The ________ outlawed the paying of bribes to foreign government officials to gain business. The term bribery means to give money, of gifts, in cash or kind to someone in order to persuade them to make favorable and biased decisions for business gains. The ________ occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation. An agent or employee owes a (duty of loyalty) to the principle or employer. The products of Carmen Stores, an international sports apparel chain, are manufactured in sweatshop factories in China. Fraud schemes tend to be extremely costly. B) UN Universal Declaration of Human Rights. 1. Gaining of property or money by almost any kind of force, or threat of violence, property damage, harm to reputation, or unfavorable government action. The factory used child labor, which he disapproved of, but he knew the families of these children might starve without their income. Giving or receiving anything of value to influence a business decision without the employer's consent or knowledge. Gifts, travel, entertainment, wine or liquor, clothes, sexual favors, lavish entertainment, free transportation, corporate jet, construction of home, home improvement, or gifts from briber's inventory. Grady most likely decided to follow the example of. Bribery is mostly prevalent among the third world countries due to many reasons. This is why professional bodies worâ¦ According to ________, the social responsibility of business is to increase profits, so long as the company stays within the rules of law. An international U.S.-based company sets up a production unit in a developing country with poor environmental regulations. 1. Considering bribery to simply be a necessary evil or the way business is done are attitudes that become deeply ingrained in people and are difficult to purge. The public relations manager is using which of the following philosophical doctrines to defend the actions of the company? Which of the following is a reason managers working abroad in multinational firms may behave in a manner that is unethical? There was no economic reason for BP to make this social investment, but the company believes it is morally obligated to give something back to the societies that have made its success possible. The public relations manager of the company defends the company's actions as being ethically sound; he states that in the host country, paying bribes to government officials is the accepted norm and is in keeping with the social practices in the host country. A) all of his or her particular characteristics. Start studying Corruption in International Business. In the international business setting, one of the most common ethical issues involves. According to the company president, using sweatshop labor offers a means of livelihood to children and young adults, as well as supplies good quality apparel to customers at a lower cost. Justice theories of business ethics focus on. The destruction or fraudulent appropriation of another's money or merchandise by the person entrusted with it. The Truth About Bribery and Doing Foreign Business The probe into Walmart's alleged bribery of public officials is interesting, but perhaps unsurprising. C) businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business. How the Foreign Corrupt Practices Act is Changing International Business Practices. The idea that businesspeople should consider the social consequences of economic actions when making business decisions and that there should be a presumption in favor of decisions that have both good economic and social consequences is known as. Business ethics that either deny the value of business ethics or apply the concept in a very unsatisfactory way are termed. 2. A British firm that sets up production units in China is accused of releasing untreated chemical waste into water bodies. The OECD Anti-Bribery Convention establishes legally binding standards to criminalise bribery of foreign public officials in international business transactions and provides for a host of related measures that make this effective. The common practice of g uanxi is a custom for building connections and relationships based on gifts, banqueting, or small favors. ________ arguments suggest that improving working conditions beyond the level required by the law and necessary to maximize employee productivity will reduce profits and are therefore not appropriate. Yet, companies from major exporting countries continue to use bribery to win business in foreign markets while â¦ BP's actions are an example of. It looks like your browser needs an update. Drown government with documentation (example: IBM - 75 million pages). Companies can strengthen the ________ of employees by committing themselves to not retaliate against employees who complain about unethical actions. It looks like your browser needs an update. Josiah was managing a factory in India, and had a decision to make. In fact, anti-bribery efforts are good for business. Grady works at a fast food restaurant. Access answers to thousands of international business questions with explanations that are easy for you to work through. B) Environmental regulations are similar across developed and developing nations. It impedes cross-border investment, deters fair competition in international trade and discriminates against small and medium size companies. Oh no! What approach to business ethics is the manager using? A) each person should be permitted the maximum amount of basic liberty compatible with a similar liberty for others. 