BMGT 1341

Which of the following examples demonstrate ethical concerns with emerging technologies? (Select two)

1. A technology firm is able to correctly re-identify a set of previously anonymized data. 2. An electric vehicle manufacturer eliminates 200 employees in favor of AI-powered robots that can assemble the vehicles faster and with more precision.

Which of the following accounting codes are considered champions for rules-based standards? (Select two)

1. American Institute of Certified Public Accountants (AICPA) 2. US Generally Accepted Accounting Principles (US GAAP)

Which of the following are responsibilities of an ethics officer? (Select three)

1. Assessing the needs and risks that an organization-wide ethics program must address. 2. Monitoring and auditing ethical conduct. 3. Making government laws related to business ethics.

Create AR, based in Los Angeles, California, has been in the augmented reality technology business for several years. Management wants to identify key stakeholders to evaluate if Create AR is currently meeting all of their needs. Which of the following are stakeholders of Create AR? (Select three)

1. Create AR customers 2. Create AR's microchip supplier 3. The Los Angeles community

Characteristics of culture include which of the following? (Select three)

1. Culture is shared among individuals belonging to a group or society. 2. Culture is relatively stable. 3. Elements of culture are unwritten.

Which of the following are steps in the RADAR model? (Select four)

1. Discover 2. Avoid 3. Recover 4. Answer

Which of the following statements accurately describe ethical leaders? (Select three)

1. Ethical leaders must model organizational values. 2. Ethical leaders are passionate about the organization. 3. Ethical leaders should not ignore observed misconduct.

Which of the following are outcomes of ethical leadership? (Select three)

1. Ethical leadership can lead to higher employee satisfaction and commitment. 2. Ethical leaders communicate and monitor an organization's values, ensuring that employees are familiar with the company's purpose and beliefs. 3. Ethical leaders encourage employees to act in an ethical manner in their day-to-day work environment. Hide Feedback Partially Correct

Which of the following are part of the framework for an ethics audit? (Select four)

1. Gain support of top management and board of directors 2. Define the scope of the audit process 3. Report the findings to the audit committee and, if approved, to managers and stakeholders. 4. Collect and analyze relevant information in each designated subject matter area.

Individuals use different moral philosophies depending on whether they make a personal or work-related decision. Which of the following may explain this behavior? (Select two)

1. In the business arena, some goals and pressures for success differ from the goals and pressures in a person's life outside of work. 2. Rules, personalities, and precedents exert pressure on an employee to conform to the firm's culture.

Rebecca is a senior production manager for a plastics company. All of Rebecca's subordinates come to her with ethical dilemmas, asking for help in addressing them. Rebecca likes that her subordinates trust her, but she thinks it's important for individual employees to be empowered to make ethical decisions on their own and to take responsibility for their own conduct. Which of the following actions should Rebecca take in order to empower her employees in this scenario? (Select three)

1. Make ethical codes and policies easily accessible. 2. Solicit constant feedback from employees and encourage their input. 3. Continue to encourage employees to express concerns.

Hilary is tasked with improving the ethics and compliance program of an accounting firm. Before Hilary's review of the program began, the company had already established standards and procedures to prevent and detect criminal conduct and ensured the firm's board, top management, and high-level personnel exercised reasonable oversight of those standards and procedures. Which of the following are minimum requirements that Hilary should implement? (Select two)

1. Make reasonable efforts to keep individuals whom organizations knew or should have known to have engaged in illegal activities out of key positions. 2. Communicate standards and procedures by training directors, employees, and appropriate agents.

A small manufacturer needs to develop and implement a code of ethics for its 200 employees. Previously, the company did not have a formal code of ethics, but after securing a lucrative government contract, the manufacturer decided it was time. First, the manufacturer considered areas of risk and stated the values and conduct necessary to comply with existing laws and regulations. Next, the company identified values that specifically addressed current ethical issues. Which of the following are additional factors the small manufacturer should consider when developing and implementing its code of ethics? (Select three)

1. Make the code understandable by providing examples that reflect values. 2. Communicate the code frequently and in language that employees can understand 3. Revise the code every year with input from organizational members and stakeholders.

Which of the following statements accurately describe employee empowerment? (Select four)

1. Organizations are increasingly realizing the advantages of empowering employees to become ethical leaders. 2. Employee empowerment is important in creating employee-centered ethical leadership. 3. Ethical leaders within an organization cannot make every ethical decision by themselves. 4. Many of the day-to-day decisions will be made not by management but by employees.

Toby manages the ethics training program for a technology company. The program identifies key risk areas employees of the company might face, such as insider trading, conflicts of interest, and issues relating to emerging technologies. Toby develops a series of role-play activities so employees can gain experience in handling ethical issues. Through the program, Toby communicates that wrongdoing is not supported by the organization and employees are individually accountable for their behavior. Which of the following are additional key goals Toby should focus on for the ethics training program in this scenario? (Select three)

1. Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma they do not know how to resolve. 2. Allow a mechanism for employees to voice their concern that is anonymous but provides answers to key questions. 3. Provide ongoing feedback to employees about how they are handling ethical issues.

Which of the following are examples of blockchain technology? (Select three)

1. Spotify uses a decentralized database to correlate artists with license agreements and tracks. 2. SimplyVitalHealth uses decentralized record-keeping technology to allow patients and providers to access healthcare data. 3. De Beers uses a secure and decentralized record-keeping system to securely track diamonds across the supply chain all the way from the mine to the end-user.

Which of the following are examples of a company fostering the development of an ethical culture for its employees? (Select three)

1. The Excel Group offers a work-family program. 2. Acme Corp. employees participate in disaster-relief efforts after hurricanes and tornadoes. 3. Rx Drugstore has an employee stock ownership program.

Which of the following are true statements regarding leadership styles and ethical decisions? (Select three)

1. There is no one leadership style or an absolute list of attributes, values, or skills needed to be an effective leader. 2. Leadership styles influence many aspects of organizational behavior. 3. Three elemental ingredients for leadership include character, stewardship, and experience.

The term ethical culture is associated with which of the following? (Select three)

1. Workplace confrontation over ethics issues, reports to management of observed misconduct, and the presence of ethics hotlines 2. A culture that creates shared values and support for ethical decisions and is driven by the ethical leadership of top management 3. Acceptable behavior as defined by the company and industry

Which of the following scenarios are unethical? (Select four)

1. You want to skip work to go to a baseball game, but you need a doctor's excuse, so you make up some symptoms so that your insurance company pays for the doctor's visit. 2. Over a cup of coffee, you tell a friend confidential information about a pending merger at your company. 3. You are fired from your company, but before leaving to take a position with another company, you take a confidential list of client names, e-mail addresses, and telephone numbers that you compiled for your former employer. 4. Your manager asks you to book some sales revenue from the next quarter into this quarter's sales report to help reach target sales figures.

Which of the following are examples of an organization's core values? (Select three)

1. Zillow: Customers are our north star; Turn on the lights; Do the right thing; Own it; Be together; Include and empower; Think big and move fast; Deliver quality on time every time. 2. Marriott: Put people first; Pursue excellence; Embrace change; Act with integrity; Serve our world 3. Tesla: Always do you best; No forecast is perfect but try anyway; Respect and encourage people; Always be learning; Respect the environment

Which of the following business practices show a social commitment to sustainability? (Select three)

1. sponsoring cleanup events 2. redesigning manufacturing processes to reduce waste and pollution. 3. reevaluating the effects of their products and the natural environment.

