Globus Final Exam | Latest Questions with
100% Correct Answers
The Sarbanes-Oxley Act (2002) - ✔️✔️Requires that publicly traded firms have a code of ethics or
else explain in writing to the Securities and Exchange Commission why they do not.
Three schools of thought exist about the extent to which ethical standards apply across
countries and cultures: - ✔️✔️Ethical Universalism
Ethical Relativism
Integrative Social Contracts Theory
According to the school of ethical universalism - ✔️✔️Some concepts of what is right and what is
wrong are universal and transcend most all cultures, societies, and religions.
All societies, companies, and individuals are accountable to a set of universal ethical standards.
The school of ethical relativism - ✔️✔️What is ethical or unethical must be judged in light of local
moral standards and can vary from one country to another.
When there are local differences in what is deemed an ethical or unethical, it is appropriate for
local moral standards to take precedence.
The risks of ethical relativism - ✔️✔️The assumption that local morality is an adequate guide for
ethical behavior.
Conflicts in applying differing ethical standards across different locales and varying situations.
The ethical relativism rule of "when in Rome, do as the Romans do" presents problems - ✔️✔️It
is ethically dangerous for company personnel to assume that local ethical standards are an
adequate guide to ethical behavior.
, According to the integrative social contracts theory, ethical standards a firm should uphold are
governed by both: - ✔️✔️A limited number of universal ethical principles that are widely
recognized
and
The circumstances of local cultures
Integrative social contracts theory provides - ✔️✔️That "first-order" universal ethical norms
always take precedence over "second-order" local ethical norms when local norms are more
permissive.
A firm practicing social responsibility seeks to balance the interests of all stakeholders: - ✔️✔️Its
economic responsibility to shareholders.
Its legal responsibility to comply with the laws of the countries where it operates.
Its ethical responsibility to abide by society's norms .
Its discretionary philanthropic responsibility to meet the unmet needs of society.
Common Corporate Social Responsibility (CSR) Initiatives - ✔️✔️Efforts to employ an ethical
strategy and observe ethical principles in operating the business.
Making charitable contributions, supporting community service endeavors, engaging in broader
philanthropic initiatives, and reaching out to make a difference in the lives of the
disadvantaged.
Environmental sustainability strategies - ✔️✔️Entail actions to operate businesses to protect and
enhance natural resources and ecological support systems, to guard against outcomes that
endanger the planet, and to be sustainable for centuries.
Are directed at improving a firm's triple bottom line (TBL)—its performance on economic,
environmental, and social metrics.
Why Companies Expand into
International Markets - ✔️✔️To gain access to new customers.
To achieve lower costs and enhance the firm's competitiveness.
100% Correct Answers
The Sarbanes-Oxley Act (2002) - ✔️✔️Requires that publicly traded firms have a code of ethics or
else explain in writing to the Securities and Exchange Commission why they do not.
Three schools of thought exist about the extent to which ethical standards apply across
countries and cultures: - ✔️✔️Ethical Universalism
Ethical Relativism
Integrative Social Contracts Theory
According to the school of ethical universalism - ✔️✔️Some concepts of what is right and what is
wrong are universal and transcend most all cultures, societies, and religions.
All societies, companies, and individuals are accountable to a set of universal ethical standards.
The school of ethical relativism - ✔️✔️What is ethical or unethical must be judged in light of local
moral standards and can vary from one country to another.
When there are local differences in what is deemed an ethical or unethical, it is appropriate for
local moral standards to take precedence.
The risks of ethical relativism - ✔️✔️The assumption that local morality is an adequate guide for
ethical behavior.
Conflicts in applying differing ethical standards across different locales and varying situations.
The ethical relativism rule of "when in Rome, do as the Romans do" presents problems - ✔️✔️It
is ethically dangerous for company personnel to assume that local ethical standards are an
adequate guide to ethical behavior.
, According to the integrative social contracts theory, ethical standards a firm should uphold are
governed by both: - ✔️✔️A limited number of universal ethical principles that are widely
recognized
and
The circumstances of local cultures
Integrative social contracts theory provides - ✔️✔️That "first-order" universal ethical norms
always take precedence over "second-order" local ethical norms when local norms are more
permissive.
A firm practicing social responsibility seeks to balance the interests of all stakeholders: - ✔️✔️Its
economic responsibility to shareholders.
Its legal responsibility to comply with the laws of the countries where it operates.
Its ethical responsibility to abide by society's norms .
Its discretionary philanthropic responsibility to meet the unmet needs of society.
Common Corporate Social Responsibility (CSR) Initiatives - ✔️✔️Efforts to employ an ethical
strategy and observe ethical principles in operating the business.
Making charitable contributions, supporting community service endeavors, engaging in broader
philanthropic initiatives, and reaching out to make a difference in the lives of the
disadvantaged.
Environmental sustainability strategies - ✔️✔️Entail actions to operate businesses to protect and
enhance natural resources and ecological support systems, to guard against outcomes that
endanger the planet, and to be sustainable for centuries.
Are directed at improving a firm's triple bottom line (TBL)—its performance on economic,
environmental, and social metrics.
Why Companies Expand into
International Markets - ✔️✔️To gain access to new customers.
To achieve lower costs and enhance the firm's competitiveness.
