Ch2

Question 1

corporate social responsibility

social good, beyond interest and law

Answer 1

actions that appear to further some social good, beyond the interests of the firm and that which required by law

Question 2

international social responsibility

expectation of MNCS

concerned w social and econ effects of their choices

Answer 2

includes the expectation that MNCs should be concerned with the social and economic effects of their decisions

Question 3

benefits of CSR

corporate social responsibility

Answer 3

• improved employed recruitment
• motivation, and retention
• increase in brand value
• revenue increases, cost decreases
• risk reduction
• improve reputation
• improved customer attraction & retention
• secured license to operate
• improved access to capital

Question 4

anti-sweatshop code of conduct

Answer 4

requires companies to provide a healthy and safe work environment and to pay the prevailing local minimum wage

Question 5

moral universalism

Answer 5

the need for a moral standard that is accepted by all cultures

Question 6

ethics

moral principles

govern behavior

Answer 6

moral principles and values that govern the behavior of people, firms, and governments, regarding right and wrong

Question 7

ethnocentric approach

morality + values

home country- often forces MNC to act in ethnocentric values

Answer 7

company applies the morality used in its home country. public pressure in the home country often forces the MNC to act in accordance with ethnocentric value systems

Question 8

ethical relativism

morality

of HOST country

Answer 8

implementing the morality of host country

Question 9

foreign corrupt practices act (FCPA) of 1977

distinguish between dirty and clean bribery

ALLOWS “grease payments” if lawful in the country
prohibits US company from illegal pymts

Answer 9

primarily establish to distinguish between harmless customs and actual bribery
- Allows “grease” payments if those payments are lawful in the country
- Prohibits US companies from making illegal payments, gifts, or political contributions to foreign government officials for the purposes of influencing them in business
transactions
- Some US firms complain they are at a disadvantage due to FCPA

Question 10

creating shared value (CSV)

creates $ value

ex: invest in jobs, reducing environ footprint

Answer 10

creating social value creates economic value
- examples: reconceiving products and markets, reducing the environmental footprint and investing in jobs, facilities and physical presence

Question 11

electronic industry code of conduct (EICC)

contract manu. to follow basic enviro reqs

Answer 11

contract manufacturers should follow some basic environmental requirements

Question 12

SA8000

SA-FE workenvironments, worlds leading social certification program, business is far and decent

Answer 12

• Provides a safe work environment
• It’s the world’s leading social certification program
• Provides a framework for organizations to conduct business in a way that is fair and decent for workers and to demonstrate their adherence to the higher social standards. (child labor, forced labor, healthy and safety, discrimination, disciplinary practices, working hours, remuneration, management system, right to collective bargaining)

Question 13

transparency international

NGO

FIGHTS corruption

Answer 13

NGO that fights corruption and measures the relative prevalence of bribery in various spheres of people’s lives

Question 14

EU directive on data protection

Answer 14

dedicated to monitoring issues of data privacy in Europe

Question 15

grease money

tokens of appreciation

expedite routine trans, questionable ethics

Answer 15

payments to expedite routine transactions
- also called tokens of appreciation
- these payments are questionable in terms of ethics

Question 16

organization for economic cooperation and development convention on bribery

all these words = ccc

combat c– c—

Answer 16

to combat corporate corruption

Question 17

global compliance system

Answer 17

shows that employees have understood, and signed off on, the legal obligations regarding bribery and corruption in the countries where they do business

Question 18

code of ethics

company guidelines

actions and decision making

Answer 18

are company guidelines for the actions and decision-making by all employees in the firm

Question 19

steps for making ethical decisions

3 steps

• consult laws of HOST and HOME countries
• consult int CoC for MNEs
• follow your own conscience/moral code

Answer 19

1. Consulting the laws of both the host and home countries
2. Consult the International Codes of Conduct for MNEs.
3. Following your own conscience and moral code

Question 20

sustainability

protecting ability of future gen

cost saving, more efficient production

Answer 20

meeting humanity’s needs without harming the ability of future generations to meet their needs. Sustainable practices could result in cost savings for more efficient production

Question 21

international codes of conduct

MNE behavior

they should conduct research
toward public - tech transfer and enviromental protection
towards people - human rights, consumer protection. employment practices

Answer 21

the MNE behavior toward the host government is related to economic and developmental policies, laws and regulation, and political involvement
- MNEs should conduct research and development activities in developing countries - MNE behavior toward to public is related to technology transfer and environmental protection
- MNE behavior toward persons should focus on human rights, employment practices, and consumer protection.

Question 22

international business ethics

Answer 22

refers to the business conduct or morals of MNCs in their relationship with individuals and entities

Question 23

nationalism

public opinion in FAVOR of ur nation AGAINST foreign influences

Answer 23

the practice by a country of rallying public opinion in favor of national goals and against foreign influences

Question 24

governmentalism

policy setting role being used

TO FAVOR interests of the nation

Answer 24

the government uses its policy-setting role to favor the interests of the nation

Question 25

export of hazardous wastes

from dev countries to less dev

increased bc weak reg and low cost

Answer 25

from developed countries to less developed countries has increased significantly due to weak regulations and low costs.

Question 26

global interdependence

profitability

depends on cooperative and constructive attitudes

Answer 26

the profitability of individual companies depends on cooperative and constructive attitudes

Question 27

triple bottom line

dimensionsof sustainability

ESE $ppltree

Answer 27

3 dimensions of sustainability-economic, social, environmental