Question 1

In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery unacceptable.

Accepted Answer

According to the question, all of the listed countries except for one found bribery unacceptable when doing business in foreign countries. The exception is South Korea, which may accept bribes in certain situations. Therefore, the correct answer is D, South Korea.

Question 2

Jason completes company work at home on the weekends. He justifies taking office supplies home because of the company work he completes at home. Which ethical issue does this scenario relate to?

Accepted Answer

Jason's action relates to the ethical issue of honesty. Taking office supplies home without proper authorization is not honest behavior. Even if he uses the supplies for company work at home, he should still follow the company's proper protocol for requesting and using office supplies.

Question 3

Sally uses her telephone at work to call her sister long distance. Which of the following best describes Sally's ethical issue?

Accepted Answer

Using a work telephone for personal long-distance calls without permission is considered dishonest as it involves using company resources for personal benefit without authorization.

Question 4

What was the first action taken by Siemens after the firm was fined for numerous ethics violations?

Accepted Answer

Siemens replaced top executives as an immediate response to the ethics violations to signal a change in leadership and direction.

Question 5

In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery acceptable.

Accepted Answer

According to the statement, all of the listed countries found bribery acceptable except for one. Therefore, the answer must be the one country that does not accept bribery, which is Austria.

Question 6

Which of the following is not a common method for encouraging ethical behavior among employees?

Accepted Answer

Public admonishment is not a common method for encouraging ethical behavior among employees. Instead, positive reinforcement, such as rewards for ethical behavior and organizational practices that prioritize ethics, are more effective approaches. Codes of ethics and ethics training are commonly used to promote ethical behavior.

Question 7

Gift exchanges are likely to be considered a conflict of interest in a(n) ________ culture.

Accepted Answer

In a low-context culture, communication is more explicit, and business practices are expected to be transparent and free from personal biases, making gift exchanges more likely to be seen as a conflict of interest.

Question 8

Which of the following most likely improves the effectiveness of a code of ethics for an MNE?

Accepted Answer

Support from organizational practices will help in implementing the code of ethics effectively. It will ensure that the code of ethics is integrated into everyday operations and decision making, and employees are held accountable for adhering to it. The other options may also be important but are less likely to improve the effectiveness of the code of ethics as much as having support from organizational practices.

Question 9

Which of the following actions LEAST likely shows a firm's social responsibility toward its customers?

Accepted Answer

Providing warranties is a standard business practice and legal requirement in many cases, rather than an action specifically demonstrating social responsibility.

Question 10

Jack always likes to place orders with Sam's Supply Company because the company sends him a gift certificate for $100 each holiday season. Which ethical issue is this an example of?

Accepted Answer

This is an example of a conflict of interest because Jack's decision to do business with Sam's Supply Company is influenced by the potential reward of receiving a gift certificate, rather than making the best decision for his company based on factors such as price and quality.

Question 11

A company that is socially responsible will most likely ________.

Accepted Answer

The answer of A company that is socially responsible will...

Question 12

The term ________ refers to the set of obligations an organization undertakes to protect and enhance the society in which it functions.

Accepted Answer

Social responsibility refers to the obligations of an organization towards the society in which it operates. It includes actions that promote the well-being of stakeholders, such as customers, employees, suppliers, and the community at large. Social responsibility encompasses ethical, legal, and economic considerations and involves issues such as environmental protection, social justice, and philanthropy.

Question 13

Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following questions is most relevant to the current discussion about the firm's code of ethics?

Accepted Answer

The question of whether the code of ethics should be globally consistent or tailored to local contexts is most relevant to the current discussion about the firm's international expansion and the need to ensure ethical standards across different cultures and legal systems. This question will help HR and top executives determine whether the code of ethics needs to be revised to reflect the unique ethical challenges of doing business in China and Bangladesh.

Question 14

Companies that are socially responsible to their investors do all of the following except ________.

Accepted Answer

Manipulating stock prices is not a socially responsible behavior toward investors. Instead, companies should be transparent and honest with their investors to build trust and maintain their reputation. Providing appropriate information, protecting shareholder rights, and adhering to accounting procedures are all essential aspects of socially responsible behavior toward investors.

Question 15

Firms such as Procter & Gamble that use recycled materials whenever possible are most likely demonstrating their ________.

Accepted Answer

By using recycled materials, firms like Procter & Gamble are taking steps to reduce waste and conserve resources, which demonstrates their commitment to environmental protection.

Question 16

In an international setting, which of the following behaviors is LEAST likely to be subject to ethical ambiguity?

Accepted Answer

The answer of In an international setting, which of the...

Question 17

The term ________ refers to those people and organizations that are directly affected by the practices and performance of an organization.

Accepted Answer

The term "organizational stakeholders" refers to those individuals and groups who have a stake or interest in the practices and performance of an organization, including customers, employees, shareholders, suppliers, and community members.

Question 18

Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following training topics would most likely prepare expatriate managers for handling ethics issues in China and Bangladesh?

Accepted Answer

Local business practices would be the most relevant training topic for expatriate managers to handle ethics issues in China and Bangladesh. Understanding the local business practices and customs can help the managers navigate cultural differences and make ethically sound decisions in the foreign environment. Multilingual contexts may be helpful as well, but it is not specific to ethics issues. Local religious customs and global marketing methods may not directly relate to ethics issues in business operations.

Question 19

Which of the following is not one of the main groups of stakeholders that firms usually focus on?

Accepted Answer

Competitors are not typically considered a stakeholder group that a firm focuses on, as they are seen as external to the organization and may even be viewed as a threat to the firm's success. The three main stakeholder groups that firms typically focus on are customers, employees, and investors; these groups are seen as integral to the firm's success and are prioritized accordingly in strategic decision-making.

Question 20

HR at APEX Designs, an international architectural firm, have noticed the following behaviors among employees lately. Which of the following would NOT be considered a problematic ethical situation at APEX?

Accepted Answer

Working excessive overtime may not necessarily be a problematic ethical situation unless it violates labor laws or company policies regarding overtime pay and work-life balance. However, taking office supplies home, making personal calls during work time, and padding expense accounts are all examples of unethical behavior that can harm the company's reputation, finances, and employee morale.

Quiz 5: Ethics and Social Responsibility in International Business