CHAPTER 2 QUIZ
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Questions and Answers

What does utilitarianism primarily advocate in the context of ethical actions?

  • Actions that are acceptable only within specific cultural contexts.
  • Actions that respect equality among all individuals regardless of outcomes.
  • Actions that strive for maximum happiness and minimize unhappiness. (correct)
  • Actions that prioritize individual rights over collective happiness.

    • Which statement best characterizes rights theory?

  • Rights can be negotiated based on societal needs and economic factors.
  • Rights should evolve in accordance with cultural and societal changes.
  • Every individual is granted rights that must be safeguarded universally. (correct)
  • Human rights are exclusive to the culture in which they are recognized.

    • What does the theory of justice emphasize in a societal context?

  • A free market system should be prioritized over egalitarian principles.
  • Economic equality is secondary to individual freedoms in society.
  • Citizens should cooperate within a system that aims for equal basic rights. (correct)
  • Distributive justice is irrelevant to societal progress.

    • How does cultural relativism define the morality of an act?

    <p>Based on its acceptance and interpretation within a specific culture.</p> Signup and view all the answers

    Which concept assesses the acceptability of business practices in relation to a manager’s home country?

    <p>Conflict of relative development concept.</p> Signup and view all the answers

    What primary function does a code of ethics serve in a business context?

    <p>To outline ethical values and baseline professional conduct.</p> Signup and view all the answers

    According to Adam Smith and Milton Friedman, what is the key to fulfilling a company's social responsibility?

    <p>Maximizing shareholder value in competitive markets.</p> Signup and view all the answers

    Which of the following is a dilemma that can be examined through various ethical theories?

    <p>How to balance profitability with environmental protection.</p> Signup and view all the answers

    What does corporate social responsibility primarily advocate for in a business context?

    <p>Incorporating social objectives into business goals.</p> Signup and view all the answers

    Which concept emphasizes the relationships between a business and all affected parties?

    <p>Stakeholder theory.</p> Signup and view all the answers

    What is a primary goal of companies pursuing net-zero emissions?

    <p>Slowing climate change and promoting a healthier ecosystem.</p> Signup and view all the answers

    What does a circular economy focus on regarding product design?

    <p>Designing products for reuse and minimal waste.</p> Signup and view all the answers

    Under which act are US companies prohibited from bribing foreign officials?

    <p>Foreign Corrupt Practices Act.</p> Signup and view all the answers

    Which ethical issue can significantly harm economic development and public policy?

    <p>Bribery and corruption.</p> Signup and view all the answers

    What is a potential consequence of a company falsely advertising its products as environmentally friendly?

    <p>Legal ramifications for misleading advertising.</p> Signup and view all the answers

    How can international businesses benefit from a diverse workforce?

    <p>By leveraging unique perspectives and skills.</p> Signup and view all the answers

    Which ethical theory emphasizes the protection of human rights as a universal obligation?

    <p>Rights theory</p> Signup and view all the answers

    What does the conflict of relative development concept evaluate in relation to business practices?

    <p>The acceptability of practices compared to the manager's home country conditions</p> Signup and view all the answers

    What is the primary function of certified B Corps?

    <p>To achieve a positive impact on stakeholders while pursuing profits</p> Signup and view all the answers

    How does the theory of justice describe an ideal society?

    <p>A community of equal citizens with distributive equality</p> Signup and view all the answers

    What principle underlies the argument against unethical business practices as per utilitarianism?

    <p>They prevent majority happiness</p> Signup and view all the answers

    Which of the following best defines sustainability in a business context?

    <p>Meeting current needs without compromising future generations' ability to meet theirs</p> Signup and view all the answers

    What is a potential legal repercussion of violating the Foreign Corrupt Practices Act?

    <p>Substantial fines and penalties for corporations and individuals</p> Signup and view all the answers

    Which ethical theory suggests that actions should adhere to a set of universal standards regardless of cultural context?

    <p>Rights theory</p> Signup and view all the answers

    How do companies typically aim to create a more circular economy?

    <p>By designing products that can be reused and upgraded</p> Signup and view all the answers

    What aspect of corporate social responsibility do Adam Smith and Milton Friedman emphasize?

    <p>Maximizing shareholder value in competitive markets</p> Signup and view all the answers

    Which of the following statements accurately reflects a consequence of greenwashing?

    <p>It can lead to legal sanctions for false advertising</p> Signup and view all the answers

    According to cultural relativism, how should ethical practices be evaluated?

    <p>In relation to local cultural norms at the time</p> Signup and view all the answers

    What is a significant impact of bribery and corruption on economic development?

    <p>It distorts public policy and hinders growth</p> Signup and view all the answers

    Which component is a key characteristic of a code of ethics in business?

    <p>It conveys ethical values and sets professional conduct expectations</p> Signup and view all the answers

    In what way does stakeholder theory affect corporate decision-making?

    <p>It highlights the interconnections between various parties influenced by business actions</p> Signup and view all the answers

    What core principle does corporate social responsibility promote?

    <p>Incorporating social objectives into company goals and policies</p> Signup and view all the answers

    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.

    • 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.

    • 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.

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