File: ch11. rtf, Chapter 11, Managing for Ethics and Social Responsibility in a Global Environment



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File: ch11.rtf, Chapter 11, Managing for Ethics and Social Responsibility in a Global Environment

True/False


1. Spouses of high level expatriate managers generally serve in a corporate “ambassador” role.


Ans: True

Response: See page 400.

Difficulty: Easy

2. Fluency in a foreign language assists with verbal communication, but helps little in understanding the culture.


Ans: False

Response: See page 401.

Difficulty: Easy

3. Visitors to another culture will notice things that are important at home but that may not be important in the target culture.


Ans: True

Response: See page 404.

Difficulty: Easy

4. If we understand how people think and behave in their native environment, we will understand how a particular group will behave in relation to cultural outsiders.


Ans: False

Response: See page 404.

Difficulty: Medium
5. The term cultural intelligence (CQ) has been used to describe an individual’s ability to be effective in cross-cultural situations.
Ans.: True

Response: See page 400

Difficulty: Medium

6. Ethical issues are universal and do not vary from culture to culture.


Ans: False

Response: See page 411.

Difficulty: Easy

7. Although bribes are an accepted part of commercial transactions in many Asian, African, Latin American, and Middle Eastern countries, it is usually against the law in these very same countries.


Ans: True

Response: See page 407.

Difficulty: Medium

8. The Golden Rule (“do unto others as you would have them do unto you”) appears in the teachings of every major world religion.


Ans: True

Response: See page 412.

Difficulty: Easy

9. Justice and fairness are universal human values. Therefore, specific beliefs and preferences about what is a fair allocation are also universally interdependent.


Ans: False

Response: See page 412.

Difficulty: Medium

10. A country’s sociopolitical environment increases the number of ethical questions with a company must deal.


Ans: True

Response: See page 418.

Difficulty: Medium

11. Many overseas assignments end early and unsuccessfully because the expatriate manager’s and the manager’s family’s inability to adjust to the foreign work environment.


Ans.: True

Response: See page 400

Difficulty: Easy

12. Workers in a culture of low power distance may be more willing to question the boss’s authority or even blow the whistle on an unethical manager.


Ans.: True

Response: See page 403

Difficulty: Medium

13. Behavior is difficult to predict because people adapt their behaviors to what they believe others expect of them.


Ans.: True

Response: See page 404

Difficulty: Easy

14. Successful international business persons are achievers with years of experience in US multinationals.


Ans.: False

Response: See page 404. Characteristics of successful international business persons are open, flexible, and tolerant of ambiguity.

Difficulty: Difficult

15. If a company official is abducted by Somali pirates and held for ransom, the Foreign Corrupt Practices act (FCPA) calls for the company to forego negotiating for the employee’s release and to not pay a ransom.


Ans. False

Response: See page 408

Difficulty: Difficult

16. The additional costs of corruption to international projects is less than 5% on average making it practical to include corruption as a cost of doing business.


Ans. False

Response: See page 409

Difficulty: Medium

17. In its Bribe Payers Index (BPI) of 2008, Transparency International (TI) cited Russia, China, Mexico, and India for having particularly high levels of perceived bribery.


Ans. False

Response: See page 411

Difficulty: Difficult

18. Because of the cultural differences in Asia and Latin America, “help lines” are more effective when they are oriented more toward providing guidance rather than reporting misconduct.


Ans. True

Response: See page 416

Difficulty: Difficult

19. More and more consumers say that corporate citizenship influences their buying habits.


Ans.: True

Response: See page 419

Difficulty: Easy

20. According to researchers at Harvard, in developing their firm’s codes of conduct, multinational firms would be wise to stick with the eight principles identified by their research as the core of global standards of conduct and to not deviate or supplement the principles with values unique to their respective firms.


Ans.: False

Response: See page 428-429

Difficulty: Medium

Multiple Choices


21. Civil society refers to:


a) Countries with a certain type of governance structure.

b) Groups interested in business ethics (such as the media, not-for-profit organizations, academic institutions, and religious and political groups).

c) Government agencies in foreign countries.

d) Countries that share the same culture, customs, and norms.


Ans: b

Response: See page 399.

Difficulty: Medium

22. Which of the following is false?


a) Organizations are affected by the expatriate manager’s ability to adjust to the new setting.

b) Organizations are not affected by the expatriate family’s ability to adjust to the new setting.

c) Foreign language proficiency is more important for non-English speakers in English-speaking countries.

d) Cross-cultural training can help an expatriate manager better adjust to the new culture.


