Ch. 11 Managing for Ethics and Social Responsibility in a Global Environment

Question 1

Describe individualistic culture vs. collectivist culture

Answer 1

Responsibility primarily to self versus family/group
Most Asian / Latin American countries - collectivist
U.S., Canada, Australia, most N. Europeans - individualist

Question 2

Describe power distance

Answer 2

Acceptance of hierarchical or unequal distribution of power, inequality
India, Philippines, Mexico, Venezuela - high on power distance
U.S., Israel, most Northern Europeans lower on power distance

Question 3

Describe selective perception

Answer 3

process is influenced by culture.

Question 4

What is 
the Assumption of Behavioural Consistency regarding foreign individuals?

Answer 4

The foreign individuals you deal with may adapt their behaviour based on what they expect you to do. Switching cultures.

Question 5

Assumption of cultural Homogeneity/
Assumption of similarity

Answer 5

Individuals within the same national culture are not the same.
Cultural similarity - Regional
pockets of individualism

Question 6

2 approaches to the Development of Corporate Guidelines and Policies for Global Business Ethics EXAM

Answer 6

Imperialism - assumes absolute truths and requires the same standards everywhere.
Relativism - “when in Rome, do as the Roman’s do” EXAM. Do not impost standards on others. This may include accepting unethical behaviour such as slave labour, dumping of toxic waste and any other local customs.

Question 7

Donaldson’s Approach to Developing Corporate Guidelines

Answer 7

• Reject both ethical relativism and imperialism
• Develop an “ethical THRESHOLD” for corporate behavior abroad based upon core values that can be translated into specific guidelines
• Companies can respect human dignity by treating employees, customers and suppliers as persons with intrinsic value by creating safe products and a safe workplace.
• They protect and respect human right by protecting employees and can be good citizens by avoiding corruption and protecting the natural environment.

Question 8

Development of a Transcultural Corporate Ethic

Answer 8

• Inviolability of national sovereignty
• Social equity
• Market integrity in business transactions
• Human rights and fundamental freedoms

Question 9

What are the 8 global codes of conduct?

Answer 9

1- fiduciary
2- property
3- reliability
4- transparency
5- dignity
6- fairness
7- citizenship
8- responsiveness

Question 10

When cultural traditions do not violate any of the core human values

Answer 10

• Gift giving - Look at the scope (value) and intensions (reciprocity).
• Nepotism (favouring friends and relatives) - not in supervisory relationships
• Companies struggle to create codes and ethics management systems that are truly global or adaptable to the cultures in which they operate.

Question 11

Give some examples of corruption

Answer 11

• the misuse of company assets for political favours
• kickbacks and protection money for police
• free junkets for government officials
• secret price-fixing agreements
• insider dealing

Question 12

Arguments for bribery

Answer 12

1. They are necessary for profits in order to do business
2. Everybody does it – will happen anyways
3. It is accepted practice in many countries, it is normal and expected
4. bribes a forms of commissions taxes or compensation for conducting business between cultures.

Question 13

Arguments against bribery

Answer 13

1. bribes are inherently wrong and cannot be accepted under any circumstances
2. Bribes are illegal in many developed and developing nations
3. One should not comprises her or his own beliefs
4. Managers should not deal with corrupt governments
5. Such demands once started never stop
6. Those receiving the bribes are the only ones who benefit
7. One should take a stand for honesty, morality and ethics.

Question 14

What are the eight principles of global codes of conduct?

Answer 14

1. fiduciary
2. property
3. reliability
4. transparency
5. dignity
6. fairness
7. citizenship
8. responsivness