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Business Ethics
Q:
(p. 201) When creating a code of ethics from scratch, the Institute of Business Ethics suggests that an organization should get endorsement from the chairperson and the board.
Q:
(p. 201) When creating a code of ethics from scratch, the Institute of Business Ethics suggests that an organization should create an original model rather than picking a well-tested model.
Q:
(p. 201) There is no perfect model for a code of ethics.
Q:
(p. 200) A well-written code of ethics can establish a detailed guide to acceptable behavior.
Q:
(p. 200) The audience for the code of ethics of an organization includes only its employees.
Q:
(p. 200) A well-written code of ethics can capture what the organization understands ethical behavior to mean.
Q:
(p. 200) In an organization, the commitment to ethical behavior must be documented in a code of ethics, so that everyone begins from the same starting point.
Q:
(p. 200) Celebrating and rewarding the ethical behavior demonstrated by an organization's employees is the last stage in making ethical behavior sustainable for an organization.
Q:
(p. 200) Supporting the code of ethics with extensive training for every member of the organization is the first stage in making ethical behavior sustainable for an organization.
Q:
(p. 200) Hiring an ethics officer is the first stage in the process of making ethical behavior sustainable.
Q:
(p. 200) In order to make ethical behavior sustainable, an organization requires commitment solely from the top management.
Q:
(p. 200) A company's commitment to ethical behavior impacts only the lower level of management and those departments that deal directly with customers.
Q:
(p. 200) Sustainable ethics in a culture are those that persist within the operational policies of the organization long after the latest public scandal or the latest management buzzword.
Q:
(p. 200) Typical markets represent federal, state, and local officials who simplify and reduce rules and regulations, thus discouraging firms from hiring more people and paying more taxes.
Q:
(p. 200) Impatient stockholders wanting the stock price to rise each and every quarter is representative of most markets.
Q:
(p. 200) Demanding customers who want new and better products and services at lower prices represent a typical market.
Q:
(p. 186) Summarize the 10 key principles of the UN Global Compact that address its four areas of concern: Human Rights, Labor Standards, Environment, and Anticorruption.
Q:
(p. 183-184) Why were Richard DeGeorge's guidelines for multinational corporations doing business abroad criticized?
Q:
(p. 182-183) What are the advantages and disadvantages of globalization?
Q:
(p. 181) How has globalization affected the economic market?
Q:
(p. 180) Differentiate between less-developed and developed nations.
Q:
(p. 188) _____ instrumental contract argues that corporations carry no moral obligation to the countries in which they operate beyond abiding by their laws.
Q:
(p. 188) The _____ calls on enterprises to respect both the letter and spirit of tax laws and to cooperate with tax authorities.
Q:
(p. 187) The OECD Guidelines for Multinational Enterprises represent a more _____ approach to the same issues featured in the UN's nongovernmental Global Compact.
Q:
(p. 186-187) The _____ represents a more governmental approach to the same issues featured in the UN's nongovernmental Global Compact.
Q:
(p. 186) Originally adopted as part of the larger Declaration on International Investments and Multinational Enterprises, the _____ promote principles and standards of behavior for corporations.
Q:
(p. 186) The OECD Guidelines for Multinational Enterprises were originally adopted as part of the _____.
Q:
(p. 186) With over 2,000 companies in more than 80 countries making a voluntary commitment to this corporate citizenship initiative, the _____ is widely recognized as the world's largest initiative of its kind.
Q:
(p. 185) The _____ relies on public accountability, transparency, and the enlightened self-interest of companies, labor, and civil society to initiate and share substantive action in pursuing its principles.
Q:
(p. 185) The UN Global Compact is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four main areas of concern: the _____, anticorruption, the welfare of workers around the world, and global human rights.
Q:
(p. 185) The _____ is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four main areas of concern: the environment, anticorruption, the welfare of workers around the world, and global human rights.
Q:
(p. 185) American companies can be held accountable for their ethical performance in the United States by the _____.
Q:
(p. 183) The European Economic Community is an example of a(n) _____ of countries that work together to leverage their size and geographical advantage to take bigger roles on the global economic stage.
Q:
(p. 182) _____ refers to the gray area in which ethical principles are defined according by the traditions of society, personal opinions, and the circumstances of the present moment.
Q:
(p. 181) Multinational corporations are also known as _____ corporations.
Q:
(p. 181) Because of globalization, _____ have overtaken national markets, leading to a global marketplace.
Q:
(p. 181) _____ refers to the expansion of international trade to a point where national markets are overtaken by regional trade blocs, leading eventually to a global marketplace.
Q:
(p. 181) A(n) _____ corporation is one that sells products and services across multiple national borders.
Q:
(p. 180) _____ refers to ethical choices that offer the greatest good for the greatest number of people.
Q:
(p. 180) A _____ nation is one that lacks the economic, social, and technological infrastructure of a developed nation.
Q:
(p. 180) A _____ nation is one that enjoys a high standard of living as measured by economic, social, and technological criteria.
Q:
(p. 188) Fred, a manager in a multinational corporation, is a supporter of Milton Friedman's instrumental contract. Fred believes that corporations:
A. should actively work to protect the environment of the countries in which they operate.
B. must run welfare programs for the people of the countries in which they operate.
C. need to cease working in less-developed countries.
D. carry no moral obligation to the countries in which they operate.
Q:
(p. 188) Which of the following is true of the concept of global ethics?
A. It is no longer relevant today.
B. It has little backing from the United Nations.
C. It is a highly complex subject.
D. It does not involve less-developed nations.
Q:
(p. 188) The OECD Guidelines believes that less-developed countries should:
A. not be considered a lucrative market.
B. allow their natural resources to be tapped into, freely.
C. benefit from a corporation's advanced technology.
D. avoid trading with developed nations.
Q:
(p. 188) Which of the following is recommended by the OECD?
A. Companies should contribute to the innovative capacities of host countries.
B. Companies should encourage developing nations to adopt the principles of socialism.
C. Companies should uphold the effective recognition of the right to collective bargaining.
D. Companies should not involve themselves in the environmental issues of other countries.
Q:
(p. 187) Which of the following is advocated by both the OECD and the UN Global Compact?
A. Businesses should observe only the customs of their own country at all times.
B. Businesses should not involve themselves in the environmental issues of other countries.
C. Businesses should utilize the natural resources of their host country to its fullest.
D. Businesses should abolish child labor, combat bribery, and fight corruption.
Q:
(p. 187) The OECD recommends:
A. actions that consider the greatest good for developed countries.
B. disclosure on all material matters regarding the corporation.
C. not investing money and effort in developed countries.
D. not investing money and effort in less-developed countries.
Q:
(p. 187) Which of the following is true of the OECD guidelines for multinational enterprises?
A. The guidelines act in opposition to the UN Global Compact.
B. The guidelines apply solely to local and regional trade blocs.
C. The guidelines carry no criminal or civil enforcement.
D. The guidelines are legally binding for American companies.
Q:
(p. 187) In what way does the UN Global Compact differ from the OECD guidelines for multinational enterprises?
A. Unlike the UN Global Compact, the OECD guidelines uses a more governmental approach for the same issues.
B. Unlike the OECD guidelines, the UN Global Compact ignores most areas of environmental concern.
C. Unlike the UN Global Compact, the OECD guidelines believes that businesses should eliminate forced labor.
D. Unlike the OECD guidelines, the UN Global Compact applies only to companies operating in their own country.
Q:
(p. 186) The OECD guidelines for multinational enterprises were initially a part of the _____.
