Unit 2 Definitions

Question 1

Corruption

Answer 1

illegal practices that further one’s business
interests.

Question 2

Child Labour

Answer 2

full-time employment of children for work otherwise done by adults.

Question 3

Outsourcing

Answer 3

obtain (good/service) from an outside or foreign supplier, especially in place of an internal source

Question 4

Cultural Relativism

Answer 4

Ethical behaviour is always determined by cultural context. No cultures ethics are superior

Question 5

Utilitarian view of ethics

Answer 5

greatest good to the greatest number of people.

Question 6

Moral-Rights view of ethics

Answer 6

respects and protects the fundamental rights of all
people

Question 7

Internal Environment

Answer 7

Supervisory behaviour, peer group norms and behaviour, and policy statements and written rules.

Question 8

Ethical Dilemma

Answer 8

An ethical dilemma describes a conflict between two courses of action. There is a conflict between values or principles.

Question 9

Social Entrepreneurship

Answer 9

a unique form of entrepreneurship that seeks novel ways to
solve pressing social problems

Question 10

Globalization

Answer 10

• The process of growing interdependence of these components in the global economy
• Expansion of business on an international scale

Question 11

Protectionism

Answer 11

Practice of shielding country’s domestic industries from foreign competition by taxing imports

Question 12

Multinational Corporation

Answer 12

extensive business operations in more than one foreign country ex walmart

Question 13

Culture Shock

Answer 13

Confusion and discomfort a person experiences in an
unfamiliar culture.

Question 14

Polycentric

Answer 14

an attitude that advocates adapting products, strategies, and management practices to each individual market or host country.

Question 15

Sweatshops

Answer 15

A factory that violates labour laws usually 2 or more

Question 16

Ethics

Answer 16

Code of moral principles.
Set standards of “good” or “bad” or “right” or “wrong” in one’s conduct.

Question 17

Ethical Behaviour

Answer 17

What is accepted as good and right in the context of the governing moral code.

Question 18

Cultural Universalism

Answer 18

behaviour unacceptable in one’s home environment should not be acceptable anywhere else.

Question 19

Individualism view of ethics

Answer 19

primary commitment is to one’s long-term
self-interests

Question 20

Justice view of ethics

Answer 20

fair and impartial treatment of people according
to legal rules and standards.
• Procedural justice – policies and rules fairly applied • Distributive justice – equal treatment for all people
• Interactional justice – people treated with dignity and respect

Question 21

External Environment

Answer 21

Government laws and regulations, societal norms and values, and competitive climate in an industry.

Question 22

Whistleblower

Answer 22

• Expose misdeeds of others to:
•Protect against wasteful, harmful, or illegal acts • Laws protecting whistleblowers vary

Question 23

Corporate Social Responsibility

Answer 23

• Classical view—Management’s only responsibility is to maximize profits.
• Socioeconomic view—Management must be concerned for the broader social welfare, not just profits.

Question 24

Global Management

Answer 24

management in organizations with business interest in more than one country

Question 25

Political risk

Answer 25

the potential loss in value of a foreign investment due to instability and changes in host country

Question 26

Culture

Answer 26

The shared set of beliefs, values, and patterns of behaviour
common to a group of people.

Question 27

Ethnocentrism

Answer 27

Tendency to consider one’s own culture as superior to others.

Question 28

Geocentric

Answer 28

a global view that emphasizes the usage of the best approach and people from around the world.