ABC Corp. is a social networking site with access to a large amount of customer data. ABC's senior management is often concerned with how to ethically collect, store, and use Big Data. The company is also grappling with managing relationships in a multigenerational workplace since its oldest team members are baby boomers while its youngest are Gen Z. During which of the following decades would ABC Corp.'s concerns fall within the timeline of ethical and social responsibility?

2010's

A company sells virtual home assistants. The company's machines can collect and transfer more data than ever before due to a global increase in bandwidth. Internet of Things (IoT) advancements such as this make the company's devices more powerful. For example, data can be collected from a user's other IoT devices such as smartwatches and smartphones and then transmitted to the virtual assistants faster than ever before. This advancement in turn leads to increased use and consumption of data, creating personal data privacy issues that the company must consider. Which emerging technology does this example relate to?

5G

Which of the following technologies lets carriers transmit data at incredibly fast speeds, with the ability to download an entire movie in a few seconds?

5G

Which of the following statements describes an Environmental Social Governance (ESG) philosophy?

A shampoo producer has taken an interest in issues such as climate change, the economic empowerment of women, and water sustainability. It has also invested in the sustainability of its packaging.

Miranda, a high-level manager for a company selling consumer packaged goods, is concerned about how rapidly the company has adopted new technologies. For instance, the customer service department recently implemented an artificial intelligence-powered chatbot to automatically answer customer inquiries and the marketing department has started using a predictive analytics software to improve its email marketing campaigns. During a senior management meeting, Miranda suggests the company should evaluate these new systems to make sure the benefits outweigh the risks. Miranda is recommending that management should conduct which of the following in this scenario?

A technology assessment

Cho works for a tech company. Cho likes the corporate culture because it is centered around teamwork, trust, and integrity. One day, Cho notices that a coworker, Nathan, is wearing a company t-shirt in an inappropriate video posted to Nathan's personal social media account. If she reports him, she fears she will not look like a good team player and will lose the trust of her coworkers. If she does not report him, she fears the company's integrity will be damaged. What does Cho face in this scenario?

A value dilemma

Ernesto is an office assistant for a family physician, Dr. Ava Smith. As Ernesto is reviewing patient records, he notices that all of the patients of the practice were listed as being on Medicaid, but he knows this is impossible. As he digs deeper, he sees charges to Medicaid over the years have increased. When he confronts Dr. Smith, she admits to falsely billing Medicaid. Which of the following describes Dr. Smith's actions in this scenario?

A white-collar crime

Chris, as the CEO of a startup, understands that failure to acknowledge or be aware of ethical issues within his company is a great danger. For this reason, he is trying to improve his ethical awareness. Which of the following are ethical issues that Chris should be aware of? (Select three)

Abusive behavior, minus of company time & safety violations

When an ethical conflict arises at his vegan makeup company, Tom, the CEO, steps in. A member of the product development team wants to introduce a new lipstick shade that uses carmine as a coloring agent. Tom points out that carmine is derived from dried insects, so it is not vegan. The product developer insists that the ingredient will create a vibrant red lipstick shade that customers will love. Tom gives in to the developer. Which type of conflict management style does Tom exhibit in this scenario?

Accommodating

Conflict management styles include which of the following? (Select four)

Accommodating, Competing, Avoiding & Collaborating

ABCD, a multinational professional service network, is looking for a discipline-related code of conduct to improve the company's ethical behavior. The CEO of ABCD has in mind a set of rules-based standards for simple comparisons of financial statement data between companies and decreased likelihood of accounting-related lawsuits. Which type of discipline-related codes does this scenario relate to?

Accounting codes

Teleology is a philosophy associated with which of these statements?

An act is morally right or acceptable if it produces a desired result.

During its 100-year history, a company departed from its founder's original values. Over time, leaders became more and more focused on the bottom line and less committed to operating with integrity. This led to a toxic organizational culture that encouraged doing whatever it took to secure sales. Which of the following statements does this scenario support?

An ethical corporate culture must be maintained through effective leadership at all times during the firm's existence.

Angelina is hired as an inside sales representative for a cosmetics company. Though she was initially excited to join the team, she is disappointed when she notices almost immediately that her coworkers focus on their own self-interest. One day, Angelina makes a record-breaking sale. She anticipates management will be excited, but she is not recognized for her efforts. By the end of her first month, Angelina begins to feel that management is undervaluing employee efforts. What kind of culture is described in this scenario?

Apathetic

A company with a long history of ethical misconduct wants to improve its reputation. The company decides to implement a stakeholder perspective to get the firm back on the right track. What step should the organization take first?

Assess the corporate culture

Which of the following steps in implementing a stakeholder perspective has the explicit purpose to identify the organizational mission, values, norms, and behavior likely to have implications for social responsibility?

Assessing the corporate culture

Mega Goods, an American multinational consumer goods corporation, is a corporate member of a national marketing organization that promotes self-regulation. The organization receives nearly 100 complaints about a Mega Goods advertisement for dish detergent. Consumers suggest its "spot-free" claims are misleading. As a result, the marketing organization works with Mega Goods to help the company come into compliance. Which organization is Mega Goods a member of in this scenario?

Association of National Advertiser (ANA)

A public utility holding company provides natural gas with the goal of reducing acid rain and greenhouse gas emissions. What global environmental issue is this related to?

Atmospherics

Considered to be one of the most effective styles, which type of leader facilitates change, creates a strongly positive performance climate, and inspires employees to follow a vision?

Authoritative

A company develops a social media code of conduct for its sales representatives to provide guidelines and best practices for business-related activity on social networks and to avert misconduct disasters. Which part of the RADAR model is demonstrated in this example?

Avoid

A company wants to measure How do our customers see us?, What are we trying to do?, What do we need to improve?, and How do our shareholders view us?. To do this, the firm selects an integrity management framework that incorporates nonfinancial performance indicators into the evaluation system. The metrics to be measured are financial, customer/stakeholder, internal process, and organizational capacity. Which integrity management framework is described in this scenario?

Balanced scorecard

Nia and Rashid are coworkers at a national bank's corporate office. Even though they have both worked for the same company for many years, they often interpret situations differently. For example, when a data breach occurred, Nia wanted to alert customers immediately per company policy, but Rashid thought it would be more ethical to gather additional information about the breach before alerting the public. Why do Nia and Rashid approach ethical decision-making differently?

Because people are culturally diverse and have different values, they may interpret situations differently and the ethical decisions they make on the same issue may therefore vary.

The FSGO utilizes a "carrot-and-stick" philosophy to encourage organizational compliance. What is the ultimate "stick" the FSGO uses?

Being fined or put on probation

Companies in a rush to create profits from the popularity of this alternative energy source installed plantations on former jungle land. Because it has contributed to rapid deforestation of ecologically sensitive areas, countries like Indonesia have been criticized for using which of the following alternative energy sources?

Biofuel

Which of the following creates an audit trail that protects both consumers and businesses from fraud, serving as a solution to digital fraud and privacy breaches in various industries?

