Question 1

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

Accepted Answer

A)  lack cultural sensitivity.
B)  demonstrate moral imperialism.
C)  be highly ethical in its business in a host nation irrespective of the ethical standards followed by other corporations in that host nation.
D)  believe that,in a host country,any action is ethically justified if everyone is doing it.
E)  demonstrate a high degree of ethnocentrism.F) A) and B)
G) A) and C)

Question 2

In order to build large production units and expedite certain routine government actions related to this,Scorpius Inc.made legal payments to the government officials of a host nation.Such payments are typically referred to as

Accepted Answer

A)  bribes.
B)  speed money.
C)  customs duties.
D)  excise taxes.
E)  preferred dividends.F) C) and D)
G) A) and D)

Question 3

According to the Utilitarian approach,the action that produces the greatest good for the greatest number of people can result in the unjustified treatment of a minority.

Accepted Answer

A) True 
 B)False

Question 4

The first step in an ethical algorithm is to identify those common resources that are not owned by anyone in particular but are used by everybody.

Accepted Answer

A) True 
 B)False

Question 5

Discuss any two straw men approaches to business ethics.

Accepted Answer

Straw men approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate guidelines for ethical decision making in a multinational enterprise.These approaches can be characterized as the Friedman doctrine,cultural relativism,the righteous moralist,and the naive immoralist. Economist Milton Friedman wrote an article that has become a classic straw man example that business ethics scholars outline only to then tear down.Friedman's basic position is that the only social responsibility of business is to increase profits,so long as the company stays within the rules of law.He 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.His arguments suggest that improving working conditions beyond the level required by the law and necessary to maximize employee productivity will reduce profits and are therefore not appropriate.His belief is that a firm should maximize its profits because that is the way to maximize the returns that accrue to the owners of the firm,its shareholders.If shareholders then wish to use the proceeds to make social investments,that is their right,according to Friedman,but managers of the firm should not make that decision for them. A naive immoralist 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.The objection to naive immoralism is twofold.First,to say that an action is ethically justified if everyone is doing it is not sufficient.Second,a large multinational must recognize that it does have the ability to change the prevailing practice in a country.It can use its power for a positive moral purpose.

Question 6

Which of the following is the last step in ethical decision making?

Accepted Answer

A)  judging the ethics of the proposed decision
B)  establishing moral intent
C)  auditing of decisions
D)  engaging in ethical behavior
E)  identifying the stakeholders a decision would affectF) A) and B)
G) A) and C)

Question 7

Discuss the global tragedy of the commons.

Accepted Answer

No one owns the atmosphere or the oceans...

Question 8

The code of ethics of a company draws heavily upon documents such as the UN Universal Declaration of Human Rights,which itself is grounded in Kantian and rights-based theories of moral philosophy.In the context of this information,this company is most likely to

Accepted Answer

A)  restrict its employees from joining a trade union.
B)  set unrealistic performance goals for its employees.
C)  promote employees on the sole basis of their particular characteristics such as race,sex,nationality,and class.
D)  make its employees work under unfavorable working conditions.
E)  respect the dignity of an individual and the right of employees to freedom of association.F) B) and C)
G) A) and B)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Noblesse oblige is a French term referring to those multinationals that have unethically used their power for private gain.

Accepted Answer

A) True 
 B)False  False

Question 11

"Facilitating payments" are payments to secure contracts that would not otherwise be secured.

Accepted Answer

A) True 
 B)False

Question 12

The CEO of United Synergy Inc.,a company in its embryonic stage,believes that unethical behavior will result in premature decline of the company.In order to ensure that the company starts operating in the most ethical manner,the CEO should

Accepted Answer

A)  set high performance goals for all employees,regardless of market constraints.
B)  shun the concept of noblesse oblige.
C)  outsource the majority of the jobs in his company to a developing nation which has lax business regulations.
D)  base decisions solely on business variables such as cost,delivery,and product quality.
E)  hire employees with strong personal ethics.F) B) and D)
G) All of the above

Question 13

Which of the following 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?

Accepted Answer

A)  strategy
B)  goodwill
C)  ethics
D)  mission
E)  visionF) None of the above
G) B) and D)

Question 14

The straw man approach of righteous moralism is typically associated with managers from

Accepted Answer

A)  developing countries.
B)  totalitarian nations.
C)  BRIC nations.
D)  developed nations.
E)  war-torn countries.F) B) and C)
G) A) and B)

Question 15

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

Accepted Answer

A)  unrealistic performance goals.
B)  cultural differences of countries.
C)  strong personal ethics among employees.
D)  varying ethical standards in different nations.
E)  national differences in factors of production.F) B) and E)
G) A) and E)

Question 16

The Sullivan principles attempted to fight against

Accepted Answer

A)  globalization.
B)  apartheid laws.
C)  legalization of facilitating payments.
D)  democratic structures.
E)  anti-dumping laws.F) A) and E)
G) C) and D)

Question 17

Which of the following 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?

Accepted Answer

A)  Friedman doctrine
B)  Sullivan principles
C)  Utilitarianism
D)  Marxism
E)  Kantian ethicsF) C) and E)
G) B) and E)

Question 18

Who are a firm's stakeholders? What are the two types of stakeholders?

