D) an ethical dilemma.

E) the difference principle.

45) Which of these employees is facing an ethical dilemma?

A) Javier has felt unsure about a car he purchased and has been reading only good reviews about the car to console himself.

B) After seeing a whole new collection of phones at a store, Max is regretting the purchase of an outdated phone he made last month.

C) The manager at Almas Inc. has to make a vendor choice between his underqualified cousin and a highly-experienced, trusted supplier.

D) Salena is responsible for deciding whether she should upgrade the manufacturing unit with new machines and reduce costs or retain the impoverished manual labor force.

E) Lars has to decide whether the annual profits of the company should be distributed to the employees as a salary hike or in the form of non-monetary benefits.

46) What situation is most likely to lead to unethical behavior in a business setting?

A) a strong sense of personal ethics exhibited by employees

B) expatriate managers working away from their ordinary social context and supporting culture

C) providing managers with a moral compass or an ethical algorithm

D) large business corporations making social investments in host countries

E) multinational corporations advocating the concept of noblesse oblige

47) In a business setting, managers sometimes do not realize they are behaving unethically, primarily because they

A) fail to take into account the ethical dimension of business decisions.

B) ignore business variables such as cost, delivery, and product quality.

C) have a strong system of personal ethics.

D) abide by the concept of noblesse oblige.

E) believe that social investments made by their companies can always compensate for their unethical actions.

48) One way to reduce the pressure on managers to violate their personal ethics is to

A) make managers work away from their ordinary social context and supporting culture.

B) keep managers psychologically and geographically close to the parent company.

C) pressure managers to meet unrealistic business goals.

D) adopt an organizational culture that emphasizes that all decisions should be purely economic.

E) ask managers to shun the concept of noblesse oblige.

49) Bethany works for FastFashion Inc. which has set the same sales target for all employees in their 550 stores across the globe. The company fails to take into account any environmental constraints which might hamper sales and to avoid being penalized, employees often falsify their sales reports. What is triggering the employees' unethical behavior?

A) unrealistic performance goals

B) cultural differences of countries

C) strong personal ethics among employees

D) varying ethical standards in different nations

E) national differences in factors of production

50) Bryan works as a salesman for Jumbo Corp. Last year his sales target was $3 million and this year in an aggressive bid for growth, the company increased the sales quota for all its salespeople to $5 million, although the market for Jumbo Corp's product has slowed. In order to meet his target, Bryan bribed an official of a potential customer. The roots of his unethical behavior can be traced to

A) unrealistic performance goals.

B) cultural differences of countries.

C) strong personal ethics among employees.

D) varying ethical standards in different nations.

E) national differences in factors of production.

51) The CEO of Gold Chip Software engages in corruption and uses his power in the company to enrich himself and his family members. Consequently, his employees also engage in the same behavior. In this case, the roots of unethical behavior can be traced to

A) unrealistic performance expectations.

B) organizational leadership.

C) noblesse oblige and social responsibility.

D) varying ethical standards in different cultures.

E) geographical distance between employees and the parent company.

52) When the employees at SuperCars learned that management had failed to pay suppliers for parts, the employees began to add more hours to their time cards even though they hadn't worked those extra hours. The employees felt that the company was sending a message that unethical decisions were acceptable. In this situation, the unethical choices of the employees are the result of

A) societal norms.

B) environmental concerns.

C) host-country performance.

D) unrealistic performance goals.

E) leadership choices.

53) Within organizational culture, ________ are abstract ideas about what a group thinks is good, right, and desirable.

A) folkways

B) norms

C) values

D) attitudes

E) mores

54) Straw men approaches to ethics refer to those that are

A) inappropriate guidelines.

B) accepted worldwide.

C) used in democratic but not totalitarian states.

D) based on religious values.

E) used in masculine societies.

55) The ________ is a straw man approach to business ethics.

A) Friedman doctrine

B) Kantian ethics

C) Sullivan principle

D) utilitarian philosophy

E) just distribution theory

56) According to Milton Friedman, the only social responsibility of business is to

A) increase profits.

B) monopolize an industry.

C) demonstrate humanity.

D) improve society.

E) foster creativity.

57) CopperTech Inc. believes that the sole purpose of its existence is to maximize profits for its stockholders. The firm has often been criticized for not engaging in any social investments. However, the firm has been praised for abiding by the laws while earning profits. Which philosophical approach to ethics does this demonstrate?