Blockchain

Katerina is hired to help a retailer expand its footprint internationally. She runs into roadblocks when attempting to secure permits in foreign countries. Katerina decides to offer large payments to local officials so her permit applications are given priority. Which of the following behaviors is Katerina engaging in?

Bribery

Matteo works for a U.S.-based multinational retail company that wants to expand its footprint in the United Kingdom. Matteo is under pressure to set a grand opening date for a new store. To secure the permits his company needs, he offers his U.K. government contact a $900 grease payment in exchange for hurrying his application along. Which law is Matteo in violation of?

Bribery Act

Which of the following globally based resource systems tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools?

Business for Social Responsibility

A big box retailer announced plans to open one of its superstores in a small rural community. After a group of protestors filed a lawsuit against the company, the retailer terminated its development agreement instead of battling it out in court. Which of the following does this scenario exemplify?

Businesses often want to avoid lawsuits if possible because of the high costs involved.

A company that is characterized by low flexibility, low problem recognition, and clear-cut division of labor has which type of organizational structure?

Centralized

Greta, the CEO of The EV Company, believes that decision-making authority should be concentrated in the hands of top-level managers. For this reason, Greta rarely delegates responsibility to lower levels. Greta believes this is the best way to manage The EV Company since she is often responsible for high-risk decisions. Which type of organization is described in this scenario?

Centralized

The CEO of a social media company believes that since the decisions it makes about its platform are very important, high-stakes decisions, only high-level executives should have decision-making authority. There are many formal rules and procedures in place at the company, and the division of labor is clear-cut. Which type of organization is described in this scenario?

Centralized

Which of the following organization structures is usually bureaucratic, the division of labor is typically well defined, and is suitable for companies in which processes are routine and efficiency is of primary importance?

Centralized

A virtual gaming website was accused by the Federal Trade Commission of illegally collecting personal information from children. New users were not prompted to provide their birthdates, so children were able to freely register. When the issue was initially discovered, the company swept the concern under the rug rather than attempting to obtain parental permission for its underage users. Which privacy law did the virtual gaming website violate in this example?

Children's Online Privacy Protection Act (COPPA)

Beth, a supply chain manager for a major drugstore retailer, manages two entry-level employees. Beth believes it is important to help her subordinates develop the skills they need for long-term success at the company. For example, she teaches them how to forecast inventory needs and how to identify potential areas at risk for supply chain disruption. Beth delegates responsibility to the employees in order to help them build their skills and gain experience. Which type of leader is Beth in this scenario?

Coaching

A company that sells purses, travel bags, and other accessories wants its backpacks to stand out against the competition, so it decides to use recycled water bottles in its manufacturing process. There are four main reasons social responsibility became an issue for organizations. Which one of the following does this example demonstrate?

Companies use their sustainable and socially responsible decisions to differentiate their firms and promote their products.

Evergreen Energy, a successful integrated energy company, invests heavily in its local communities. It has contributed $16.5 million to philanthropic initiatives to support the company's goal of driving economic growth and making a difference. For example, the company contributes both financial and human resources to support STEM learning programs for children. Why is Evergreen Energy most likely able to invest in social responsibility?

Companies who have good financial performance are able to spend more money on social responsibility.

ReCycle Swimwear, a company that makes sustainable swimwear with ethically-sourced materials, has been continually recognized for decades as being one of the most ethical companies in the world. However, ReCycle found itself in the spotlight for questionable conduct. The Justice Department alleged that the clothing company engaged in an international bribery scheme that violated the Foreign Corrupt Practices Act. Which of the following statements does this scenario exemplify?

Companies with a strong reputation for ethical conduct sometimes fail to maintain their ethical culture.

The Alpha Beta Corporation (ABC) is a private, nonprofit organization that promotes business self-regulation. Businesses can be accredited through ABC by meeting certain requirements to protect consumers and better their business. To do this, businesses follow a set of best practices outlined by ABC. This scenario relates to the concept of _______.

Core practices

An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact refers to its _______.

Corporate social responsibility

Dante, the CEO of an office supply company, has become increasingly out of touch. He used to work on the frontlines selling paper products, but as he climbed the ranks, Dante has spent less time in meaningful interactions with other employees. When an entry-level employee expresses joy that it is payday, Dante offhandedly says that he never notices when it's payday because he always has enough money in his bank account. Dante's lack of self-awareness has left his employees unhappy. Which of the following statements is true in this scenario?

Dante lacks emotional intelligence.

Alicia and Eduardo are aware that the car company they work for sources metals such as tungsten and gold from the Golden Rule Mining Company because it is the most affordable option. Alicia and Eduardo learn that stakeholders will not look upon this situation favorably because the supplier is located in a conflict zone where armies and rebel groups profit from mining. For this reason, they enter into a secret agreement with Golden Rule Mining Company to conceal this information from the public and make it appear that the supplier is based in the United States. In this scenario, which of the following are Alicia and Eduardo engaging in? (Select two)

Deceitful purpose & Collusion

Anthony, the CEO of a software-as-a-service company, believes that individuals at his company should feel empowered to make decisions. He encourages employees at all levels to make big decisions and ignore the traditional chain-of-command. Anthony believes this is what allows his employees to have high problem recognition. Which type of organization is the software-as-a-service company in this scenario?

Decentralized

When an employee was found guilty of insider trading, a hospitality company decided to conduct an ethics audit to improve its ethics program. First, the ethics officer gained support from the CEO and the board of directors. They all agreed an ethics audit was necessary. Next, the ethics officer and the CEO worked to create a committee to oversee the audit. After that, a review was conducted of the firm's mission, values, goals, and policies. Which step in the framework for an ethics audit should have occurred prior to the review that was conducted in this scenario?

Define the scope of the audit process.

Which approach to stakeholder theory focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships?

Descriptive approach

What is an organization's chief privacy officer (CPO) responsible for?

Developing and implementing policies and procedures related to privacy protection

High-level management at a plastics manufacturer knew its company's waste was being tossed into local waterways, but dumping waste was common in the region, so they did not tell anyone. Even after some of their plastics were discovered in local waterways by an investigative reporter, managers at the manufacturer told the media the company was not responsible for the mess, despite knowing otherwise. Which of the following describes this behavior?

Dishonesty

Which of the following can be broadly defined as a lack or absence of integrity, incomplete disclosure, and an unwillingness to tell the truth?

Dishonesty

Paulina witnessed misconduct at the publicly traded firm where she was employed. She provided her detailed, firsthand account to the Securities and Exchange Commission. As a result of her intel, millions of dollars were returned to harmed investors. Paulina subsequently received a $1 million reward. Paulina received this reward under which of the following laws?

Dodd-Frank Wall Street Reform and Consumer Protection Act

Illuminate Motors, an electric vehicle company, expends many resources to support its corporate social responsibility efforts. For example, it is a carbon-neutral company and powers its buildings with solar power to protect the environment. To support social causes, the company provides educational programs for local students to learn more about electric vehicles and offers professional advancement opportunities to its employees. The company also focuses on corporate governance and transparency. Which integrity measurement framework would Illuminate Motors most likely use?

ESG

Talena, a business owner, quantifies values by monetary means. She has determined that the act of reducing compensation for underperforming employees would produce an economic value for her business, so Talena believes it should be accepted as an ethical action. Which of the following concepts describes Talena's beliefs in this scenario?

Economic value orientation

What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on?

Encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs

When a manufacturer's facility was inspected by the most influential regulatory agency that deals with environmental issues and enforces environmental legislation in the United States, a series of violations were discovered related to hazardous air pollutants and volatile organic compounds emissions. The agency required the manufacturer to correct its violations and pay a penalty. What regulatory agency inspected the facility?

Environmental Protection Agency (EPA)

Relating to stakeholder demands for firms to protect the environment, contribute to social causes, and engage in conduct that is responsible and ethical, which of the following is becoming an important initiative in the 2020s?

Environmental Social Governance (ESG)

Which of the following are the three fundamental elements that motivate people to be fair?

Equality, reciprocity, and optimization

Which of the following refers to acceptable behavior as defined by the company and industry and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior?

Ethical culture

Before setting up an ethics program, a company voluntarily calls for an evaluation that will identify the firm's ethical standards as well as its existing policies and risk areas. What is this evaluation called?

Ethics audit

Strong customer initiatives help Intuit receive the feedback necessary to release innovative products customers desire, including its product Credit Karma. As a result of its customer focus, Credit Karma has become a leading company in the personal credit and financial management industry. Which of the following benefits of business ethics are described by this example?

Ethics contributes to profits.

A county sheriff was indicted on bribery and fraud charges for agreeing to overlook a local counterfeiting ring's criminal activities in exchange for reelection support and contributions. This example supports which of the following statements?

Ethics plays an important role in the public sector.

Mihály is the chief financial officer for a multinational bank based in the United States. She coordinates with auditors and the company's board of directors who provide independent oversight. While opening the Japanese division of her company, she learns that it is normal for retired Japanese bureaucrats to become auditors in the banking system. Mihály is concerned that the concept of independent oversight is not as clear cut in Japan as it is in the United States. Which of the following does this scenario exemplify?

Even with such a simple concept as "independent oversight," national culture can come into play.

Which of the following statements regarding social responsibility and stakeholder orientation is true?

Evidence suggests caring about the well-being of stakeholders leads to increased profits.

A global entertainment company's shareholders voted against increasing its CEO's salary and bonus package. Though the compensation package was tied to meeting performance targets, shareholders said the substantial payments to the CEO were concerning. To which compensation issue is this scenario related?

Executive compensation

Starbucks's $35 Million Leadership Lab is an interactive experience to engage "partners" (store managers), allow them to get inspiration from the company and the brand, and engage them with other "partners." The purpose is to create an emotional connection between the brand and employee to reduce turnover and allow those longer term management positions to produce significantly better store results. The company shares its passion and concern and recreates the entire growth and production process for coffee. The passion and caring that is shown embellishes the ethical organizational culture. Starbucks's Leadership Lab is a trade show focused upon its business, production processes, and suppliers.

False

DIY Home Store, a home improvement retail company, lacks internal legal and ethical compliance programs. Two members of its senior management team are found engaging in misconduct, including bribery and fraud. Since DIY Home Store lacks an effective ethical compliance program and its employees were found violating the law, it can incur severe penalties under the _______.

Federal Sentencing Guidelines for Organizations (FSGO)

Since U.S. banks have become safer since the Great Recession, one oversight council announced it would review risky activities of financial markets as a whole rather than zeroing in on individual nonbank firms. This strategic shift changes the way so-called stress tests are conducted and reported by which of the following oversight councils?

Financial Stability Oversight Council (FSOC)

A major retailer is introducing a controversial children's toy despite protests from the public. A group of hackers decides to attack the company's network on the day of the product launch. They inundate the retailer's domain names with malicious requests in order to create connectivity problems and service failures for legitimate users of the system. Which of the following is the type of cybercrime described in this scenario?

Flood attacks

Which of the following statements describes the primary implication of the "bad apple-bad barrel" analogy?

Fostering ethical decision making within an organization requires terminating unethical employees and improving the firm's ethical standards.

A candle maker has a website to sell its products to customers in the United States, the United Kingdom, and Canada. Since the website's analytics tool collects and stores information on website visitors, the candle maker must ask its visitors for permission to collect data and respond to consumer inquiries about data usage within 72 hours. Which of the following laws requires the candle company to take these actions?

General Data Protection Regulation (GDPR)

Meal Planner Pro is a meal delivery service in the United States and the United Kingdom. Meal Planner Pro uses its website to share recipes and expert cooking tips. Meal Planner must obtain permission from consumers to collect their data. The company accomplishes this using a pop-up that asks users to accept cookies and agree to their data policies. Which of the following is the law that requires Media Planner to do this?

General Data Protection Regulation (GDPR)

A set of 10 principles concerning human rights, labor, the environment, and anti-corruption, which seeks to create openness and alignment among business, government, society, labor, and the United Nations, is known as the _____.

Global Compact

To demonstrate its commitment toward acceptable conduct, a company decides to adopt globally recognized principles emphasizing human rights and social responsibility. The company agrees to integrate the 10 principles concerning human rights, labor, the environment, and anti-corruption into their business practices. They also agree to publish their progress toward these objectives on an annual basis and partner with others to advance broader United Nations (UN) objectives. Which policy have they adopted in this situation?

Global Compact

Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?

Global compact

Volkswagen was exposed for falsely claiming that it used a technology that emitted fewer pollutants in its diesel vehicles. In reality, the vehicles had been equipped with technology designed to cheat emissions tests. In this scenario, the company engaged in which practice?

Greenwashing

A customer service manager at a watch company notices in its customer relationship management system that a well-known celebrity has purchased a watch from the company. In a cross-functional team meeting between customer service, sales, marketing, and top-level management, the customer service manager shares this information. The company's CEO suggests they send the celebrity a second, complimentary watch in the hopes that they will mention the company on social media, resulting in valuable publicity. The sales manager and customer service manager agree that this is a good idea. The marketing manager feels this is a violation of the celebrity's privacy and a misuse of customer data but decides that since the CEO and other managers think it's a good idea, it would be best to just go along with them. Which of the following describes the phenomenon that occurred in this scenario?

Groupthink

Hasan is a social media influencer from Nashville, Tennessee. He has a large following on Instagram in Nashville, but he recently moved to Washington, D.C. to go to school. A D.C.-based doughnut shop messages Hasan and asks if he would be interested in sharing a series of sponsored posts. The doughnut shop will pay Hasan $750 in exchange for three posts about the shop. Hasan, however, being new to the D.C. metro hardly has any followers in the area and knows that if he posts about the shop, his post will result in little engagement and few sales, if any, for the shop. Which of the following will he choose to do, if Hasan is a utilitarian?

Hasan will conduct a cost-benefit analysis to assess which alternative would create the greatest utility before deciding whether to tell the doughnut shop about his followers.

Hasan is a social media influencer from Nashville, Tennessee. He has a large following on Instagram in Nashville, but he recently moved to Washington, D.C. to go to school. A D.C.-based doughnut shop messages Hasan and asks if he would be interested in sharing a series of sponsored posts. The doughnut shop will pay Hasan $750 in exchange for three posts about the shop. Hasan, however, being new to D.C., hardly has any followers in the area and knows that if he posts about the shop, his post will result in little engagement and few sales, if any, for the shop. Which of the following will he choose to do, if Hasan is a virtue ethicist?

