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Chapter 05

Ethics, Corporate Social Responsibility, and Sustainability

True / False Questions

1. The term ethics refers to accepted principles of right or wrong that govern the conduct of a
person, the members of a profession, or the actions of an organization.

True False

2. Many of the ethical issues in international business are rooted in the fact that political systems,
law, economic development, and culture vary significantly from nation to nation.

True False

3. Leon Sullivan argued that it was ethically justified for Western businesses to operate in South
Africa so long as the companies obeyed the apartheid laws.

True False

4. The Foreign Corrupt Practices Act outlawed the paying of bribes to foreign government officials to
gain business.

True False

5. "Facilitating payments" are payments to secure contracts that would not otherwise be secured.

True False

6. The Foreign Corrupt Practices Act does not allow for "facilitating payments."

True False

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7. The Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions obliges member-states and other signatories to make the bribery of foreign public
officials a criminal offense.

True False

8. The concept of corporate social responsibility (CSR) refers to the idea that businesspeople
should consider the social consequences of economic actions when making business decisions.

True False

9. The power of a multinational corporation is constrained not only by laws and regulations, but also
by the discipline of the market and the competitive process.

True False

10. Noblesse oblige is a French term referring to those multinationals that have unethically used their
power for private gain.

True False

11. Ethical dilemmas are situations in which only one of the available alternatives seems ethically
acceptable.

True False

12. Societal business ethics are not divorced from personal ethics.

True False

13. An organizational culture that requires all decisions to be purely economic allows unethical
behavior to flourish and persist.

True False

14. Enterprises headquartered in a country which scores high on masculinity and power distance
measures are more likely to behave ethically than enterprises headquartered in a culture where
individualism and uncertainty avoidance are strong.

True False

15. According to Friedman's doctrine, the only social responsibility of business is to increase profits,
so long as the company stays within the rules of law.

True False

16. According to Milton Friedman, businesses should undertake social expenditures beyond those
mandated by the law and required for the efficient running of a business.

True False

17. According to the concept of cultural relativism, a firm, while operating in any host country, should
adopt the ethics of the culture that is predominant in its home country.

True False

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18. A righteous moralist claims that while operating in a foreign country, a multinational company
should follow the ethical standards of the host country.

True False

19. The righteous moralist's approach to ethics is typically associated with managers from developed
nations.

True False

20. Kantian ethics asserts that if a manager of a multinational sees that firms from other nations are
not following ethical norms in a host nation, that manager should not either.

True False

21. The action that produces the greatest good for the greatest number of people can result in the
unjustified treatment of a minority.

True False

22. Multinational corporations do not qualify to act as moral agents within the framework of rights
theories.

True False

23. John Rawls argues that all economic goods and services should be distributed equally except
when an unequal distribution would work to everyone's advantage.

True False

24. According to John Rawls's difference principle, wide variations in income and wealth can be
considered just if the market-based system that produces this unequal distribution also benefits
the least-advantaged members of society.

True False

25. John Rawls's veil of ignorance is a conceptual tool that contributes to the moral compass that
managers can use to help them navigate through difficult ethical dilemmas.

True False

26. Business leaders should use every relevant opportunity to stress the importance of business
ethics and make sure that key business decisions not only make good economic sense but also
are ethical.

True False

27. The internal stakeholders of a company do not have an exchange relationship with the company.

True False

28. The first step in an ethical algorithm is to identify those common resources that are not owned by
anyone in particular but are used by everybody.

True False

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29. To strengthen the moral courage of employees, companies should not retaliate against those
employees who complain about unethical actions.

True False

30. Ethics officers act as an internal ombudsperson with responsibility for handling confidential
inquiries from employees.

True False

Multiple Choice Questions

31. Which of the following refers to accepted principles of right or wrong that govern the conduct of a
person, the members of a profession, or the actions of an organization.

A. strategy
B. goodwill
C. ethics
D. mission
E. vision

32. The Sullivan principles attempted to fight against:

A. globalization.
B. apartheid laws.
C. legalization of facilitating payments.
D. democratic structures.
E. anti-dumping laws.