A) Friedman doctrine

B) Utilitarianism

C) Kantian ethics

D) Sullivan's principles

E) Naive immoralist

58) The phrase "when in Rome, do as the Romans" is associated with

A) cultural relativism.

B) utilitarianism.

C) Kantian ethics.

D) the Sullivan principles.

E) naive immoralists.

59) After TurboAir opened a facility in a foreign country, it learned that child labor was acceptable in that nation and agreed to hire a group of 15-year-old children as full-time employees. Which philosophical approach to ethics is TurboAir using?

A) Cultural relativism

B) Just distribution

C) Kantian ethics

D) Righteous moralist

E) Sullivan principles

60) Green Quantum Inc. has research and production units all across the globe. The company expects its expatriate managers to adopt the ethics propagated by the culture in which they operate their respective units. Even in situations when others consider certain actions as unethical, the company allows its managers to pursue such actions if they are permitted in the host nation. Green Quantum is following

A) the Friedman doctrine.

B) Sullivan's principles.

C) righteous moralism.

D) Kantian ethics.

E) cultural relativism.

61) Rapid Removal Inc. operates in three different countries, and the CEO believes that the best approach to ethics is cultural relativism. How will this ethical approach affect the actions of Rapid Removal Inc.?

A) All business units of Rapid Removal Inc. will adopt a common standard of ethics irrespective of their location.

B) Business decisions made by managers of Rapid Removal Inc. will be solely based on the goal of maximization of societal good.

C) The business units of Rapid Removal Inc. will be empowered to adopt the standards of ethics followed in their respective host nations.

D) Rapid Removal Inc. will advocate the idea that universal notions of morality transcend different cultures.

E) Rapid Removal Inc. will follow its home-country standards of ethics at all its foreign locations.

62) Three Torque Inc., a U.S.-based multinational company, allows its managers to make facilitating payments in host countries to expedite government formalities. However, in countries where such payments are considered as unethical, the company restricts its managers from indulging in such activities. This behavior of the company illustrates the straw man approach of

A) the righteous moralist.

B) cultural relativism.

C) ethnocentrism.

D) just distribution.

E) cultural convergence.

63) In its home country, Barat's Boxes routinely uses grease payments to local officials to expedite overseas shipments. It has decided to open a plant in the United States and has determined that it would not offer any facilitating payments to U.S. officials. Barat's Boxes behavior illustrates the straw man approach of

A) the righteous moralist.

B) cultural relativism.

C) ethnocentrism.

D) just distribution.

E) cultural convergence.

64) A righteous moralist is most likely to claim that

A) a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

B) a firm should adopt the ethics of the culture in which it is operating.

C) people should be treated as ends and never purely as means to the ends of others.

D) human beings have fundamental rights and privileges that transcend national boundaries and cultures.

E) inequalities are justified if they benefit the position of the least-advantaged person.

65) The straw man approach of righteous moralism is typically associated with managers from

A) developing countries.

B) totalitarian nations.

C) BRIC nations.

D) developed nations.

E) war-torn countries.

66) Jonathan is the expatriate manager of his company's facility in Indonesia. He expects the exact same standards of working conditions, wages, and labor management in the Indonesian facility as practiced by the corporate office in the United States. His policy does not always lead to profits because of the vast cultural differences between the two nations. What straw men approach to ethics is Jonathan using?

A) naive immoralism

B) cultural relativism

C) righteous moralism

D) Sullivan principles

E) just distribution

67) Silver Meteorite Inc. is a multinational company whose home country considers grease payments illegal and unethical. The company has a zero-tolerance approach toward grease payments irrespective of any of its host nations' perspectives toward such payments. In this context, Silver Meteorite Inc. is following the approach to ethics known as

A) naive immoralist.

B) righteous moralist.

C) cultural pluralist.

D) cultural relativist.

E) ethnocentric.

68) The biggest criticism of the righteous moralist approach to an ethical situation is that it

A) ignores home-country standards rather than factoring them into a situation.

B) relies on standards set in individual cultures regardless of living conditions.

C) opposes ethnocentric beliefs.

D) goes too far and not every situation can be approached relying on home-country standards.

E) leans too much on cultural relativism.

69) A multinational corporation that adopts the naive immoralist approach to ethics will most likely

A) lack cultural sensitivity.

B) demonstrate moral imperialism.