Hasan will consider the elements of virtue, tell the doughnut shop about his followers, and suggest alternative influencers to work with.

A new utility company is researching alternative energy sources. Although the company has been encouraged by its board of directors to consider investing in a specific alternative energy source, its CEO does not want to consider it because it has the potential to destroy wildlife and human habitats when valleys are flooded using dams, creating too much of a liability for the new company. Which of the following alternative energy sources does this scenario describe?

Hyrdopower

An eco-friendly plastics manufacturer is highly committed to environmental responsibility. For example, the company publishes an annual sustainability report for the public to see the efforts it has made—such as routine audits—as well as to announce its goals for the future. The company takes this commitment a step further by adopting a comprehensive set of environmental standards that encourage a cleaner, safer, and healthier world. Developed by the International Organization for Standardization, this set of standards is known as _______.

ISO 14000

Which of the following, developed by the International Organization for Standardization, is a comprehensive set of environmental standards that encourages a cleaner, safer, and healthier world?

ISO 14000

Which of the following is a moral philosophy that places special value on ideas and ideals as products of the mind?

Idealism

After a series of ethical misconduct scandals at ABC Corp., Malachi is tasked with applying stakeholder theory to analyze ABC Corp.'s performance. If Malachi wants to take a normative approach to stakeholder theory, what should he do?

Identify ethical guidelines that dictate how the firm should treat stakeholders

Hackers breach the security of an online greeting card company, breaking into a database containing personally identifiable information on its customers, such as names, email addresses, and mailing addresses. Even worse, users of the greeting card website have often uploaded the mailing addresses of their friends and family in order to use the company's personalization services. The hackers obtain all of this data during the breach. Which of the following is the type of cybercrime described in this scenario?

Identity theft

Which of the following statements is true?

If there is congruence between individual ethics and the organizational ethical culture, the potential for making ethical choices in organizational decision making increases.

Imani is a lawyer who represents an accounting firm. Through an email with her client, Imani learns her contact has been lying on financial statements to the public as well as on reports about corporate performance and health. Which of the following statements is true in this scenario?

Imani is required to report her client because the Sarbanes-Oxley Act modifies the attorney-client relationship.

At work, Sweta tends to adopt a utilitarian perspective, often conducting cost-benefit analysis to assess which alternatives create the greatest utility. However, in her personal life, Sweta is more of a virtue ethicist, believing that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation. Which of the following explains Sweta's behavior in this scenario?

Individuals may use differing moral philosophies depending on whether they are making a personal decision or a work-related decision.

A GPS navigation software company sued a food delivery company after it was discovered former employees of the navigation company shared confidential source code with the food delivery company to power its GPS system for food delivery drivers. Which ethics issue in technology is this scenario related to?

Intellectual property

You Tech makes smartwatches and smartphones that can send and receive text messages, send and receive phone calls, track vital signs, and more. Users can check their vitals on their smartwatches, on their computers, or using their in-home virtual assistants. You Tech also makes a smart home security system with sensors, alarms, cameras, and microphones that are all connected to provide 24/7 security, allowing users to control their home security systems from their smartphones. Which of the following describes the type of device found in this example?

Internet of Things (IoT)

Alejandro works for one of the "Big Four" accounting firms. As the chief ethics and compliance officer, Alejandro must assess the effectiveness of the organization's internal controls and commission audits of these controls by an external auditor in conjunction with the audit of its financial statements. Why is management required to do this?

It is a requirement under Sarbanes-Oxley 404.

The CEO of HiTech, a smartphone accessory company, wants to sell its phone chargers for a higher price. The executive knows that if prices increase consumers will simply purchase a more affordable option from a competitor, so the executive collaborates with HiTech's top rivals in a price-fixing scheme to inflate consumer prices. Which of the following statements describes price fixing?

It is illegal for HiTech to engage in price fixing because it often creates unfair prices for buyers.

Which of the following statements is true of the Dodd-Frank Wall Street Reform Act?

It seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis.

At work, June is an entry-level employee. She likes to observe the actions of her coworkers and determine consensus before moving forward with decisions, but she is rarely given the opportunity to do so. Instead, she usually must follow the lead of her manager who takes a utilitarian approach. Which of the following explains why June goes along with her manager?

June does not have the power to impose her own moral perspective on others.

Adonijah owns a structural engineering firm. Business is slow due to a recent economic downturn, and he hears from multiple clients that many engineers, architects, and construction workers are out of work. Adonijah advocates for government spending on labor-intensive infrastructure projects to stimulate employment during the economic slump. Which form of capitalism does Adonijah believe in?

Keynesian capitalism

While eating lunch in the break room, several employees for a tech company share how much they are paid by the company. One of the employees thinks it is odd that all of the women in the room are paid around 10 percent less than the men even though everyone in the group holds the same title and has the same amount of experience. Which global business ethics issue does this scenario relate to?

Labor

Cal, a fast-food restaurant chain owner, has seen the negative effects of regulation on his business. Cal believes that if the government would leave the economy—and his business—alone, individuals would be able to freely conduct their own economic affairs. Which form of capitalism does Cal believe in?

Laissez-faire capitalism

Most people toss old electronics and equipment, such as smartphones, vacuum cleaners, and TVs, into the trash. Therein lies the problem with electronic waste, or e-waste, which is a major problem for electronics manufacturers, state and local governments, and the U.S. Environmental Protection Agency. E-waste is most closely related to what global environmental issue?

Land

Some stores such as Trader Joe's banned single-use plastic bags voluntarily, and other companies offer incentives for consumers to use more recyclable materials such as canvas grocery bags. What global environmental issue is this related to?

Land

Marcus is the accounting manager for hospital. While conducting annual reviews for the accounting department, he reflects on the team as a whole. Marcus is pleasantly surprised to realize that all of his subordinates share the same vision and ethical expectations. They have all adopted a shared set of values, and as a team, they work toward goals for the organization. What has occurred in this scenario between Marcus and his subordinates?

Leader-follower congruence

When leaders and followers share the same vision, ethical expectations, and objectives for the company, which of the following is the result?

Leader-follower congruence

What kind of power stems from a belief that a certain person has the right to exert power over others?

Legitimate power

A pharmaceutical company that studies infectious diseases emphasizes the importance of cleaning and sanitization procedures by providing employees with radio-frequency identification (RFID) lanyards that track when employees discard waste, clean equipment, and sanitize their hands based on proximity to strategically located readers. Which of the following describes this example?

Machine-to-machine (M2M) communication

Zihan is the CEO of a technology firm. The company's marketing manager asks Zihan if she can have funds allocated for a social responsibility budget. Zihan responds and says that the company produces goods at a profit, and in doing this, the company is already making its maximum contribution to society. Thus, Zihan believes his technology firm is already socially responsible. Zihan's beliefs most closely align with the views of which of the following economists?

Milton Friedman

Northern Airlines is widely considered to be one of the most ethical companies in the world. Its founders established a strong code of ethics early in the company's history that Northern Airlines continues to improve every year. Its ethics and compliance program includes a toll-free ethics hotline, a code of conduct, ethics training, a chief ethics officer, independent oversight, regular auditing, and more. Despite its strong ethics program, it is discovered that one of the company's top executives has been accepting bribes from various airports in exchange for establishing new routes. Which of the following does this scenario exemplify?

