Test Bank For International Business Charles Hill 12 Edition
International Business, 12e (Hill)
Chapter 5 Ethics, Corporate Social Responsibility, and Sustainability
1) Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople.
Answer: FALSE
Explanation: An ethical strategy is a strategy, or course of action, that does not violate the accepted principles of right or wrong governing the conduct of businesspeople.
Difficulty: 1 Easy
Topic: Ethical Issues in International Business
Learning Objective: 05-01 Understand the ethical issues faced by international businesses.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
2) What is considered normal business practice in one country may be considered unethical in other countries.
Answer: TRUE
Explanation: 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. What is considered normal practice in one nation may be considered unethical in another.
Difficulty: 1 Easy
Topic: Ethical Issues in International Business
Learning Objective: 05-01 Understand the ethical issues faced by international businesses.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
3) The Sullivan principles mandated that GM could operate in South Africa as long as the company did not comply with and promoted the abolition of apartheid laws.
Answer: TRUE
Explanation: GM adopted the Sullivan principles. Sullivan argued that it was ethically justified for GM to operate in South Africa so long as two conditions were fulfilled. First, the company should not obey the apartheid laws in its own South African operations. Second, the company should do everything within its power to promote the abolition of apartheid laws.
Difficulty: 1 Easy
Topic: Ethical Issues in International Business
Learning Objective: 05-01 Understand the ethical issues faced by international businesses.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
4) Corporations can contribute to the global tragedy of the commons by not pumping pollutants into the atmosphere or dumping them in oceans or rivers.
Answer: FALSE
Explanation: In the modern world, corporations can contribute to the global tragedy of the commons by moving production to locations where they are free to pump pollutants into the atmosphere or dump them in oceans or rivers, thereby harming these valuable global commons.
Difficulty: 2 Medium
Topic: Ethical Issues in International Business
Learning Objective: 05-01 Understand the ethical issues faced by international businesses.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
5) International businesses cannot gain economic advantages by making payments to corrupt government officials.
Answer: FALSE
Explanation: There always have been and always will be corrupt government officials. International businesses can and have gained economic advantages by making payments to those officials.
Difficulty: 2 Medium
Topic: Ethical Issues in International Business
Learning Objective: 05-01 Understand the ethical issues faced by international businesses.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
6) The Foreign Corrupt Practices Act was amended to allow “facilitating payments” to secure contracts that would not otherwise be secured.
Answer: TRUE
Explanation: The Foreign Corrupt Practices Act was later amended to allow for “facilitating payments.” Sometimes known as speed money or grease payments, facilitating payments are not payments to secure contracts that would not otherwise be secured, nor are they payments to obtain exclusive preferential treatment.
Difficulty: 2 Medium
Topic: Key Regulations Governing Ethics and Social Responsibility
Learning Objective: 05-01 Understand the ethical issues faced by international businesses.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
7) The ethical obligations of a multinational corporation toward employment conditions, human rights, environmental pollution, and the use of power are always clear-cut.
Answer: FALSE
Explanation: The ethical obligations of a multinational corporation toward employment conditions, human rights, corruption, environmental pollution, and the use of power are not always clear-cut.
Difficulty: 1 Easy
Topic: Ethical Decision Making
Learning Objective: 05-02 Recognize an ethical dilemma.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
8) Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.
Answer: TRUE
Explanation: Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.
Difficulty: 1 Easy
Topic: Ethical Decision Making
Learning Objective: 05-02 Recognize an ethical dilemma.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
9) Societal business ethics are divorced from personal ethics.
Answer: FALSE
Explanation: Societal business ethics are not divorced from personal ethics, which are the generally accepted principles of right and wrong governing the conduct of individuals.
Difficulty: 1 Easy
Topic: Causes of Unethical Behavior
Learning Objective: 05-03 Identify the causes of unethical behavior by managers.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
10) An individual with a strong sense of personal ethics is less likely to behave in an unethical manner in a business setting.
Answer: TRUE
Explanation: Our personal ethical code exerts a profound influence on the way we behave as businesspeople. An individual with a strong sense of personal ethics is less likely to behave in an unethical manner in a business setting.
Difficulty: 1 Easy
Topic: Causes of Unethical Behavior
Learning Objective: 05-03 Identify the causes of unethical behavior by managers.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
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