C) be highly ethical in its business in a host nation irrespective of the ethical standards followed by other corporations in that host nation.

D) believe that, in a host country, any action is ethically justified if everyone is doing it.

E) demonstrate a high degree of ethnocentrism.

70) An American manager of a multinational company who is working in one of the company's production plants located in a foreign country, employs child labor at the manufacturing unit he oversees. When criticized as unethical, the manager argues that such actions are ethically defensible because every company in the country is doing it. What ethical approach is this manager using?

A) utilitarianism

B) righteous moralist

C) naive immoralist

D) Kantian ethics

E) ethnocentrism

71) Johan is the manager of CycleUp and has agreed to build a new manufacturing plant in Argentina. He realizes this decision will cause him to shut down a small plant in Ohio, but he decides that since the new facility will cut his operating costs in half, that is worth more than closing a plant employing ten people. Which philosophical approach to ethics does this demonstrate?

A) Righteous moralist

B) Friedman

C) Utilitarian

D) Cultural relativism

E) Naive immoralist

72) The utilitarian philosophy for business ethics primarily focuses on

A) applying home-country standards of ethics in foreign countries.

B) adopting the ethics of the culture in which a business operates.

C) maximizing business profits by increasing employee productivity.

D) ensuring justified treatment of any minority.

E) weighing the benefits, costs, and risks associated with a course of action.

73) The ________ approach to ethics holds that an action is judged desirable if it leads to the best possible balance of good consequences over bad consequences.

A) ethnocentric

B) utilitarian

C) cultural relativist

D) naive immoralist

E) righteous moralist

74) According to the utilitarian perspective, the best decisions are those that

A) maximize a firm's profit.

B) maximize stockholders' wealth.

C) have greater social costs than benefits.

D) produce the greatest good for the greatest number of people.

E) result in the justified treatment of a minority.

75) Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for their products. The market analysis team is busy comparing the benefits of increased wood production to the costs of deforestation and resulting environmental conditions. The company is using the ________ approach to make this ethical decision.

A) naive immoralism

B) Friedman doctrine

C) ethnocentrism

D) utilitarianism

E) righteous moralism

76) What is a drawback of the utilitarian approach to business ethics?

A) It omits the consideration of justice.

B) It fails to consider the benefits, costs, and risks of a course of action.

C) It advocates moral imperialism and ethnocentrism.

D) It overemphasizes the significance of maximization of stockholder wealth.

E) It recognizes that actions have multiple consequences.

77) According to ________, people should be treated as ends and never purely as means to the ends of others.

A) Kantian ethics

B) Friedman doctrine

C) cultural relativism

D) righteous moralism

E) naive immoralism

78) Some contemporary moral philosophers view Kant's ethical philosophy as incomplete because his system has no place for

A) basic human rights.

B) the moral worth of actions.

C) moral emotions and sentiments.

D) just and fair treatment of a minority.

E) human dignity.

79) Kantian philosophy would view ________ as an ethical violation.

A) employing people to work at sweatshops

B) treating people as ends rather than as means

C) practicing superior standards of employment in the host country

D) empowering people with fundamental rights and privileges

E) treating employees as conscious moral beings

80) While Kyle realized that his company was allowed to conduct a 12-hour workday in the overseas facility he managed, he instead implemented two 8-hour shifts because he felt it was fundamentally the right thing to do. A rights theorist would say that Kyle is using ________ to make this choice.

A) the tragedy of the common

B) Sullivan's principle

C) his moral compass

D) the difference principle

E) ethnocentrism

81) While making a business decision, a manager who believes in rights theories is most likely to focus on

A) respecting fundamental human privileges.

B) achieving collective goals, even if that involves violating fundamental rights.

C) propagating home-country standards of ethics.

D) weighing the associated social benefits, costs, and risks.

E) maximizing stockholders' wealth and profits.

82) The Universal Declaration of Human Rights would agree that

A) there should not be different sets of fundamental rights and privileges for different cultures.

B) it is unethical to employ child labor in sweatshops even if that happens to be common in some countries.

C) it is ethical to treat people as means to the ends of others.

D) citizens of a nation have no duties to their community.

E) people do not have a right to join trade unions for protection of their interests.

83) In stating that all human beings are born free and equal in dignity and rights, and that they are endowed with reason and conscience and should act toward one another in a spirit of brotherhood, Article 1 of the Universal Declaration of Human Rights echoes

A) the Friedman doctrine.