Misconduct can still occur even if the company has ethical guidelines in place.

Michael has been working for the same company for 10 years. He often engages in personal activities during work hours. He believes his behavior is justifiable because he is a very productive employee. Michael often shows up a half hour late for work, takes long lunch breaks, and watches e-sports while working. Which of the following activities is Michael engaging in?

Misuses of company time and resources

Daniel, a production manager at a company that manufacturers corrugated boxes, has just learned that the organization experienced a significant drop in profits during the previous two quarters and its executive team has decided to delay the informal annual bonus employees have come to expect at this time of the year until the company's financial situation improves. Daniel must now make a decision about whether or not to notify employees in advance of this planned change in practice. Which of the following concepts best captures the situation described in this scenario?

Moral philosophy

Nia, a sales representative for Midwest Hardware, a company that manufactures nuts and bolts, hopes to obtain a large sale from a construction firm that is building a bridge across the Mississippi River near St. Louis, Missouri. The bolts manufactured by Midwest Hardware have a 3 percent defect rate, which—although acceptable in the industry—makes them unsuitable for use in certain types of projects, such as those that may be subject to sudden, severe stress. The new bridge will be located near the New Madrid Fault Line, the source of the United States' greatest earthquake in 1811. The epicenter of that earthquake is less than 200 miles from the new bridge site. Though there is a 50 percent chance an earthquake will occur along the fault line within the next ten years, according to experts, bridge construction in the area is not regulated by earthquake codes. If Nia wins the sale, she will earn a commission of $25,000 on top of her regular salary. But if she tells the contractor about the defect rate, Midwest may lose the sale to a competitor that markets bolts with a lower defect rate. Nia's ethical issue is whether to point out to the bridge contractor that, in the event of an earthquake, some Midwest bolts could fail, possibly resulting in the collapse of the bridge. Which of the following will she choose to do, if Nia is a relativist?

Nia will attempt to determine consensus before deciding whether to tell her prospective customer about the bolts' defect rate.

Nia, a sales representative for Midwest Hardware, a company that manufactures nuts and bolts, hopes to obtain a large sale from a construction firm that is building a bridge across the Mississippi River near St. Louis, Missouri. The bolts manufactured by Midwest Hardware have a 3 percent defect rate, which—although acceptable in the industry—makes them unsuitable for use in certain types of projects, such as those that may be subject to sudden, severe stress. The new bridge will be located near the New Madrid Fault Line, the source of the United States' greatest earthquake in 1811. The epicenter of that earthquake is less than 200 miles from the new bridge site. Though there is a 50 percent chance an earthquake will occur along the fault line within the next 10 years, according to experts, bridge construction in the area is not regulated by earthquake codes. If Nia wins the sale, she will earn a commission of $25,000 on top of her regular salary. But if she tells the contractor about the defect rate, Midwest may lose the sale to a competitor that markets bolts with a lower defect rate. Nia's ethical issue is whether to point out to the bridge contractor that, in the event of an earthquake, some Midwest bolts could fail, possibly resulting in the collapse of the bridge. Which of the following will she choose to do, if Nia is an egoist?

Nia will keep quiet about the bolts' defect rate, hoping to win the sale and the $25,000 commission.

An insurance company incorporates stakeholder objectives into its corporate core values—honesty, caring, and integrity; inclusive diversity; engagement; superior performance; and accountability. These values are then implemented into the business. Which of the following describes the concept that is illustrated in this scenario?

Normative approach

Hugo is a structural engineer for a small firm. As a project manager, he interacts with dozens of clients directly. More than once, Hugo has accepted large gifts from clients because the company policy does not punish employees who do so. Which of the following concepts are exemplified in this scenario?

Opportunity

After a series of ethical disasters in the banking and finance industries, Eloise, an executive at a mid-sized bank, decides it would be wise to engage in ethical disaster-recovery planning. She begins by assessing the bank's values, but she's unsure of what other actions to take. Eloise hires an ethics expert to consult with the bank and to help with its ethical disaster-recovery planning. Which of the following is an action that the consultant might recommend?

Perform an ethics audit.

Leonard & Cho, an international accounting firm, has adopted the International Financial Reporting Standards (IFRS). These standards are simple and more flexible than other standards, so Leonard & Cho employees can observe a set of overarching principles instead of precise rules. The partners at Leonard & Cho prefer these standards because they allow for creative problem-solving. Which of the following describes the type of standards Leonard & Cho uses in this scenario?

Principles-based standards

Rahul was excited to meet his new boss Bella, but he immediately knew there was something off about her. She was passionate about the company's mission and was outgoing, but her charm seemed superficial. One day Rahul mentioned to Bella that he was overwhelmed by his workload, but she showed no empathy and told him to just work harder. Which type of leader is Bella in this scenario?

Psychopathic

Which of the following types of leader is characterized as having superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoyment in flouting the rules?

Psychopathic

A large online retailer decided to increase wages above the minimum wage because it recognized that its employees put in a great deal of effort and believed its employees should be compensated accordingly. Which of the following describes this business decision?

Reciprocity

Jamila works as a graphic designer for a small marketing team. She spends her day designing email marketing campaigns, flyers, posters, and in-store signage. She finds the work challenging, but she loves it because it allows her to be creative and push her skills. Jamila stays busy because there is always a steady flow of work, but because she works on a small team, she gets lonely. Most of her coworkers are older than she is and have children, so she finds it challenging to connect with them on a personal level. Which of Jamila's needs is not being met in this scenario?

Relatedneeds needs

Which of the following philosophies evaluates ethicalness subjectively on the basis of individual and group experiences?

Relativism

Which of the following are outcomes of a firm "going green"? (Select three)

Revenue is increased through better access to certain markets, differentiation of products, and the sale of pollution-control technology. Goodwill from stakeholders is increased and money is saved from being more efficient and less wasteful. Firms can differentiate their products from competitors'.

Mallory, a car salesperson, has two cars for sale, a Toyota and a Kia. The Toyota is rated higher in quality than the Kia but is priced the same. Mallory's manager says if she sells the Kia, he will give her a higher rate of commission, so Mallory spends the day trying to sell the Kia. Which type of power does Mallory's manager demonstrate in this scenario?

Reward power

Which of the following types of power refers to a person's ability to influence the behavior of others by offering them something desirable?

Reward power

Alan is a teacher in the European Union. He hates that when you Google his name, dozens of old articles appear in the search results about a shoplifting incident from when Alan was a teenager. Alan can request that Google remove the unwanted links from Google search results through the _______.

Right to Be Forgotten Law

Internet users in the European Union (EU) can have unwanted links removed from Google search results through which of the following?

Right to Be Forgotten law

Adam, Kendra, and Camryn work for a financial services company. Adam works in marketing, Kendra works in sales, and Camryn works in accounting. When they make decisions, they all focus on the bottom line and only consider how their decisions will impact their own department. Because of this, Adam, Charlotte, and Camryn are unaware of the overall consequences of their actions on the financial services company as a whole. Which of the following concepts does this scenario describe?