33. Which of the following statements is true about the Sullivan principles?

A. They were widely opposed by U.S. firms, such as General Motors, operating in South Africa.
B. They promoted the abolition of apartheid laws.
C. It has been argued that they led to the violation of human rights in South Africa.
D. They were against the introduction of democratic elections in South Africa.
E. Western businesses that followed them were considered unethical.

34. Ten years after he proposed what came to be known as Sullivan's principles, Leon Sullivan
concluded that following his principles:

A. was the most ethical way of doing business in South Africa.

B. was not sufficient to ethically justify the existence of Western businesses in South Africa.
C. would be effective only when companies opposed democracy in South Africa.
D. had led international companies to successfully combat the apartheid regime in South Africa.
E. would safeguard the citizens and businesses in South Africa from Western businesses.

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35. Due to certain strict environmental and employment standards in its home nation, Taurus Inc. has
shifted its operations to developing nations. Hence, the firm has now been able to gain
competitive advantage by avoiding costly pollution controls. This strategic move of Taurus Inc.
will be considered:

A. illegal.
B. ethical.
C. immoral.
D. uneconomical.
E. totalitarian.

36. Which of the following is most likely to be considered unethical?

A. Galaxy Inc. ceased its operations in some developing nations on account of low employment
standards in those countries.
B. Unicorn Inc. sells its medicines at a lower price in less developed nations.
C. Capricorn Inc., a multinational company operating in developing nations, pays its labor 30
percent more than what the local competitors pay.
D. Centaur Inc. had to close down a production plant as the local management there had
employed child labor.
E. Orion Inc. sends its waste products for disposal to a developing nation because the pollution
control laws in its home country are much more strict than those in the developing nation.

37. The term global commons refers to:

A. social norms and values that are common across the globe.
B. a group of nations that share similar ideologies on globalization.
C. natural resources from which everyone benefits but for which no one is specifically
responsible.
D. common laws to be obeyed by companies involved in international business.
E. arrangements, like common currencies, between countries to simplify international trading.

38. Which of the following occurs when a resource held jointly by all, but owned by no one, is
overused by individuals, resulting in its degradation?

