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1.

One of the fortunate things about ethical issues in the global market is that they do not affect domestic operations.
a. True

b. False

ANSWER:

False

POINTS:

DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.l5.10.02


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

2. Involving two or more cultures in ethical issues makes their resolution much more difficult.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.02


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

3. Despite the poor economy, there is a backlash against globalization.


a. True

b. False

ANSWER:

True

POINTS:

DIFFICULTY:
LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:

Easy

KEYWORDS:

ETHC.CARR.l5.10.01
United States- BUSPROG Analytic
United States- Georgia- DISC: Environmental Influence- Environmental Influence
BLOOMS: KNOWLEDGE

4. Countries at earlier stages of economic development often do not have a legal or ethical infrastructure in place to
help protect their citizenry.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.01


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Environmental Influence- Environmental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE
5. MNCs based in the United States and in the European Union have played a key leadership role in world affairs.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.15.10.01


NATIONAL STANDARDS: United States- BUSPROG Analytic
United States -Georgia- DISC: Environmental Influence- Environmental Influence
STATE STANDARDS:
KEYWORDS:
BLOOMS: KNOWLEDGE
6. For an MNC to be perceived as legitimate in the eyes of a host country, it must fulfill its social responsibilities.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.02


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Environmental Influence- Environmental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE

7. Cultural differences between an MNC's horne country and its host country sometimes make it difficult to distinguish
between cultural issues and ethical issues.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.02


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION
8. A major ethical challenge ofMNCs is that their fmns' cultures and philosophies may differ from that of their host
countries.
a. True

b. False

ANSWER:

True

POINTS:

DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.15.10.02
NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:
KEYWORDS:

United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence


BLOOMS: COMPREHENSION

9. Most of the ethical problems that arise in international markets are very different than the moral issues encountered
in their horne countries.
a. True

b. False

ANSWER:

False

POINTS:

DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.15.10.02
NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION

10. The ethical issues eucountered in underdeveloped countries are ofteu more difficult than those found in industrialized
nations.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.02


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
United States- Georgia- ETHC.CARR.l5.10.02
STATE STANDARDS:
KEYWORDS:
BLOOMS: COMPREHENSION
11. The Nestle infant formula case is one in which a normal business practice in the frrm's horne country proved to be
problematic in the host countries.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:

ETHC.CARR.l5.10.03

United States- BUPROG: Analytic- BUSPROG: Analytic


United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
BLOOMS: COMPREHENSION

12. One of the ethical issues that is exacerbated by operating in an developing countries is that the host nation's citizeus
ofteu do not understand the technology being used, nor do they recognize its poteutial dangers.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.02


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States- Georgia- DISC: INFORMATION TECHNOLOGIES
KEYWORDS:
BLOOMS: KNOWLEDGE

13. One of the things that makes it difficult for U.S. MNCs to deal with sweatshops is that they only occur in foreign
countries.
a. True

b. False

ANSWER:

False

POINTS:

DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.l5.10.02
NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia- DISC: HRM- DISC: HRM
KEYWORDS:
BLOOMS: KNOWLEDGE
14. MNCs often pay their employees in underdeveloped countries less than the average local wage.
a. True

b. False

ANSWER:
POINTS:

False
I

DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.l5.10.02
NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia- DISC: HRM- DISC: HRM
KEYWORDS:
BLOOMS: KNOWLEDGE
15. The Alien Tort Claims Act has recently been interpreted by the U.S. Supreme Court to apply not only within the
U.S., but outside it as well.
a. True

b. False

ANSWER:
POINTS:

False

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.03


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: LEGAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: KNOWLEDGE

16. Corruption, at its core, is essentially an abuse of power.


a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.04


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION
17. According to Transparency International's Corruption Perception Index (CPI), underdeveloped countries typically
rank low in corruption.
a. True

b. False

ANSWER:
POINTS:

False

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.04


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION
18. Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country.
a. True

b. False

ANSWER:
POINTS:

False

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.06


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION

19. Global codes of conduct seek to establish domestic principles or guidelines by which businesses might follow while
doing business around the world.
a. True

b. False

ANSWER:

False

POINTS:

DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.l5.10.06
NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION
20. One way to resolve ethical conflicts between an MNC's horne country and host country is to simply stop doing
business in the host country.
a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:

ETHC.CARR.l5.10.06

United States- BUPROG: Analytic- BUSPROG: Analytic


United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
BLOOMS: COMPREHENSION

21. The opposite of cultural relativism is ethical imperialism.


a. True

b. False

ANSWER:
POINTS:

True

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.06


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

22. The FCPA has had a significant impact on the way American firms do business globally.
a. True

b. False

ANSWER:

True

POINTS:

DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.15.10.04


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

23. International markets must be pursued iffmns want to remain


a. competitive.
b. ethical.
c. free from corruption.
d. legitimate.

ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.15.10.01


NATIONAL STANDARDS: United States- BUSPROG Analytic
United States -Georgia- DISC: Environmental Influence- Environmental Influence
STATE STANDARDS:
KEYWORDS:
BLOOMS: COMPREHENSION
24. Peter Drucker has labeled the expanded global marketplace the
a. moral free space.
b. hypercompetitive economy.
c. transnational economy.
d. multinational competitive sphere.

ANSWER:

POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.15.10.01
NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Environmental Influence- Environmental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE

25. Which of the following is not a feature of the global economy?


a. international movement oflabor
b. more trade in goods than in services
c. international flow of capital
d. international laws governing fair trade

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:

ETHC.CARR.l5.10.01

United States- BUSPROG Analytic


United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
BLOOMS: KNOWLEDGE

26. The process by which firms increase their awareness of the influence of international activities on their future and
establish and conduct transactions with firms from other countries is known as
a. legitimization.
b. internationalization.
c. market awareness.

d. multinationalism.

ANSWER:

POINTS:
I
DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.l5.10.01
NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE
27. Economic integration of many formerly national economies into one worldwide economy is called
a. globalization.
b. world-system theory.
c. capitalization.
d. material diversification.

ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.l5.10.01


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE

28. The criticism of their use of sweatshops has led MNCs to do all of these things except::
a. work to improve working conditions.
b. establish codes of conduct.
c. perform social or ethical audits.
d. create the Fair Labor Association (FLA).

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.06


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:

United States- Georgia- DISC: ETHICAL RESPONSIBILITIES

KEYWORDS:

BLOOMS: KNOWLEDGE

29. Moving jobs that have historically resided in the horne country to a lower-cost host country is called
a. expense minimization.
b. offshoring.
c. career displacement.
d. employment modernization.

ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.15.10.01


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE
30. The FCPA differentiates between:
a. domestic and international disputes
b. land ownership and building rental
c. bribes and grease payments
d. entry fees and corporate filing fees

ANSWER:

POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
NATIONAL STANDARDS:

United States- BUSPROG: Ethics

STATE STANDARDS:

United States- Georgia- DISC: LEGAL RESPONSIBILITIES

KEYWORDS:

BLOOMS: KNOWLEDGE

Easy
ETHC.CARR.15.10.04

31. The most challenging situation for an MNC to face is


a. operating in socialist countries.
b. operating in more than ten countries at the same time.
c. operating is less-developed countries.
d. operating without a clearly defined strategic plan.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:

ETHC.CARR.l5.10.02

United States- BUSPROG Analytic


United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
BLOOMS: KNOWLEDGE

32. The philosophy of Western industrialized nations and their MNCs includes all of these factors except:
a. economic growth.
b. decentralization.
c. efficiency.
d. free trade.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.02


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOMS: COMPREHENSION
33. The advantages of offshoring to developing countries have been:
.
.
a. mcreasmg
b. decreasing
c. staying the same
d. doubling each decade

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.01


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE

34. In the 1970s, because of the differing safety standards around the world, American fmns:
a. continued to export drugs that had been banned in the U.S.
b. continued to export pesticides that had been banned in the U.S.
c. built asbestos manufacturing plants, banned in the U.S., in other countries.
d. took all of these actions.

ANSWER:

POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:

KEYWORDS:

Easy
ETHC.CARR.15.10.02
United States- BUSPROG: Ethics
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
BLOOMS: KNOWLEDGE

35. Which of the following is not one the broad issues facing MNCs in their relationships with host countries?
a. cultural aspects
b. business/goverrunent interactions
c. exploration of global markets
d. religious and other traditional holidays

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.02


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE
36. Ethical issues in the global envirornnent include all of these except:
a. product safety.
b. human resource management.
c. production efficiency.
d. marketing.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.02


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

37. Major strategies MNCs may use to conduct global business, but still maintain an ethical sensitivity include all of these
except:
a. modify or redesign products.
b. link ethics with global strategy.
c. suspend business activities in certain countries.
d. conduct ethical audits.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.06


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: KNOWLEDGE

38. Regarding the infant formula controversy, Nestle was criticized for all of these actions except:
a. distributing free samples.
b. providing purified water with the formula.
c. promoting bottle-feeding over breast-feeding.
d. the use of so-called "milk nurses."

ANSWER:

POINTS:
I
DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.l5.10.03
NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: KNOWLEDGE
39. All of the following groups have criticized MNC labor practices except
a. social activist groups.
b. church groups.
c. labor unions.
d. grassroots organizations.

ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.l5.10.03


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE

40. Which of the following is not a characteristic of sweatshops?


a. child labor
b. low pay
c. poor working conditions
d. forced prostitution

ANSWER:

POINTS:
DIFFICULTY:

LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:

Easy
ETHC.CARR.l5.10.03
United States- BUSPROG Analytic
United States -Georgia- DISC: Environmental Influence- Environmental Influence
BLOOMS: KNOWLEDGE

41. Which of the following is not an SA8000 standard proposed to improve sweatshop conditions?
a. prohibition on employing workers under a certain age
b. provision of a safe and healthy working environment
c. provision of educational opportunities for workers
d. prohibition of discriminatory practices

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.03


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: KNOWLEDGE
42. All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except
a. allowing workers to form unions.
b. prohibiting corporal punishment.
c. providing retirement benefits.
d. limiting work to a maximum of 48 hours per week.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.03


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION

43. The Alien Tort Claims Act applies to:


a. actions that occur on foreign soil.
b. actions that occur on U.S. soil.
c. actions that occur in the host country where a U.S. firm is based.
d. actions that occur in a foreign country where a foreign firm is based.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.03


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: KNOWLEDGE

44. U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because
a. they could allow the finn to recoup some costs of incorporating overseas.
b. they could allow the finn to sue foreign fmns on a reciprocal basis.
c. they provide an insight in the customs of the host country.
d. they are increasingly being named as defendants in tort cases for doing business in countries with repressive
governments.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.03


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

45. Which of the following is not an example of corruption?


a. bribery
b. paying for political favors
c. negotiating for the lowest price on a contract
d. paying protection money to the police

ANSWER:

POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.15.10.04
NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: KNOWLEDGE

46. All of the following are arguments in support of bribery except


a. everybody does it.
b. it is normal practice in many countries.
c. it is a form of commission, tax, or compensation for doing business between cultures.
d. it is a way of providing needy foreiguers with money they need.

ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.15.10.04


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

47. Which of the following is not an argument commonly used against bribery?
a. Bribes are inherently wrong.
b. Bribes create dependence on corrupt individuals.
c. Bribes are unfair because foreigners can get them, while U.S. citizens cannot.
d. Once bribes start, they never stop.

ANSWER:

POINTS:
1
DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.15.10.04
NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION
48. The Foreign Corrupt Practices Act
a. governs the operations offoreigu MNCs in the United States.
b. makes it illegal to make any type of payment to a foreigu citizen for the purpose of doing business.
c. makes it illegal for the representative of an American corporation to offer or pay officials offoreigu
governments for the purpose of getting or maintaining business.
d. makes it illegal for American goverrnnent officials to accept bribes from foreigu nationals.

ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.15.10.04


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

49. The Foreign Corrupt Practices Act allows


a. bribes under $10,000.
b. bribes, as long as the finn does not deduct them on its tax return.
c. bribes, as long as they are disclosed to shareholders.
d. grease payments.

ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.l5.10.04


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: KNOWLEDGE

50. Payment of a bribe implies some type of


a. extortion.
b. quid pro quo.
c. gambling.
d. physical harm to the payee.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.04


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

51. Which of the following is not part of the anticorruption movement?


a. Transparency International
b. OECD antibribery initiatives
c. individual country initiatives
d. World Trade Organization

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.05


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: LEGAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: KNOWLEDGE

52. In 2012, the United States' rank in the Corruption Perception Index was:
a. first, being least corrupt.
b. in the top 10.
c. in the top 20.
d. at the very bottom.