Risk compartmentalization

Rob, the founder of a home cleaning franchise, has had years of training, experience, and learning other best practices of leadership. Rob models organizational values both in his day-to-day activities and in his interactions with company employees. A venture capitalist wanted to buy the cleaning company, but because they did not reflect the company's high standards for ethics and integrity, Rob turned down the multi-million-dollar opportunity. Because there are such big decisions to be made about the future of his franchise, Rob tends to make decisions by himself. Now that he has a growing network of franchisees, he recently established a hotline for reporting ethical misconduct. Although he appears to be an ethical leader, which ethical requirement does Rob fail to meet in this scenario?

Rob operates in a silo.

Oliver is the chief financial officer for a restaurant company in the United States. He is responsible for managing the financial actions of the company. Oliver signs off on the firm's financial reports and risks fines and a long prison sentence if he misrepresents his company's financial position as required and provisioned by the _______.

Sarbanes-Oxley Act

Kilo Watt, an energy company, has an extensive ethics program. For example, during training, the company offers experiential learning opportunities. The program materials have been developed to address the needs of the average employee. Kilo Watt's ethics officer reviews employee feedback frequently from employees across the firm to improve the program. The CEO, however, pressures employees to bend the rules to meet performance goals. This behavior has permeated the company all the way to the lowest levels. Which of the following mistakes has been made in designing and implementing Kilo Watt's ethics program in this scenario?

Senior management has failed to take ownership of the ethics program.

Alternative energy sources have had what effect on the carbon footprint of communities, cities, and even countries?

Significantly decreased the carbon footprint

Apple has incorporated alternative energy sources into its operations, with its new headquarters powered by 100 percent renewable energy from multiple sources. Which of the following alternative energy sources is 100 percent renewable energy that can be converted into electricity through the use of photovoltaic cells?

Solar power

Profesh, a fast-fashion clothing brand, works with 200 factories around the globe to produce its apparel. Various regions, however, have differing standards related to child labor and forced labor. For example, an audit uncovered child laborers within one of the West African factories Profesh works with. Unless Profesh has eyes and ears on all 200 factories 24/7, it can't always know when factories are violating Profesh's child-labor policies. Which global supply chain issue does this scenario highlight?

Supply chain issues involving human rights violations can be hard to detect in global supply chains encompassing many different nations.

Which of the following is a procedure that helps organizations evaluate the possible effects that new processes, systems, and products will have on business operations and stakeholders?

Technology assessment

FinTech Financial Corporation specializes in technology used in the finance industry. Their biggest product is a digital wallet program that allows individuals to make transactions. The program connects to a user's credit card, debit card, or bank account to make payments. FinTech then works with both brick-and-mortar and e-commerce retailers to implement the necessary technology to accept this form of payment. FinTech believes that digital wallets will replace physical wallets in the future. What is this digital wallet an example of?

Technology disruption

The Environmental Protection Agency implemented a law to phase out substances that destroy the ozone layer and contribute to climate change. For example, a refrigerant known as R-22 cannot be purchased legally anymore. This change has caused owners of refrigerating equipment running on R-22 to purchase new equipment running off a more environmentally friendly refrigerant. Which of the following environmental regulations does this relate to?

The Clean Air Act (CAA)

An employee for an airline was caught accepting bribes from a baggage handling company. In exchange, he helped the baggage handling company secure contracts with the airline. Because the airline demonstrated due diligence in developing effective compliance programs to discourage unethical and illegal conduct, it was not as heavily penalized for its employee's misconduct as it would have been otherwise. Which of the following is a set of guidelines for prosecuting organizations related to the incentive described in this scenario?

The Federal Sentencing Guidelines for Organizations (FSGO)

Mia, the chief ethics and compliance officer for a global tech firm based in the United States, sends a company-wide email to announce the introduction of an ethics hotline for reporting ethical misconduct. The company extends its internal ethical controls through hotlines, self-auditing programs, and other mechanisms so misconduct can be detected internally rather than externally. The ethics policies described in this scenario are encouraged by the _______.

The Federal Sentencing Guidelines for Organizations (FSGO)

Acme Corp., a public accounting firm, provides auditing for a multinational cosmetics company. The president of the cosmetics company asks Acme Corp. if it will provide consulting services as well. Acme Corp. instantly agrees. Which of the following laws does this scenario violate?

The Sarbanes-Oxley Act

ABW, a multinational retailer, has subsidiaries in India, Brazil, and Mexico. ABW's subsidiary in Mexico regularly pays government officials large sums to help expedite the permit approval process, allowing ABW to open stores faster. The leaders at ABW in Mexico intentionally cover their tracks in order to conceal these bribes. Which law does the behavior in this scenario violate?

The U.S. Foreign Corrupt Practices Act (FCPA)

Go Athletics, a sportswear and athletic equipment retailer, has a detailed code of ethics in understandable language that is easily downloaded from the employee online portal or available in print, but the company repeatedly detects ethical misconduct. For example, the code of conduct explicitly states that employees must offer new gym equipment for sale to customers for at least one week before purchasing it for themselves. Yet employees often engage in this behavior. Go Athletics sends a survey to employees to understand why this is happening. They discover that frontline employees are unaware of the code of ethics. Which of the following explains why Go Athletics' code of ethics failed in this scenario?

The code is not promoted and employees do not read it.

Charles Schwab, a financial investment management firm, has a detailed code of business conduct and ethics that covers a wide range of topics from compliance with laws, rules, regulations, and policies to good business practices. Which of the following explains why a company would desire to adopt formal codes, policies, and rules?

The opportunities that employees have for unethical behavior in an organization can be deterred with formal codes, policies, and rules adequately enforced by management.

Ethical issue intensity is best defined by which of the following?

The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization

What is the definition of corporate culture?

The shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business

After a wildly successful year, a multinational conglomerate finds itself with a lot of cash on hand. The human resources manager suggests the company use the profits to invest in benefits for its employees. However, the CEO of the company believes using the money to issue dividends instead will better support her goal of maximizing wealth for investors. What model of corporate governance do the CEO's beliefs exemplify?

The shareholder model of corporate governance

A sales representative from a cosmetics company offers a salon employee a free gift valued at $500. The salon employee accepts the gift from the representative because they believe there is a slim chance of being caught and punished by management. Which stage of Kohlberg's model of cognitive moral development does this scenario represent?

The stage of punishment and obedience

A marketing manager for a furniture company argues for discontinuing a popular bookshelf that has caused the death and injury of children because the inalienable right to life makes killing wrong, regardless of the reason, and therefore, company profits are not a justification for the continued sale of the bookshelf. This manager, who is more concerned with social ethical issues and therefore does not rely on the business organization for ethical direction, is in which of the following stages of Kohlberg's model of cognitive moral development?

The stage of universal ethical principles

According to Lawrence Kohlberg's model, which of the following is the final stage of cognitive moral development?

The stage of universal ethical principles

In exchange for a DNA sample, individuals can receive DNA insights, find DNA relatives, understand how they process certain medications, and get instant access to heart health reports using 23andMe, a DNA genetic testing service. Which ethics issue in technology relates to this example?

There could be a tradeoff between privacy and access to information.

Janeena's Jams, a small condiment company, had operated successfully for many years without experiencing ethical misconduct or an ethical disaster. Janeena's Jams is now experiencing a surge of growth after being featured on a popular reality TV series. The company has quickly grown from a team of three to a company of 50 individuals. Though the pay is good, workers are not committed to the company. When Janeena, the owner, decides to sell the business to an investor, the investor pledges to appoint an ethical leader. How will Janeena's Jams likely be affected by ethical leadership?

