question

Ethics

answer

accepted principles of right and wrong that govern the -conduct of a person -members of a profession -the actions of an organization

question

Business ethics

answer

accepted principles of right or wrong governing the conduct of business people

question

ethical strategy

answer

a strategy that does not violate these accepted priciples

question

Most common ethical issues in business

answer

-employment practices -human rights -the environment -corruption -moral obligations of multinational companies

question

Firms should do what things in terms of ethics?

answer

-establish minimal acceptable standards that safeguard the basic rights of employees -confirm these standards in airtight contracts -audit foreign subsidiaries and subcontractors regularly to ensure they are meeting the standards -take corrective action as necessary

question

Tragedy of the commons

answer

occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation. For example, a company moves manufacturing to a country with lax environmental laws which aren't broken, but is it ethical?

question

2 types of bribery

answer

Facilitating payments and speed money

question

facilitating payments

answer

often called grease payments, they are for smaller needs

question

speed money

answer

includes more serious bribes to influence a result

question

U.S. foreign corrupt practices act

answer

outlaws the practice of paying bribes to foreign government officials in order to gain business -provides for so called "safe harbor" -American companies can pay facilitating payments -exp. pay to get a container out of a port where port and customs authorities demand a bribe

question

The convention on combating bribery of foreign public officials in international business transactions

answer

adopted by the organization for economic cooperation and development (OECD) -obliges member states to make the bribery of foreign public officials a criminal offense

question

social responsibility

answer

often called corporate social responsibility or CSR refers to the idea that managers should consider the social consequences of economic actions when making business decisions

question

noblesse oblige

answer

honorable and benevolent behavior that is the responsibility of successful companies -give something back to the societies that have made their success possible

question

ethical dilemmas

answer

situations in which non of the available alternatives seem ethically acceptable -the right course of action is not always clear

question

factors contributing to unethical behavior

answer

1. personal ethics 2. decision-making processes 3. organization culture 4. unrealistic performance expectations 5. leadership 6. societal culture

question

personal ethics

answer

the generally accepted principles of right and wrong governing the conduct of individuals -may face pressure to violate their personal ethics because they are away from their ordinary social context -managers fail to question where an action is ethical and instead rely on economic analysis

question

decision-making processes

answer

the values and norms that are shared among employees of an organization -organization culture that does not emphasize business culture encourages unethical behavior

question

organization culture

answer

can legitimize unethical behavior or reinforce the need for ethical behavior

question

unrealistic performance expectations

answer

encourage managers to cut corners or act in an unethical manner -pressure to make the numbers

question

leadership

answer

helps establish the culture of an organization, sets the example that other follow

question

societal culture

answer

firms headquartered in cultures where individualism and uncertainty avoidance are strong and more likely to stress ethical behavior than firms headquartered in cultures where masculinity and power distance rank high.

question

Straw men approaches to ethics

answer

deny the value of business ethics or apply the concept in an unsatisfactory way -inappropriate guidelines for ethical decision making

question

4 straw man approaches to ethics

answer

1. Friedman doctrine 2. cultural relativism 3. righteous moralist 4. naive immoralist

question

Friedman doctrine

answer

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

question

cultural relativism

answer

ethics are culturally determined and firms should adopt the ethics of the cultures in which they operate

question

righteous moralist

answer

a multinational's home country standards of ethics should be followed in foreign countries

question

naive immoralist

answer

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

question

How can managers make ethical decisions?

answer

1. hire and promote people with good personal ethics 2. build an organizational culture that places a high value on ethics 3. Make sure that leaders withing the business articluate the rhetoric of ethical behavior and act in a manner that is consistent with that rhetoric 4. Put decision making processes in place that require people to consider the ethical dimensions of business decisions 5. develop moral courage

question

5 step process to think through ethical problems

answer

1. ID which stakeholders a decision would affect and in what ways 2. determine whether a proposed decision would violate the fundamental rights of any stakeholders 3. establish moral intent 4. engage in ethical behavior 5. audit decisions and review them to make sure that they are consistent with ethical principles (often overlooked)

question

moral intent

answer

place moral concerns ahead of other concerns in cases where either the fundamental rights of stakeholders or key moral principles have been violated

question

ethics officers

answer

ensure all employees are trained in ethics -that ethics are considered in the decision making process -that the company's code of conduct is followed

question

most important trait you must carry in your life

answer

your integrity

Chapter 5 BA:361- Ethics in International Business – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards