BIBM 101_5

Which of the following best describes ethics in business?

• Following the law exactly as written

• Principles of right and wrong guiding behavior

• Maximizing company profits

• Avoiding taxes

What is the difference between legal compliance and ethical compliance?

• There is no difference

• Legal compliance follows the law; ethical compliance follows moral standards which may go beyond the law

• Ethical compliance is cheaper to implement

• Legal compliance is optional

Which example best represents an ethical issue in international business?

• Deciding where to open a new store

• Using suppliers that employ child labor

• Choosing a new office paint color

• Hiring more marketing staff

Foxconn came under criticism for:

• High product prices

• Harsh working conditions and employee suicides

• Poor advertising campaigns

• Selling fake products

The Rana Plaza disaster in Bangladesh highlighted:

• Political corruption in Europe

• Shortages of raw materials

• Unsafe factory conditions in the garment industry

• Problems with e-commerce

Which is an example of a primary stakeholder of a business?

• The news media

• Employees

• Local NGOs

• Cultural associations

What does the stakeholder model emphasize?

• Considering the interests of all who are affected by the company

• Maximizing short-term profits only

• Reducing taxes for shareholders
  
  

• Supporting only government stakeholders

The idea behind the “triple bottom line” is that businesses should focus on:

• Profits only

• Minimizing costs and taxes

• Financial results, environmental impact, and social responsibility

• Maximizing shareholder value at any cost

Which approach to social responsibility does only what is legally required and nothing more?

• Obstructionist

• Defensive

• Accommodative

• Proactive

Which approach actively seeks opportunities to contribute to society?

• Obstructionist

• Defensive

• Accommodative

• Proactive