A. Social loafing
B. Cultural relativism
C. The tragedy of the commons
D. A deadweight loss
E. Capital deepening

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Title: A matter of size

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*** START OF THE PROJECT GUTENBERG EBOOK A MATTER

OF SIZE ***
A MATTER OF SIZE
 By SAMUEL MINES

[Transcriber's Note: This etext was produced from

Thrilling Wonder Stories February 1947.
Extensive research did not uncover any evidence that
the U.S. copyright on this publication was renewed.]
Professor Hiram Dexter put the finishing touches on his toilet by
tenderly brushing out his crisp, black Vandyke beard. He stepped back to
look at himself in the mirror. He had to stoop a little for even the full-
length glass was short for his six feet four inches of gangling height.
Nevertheless he regarded his image with undiluted satisfaction.
"Ah, Dexter," he sighed, "you're a dashing rascal."
Humming tunelessly, for he was quite tone-deaf, he picked up a book
titled, "The Nutritive Quotient, Vitamin Factors And Trace Elements of
Protein-High Diets," put his hat on, the light out, and left the house.
Outside, a spring night hovered tenderly over the campus of Fredonia
College. The darkness was alive with the richness of new grass, the
vagrant perfumes of verbena, alyssum, calendula, nemophila and
ageratum, not to mention lobelia, mignonette, nicotiana, scabiosa,
Kochia and salpiglossis. He knew them all and loved every Latin
syllable.
His nostrils dilated with pleasure as he strode, with a loose, almost
clanking motion, along the concrete paths. It was a night for romance,
for tender, whispered discussions of vitamins and tissue regeneration, of
gamma rays and the atom.
Professor Dexter's heart welled with the rich pathos of life. As straight as
the curving paths would allow, he headed directly for the neat brick
house where dwelt his lady love: Professor Clarissa Wilkins, of the
Domestic Science Department.
At the foot of her steps, a shadow loomed out of the dark. It was a very
short, barrel-shaped shadow. Prof. Dexter leaned over from his great
height, to peer at it.
"Ah—is that you, Donald?" he queried.
"Who were you expecting?" snapped the tubby shadow peevishly.
"Hirohito?"
Professor Donald Curtis was in almost every way the opposite of his
friend Hiram Dexter. He was five feet two inches in his elevator shoes
and his circumference was better than that by two or three inches. He
was as quick, and jumpy in his movements as a chipmunk and he seemed
to buzz around the taller, slower-moving man like an irritated bumble-
bee. Nevertheless they were fast friends, rivals only in their physics
research—and for the hand of Professor Clarissa Wilkins.
They turned and ascended the steps together. Professor Curtis clutched to
his plump bosom a book titled: "A Statistical History of the Nutritional
Influence Upon Intelligence of the Child From One to Six." Neither were
Greeks, but they both came bearing gifts subtly slanted to their beloved's
tastes.
Professor Dexter pressed the doorbell and a muted chime rang softly
within. The door opened and light bathed them, pressing back the soft
darkness of the spring night.
"Good evening, Professor," Professor Dexter said, beaming at the lady in
the doorway.
"Good evening, Professor," Professor Curtis echoed, smiling broadly.
"Oh, it's you," Professor Wilkins said. If this had been the South she
would have said you-all.
Clarissa was an energetic spinster in her forties with snapping black
eyes, graying hair drawn into a neat, no-nonsense bun at the back of her
head and the most remarkable grasp of bio-chemistry of any woman
alive. Professors Dexter and Curtis admired her intellectual attainments
extravagantly and mistook the admiration for love.
She let them in, accepted their gifts with a murmured thanks and waved
them vaguely to chairs. She seemed a little absent-minded, a bit
distracted this evening.
Professor Dexter cleared his throat.
"A most amusing thing happened in class today," he began. "I was
lecturing—"
"That was amusing enough," Professor Curtis snapped testily. "Professor
—er—Clarissa," he said daringly, "referring to the Stefansson
experiments in living on meat alone for a year—"
"By the way," interrupted Professor Dexter, "I don't see any of those—er
—those delicious cookies you make so well, Professor. Those—ah—
little brown ones with the chocolate chips in them."
He was peering around anxiously.
A flicker of emotion crossed Clarissa's face, but was gone at once. She
rose.
"I'll get them."
She returned bearing a plate heaped high with crisp, crunchy, chocolated
cookies. The professors' eyes lighted. They reached.
Professor Dexter hurried into the conversational breach, impolitely not
even waiting for his mastication to cease.
"A most amusing thing happened in class today," he repeated.
The doorbell chimed.
Anticipation lighted up Professor Wilkins' cool gray eyes. She went to
the door and presently returned with a man in tow.
"Professor Dexter, Professor Curtis, you know Mr. Donahue, our athletic
director."
They knew Jake Donahue. They did not approve of mere muscle,
without mind. They gave his powerful, athletic figure, his rugged,
square-jawed face a disapproving glance.
"How d'ye do?" they said.
"Hi!" said Jake Donahue.
He sat down. Clarissa transferred the plate of cookies to his side. He
munched. And a surprising thing happened. Mere muscle could never
triumph over intellect, yet the Professors Dexter and Curtis found
themselves pocketed, side-tracked and elbowed aside.
The conversation was of football, racing, track, crew, basketball, pole-
vaulting, shot-putting, boxing, swimming, wrestling, baseball, not to
neglect tennis, skeet-shooting, ice-skating, skiing, horseback riding,
lacrosse, bob-sledding, jai-alai, handball and billiards.
They took it for an hour. Then they folded their tents like the Arabs and
as silently withdrew. The final blow was that Clarissa hardly seemed to
know they were departing.
Defeated, they stared at one another, when outside. The spring night was
still fulsome with perfume and romance. But the joy had gone from their
hearts, the glamour was an empty, mocking shell.
"This may be new to us, Professor, but it is a familiar thing," Curtis said
as they began to walk down the path. "The female of the species wishes
to be conquered. Hence, whatever her intellectual endowments, instinct
triumphs over intellect and she succumbs to the animal magnetism of
brute force."
"But it's Clarissa!" Professor Dexter said weakly.
"Even Clarissa. Oh, of course if she married him she would soon awake
to her horrible mistake. She would weary of an endless conversation
about basketball and foot racing. She would yearn for the rarified heights
of our discussions. But it would be too late."
"We must rescue her from this tragic error, Professor," Dexter said
firmly.
"Yes," Curtis agreed. "How? Did you ever try to change Clarissa's
mind?"
"Uh—once." Professor Dexter shuddered at the memory. "It was worse
than my fraternity initiation—which I still remember with revulsion after
twenty-six years."

