Business Ethics Final Exam

Intranet

Emily, a website designer, is hired by an organization to create an internal website that contains information meant to be accessed solely by employees. This website is the company's ______________.

False Claims Act

A qui tam lawsuit is a lawsuit brought on behalf of the federal government by a whistle-blower under the ____________ of 1863

Company

A whistle-blower hotline is a telephone line where employees can leave messages to alert the ______________ of suspected corporate misconduct without revealing their identity.

The state of the job market

According to Adam Moore, the distinction between two types of consent to employee-monitoring-thin and think-is created by _______________________.

It is given when the employee has no other choice.

According to Adam Moore, which of the following is true of thin consent?

Internal

Alan, a newly hired employee in charge of tracking his company's inventory, finds that there is a major discrepancy between the expected stock and the actual stock. He discovers that one of the employees in his department is responsible for the misappropriation of this stock and immediately reports his observation to the operations manager. Alan plays the role of an _________ whistle-blower.

Thick

Andrew is informed by his company that he should be open to monitoring as a part of the company's plans to improve productivity. Becuase of his qualifications and work experience, he knows that he would have no difficulty finding a similar position in another company. Andrew agrees to the policy, knowing that he can switch jobs if the new policy affects his job satisfaction. He has given his company __________ consent.

Telecommuting

Because of ____________, which allows employees to log into thier company's network remotely from any location, the concept of being "at work" is blurred.

Often take advantage of the unrestrictive legal environments of less developed countries.

Because of globalization, multinational corporations:

Companies can cut their expenses by shipping work to countries with low labor costs.

Because of recent advances in technology, information can be digitalized and transmitted over fiber-optic cables. What implications does this have?

Should customers be informed that their personal infomation is being sent to other countries?

Because of recent advances in technology, information can be digitalized and transmitted over fiber-optic cables. What privacy-related issue does this raise for the customer?

The availability of employees is being defined as their accessibility.

Because of the changes that telecommuting has introduced into the work environment:

Facilitation

Brendon Inc. required a permit to open its business in the country of Cadmia. Although it had met all the requirements for the permit, the officials concerned delayed providing Brendon Inc. with the permit. To expedite the process, the company made a payment to a customs official. Which of the following types of payments is this an example of?

Induce officials to act in violation of their lawful duty.

Bribes are those payments which:

Ethical behavior of economically advanced nations toward developing ones.

Globalization raises concerns about the:

By creating trust and maintaining a corporate culture of trust.

How can an organization move its ethical commitment to a global scale successfully?

The consequence of aggressive lending, even though as recently as a few months earlier, lenders reported record earnings based on questionable lending practices.

In September and October 2008, financial markets around the world suffered a severe crash, as:

External

In ___________ whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of law enforcement agencies and/or the media.

Unlike the UN Global Compact, the OCED guidelines uses a more governmental approach for the same issues.

In what way does the UN Global Compact differ from the OCED guidelines for multinational enterprises?

When local customs come into conflict with the company's policies.

In which of the following situations would a multinational company, when doing business in a less-developed nation, be faced with ethical relativism when making a decision?

Vicarious liability

Is a legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in the incident.

the corporate whistleblowing is usually ignored which makes it difficult to track the history on whistle-blowing. Media attention is received, and also corporate wrongdoing is not rare.

It is difficult to track the history of internal whistle-blowing because:

Extranet

Jordan, a software engineer, is responsible for maintaining the private piece of his company's internet network that is accessible to clients by means of a unique password. This piece of the company's network is known as the __________.

The Dodd Frank Wall Street Reform and Consumer Protection Act

Ken reported misconduct in his organization to the Securites and Exchange Commission. He was able to provide substantial evidence and won the case. The amount recovered was over $1. Which of the following laws states that Ken is eligible to receive between 10 and 30% of the monies collected?

Have a poor economic, social, and technological infraststructure.

Less-developed nations are countries which:

Thin

Michelle receives formal notification from her company, stating that it will be monitoring all her e-mail and web activity. The notification also indicates that her continued employment with the company will depend on her agreement to abide by its monitoring policy. Because jobs are hard to come by, Michelle accepts. She has given the company _________ consent.

Transnational corporations

Multinational compaies are also known as ______________.

Grease Payments

Payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action are called

Grease Payment

Payments to foreign officials in order to expedite or secure the performance of a routine governmental action are known as

existed only in the form of legislation that encouraged behavior by employees who felt compelled to speak out, without offering any safeguards against retailiation aimed at them.

Prior to 2002, legal protection for whistle-blowers:

Bank Secrecy Act

Prior to the passing of the Foreign Corrupt Practices Act, unethical corporate behavior was regulated by the ___________, which required full disclosure of funds that were taken out of or brought into the United States.

Telecommuting

Refers to a work arrangement that allows employees to work from home and log into the company's network remotely.

The Foreign Corrupt Practices Act (FCPA)- 1977

Refers to legislation introduced to control bribery and other less obvious forms of payment to overseas officials and politicans by American publicily traded compaines.

It is difficult to determine where work ends and personal life begins.

Resolving the different perspectives on the issue of monitoring employee actively is difficult because:

External

Sandra, an executive officer of a company, has collected reports which prove that the CEO has been misappropriating company and investor funds. She takes the matter public and issues a statement against the CEO. Sandra is an _________ whistle-blower.

The FCPA requires corporations to fully disclose all transactions conducted with foreign officials in line with the SEC provisions.

Sebastian and Amy are arguing over secondary legislations that were in place prior to the passing of the Foreign Corrupt Practices Act (FCPA). Amy is of the opinion that the FCPA encompasses all secondary measures that were in use to prohibit corrupt practices. Sebastian disagrees with Amy on this point. Which of the following, if true, would strengthen Amy's argument?

