question

A multinational corporation that adopts naive immoralist approach to ethics will most likely:

answer

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

question

Which of the following is a straw man approach to business ethics?

answer

Correct The Friedman doctrine

question

In the modern world, corporations can contribute to the global tragedy of the commons by:

answer

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

question

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

answer

Correct moral emotions and sentiments.

question

Which of the following straw men approaches to business ethics is best summarized by the maxim "When in Rome, do as the Romans?"

answer

Correct Cultural relativism

question

The term "_____" refers to the values and norms that are shared among employees of a business corporation.

answer

Correct organization culture

question

The practice of "gift giving" between the parties to a business negotiation is considered right and proper behavior 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 reflects that:

answer

Correct what is ethical depends on one's cultural perspective.

question

Which of the following statements is true about the Friedman doctrine?

answer

Correct According to Friedman, managers of a firm should not make decisions about social investments for its stockholders.

question

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

answer

Correct moral courage.

question

Which of the following is most likely to reduces the pressure on managers to violate their personal ethics?

answer

Correct Keeping managers psychologically and geographically close to the parent company

question

According to Rawls, which of the following principles would be unanimously accepted by people under the veil of ignorance?

answer

Correct Each person should be permitted the maximum amount of basic liberty that is compatible with a similar liberty for others.

question

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

answer

Correct respecting fundamental human privileges.

question

Which of the following terms means standing in the shoes of a stakeholder and asking how a proposed decision might impact that stakeholder?

answer

Correct Moral imagination

question

_____ advocates that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate.

answer

Correct Cultural relativism

question

A righteous moralist is most likely to claim that:

answer

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

question

The _____ outlawed the paying of bribes to foreign government officials to gain business.

answer

Correct Foreign Corrupt Practices Act

question

Brain Wing Inc. has won the bid to build airplanes for one of its host countries 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. should resort to the payment of:

answer

Correct speed money.

question

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

answer

Correct Milton Friedman

question

The best decisions, from a utilitarian perspective, are those that:

answer

Correct produce the greatest good for the greatest number of people.

question

In business ethics, the term "_____" refers to a fair and equitable distribution of economic goods and services.

answer

Correct just distribution

question

What does Article 29 of Universal Declaration of Human Rights convey?

answer

Correct Everyone has duties to the community in which alone the free and full development of a person is possible.

question

_____ occurs when a resource held jointly by all, but owned by no one, is overused by individuals, resulting in its degradation.

answer

Correct The tragedy of the commons

question

_____ is referred to as a course of action that does not violate the accepted principles of right or wrong governing the conduct of businesspeople.

answer

Correct Ethical strategy

question

Which of the following is a drawback of the utilitarian approach to business ethics?

answer

Correct It omits the consideration of justice.

question

Justice theories primarily focus on:

answer

Correct the attainment of fair and equitable distribution of economic goods and services.

question

Under John Rawls' concept of veil of ignorance, people are imagined to be ignorant of their:

answer

Correct particular characteristics such as race, sex, and nationality.

question

Article 23 of 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:

answer

Correct cultural relativism.

question

Which of the following activities is most likely to be considered ethical?

answer

Correct Undertaking "social investments" in host countries

question

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

answer

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

question

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

answer

Correct Orion Inc. sends its products for recycling to a developing nation because the pollution control laws in its home country are much more strict than that in the developing nation.

question

Which of the following statements is true about ethical decision-making?

answer

Correct In ethical decision-making, managers need to ensure that a proposed decision does not violate the fundamental rights of any stakeholders.

question

The concept of _____ refers to 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.

answer

Correct social responsibility

question

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

answer

Correct impartiality in justice.

question

The term _____ 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.

answer

Correct ethics

question

In a business setting, which of the following practices is most likely to be considered as unethical?

answer

Correct Making sure that key business decisions make good economic sense irrespective of their social costs and risks

question

_____ fall into the category of external stakeholders of an organization.

answer

Correct Customers

question

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 towards one another in a spirit of brotherhood, Article 1 of the Universal Declaration of Human Rights echoes:

answer

Correct Kantian ethics.

