Chapter 2

Question 1

Benefits of CSR

Answer 1

Improved access to capitol

Secured license to operate

Revenue increase and cost and risk reduction

Improved brand value and reputation with customer attraction and retention

Improved employee recruitment, motivation, and retention

Question 2

Code of Morality and Ethics in Individual Countries

Moral universalism
Ethnocentric approach
Ethical relativism

Answer 2

Addressing a moral standard that is accepted by all cultures

Home country preference

Adopting whatever preference for morals that the firm is operating in for that country

Question 3

International Codes of Conduct

Answer 3

The Sweatshop Code of Conduct
The Electronic Industry Code of Conduct (EICC)

Social Accountability 8000 (SA 8000) 
Guidelines for MNCs developed by:   
International Chamber of Commerce
Organization for Economic Cooperation and  
 Development  

International Labor Organization
United Nations Commission on Transnational
Corporations

Question 4

To Bribe or NOT to Bribe?

Answer 4

Paying mail carriers in Mexico to prevent them from “losing” mail
Paying $100 to get a computer picked up from a rainy dock
Gift-giving to bond social ties

Question 5

Managing the Corruption

Answer 5

Foreign Corrupt Practices Act (FCPA)

Organization for Economic Cooperation and Development convention on bribery

Question 6

Three Tests of Ethical Corporate Actions

Answer 6

Is it legal
Can it be talked about in the long run
Can it be talked about

Question 7

Ethical Use of Technology

Answer 7

Varied expectations about the use of technological devices/programs as they intersect with people’s private lives

EU Directive on Data Protection

Google mapping service

Sony PlayStation Network

Question 8

The Risks of Interdependence

Nationalism

Protectionism

Governmentalism

Answer 8

National goals over foreign influences

Host country closed boarders to withstand competition

G uses policy to influence national interest opposed to market forces