chapter 15: globalization and society

Question 1

companies must satisfy the demands of

SECSS

Answer 1

• shareholders
• employees
• customers
• suppliers
• society

Question 2

name the three levels of moral development

Answer 2

• preconventional
• conventional
• post conventional

Question 3

what is the teleological approach

Answer 3

decisions are based on the consequences of tha action

Question 4

what is utilitarianism

Answer 4

an action is right if it produces the greatest amount of good

Question 5

what is the deontological approach

Answer 5

moral judgemetns are made and moral reasoning occurs independent of consequences

Question 6

why do companies care about ethical behaviour

Answer 6

1. to develop competitive advantage

2. to avoid being perceived as irresponsible

Question 7

relativism vs normativism

Answer 7

• Relativism: ethical truths depend on the groups holding them
• Normativism: there are universal standards of behaviour

Question 8

legal justification: pro and con

Answer 8

pro: the law is a good basis for the ethical behaviour beacause it embodies local cultural values
con: legal justification for ethical behaviour may not be sufficient because not everything that is unethical is illegal

Question 9

what are bribes and why do they take place

Answer 9

bribery of public officials takes place to obtain government contracts or to get officials to do what they should be doing anyways

bribes are payments or promises to pay cash or anything of value

Question 10

what’s being done about corruption

Answer 10

• National initiative: the USA
  
  • The foreign corrupt practices act is U.S legislation that makes bribery illegal. It applies to domestic or foreign operations and to company employees as well as their agents overseas
• Sarbanes-Oxley legislation in the USA is helpful in combating corruption through more effective corporate governance, financial disclosure, and public accounting oversight

Question 11

what is sustainability

Answer 11

• Sustainability involves meeting the needs of the present without compromising the ability of future generations to meet their own needs while considering what is best for the people and the environment
• It is no longer just good business practice. New businesses are emerging that are combining the idea of environmental responsibility and profitability

Question 12

ethical dilemmas of labor conditions

Answer 12

• Major labor issues that MNEs get involved in through FDI or purchasing from independent manufacturers in developing countries are fair wages, child labor, working conditions, working hours, and freedom of association

Question 13

companies need to act responsibly because unethical and irresponsible behavior:

Answer 13

• Could result in legal sanctions
• Could result in consumer boycotts
• Could lower employee morale
• Could cost sales because of bad publicity

Question 14

codes of conduct involve four dimensions

Answer 14

• Setting a global policy that must be complied with wherever the company operates
• Communicating the code to employees, suppliers, and subcontractors
• Ensuring that policies are carried out
• Reporting results to external stakeholders