QUESTION An organizational culture that requires all decisions to be purely economic allows unethical behavior to flourish and persist. Indicate whether the statement is true or false. ANSWER TRUE A cause of unethical behavior in businesses is an organizational culture that deemphasizes business ethics, reducing all decisions to the purely economic.
QUESTION The internal stakeholders of a company do not have an exchange relationship with the company. Indicate whether the statement is true or false. ANSWER FALSE All stakeholders are in an exchange relationship with the company. Each stakeholder group supplies the organization with important resources (or contributions), and in exchange each expects its interests […]
QUESTION Enterprises headquartered in a country which scores high on masculinity and power distance measures are more likely to behave ethically than enterprises headquartered in a culture where individualism and uncertainty avoidance are strong. Indicate whether the statement is true or false. ANSWER FALSE Using Hofstede’s dimensions of social culture, it was found that […]
QUESTION The first step in an ethical algorithm is to identify those common resources that are not owned by anyone in particular but are used by everybody. Indicate whether the statement is true or false. ANSWER FALSE In the first step of an ethical algorithm, businesspeople should identify which stakeholders a decision would affect […]
QUESTION The power of a multinational corporation is constrained not only by laws and regulations, but also by the discipline of the market and the competitive process. Indicate whether the statement is true or false. ANSWER TRUE Multinational corporations have power that comes from their control over resources and their ability to move production […]
QUESTION Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from employees. Indicate whether the statement is true or false. ANSWER TRUE Ethics officers act as an internal ombudsperson with responsibility for handling confidential inquiries from employees, investigating complaints from employees or others, reporting findings, and making recommendations for change.
QUESTION According to Milton Friedman, businesses should undertake social expenditures beyond those mandated by the law and required for the efficient running of a business. Indicate whether the statement is true or false. ANSWER FALSE Milton Friedman explicitly rejects the idea that businesses should undertake social expenditures beyond those mandated by the law and […]
QUESTION The righteous moralist’s approach to ethics is typically associated with managers from developed nations. Indicate whether the statement is true or false. ANSWER TRUE A righteous moralist claims that a multinational’s home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. This approach is typically associated with managers […]
QUESTION According to Friedman’s doctrine, the only social responsibility of business is to increase profits, so long as the company stays within the rules of law. Indicate whether the statement is true or false. ANSWER TRUE Milton Friedman’s basic position is that the only social responsibility of business is to increase profits, so long […]
QUESTION According to the concept of cultural relativism, a firm, while operating in any host country, should adopt the ethics of the culture that is predominant in its home country Indicate whether the statement is true or false. ANSWER FALSE Cultural relativism believes that ethics are nothing more than the reflection of a culture—all […]
