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29) Which of the following was designed to allow GM to operate ethically in South Africa as long
as the company did not obey the apartheid laws in its own South African operations?
A) Sullivan principles
B) the righteous moral system
C) noblesse oblige
D) cultural relativism
30) The ________ obliges member states to make the bribery of foreign public officials a criminal
offense and excludes facilitating payments made to expedite routine government action from the
convention.
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
31) Identify the incorrect statement about environmental regulations.
A) Environmental regulations are often lacking in developing nations.
B) Environmental regulations are similar across developed and developing nations.
C) Developed nations have substantial regulations governing the emission of pollutants, the
dumping of toxic chemicals, and so on.
D) Inferior environmental regulations in host nations, as compared to the home nation, can lead to
ethical issues.
32) The ________ occurs when a resource that is shared by all, but owned by no one, is overused
by individuals, resulting in its degradation.
A) Friedman effect
B) noblesse oblige
C) inequity aversion
D) tragedy of the commons
33) An international U.S.-based company sets up a production unit in a developing country with
poor environmental regulations. This contributes to the
A) noblesse oblige situation.
B) inequity aversion.
C) global tragedy of the commons.
D) Friedman effect.
34) Which of the following observations about the Foreign Corrupt Practices Act is true?
A) The act outlawed the paying of bribes to foreign government officials to gain business.
B) There is enough evidence that it put U.S. firms at a competitive disadvantage.
C) The act originally allowed for "facilitating payments."
D) The Nike case was the impetus for the 1977 passage of this act.
35) Facilitating payments are
A) a direct violation of the Foreign Corrupt Practices Act.
B) permitted so long as they are designed only to gain exclusive preferential treatment.
C) used to secure contracts that would otherwise not be secured.
D) permitted under the amended Foreign Corrupt Practices Act.
36) The Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions excludes
A) bribes made to secure contracts that would otherwise not be secured.
B) grease payments to gain exclusive preferential treatment.
C) facilitating payments made to expedite routine government action.
D) payments to government officials for special privileges.
37) 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 is known as
A) moral relativism.
B) noblesse oblige.
C) ethical dilemma.
D) social responsibility.
38) Which of the following, in a business setting, is taken to mean benevolent behavior that is the
responsibility of successful enterprises?
A) Sullivan's principles
B) ethical dilemma
C) tragedy of the commons
D) noblesse oblige
39) BP, one of the world's largest oil companies, has made it part of the company policy to
undertake "social investments" in the countries where it does business. There was no economic
reason for BP to make this social investment, but the company believes it is morally obligated to
give something back to the societies that have made its success possible. BP's actions are an
example of
A) cultural relativism.
B) the Friedman doctrine.
C) noblesse oblige.
D) the tragedy of the commons.
40) ________ are the accepted principles of right or wrong governing the conduct of
businesspeople.
A) Sustainable strategies
B) Business ethics
C) Moral worth of actions
D) Ethical strategies
41) In the international business setting, one of the most common ethical issues involves
A) hiring practices.
B) government deregulation.
C) the moral obligation of multinational corporations.
D) facilitating payments.
42) Ethical dilemmas exist because many real-world decisions involve
A) first-, second-, and third-order consequences that are hard to quantify.
B) people from different cultures.
C) employers and employees.
D) people from different multinational firms.
43) Josiah was managing a factory in India, and had a decision to make. The factory used child
labor, which he disapproved of, but he knew the families of these children might starve without
their income. This situation, in which none of the available alternatives seems morally acceptable,
is called
A) an ethical dilemma.
B) noblesse oblige.
C) the tragedy of the commons.
D) the free rider problem.
44) Which of the following is a reason managers working abroad in multinational firms may
behave in a manner that is unethical?
A) psychological and geographical distances of a foreign subsidiary from the home office
B) pressure from an ethical leader
C) confusion between personal ethics and business ethics
D) incorporating ethical issues into strategic and operational decision making
45) Expatriate managers may experience more than the usual degree of pressure to violate their
personal ethics because of which of the following?
A) They are surrounded by their ordinary social context and supporting culture.
B) They are psychologically and geographically closer to the parent company.
C) They may be based in a culture that does not place the same value on ethical norms important in
the manager's home country.
D) They may be surrounded by local employees who have more rigorous ethical standards.
46) Which of the following refers to the values and norms that the employees of an organization
share?
A) vision statement
B) cultural relativism
C) organization culture
D) power orientation
47) Grady works at a fast food restaurant. One day he noticed a co-worker giving free food to a
friend. He was unsure about what to do. Grady most likely decided to follow the example of
A) other employees.
B) his supervisor.
C) his family.
D) government leaders.
48) ________ approaches to business ethics are raised by business ethics scholars primarily to
demonstrate that they offer inappropriate ethical decision making in a multinational enterprise.
A) Cultural relativism
B) The righteous moralist
C) Straw man
D) The naive immoralist