They walked in moody silence for a while, Professor Curtis skipping to

keep up with his friend's loose-jointed stride. Then Professor Dexter
stopped with an exclamation.
"There is a way!" he said. "Look. It seems obvious that what Clarissa
admires in this Jake Donahue is not his conversation but his
overwhelmingly masculine physique. Do you agree?"
Curtis grunted. His own figure was a sore spot with him.
"Against Jake Donahue—let us face it—we do not cut inspiring figures. I
am too tall and you are too short. But suppose we were to change—
suppose I were to come down four or five inches and fill out
correspondingly and you were to come up ten inches and slim out
correspondingly? Then how would we compare with Donahue?"
Professor Curtis stared at him angrily.
"There may be something wrong with my ears, but I doubt it," he
snapped. "I think I heard you say what I heard you say. And I wish to
point out, with bitterness, that this is hardly the time for fanciful
pleasantries."
"Nonsense!" Professor Dexter said. "I am not joking. We have the means
in our grasp. Come along with me and I'll show you."
He hurried the protesting Curtis along, the little man's feet fairly flying to
keep up. At the darkened physics building, Dexter used his key and let
them in. They went up to the laboratory.
"You know my work on the atom," Dexter said. "I have never boasted of
my part in atomic fission which resulted in the atom bomb. I was
pledged to secrecy but there is no harm in telling you what you have
doubtless guessed, that I was one of the physicists whose work on
uranium made the bomb possible."
Curtis nodded. There was no jealousy in him, only the true scientists'
appreciation of a good job well done. He was Dexter's staunchest
booster.
"What I have done," Professor Dexter said, snapping on the lights in his
laboratory, "is to shift my research away from destructive metallurgy and
turn the light of new atom discoveries upon protoplasmic tissue. If the
atoms of metal can be shifted, altered or broken apart, why not living
tissue?"
"Because your subject would die, obviously," Curtis replied.
"They did, at first," Dexter admitted. "The reason was that the cyclotron
—" he waved at a hulking monster which looked like two giant Swiss
cheeses lying flat, one above the other "—was much too powerful to use
on living things. The problem was to use less power, apply it more
slowly, yet retain the ability to move the electrons about the nucleus."
Excitement began to pop in Professor Curtis' voluable face.
"You did it?" he stammered.
"I did it. Needing only reduced power, I scaled down the cyclotron and
incorporated the electron stream in this cathode tube. What I have here is
essentially a pocket-sized cyclotron which I am satisfied will have no
lethal effect upon living tissue."
"But what will it do?"
Professor Dexter shrugged bony shoulders.
"Anything. By exerting the proper kind of force on the electrons I can
crowd them together, thus reducing anything in size. By bombarding
them with a different intensity I can cause them to repel each other and
thus increase the size of the subject. Or—I could simply alter his
appearance by shifting the arrangement of the atom, or by knocking out
some of the electrons which would change his chemical composition."
"Then you can actually make us smaller or larger?"
"I am convinced of it. I never intended, nor expected, to put the machine
to such frivolous uses. I had dedicated it to pure science. But what is
science, after all, but a tool which man should use for a better life? And
our lives are now affected, Professor. We must use science to solve our
own problems."
"Admirably put."
Professor Dexter laid his hand on a huge shining cathode tube, whose
terminal ends were clamped in the shining copper embrace of a massive
induction coil.
"To be fair, we will need two of these. We will both undergo the
experiment simultaneously—you to grow, I to shrink. Will you take the
risk, Professor?"
Curtis clasped his hand.
"Gladly."
"Then I shall build another apparatus and as soon as it is finished we will
complete the experiment."
"I will help you, Professor," Curtis exclaimed.

