46) What situation is most likely to lead to unethical behavior in a business setting?
A) a strong sense of personal ethics exhibited by employees
B) expatriate managers working away from their ordinary social context and supporting culture
C) providing managers with a moral compass or an ethical algorithm
D) large business corporations making social investments in host countries
E) multinational corporations advocating the concept of noblesse oblige
47) In a business setting, managers sometimes do not realize they are behaving unethically,
primarily because they
A) fail to take into account the ethical dimension of business decisions.
B) ignore business variables such as cost, delivery, and product quality.
C) have a strong system of personal ethics.
D) abide by the concept of noblesse oblige.
E) believe that social investments made by their companies can always compensate for their
unethical actions.
48) One way to reduce the pressure on managers to violate their personal ethics is to
A) make managers work away from their ordinary social context and supporting culture.
B) keep managers psychologically and geographically close to the parent company.
C) pressure managers to meet unrealistic business goals.
D) adopt an organizational culture that emphasizes that all decisions should be purely economic.
E) ask managers to shun the concept of noblesse oblige.
49) Bethany works for FastFashion Inc. which has set the same sales target for all employees in
their 550 stores across the globe. The company fails to take into account any environmental
constraints which might hamper sales and to avoid being penalized, employees often falsify their
sales reports. What is triggering the employees’ unethical behavior?
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
50) Bryan works as a salesman for Jumbo Corp. Last year his sales target was $3 million and this
year in an aggressive bid for growth, the company increased the sales quota for all its salespeople
to $5 million, although the market for Jumbo Corp’s product has slowed. In order to meet his
target, Bryan bribed an official of a potential customer. The roots of his unethical behavior can be
traced to
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.
51) The CEO of Gold Chip Software engages in corruption and uses his power in the company to
enrich himself and his family members. Consequently, his employees also engage in the same
behavior. In this case, the roots of unethical behavior can be traced to
A) unrealistic performance expectations.
B) organizational leadership.
C) noblesse oblige and social responsibility.
D) varying ethical standards in different cultures.
E) geographical distance between employees and the parent company.
52) When the employees at SuperCars learned that management had failed to pay suppliers for
parts, the employees began to add more hours to their time cards even though they hadn’t worked
those extra hours. The employees felt that the company was sending a message that unethical
decisions were acceptable. In this situation, the unethical choices of the employees are the result of
A) societal norms.
B) environmental concerns.
C) host-country performance.
D) unrealistic performance goals.
E) leadership choices.
53) Within organizational culture, ________ are abstract ideas about what a group thinks is good,
right, and desirable.
A) folkways
B) norms
C) values
D) attitudes
E) mores
54) Straw men approaches to ethics refer to those that are
A) inappropriate guidelines.
B) accepted worldwide.
C) used in democratic but not totalitarian states.
D) based on religious values.
E) used in masculine societies.
55) The ________ is a straw man approach to business ethics.
A) Friedman doctrine
B) Kantian ethics
C) Sullivan principle
D) utilitarian philosophy
E) just distribution theory
56) According to Milton Friedman, the only social responsibility of business is to
A) increase profits.
B) monopolize an industry.
C) demonstrate humanity.
D) improve society.
E) foster creativity.
57) CopperTech Inc. believes that the sole purpose of its existence is to maximize profits for its
stockholders. The firm has often been criticized for not engaging in any social investments.
However, the firm has been praised for abiding by the laws while earning profits. Which
philosophical approach to ethics does this demonstrate?
A) Friedman doctrine
B) Utilitarianism
C) Kantian ethics
D) Sullivan’s principles
E) Naive immoralist
58) The phrase “when in Rome, do as the Romans” is associated with
A) cultural relativism.
B) utilitarianism.
C) Kantian ethics.
D) the Sullivan principles.
E) naive immoralists.
59) After TurboAir opened a facility in a foreign country, it learned that child labor was acceptable
in that nation and agreed to hire a group of 15-year-old children as full-time employees. Which
philosophical approach to ethics is TurboAir using?
