International Business Ethics
Chapter Exam Questions
Course Introduction
International Business Ethics explores the principles and challenges involved in ethical decision-making within the global business environment. The course examines the ethical issues that multinational organizations face, including cultural relativism, corporate social responsibility, labor standards, corruption, and environmental sustainability. Students will analyze real-world case studies to understand how ethical frameworks and regulatory requirements vary across countries and impact business strategies. By the end of the course, students will be equipped to identify ethical dilemmas and propose responsible solutions that balance profitability with integrity and global citizenship.
Recommended Textbook
Understanding Business Ethics 3rd Edition by
Peter A. Stanwick
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Page 2
Chapter 1: The Foundation of Ethical Thought
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Q1) The supporters of the ethical egoism theory would argue that businesses should focus solely on their own self-interests and maximize their level of profitability by developing a strong competitive advantage.
A)True
B)False
Answer: True
Q2) Within the analytical ethics context, there is no interpretation of the facts or assumptions concerning why certain courses of action took place.
A)True
B)False
Answer: False
Q3) The _____________ principle is the belief that employees have a responsibility to supply information when it is requested by various stakeholders.
A) Reliability
B) Responsiveness
C) Self-respect
D) Transparency
Answer: B
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Chapter 2: The Evolving Complexities of Business Ethics
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Q1) All of the following are types of tests that an individual can use to evaluate the integrity of his or her actions except
A) Publicity
B) Reliability
C) Trusted friend
D) Golden Rule
Answer: B
Q2) All of the following represent one of the thirteen behaviors that can help identify the level of integrity in individual action except
A) Reproaching just acts
B) Possessing humility
C) Maintaining reciprocity
D) Taking responsibility
Answer: C
Q3) Trust within an organization reinforces and encourages delegation of decisions, mutual concern, and whistle-blowing
A)True
B)False
Answer: False
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Page 4
Chapter 3: Stakeholders and Corporate Social Responsibility
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Sample Questions
Q1) Which of the following types of philanthropy configuration is based on a firm having both a low market and low competence orientation?
A) Constricted philanthropy
B) Peripheral philanthropy
C) Dispersed philanthropy
D) Strategic philanthropy
Answer: C
Q2) The relationship between the firm and its suppliers is solely commercial and financially based.
A)True
B)False
Answer: False
Q3) Which of the following types of firms recognizes the current and future benefits of interactions with various stakeholders?
A) Skeptical firm
B) Pragmatic firm
C) Engaged firm
D) Idealistic firm
Answer: B
Page 5
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Chapter 4: Ethics and Financial Reporting
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Sample Questions
Q1) In direct response to the corporate scandals of Enron and WorldCom, the U.S. Congress passed the Sarbanes-Oxley Act in 2002.
A)True
B)False
Q2) _____________ consists of an inspection of the accounting records and other information deemed necessary to express an opinion on the fairness and adequacy of the financial statements.
A) An exploration
B) A compilation
C) A debate
D) An audit
Q3) Which is not one of the five philosophical prepositions of external financial reporting ?
A) External realism
B) Subjective judgement
C) Insider trading practices
D) Commitment to rationalism
Q4) In a short essay, list and discuss the five individual moderators that affect the individual-level antecedents of fraud.
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Chapter 5: Ethical Leadership and Corporate Governance
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Q1) The principles of ethical power include all of the following except
A) Punishment
B) Purpose
C) Perspective
D) Patience
Q2) ______________ should view themselves as active owners of the firm, not just investors.
A) Board of directors
B) Institutional shareholders
C) Senior management
D) Employees
Q3) The _______________ of ethical power refers to the leader establishing a long term vision for the organization.
A) Purpose
B) Perspective
C) Persistence
D) Patience
Q4) In a short essay, list and discuss the six core ethical values that are recommended to guide the behavior of board members.
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Chapter 6: Strategic Planning, Corporate Culture, and Corporate Compliance
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Q1) In the Snyder model that develops a framework to address ethical crises, ________________ crises occur within the organization but are rare and unpredictable.
A) Internal-normal
B) External-normal
C) Internal-abnormal
D) External-abnormal
Q2) An ethical crisis occurs when an event that was not part of the normal course of action for a firm takes place and affects the firm.
A)True
B)False
Q3) The ethical cycle begins with the identification of the current ethical culture.
A)True
B)False
Q4) Which of the following is defined as the use of intimidation or power in return for a financial benefit?
A) Extortion
B) Bribery
C) Embezzlement
D) Fraud
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Chapter 7: Decision Making and Human Resource Issues
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Q1) An extreme job is one where the employee works in a hostile environment climatically or geographically.
A)True
B)False
Q2) Resultant luck is based on the background, family support system, and life experiences a person has before the moral decision is made.
A)True
B)False
Q3) The Triangle Shirtwaist Factory was located in _____________.