ANSWER:

POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:

KEYWORDS:

Easy
ETHC.CARR.15.10.05
United States- BUSPROG: Ethics
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
BLOOMS: KNOWLEDGE

53. Global trade is:


a. speeding up.
b. slowing down.
c. doing about the same.
d. diminishing exponentially.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.02


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOMS: KNOWLEDGE
54. The position that advocates that an MNC should continue to follow its horne country's ethical standards even while
operating in another country is known as
a. ethical relativism.
b. ethical egoism.
c. ethical imperialism.
d. ethical hegemony.

ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.15.10.02


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: KNOWLEDGE

55. The position that advocates that an MNC follow the host country's ethical standards is called
a. ethical relativism.
b. ethical egoism.
c. ethical imperialism.
d. ethical hegemony.
ANSWER:

POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:

Easy
ETHC.CARR.l5.10.02
United States- BUPROG: Analytic- BUSPROG: Analytic
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
BLOOMS: KNOWLEDGE

56. Which of the following is not one ofhome!host stakeholder pressures?


a. culture
b. system of government
c. economic system

d. laws
ANSWER:

POINTS:
DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.l5.10.02


NATIONAL STANDARDS: United States- BUSPROG: Diversity
STATE STANDARDS:
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: KNOWLEDGE

57. Current standards for SA800 include all the following except
a. certifications.
b. compensations.
c. management systems.
d. child labor.
ANSWER:
POINTS:

a
I

DIFFICULTY:

Moderate
LEARNING OBJECTIVES: ETHC.CARR.l5.10.05
NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: KNOWLEDGE

58. Arguments against bribery include all the following except


a. you shouldn't compromise your beliefs.
b. bribery is illegal in the United States.
c. managers can deal with corrupt governments.
d. one should take a stand for honesty.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:

ETHC.CARR.l5.10.06

United States- BUPROG: Analytic- BUSPROG: Analytic


United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
BLOOMS: KNOWLEDGE

59. Which of the following is not a strategy for improving global business ethics?
a. use of global codes of conduct
b. incorporating ethical dimensions into top level strategic planning processes
c. imposing the horne country's ethical standards on the host country
d. suspension of activities

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.06


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: KNOWLEDGE
60. The ethics and global strategy plan for improving global business ethics has as its central idea
a. placing ethics ahead of profits as the number one priority.
b. focusing on human rights rather than profits.
c. employing only hypernorrns for the MNC's ethical standards.
d. utilizing ethical standards as siguificant inputs into top-level strategy formulation and implementation.

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.06


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION

61. An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those
actions are contained in
a. social audits.
b. ethical impact statements.
c. human rights statements.
d. envirornnental impact statements.
ANSWER:
POINTS:

b
I

DIFFICULTY:

Moderate
LEARNING OBJECTIVES: ETHC.CARR.l5.10.06
NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
United States- Georgia- ETHC.CARR.l5.10.06
STATE STANDARDS:
KEYWORDS:
BLOOMS: COMPREHENSION
62. Arguments in favor of bribery include
a. it's necessary for profit.
b. nobody does it.
c. they are forms of wages.
d. they are not expected.
ANSWER:
POINTS:

a
I

DIFFICULTY:

Moderate
LEARNING OBJECTIVES: ETHC.CARR.l5.10.02
NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOMS: COMPREHENSION
63. Multinational corporations are all of the following except
a. corporations operating with offices, factories, and headquarters in more than one country.
b. multinational enterprises.
c. fmancial powerhouses
d. transnational corporations.
ANSWER:

POINTS:
I
DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.l5.10.01
NATIONAL STANDARDS: United States- BUSPROG: Diversity
STATE STANDARDS:
United States- Georgia- DISC: STRATEGY
KEYWORDS:
BLOOMS: COMPREHENSION

64. Grease payments are all of following except


a. monies given to minor officials
b. get goods through red tape
c. monies given to high ranking officials
d. small sums of money

ANSWER:
POINTS:

DIFFICULTY:

Moderate

LEARNING OBJECTIVES:
NATIONAL STANDARDS:
STATE STANDARDS:
KEYWORDS:

ETHC.CARR.15.10.04

United States- BUPROG: Analytic- BUSPROG: Analytic


United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
BLOOMS: COMPREHENSION

Provide a short answer to each of these questions. Be sure to fully explain your answer.
65. Discuss the previous assumption that global trade would expand continually, the effect of the global economic crisis,
and the implications of those events.