B) naive immoralism.

C) cultural relativism.

D) Kantian ethics.

E) the Sullivan principles.

84) Article 23 of the Universal Declaration of Human Rights implies that it is unethical to employ child labor in sweatshop settings and pay less than subsistence wages, even if that happens to be common practice in some countries. This is in contrast to

A) Kantian ethics.

B) cultural relativism.

C) rights theories.

D) Marxism

E) justice theories.

85) Renata believes that it is the obligation of the state government to provide food and shelter for every citizen. Renata believes that government should act as

A) a straw man.

B) common ground.

C) a social folkway.

D) a moral agent.

E) a naive immoralist.

86) Straight Arrow unloaded two tankers worth of toxic waste at a port in a foreign nation. Two hundred men and boys worked two days in their shorts and sandals to unload the barrels from the tankers for $5 a day. They were not told about the content of the barrels. Some observers felt that it was the obligation of not just the government, but also of Straight Arrow to ensure that no harm was done to the workers. These observers are most likely

A) justice theorists.

B) cultural relativists.

C) naive immoralists.

D) rights theorists.

E) utilitarianists.

87) Justice theories primarily focus on

A) minimizing the amount of political liberty permitted to each person.

B) the attainment of fair and equitable distribution of economic goods and services.

C) the attainment of maximum business profits.

D) protecting multinationals in case they violate fundamental human rights.

E) minimizing the amount of economic freedom permitted to each person.

88) Who asserts that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage?

A) John Rawls

B) Leon Sullivan

C) Garrett Hardin

D) Milton Friedman

E) Carol Gilligan

89) The veil of ignorance, a conceptual device designed by John Rawls, supports

A) impartiality in justice.

B) oppression of people by totalitarian governments.

C) economic suppression of people.

D) apartheid laws.

E) cultural relativism.

90) The ________ supports the idea that everyone is imagined to be oblivious to all of his or her particular characteristics, such as, race, sex, intelligence, nationality, family background, and special talents.

A) tragedy of the commons

B) naive immoralism

C) Universal Declaration of Human Rights

D) veil of ignorance

E) difference principle

91) Under John Rawls's concept of the veil of ignorance, people are imagined to be ignorant of their

A) fundamental duties.

B) fundamental rights.

C) particular characteristics such as race, sex, and nationality.

D) political and economic freedom.

E) social responsibilities.

92) Rawls would agree with the idea that inequalities can be justified if they

A) are based on home-country values.

B) redistribute wealth and property

C) benefit those in the highest position.

D) are used to the advantage of everyone.

E) benefit those in the worst position.

93) The ________, developed by Rawls, indicates that inequalities are justified if they benefit the position of the least-advantaged members of society.

A) difference principle

B) tragedy of the commons

C) theory of private equity

D) unity of command

E) laws of equivalent trade

94) A moral compass is used by managers to

A) help them navigate through difficult ethical dilemmas.

B) maximize stockholders' wealth.

C) legally justify their unethical behavior.

D) identify new markets that have the best growth potential.

E) establish political imperialism in host countries.

95) One way businesses can make sure they are hiring individuals with strong personal ethics is by

A) employing only those people who have a very high intelligence quotient.

B) administering simple tests that indicate analytical skills of a prospective employee.

C) asking for letters of reference from the prospective employees.

D) hiring only those people who are relatives of current employees.

E) spying on prospective employees.

96) The code of ethics of a company draws heavily upon documents such as the UN Universal Declaration of Human Rights, which itself is grounded in Kantian and rights-based theories of moral philosophy. In the context of this information, this company is most likely to

A) restrict its employees from joining a trade union.

B) set unrealistic performance goals for its employees.

C) promote employees on the sole basis of their particular characteristics such as race, sex, nationality, and class

D) make its employees work under unfavorable working conditions.

E) respect the dignity of an individual and the right of employees to freedom of association.

97) In a business setting, which of these practices is most likely to be considered unethical?

A) allowing managers within a company to act in accordance with rights theories

B) promoting employees who engage in ethical behavior and penalizing those who do not

C) hiring independent auditors to ensure that subcontractors used by the company are applying its code of conduct

D) making sure that key business decisions make good economic sense irrespective of their social costs and risks

E) informing prospective employees about the ethical climate in the organization

98) A(n) ________ is considered an external stakeholder of an organization.