A) Cultural relativism
B) Just distribution
C) Kantian ethics
D) Righteous moralist
E) Sullivan principles
60) Green Quantum Inc. has research and production units all across the globe. The company
expects its expatriate managers to adopt the ethics propagated by the culture in which they operate
their respective units. Even in situations when others consider certain actions as unethical, the
company allows its managers to pursue such actions if they are permitted in the host nation. Green
Quantum is following
A) the Friedman doctrine.
B) Sullivan’s principles.
C) righteous moralism.
D) Kantian ethics.
E) cultural relativism.
61) Rapid Removal Inc. operates in three different countries, and the CEO believes that the best
approach to ethics is cultural relativism. How will this ethical approach affect the actions of Rapid
Removal Inc.?
A) All business units of Rapid Removal Inc. will adopt a common standard of ethics irrespective
of their location.
B) Business decisions made by managers of Rapid Removal Inc. will be solely based on the goal of
maximization of societal good.
C) The business units of Rapid Removal Inc. will be empowered to adopt the standards of ethics
followed in their respective host nations.
D) Rapid Removal Inc. will advocate the idea that universal notions of morality transcend different
cultures.
E) Rapid Removal Inc. will follow its home-country standards of ethics at all its foreign locations.
62) Three Torque Inc., a U.S.-based multinational company, allows its managers to make
facilitating payments in host countries to expedite government formalities. However, in countries
where such payments are considered as unethical, the company restricts its managers from
indulging in such activities. This behavior of the company illustrates the straw man approach of
A) the righteous moralist.
B) cultural relativism.
C) ethnocentrism.
D) just distribution.
E) cultural convergence.
63) In its home country, Barat’s Boxes routinely uses grease payments to local officials to expedite
overseas shipments. It has decided to open a plant in the United States and has determined that it
would not offer any facilitating payments to U.S. officials. Barat’s Boxes behavior illustrates the
straw man approach of
A) the righteous moralist.
B) cultural relativism.
C) ethnocentrism.
D) just distribution.
E) cultural convergence.
64) A righteous moralist is most likely to claim that
A) a multinational’s home-country standards of ethics are the appropriate ones for companies to
follow in foreign countries.
B) a firm should adopt the ethics of the culture in which it is operating.
C) people should be treated as ends and never purely as means to the ends of others.
D) human beings have fundamental rights and privileges that transcend national boundaries and
cultures.
E) inequalities are justified if they benefit the position of the least-advantaged person.
65) The straw man approach of righteous moralism is typically associated with managers from
A) developing countries.
B) totalitarian nations.
C) BRIC nations.
D) developed nations.
E) war-torn countries.
66) Jonathan is the expatriate manager of his company’s facility in Indonesia. He expects the exact
same standards of working conditions, wages, and labor management in the Indonesian facility as
practiced by the corporate office in the United States. His policy does not always lead to profits
because of the vast cultural differences between the two nations. What straw men approach to
ethics is Jonathan using?
A) naive immoralism
B) cultural relativism
C) righteous moralism
D) Sullivan principles
E) just distribution
67) Silver Meteorite Inc. is a multinational company whose home country considers grease
payments illegal and unethical. The company has a zero-tolerance approach toward grease
payments irrespective of any of its host nations’ perspectives toward such payments. In this
context, Silver Meteorite Inc. is following the approach to ethics known as
A) naive immoralist.
B) righteous moralist.
C) cultural pluralist.
D) cultural relativist.
E) ethnocentric.
68) The biggest criticism of the righteous moralist approach to an ethical situation is that it
A) ignores home-country standards rather than factoring them into a situation.
B) relies on standards set in individual cultures regardless of living conditions.
C) opposes ethnocentric beliefs.
D) goes too far and not every situation can be approached relying on home-country standards.
E) leans too much on cultural relativism.
69) A multinational corporation that adopts the naive immoralist approach to ethics will most
likely
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.