ANSWER:

Previously, global trade continued to grow rapidly, and it was assumed that such
growth would continue. But the economic crisis of2008-09 essentially put the brakes
on that growth, slowing global trade. In fact, Fortune magazine predicts that the world
is turning inward, and soon, domestic success will again start to deliver growth for
companies and nations again.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.01


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Environmental Influence- Environmental Influence
KEYWORDS:
BLOOM'S: ANALYSIS
66. Describe the differences between internationalization and globalization.

ANSWER:

Internationalization refers to the process by which firms increase their awareness of


the influence of international activities on their future and establish and conduct
transactions with firms from other countries. In other words, the focus of
internationalization is a single finn expanding its markets. Globalization, on the other
hand, is the integration of separate national economies into one global economy. The
focus here is one entire economies interacting and integrating.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.01


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Environmental Influence- Environmental Influence
KEYWORDS:
BLOOM'S: ANALYSIS

67. Describe Earth Hour, and its growth. What has been its effect on awareness of global warming and climate change?
Have you ever participated in Earth Hour in your community?

ANSWER:

Earth Hour is a global sustainability movement which seeks to stop degrading the
Earth's natural environment, and to create a low-carbon future for the planet. The
event is celebrated by people turning off their lights for one hour at the prescribed time
in cities which h ave signed on to the initiative.
Earth Hour began in 2007 in Australia by the World Wide Fund for Nature (WWF),
and is now celebrated worldwide by millions of people in 7,000 cities across !52
countries. Major buildings such as the Sydney Harbor Bridge, the CN Tower in
Toronto, Rome's Colosseum, India Gate, the Golden Gate Bridge in San Francisco and
many more stand in darkness for that hour in order to represent the world's ethical
responsibility to the earth.
Students answers will vary as to whether or not they have participated in Earth Hour.

POINTS:

DIFFICULTY:
Easy
LEARNING OBJECTIVES: ETHC.CARR.l5.10.06
NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:

BLOOMS: COMPREHENSION

68. Describe a situation in which the best course of action for an MNC would be to suspend business activities in a host
country where it is currently doing or contemplates doing business. What would precipitate such an action?

ANSWER:

Students answers will vary, but should recognize the major causes which would
persuade an MNC to abandon its plans to do business in aa host country or its current
business operations in the host country. Some of these would include an irreconcilable
conflict between the ethical values of the MNCs horne country and those of its host
country; a legal requirement for too great a portion of local ownership and control; a
culture requiring payment of bribes; confiscation by a host country of the MNCs assets
and operations; laws which violate the MNCs ethical principles.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.02


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:

United States- Georgia- DISC: ETHICAL RESPONSIBILITIES

KEYWORDS:

BLOOM'S: APPLICATION

69. Review the major causes of the Nestle infant formula controversy.

ANSWER:

Nestle and other infant formula producers sought to distribute their products in several
tropical LDCs, where sanitary conditions were poor and refrigeration was not
widespread. Because of these factors, the formula mixed with local water often
caused disease and diarrhea in the babies. In addition, the mothers tended to overdilute
the formula, thus diminishing the nutritional content of a given amount of formula.
Marketing practices included having women posing as "milk nurses" promote the
formula as superior to breast milk. Finally, because they bottle-fed their children, the
mothers' milk often dried up, thus making the infants dependent on the formula.

POINTS:

DIFFICULTY:

Easy

LEARNING OBJECTIVES: ETHC.CARR.15.10.03


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOM'S: APPLICATION
70. Discuss the differing philosophies held by MNCs and less-developed host countries. Which philosophy do you think is
more appropriate?

ANSWER:

Most MNCs, corning from industrialized nations, tend to focus on economic growth,
efficiency, specialization, free trade, and competitive advantage. LDCs concentrate
more on equitable distribution of income and wealth, increased economic self-reliance.
Because of these differences in philosophies, many MNCs are viewed as exploiters of
the LDCs, their citizens, and their natural resources. This is the view espoused by
Immanuel Wallerstein and David Korten in their works on the world economic system.
Because we (Earth's inhabitants) consume more resources than is sustainable, the
MNCs' emphasis on continued growth and competitive advantage is outmoded and
ultimately detrimental to all of us. Thus, I would adhere more closely to the LDCs'
philosophy.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.02


NATIONAL STANDARDS: United States- BUSPROG Analytic
STATE STANDARDS:
United States -Georgia- DISC: Envirornnental Influence- Envirornnental Influence
KEYWORDS:
BLOOM'S: ANALYSIS

71. According to the textbook, Dow Chemical, which bought Union Carbide in 200 I, is still subjected to claims by the
survivors of the Bhopal disaster. Based on your understanding of the incident and its aftermath, determine whether
or not Dow should continue to be liable to the victims of Bhopal.

