58.
A multinational company is accused of paying bribes to the government of a
host country to obtain permission to build a production factory. The public
relations manager of the company defends the company’s actions as being
ethically sound; he states that in the host country, paying bribes to
government officials is the accepted norm and is in keeping with the social
practices in the host country. The public relations manager is using which of
the following philosophical doctrines to defend the actions of the company?
A.
The Friedman doctrine
B.
Righteous moralist
C.
Noblesse oblige
D.
Cultural relativism
Cultural relativism is the belief that ethics are nothing more than the
reflection of a culture—all ethics are culturally determined—and that
accordingly, a firm should adopt the ethics of the culture in which it is
operating.
59.
In its extreme viewpoint, _____ suggests that if a culture supports slavery, it
is all right to use slave labor in the country.
A.
the Friedman doctrine
B.
noblesse oblige
C.
righteous moralist
D.
cultural relativism
Cultural relativism does not stand up to a closer look. At its extreme,
cultural relativism suggests that if a culture supports slavery, it is OK to use
slave labor in a country.
60.
The righteous moralist suggests that:
A.
ethics are nothing more than the reflection of culture.
B.
a multinational’s home-country standards of ethics are the appropriate
ones for companies to follow in foreign countries.
C.
the social responsibility of business is to increase profits, so long as the
company stays within the rules of law.
D.
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.
A righteous moralist claims that a multinational’s home-country standards
of ethics are the appropriate ones for companies to follow in foreign
countries. This approach is typically associated with managers from
developed nations.
61.
According to the naive immoralist,:
A.
a multinational’s home-country standards of ethics are the appropriate
ones for companies to follow in foreign countries.
B.
the social responsibility of business is to increase profits, so long as the
company stays within the rules of law.
C.
ethics are nothing more than the reflection of a culture.
D.
if firms in a host nation do not follow ethical norms then the manager of
a multinational should also not follow ethical norms there.
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.
62.
An American manager in Colombia routinely pays off the local drug lord to
guarantee that his plant will not be bombed and that none of his employees
will be kidnapped. The manager argues that such payments are ethically
defensible because everyone is doing it. The manager’s argument
exemplifies which of the following ethical approaches?
A.
Naive immoralist
B.
Kantian ethics
C.
Righteous moralist
D.
Noblesse oblige
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 classic example to illustrate the
approach is known as the drug lord problem.
63.
The utilitarian approach to business ethics suggests that:
A.
people should be treated as ends and never purely as means to the ends
of others.
B.
the moral worth of actions or practices is determined by their
consequences.
C.
people have dignity and need to be treated as such.
D.
human beings have fundamental rights and privileges that transcend
national cultures.
Utilitarian approaches to ethics hold that the moral worth of actions or
practices is determined by their consequences. An action is judged
desirable if it leads to the best possible balance of good consequences over
bad consequences.
64.
According to the _____ approach, the best decisions are those that produce
the greatest good for the greatest number of people.
A.
naive immoralist
B.
Friedman doctrine
C.
Kantian ethics
D.
utilitarian
The best decisions, from a utilitarian perspective, are those that produce
the greatest good for the greatest number of people.
65.
The products of Carmen Stores, an international sports apparel chain, are
manufactured in sweat factories in China. According to the company
president, using sweatshop labor offers a means of livelihood to children
and young adults, as well as supplies good quality apparel to customers at a
lower cost. She asserts that the actions of the company are justified
because it results in the benefit of the maximum number of people. The
company president’s argument is based on which of the following ethical
viewpoints?
A.
The righteous moralist
B.
The Friedman doctrine
C.
Kantian approach to business ethics
D.
Utilitarian approach to business ethics
As a philosophy for business ethics, utilitarianism focuses attention on the
need to weigh carefully all of the social benefits and costs of a business
action and to pursue only those actions where the benefits outweigh the
costs. The best decisions, from a utilitarian perspective, are those that
produce the greatest good for the greatest number of people.
66.
The Kantian approach to ethics suggests that:
A.
human beings have fundamental rights and privileges that transcend
national boundaries.
B.
the moral worth of actions or practices is determined by their
consequences.
C.
people should be treated as ends and never purely as means to the ends
of others.
D.
ethics are nothing more than the reflection of culture.
Kantian ethics hold that people should be treated as ends and never purely
as means to the ends of others.
67.
Identify the correct statement about the rights theories.
A.
Human beings have fundamental rights and privileges that transcend
national boundaries.
B.
The moral worth of actions or practices is determined by their
consequences.
C.
People should be treated as ends never purely as means to the ends of
others.