question

Maverick Stars Inc., a U.S. based multinational company, applies its home-country standards of employment and production in its manufacturing facilities located in some less-developed host nations. In this context, the company is most likely to be criticized for:

answer

Correct nullifying the reasons for investing in those countries.

question

_____ explicitly rejects the idea that businesses should undertake social expenditures beyond those mandated by the law and required for the efficient running of a business.

answer

Correct The Friedman doctrine

question

Which of the following terms, developed Rawls, indicates that inequalities are justified if they benefit the position of the least-advantaged members of society?

answer

Correct Difference principle

question

The first step to establishing a strong sense of business ethics is for a society to emphasize strong:

answer

Correct personal ethics.

question

An American manager of a multinational company who is working in one of the company's production plants located in the country of Cadmia, employs child labor at the manufacturing unit he is in charge of. On being criticized as unethical, the manager argues that such actions are ethically defensible because everyone in Cadmia is doing it. Which of the following straw men approaches to ethics is most likely demonstrated by the manager?

answer

Correct The naive immoralist

question

_____ are the accepted principles of right or wrong governing the conduct of businesspeople.

answer

Correct Business ethics

question

Which of the following is detrimental to an ethical business setting?

answer

Correct Operating in cultures which score high on masculinity and power distance measures

question

Davis is the manager of a pharmaceutical manufacturing facility in a developing country. The manufacturing unit does not meet the acceptable standards of the manufacturing facility in the home nation. He knows that demanding a better manufacturing unit will raise the cost of the drugs mainly exported to other less developed countries, and hence its price. But he also realizes that by not demanding a better unit, the employees are prone to serious health issues. Davis is facing:

answer

Correct an ethical dilemma.

question

The term global commons refers to:

answer

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

question

Which of the following statements is true about Sullivan principles?

answer

Correct They promoted the abolition of apartheid laws.

question

Star Synergy Inc., a chemical dye manufacturing firm headquartered in the U.S., has started its production units in the less developed nations of the world in order to benefit from the low production costs. However, the process of dye extraction results in the release of toxic substances. Hence, the most ethical and economical way for the firm to tackle this problem will be to:

answer

Correct introduce the company's home nation environmental standards in their less developed nation production units.

question

Which of the following best exemplifies noblesse oblige?

answer

Correct Multinational corporations funding schools, universities, and hospitals in under developed countries

question

People who work for or own the company such as employees, board of directors, and investors are commonly referred to as:

answer

Correct internal stakeholders.

question

In a business setting, the term "noblesse oblige" refers to:

answer

Correct a benevolent behavior that is considered the responsibility of successful enterprises.

question

Unipeg Corporation has uniform high sales targets for its employees all across the globe, regardless of the environmental constraints in each market. Employees are penalized for any shortfall. This has caused many employees to falsify the values of their sales. In this context, the roots of unethical behavior can be traced to:

answer

Correct unrealistic performance expectations.

question

Which of the following statements is true about the utilitarian approach to business ethics?

answer

Correct It recognizes that a business should pursue only those actions where the social benefits outweigh the costs.

question

Silver Meteorite Inc. is a multinational company whose home country, Palumbia Republic, considers grease payments as both illegal and unethical. Hence, 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.

answer

Correct righteous moralist

question

Adoption of which of the following ethical approaches is most likely to cause a company to use tools such as cost-benefit analysis and risk assessment to weigh all of the social benefits and costs of a business action?

answer

Correct Utilitarianism

question

_____ are the payments that are made to expedite routine government actions, and hence are also known as speed money or grease payments.

answer

Correct Facilitating payments

question

John Rawls argues that inequality in basic social goods is to be allowed only if:

answer

Correct such inequalities benefit everyone.

question

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

answer

Correct ensure receiving the standard treatment that a business ought to receive.

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