ANSWER:

Students may want to answer this question at two levels--from a legal perspective and
from an ethical perspective. From a legal standpoint, the Indian courts have the fmal
say as to whether the $470 million settlement paid in 1989 is fmal resolution of Dow's
legal obligation. If the settlement precludes further legal action by the victims, then it
would appear that Dow's legal obligations have been fulfilled. However the legal
question is settled, it has little effect on Dow's ethical obligations. If toxic waste still
exists in the area, it would appear to be Dow's moral duty to clean it up, regardless of
cost. Similarly, if residents of the area continue to suffer ill effects that stern from the
incident, Dow seems to have an ethical obligation to provide restitution to them also.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.03


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOM'S: ANALYSIS
72. Evaluate the proposed requirement that MNCs pay workers at least the legal minimum wage or prevailing industry
wage in their overseas factories.

ANSWER:

While, on the surface, this requirement appears to protect workers against exploitation
by the MNCs, the minimum wage or prevailing industry wage is often below the
poverty line. As advocated in the United States, companies should be paying their
workers a "living wage," one with which workers can afford to provide a decent
material livelihood for themselves and their families. IfMNCs were willing to provide a
living wage, they would greatly improve the lives of their workers, at little cost to their
overall profitability.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.02


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia- DISC: HRM- DISC: HRM
KEYWORDS:
BLOOM'S: ANALYSIS

73. Discuss the best ways to combat bribery.

ANSWER:

As with most social ills, the best way to combat bribery is to stop it before it starts. As

the textbook points out, the very people who are in the positions to benefit the most
from bribery are also the ones with the power to allow it or stop it. Of course, this
proposal ignores the fact that bribery already exists in many places and is accepted
practice in several of them. If we acknowledge that the practice of bribery exists, then
the preferred method of combating it is to expose it as much as possible. Illicit
practices tend not to flourish in the broad light of day.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.06


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOM'S: ANALYSIS
74. Provide an example of how the FCPA has cracked down on corrupt practices.

ANSWER:

In late 2008, German engineering company Siemens AG and authorities in the U.S.
settled a longstanding bribes-for-business case with a record $1.6 billion fme, ahnost 20
times higher than the largest previous penalty under the FCPA. Siemens was penalized
for routinely offering bribes to win overseas contracts with the following countries Russia, Argentina, China, and Israel. The company was said to have spent more than
$1 billion in bribing goverrnnent officials around the globe1The U.S. was able to apply
the FCPA to Siemens because it is now listed on the U.S. Stock Exchange

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.04


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: LEGAL RESPONSIBILITIES
KEYWORDS:
BLOOM'S: APPLICATION

Utilize the knowledge you have gained to respond to the following essay questions. Your answers should
state your position and use logical arguments and content from this and other chapters in the textbook to
support it.
75. What are the most important factors leading a firm to take corporate action against corruption?

ANSWER:

A recent study by the Conference Board has revealed how some firms came to
institute anti corruption campaigns within the organizations. When asked what was the
singular most important factor in their decisions, the firms' most frequent responses
were: senior management leadership and personal convictions, bribe payments were
illegal under their home country's laws, an underlying belief that bribe payments were
wrong, and the impact of the Sarbanes-Oxley Act of2004.
Among the factors driving success were a high-level commitment by top management,
detailed statements of policies and operating procedures, training and discussion of
policies and procedures, hotlines and help limes for all organizational members, and
investigative follow-up, reporting, and disclosure.
All of these factors represent a sincere commitment to anti-corruption, and an active,
hands-on follow-up to confmn ethical conduct.