Between 10 and 30 percent

The Dodd-Frank Wall Street Reform and Protection Act stipulated that if more than $1 million is collected, the whistle-blower is entitled to _____________ of the monies collected.

Holds businesses liable for the criminal acts of their employees and agents.

The Federal Sentencing Guidelines for Organizations:

"Public Company Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability, Responsibility, and Transparency Act" (in the House).

The Sarbanes-Oxley Act of 2002 is also known as:

Support a precautionary approach to environmental challenges.

The UN Global Compact states that businesses should:

revealing the name would prevent criminal activity or protect public safety.

The Whistleblower Protection Act of 1989 guaranteed the anonymity of the whistle-blower unless:

Whistleblower Protection Act 1989

The _________ of 1989 guaranteed the anonymity of federal employees, but not that of other employees.

whistle blowing in the Dodd-Frank Wall Street Reform and Protection Act of 2010

The ___________ introduced a reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

Whistleblower Protection Act 1989

The _____________ first addressed the issue of retaliation against federal employees who bring accusations of unethical behavior.

Volcker Rule

The __________________ proposed that there should be a key restriction in the legislation to limit the ability of banks to trade on their own accounts (termed proprietary trading).

Financial Stability Oversight Council

The _______________________ is a government agency established to prevent banks from failing and otherwise threatening the stability of the U.S. economy.

Dodd-Frank Wall Street Reform and Consumer Protection Act

The _______________________________ refers to the legislation that was promoted as the "fix" for the extreme mismanagement of risk in the financial sector that led to a global financial crisis in 2008-2010.

Public Company Accounting Oversight Board (PCAOB)

The creation of the _______________________ was an attempt to reestablish the perceived independence of auditing companies after the corporate accounting scandals of the early 2000s.

Cyber-liability

The legal consent of ______________ holds employers liable for the actions of their employees through Internet communication to the same degree as if they had written those communications on company letterhead.

A penalty that is worth the full amount of the organization's assets.

The maximum penalty that a judge can impose upon an organization for violating the Federal Sentencing Guidelines for Organizations is a penalty worth:

Whom the whistle-blower chooses to inform.

The two types of whistle-blowing, internal and external, are categorized based on:

Requires senior auditors to rotate off an account every five years; and junior auditors every seven years.

Title XI of the Sarbanes-Oxley Act focuses on:

Between 10 and 30 percent

Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent behavior against the government are entitled to __________________ of the amount recovered

Copying proprietary software without paying for it.

Which of the following actions does the Computer Ethics Institute consider unethical?

The Organization for Economic Cooperation and Development.

Which of the following bodies has approached the issue of standardizing global ethical conduct by promoting behavior guidelines that multinational corporations can publicly support?

Ethical relativism

Which of the following concepts is illustrated by a company which, when doing business abroad, takes advantage of the local customs to justify an action that is illegal in its home country?

The implications of vicarious for employees.

Which of the following explains why employers are in favor of monitoring and restricting the actions of their employees?

Loss of privacy

Which of the following is a disadvantage of technological advances in a workplace?

Providing permits qualifying a person to do business in a foreign country; processing governmental papers; providing police protection relate to the transit of goods across a country.

Which of the following is a routine governmental action?

The US Federal sentencing guidelines for organizations

Which of the following is one of the key pieces of U.S. legislation designed to discourage,if not prevent, illegal conduct within business?

Whistle-blowing systems should include an anaymous hotline.

Which of the following is true of a whistle-blower hotline?

Corporate whistle-blowing has considerable potential for financial gain in some areas.

Which of the following is true of corporate whistle-blowing?

Only small companies are affected by it; it impacts the commercial, economic, social, and political environment.

Which of the following is true of globalization?

A lawsuit brought on behalf of the federal government by a whistle blower under the False Claims Act of 1884.

Which of the following is true of qui tam lawsuits?

They have increased employees' accessibility.

Which of the following is true of technological advances over the last two decades?

It serves as a guideline for transparency and public accountability.

Which of the following is true of the UN Global Compact?

The calculation of a degree of blame or guilt that is used as a multiplier of up to 4 times the base fines. This can be adjusted according to aggravating or mitigating factors.

Which of the following is true of the culpability score?

A high-level official launch as a corporate ethics officer. Must be in charge of and accountable for the compliance program.

Which of the following is true of the effective compliance program prescribed by Federal Sentencing Guidelines for Organizations?

His guidelines represented an ethical idea that, at best, provided a conceptual foundation.

Which of the following is true of the guidelines offered by Richard DeGeorge for organizations doing business in other countries?

Officers, directors, stockholders, employees, and agents are subject to fine of up to $250,000 per violation and imprisonment for up to five years.

Which of the following is true of the penalties under the Foreign Corrupt Practices Act?

Packet-sniffing software can intercept and archieve all communications on a network.

Which of the following is true of the technology used to monitor employees at the workplace?

It leads to situations in which there is no accountability for individual actions.

Which of the following is true of utilitarianism?

Whistle-blowers are less likely to lose their jobs in public employment than in private employment.

Which of the following is true of whistle-blowers?

bring the misconduct in the organization's they work for to the attention of others.

Whistle-blowers are individuals who:

He overlooked issues related to the quality of goods produced.

Why were the guidelines offered by Richard DeGeorge for organizations doing business in other countries criticized?

Ethical relativism

is a philosophical position in which ethical principles are defined by the traditions of society, personal opinions, and the circumstances of the present moment.

Anticorporation

is one of the four key areas of concern upon which the UN Global Compact focuses.

Disclosure

is the area of the Foreign Corrupt Practices Act that requires corporations to fully reveal any and all transactions conducted with foreign officials and politicians, in line with the Securities and Exchange Commission provisions.