78.
_____ means standing in the shoes of a stakeholder and asking how a
proposed decision might impact that stakeholder.
A.
Veil of ignorance
B.
Difference principle
C.
Moral imagination
D.
Noblesse oblige
Stakeholder analysis involves a certain amount of what has been called
moral imagination. This means standing in the shoes of a stakeholder and
asking how a proposed decision might impact that stakeholder.
79.
Establishing _____ involves a business to resolve to place moral concerns
ahead of other concerns in cases where either the fundamental rights of
stakeholders or key moral principles have been violated.
A.
a veil of ignorance
B.
a difference principle
C.
moral imagination
D.
moral intent
Moral intent implies that a business must resolve to place moral concerns
ahead of other concerns in cases where either the fundamental rights of
stakeholders or key moral principles have been violated.
80.
Which of the following enables managers to walk away from a decision that
is profitable, but unethical?
A.
Noblesse oblige
B.
Moral courage
C.
The difference principle
D.
The Friedman doctrine
It is important to recognize that employees in an international business may
need significant moral courage. Moral courage enables managers to walk
away from a decision that is profitable but unethical.
Essay Questions
81.
What are business ethics? What is the relationship between business ethics
and an ethical strategy?
Business ethics are the accepted principles of right or wrong governing the
conduct of businesspeople. An ethical strategy is a strategy, or course of
action, that does not violate these accepted principles.
82.
What is considered normal practice in one country may be considered
unethical in others. Discuss.
Many of the ethical issues and dilemmas in international business are
rooted in the fact that political systems, law, economic development, and
culture vary significantly from nation to nation. Therefore, what might be
considered a normal business practice in one country may constitute
unethical behavior in another country. Managers in a multinational company
need to be sensitive to these differences and choose the ethical action in
those circumstances where variation across societies creates the potential
for ethical problems. In the international business setting, the most
common ethical issues involve employment practices, human rights,
environmental regulations, corruption, and the moral obligation of
multinational corporations.
83.
Discuss how companies such as Exxon, Kodak, and IBM helped improve
human rights in South Africa.
During the 1980s, many American companies doing business in South Africa
realized that following the Sullivan principles of not obeying apartheid laws
and trying to promote their abolition was not a sufficiently ethical strategy.
Consequently, many companies divested their holdings in the nation. At the
same time, the U.S. government and other nations imposed economic
sanctions on the country. Together, these actions helped bring about
democratic elections in the nation in 1994, and an end to white minority
rule.
84.
Should a multinational feel free to pollute in a developing nation?
This question is designed to stimulate classroom discussion or the personal
opinion of the student. Issues that might emerge include whether there is
any danger that amoral management might move production to a developing
nation precisely because costly pollution controls are not required, the
notion that the environment is public good that no one owns, but that
anyone can despoil, human-induced global warming, and legality of various
actions.
85.
What is the Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions?
In 1997, the OECD adopted the Convention on Combating Bribery of Foreign
Public Officials in International Business Transactions. The convention
obliges member states to make the bribery of foreign public officials a
criminal offense. The convention excludes facilitating payments made to
86.
In your opinion, are bribes ever acceptable? Why or why not?
This question is designed to allow the students to explore the idea of
bribery as possibly resulting in a positive rather than a negative outcome.
Some economists have suggested that corruption might in fact improve
efficiency and help growth. Others however, argue that corruption simply
reduces the returns on business investment and leads to low economic
growth.
87.
Discuss the notion of social responsibility. What does it mean for
corporations?
The concept of social responsibility refers to 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. In a
business setting, social responsibility means that benevolent behavior is the
responsibility of successful enterprises.
88.
What are ethical dilemmas? Why do they exist?
Ethical dilemmas are situations in which none of the available alternatives
seems ethically acceptable. Ethical dilemmas exist because many real-
world decisions are complex, difficult to frame, and involve first-, second-,
and third-order consequences that are hard to quantify. To deal with these
situations, managers need a moral compass to guide them through the
dilemma to find an acceptable solution.
89.
Why do managers behave in a manner that is unethical?
The causes that contribute to unethical behavior in businesses are very
complex. However, a few generalizations can be made. Unethical behavior
is rooted in poor personal ethics, societal culture, the psychological and
geographical distances of a foreign subsidiary from the home office, a
failure to incorporate ethical issues into strategic and operational decision
making, a dysfunctional culture, and failure of leaders to act in an ethical
manner.
90.
Why are expatriate managers at a greater risk of violating their personal
code of ethics?
Expatriate managers may experience more than the usual degree of
pressure to violate their personal ethics. They are away from their ordinary
social context and supporting culture, and they are psychologically and
geographically distant from the parent company. They may be based in a
culture that does not place the same value on ethical norms important in
the manager’s home country, and they may be surrounded by local
employees who have less rigorous ethical standards. The parent company
may pressure expatriate managers to meet unrealistic goals that can only
be fulfilled by acting unethically. For example, to meet centrally mandated
performance goals, expatriate managers might give bribes to win contracts.
Local managers might encourage the expatriate to adopt such behavior.
Due to its geographical distance, the parent company may be unable to see
how expatriate managers are meeting goals, or may choose not to see how
they are doing so, allowing such behavior to flourish and persist.