Proef/oefen tentamen 2016, vragen en antwoorden PDF

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According to integrative social contracts theory, 

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the collective views of multiple cultures and societies combine to form a “social contract” that is binding on all individuals, groups, organizations, and businesses in terms of establishing right and wrong and drawing the line between ethical and unethical behaviors; however, within the boundaries of this social contract, local cultures or groups can specify what other actions may or may not be ethically permissible. a company’s first duty and responsibility is to be respectful of and responsive to the ethical standards and norms of the each of the countries in which it operates. each country’s ethical norms and customs form a “social contract” that all individuals, groups, organizations, and businesses in that country have a duty to observe; so long as this social contract is dutifully observed, then it is appropriate for any company or group to specify what other actions may or may not be ethically permissible. the Code of Expected Ethical Conduct developed by the United Nations represents a pragmatic and effective compromise of the best parts of the ethical standards advocated by the school of ethical universalism and the ethical standards advocated by the school of ethical relativism. the slippery slope of ethical universalism should be rejected and the principles of ethical relativism should be embraced.

Which one of the following is not a particularly sound or valid reason why deliberate pursuit of unethical strategies and tolerance of unethical conduct is a risky practice? o o 

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An unethical strategy and/or unethical conduct on the part of company personnel can badly damage a company’s reputation Buyers shun companies known for their shady behavior Companies that engage in shady behavior usually suffer big drops in profitability and are unlikely to earn attractive profits for as many as 5 to 10 years after their unethical conduct is exposed in the media Pursuing an unethical strategy is generally not in the best long-term interest of shareholders and can be very costly in terms of fines and penalties, legal and investigative costs, customer defections, lower employee morale, and higher employee turnover and recruiting costs Companies known to have engaged in unethical conduct have difficulty in recruiting and retaining talented employees

The school of ethical relativism holds that o 

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what constitutes ethical or unethical conduct varies according to the religious convictions of each society or each culture within a country. because there are meaningful variations in what societies generally agree to be ethically right and wrong in the conduct of business activities, it is appropriate for there to be differing standards of what constitutes ethical business behavior and what constitutes unethical business behavior and, further, for local ethical standards to take precedence over the ethical standards that exist elsewhere. it is generally best to use a “one-size-fits-all” template for judging the ethical appropriateness of business actions and the behaviors of company personnel.

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concepts of right and wrong are always relative in the sense of being a function of each individual’s own set of values, beliefs, and ethical convictions. concepts of right and wrong as they apply to business behavior vary from business situation to business situation because such standards are capable of varying interpretation.

Multinational companies o

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face a real dilemma in basing their standards of what is ethical and what is unethical on the principle of ethical universalism because it is much better and easier for them to operate with multiple sets of ethical standards (sometimes one for each country, so as to be respectful and accommodative of local customs and traditions)—it is far more sensible and ethically correct for a multinational company to take the position that it is ethically okay for company personnel to pay bribes and kickbacks in countries where such payments are customary but that it is not ethically permissible for company personnel to pay bribes and kickbacks in those countries where bribes and kickbacks are considered unethical or illegal. that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition irrespective of whether it is customary in some locales to pay bribes/kickbacks are most probably acting in accordance with the ethical relativism school of thought. that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition are acting in accordance with the ethical universalism school of thought. relying upon the principle of ethical relativism for guidance in how to conduct their activities are using the fairest and best way to judge the ethical correctness of the conduct of company personnel. operating in countries where ethical standards vary considerably from country to country quickly find themselves on a slippery slope with no locally credible guiding moral authority if they insist on having a single companywide code of ethical standards that applies to all company personnel in all countries where the company operates.

Which one of the following is not among the good business reasons why companies should be publicspirited and devote time and resources to social responsibility initiatives, environmental sustainability, and being good corporate citizens? o 

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Socially responsible actions yield internal benefits (particularly as concerns employee recruiting, workforce retention, and training costs) and can improve operational efficiency. A business is obligated to act as a responsible citizen and do its fair share to promote the general welfare; otherwise it is in violation of its implied contract with society and subject to both heavy fines and an excess profits tax. Acting in a socially responsible manner reduces the risk of reputation-damaging incidents. Well-conceived social responsibility strategies work to the advantage of shareholders. A strong, visible social responsibility strategy gives a company an edge in differentiating itself from rivals and in appealing to those consumers who prefer to do business with companies that are good corporate citizens.

The categories of managerial morality include:

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managers who are “true believers” in high ethical standards, managers who claim to believe in high ethical standards but who nonetheless engage in unethical behavior whenever they deem it in their best economic interest to do so, and if-it-is-legal-then-it-is-ethical managers. managers with high ethical standards, managers with some ethical standards in some situations, and totally corrupt managers. mostly ethical managers, somewhat ethical managers, and totally unethical managers. managers with lots of integrity, managers with some integrity, and managers with no integrity. moral managers, immoral managers, and amoral managers.