D.
The only social responsibility of business is to increase profits, so long as
the company stays within the rules of law.
Developed in the twentieth century, rights theories recognize that human
beings have fundamental rights and privileges that transcend national
boundaries and cultures.
68.
Which of the following persons believed that people should be treated as
ends and never purely as means to the ends of others?
A.
John Stuart Mill
B.
Immanuel Kant
C.
Milton Friedman
D.
David Hume
Kantian ethics are based on the philosophy of Immanuel Kant (1724-1804).
Kantian ethics hold that people should be treated as ends and never purely
as means to the ends of others. People are not instruments, like a machine.
69.
The United Nations Universal Declaration of Human Rights, related to
employment, upholds all of the following EXCEPT:
A.
just and favorable work conditions.
B.
equal pay for equal work.
C.
prohibition of trade unions.
D.
protection against unemployment.
Article 23 of the United Nations Universal Declaration of Human Rights
states: Everyone has the right to form and to join trade unions for the
protection of his interests.
70.
Article 1 of the United Nations Universal Declaration of Human Rights
states: All human beings are born free and equal in dignity and rights. This
best echoes:
A.
cultural relativism.
B.
Friedman doctrine.
C.
the righteous moralist approach.
D.
Kantian ethics.
Echoing Kantian ethics, Article 1 of the United Nations Universal
Declaration of Human Rights states: All human beings are born free and
equal in dignity and rights. They are endowed with reason and conscience
and should act towards one another in a spirit of brotherhood.
71.
Which of the following statements is true about the United Nations
Universal Declaration of Human Rights?
A.
It transcends national borders.
B.
It states that human rights are culturally determined.
C.
It states that an action is judged desirable if it leads to the best possible
balance of good consequences over bad consequences.
D.
It states that the only social responsibility of business is to increase
profits, so long as the company stays within the rules of law.
The notion that there are fundamental rights that transcend national
borders and cultures was the underlying motivation for the United Nations
Universal Declaration of Human Rights, which has been ratified by almost
every country on the planet and lays down basic principles that should
always be adhered to irrespective of the culture in which one is doing
business.
72.
Justice theories of business ethics focus on:
A.
the moral worth of actions or practices.
B.
minimum levels of morally acceptable behavior.
C.
fundamental rights and privileges that transcend national boundaries.
D.
the attainment of an equitable distribution of goods and services.
A just distribution is one that is considered fair and equitable. Rawls argues
that all economic goods and services should be distributed equally except
when an unequal distribution would work to everyone’s advantage.
73.
According to John Rawls:
A.
each person should be permitted the maximum amount of basic liberty
compatible with a similar liberty for others.
B.
freedom of speech and assembly is the single most important component
in a justice system.
C.
equal basic liberty is impossible in a pure market economy.
D.
ethics is culturally determined.
According to Rawls, valid principles of justice are those with which all
persons would agree if they could freely and impartially consider the
situation. One such principle is that each person be permitted the maximum
amount of basic liberty compatible with a similar liberty for others.
74.
Rawls’ philosophy that inequalities are justified if they benefit the position
of the least-advantaged person is known as the:
A.
inequality principle.
B.
equity principle.
C.
difference principle.
D.
ignorance veil principle.
John Rawls formulated what he called the difference principle, which is that
inequalities are justified if they benefit the position of the least-advantaged
person.
75.
According to John Rawl’s difference principle,:
A.
certain people or institutions are obligated to provide benefits or services
that secure the rights of others.
B.
fundamental human rights should transcend national borders and
cultures.
C.
the best decisions are those that produce the greatest good for the
greatest number of people.
D.
inequalities are justified if they benefit the position of the least-
advantaged person.
John Rawls formulated what he called the difference principle, which is that
inequalities are justified if they benefit the position of the least-advantaged
person.
76.
External stakeholders:
A.
are individuals or groups who own the business.
B.
include all employees, the board of directors, and stockholders.
C.
typically comprise customers, suppliers, lenders, etc.
D.
are individuals or groups who work for the business.
External stakeholders are all other individuals and groups that have some
claim on the firm. Typically, this group comprises customers, suppliers,
lenders, governments, unions, local communities, and the general public.
77.
Which of the following is NOT an example of internal stakeholders?
A.
Employees
B.
Customers
C.
Stockholders
D.
The board of directors
Internal stakeholders include all employees, the board of directors, and
stockholders. External stakeholders are all other individuals and groups that
have some claim on the firm. Typically, this group comprises customers,
suppliers, lenders, governments, unions, local communities, and the general
public.