True / False Questions
1. Business transactions in different countries do not force North American companies to revisit
the ethical principles to which they are committed.
True False
2. Less-developed nations are countries that lack the economic, social, and technological
infrastructure of a developed nation.
True False
3. Less-developed nations stereotypically know how to play the game of globalization.
True False
4. Any country that enjoys a high standard of living as measured by economic, social, and
technological criteria is a developed nation.
True False
5. Less-developed countries lack the economic, social, and technological infrastructure of a
developed nation.
True False
6. Developed nations typically have a low standard of living.
True False
7. Utilitarianism is ethical choices that offer the greatest good for a small portion of individuals
within a nation.
True False
8. The assumption that "what works here works there" has made several companies extremely
wealthy over the years.
True False
9. International markets represent growth, and with profitable growth comes happy shareholders
and rising stock prices.
True False
10. From a business ethics perspective, the constant hunger for growth at any cost does not
present an ethical dilemma.
True False
11. When you focus on doing the greatest good for the greatest number of people, there is no
accountability for individual actions.
True False
12. The term globalization only has applications in economic and political environments.
True False
13. Globalization is the expansion of international trade to a point, where regional trade blocs
have overtaken national markets, leading eventually to a global marketplace.
True False
14. A multinational corporation is a company that operates across multiple national borders in
the provision and sale of products and services.
True False
15. Multinational corporations are also referred to as crossnational corporations.
True False
16. Critics argue that most MNCs have chosen to ignore all ethical standards in the pursuit of the
all mighty dollar.
True False
17. Critics have argued that most MNCs ignore all ethical standards in the pursuit of the
almighty dollar because if they didn't pursue the business, somebody else would, and they are
operating in full compliance with local laws and regulations.
True False
18. Ethical relativism exists when ethical principles are defined by the traditions of a person's
society, his or her personal opinions, and the circumstances of the present moment.
True False
19. The term globalization has the same meaning for both developed and less developed
countries.
True False
20. The ideal "black and white" world of ethics must give way to a gray area of ethical
relativism.
True False
21. Globalization can be seen as having an upside only.
True False
22. Critics have argued that the moral temptations of global expansion have grown weaker so
MNCs tend to ignore them.
True False
23. The Global Code of Conduct is a general standard of business practice that can be applied
equally to all countries over and above their local customs and social norms.
True False
24. For advocates of global ethics, a flexible solution has to be found, one that provide standards
of practice to guide managers as they conduct business across national boundaries, while
respecting the individual customs of the countries in which they are operating.
True False
25. Even though we are now seeing the development of larger trading blocs, as neighboring
countries work together, the individual countries within those trading blocs are not disappearing.
True False
26. "Do no intentional harm" is one of the guidelines for organizations offered by Richard
DeGeorge.
True False
27. "Contribute to the host country's development" and "Respect the human rights of your
employees" are two of the guidelines for organizations offered by Richard DeGeorge.
True False
28. Richard DeGeorge's guidelines present something of an ethical ideal that reveal some of the
most severe transgressions which have brought negative attention to the ethical behavior of
MNCs.
True False
29. In the pursuit of profit and continued expansion, MNCs have been guilty of bribery,
pollution, false advertising, and questionable product quality.
True False
30. At this time, only a handful of global companies are large enough to have a dramatic impact
on trade levels just with their own internal transactions.
True False
31. Enforcing ethical behavior, once it crosses national boundaries, becomes extremely difficult.
True False
32. Enforcing a global ethical standard would require the United Nations to set acceptable
standards of behavior and appropriate consequences for failing to abide by those standards.
True False
33. In 1999 the UN Global Compact became operational.
True False
34. The UN Global Compact is a voluntary corporate citizenship initiative endorsing 10 key
principles that focus on four key areas of concern: the environment, anticorruption, the welfare
of workers around the world, and global human rights.
True False
35. The UN Global Compact is a voluntary corporate citizenship initiative endorsing 12 key
principles that focus on five key areas of concern.
True False
36. The Global Compact is a regulatory instrument, which is relied upon to police, enforce, and
measure the behavior or actions of companies.
True False
37. Global Citizenship represents a commitment to promote good corporate citizenship, with a
focus on four key areas.
True False
38. Under the labor standards of the Global Compact, businesses should uphold the freedom of
association and the effective recognition of the right to collective bargaining.
True False
39. Under the anticorruption areas of concern of the Global Compact, businesses should work
against all forms of corruption, including extortion and bribery.
True False
40. OECD Guidelines for Multinational Enterprises promote principles and standards of behavior
in the areas of: human rights, information disclosure, anticorruption, taxation, labor relations,
environment, competition, and consumer protection.
True False
41. The OECD guidelines carry criminal and civil enforcement.
True False
42. The UN's Global Compact represents a more governmental approach to the same issues
featured in the OECD Guidelines for Multinational Enterprises.
True False
43. The disclosure chapter of the OECD guidelines recommends disclosure on all material
matters and encourages communication in areas where reporting standards are still emerging
such as social, environmental, and risk reporting.
True False
44. The environment chapter of the OECD guidelines requires by law that enterprises raise their
performance in protecting the environment.
True False