Unit 2 Questions

Question 1

What are the factors that influence ethical behaviour. Provide Examples

Answer 1

• Ethics are our code of moral principles
• Internal environment & the organization: supervisory behaviour, poor group norms & behaviour, policy statements & written rules
  -External environment: government laws & regulations, societal norms & values, competitive climate in an industry
  -situational context
  -personal values: family influences, religious values, personal & financial needs

Question 2

Discuss in detail Kohlberg’s Stages of moral development

Answer 2

Pre-conventional (self-centered behaviour)
- 1:Avoid harm or punishment
- 2: Make deals for personal gain
Conventional (social-centered behaviour)
- 3: Act consistently with peers and others
- 4: follow rules, meet obligations
Post-conventional (principle-centered behaviour)
- 5: Live up to societal expectations
- 6: Act according to internal principles

Question 3

What is the difference between the classical view and socioeconomic view on
social responsibility?

Answer 3

• Classic view: a managers only responsibility is to maximize profits
• Socioeconomic view: managers must be concerned for the broader social welfare, nor just profits
• concerned with issues in society whether social, legal or political

Question 4

Discuss the 4 different strategies of corporate social responsibility. Provide
examples of each strategy in action.

Answer 4

• Proactive: Take leadership in social initiatives”, meet economic, legal, ethical and discretionary responsibilities.
• Accommodative: do minimum ethical required, meet economic, legal and ethical responsibilities.
• Defensive: do minimum legally required, economic & legal responsibilities
• Obstructionist: Fight social demands, meet economic responsibilities

Question 5

Why do businesses go global?

Answer 5

• profits
• customers
• suppliers
• capital
• labour

Question 6

Discuss the different market entry strategies in detail. Provide a scenario where
you would use each of the strategies.

Answer 6

􏰀 Global sourcing: the process of purchasing materials or services around the
world for local use
􏰀 Exporting: selling locally made products in foreign markets
􏰀 Importing: buying foreign-made products and selling them domestically
􏰀 Licensing agreement: one firm pays fee for rights to make or sell another company’s products
􏰀 Franchising: a fee is paid for rights to use another firm’s name and operating methods

Question 7

What are the ethical issues that Multinational Corporations face?

Answer 7

• Corruption — illegal practices that further one’s business
interests.
• Sweatshops — employing workers at low wages for long hours and in poor working conditions.
• Child labour — full-time employment of children for work otherwise done by adults.

Question 8

What is the USMCA?

Answer 8

􏰀 Renegotiation of NAFTA agreement
􏰀 Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks
􏰀 •Benefiting American farmers, ranchers, and agribusinesses by modernizing and strengthening food and agriculture trade in North America.

Question 9

What is the European Union?

Answer 9

The treaty was designed to enhance European political and economic integration by creating a single currency (the euro) formed in November 1, 1993.

Question 10

What are the benefits and disadvantages that Multinational Corporations face?

Answer 10

Benifits
• Increased employment opportunities
• new Technology transfers
• Introduction of new industries
Disadvantages
• Excessive profits
• Interference with local government
• Disrespect for local customs