Multiple choice

Which of the following statements about the Sullivan Principles can best be inferred from the passage?

Directions: The question
is based on the following reading passage.
Choose the best answer to the question on the
basis of what is stated or implied in the passage.

            Multinational corporations frequently
            encounter impediments in their attempts
            to explain to politicians, human rights
            groups, and (perhaps most importantly)
(5)        their consumer base why they do business
            with, even seek closer business ties to,
            countries whose human rights records
            are considered heinous by United States
            standards. The CEOs propound that
(10)      in the business trenches, the issue of
            human rights must effectively be detached
            from the wider spectrum of free trade.
            Discussion of the uneasy alliance between
            trade and human rights has trickled down
(15)      from the boardrooms of large multinational
            corporations to the consumer on the street
            who, given the wide variety of products
            available to him, is eager to show support
            for human rights by boycotting the products
(20)      of a company he feels does not  do
            enough to help its overseas workers.
            International human rights organization also
            are pressuring the multinationals to push
            for more humane working conditions in
(25)      other countries and to in effect develop a
            code of business conduct that must be
            adhered to if the American company is to
            continue working with the overseas partner.
            The president, in drawing up a plane for
(30)     what he calls the "e;economic architecture
           of our times,"e; wants economists, business
            leaders, and human rights groups to work
            together to develop a set of principles that
            the foreign partners of United States
(35)      corporations will voluntarily embrace.
            Humans rights activists, incensed at the
            nebulous plans for implementing such
            rules, charge that their agenda is being
            given low priority by the State Department.
(40)      The president vociferously denies their
            charges, arguing that each situation is
            approached on its merits without
            prejudice, and hopes that all the groups
            can work together to develop principles
(45)      based on empirical research rather than
            political fiat, emphasizing that the
            businesses with experience in the field
            must initiate the process of developing
            such guidelines. Business leaders, while
(50)      paying lip service to the concept of these
            principles, fight stealthily against their
            formal endorsement as they fear such
            "e;voluntary"e; concepts may someday be
            given the force of law. Few business
(55)      leaders have forgotten the Sullivan
            Principles, in which a set of voluntary
            rules regarding business conduct with
            South Africa (giving benefits to workers
            and banning apartheid in the companies
(60)      that worked with U.S. partners) became
            legislation.

  1. They had a detrimental effect on the profits of those corporations doing business with South Africa.

  2. They represented an improper alliance between political and business groups.

  3. They placed the needs of the foreign workers over those of the domestic workers whose jobs would therefore be in jeopardy.

  4. They will be used as a model to create future voluntary business guidelines.

  5. They will have a chilling effect on future adoption of voluntary guidelines.

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Choice (1) is the major trap here. Nothing was said in the passage about profits. In choice (5), the words chilling effect means negative effect, discouraging effect. Because few corporations have forgotten the Sullivan Principles, it can be inferred that these principles may discourage the companies from agreeing to voluntary principles in the future.