A) Detroit
B) San Francisco
C) Dallas
D) Manhattan
Q4) Which of the following types of diversity is based on having employees with different educational and/or professional backgrounds?
A) Traits and value diversity
B) Task-related diversity
C) Demographic diversity
D) Geographic diversity
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Chapter 8: Ethics and the Environment
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Q1) In the opening case which of these outcomes do the billboards not fulfill?
A) Purified water
B) Advertising
C) Electricity generation
D) Purified air
Q2) The roots of the tragedy of the commons concepts go back to ____________, who stated that what is common to most people will receive the least amount of care.
A) Friedman
B) Aristotle
C) Socrates
D) Kant
Q3) _______________ can be defined as the systematic equal allocation of environmental benefits and burdens.
A) Environmental auditing
B) Ethical justice
C) Environmental justice
D) Environmental accounting
Q4) In a short essay, explain the concept of the Tragedy of the Commons.
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Page 10
Chapter 9: Ethics and Information Technology
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Q1) One of the provisions of the USA PATRIOT Act is ensure that every designated firm creates the position of compliance officer. Which of the items below is not one of the key duties?
A) Approve a written antimoney laundering program
B) Written policies, procedures, and controls to prevent and detect money laundering
C) Administering the firm's computer monitoring program
D) An ongoing employee training program
Q2) Issues that need to be addressed in the workers' rights policy include the type of monitoring that can take place within the firm, the type of information that may be collected pertaining to the employee, and the identification of what information would be considered private versus public.
A)True
B)False
Q3) ________________ is a common attitude toward the illegal download of music.
A) It benefits artists
B) It is on the Internet, so I can copy it for free
C) It is my right
D) Intellectual property rights are not relevant
Q4) In a short essay, explain the USA PATRIOT Act.
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Chapter 10: Ethics and Information Technology
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Q1) The Tobacco Plain Packaging Act was passed by the United States in 2011.
A)True
B)False
Q2) During the 2002 hurricane in Baton Rouge, Louisiana, what was the opportunistic price of the flashlight?
A) $4.97
B) $7.99
C) $11.98
D) $14.97
Q3) The International Obesity Taskforce has established guiding principles in order to attempt to protect children against the negative impact of food and beverage advertising.
A)True
B)False
Q4) The cause of the Johnson and Johnson Tylenol contamination case was______________.
A) Faulty manufacturing processes
B) Contaminated raw materials
C) Injection of cyanide into capsules
D) Customers taking incorrect doses
Page 12
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Chapter 11: Ethical Issues in the Developing World
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Q1) A social entrepreneur who focuses on addressing the social needs of local communities is referred to a(n) ______________.
A) Social bricoleur
B) Social constructionist
C) Social technologist
D) Social engineer
Q2) In a short essay, list and discuss the three types of social entrepreneurs. Include an example of each type of social entrepreneur to support your answer.
Q3) In 2013, _____million people lived in poverty in the United States.
A) 5.7 million
B) 10 million
C) 37 million
D) 45.3 million
Q4) Fair Trade licensees receive three benefits of being Fair Trade certified. Which is not one?
A) Charge higher prices
B) Expect higher revenues
C) Increase their workforce
D) Improve their images and reputations
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Chapter 12: Establishing a Code of Ethics and Ethical Guidelines
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Q1) In a short essay, describe the main elements of a Living Code of Ethics.
Q2) In the opening case "How We're Fixing Up Tyco," which of the following individuals was the senior vice president of corporate governance at Tyco who had the responsibility of repairing the tarnished image of the diversified conglomerate?
A) Jack Welch
B) Ken Lay
C) Charles Prince
D) Eric Pillmore
Q3) The three major stages of the TRM system are unfreezing, moving, and refreezing.
A)True
B)False
Q4) Which of the following is an example of POOR practice in making a code of conduct effective?
A) Set up an ethics committee within the board of directors
B) Review and make adjustments to the code when necessary
C) Assign one unit within the company to be responsible for the effectiveness of the firm's ethical commitment
D) Make sure senior staff set the correct example by "walking the talk"
Page 14
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Chapter 13: Evaluating Corporate Ethics
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Q1) Ethics hotlines can take a number of organizational forms. Which is not one?
A) In-house
B) Outsourced
C) Hybrid
D) Customer service department based
Q2) As multinational corporations approach the issue of ethics training programs, the level of complexity increases due to the intricacies of doing business in a global environment.
A)True
B)False
Q3) Feminine cultures focus on material goods, status, accomplishment, and reward for ambition.
A)True
B)False
Q4) In a short essay, explain whistle-blowing and list the four-step process that must take place before a firm is notified by a whistle-blower of potentially unethical behavior.
Q5) Many corporations are finding themselves appointing ethics officers.
A)True
B)False
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