Chapter 11, Managing for Ethics and Social Responsibility in a Global Environment

1. Spouses of high level expatriate managers generally serve in a corporate ambassador role.
Ans: True
Response: See page 400.
2. Fluency in a foreign language assists with verbal communication, but helps little in understanding the culture.
Ans: False
Response: See page 401.
3. Visitors to another culture will notice things that are important at home but that may not be important in the
target culture.
Ans: True
Response: See page 404.
4. If we understand how people think and behave in their native environment, we will understand how a
particular group will behave in relation to cultural outsiders.
Ans: False
Response: See page 404.
5. The term cultural intelligence (CQ) has been used to describe an individuals ability to be effective in crosscultural situations.
Ans.: True
Response: See page 400
6. Ethical issues are universal and do not vary from culture to culture.
Ans: False
Response: See page 411.
7. Although bribes are an accepted part of commercial transactions in many Asian, African, Latin American, and
Middle Eastern countries, it is usually against the law in these very same countries.
Ans: True
Response: See page 407.
8. The Golden Rule (do unto others as you would have them do unto you) appears in the teachings of every
major world religion.
Ans: True
Response: See page 412.
Difficulty: Easy
9. Justice and fairness are universal human values. Therefore, specific beliefs and preferences about what is a
fair allocation are also universally interdependent.
Ans: False
Response: See page 412.
10. A countrys sociopolitical environment increases the number of ethical questions with a company must deal.
Ans: True
Response: See page 418.
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11. Many overseas assignments end early and unsuccessfully because the expatriate managers and the
managers familys inability to adjust to the foreign work environment.
Ans.: True
Response: See page 400
12. Workers in a culture of low power distance may be more willing to question the bosss authority or even
blow the whistle on an unethical manager.
Ans.: True
Response: See page 403
13. Behavior is difficult to predict because people adapt their behaviors to what they believe others expect of
them.
Ans.: True
Response: See page 404
14. Successful international business persons are achievers with years of experience in US multinationals.
Ans.: False
Response: See page 404. Characteristics of successful international business persons are open, flexible, and
tolerant of ambiguity.
15. If a company official is abducted by Somali pirates and held for ransom, the Foreign Corrupt Practices act
(FCPA) calls for the company to forego negotiating for the employees release and to not pay a ransom.
Ans. False
Response: See page 408
16. The additional costs of corruption to international projects is less than 5% on average making it practical to
include corruption as a cost of doing business.
Ans. False
Response: See page 409
17. In its Bribe Payers Index (BPI) of 2008, Transparency International (TI) cited Russia, China, Mexico, and
India for having particularly high levels of perceived bribery.
Ans. False
Response: See page 411
18. Because of the cultural differences in Asia and Latin America, help lines are more effective when they are
oriented more toward providing guidance rather than reporting misconduct.
Ans. True
Response: See page 416
19. More and more consumers say that corporate citizenship influences their buying habits.
Ans.: True
Response: See page 419
20. According to researchers at Harvard, in developing their firms codes of conduct, multinational firms would
be wise to stick with the eight principles identified by their research as the core of global standards of conduct
and to not deviate or supplement the principles with values unique to their respective firms.
Ans.: False
Response: See page 428-429
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21. Civil society refers to:

a) Countries with a certain type of governance structure.
b) Groups interested in business ethics (such as the media, not-for-profit organizations, academic institutions,
and religious and political groups).
c) Government agencies in foreign countries.
d) Countries that share the same culture, customs, and norms.
Ans: b
Response: See page 399.
22. Which of the following is false?
a) Organizations are affected by the expatriate managers ability to adjust to the new setting.
b) Organizations are not affected by the expatriate familys ability to adjust to the new setting.
c) Foreign language proficiency is more important for non-English speakers in English-speaking countries.
d) Cross-cultural training can help an expatriate manager better adjust to the new culture.
Ans: b
Response: See page 400.
23. Which of the following is false?
a) Culture can be defined as collective mental programming.
b) Culture represents different patterns of believing.
c) Culture is used to interpret the world.
d) Cultures new to an individual will impact his/her interpretation of experience.
Ans: d
Response: See page 402.
24. ___________ defines themselves in terms of their group memberships and their contributions to the success
of those groups.
a) Individualists
b) Collectivists
c) High power distance
d) Low power distance
Ans: b
Response: See page 402.
25. ____________ reflects acceptance of inequality and respect for social status or class boundaries.
a) Individualism
b) Collectivism
c) High power distance
d) Low power distance
Ans: c
Response: See page 403.
26. Which of the following is an example of a high power distance country?
a) India
b) United States
c) Israel
d) None of the above
Ans: a
Response: See page 403.
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27. When dealing with an individual from a different culture,

