Chapter 5: T/F review – Flashcards
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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.
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True
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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.
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True
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The Foreign Corrupt Practices Act outlawed the paying of bribes to foreign government officials to gain business.
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True
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Facilitating payments" are payments to secure contracts that would not otherwise be secured.
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False
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The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions obliges member-states and other signatories to make the bribery of foreign public officials a criminal offense.
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True
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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.
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True
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The power of a multinational corporation is constrained not only by laws and regulations, but also by the discipline of the market and the competitive process
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True
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Ethical dilemmas are situations in which only one of the available alternatives seems ethically acceptable
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True
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Societal business ethics are not divorced from personal ethics.
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True
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An organizational culture that requires all decisions to be purely economic allows unethical behavior to flourish and persist.
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False
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According to Milton Friedman, businesses should undertake social expenditures beyond those mandated by the law and required for the efficient running of a business
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False
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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.
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False
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A righteous moralist claims that while operating in a foreign country, a multinational company should follow the ethical standards of the host country.
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False
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The righteous moralist's approach to ethics is typically associated with managers from developed nations.
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True
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Kantian ethics asserts 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.
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False
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According to John Rawls's 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.
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True
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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.
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True
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The internal stakeholders of a company do not have an exchange relationship with the company
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False
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Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from employees.
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True