A. Public Company Accounting Oversight Board
B. The International Federation of the Red Cross
C. Dodd-Frank Wall Street Reform and Consumer Protection Act
D. Declaration on International Investments and Multinational Enterprises
Q:
(p. 186) The UN Global Compact states that businesses should:
A. support a precautionary approach to environmental challenges.
B. avoid involvement in the environmental concerns of other nations.
C. avoid selling their products to the people of less-developed nations.
D. support the employment of children in sweatshop production facilities.
Q:
(p. 185) The UN Global Compact focuses on:
A. the welfare of workers around the world.
B. the profitability of small businesses.
C. the inheritance rights of women.
D. the fluctuation of currency standards.
Q:
(p. 186) The UN Global Compact:
A. ignores issues of environmental concern.
B. is the largest initiative of its kind in the world.
C. applies only to organizations from developed nations.
D. is a regulatory instrument that polices organizations.
Q:
(p. 185-186) Which of the following is true of the UN Global Compact?
A. It encourages actions that cause the greatest good for the greatest number of people.
B. It ignores the exploitation of less-developed countries by multinational corporations.
C. It comprises laws that are legally enforced by the United Nations.
D. It serves as a guideline for transparency and public accountability.
Q:
(p. 185) _____ is one of the four key areas of concern upon which the UN Global Compact focuses.
A. Domestic-abuse
B. Foreign Exchange
C. Anticorruption
D. Over-population
Q:
(p. 185) What is the UN Global Compact?
A. It is a standard of business practice that all countries are expected to follow, by law.
B. It is a set of mandatory rules by which multinational corporations are expected to operate.
C. It is a body of rules that deals exclusively with fair pricing and customer satisfaction.
D. It is a voluntary corporate initiative that addresses the main concerns of globalization.
Q:
(p. 185) Which of the following bodies has approached the issue of standardizing global ethical conduct by promoting behavior guidelines that multinational corporations can publicly support?
A. The Organization for Economic Cooperation and Development
B. The Pan American Health Organization
C. The International Federation of the Red Cross
D. The International Peace Bureau
Q:
(p. 185) Which of the following laws holds American companies accountable for their ethical performance in the United States?
A. The Comstock Act
B. The National Emergencies Act
C. The Foreign Corrupt Practices Act
D. The Rehabilitation Act
Q:
(p. 183) Why were the guidelines offered by Richard DeGeorge for organizations doing business in other countries criticized?
A. He overlooked issues related to the quality of goods produced.
B. He did not advocate working with or respecting local customs.
C. He believed that the ends justified the means in all circumstances.
D. He advocated doing the greatest good for the greatest number of people.
Q:
(p. 183) Which of the following is true of the guidelines offered by Richard DeGeorge for organizations doing business in other countries?
A. His guidelines represented an ethical ideal that, at best, provided a conceptual foundation.
B. His guidelines were lauded for covering all the severe types of business transgressions.
C. His guidelines only addressed multinational corporations working in developed countries.
D. His guidelines endorsed the principles of utilitarianism: the ends justify the means.
Q:
(p. 183) Which of the following is true of trading blocs?
A. Regional trading blocs are slowly being replaced by independent national markets.
B. The individual countries that comprise trading blocs have disappeared completely.
C. Trading blocs are created by countries that prefer not to participate in the global market.
D. The customs and norms of individual countries that comprise trading blocs still prevail.
Q:
(p. 183) How can an organization move its ethical commitment to a global scale successfully?
A. By creating an ethical standard that respects the local customs of the other countries.
B. By increasing the scale of their policies and procedures to a corresponding degree.
C. By translating all their existing policies into the local language.
D. By working in the absence of standard ethical policies wherever possible.
Q:
(p. 182-183) Which of the following, as a result globalization, is true of less-developed countries and multinational corporations?
A. Multinational corporations tend not to see less-developed countries as potential consumer markets.
B. The labor power of less-developed countries does not attract the attention of multinational corporations.
C. The long-term economic viability of less-developed countries is threatened by the activities of multinational corporations.
D. Multinational corporations prefer not to invest their time and effort in less-developed countries.
Q:
(p. 183) Because of globalization, multinational corporations:
A. often take advantage of the unrestrictive legal environments of less-developed countries.
B. have fewer ways in which they can reduce their production costs or increase their sales.
C. have limited access to the labor force or natural resources of less-developed countries.
D. often exploit the natural resources of developed countries, facing no consequences.
Q:
(p. 182-183) Which of the following is a disadvantage of globalization?
