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International Business, 12e (Hill)
1) Ethical strategies are the accepted principles of right or wrong governing the conduct of
businesspeople.
2) What is considered normal business practice in one country may be considered unethical in
other countries.
3) The Sullivan principles mandated that GM could operate in South Africa as long as the
company did not comply with and promoted the abolition of apartheid laws.
2
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written consent of McGraw-Hill Education.
4) Corporations can contribute to the global tragedy of the commons by not pumping pollutants
into the atmosphere or dumping them in oceans or rivers.
5) International businesses cannot gain economic advantages by making payments to corrupt
government officials.
6) The Foreign Corrupt Practices Act was amended to allow "facilitating payments" to secure
contracts that would not otherwise be secured.
7) The ethical obligations of a multinational corporation toward employment conditions, human
rights, environmental pollution, and the use of power are always clear-cut.
8) Ethical dilemmas are situations in which none of the available alternatives seems ethically
acceptable.
9) Societal business ethics are divorced from personal ethics.
10) An individual with a strong sense of personal ethics is less likely to behave in an unethical
manner in a business setting.
11) A firm's organizational culture refers to the values and norms that are shared among employees
of an organization and those outside the organization.
12) The utilitarian approach to ethics is a straw man approach to business ethics that has some
inherent value, but is unsatisfactory in important ways.
13) Milton 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.
14) The Friedman doctrine is the belief that ethics are nothing more than a reflection of culture and
therefore, a firm should adopt the ethics of the culture in which it is operating.
15) Cultural relativism suggests that even if slavery is culturally acceptable in a country, a foreign
firm operating in that country should avoid using slave labor.
16) A manager from the United States is sent to Nigeria to supervise the construction of a road. As
a righteous moralist, he is likely to learn the ethics and values of Nigeria and follow them, even if
they don't concur with his own.
17) Most moral philosophers see value in utilitarian and Kantian approaches to business ethics.
18) Utilitarian philosophy takes into consideration the principle of justice.
19) According to Rawls, inequalities are unjust even if the system that produces inequalities is to
the advantage of everyone.
20) Building an organization culture that places a high value on ethical behavior requires incentive
and reward systems.
21) Social responsibility refers to the idea that businesspeople should favor decisions that have
both good economic and social consequences.
22) To establish moral intent, managers need to stand in the shoes of a stakeholder and ask how a
proposed decision might impact that stakeholder.
23) To foster ethical behavior, many businesses draft a code of ethics, which is an informal
statement of the ethical priorities the company follows.
24) In a business setting, noblesse oblige is taken to mean benevolent behavior that is the
responsibility of successful enterprises.
25) Ethics officers are hired by many businesses to make sure that all employees are trained to be
ethically aware and that ethical considerations enter the business decision-making process at all
levels of the organization.
26) The ________ occurs when a resource held in common by all, but owned by no one, is
overused by individuals, resulting in its degradation.
A) tragedy of the commons
B) moral ignorance
C) noblesse oblige
D) veil of ignorance
27) The ________ outlawed the paying of bribes to foreign government officials to gain business.
A) Convention on Combating Bribery of Foreign Public Officials
B) Foreign Corrupt Practices Act
C) Convention on International Business Transactions
D) Universal Declaration of Human Rights
28) Facilitating payments are also known as
A) grease monkeying.
B) pocket lining.
C) speed money.
D) sliding.