POINTS:
DIFFICULTY:
LEARNING OBJECTIVES:
NATIONAL STANDARDS:

United States- BUSPROG: Ethics

STATE STANDARDS:

United States- Georgia- DISC: ETHICAL RESPONSIBILITIES

KEYWORDS:

BLOOM'S: ANALYSIS

Moderate
ETHC.CARR.15.10.06

76. Make a case for paying premium wages to workers in less-developed countries.

ANSWER:

The obvious reason for paying premium wages is help the workers improve their lives.
This can be done with little effect on the MNC's bottom line (since prevailing wages
are so low), or with little added cost to the consumer. Critics of this policy say that
premium wages will skim the best of the local labor supply and thus hurting local
businesses. This argument ignores the multiplier effect of currency exchange, and also
ignores the "trickle-down economics" argument that conservatives are so fond of
making for the benefit of the wealthy in the United States.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.06


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia- DISC: HRM- DISC: HRM
KEYWORDS:
BLOOM'S: APPLICATION

77. One reason that some observers give for the cause of the Union Carbide Bhopal incident is that the company was
forced to take on local partners in the project, thus diluting Union Carbide's profit motive. Assuming this argument is
valid, evaluate it from a deontological perspective.

ANSWER:

Deontology says that one should determine the right thing to do by focusing on one's
duty, rather than the consequences of the action. In the case of Union Carbide, they
had a duty to build the plant to the highest standards of safety, to protect workers and
neighbors. Being willing to lower safety standards because the owner has to share
profits with other parties is clearly egoistic thinking, placing one party above others.
Had Union Carbide utilized deontological theory, it would have built the plant to be as
safe as possible, regardless of the distribution of profits.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.02


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
United States- Georgia- DISC: OPERATIONS MANAGEMENT
STATE STANDARDS:
KEYWORDS:
BLOOM'S: ANALYSIS
78. Bribery can be initiated by either party to the transaction. The person paying the bribe can offer it, or the recipient
can demand it. Determine which party is the least ethical one, the payor who offers the bribe, or the recipient who
demands it.

ANSWER:

Students should be evenly split on this question. Many will try to fmd ways to justify the
actions taken by either party, but the fact remains that whoever initiates the transaction
is operating unethically. Payment of a bribe allows one party to gain an unfair
advantage over others who either cannot or will not pay.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.04


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOM'S: ANALYSIS
79. Evaluate Nestle's action in defming the issue and keeping the issue out of the limelight, in the infant formula case.

ANSWER:

Obviously, they lost on all accounts of preparing a political strategy against public
activism. The issue was out before they planned. Their focus on profits beyond the
stakeholders caused a myopic viewpoint from consumption to corporate governance.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.15.10.03


NATIONAL STANDARDS: United States- BUPROG: Analytic- BUSPROG: Analytic
STATE STANDARDS:
United States - Georgia -DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:
BLOOM'S: ANALYSIS

80. Transparency International has sought to fight world corruption. Reflect on the meaning of their five priorities and
two principles.

ANSWER:

TI has defined five priorities in its fight against worldwide corruption. These include
fighting corruption in (I) the private sector, (2) politics, (3) public contracting, (4)
international anti-corruption conventions, and (5) poverty and development. It maintains
over 100 national chapters run by local activists 1TI has established two simple
principles for businesses striving to root out corruption: The enterprise shall prohibit
bribery in any form whether direct or indirect and The enterprise shall commit to
implementing a Program to counter bribery. TI has sought to fight corruption in
consumers, goverrnnent, association with government, integration from an international
standpoint, and associations of use of average citizenry for development purposes.
Student answers will vary in their reflection beyond this.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.05


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:

United States- Georgia- DISC: ETHICAL RESPONSIBILITIES

KEYWORDS:

BLOOM'S: ANALYSIS

81. The two most widely used global standards are the UN Global Compact and the Caux Roundtable Principles.
Compare and contrast the two for their approach to human, labor, and environment rights.

ANSWER:

The UN Global Compact is more explicit in defming principles for each area while the
Caux Principles are more general in nature yet addressing the issues vaguely. Figure
10-7 provides specific principles of each.

POINTS:
DIFFICULTY:

Moderate

LEARNING OBJECTIVES: ETHC.CARR.l5.10.05


NATIONAL STANDARDS: United States- BUSPROG: Ethics
STATE STANDARDS:
United States- Georgia- DISC: ETHICAL RESPONSIBILITIES
KEYWORDS:

BLOOM'S: ANALYSIS