1. Agent must act in the best interest of the principle and cannot seek personal interest to the detriment of the principle. The U.S. State Department is playing a leading role in a broad interagency effort to eliminate bribery in international business transactions. Search. Rawls' philosophy that inequalities are justified if they benefit the position of the least-advantaged person is known as the. 1. DAVID RISING. Enacted as a statue to combat racketeering in labor-management disputes. Giving or receiving anything of value because of an official act. In its extreme viewpoint, ________ suggests that if a culture supports slavery, it is all right to use slave labor in the country. To ensure the best experience, please update your browser. Conduit for payoffs; knows local agents customs and what to use as payoffs. Combatting unethical practices such as bribery is a matter of changing the way people think. Living beyond your means or financial distress. The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes. Which of the following approaches to business ethics would justify the actions of the multinational company? D) permitted under the amended Foreign Corrupt Practices Act. D) inequalities are justified if they benefit the position of the least-advantaged person. Which of the following is an example of an external stakeholder? More subtle form of influence peddling directed towards elected officials. In Mexico, "mordida" is a way of life. Can accept campaign contribution but NOT influence decisions or votes. 1. ________ approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate ethical decision making in a multinational enterprise. According to the ________ point of view, a firm should adopt the ethics of the culture in which it is operating. See the full statement here. Michael Izza, ICAEW Chief Executive, said: 'Corruption does not just enrich criminals, it does untold damage to society and business by undermining trust. Often, the code of ethics draws heavily upon documents such as the ________, which itself is grounded in Kantian and rights-based theories of moral philosophy. The emphasis on anticorruption poliâ¦ An American manager in Colombia routinely pays off the local drug lord to guarantee that his plant will not be bombed and that none of his employees will be kidnapped. Knowingly making a false statement relating to a matter within the jurisdiction of a government agency. Most countries have laws against bribery of their own officials, but only a few, including the U.S., have laws prohibiting its nationals and corporations from bribing foreign officials. Usually state, local, or "third world" countries. The Foreign Corrupt Practices Act (FCPA), also known as the Bribery Act, is a federal law that: Prohibits any corporation with business holdings in the United States (also known as an âissuerâ) from bribing a foreign official or committing other criminal acts in order to obtain or maintain business. The United Nations Universal Declaration of Human Rights, related to employment, upholds which of the following? B. challenged the creativity of American managers and consultants to develop ways to work around the FCPA. Bribery of Foreign Public Officials in International Business Transactions of 25 May 2009 [C(2009)64], the Recommendation of the Council on Bribery and Officially Supported Export Credits of 14 December 2006 [C(2006)163], the Recommendation of the Development Assistance Committee on Which of the following observations about the Foreign Corrupt Practices Act is true? B) the moral worth of actions or practices is determined by their consequences. Refusal to voluntarily provide requested documents; legal battle. D. resulted in American foreign business going to Japanese and German businesses. In some cultures, there may be conflicts with global business practices, such as in the area of gift giving, which has evolved into briberyâa form of corruption. A bribe is an illegal act involving the exchange of consideration, such as money, with the purpose of influencing behavior. Which of the following refers to the values and norms that the employees of an organization share? Some cultures do not believe bribery is much of an issue at all and do not see the need to seek its prosecution. A) first-, second-, and third-order consequences that are hard to quantify. when companies fight to eliminate bribery and corruption, try to protect the environment, and work to improve working conditions, they are practicing _____. Occurs when an official has an undisclosed interest in a transaction, which causes or can potentially cause harm to the company or agency. The veil of ignorance was developed by ________ as part of his approach to justice theories. Paying bribes is relatively common in many countries, and bribes often take the form of grease payments, which are small inducements intended to expedite decisions and transactions. Delay game, over compliance, outright threats and coercion, and spoliation of evidence. B) a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. The topic of bribery has a long history, and bribery seems to be an arena in which our moral views are changing. To ensure the best experience, please update your browser. ________ enables managers to walk away from a decision that is profitable but unethical. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Which of the following, in a business setting, is taken to mean benevolent behavior that is the responsibility of successful enterprises? bribery has been linked to high-profile corruption and fraud cases in the United States, rocking the international marketplace for companies such as Pfizer, Avon, Johnson & Johnson, and Daimler AG. The manager's argument exemplifies which of the following ethical approaches? Anti-bribery efforts are too often dismissed as a form of corporate social responsibility. To bribe someone typically means to gain some sort of favor through illegal payments of money or other inducements. BERLIN (AP) - Companies from Russia, followed closely by those from China, are seen as most likely to use bribery to secure foreign contracts, according to a new survey released Wednesday by Transparency International. 4. â¦ The 10 Countries Most Likely To Use Bribery In Business. Guanxi -related gifts can be considered bribery by foreign companies and by national and international anti-corruption laws.