Working feverishly, they completed the job in a week. Two identical

machines stood near each other on the lab floor, shining cathode tubes
poised like a pair of futuristic ray guns.
In all this time they had no word from Professor Clarissa Wilkins.
"Probably baking cookies for Jake Donahue," Dexter said bitterly.
"If he eats enough of them he'll get fat and lose his figure," Curtis said.
"But it would take too long."
They finished early one afternoon and by common consent made their
plans to go through with the experiment the next morning. Though
neither man would admit it they were just a little scared. They went
home and made their wills. Each left everything they possessed to
Clarissa.
Early the next morning, before the campus was astir with class-bound
students, they met at the laboratory. The grass sparkled with dew and all
the freshness and sweetness of a spring morning tugged at their hearts.
Professor Dexter had circles of sleeplessness under his eyes and
Professor Curtis' chubby face was drawn and haggard.
They entered the laboratory. Professor Dexter set the automatic timers on
both machines. They shook hands gravely, then, unable to find words,
took their places silently under the gleaming eyes of the cathode tubes.
Together they raised their hands and depressed the switches.
Deep in the basement a generator sprang to life and faintly they sensed
the deep rumble of its movement. The Coolidge tubes awoke as the
stream of electrons impinged upon the platinum target plates. And then
the shock of induced rays struck them, sank into them, seemed to flow
and spread to every tissue and cell.
Something was happening to Professor Hiram Dexter. He felt, first of all,
a sudden surge of nausea that rocked him on his long legs. His stomach
twisted and a paralyzing weakness turned his muscles to water and made
the lab swim unsteadily before his eyes.
At the same moment he felt a definite shrinking effect. His limbs became
suddenly heavy. He felt in the grip of a vastly increased gravity, like a
man going swiftly upward in a fast elevator. He was unable to move
because of the strange weight of his arms and legs.
Then, to his horror, he saw the Coolidge tube sliding swiftly up out of his
line of vision. The edge of the lab table came up, passed his eyeline and
began to recede toward the ceiling. He was shrinking, but too fast and
too far!
Even in that moment of undisguised terror, his scientist's mind noted that
his clothes shrank with him. The ray worked on them as well as his
living tissue.
Steadying his reeling vision, he searched wildly for Professor Curtis. Far
across the huge expanse of rough, pitted lumber which the lab floor had
suddenly become, were two shoes the size of the Queen Elizabeth. From
them two colossal legs, each like the Washington Monument, soared into
the sky. He could see only just past the knees. The rest of the torso
loomed into the distance. The ceiling was unthinkable distances beyond.
There came the click of the automatic timer. The power went off and the
Coolidge tube subsided into lifelessness. The potent stream of electrons
ceased.
Slowly the nausea lifted. He could breathe again. He stared around him,
terrified at the huge, strange cavern he was in. Judging from the apparent
girth of chair legs and similar objects near him, he was about three
inches tall! The fleeting thought crossed his mind. If a mouse should
come across him now! What a terrifying carnivore it would be!
But this was not the worst. He could not move. At first the dreadful
thought came that the rays had somehow paralyzed him. But there was
no numbness in his muscles. They were simply too heavy to lift
themselves. He stood as immobile as though he had been nailed to the
floor.
Across the room Professor Curtis was having his troubles. The ceiling
had shot down to him as it had to Alice-In-Wonderland when she had
drunk the little bottle labeled, "Drink Me."

