Strat – Ch. 9 – Flashcards

According to the school of ethical universalism, a) concepts of right and wrong are universal within countries but not across countries and cultures b) concepts of right and wrong are absolute and thus should be used to judge the "ethical correctness" of the behavior of all people in all countries and in all circumstances c) only those ethical principles that are widely recognized and agreed-upon worldwide can be used to put valid ethical boundaries on how business activities are conducted d) the best basis for judging the "ethical correctness" of the actions and behavior of business people is the code of ethical and moral behavior adopted and advocated by the united nations e) the most fundamental concepts of what is right and what is wrong are universal and transcend most all cultures, societies, and religions--hence, common ethical standards can be used to judge the conduct of all members of society, including all personnel at all companies worldwide

Multinational companies a) that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition are acting in accord with the principles of the school of ethical universalism and are rejecting the principles underlying the school of ethical relativism b) that wish to be respectful of local customs and ethical standards should give company personnel sufficient wiggle room to pay bribes and kickbacks int hose countries where the payment of bribes and kickbacks are customary and to forbid the payment of bribes and kickbacks in these countries where they are considered unethical or illegal c) face a real dilemma in basing their standards of what is ethical and what is unethical on the principle of ethical universalism because it is much better and easier for them to operate with multiple sets of ethical standards (sometimes one for each country, so as to be respectful and accommodative of local customs and traditions). d) are well advised to rely upon the principle of ethical relativism for guidance in how to conduct their activities because it is far more sensible for a multinational company to take the position that it is ethically okay for company personnel to pay bribes and kickbacks in countries where such payments are customary but that it is not ethically permissible for company personnel to pay bribes and kickbacks in those countries where bribes and kickbacks are considered unethical or illegal e) operating in countries where ethical standards vary considerably from country to country quickly find themselves on a slippery slope with no locally credible guiding moral authority if they insist on having a single company wide code of ethical standards that applies to all company personnel in all countries where the company operates

Business ethics concerns a) the special set of ethical standards and behaviors that are applicable only to business situations and the conduct of business-related matters b) adhering to and enforcing the consensus ethical principles that companies worldwide have agreed are appropriate for all businesses and their personnel to observe c) a set of behavioral standards, usually established by governmental authorities or organizations such as the UN, that businesses worldwide are expected to observe in conducting their activities d) the application of general ethical principles and standards to the actions and decisions of businesses and the conduct of their personnel e) the socially responsible actions and behaviors that a company and its personnel are expected to display in conducting business activities

Which one of the following is NOT among the good business reasons why companies should be public-spirited and devote time and resources to social responsibility initiatives, environmental sustainability, and being good corporate citizens? a) socially responsible actions yield internal benefits (particularly as concerns employee recruiting, workforce retention, and training costs) and can improve operational efficiency b) a strong, visible social responsibility strategy gives a company an edge in differentiating itself from rivals and in appealing to those consumers who prefer to do business with companies that are good corporate citizens c) well-conceived social responsibility strategies work to the advantage of shareholders d) acting in a socially responsible manner reduces the risk of reputation-damaging incidents e) a business is obligated to act as a responsible citizen and do its fair share to promote the general welfare; otherwise it is in violation of its implied contract with society and subject to both heavy fines and an excess profits tax

The concept of social responsibility and good corporate citizenship concerns a) the responsibility that all businesses have to help solve the world's problems, contribute to the greater well-being of society as a whole, and put good community citizenship ahead of good profitability b) top management's duty to charge fair prices, pay fair wages, treat all employees with dignity and respect, and operate in a manner that benefits society at large c) a company's duty to operate in an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large d) top management's duty to allocate a portion of the company's profits to worthy social causes and charitable organizations e) the ethical duty that all businesses have to treat employees, customers, and suppliers fairly

The three categories of managers that stand out with regard to ethical and moral principles in business affairs are: a) ethically concerned managers, ethically indifferent managers, and ethically unconcerned managers b) managers who are full-time believers in high ethical standards, managers who are part-time believers (part-timers behave ethically when it benefits them personally but are quite willing to act unethically when it is beneficial for them to do so), and managers who are nonbelievers and have no ethical standards c) moral managers, amoral managers, and immoral managers d) ethically-principled managers, ethically-unprincipled managers, and ethically-neutral managers e) highly-principled managers, managers with no principles and no ethical conscience, and managers with no strong convictions one way or the other when it comes to observing or not observing so-called ethical standards

Which one of the following is not a particularly sound or valid reason why deliberate pursuit of unethical strategies and tolerance of unethical conduct is a risky business practice? a) company managers have good reason to operate within ethical bounds, if only to avoid the risk of embarrassment, scandal, disciplinary action, fines, and possible jail time should their unethical actions be discovered, become highly-publicized, incur public outrage, and/or damage the well-being of customers, suppliers, employees, or others b) a company's unethical behavior can do considerable damage to shareholders in the form of lost revenues, higher costs, lower profits, lowered stock prices, and a diminished business reputation c) an unethical strategy and/or unethical conduct on the part of company personnel can badly damage a company's reputation d) companies whose reputations have been severely tarnished by unethical conduct often have difficulty in recruiting and retaining talented employees, and they can also lose the business of customers who were turned off when they learned of the company's unethical actions e) companies that engage in shady behavior usually suffer big drops in profitability and are unlikely to earn attractive profits for as many as 5 to 10 years after their unethical conduct is exposed in the media

