When we leave home and cross our nation’s boundaries, moral clarity often blurs. Without a backdrop of shared attitudes, and without familiar laws and judicial procedures that define standards of ethical conduct, certainty is elusive. Should a company invest in a foreign country where civil and political rights are violated? Should a company go along with a host country’s discriminatory employment practices? If companies in developed countries shift facilities to developing nations that lack strict environmental and health regulations, or if those companies choose to fill management and other top-level positions in a host nation with people from the home country, whose standards should prevail? A version of this article appeared in the September–October 1996 issue of Harvard Business Review.
In order to continue enjoying our site, we ask that you confirm your identity as a human. Thank you very much for your cooperation. organize boycotts of products that do not meet their standards. Consumer laws protect consumersfrom dangerous products and require adherence to government standards for many products (See2-6 "Public Responsibilities of Business" in Chapter 2 for more information.)The purpose of the Environmental Protection Agency (EPA), a federal agency, is tothe lawsdesigned to protect the environment.The primary purpose of the Environmental Protection Agency is enforcing the laws designed toprotect the environment. (See 2-8 "Environmental Concerns" in Chapter 2 for more information.)Most firms begin the process of reducing their impact on the environment byMost firms begin the process of reducing their impact on the environment by identifying andeliminating inefficiencies in production and operations. They also eliminate their impact on the 9.Ethics is the study of right and wrong and of morality of the choice’s individuals make. Which of the followingmost correctly explains the definition of "business ethics"?Business ethics is the application of moralstandards to business situations.10.Which of the following statements is most correct regarding ethical issues concerning satisfying stakeholders'interests in a business?Customers expect a firm's products to be safe, reliable, and reasonably priced.11. Ethical problems can have an extremely detrimental effect on relationships among co-workers. Which of thefollowing would NOT be an ethical problem created by employee relationships?Investors expecting a returnon their investment regardless of the cost.12. Which of the following is NOT an individual factor affecting ethics?Cultural norms.13. Caveat emptor is a Latin phrase that means "let the buyer beware." It was used to express the doctrine used bybusinesses during the 1900s that meant "what you see is what you get." Which of the following statementsabout this doctrine and its application is false?During the 1900s government became involved in day-to-daybusiness activities regularly to limit the free-market system.14.Which of the following statements is true regarding encouraging ethical behavior?The government canencourage ethical behavior in business by enacting more stringent regulations such as the Sarbanes-OxleyAct of 2002.15.Which of the following statements is true about whistle-blowing?Those who "blow whistles" may faceretaliation and sometimes even lose their jobs.16.Pollution has become a significant environmental issue for governments, society, and business; which of thefollowing is NOT true about pollution.One of the driving forces behind the production of waste isunreasonable expectations by consumers that all products, including fruits and vegetables, must be perfectto be consumed. |