70) An American manager of a multinational company who is working in one of the company’s
production plants located in a foreign country, employs child labor at the manufacturing unit he
oversees. When criticized as unethical, the manager argues that such actions are ethically
defensible because every company in the country is doing it. What ethical approach is this
manager using?
A) utilitarianism
B) righteous moralist
C) naive immoralist
D) Kantian ethics
E) ethnocentrism
71) Johan is the manager of CycleUp and has agreed to build a new manufacturing plant in
Argentina. He realizes this decision will cause him to shut down a small plant in Ohio, but he
decides that since the new facility will cut his operating costs in half, that is worth more than
closing a plant employing ten people. Which philosophical approach to ethics does this
demonstrate?
A) Righteous moralist
B) Friedman
C) Utilitarian
D) Cultural relativism
E) Naive immoralist
72) The utilitarian philosophy for business ethics primarily focuses on
A) applying home-country standards of ethics in foreign countries.
B) adopting the ethics of the culture in which a business operates.
C) maximizing business profits by increasing employee productivity.
D) ensuring justified treatment of any minority.
E) weighing the benefits, costs, and risks associated with a course of action.
73) The ________ approach to ethics holds that an action is judged desirable if it leads to the best
possible balance of good consequences over bad consequences.
A) ethnocentric
B) utilitarian
C) cultural relativist
D) naive immoralist
E) righteous moralist
74) According to the utilitarian perspective, the best decisions are those that
A) maximize a firm’s profit.
B) maximize stockholders’ wealth.
C) have greater social costs than benefits.
D) produce the greatest good for the greatest number of people.
E) result in the justified treatment of a minority.
75) Jaxon Furnishings Company is considering logging opportunities in Alaska to obtain wood for
their products. The market analysis team is busy comparing the benefits of increased wood
production to the costs of deforestation and resulting environmental conditions. The company is
using the ________ approach to make this ethical decision.
A) naive immoralism
B) Friedman doctrine
C) ethnocentrism
D) utilitarianism
E) righteous moralism
76) What is a drawback of the utilitarian approach to business ethics?
A) It omits the consideration of justice.
B) It fails to consider the benefits, costs, and risks of a course of action.
C) It advocates moral imperialism and ethnocentrism.
D) It overemphasizes the significance of maximization of stockholder wealth.
E) It recognizes that actions have multiple consequences.
77) According to ________, people should be treated as ends and never purely as means to the
ends of others.
A) Kantian ethics
B) Friedman doctrine
C) cultural relativism
D) righteous moralism
E) naive immoralism
78) Some contemporary moral philosophers view Kant’s ethical philosophy as incomplete because
his system has no place for
A) basic human rights.
B) the moral worth of actions.
C) moral emotions and sentiments.
D) just and fair treatment of a minority.
E) human dignity.
79) Kantian philosophy would view ________ as an ethical violation.
A) employing people to work at sweatshops
B) treating people as ends rather than as means
C) practicing superior standards of employment in the host country
D) empowering people with fundamental rights and privileges
E) treating employees as conscious moral beings
80) While Kyle realized that his company was allowed to conduct a 12-hour workday in the
overseas facility he managed, he instead implemented two 8-hour shifts because he felt it was
fundamentally the right thing to do. A rights theorist would say that Kyle is using ________ to
make this choice.
A) the tragedy of the common
B) Sullivan’s principle
C) his moral compass
D) the difference principle
E) ethnocentrism
81) While making a business decision, a manager who believes in rights theories is most likely to
focus on
A) respecting fundamental human privileges.
B) achieving collective goals, even if that involves violating fundamental rights.
C) propagating home-country standards of ethics.
D) weighing the associated social benefits, costs, and risks.
E) maximizing stockholders’ wealth and profits.
82) The Universal Declaration of Human Rights would agree that
A) there should not be different sets of fundamental rights and privileges for different cultures.
B) it is unethical to employ child labor in sweatshops even if that happens to be common in some
countries.
C) it is ethical to treat people as means to the ends of others.
D) citizens of a nation have no duties to their community.
E) people do not have a right to join trade unions for protection of their interests.