Ans: b

Response: See page 400.

Difficulty: Easy

23. Which of the following is false?


a) Culture can be defined as “collective mental programming.”

b) Culture represents different patterns of believing.

c) Culture is used to interpret the world.

d) Cultures new to an individual will impact his/her interpretation of experience.


Ans: d

Response: See page 402.

Difficulty: Medium

24. ___________ defines themselves in terms of their group memberships and their contributions to the success of those groups.


a) Individualists

b) Collectivists

c) High power distance

d) Low power distance


Ans: b

Response: See page 402.

Difficulty: Easy

25. ____________ reflects acceptance of inequality and respect for social status or class boundaries.


a) Individualism

b) Collectivism

c) High power distance

d) Low power distance


Ans: c

Response: See page 403.

Difficulty: Easy

26. Which of the following is an example of a high power distance country?


a) India

b) United States

c) Israel

d) None of the above


Ans: a

Response: See page 403.

Difficulty: Medium

27. When dealing with an individual from a different culture,


a) Negotiators generally adapt their negotiation behavior to that of the negotiation partner.

b) American negotiators are the most flexible to their negotiation partner’s behavior.

c) Canadian and Japanese negotiators are the least flexible to their negotiation partner’s behavior.

d) Negotiators generally do not adapt their negotiation behavior to that of the negotiation partner.


Ans: a

Response: See pages 406-407.

Difficulty: Medium

28. The “psychic distance paradox” causes performance failures because:


a) Negotiators who are working in a similar culture to their own perceive the two cultures as being significantly different.

b) When doing business in cultures that are perceived to be similar, managers prepare less and do not realize the cultures are actually quite different.

c) Expatriate managers are unable to connect with the local culture after moving from a similar culture.

d) Managers do not understand the culture’s behavior despite language proficiency.


Ans: b

Response: See page 405.

Difficulty: Medium

29. Which of the following is true?


a) Collectivists tend to prefer mediation because it involves compromise.

b) Collectivists tend to prefer adjudication because it is perceived to be fairer.

c) Collectivists tend to prefer direct manifestations of conflict.

d) Collectivists tend to avoid psychological warfare.


Ans: a

Response: See page 406.

Difficulty: Medium

30. Which of the following is legal according to the Foreign Corrupt Practices Act (FCPA) passed in 1977?


a) Payments to high ranking government officials

b) Grease payments to lower-level government officials

c) Bribes to political parties

d) Kickbacks to win overseas contracts

e) None of the above
Ans: b

Response: See page 407.

Difficulty: Easy

31. According to the 2009 Corruption Perception Index (CPI), which country would be the least corrupt?


a) United States

b) Haiti


c) Bangladesh

d) New Zealand

Ans: d

Response: See page 410.



Difficulty: Easy

32. “When in Rome, do as Romans do” is an example of:


a) Ethical imperialism

b) Ethical relativism

c) Cultural imperialism

d) Cultural relativism


Ans: d

Response: See page 413.

Difficulty: Medium

33. ____________ assumes absolute truths that would require exactly the same standard and behavior in every culture.


a) Ethical imperialism

b) Ethical relativism

c) Cultural imperialism

d) Cultural relativism


Ans: a

Response: See page 413.

Difficulty: Easy

34. of the following statements about the Organization for Economic Cooperation and Development (OECD) Anti-Bribery Convention (the “Convention”) which are untrue.




  1. Participating countries include countries in Western Europe and North America

  2. The Convention requires signatories to make it a crime to bribe foreign public officials

  3. The Convention includes the application of criminal penalties

  4. The Convention bans gifts to political parties

  5. The Convention outlaws tax deductibility for bribes

  6. All are statements are true

  7. Statements d and e are untrue

Ans.: g


Response: See page 426

Difficulty: Difficult


35. Social Accountability International developed a standard called Social Accountability 8000 (SA 8000) to help organizations in workplace conditions including but not limited to




  1. Child labor

  2. Forced labor

  3. Health and safety

  4. Discrimination

  5. All of the above

Ans.: e


Response: See page 423

Difficulty: Medium


Short Answer


36. Reebok Corporation has made human rights a hallmark of its corporate strategy, culture, and identity. Briefly describe at least two of the ways in which the company addresses international human rights issues.


Ans: For example, students should be able to describe Reebok’s policy for children labor (i.e. children are still paid but go to school instead), its membership to the Fair Labor Association (i.e. provides external auditors), or its commitment to help factories that are not meeting Reebok’s Code requirements come up to standards.

Response: See page 423.



Difficulty: Medium



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