Chapter 11

Question 1

These corporations must balance the interests of different constituencies that have different objectives

Answer 1

Multi-national enterprises

Question 2

Companies create what to help their employees understand how they are expected to act?

Answer 2

Codes of conduct

Question 3

How do companies truly attain proper conduct?

Answer 3

Hiring ethical employees; they are the ones who make the decisions

Question 4

What behavior implies that we act according to the norms of the countries in which we operate?

Answer 4

Relative

Question 5

What behavior implies that there are universal standards for ethical conduct that should be followed everywhere?

Answer 5

Normative

Question 6

The law is an important basis for ethical behavior, but not all unethical behavior is illegal. Thus, ethical behavior must go beyond the law to include what?

Answer 6

Common decency

Question 7

What is a form of unethical behavior, possibly the most common form, that was talked about in class?

Answer 7

Bribery

Question 8

On what levels has the issue of bribery been addressed?

Answer 8

The multilateral level with the UN and OECD, and at the national level with the Foreign Corrupt Practices Act in the United States

Question 9

Environmental concerns are raised over what industries?

Answer 9

Extractive industries and those that generate air and water pollution, or that make products such as automobiles that use fossil fuels

Question 10

This protocol, which requires the reduction of the emission of greenhouse gases, has not been adopted by all countries and is therefore still limited in its total global impact

Answer 10

The Kyoto Protocol

Question 11

Why are pharmaceutical companies facing challenges?

Answer 11

Struggling to figure out how to make enough money to fund research and development into new drugs and how to help provide critical drugs to developing countries at lower prices

Question 12

A major challenge facing multi-national enterprises is what?

Answer 12

The globalization of supply chain and the impact on workers, especially in the areas of fair wages, child labor, working conditions, working hours, and freedom of association

Question 13

Companies respond to the pressure for greater corporate social responsibility by doing what?

Answer 13

Establishing codes of conduct, distributing them to suppliers and subcontractors internationally, and ensuring compliance with the codes through effective training and auditing programs

Question 14

This group includes shareholders, employees, customers, suppliers, and society at large; want additional sales and increased productivity; more jobs increased taxes; safer workplaces and higher compensation

Answer 14

Stakeholders

Question 15

Decisions are based on the consequences of the action

Answer 15

Teleological approach

Question 16

Consequences based theory of moral reasoning, means that “an action is right if it produces or if it tends to produce, the greatest amount of good for the greatest number of people”

Answer 16

Utilitarianism

Question 17

Asserts that we make moral judgements or engage in moral reasoning independent of consequences

Answer 17

Deontological approach

Question 18

Holds that ethical truths depend on the value of a particular society and may vary from one society or country to another

Answer 18

Relativism

Question 19

Holds that there are indeed universal standards of behavior that, although influenced by different cultural values, should be accepted by people everywhere

Answer 19

Normativism

Question 20

Imposing domestic legal and ethical practices on the foreign subsidiaries of companies headquartered in their jurisdictions

Answer 20

Extraterritoriality

Question 21

Outlaw’s bribery payments by the US firms to foreign officials, political parties, party officials, and political candidates

Answer 21

Foreign Corrupt Practices Act (FCPA)

Question 22

Means meeting the needs of the present without compromising the ability of future generations to meet their own needs

Answer 22

Sustainability