According to the corruption perceptions index scores a) perceived corruption is viewed as more extensive and widespread in Spain, Taiwan, and Chile than in brazil, mexico, and russia b) perceived corruption in norway, denmark, and sweden is substntially higher than in canada, japan, mexico, and saudi arabia c) perceived corruptions i lower in denmark, singapore, australia, and canada than in the US, france, south korea, and italy d) corruption in business occurs in fewer than 20% of business transactions across the world and the percentage is falling e) perceived corruption is higher in new zealand and singapore than in germany, japan, and the US

According to the school of ethical relativism a) what constitutes ethical business behavior and what constitutes unethical business behavior is governed by what is legal in a given country b) concepts of right and wrong as applied to business situations are always a function of each company's own set of values, beliefs, and ethical convictions (as stated in the company's code of ethical conduct) c) differing religious beliefs, historic traditions and customs, core values and beliefs, and behavioral norms across countries and cultures give rise to multiple sets of standards concerning what is ethically right or wrong d) a "one-size-fits-all" template should always be used to determine the ethical appropriateness of business actions and the behaviors of company personnel e) what constitutes ethical business behavior and what constitutes unethical business behavior is always relative to some ideal standard that is subject to different interpretation in different companies

According to integrative social contracts theory, a) the slippery slope of ethical universalism should be rejected and the principles of ethical relativism should be embraced b) the universal ethical principles or norms based on the collective views of multiple cultures and societies combine to form a "social contract" that all individuals, groups, organizations, and businesses in all situations have a duty to observe; however, within the boundaries of this social contract, local cultures or groups have the "moral space" to specify what other actions may or may not be ethically permissible. c) the code of expected ethical conduct developed by the UN represents a pragmatic and effective compromise of the best parts of the ethical standards advocated by the school of ethical universalism and the ethical standards advocated by the school of ethical relativsim d) a company's first duty and responsibility is to be respectful of and responsive to the ethical standards and norms of the each of the countries in which is operates e) each country's ethical norms and customs form a "social contract" that all individuals, groups, organizations, and businesses in that country, then it is appropriate for any company or group to specify what other actions may or may not be ethically permissible in that particular country

Which one of the following is not among the major drivers of unethical managerial behavior? a) heavy pressures on company managers to meet or beat performance targets b) the apparent pervasiveness of immoral and amoral businesspeople c) a company culture that puts profitability and good business performance ahead of ethical behavior d) poor economic conditions that make it difficult for companies to earn a fair profit unless they engage in unethical behavior e) overzealous pursuit of wealth and other selfish interests

Which one of the following is not an aspect of socially responsible behavior and good corporate citizenship? a) making charitable contributions, supporting worthy organizational causes, participating in community service activities, helping to make a difference in the lives of the disadvantaged, and trying to better the quality of life in society at large b) actions to build a workforce that is diverse with respect to gender, race, national origin, and perhaps other aspects that different people bring to the workplace c) actions to keep the prices the company charges for its products/services low enough to prevent the company's profits from being viewed by the general public as obscenely high or exorbitant d) actions to create a work environment that enhances the quality of life for employees and makes the company a great place to work e) actions to protect or enhance the environment and, in particular, to minimize or eliminate any adverse impact on the environment stemming from the company's own business activities

According to the ethical relativism school of thought, a) if the use of underage labor is legal in a particular country, then it is ethical for a company to use underage labor in conducting its business activities in that country, no matter what the legality of using underage labor happens to be in other countries b) if the use of underage labor is acceptable in a particular culture/society/country, then it is ethical for a company to use underage labor in conducting its business activities in that culture/society/country c) it is up to each business to set its own standards for deciding whether the use of underage labor is ethically acceptable or not d) it is very clear and well-established that the use of underage labor is ethically impermissible, even in those countries and situations where it is the local customer to utilize child labor e) whether the use of underage is ethically acceptable or not hinges upon ethical standards that each industry establishes for its member businesses

When it comes to the practice of some businesses paying bribes and kickbacks to secure government contracts, obtain a license or permit from government agencies, or win/retain the business of customers, it is fair to say that a) it is very difficult (and logically inconsistent) for a multinational company to ethically justify such payments when it does business in countries where such payments are illegal and/or when the company's code of ethics forbids such payments b) it is ethically acceptable for a company to pay them so long as such payments are allowed in the company's written code of ethics c) if the payment of bribes/kickbacks is normal and customary in a particular culture/society/country, then--according to both integrative social contracts theory and the school of ethical universalism--it is ethically acceptable for a company to pay them in conducting its business activities in that culture/society/country d) according to the school of ethical universalism it is up to each businessperson to set his/her own standards for deciding whether the payment of bribes/kickbacks is ethically acceptable or not e) if the payment of bribes/kickbacks i legal in a particular country, then it is ethical for a company to pay them

An immoral manager is one who a) has few scruples, little or no integrity, is driven by single-minded pursuit of what is in his/her own self-interest, and is willing to do most anything he/she believes they can get away with b) is ethically-principled most of the time but who might stoop to unethical behavior if there's low risk of discovery and the action or decision has a sizable positive effect on company profitability c) believes that good business people should watch out for the interest of others and always try to do "the right thing to do" from an ethical perspective d) strongly believes that it is perfectly ethical to do whatever is legal e) is ethically unprincipled but nonetheless usually observes ethical standards for fear of getting caught and fired