File: ch11.rtf, Chapter 11, Managing for Ethics and Social Responsibility in a Global
Environment
True/False
1. Spouses of high level expatriate managers generally serve in a corporate “ambassador” role.
Ans: True
Response: See page 400.
Difficulty: Easy
2. Fluency in a foreign language assists with verbal communication, but helps little in
understanding the culture.
Ans: False
Response: See page 401.
Difficulty: Easy
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.
Difficulty: Easy
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.
Difficulty: Medium
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5. The term cultural intelligence (CQ) has been used to describe an individual’s ability to be
effective in cross-cultural situations.
Ans.: True
Response: See page 400
Difficulty: Medium
6. Ethical issues are universal and do not vary from culture to culture.
Ans: False
Response: See page 411.
Difficulty: Easy
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.
Difficulty: Medium
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.
Difficulty: Medium
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10. A country’s sociopolitical environment increases the number of ethical questions with a
company must deal.
Ans: True
Response: See page 418.
Difficulty: Medium
11. Many overseas assignments end early and unsuccessfully because the expatriate manager’s
and the manager’s family’s inability to adjust to the foreign work environment.
Ans.: True
Response: See page 400
Difficulty: Easy
12. Workers in a culture of low power distance may be more willing to question the boss’s
authority or even blow the whistle on an unethical manager.
Ans.: True
Response: See page 403
Difficulty: Medium
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
Difficulty: Easy
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.
Difficulty: Difficult
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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 employee’s release and
to not pay a ransom.
Ans. False
Response: See page 408
Difficulty: Difficult
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
Difficulty: Medium
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
Difficulty: Difficult
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
Difficulty: Difficult
19. More and more consumers say that corporate citizenship influences their buying habits.
Ans.: True
Response: See page 419
Difficulty: Easy
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20. According to researchers at Harvard, in developing their firm’s 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
Difficulty: Medium
Multiple Choices
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.
Difficulty: Medium
22. Which of the following is false?
a) Organizations are affected by the expatriate manager’s ability to adjust to the new setting.
b) Organizations are not affected by the expatriate family’s 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.
Difficulty: Easy
23. Which of the following is false?
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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.
Difficulty: Medium
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.
Difficulty: Easy
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.
Difficulty: Easy
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
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Ans: a
Response: See page 403.
Difficulty: Medium
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 partner’s behavior.
c) Canadian and Japanese negotiators are the least flexible to their negotiation partner’s behavior.
d) Negotiators generally do not adapt their negotiation behavior to that of the negotiation partner.
Ans: a
Response: See pages 406-407.
Difficulty: Medium
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 culture’s behavior despite language proficiency.
Ans: b
Response: See page 405.
Difficulty: Medium
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.
Difficulty: Medium
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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.
Difficulty: Easy
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.
Difficulty: Easy
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.
Difficulty: Medium
33. ____________ assumes absolute truths that would require exactly the same standard and
behavior in every culture.
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a) Ethical imperialism
b) Ethical relativism
c) Cultural imperialism
d) Cultural relativism
Ans: a
Response: See page 413.
Difficulty: Easy
34. of the following statements about the Organization for Economic Cooperation and
Development (OECD) Anti-Bribery Convention (the “Convention”) which are untrue.
a.
b.
c.
d.
e.
f.
g.
Participating countries include countries in Western Europe and North America
The Convention requires signatories to make it a crime to bribe foreign public officials
The Convention includes the application of criminal penalties
The Convention bans gifts to political parties
The Convention outlaws tax deductibility for bribes
All are statements are true
Statements d and e are untrue
Ans.: g
Response: See page 426
Difficulty: Difficult
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.
b.
c.
d.
e.
Child labor
Forced labor
Health and safety
Discrimination
All of the above
Ans.: e
Response: See page 423
Difficulty: Medium
Short Answer
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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 Reebok’s 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 Reebok’s
Code requirements come up to standards.
Response: See page 423.
Difficulty: Medium
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