a) Negotiators generally adapt their negotiation behavior to that of the negotiation partner.
b) American negotiators are the most flexible to their negotiation partners behavior.
c) Canadian and Japanese negotiators are the least flexible to their negotiation partners behavior.
d) Negotiators generally do not adapt their negotiation behavior to that of the negotiation partner.
Ans: a
Response: See pages 406-407.
28. The psychic distance paradox causes performance failures because:
a) Negotiators who are working in a similar culture to their own perceive the two cultures as being significantly
different.
b) When doing business in cultures that are perceived to be similar, managers prepare less and do not realize the
cultures are actually quite different.
c) Expatriate managers are unable to connect with the local culture after moving from a similar culture.
d) Managers do not understand the cultures behavior despite language proficiency.
Ans: b
Response: See page 405.
29. Which of the following is true?
a) Collectivists tend to prefer mediation because it involves compromise.
b) Collectivists tend to prefer adjudication because it is perceived to be fairer.
c) Collectivists tend to prefer direct manifestations of conflict.
d) Collectivists tend to avoid psychological warfare.
Ans: a
Response: See page 406.
30. Which of the following is legal according to the Foreign Corrupt Practices Act (FCPA) passed in 1977?
a) Payments to high ranking government officials
b) Grease payments to lower-level government officials
c) Bribes to political parties
d) Kickbacks to win overseas contracts
e) None of the above
Ans: b
Response: See page 407.
31. According to the 2009 Corruption Perception Index (CPI), which country would be the least corrupt?
a) United States
b) Haiti
c) Bangladesh
d) New Zealand
Ans: d
Response: See page 410.
32. When in Rome, do as Romans do is an example of:
a) Ethical imperialism
b) Ethical relativism
c) Cultural imperialism
d) Cultural relativism
Ans: d
Response: See page 413.
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33. ____________ assumes absolute truths that would require exactly the same standard and behavior in every
culture.
a) Ethical imperialism
b) Ethical relativism
c) Cultural imperialism
d) Cultural relativism
Ans: a
Response: See page 413.
34. of the following statements about the Organization for Economic Cooperation and Development (OECD)
Anti-Bribery Convention (the Convention) which are untrue.
a. Participating countries include countries in Western Europe and North America
b. The Convention requires signatories to make it a crime to bribe foreign public officials
c. The Convention includes the application of criminal penalties
d. The Convention bans gifts to political parties
e. The Convention outlaws tax deductibility for bribes
f. All are statements are true
g. Statements d and e are untrue
Ans.: g
Response: See page 426
35. Social Accountability International developed a standard called Social Accountability 8000 (SA 8000) to
help organizations in workplace conditions including but not limited to
a. Child labor
b. Forced labor
c. Health and safety
d. Discrimination
e. All of the above
Ans.: e
Response: See page 423
Short Answer
36. Reebok Corporation has made human rights a hallmark of its corporate strategy, culture, and identity.
Briefly describe at least two of the ways in which the company addresses international human rights issues.
Ans: For example, students should be able to describe Reeboks policy for children labor (i.e. children are still
paid but go to school instead), its membership to the Fair Labor Association (i.e. provides external auditors), or
its commitment to help factories that are not meeting Reeboks Code requirements come up to standards.
Response: See page 423.
Difficulty: Medium