He had hastily stooped to keep from bashing his head and he had to keep
on stooping more and more until he was bent more than halfway over
before the click of the automatic timer released him.
"This is a little too much of a good thing," he muttered and was startled
at the sound of his own voice. It was light and fluttery with a sound like
soap bubbles bursting in midair.
"Professor!" he called. "Professor Dexter! Where are you?"
The tiniest of squeaks came up to him. Still feeling light-headed and
dizzy, Curtis searched the area carefully. With horror he spotted at last,
the diminutive, toy-like figure of his friend.
He took a careful step forward. His limbs seemed to float, with little
effort, which was fortunate, for he felt as weak as though he had just
emerged from a long illness.
Then he realized there was only one way to get close. He lay down flat
on the floor, doubling up at knees and waist and got his face close to the
tiny figure of Dexter.
"Get me out of here!" the mannikin squeaked painfully. "Start the
machine and reverse it!"
Professor Curtis clambered to his feet.
If Clarissa could see us now, he thought. I am twenty feet tall and
Professor Dexter is three inches tall. What a pair!
Weakly he lumbered back to his machine and reached for the control.
Then, crowning horror of horrors! The lever sank right into his hand!
It hurt like the devil too, and he pulled back his arm with a yelp of pain.
Carefully he tried again. And again the solid metal seemed to push right
through the flesh.
Dazed, frightened, he cautiously tried to touch other objects. There was
always the same result. Everything penetrated his tissues like a needle
going through cloth. Yet he did not bleed.
Terrified, he went down on his stomach to report this new catastrophe to
Professor Dexter. The shrunken scientist groaned.
"That was the one thing I forgot," he squeaked. "I forgot that no matter
how I altered the size of the atoms in our bodies, the mass would remain
the same. Thus I am now so heavy that I cannot move. You are so light
that you have no strength and your atoms are so dispersed that solid
objects penetrate your tissues and you cannot move the switch. We are
trapped, Professor Curtis, trapped like miserable rats in a cage!"
There was a timeless moment of despair during which the two pioneers
stared at each other in hopeless terror. Only Professor Curtis saw a mere
pinpoint of white face too small for features, while Professor Dexter saw
a huge floating blob of a planet like the full moon looming over him.
There was a sudden and welcome interruption. The door banged and
Clarissa Wilkins' crisp efficient voice came to their ears.
"What's going on in here?" she demanded. "Professor Curtis, is that you?
What have you been doing to yourself? Get up off the floor!"
"Careful!" Professor Curtis panted, beginning to unjoint himself. "Don't
step on Professor Dexter!"
"Step on him? My heavens, where is he?"
"She wouldn't hurt me if she did," Dexter groaned to himself. "Probably
break her foot."
"Clarissa—er—Professor Wilkins, turn on the machine for us!" Curtis
gasped, pointing wildly to the starting switch.
"Tell her to reverse the polarity!" Dexter squeaked.
Clarissa snorted as she moved purposely toward the machine.
"I always thought you two theorists were too childlike to be left alone,"
she snapped. "I knew you'd get into trouble and need a woman to get you
out!"
Efficiently she reversed and started the machine as Professor Curtis
stepped into the path of the rays. Before her startled eyes he shrank—
shrank—shrank back to his normal elevator-shoed tubbiness, and the
timer clicked off the machine.
With a gasp of relief, Professor Curtis leaped forward and did the
necessary for Dexter's machine. To Clarissa's even greater wonder,
Dexter grew rapidly out of the floor and shot up into his normal gangling
six feet four.
Both scientists faced each other with beads of sweat on their brows.
Their hands met silently.
"When you two get through admiring one another, I'll tell you what I
came here for," Clarissa said crisply. "I just wanted you to know that I
am going to marry Mr. Donahue!"
They heard her go, but the sense of loss did not come. The sense of relief
persisted.
"She's a wonderful woman," Professor Curtis said softly.
"Yes," agreed Professor Dexter. "But you see now what difficulties this
mating instinct is apt to bring on? This insane desire to please an
illogical woman? Professor Curtis we have had a narrow escape!"
"You are right," Curtis said gloomily.
"Besides," Professor Dexter sighed, "I think it was those chocolate chip
cookies she baked so well that I was really in love with. I am going to
miss them."
"Maybe she'll let us drop around some evenings and she'll bake us
some," Curtis suggested.
Their eyes brightened. All was not lost.
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