GEB4361 Chapter 02 Managing Interdepence Social Responsibility, Ethics, Sustainability

Question 1

The strategic problem for retailers is

Answer 1

finding low-wage countries to produce, label, and ship goods on time

Question 2

Corporate social responsibility:

Answer 2

Manner of operating a business that meets or exceeds the ethical, legal, commercial, and public expectations of customers, shareholders, employees, and communities

Question 3

Manner of operating a business that meets or exceeds the ethical, legal, commercial, and public expectations of customers, shareholders, employees, and communities

Answer 3

Corporate social responsibility:

Question 4

A strong CSR can:

Answer 4

• Help recruit and retain good employees
• Help differentiate the firm and enhance its brands
• Help cut costs, such as minimizing packaging, recycling, energy economizing, and reducing waste in operations
• Help the firm avoid increased taxation, regulation, or other legal actions by local government

Question 5

Pyramid of Ethical Behavior

Answer 5

Comply with laws, regulations (bottom of the pyramid)

• Ethical Behavior
• Corporate social responsibility

Question 6

Concerns the benefits vs. harm wrought by multinational corporations (MNCs), especially in less developed countries (LDCs)

Answer 6

Corporate social responsibility

Question 7

Issues of social responsibility tend to center on

Answer 7

poverty and 
lack of equal opportunity, 
the environment, 
consumer concerns, employee safety 
employee welfare

Question 8

Managers must weigh the rights of

Answer 8

domestic stakeholders versus those of host country stakeholders

Question 9

Benefits from CSR

Answer 9

• Improved access to capitol
• Secured license to operate
• Revenue increase and cost and risk reduction
• Improved brand value and reputation with customer attraction and retention
• Improved employee recruitment, motivation, and retention

Question 10

Meeting humanity’s needs without harming future generations

Answer 10

Sustainability

Question 11

The sustainable firm pursues 3 types of interests:

Answer 11

• Economic interest
• Social Interest
• Environmental interest

Question 12

the firm’s economic impact on the localities where it does business, such as job creation, wages, and public works

Answer 12

Economic Interests in Sustainability

Question 13

how the firm performs relative to social justice, such as avoiding the use of child labor, sweatshops, and providing employee benefits

Answer 13

Social interests in Sustainability

Question 14

extent of the firm’s impact on and harm to the natural environment

Answer 14

Environmental interest in Sustainability

Question 15

Which of the following is NOT an example of a benefit of corporate social responsibility?
A.help recruit and retain good employees
B.help differentiate the firm and enhance its brands
C.help cut costs, such as minimizing waste in operations
D.help the firm avoid legal actions by local government authorities
E.all of the above are examples

Answer 15

E.all of the above are examples

Question 16

An integration of the business environments in which firms currently operate

Answer 16

Global Corporate Culture

Question 17

an integration of the business environments in which firms currently operate

Answer 17

global corporate culture

Question 18

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

Answer 18

Moral Universalism:

Question 19

Applying the morality used in home country—regardless of the host country’s system of ethics

Answer 19

Ethnocentric Approach:

Question 20

Adopting the local moral code of the country in which a firm is operating

Answer 20

Ethical Relativism:

Question 21

can result in conflicts between home and host country values

Answer 21

Ethical Relativism:

Question 22

bans forced labor, abuse, and discrimination, requires firms to provide a healthy and safe work environment, and to pay at least the local prevailing minimum wage

Answer 22

Sweatshop Code of Conduct:

Question 23

bans forced and child labor, excessive overtime, includes environmental requirements, and requires audits of overseas suppliers

Answer 23

Electronic Industry Code of Conduct

Question 24

he attraction of doing business in China

Answer 24

• Cheap labor cost
• A large expanding market
• A growing economy with growth in higher skilled jobs and services

Question 25

Continuing concerns:about doing business in china

Answer 25

- Uncertain legal environment | - Protecting Intellectual Property

Question 26

Human Rights and Freedom of Information Challenges of doing business in China

Answer 26

- Potentially rampant violation of worker’s rights - Repression of free speech - Difficulty monitoring and correcting human rights violations - Government crackdown on “propaganda”

Question 27

found widespread violations of workers rights in many factories: violations include making workers work 60 hours per week, forced overtime, and disregard of minimum wage and child labor laws

Answer 27

NIke

Question 28

vary based on the cultural value system in each country or society

Answer 28

Ethics

Question 29

are moral principles and values that govern the behavior of people, firms, and governments

Answer 29

Ethics

Question 30

is the abuse of power to achieve illegitimate personal gain

Answer 30

Corruption

Question 31

Is common and can take the form of grease payments, small inducements intended to expedite decisions and transactions or gain favors

Answer 31

Bribery

Question 32

INappropriate Corporate Conduct Abroad

Answer 32

- Falsify or misrepresent contracts or official documents - Offer or accept bribes, kickbacks, or inappropriate gifts - Tolerate sweatshop conditions or abuse employees - Use false advertising or other deceptive marketing - Engage in deceptive or discriminatory pricing - Deceive or abuse intermediaries in the channe - Undertake activities that harm the natural environment

Question 33

Which of the following is NOT an example of inappropriate corporate conduct? A.falsify or misrepresent contracts or official documents B.offer or accept bribes, kickbacks, or inappropriate gifts C.tolerate sweatshop conditions or abuse employees D.engage in deceptive or discriminatory pricing E.all of the above are examples

Answer 33

E.all of the above are examples

Question 34

Refers to ideas or works created by individuals or firms and includes a variety of proprietary, intangible assets, such as: discoveries and inventions; artistic, musical, and literary works; and words, phrases, symbols, and designs

Answer 34

Intellectual Property

Question 35

are the legal claim through which proprietary assets are protected from unauthorized use by other parties via trademarks, copyrights, and patents

Answer 35

Intellectual Property Rights