Q&A Hero

Q: The continued growth of technology will present new situations for ethical dilemmas, thus, a company's code of ethics needs to be rewritten on a regular basis.

Q: A company should avoid communicating its ethics policy to external stakeholders.

Q: Every company's ethics policy should state that awarding prizes to employees for good ethical behavior should be avoided.

Q: Employees in all job functions need to be familiar with the company's code of ethics.

Q: The chief responsibility of an ethics officer is to assess an organization's corporate image amongst its competitors.

Q: The role of an ethics officer is to enforce the code of ethics and provide support to any employees who witness unethical behavior.

Q: Since the code of ethics cannot capture every possible example, each department of an organization should apply the code to examples that arise in its area.

Q: It is important to establish an extensive training program to support the published code of ethics of a company.

Q: Employees and stakeholders of a company are required to follow their company's code of ethics strictly.

Q: The real test of any company's ethics policy comes when one of its employees is presented with a potentially unethical situation.

Q: A code of ethics is a guide that covers every possible event for employees.

Q: The Institute of Business Ethics suggests that an organization should get an endorsement from the chairperson and the board while creating a code of ethics from scratch.

Q: According to the Institute of Business Ethics, an organization should create an original model and not pick a well-tested model while creating a code of ethics.

Q: There is no perfect model for a code of ethics.

Q: A well-written code of ethics can establish a detailed guide to acceptable behavior.

Q: The audience for the code of ethics of an organization includes only its employees.

Q: A well-written code of ethics can capture what an organization understands ethical behavior to mean.

Q: In an organization, the commitment to ethical behavior must be documented in a code of ethics, so that everyone begins from the same starting point.

Q: Celebrating and rewarding the ethical behavior demonstrated by an organization's employees is the last stage in making ethical behavior sustainable for an organization.

Q: Supporting the code of ethics with extensive training for every member of the organization is the first stage in making ethical behavior sustainable for an organization.

Q: Hiring an ethics officer is the first stage in the process of making ethical behavior sustainable.

Q: In order to make ethical behavior sustainable, an organization requires commitment solely from the top management.

Q: A company's commitment to ethical behavior impacts only the lower level of management and those departments that deal directly with customers.

Q: Sustainable ethics in a culture are those that persist within the operational policies of the organization long after the latest public scandal or the latest management buzzword.

Q: Typical markets represent federal, state, and local officials who simplify and reduce rules and regulations, thus discouraging firms from hiring more people and paying more taxes.

Q: Impatient stockholders wanting the stock price to rise each and every quarter are representative of most markets.

Q: Demanding customers who want new and better products and services at lower prices represent a typical market.

Q: Chapter 10

Q: Discuss organizational integrity.

Q: Differentiate between reactive and proactive ethical policies.

Q: Discuss what each department of an organization can do to support its published code of ethics.

Q: What are the functions of a well-written code of ethics?

Q: Explain the stages for making ethical behavior sustainable for an organization.

Q: _____ describes the characteristic of publicly committing to the highest level of professional standards and then sticking to that commitment.

Q: When a company develops a clear sense of what it stands for as an ethical organization, it develops _____.

Q: Policies that result when organizations are driven by events and/or a fear of future events are called _____.

Q: _____ is a characteristic of an organization that maintains open and honest communications with all its stakeholders.

Q: A company must share its ethics policy with all of its _____both inside and outside the company.

Q: A _____ is a senior executive responsible for monitoring an organization's ethical performance both internally and externally.

Q: The hiring of a _____ represents a formal commitment to the management and leadership of an organization's ethics program.

Q: The audience for the code of ethics would be every _____ of the organization.

Q: A well-written _____ establishes a detailed guide to acceptable behavior in an organization.

Q: The first stage in the process of making ethical behavior sustainable for an organization is to establish a _____.

Q: Making ethical behavior _____ requires the involvement of every member of the organization in committing to a formal structure to support an ongoing process of monitoring and enforcement.

Q: Summarize the 10 key principles of the UN Global Compact that address its four areas of concern: Human Rights, Labor Standards, Environment, and Anticorruption.

Q: Identify the reasons for criticizing Richard DeGeorge's guidelines for multinational corporations doing business abroad.

Q: What are the advantages and disadvantages of globalization?

Q: How has globalization affected the economic market?

Q: Differentiate between less-developed and developed nations.

Q: _____ instrumental contract argues that corporations carry no moral obligation to the countries in which they operate beyond abiding by their laws.

Q: The _____ calls on enterprises to respect both the letter and spirit of tax laws and to cooperate with tax authorities.

Q: The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises represent a more _____ approach to the same issues featured in the UN's nongovernmental Global Compact.

Q: The _____ represents a more governmental approach to the same issues featured in the UN's nongovernmental Global Compact.

