Question 1

Donaldson and Dunfee refer to those situations in which unethical behavior in your home country is considered acceptable in another culture as ________________________.

Accepted Answer

Donaldson and Dunfee are referring to 'moral free space' in which there are no right or wrong ethical answers, so managers must determine their own course of actions.

Question 2

The single main factor that motivates corruption and bribery is monetary gain.

Accepted Answer

There are two major factors that motivate corruption and bribery: monetary gain and weak governance.

Question 3

Anti-corruption and bribery legislation has thus far been limited to developed nations.

Accepted Answer

Emerging countries have also passed anti-corruption and bribery legislation. Lithuania is one example. Article 282 of the Criminal code defines the acceptance of a bribe as accepting, promising to accept or demanding of a bribe by a public official or a civil servant.

Question 4

A conflict of tradition occurs when an American businessperson is expected to present a gift to his Japanese distributor partners.

Accepted Answer

In Japanese culture, gift-giving is an important tradition and is often expected in business relationships. However, in American culture, gift-giving may be seen as bribery or inappropriate. This can create a conflict of tradition when an American businessperson is expected to present a gift to Japanese distributor partners.

Question 5

Some studies have found that ethical behavior has less impact on corporate performance in the long run than in the short run.

Accepted Answer

As an example of this phenomenon, an informal survey of a group of 51 employees of Hungarian companies from the fields of advertising, logistics, packaging, travel, recruitment and a few others, 67% found that companies in Hungary that do business legally and ethically are more successful than other companies in the long term, but may be less successful in the short term.

Question 6

The U.S.regulation which requires a company to publicly disclose its code of ethics if its stock is traded under the purview of the SEC is known as the _____________ Act.

Accepted Answer

The regulation referred to in the question is commonly known as Section 406 of the Sarbanes-Oxley Act of 2002. This section requires public companies to disclose whether or not they have adopted a code of ethics for their senior financial officers, and if so, to make the code available on their website or provide it in writing to anyone who requests it.

Question 7

Benjai Pertiwi is torn.His U.S.firm's interest in constructing a manufacturing facility in his father's Indonesian village would provide hundreds of much-needed jobs to the area.The government welcomes the investment,and Benjai's company looks forward to dramatic cost savings as Indonesia does not require the same level of pollution controls or worker safety as a U.S.-based facility would.Although pollution and safety issues could harm residents,their current economic state almost mandates that Benjai promote the facility.Benjai is facing a conflict of _________________________.

Accepted Answer

The correct answer is A because Benjai is facing a conflict of relative development. Relative development refers to the differences in economic development between different regions or countries. In this case, Benjai's U.S. firm is interested in constructing a manufacturing facility in his father's Indonesian village, which is a less developed area. The investment would provide hundreds of much-needed jobs to the area, but it could also harm residents due to pollution and safety issues. Benjai is torn between promoting the facility and protecting the interests of the villagers.

Question 8

Curry is astonished.Her firm has never knowingly given or accepted a bribe from any customer or supplier,foreign or domestic.And,her company has strict controls that assure the propriety of all foreign transactions.Yet she is still being severely admonished for violating the FCPA.What did Curry do wrong?

Accepted Answer

The FCPA requires companies to maintain accurate books and records that account for foreign transactions. If Curry's company failed to maintain such records, they could be violating the FCPA. None of the other options given are directly related to violating the FCPA.

Question 9

A study between 41 and 86 companies in the UK taken from the FTSE 350 found that ____________________________________.

Accepted Answer

Actually, the study showed that companies with a code of ethics experienced far less P/E volatility over a four year period, than those without them.

Question 10

Business practices that may be considered unethical in one culture may be acceptable in another.

Accepted Answer

Different cultures have different beliefs, values, and customs, and what is acceptable in one culture may be considered unethical in another. Therefore, business practices that are considered unethical in one culture may be acceptable in another. This is because business ethics are subjective and influenced by cultural norms and traditions. For example, gift-giving, which is unacceptable in some cultures, may be considered a normal business practice in others.

Question 11

The Sarbanes-Oxley Act of 2002 is composed of all the following requirements except _______________________.

Accepted Answer

The Sarbanes-Oxley Act of 2002 emphasizes greater corporate transparency, senior management accountability, enhanced control systems and whistleblower protections.

Question 12

The measures invoked by the UN Convention Against Corruption are mandatory in both private and public sector cases.

Accepted Answer

The UN Convention prohibits corruption in both the public and private sectors, but the prohibition concerning the private sector is not mandatory.

Question 13

When British firm Cogswell LLC was found to have bribed several officials in Myanmar to obtain release of a large shipment of goods held ostensibly for illegal content,it was required by the UK government to pay the penalties invoked by _____________.

Accepted Answer

Unfortunately the UN does not have authority to enforce compliance with the rules of the Convention; it only serves as a watchdog agency that leaves enforcement to the countries involved.

Question 14

The anti-corruption organization based in Germany that measures the extent of corruption and bribery worldwide is ________________.

Accepted Answer

This Germany-based organization impacts ethical business conduct by establishing legally binding standards to make bribery of foreign officials a criminal offense.

Question 15

An ombudsman and protection for whistleblowers are necessary elements for the implementation of a(n)______________.

Accepted Answer

In order to implement an ethics code, it is necessary to appoint an ombudsman who serves as an advocate for employees who report what they observe as unethical behavior. An employee code of conduct may or may not reference ethics issues, so this answer is in.

Question 16

A study of Corporate Revealed Ethics and Corporate Applied Ethics in the UK determined that ____________________.

Accepted Answer

To the contrary, the study found an indication that accounting measures are more influenced by business ethics than market measures.

Question 17

An Italian distributor of UK-based Brit-Tel was found to have offered a substantial payment to an Italian telecom official in order to have Brit-Tel's products specified in a government bid.Because Brit-Tel was not directly involved in the scenario,it did not suffer penalties under the UK Bribery Bill.

Accepted Answer

The UK Bribery Bill considers the failure to prevent bribery by persons working on behalf of a business a corporate offence.

Quiz 16: Defining Ethics and Corporate Social Responsibility in the International Marketplace