Ethical Approaches Quiz

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Questions and Answers

Which of the following is the starting point for addressing ethical issues in international business?

Ethics (correct)

Corporate social responsibility

Sustainability

Employment practices

What does an ethical strategy in business refer to?

A strategy that does not violate a company's business ethics (correct)

A strategy that promotes sustainability

A strategy that violates a company's business ethics

A strategy that complies with international laws

In international business, many ethical issues are rooted in differences in which of the following?

Human rights, corruption, and moral obligations

Home nation, host nation, and multinational corporations

Culture, employment practices, and environmental regulations

Political systems, laws, and economic development (correct)

When work conditions in a host nation are inferior to those in a multinational's home nation, which standards apply?

Home nation standards Signup and view all the answers

Which of the following is NOT one of the most common ethical issues in international business?

Environmental regulations Signup and view all the answers

Why is it incredibly difficult to come up with global standards for ethical issues in international business?

Differences in political systems and laws Signup and view all the answers

Which of the following is a social issue that frequently arises in international business?

Sustainability Signup and view all the answers

According to Milton Friedman, what is the social responsibility of business?

To increase profits within the rules of law Signup and view all the answers

What is the main principle of utilitarian approaches to ethics?

Actions are desirable if they lead to the best possible balance of good consequences over bad consequences Signup and view all the answers

According to Kantian ethics, how should people be treated?

As ends and never purely as means to the ends of others Signup and view all the answers

What is the focus of justice theories in ethics?

Attainment of a just distribution of economic goods and services Signup and view all the answers

What is one of the managerial implications for making ethical decisions internationally?

Hire and promote people with a strong sense of personal ethics Signup and view all the answers

What is the role of ethical officers in organizations?

To assess the needs and risks that an ethics program must address Signup and view all the answers

What is the concept of corporate social responsibility (CSR)?

With power comes the social responsibility to give something back to the societies that enable multinationals to grow and prosper Signup and view all the answers

Which of the following is NOT one of the basic human rights found in developed nations?

Freedom from political repression Signup and view all the answers

What did General Motors adopt in response to the apartheid system in South Africa?

The Sullivan principles Signup and view all the answers

Is it ethical for multinational corporations to do business with repressive regimes?

No, because investment cannot be justified on ethical grounds Signup and view all the answers

What is the Tragedy of the commons?

When a resource held in common by all but owned by no one is overused by individuals, resulting in its degradation Signup and view all the answers

What does the Convention on combating bribery of foreign public official in international business transactions do?

Makes the bribery of foreign officials a criminal offense Signup and view all the answers

What are the six determinants of ethical behavior mentioned in the text?

Personal ethics, decision-making processes, organizational culture, unrealistic culture, leadership, societal culture Signup and view all the answers

Which of the following is NOT a determinant of ethical behavior according to the text?

Parent companies Signup and view all the answers

Which of the following best defines sustainability?

Making good profits without harming the environment and acting in a socially responsible manner Signup and view all the answers

What is the core idea behind sustainability?

Ensuring long-term economic and social benefits for stakeholders Signup and view all the answers

When assessing a course of action, what principle should be used?

The precautionary principle Signup and view all the answers

What should an organization avoid in order to prevent a tragedy of the commons?

Precipitating a situation Signup and view all the answers

What is the first step in the five-step process to think through ethical problems?

Identify which stakeholders a decision would affect and in what ways Signup and view all the answers

What should be done if a proposed decision violates the fundamental rights of stakeholders?

Place moral concerns ahead of other concerns Signup and view all the answers

What is the final step in the five-step process to think through ethical problems?

Audit decisions to ensure consistency with ethical principles Signup and view all the answers

What does stakeholder analysis involve?

Identifying which stakeholders a decision would affect and in what ways Signup and view all the answers

What should be done when either the fundamental rights of stakeholders or key moral principles have been violated?

Engage in ethical behavior Signup and view all the answers

Study Notes

Ethical Issues in International Business

Starting point for addressing ethical issues is understanding the cultural context of the host nation.
Ethical strategy in business involves creating a framework to ensure ethical decision-making aligned with company values.

Roots of Ethical Issues

Many ethical issues are rooted in cultural differences, economic disparities, and varying legal standards across countries.

Standards for Work Conditions

When host nation work conditions are inferior, ethical standards from the multinational's home country often apply.

Common Ethical Issues

Common ethical issues in international business include labor practices, corruption, ethical treatment of employees, and environmental concerns.
Issues like intellectual property theft may not be considered a common ethical issue.

Global Ethical Standards Challenges

Difficulty in establishing global ethical standards arises from varying cultural norms, legal frameworks, and economic conditions between nations.

Social issues frequently arising include labor exploitation, child labor, and gender discrimination.

Milton Friedman posits that the primary social responsibility of business is to increase profits for shareholders.

Utilitarian Ethics

The main principle of utilitarian approaches is maximizing overall happiness or benefit while minimizing harm.

Kantian Ethics

Kantian ethics emphasizes treating all individuals as ends in themselves and never merely as means to an end.

Justice Theories

Justice theories in ethics focus on fairness and equitable treatment of individuals in different scenarios.

Ethical Decision-Making

A key managerial implication for ethical decisions is the incorporation of ethical considerations into strategic planning.

Role of Ethical Officers

Ethical officers within organizations act as advisors, guiding ethical practices and compliance with regulatory standards.

CSR encompasses a company's efforts to have a positive impact on society, balancing profit generation with social good.

Human Rights

Basic human rights, such as freedom of speech and equitable treatment, may not always be upheld in less developed nations.

General Motors and Apartheid

General Motors adopted a policy of disinvestment in response to the apartheid system in South Africa.

Ethics and Repressive Regimes

Ethical considerations concerning multinational corporations doing business with repressive regimes invite significant debate.

Tragedy of the Commons

The Tragedy of the Commons refers to the depletion of shared resources due to individual self-interest outweighing collective benefit.

Convention Against Bribery

The Convention on combating bribery of foreign public officials establishes a framework to combat corruption in international business practices.

Determinants of Ethical Behavior

Six determinants of ethical behavior include individual morals, corporate culture, industry standards, the regulatory environment, stakeholder expectations, and societal norms.
Factors like personal gain at the expense of others would not be considered a determinant.

Sustainability Defined

Sustainability is best defined as meeting present needs without compromising the ability of future generations to meet their own needs.
The core idea includes preserving natural and social resources for future generations.

Assessing Actions

When assessing a course of action, the principle of considering long-term impact and stakeholders’ interests should be used.

Avoiding Tragedy of the Commons

Organizations should avoid overexploitation of resources to prevent the Tragedy of the Commons.

Five-Step Process

The first step in the five-step process for ethical problem-solving includes identifying the ethical issue at hand.
If a proposed decision violates stakeholders' fundamental rights, it should be reconsidered or rejected.

Final Step in Ethical Analysis

The final step in the ethical decision-making process is to evaluate the outcomes of the implemented decision.

Stakeholder Analysis

Stakeholder analysis involves identifying all parties affected by a decision and understanding their interests and rights.

Violations of Rights

When fundamental rights of stakeholders or key moral principles are violated, remediation efforts, including changes in policy or practices, must be initiated.

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Description

Test your knowledge of different philosophical approaches to ethics and their implications for ethical decision making. Explore concepts like straw men, the Friedman Doctrine, and cultural relativism. Discover how these ideas shape our understanding of what is morally right and wrong.