Q: Originally adopted as part of the larger Declaration on International Investments and Multinational Enterprises, the _____ promote principles and standards of behavior for corporations.

Q: The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were originally adopted as part of the _____.

Q: With over 2,000 companies in more than 80 countries making a voluntary commitment to this corporate citizenship initiative, the _____ is widely recognized as the world's largest initiative of its kind.

Q: The _____ relies on public accountability, transparency, and the enlightened self-interest of companies, labor, and civil society to initiate and share substantive action in pursuing its principles.

Q: The UN Global Compact is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four main areas of concern: the _____, anticorruption, the welfare of workers around the world, and global human rights.

Q: The _____ is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four main areas of concern: the environment, anticorruption, the welfare of workers around the world, and global human rights.

Q: American companies can be held accountable for their ethical performance in the United States by the _____.

Q: The European Economic Community is an example of a _____ of countries that work together to leverage their size and geographical advantage to take bigger roles on the global economic stage.

Q: _____ refers to the gray area in which ethical principles are defined according to the traditions of society, personal opinions, and the circumstances of the present moment.

Q: Multinational corporations are also known as _____ corporations.

Q: _____ have overtaken national markets, leading to a global marketplace, because of globalization.

Q: _____ refers to the expansion of international trade to a point where national markets are overtaken by regional trade blocs, leading eventually to a global marketplace.

Q: A _____ corporation is one that sells products and services across multiple national borders.

Q: _____ refers to ethical choices that offer the greatest good for the greatest number of people.

Q: A _____ nation is one that lacks the economic, social, and technological infrastructure of a developed nation.

Q: A _____ nation is one that enjoys a high standard of living as measured by economic, social, and technological criteria.

Q: Fred, a manager in a multinational corporation, is a supporter of Milton Friedman's instrumental contract. Fred believes that corporations: A. should actively work to protect the environment of the countries in which they operate. B. must run welfare programs for the people of the countries in which they operate. C. need to cease working in less-developed countries. D. carry no moral obligation to the countries in which they operate.

Q: Which of the following is true of the concept of global ethics? A. It is no longer relevant today. B. It has little backing from the United Nations. C. It is a highly complex subject. D. It does not involve less-developed nations.

Q: The Organization for Economic Cooperation and Development (OECD) Guidelines believe that less-developed countries should: A. not be considered a lucrative market. B. allow their natural resources to be tapped into freely. C. benefit from a corporation's advanced technology. D. avoid trading with developed nations.

Q: Which of the following is recommended by the Organization for Economic Cooperation and Development (OECD) Guidelines? A. Companies should contribute to the innovative capacities of host countries. B. Companies should encourage developing nations to adopt the principles of socialism. C. Companies should uphold the effective recognition of the right to collective bargaining. D. Companies should avoid involving themselves in the environmental issues of other countries.

Q: Which of the following principles and standards of behavior is advocated by both the Organization for Economic Cooperation and Development (OECD) and the UN Global Compact? A. Businesses should observe only the customs of their own country at all times. B. Businesses should not involve themselves in the environmental issues of other countries. C. Businesses should utilize the natural resources of their host country to the fullest. D. Businesses should abolish child labor, combat bribery, and fight corruption.

Q: The Organization for Economic Cooperation and Development (OECD) guidelines recommend: A. actions that consider the greatest good for developed countries. B. disclosure on all material matters regarding the corporation. C. against investing money and effort in developed countries. D. against investing money and effort in less-developed countries.

Q: Which of the following is true of the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises? A. They act in opposition to the UN Global Compact. B. They apply solely to local and regional trade blocs. C. They carry no criminal or civil enforcement. D. They are legally binding for American companies.

Q: Which of the following is a difference between the UN Global Compact and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises? A. Unlike the UN Global Compact, the OECD guidelines uses a more governmental approach for the issues featured in the UN's nongovernmental Global Compact. B. Unlike the OECD guidelines, the UN Global Compact ignores most areas of environmental concern. C. Unlike the UN Global Compact, the OECD guidelines carry criminal or civil enforcement and are regarded as legally binding. D. Unlike the OECD guidelines, the UN Global Compact applies only to companies operating in their own country.

Q: The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were initially a part of the _____. A. Public Company Accounting Oversight Board B. International Bureau of Economic Analysis C. Dodd-Frank Wall Street Reform and Consumer Protection Act D. Declaration on International Investments and Multinational Enterprises

Q: The UN Global Compact states that businesses should: A. support a precautionary approach to environmental challenges. B. avoid involvement in the environmental concerns of other nations. C. avoid selling their products to the people of less-developed nations. D. support the employment of children in sweatshop production facilities.

Q: The UN Global Compact focuses on: A. the welfare of workers around the world. B. the profitability of small businesses. C. the inheritance rights of women. D. the fluctuation of currency standards.