A) employee

B) customer

C) trustee

D) director

E) stockholder

99) GreenPlace is a manufacturing company that makes plant fertilizers. It has customers, investors, vendors, and competitors from all across the globe. Which of these GreenPlace business associates would be an internal stakeholder?

A) Ace Globe Inc., a firm that supplies machinery to GreenPlace

B) Selena, a prominent member of the top management of GreenPlace

C) Gamma Creators, a competing firm that produces similar products

D) the government of the home country where GreenPlace operates

E) Jarrett, a major buyer of GreenPlace products

100) The term ________ can be described as standing in the shoes of a stakeholder and asking how a proposed decision might impact that stakeholder

A) corporate espionage

B) ethical dilemma

C) cultural relativism

D) moral imagination

E) moral courage

101) When thinking through an ethical issue, the first step you should take is to

A) identify which stakeholders a decision would affect and in what ways.

B) judge the ethics of the proposed strategic decision.

C) establish a moral intent.

D) audit a decision to check for its consistency with ethical principles.

E) review a decision to check for its consistency with Rawls's veil of ignorance.

102) Kendrik would like to hire just one company to construct the new highway overpass in Phoenix, but he can't imagine asking such a small crew to work many months in the hot conditions of the Arizona summer. Kendrik is relying on ________ to make his decision.

A) his ethnocentrism

B) the tragedy of the commons

C) straw men theories

D) Kantian theory

E) his moral imagination

103) What practice should a company avoid to ensure ethical decision making?

A) auditing past decisions made in the company

B) protecting the fundamental rights of stakeholders

C) taking care of the interests of external stakeholders

D) placing its economic interests before its moral principles

E) adopting the moral principles specified in the company code of ethics

104) The last step in ethical decision making involves

A) judging the ethics of the proposed decision.

B) establishing moral intent.

C) auditing of decisions.

D) engaging in ethical behavior.

E) identifying the stakeholders a decision would affect.

105) The ________ step in ethical decision making helps businesspeople know if their decision process is working and if changes should be made to ensure greater compliance with a code of ethics.

A) judging the ethics of the proposed decision

B) auditing past decisions

C) establishing a moral intent

D) involving moral imagination

E) identifying the concerned stakeholders

106) Jalen is the ethics officer at TurboLife. His responsibilities would include

A) auditing decisions to make sure they are consistent with the company's moral principles.

B) implementing ethnocentric principles.

C) ensuring that the economic interest of stakeholders is given prime importance.

D) training managers to avoid moral imagination and veil of ignorance.

E) informing external stakeholders about the moral consequences of a decision.

107) When an employee says no to a supervisor because what he or she was asked to do was unethical, it exhibits the employee's

A) moral courage.

B) organizational citizenship.

C) ethical dilemma.

D) cross-cultural literacy.

E) cultural relativism.

108) ________ is the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumption in favor of decisions that have both good economic and social consequences.

A) Factor endowment

B) Tragedy of the commons

C) Corporate dynamism

D) Corporate social responsibility

E) Economies of scale

109) In a business setting, the term noblesse oblige refers to

A) benevolent behavior that is considered the responsibility of successful enterprises.

B) obliging a government official with the expectation of a reciprocal favor.

C) wealthy corporations abusing their power for private gain.

D) preferential treatment received by successful companies from governments.

E) tax exemptions that are given only to local companies but not to foreign companies.

110) Describe how violation of the apartheid laws by Western businesses helped improve human rights in South Africa.

111) Discuss how ethical choices and social responsibility issues come up because of differing environmental regulations.

112) Describe the global tragedy of the commons and provide an example of this situation.

113) Describe the relationship between corrupt practices and grease payments.

114) Define an ethical dilemma and describe a hypothetical situation in which a manager faces an ethical dilemma while working in a host country.

115) Discuss any two straw men approaches to business ethics.

116) Compare and contrast cultural relativism and righteous moralism.

117) Discuss the utilitarian approach to business ethics and examine its weaknesses.

118) Describe how the veil of ignorance plays a role in John Rawls's principles of justice.

119) Discuss some steps an international business and its managers can take to make sure ethical issues are considered in business decisions.

120) Discuss the link between the concept of sustainability and the tragedy of the commons.

121) Explain corporate social responsibility and describe how the concept of noblesse oblige factors into this concept.