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John Rawls argues that inequality in basic social goods is to be allowed only if:


A) such inequalities benefit everyone.
B) a country adopts a totalitarian government system.
C) a nation opposes market-based economies and free trade.
D) a country ranks high on the Human Development Index.
E) a country is facing a balance of payment crisis.

F) B) and E)
G) B) and D)

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Discuss any two straw men approaches to business ethics.

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Straw men approaches to business ethics ...

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Ten years after he proposed what came to be known as Sullivan's principles,Leon Sullivan concluded that his principles :


A) were the most ethical way of doing business in South Africa.
B) were not sufficient to ethically justify the existence of Western businesses in South Africa.
C) can be effective only when companies oppose democracy in South Africa.
D) had been extremely successful in combating the apartheid regime in South Africa.
E) would safeguard the citizens and businesses in South Africa from Western businesses.

F) B) and E)
G) D) and E)

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In business ethics,the term "_____" refers to a fair and equitable distribution of economic goods and services.


A) global commons
B) zero-level distribution
C) normal distribution
D) just distribution
E) global equity

F) C) and D)
G) A) and B)

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Justice theories primarily focus on:


A) minimizing the amount of political liberty permitted to each person.
B) the attainment of fair and equitable distribution of economic goods and services.
C) the attainment of maximum business profits.
D) protecting multinationals in case they violate fundamental human rights.
E) minimizing the amount of economic freedom permitted to each person.

F) All of the above
G) C) and D)

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Cadmium Technologies Inc.believes that the sole purpose of its existence is to maximize profits for its stockholders.The firm has often been criticized for not engaging in any social investments.However,the firm has been appreciated for abiding by the laws while earning profits.According to this information,which of the following approaches to ethics is most likely being adopted by Cadmium Technologies?


A) Friedman doctrine
B) Utilitarianism
C) Kantian ethics
D) Sullivan's principles
E) Naive immoralist

F) B) and D)
G) None of the above

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Ethical dilemmas are situations in which only one of the available alternatives seems ethically acceptable.

A) True
B) False

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Which of the following is most likely to be considered as unethical?


A) Galaxy Inc. ceased its operations in some developing nations on the account that those countries had low employment standards.
B) Unicorn Inc. sells its medicines at a lower price in less developed nations.
C) Capricorn Inc., a multinational company operating in developing nations, pays its labor 30 percent more than what the local competitors pay.
D) Centaur Inc. had to close down a production plant as the local management there had employed child labor.
E) Orion Inc. sends its products for recycling to a developing nation because the pollution control laws in its home country are much more strict than that in the developing nation.

F) A) and B)
G) B) and E)

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E

Which of the following is most likely to reduces the pressure on managers to violate their personal ethics?


A) Making managers work away from their ordinary social context and supporting culture
B) Keeping managers psychologically and geographically close to the parent company
C) Pressurizing managers to meet unrealistic business goals
D) Adopting an organizational culture which emphasizes that all decisions should be purely economic
E) Pressuring managers to shun the concept of noblesse oblige

F) All of the above
G) A) and B)

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Neon Synergy Inc.operates in three different countries,and is headed by a CEO who believes that best approach to ethics is cultural relativism.In this context,which of the following statements is most likely to be true regarding Neon Synergy?


A) All business units of Neon Synergy will adopt a common standard of ethics irrespective of their location.
B) Business decisions made by managers of Neon Synergy will be solely based on the goal of maximization of societal good.
C) The business units of Neon Synergy will be empowered to adopt the standards of ethics followed in their respective host nations.
D) Neon Synergy will extensively advocate the idea that universal notions of morality transcend different cultures.
E) Neon Synergy will follow its home-country standards of ethics at all its foreign locations.

F) D) and E)
G) C) and D)

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Kantian ethics assert that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation,that manager should not either.

A) True
B) False

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False

Article 23 of Universal Declaration of Human Rights implies that it is unethical to employ child labor in sweatshop settings and pay less than subsistence wages,even if that happens to be common practice in some countries.This is in contrast to:


A) Kantian ethics.
B) cultural relativism.
C) rights theories.
D) Marxism.
E) Justice theories.

F) A) and D)
G) B) and E)

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An organizational culture that requires all decisions to be purely economic allows unethical behavior to flourish and persist.

A) True
B) False

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The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions obliges member-states and other signatories to make the bribery of foreign public officials a criminal offense.

A) True
B) False

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Which of the following activities is most likely to be considered ethical?


A) Locating highly polluting production plants in those countries that have lax pollution control laws
B) Undertaking "social investments" in host countries
C) Paying bribes to government officials in developing countries to secure a contract
D) Polluting resources that are considered as global commons
E) Stringently following the laws of a country even if they violate basic human rights

F) None of the above
G) A) and C)

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B

Noblesse oblige is a French term referring to those multinationals that have unethically used their power for private gain.

A) True
B) False

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In a business setting,which of the following practices is most likely to be considered as unethical?


A) Allowing managers within a company who act in accordance with the rights theories
B) Promoting employees who engage in ethical behavior and penalizing those who do not
C) Hiring independent auditors to ensure that subcontractors used by the company are living up to it's code of conduct
D) Making sure that key business decisions make good economic sense irrespective of their social costs and risks
E) Informing prospective employees about the ethical climate in the organization

F) None of the above
G) C) and D)

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A righteous moralist claims that a while operating in a host country,a multinational company should follow the ethical standards of that host country.

A) True
B) False

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The first step in an ethical algorithm is to identify those common resources that are not owned by any one in particular but are used by everybody.

A) True
B) False

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How can companies strengthen the moral courage of employees?


A) By opposing whistle-blowing
B) By retaliating against employees who complain about unethical actions
C) By setting up ethics hotlines
D) By setting difficult goals for the employees
E) By sanctioning those who adopt the principles of veils of ignorance

F) D) and E)
G) All of the above

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