Accepted Answer

A firm's stakeholders are individuals or groups that have an interest,claim,or stake in the company,in what it does,and in how well it performs.They can be divided into internal stakeholders and external stakeholders.Internal stakeholders are individuals or groups who work for or own the business.They include all employees,the board of directors,and shareholders.External stakeholders are all the other individuals and groups that have some direct or indirect claim on the firm.Typically,this group comprises primary stakeholders such as customers,suppliers,governments,and local communities as well as secondary stakeholders such as special interest groups,competitors,trade associations,mass media,and social media.

Question 19

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?

Accepted Answer

A)  naive immoralism
B)  Friedman doctrine
C)  ethnocentrism
D)  utilitarianism
E)  righteous moralismF) None of the above
G) A) and C)

Question 20

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

Accepted Answer

A)  applying low standards of business ethics in its host nations.
B)  exploiting the national differences in factors of production.
C)  opposing ethnocentrism and righteous moralism.
D)  nullifying the reasons for investing in those countries.
E)  adopting cultural relativism as its approach to ethics.F) A) and B)
G) A) and C)

Exam 5: Ethics, Corporate Social Responsibility, and Sustainability

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

Correct Answer
verified

In order to build large production units and expedite certain routine government actions related to this,Scorpius Inc.made legal payments to the government officials of a host nation.Such payments are typically referred to as

Correct Answer
verified

According to the Utilitarian approach,the action that produces the greatest good for the greatest number of people can result in the unjustified treatment of a minority.

Correct Answer
verified

The first step in an ethical algorithm is to identify those common resources that are not owned by anyone in particular but are used by everybody.

Correct Answer
verified

Discuss any two straw men approaches to business ethics.

Which of the following is the last step in ethical decision making?

Correct Answer
verified

Discuss the global tragedy of the commons.

Correct Answer
verified
No one owns the atmosphere or the oceans...
View Answer

The code of ethics of a company draws heavily upon documents such as the UN Universal Declaration of Human Rights,which itself is grounded in Kantian and rights-based theories of moral philosophy.In the context of this information,this company is most likely to

Correct Answer
verified

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

Correct Answer
verified

Noblesse oblige is a French term referring to those multinationals that have unethically used their power for private gain.

Correct Answer
verified
False

"Facilitating payments" are payments to secure contracts that would not otherwise be secured.

Correct Answer
verified

The CEO of United Synergy Inc.,a company in its embryonic stage,believes that unethical behavior will result in premature decline of the company.In order to ensure that the company starts operating in the most ethical manner,the CEO should

Correct Answer
verified

Which of the following 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?

Correct Answer
verified

The straw man approach of righteous moralism is typically associated with managers from

Correct Answer
verified

Correct Answer
verified

The Sullivan principles attempted to fight against

Correct Answer
verified

Which of the following 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?

Correct Answer
verified

Who are a firm's stakeholders? What are the two types of stakeholders?

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?

Correct Answer
verified

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

Correct Answer
verified

Exam 5: Ethics, Corporate Social Responsibility, and Sustainability

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

Correct AnswerverifiedShow Answer

In order to build large production units and expedite certain routine government actions related to this,Scorpius Inc.made legal payments to the government officials of a host nation.Such payments are typically referred to as

Correct AnswerverifiedShow Answer

According to the Utilitarian approach,the action that produces the greatest good for the greatest number of people can result in the unjustified treatment of a minority.

Correct AnswerverifiedShow Answer

The first step in an ethical algorithm is to identify those common resources that are not owned by anyone in particular but are used by everybody.

Correct AnswerverifiedShow Answer

Discuss any two straw men approaches to business ethics.

Which of the following is the last step in ethical decision making?

Correct AnswerverifiedShow Answer

Discuss the global tragedy of the commons.

Correct AnswerverifiedNo one owns the atmosphere or the oceans...View AnswerShow Answer

The code of ethics of a company draws heavily upon documents such as the UN Universal Declaration of Human Rights,which itself is grounded in Kantian and rights-based theories of moral philosophy.In the context of this information,this company is most likely to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Noblesse oblige is a French term referring to those multinationals that have unethically used their power for private gain.

Correct AnswerverifiedFalse

"Facilitating payments" are payments to secure contracts that would not otherwise be secured.

Correct AnswerverifiedShow Answer

The CEO of United Synergy Inc.,a company in its embryonic stage,believes that unethical behavior will result in premature decline of the company.In order to ensure that the company starts operating in the most ethical manner,the CEO should

Correct AnswerverifiedShow Answer

Which of the following 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?

Correct AnswerverifiedShow Answer

The straw man approach of righteous moralism is typically associated with managers from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Sullivan principles attempted to fight against

Correct AnswerverifiedShow Answer

Which of the following 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?

Correct AnswerverifiedShow Answer

Who are a firm's stakeholders? What are the two types of stakeholders?

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Correct Answer
verified
No one owns the atmosphere or the oceans...
View Answer

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False

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Correct Answer
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