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c5 Key
1. The term ethics refers to accepted principles of right or wrong that govern the conduct of a person, the
members of a profession, or the actions of an organization.
2. Many of the ethical issues in international business are rooted in the fact that political systems, law, economic
development, and culture vary significantly from nation to nation.
3. Leon Sullivan argued that it was ethically justified for Western businesses to operate in South Africa so long
as the companies obeyed the apartheid laws.
4. The Foreign Corrupt Practices Act outlawed the paying of bribes to foreign government officials to gain
business.
5. "Facilitating payments" are payments to secure contracts that would not otherwise be secured.
6. The Foreign Corrupt Practices Act does not allow for "facilitating payments."
7. The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
obliges member-states and other signatories to make the bribery of foreign public officials a criminal offense.
8. The concept of corporate social responsibility (CSR) refers to the idea that businesspeople should consider
the social consequences of economic actions when making business decisions.
9. The power of a multinational corporation is constrained not only by laws and regulations, but also by the
discipline of the market and the competitive process.
10. Noblesse oblige is a French term referring to those multinationals that have unethically used their power for
private gain.
11. Ethical dilemmas are situations in which only one of the available alternatives seems ethically acceptable.
12. Societal business ethics are not divorced from personal ethics.
13. An organizational culture that requires all decisions to be purely economic allows unethical behavior to
flourish and persist.
14. Enterprises headquartered in a country which scores high on masculinity and power distance measures are
more likely to behave ethically than enterprises headquartered in a culture where individualism and uncertainty
avoidance are strong.
15. According to Friedman's doctrine, the only social responsibility of business is to increase profits, so long as
the company stays within the rules of law.
16. According to Milton Friedman, businesses should undertake social expenditures beyond those mandated by
the law and required for the efficient running of a business.
17. According to the concept of cultural relativism, a firm, while operating in any host country, should adopt the
ethics of the culture that is predominant in its home country.
18. A righteous moralist claims that while operating in a foreign country, a multinational company should
follow the ethical standards of the host country.
19. The righteous moralist's approach to ethics is typically associated with managers from developed nations.
20. Kantian ethics 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.
21. The action that produces the greatest good for the greatest number of people can result in the unjustified
treatment of a minority.
22. Multinational corporations do not qualify to act as moral agents within the framework of rights theories.
23. John Rawls argues that all economic goods and services should be distributed equally except when an
unequal distribution would work to everyone's advantage.
24. According to John Rawls's difference principle, wide variations in income and wealth can be considered just
if the market-based system that produces this unequal distribution also benefits the least-advantaged members
of society.
25. John Rawls's veil of ignorance is a conceptual tool that contributes to the moral compass that managers can
use to help them navigate through difficult ethical dilemmas.
26. Business leaders should use every relevant opportunity to stress the importance of business ethics and make
sure that key business decisions not only make good economic sense but also are ethical.
27. The internal stakeholders of a company do not have an exchange relationship with the company.
28. The first step in an ethical algorithm is to identify those common resources that are not owned by anyone in
particular but are used by everybody.
29. To strengthen the moral courage of employees, companies should not retaliate against those employees who
complain about unethical actions.
30. Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from
employees.
31. Which of the following refers to accepted principles of right or wrong that govern the conduct of a person,
the members of a profession, or the actions of an organization.
32. The Sullivan principles attempted to fight against:
33. Which of the following statements is true about the Sullivan principles?
34. Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan concluded that
following his principles:
35. Due to certain strict environmental and employment standards in its home nation, Taurus Inc. has shifted its
operations to developing nations. Hence, the firm has now been able to gain competitive advantage by avoiding
costly pollution controls. This strategic move of Taurus Inc. will be considered:
36. Which of the following is most likely to be considered unethical?
37. The term global commons refers to:
38. Which of the following occurs when a resource held jointly by all, but owned by no one, is overused by
individuals, resulting in its degradation?
39. In the modern world, corporations can worsen the global tragedy of the commons by:
40. Which of the following best exemplifies the global tragedy of the commons?
41. The Foreign Corrupt Practices Act was subsequently amended to allow for speed money or grease
payments, which are payments made to:
42. In order to build large production units and expedite certain routine government actions related to this,
Scorpius Inc. made legal payments to the government officials of a host nation. Such payments are typically
referred to as:
43. The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions:
44. Brain Wing Inc. has won the bid to build airplanes for a host country government. However, the execution
of the contract has been delayed due to certain unproductive, bureaucratic procedures in the less developed
nation. In order to legally overcome this problem, Brain Wing Inc. could resort to the payment of:
45. Which of the following statements is true of facilitating payments?
46. Which of the following 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?
47. In a business setting, the term noblesse oblige refers to:
48. Which of the following best exemplifies noblesse oblige?
49. The practice of "gift giving" between the parties to a business negotiation is considered right and proper
behavior in many Asian cultures. However, some Westerners view the practice as a form of bribery, and
therefore unethical, particularly if the gifts are substantial. This reflects that:
