Chapter 4

Question 1

Circumstances that affect ethical considerations

Answer 1

• Political environment
• Socio-cultural environment
• Technological environment
• Economic environment

Question 2

Ethics in the Changing Political Environment

Answer 2

Corruption

Question 3

Ethics in the Sociocultural Environment

Answer 3

• What is considered normal practice in one culture may be considered unethical in others.

Question 4

Outsourcing

Answer 4

When outsourced firms provide products and services at a lower cost, one of the most obvious considerations is discovering how the provider of the outsourced activity is “doing it cheaper”.

Question 5

Roots of Unethical Behaviour

Answer 5

• Business ethics are not divorced from personal ethics, which are the generally accepted principles of right and wrong governing the conduct of individuals.
• An individual with a strong sense of personal ethics is less likely to behave in an unethical manner in a business setting.

Question 6

5 things International Business and its managers can do to make sure ethical issues are not considered in business decisions.

Answer 6

1. Favor hiring and promoting people with a well-grounded sense of personal ethics.
2. Build an organizational culture that places a high value on ethical behaviour.
3. Make sure that leaders within the business not only articulate the rhetoric of ethical behaviour, but also act in a manner that is consistent with that rhetoric.
4. Put decision-making processes in place that require people to consider the ethical dimension of business decisions.
5. Develop courage.