A. The prices of consumer goods have increased as a result of higher production costs.
B. Multinational corporations no longer see developing countries as potential consumers.
C. Foreign investors focus on developed countries and not the less-developed countries.
D. Multinational corporations are depleting the natural resources of less-developed countries.
Q:
(p. 182) Which of the following is an advantage of globalization?
A. National markets have successfully taken over regional trade blocs on a global scale.
B. Children are no longer offered employment in "sweatshop" production facilities.
C. Multinational corporations are unable to exploit the people of less-developed countries.
D. Developing nations can leverage their natural resources to attract foreign investment.
Q:
(p. 182) In which of the following situations would a multinational company, when doing business in a less-developed nation, be faced with ethical relativism when making a decision?
A. When local customs come into conflict with the company's policies.
B. When the less-developed nation is characterized by social stability.
C. When local customs accommodate the company's code of ethics.
D. When the less-developed nation possesses a strong bureaucracy.
Q:
(p. 182) Which of the following concepts is illustrated by a company which, when doing business abroad, takes advantage of the local customs to justify an action that is illegal in its home country?
A. Ethical relativism
B. Experientialism
C. Moral universalism
D. Existentialism
Q:
(p. 182) _____ is a philosophical position in which ethical principles are defined by the traditions of society, personal opinions, and the circumstances of the present moment.
A. Deontological ethics
B. Ethical consequentialism
C. Ethical relativism
D. Experientialism
Q:
(p. 181) Multinational companies are also known as _____.
A. transnational corporations
B. intranational trade blocs
C. regional trade blocs
D. transcontinental bureaus
Q:
(p. 181) Globalization raises concerns about the:
A. restricted access multinational companies have to less-developed countries.
B. ethical behavior of economically advanced nations toward developing ones.
C. inability of multinational companies to reduce their production costs.
D. spread of socialism by multinational corporations in the Americas and Europe.
Q:
(p. 181) In what way has globalization affected the economy?
A. Transnational markets have given way to national markets.
B. Regional trade blocs have been replaced by domestic markets.
C. National markets are becoming less dependent on each other.
D. National markets are being overtaken by regional trade blocs.
Q:
(p. 181) Which of the following is true of globalization?
A. It makes countries and markets more independent of each other.
B. It leads to the replacement of regional trade blocs with national markets.
C. It impacts the commercial, economic, social, and political environment.
D. It offers multinational companies fewer ways to reduce their expenses.
Q:
(p. 180-181) Which of the following is true of utilitarianism?
A. It believes that the ends do not justify the means under any circumstances.
B. It leads to situations in which there is no accountability for individual actions.
C. It is an ethical philosophy that judges morality based on individual character.
D. It is an ethical philosophy that judges morality based on individual motives.
Q:
(p. 180) Utilitarianism refers to:
A. ethical choices that consider the greatest good for the greatest number of people.
B. general standards of business practice to which all countries are obliged to adhere.
C. general standards of business practice to which all corporations are obliged to adhere.
D. ethical choices that distinguish "right" from "wrong" on the basis of policies set by law.
Q:
(p. 180) Less-developed nations are countries which:
A. have poor economic, social, and technological infrastructure.
B. are characterized by social stability and high standards of living.
C. are immune to the effects of economic phenomenon like inflation.
D. have strong bureaucracies and are characterized by political stability.
Q:
(p. 188) The OECD Guidelines for Multinational Enterprises do not address the issue of taxation.
Q:
(p. 188) The OECD Guidelines for Multinational Enterprises were criticized because they failed to address consumer interests.
Q:
(p. 187) The principles and standards of organizational behavior set down by the UN Global Compact cover more issues than the OECD Guidelines for Multinational Enterprises.
Q:
(p. 187) The guidelines set down by the Organization for Economic Cooperation and Development are legally binding.