Which one of the following is not an aspect of socially responsible behavior and good corporate citizenship? o o o

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Efforts to employ an ethical strategy and observe ethical principles in operating the business Actions to create a work environment that enhances the quality of life for employees and makes the company a great place to work Actions to protect or enhance the environment and, in particular, to minimize or eliminate any adverse impact on the environment stemming from the company’s own business activities. Actions to fund non-profit subsidiaries charged with furthering worthy social causes Making charitable contributions, donating money and the time of company personnel to community service endeavors, supporting various worthy organizational causes, and reaching out to make a difference in the lives of the disadvantaged

The concept of social responsibility and good corporate citizenship concerns 

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a company’s duty to operate in an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large. top management’s duty to allocate a portion of the company’s profits to worthy social causes and charitable organizations. the responsibility that all businesses have to treat employees, customers, and suppliers fairly. top management’s duty to charge fair prices, pay fair wages, treat all employees with dignity and respect, and operate in a manner that benefits society at large. the responsibility that all businesses have to operate in a manner that promotes environmental sustainability and the overall best long-term interest of society.

The contentions that (1) many of the same standards of what’s ethical and what’s unethical resonate with peoples of most societies regardless of local traditions and cultural norms and (2) to the extent there is common moral agreement about right and wrong actions, common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances o  o

are defining beliefs of the school of ethical relativism. are defining beliefs of the school of ethical universalism. are the underpinning of integrated social contracts theory.

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is the basis for the Code of Ethical and Moral Behavior adopted and advocated by the United Nations. are the basis for the widely used and authoritative Statement of Universal Ethical Principles that was adopted at a worldwide convention of distinguished religious clerics in 1915.

According to the ethical relativism school of thought, 

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if the use of underage labor is acceptable in a particular culture/society/country, then it is ethical for a company to use underage labor in conducting its business activities in that culture/society/country. it is up to each business to set its own standards for deciding whether the use of underage labor is ethically acceptable or not. if the use of underage labor is legal in a particular country, then it is ethical for a company to use underage labor in conducting its business activities in that country, no matter what the legality of using underage labor happens to be in other countries. whether the use of underage labor is ethically acceptable or not hinges upon the ethical standards that each industry establishes for its member businesses. it is very clear that the use of underage labor is ethically impermissible even in those countries and situations where it is the local custom to utilize child labor.

Which one of the following is not among the major drivers of unethical managerial behavior?

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A company culture that puts profitability and good business performance ahead of ethical behavior Intense competitive pressures Overzealous pursuit of wealth and other selfish interests Heavy pressures on company managers to meet or beat performance targets

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The apparent pervasiveness of immoral and amoral businesspeople

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According to the school of ethical universalism, o

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if the payment of bribes/kickbacks is acceptable in a particular culture/society/country, then it is ethical for a company to pay bribes/kickbacks in conducting its business activities in that culture/society/country. it is very clear that the payment of bribes and kickbacks is ethically impermissible even in those countries and situations where it is the local custom to engage in such payments. whether the payment of bribes/kickbacks is ethically acceptable or not hinges upon the ethical standards that each industry establishes for its member businesses. if the payment of bribes/kickbacks is legal in a particular country, then it is ethical for a company to pay bribes/kickbacks in conducting its business activities in that country, no matter what the legality of paying bribes/kickbacks happens to be in other countries. it is up to each businessperson to set his/her own standards for deciding whether the payment of bribes/kickbacks is ethically acceptable or not.

According to the data in Table 9.1,

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the perception of corruption in the United States is the lowest in the world, indicating that ethical conduct in business transactions is very likely the highest in the world. the Corruption Perception Index for the United States is higher than for Canada, Australia, and the United Kingdom. only a small number of countries have a Corruption Perception Index below 7.5 and most of these are small, underdeveloped countries. the Corruption Perception Index (CPI) scores in such countries as Finland, Denmark, Sweden, the Netherlands, and Switzerland is higher (indicating lower perceived levels of corruption) than in such countries as China, India, Russia, and Brazil. there is no reason to be concerned about the lack of high ethical standards in most of the world’s countries (based on the Corruption Perception Index scores in the table).

Business ethics concerns o o

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the socially responsible actions and behaviors that a company and its personnel are expected to display in conducting business activities. a special set of rules and behavioral standards, usually established by governmental authorities or organizations such as the United Nations, that businesses worldwide are expected to observe in conducting their activities. the application of general ethical principles and standards to the actions and decisions of businesses and the conduct of their personnel. adhering to and enforcing the consensus ethical principles that companies worldwide have agreed are appropriate for all businesses and their personnel to observe the special set of ethical standards and behaviors that are applicable only to business situations and the conduct of business-related matters.

An amoral manager is one who o

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is ethically-principled most of the time but who knowingly and willingly stoops to unethical behavior if there’s low risk of discovery and the action or decision has a sizable positive effect on company profitability. believes that ethical standards are governed by societal concepts of right and wrong, not by religious views about rights and wrongs. believes that businesses ought to be able to do whatever the prevailing laws and regulations allow them to do without being shackled by any ethical considerations—in other words, whatever is legal and in accordance with prevailing rules and regulations should not be seen as unethical. believes business and ethics are not to be mixed because different rules apply in business as compared to other realms of life. believes in ethical relativism but not in ethical universalism....