Practical 9 +10

Question 1

Fraud is

Answer 1

a very serious variant of unethical behaviour

Question 2

How to handle fraud:

Answer 2

• Acting promptly as soon as fraudulent activity is detected
  (Do not try to cover up)
• Comunicate effectively and transparently with stakeholders
• Identify individuals directly responsible and communicate
  with authorities
• Review and improve existing oversight / control mechanisms and evaluate the
  responsabilities of middle/senior management (were signs ignored?)

Question 3

Organizations
where hierarchy plays an
important role are more prone to
attributing responsabilities to the
Top.
True or False

Answer 3

True

Question 4

Normativism:

Answer 4

Universal values accepted across all countries, cultures and regions

Question 5

Relativism:

Answer 5

adaptation (“in
Rome, do as Romans”)

Question 6

Being illegal brings fines but
being unethical and/or not
social responsible does what?

Answer 6

damages reputation.

Question 7

Best practices for acting ethical

Answer 7

• Code of Conduct
• Recruitment (hire people with similar values/principles)
• Corporate certification and reporting
• Individual behaviour in a given situation
• Whistle blower policy
• Ethics Commission
• limit grey areas
• Top leads with good example

Question 8

Ethical MNE:

Answer 8

VW
adopts the right business conduct,
with positive impact on reputation.

Question 9

Socially Responsible MNE:

Answer 9

Patagonia
integrates social and environmental concerns in business operations (voluntary), aiming to create win-win solution for the company and stakeholders.

Question 10

Philantropical MNE:

Answer 10

Bill& Melinda gates foundation
promotes wellness of others with no direct link with business operations (eg. donations for humanitarian causes).

Question 11

Risk management approach

Answer 11

Avoid bad reputation
Perception of unethical behaviour can “kill” corporate reputation and/or a brand

Question 12

Sustainability approach

Answer 12

Build a source of competitive advantage Environment friendly and socially responsible businesses can make consumers opt for the Brand

Question 13

Can fast fashion brands adopt CRS in their business models?

Answer 13

yes, they are

Question 14

UN Sustainable Development Goals provide….

Answer 14

”.. a shared blueprint for peace and prosperity for people and the planet, now and into the future.”

Question 15

17 Sustainable Development Goals Objectives:

Answer 15

• End poverty
• Improve health and education
• Reduce inequality
• Promote economic growth
• Tackle climate change
• Preserve oceans and forests

Question 16

ESG- Environmental

Answer 16

“Conservation of the natural
world”

Question 17

ESG- Social

Answer 17

“Consideration of people & relationships”

Question 18

ESG- Governance

Answer 18

“Standards for running a
company”

Question 19

ESG- Social factors

Answer 19

• Consumer satisfaction
• Data protection
• gender and diversity
• Community relations
• Human rights
• Labour standards

Question 20

ESG- Governance factors

Answer 20

• Board composition
• Audit committe structure
• Bribery and corruption
• Executive compensation
• Lobbying
• Political contributions
• Whistleblower schemes

Question 21

Why do companies engage in IB?

Answer 21

• sales expansion
• resource acquisition
• Risk reduction

Question 22

Social stratification:

Answer 22

etermines an individual’s class, status, and financial rewards within a culture.

Question 23

Ascribed group memberships:

Answer 23

based on gender, family, age, caste, ethnic, racial or national origin

Question 24

Acquired group memberships:

Answer 24

based on religion, political affiliation, professional association

Question 25

Fatalism

Answer 25

Belief in that every event in life is inevitable, leads to acceptance of a cause-and-effect relationship between work and reward.

Question 26

Self-determination

Answer 26

leads to a willingness to work hard to achieve goals and take responsibility for performance.

Question 27

Legal Issues:

Answer 27

• Operational concerns: tax, labor, administrative
• Strategic concerns: product safety and liability; marketplace behavior; product origin; legal jurisdiction; arbitration
• Intellectual property rights

Question 28

Business Ethics definition:

Answer 28

accepted principles of right or wrong governing the conduct of businesspeople.