Questions and Answers
What does utilitarianism primarily advocate in the context of ethical actions?
Which statement best characterizes rights theory?
What does the theory of justice emphasize in a societal context?
How does cultural relativism define the morality of an act?
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Which concept assesses the acceptability of business practices in relation to a manager’s home country?
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What primary function does a code of ethics serve in a business context?
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According to Adam Smith and Milton Friedman, what is the key to fulfilling a company's social responsibility?
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Which of the following is a dilemma that can be examined through various ethical theories?
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What does corporate social responsibility primarily advocate for in a business context?
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Which concept emphasizes the relationships between a business and all affected parties?
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What is a primary goal of companies pursuing net-zero emissions?
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What does a circular economy focus on regarding product design?
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Under which act are US companies prohibited from bribing foreign officials?
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Which ethical issue can significantly harm economic development and public policy?
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What is a potential consequence of a company falsely advertising its products as environmentally friendly?
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How can international businesses benefit from a diverse workforce?
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Which ethical theory emphasizes the protection of human rights as a universal obligation?
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What does the conflict of relative development concept evaluate in relation to business practices?
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What is the primary function of certified B Corps?
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How does the theory of justice describe an ideal society?
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What principle underlies the argument against unethical business practices as per utilitarianism?
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Which of the following best defines sustainability in a business context?
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What is a potential legal repercussion of violating the Foreign Corrupt Practices Act?
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Which ethical theory suggests that actions should adhere to a set of universal standards regardless of cultural context?
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How do companies typically aim to create a more circular economy?
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What aspect of corporate social responsibility do Adam Smith and Milton Friedman emphasize?
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Which of the following statements accurately reflects a consequence of greenwashing?
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According to cultural relativism, how should ethical practices be evaluated?
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What is a significant impact of bribery and corruption on economic development?
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Which component is a key characteristic of a code of ethics in business?
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In what way does stakeholder theory affect corporate decision-making?
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What core principle does corporate social responsibility promote?
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Study Notes
Main Theories of Ethics in International Business
-
Utilitarianism:
- Advocates for actions that promote happiness and the greatest good for the greatest number.
-
Rights Theory:
- Asserts that all human beings possess inherent rights that are universal and must be protected by governments, regardless of culture.
-
Theory of Justice:
- Envisions a society where free citizens have equal rights and cooperate in a fair economic system that ensures equitable distribution of resources.
-
Cultural Relativism:
- Proposes that morality is determined by cultural perceptions; actions are judged based on the norms and values of a specific culture at a particular time.
Resolving Ethical Dilemmas
-
Conflict of Relative Development:
- Considers if a practice would be acceptable in a manager’s home country if faced with a similar development level.
-
Conflict of Cultural Tradition:
- Evaluates a practice based on:
- Necessity for business success in the culture.
- Adherence to core human values.
- Evaluates a practice based on:
-
Ethical dilemmas can be analyzed through the lens of utilitarianism, rights theory, justice, and cultural relativism.
-
Code of Ethics:
- Serves as a framework for decision-making by establishing ethical values and expected professional conduct.
Corporate Social Responsibility (CSR) and Stakeholder Theory
-
Traditional Views:
- Adam Smith and Milton Friedman argued that maximizing shareholder value in free markets fulfills social responsibility.
-
Modern Approach to CSR:
- Companies now integrate social objectives within their missions and strive to positively impact society.
-
Stakeholder Theory:
- Emphasizes the interconnected relationships between businesses and all stakeholders impacted by their operations.
-
Certified B Corps:
- Benefit corporations legally authorized to balance profit pursuits with positive impacts on stakeholders.
Importance of Sustainability and Climate Change
-
Sustainability:
- Defined as meeting current needs without compromising future generations' abilities.
-
Companies aim to reduce carbon footprints and target net-zero emissions as a proactive measure against climate change.
-
Circular Economy:
- Focuses on designing products for reuse, disassembly, and upgradeability to minimize waste generation.
-
Greenwashing:
- Businesses falsely representing their environmental practices risk being accused of misleading consumers.
Daily Challenges for International Managers
-
Bribery and Corruption:
- These practices can hinder economic growth, distort policy-making, and undermine national integrity.
-
Foreign Corrupt Practices Act:
- Prohibits US entities from bribing foreign government officials, extending its jurisdiction to firms with minimal U.S. connections.
-
Human Rights and Working Conditions:
- Global initiatives aim to combat human rights violations and poor labor standards.
-
Diversity and Inclusion:
- A diverse workforce enhances competitive advantages by providing varying cultural insights and skills.
Main Theories of Ethics in International Business
-
Utilitarianism:
- Advocates for actions that promote happiness and the greatest good for the greatest number.
-
Rights Theory:
- Asserts that all human beings possess inherent rights that are universal and must be protected by governments, regardless of culture.
-
Theory of Justice:
- Envisions a society where free citizens have equal rights and cooperate in a fair economic system that ensures equitable distribution of resources.
-
Cultural Relativism:
- Proposes that morality is determined by cultural perceptions; actions are judged based on the norms and values of a specific culture at a particular time.
Resolving Ethical Dilemmas
-
Conflict of Relative Development:
- Considers if a practice would be acceptable in a manager’s home country if faced with a similar development level.
-
Conflict of Cultural Tradition:
- Evaluates a practice based on:
- Necessity for business success in the culture.
- Adherence to core human values.
- Evaluates a practice based on:
-
Ethical dilemmas can be analyzed through the lens of utilitarianism, rights theory, justice, and cultural relativism.
-
Code of Ethics:
- Serves as a framework for decision-making by establishing ethical values and expected professional conduct.
Corporate Social Responsibility (CSR) and Stakeholder Theory
-
Traditional Views:
- Adam Smith and Milton Friedman argued that maximizing shareholder value in free markets fulfills social responsibility.
-
Modern Approach to CSR:
- Companies now integrate social objectives within their missions and strive to positively impact society.
-
Stakeholder Theory:
- Emphasizes the interconnected relationships between businesses and all stakeholders impacted by their operations.
-
Certified B Corps:
- Benefit corporations legally authorized to balance profit pursuits with positive impacts on stakeholders.
Importance of Sustainability and Climate Change
-
Sustainability:
- Defined as meeting current needs without compromising future generations' abilities.
-
Companies aim to reduce carbon footprints and target net-zero emissions as a proactive measure against climate change.
-
Circular Economy:
- Focuses on designing products for reuse, disassembly, and upgradeability to minimize waste generation.
-
Greenwashing:
- Businesses falsely representing their environmental practices risk being accused of misleading consumers.
Daily Challenges for International Managers
-
Bribery and Corruption:
- These practices can hinder economic growth, distort policy-making, and undermine national integrity.
-
Foreign Corrupt Practices Act:
- Prohibits US entities from bribing foreign government officials, extending its jurisdiction to firms with minimal U.S. connections.
-
Human Rights and Working Conditions:
- Global initiatives aim to combat human rights violations and poor labor standards.
-
Diversity and Inclusion:
- A diverse workforce enhances competitive advantages by providing varying cultural insights and skills.
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Description
Explore the foundational theories that shape ethical decision-making in international business. This quiz covers Utilitarianism, Rights Theory, Theory of Justice, and Cultural Relativism, providing insights into resolving ethical dilemmas across cultures. Test your understanding of how these theories influence business practices globally.