There may be a higher level of employee commitment within the company.

Codes of conduct and codes of ethics can be described by which of the following statements?

They are formal statements that describe what an organization expects of its employees.

Hi-Key Analytics is a social media analytics startup. When individuals search "Hi-Key Analytics," most of the search results are several years old, and several mention the poor financial performance the company experienced before it was acquired by a larger tech firm. Management at Hi-Key Analytics hires a digital reputation firm to improve the online search results about its company. Why do organizations such as Hi-Key Analytics hire these types of firms?

To attempt to influence public perception

Alejandro, a chief privacy officer (CPO), is knowledgeable about privacy issues such as surveillance and employee privacy as well as relevant laws. Alejandro has a background in crisis management, so he knows what to do to prevent, detect, and address an ethical crisis. Why do organizations hire CPOs such as Alejandro?

To develop and implement policies and procedures related to privacy protection

An American multinational conglomerate spends several years greening the supply chains of its subsidiary companies in order to better attract investors. The company fears poor environmental management will be interpreted as an increased liability, though there are many other benefits to improving environmental performance. Based on this scenario, why is the conglomerate greening its businesses?

To have better access to capital

Big data and marketing analytics have presented new ethical issues, since they can reduce employees and consumers to quantitative measurements. Which of the following statements does this scenario exemplify?

Traditional business activities are being disrupted in a time of rapid technology advances.

Yvonne took over as senior vice president of corporate governance at a security systems company after a major scandal involving the CEO. To turn the company around, many ethics and corporate governance decisions needed to be made quickly. Yvonne helped install a new ethics program that changed leadership policies and allowed her to have direct communication with the board of directors in order to facilitate the leadership transition. Yvonne attempted to create employee satisfaction by negotiating for ethical behavior. Which type of leader best describes Yvonne in this scenario?

Transactional leader

Which of the following is a common mistake that firms make when developing an ethics and compliance program?

Transferring their "American" programs to the firm's international operations

Starbucks uses experiences like the Leadership Lab to build and differentiate the company from its competition.

True

In recent years, new laws and regulations have been passed to foster programs designed to improve business ethics and social responsibility. The most important of these are the Federal Sentencing Guidelines for Organizations (FSGO), the Sarbanes-Oxley Act, and the Dodd-Frank Act. With guidelines that provide for just punishment, adequate deterrence, and incentives for organizations to prevent, detect, and report misconduct, which of the following was created for federal prosecutions of organizations?

U.S. Sentencing Guidelines for Organizations

Grow It, a biotechnology firm, operates in Canada where it is believed that risk taking and innovation are important to achieve successful outcomes. For this reason, Grow It spends a great deal on research and development even though it does not always result in successful products. When entering into a business partnership with a biotechnology firm based in Great Britain, however, Grow It is asked by its new partner to make less risky investments. Which of the following concepts does this scenario relate to?

Uncertainty avoidance

Cocoa & Co, a chocolate company, joins a global organization that supports business responsibility. Cocoa & Co. has agreed to abide by the organization's set of 10 principles that promote human rights, sustainability, and the eradication of corruption. For example, one of the principles relates to human rights abuses. Since the cocoa supply chain is known for its child labor issues, Cocoa & Co. pledges to only source cocoa from regions where child labor is not an issue. Which global organization is Cocoa & Co. a member of in this scenario?

United Nations Global Compact

Natasha is tasked with creating a document that highlights her company's attributes for new employees. After writing a brief history of the company, she wants to list its enduring beliefs and ideals that are socially enforced—such as teamwork, trust, and integrity. Which of the following does Natasha want to include?

Values

A fitness equipment company donates money, resources, and employee time to causes and activities that improve their communities. For example, the company donated $20,000 worth of equipment to a local community center for teens. The donations in this scenario exemplify to the concept of _______.

Voluntary boundaries

Businesses may improve their communities, reduce government involvement by providing assistance to stakeholders, develop employee leadership skills, and foster an ethical culture and values that deter organizational misconduct by addressing which one of the following?

Voluntary responsibilities

Globally, chocolate is consumed by many people. The cocoa used to make chocolate usually comes from African countries such as Ghana and the Ivory Coast, which are riddled by child labor and human rights violations. Chocolate companies must balance stakeholder interests by establishing a strong supply chain, adhering to labor laws and regulations, and reporting on the due diligence of their supply chains. Which of the following statements does this example support?

When businesses attempt to provide what consumers want, broader societal interests can create conflicts.

A customer service support center sends an internal survey to employees. The anonymous survey includes questions about the types of ethical misconduct individuals have observed in the workplace and asks if employees ever feel pressure to compromise organizational standards. The survey asks the customer service agents if they have ever reported observed misconduct and if they have experienced retaliation as a result. What does this survey measure in this scenario?

Workplace integrity

A baggage handling manager believes their firm will not win a contract with a prominent airline unless an executive at the airline receives a bribe, and if the firm does not obtain the contract, it will have to lay off hundreds of baggage handlers across dozens of airports. The manager argues that bribery is justified because saving hundreds of jobs across the country creates more utility than obeying a law. Is it possible for this manager to be an act utilitarian? Why?

Yes, because an act utilitarian might argue that bribery is acceptable if it results in the greatest utility.

Your Corp., a cosmetics company, has several policies and procedures in place to deter and detect misconduct. Its international code of conduct is designed to guide business at Your Corp.'s international hubs while its supplier code of conduct dictates how companies in its supply chain should behave. For example, ingredients sourced for Your Corp. products must come from suppliers who meet certain sustainability criteria. Your Corp.'s ethics officer oversees the ethics program and the toll-free ethics hotline. Which of the following statements is true in this scenario?

Your Corp. has a strong ethics program.

Charlotte, Jamie, and Andrew are part of an assembly of individuals with an organized structure. Charlotte is from the marketing department, Jamie is from the purchasing department, and Andrew is from the finance department. Charlotte is the leader and acts as a facilitator at meetings. Charlotte, Jamie, and Andrew all actively participate in the discussions that take place. Together, the three individuals decide on the disbursements of work assignments. Which type of assembly are Charlotte, Jamie, and Andrew part of in this scenario?

a business team

To be effective, ethics training must start with a foundation that includes _______.

a code of ethics

The Children's Online Privacy Protection Act (COPPA) requires commercial Internet sites and mobile apps to carry privacy policy statements, obtain parental consent before soliciting information from children under the age of 13, and provide users with an opportunity to remove any information provided by children. Which of the following best describes these provisions?

a consumer protection law

Hiten is a member of the sustainability committee at his company. The committee, which helps advance the organization's sustainability goals, meets regularly to review performance, develop plans, and make decisions. The committee is made up of members from across the organization to improve the coordination and implementation of decisions. Which type of group is Hiten a member of in this scenario?

a formal group

A software company collects data on its customers, employees, communities, and shareholders to determine the firm's impact on these groups. The firm sets goals for the next year based on its discoveries. The software company then releases an impact report relaying the insights from this data and the company's goals moving forward. Which of the following orientations does this set of activities exemplify?

a stakeholder orientation

Chelsea did not like it when her coworker Cho disagreed with her openly during a team meeting. In response, Chelsea decided to ignore Cho. When Cho asked Chelsea a question, Chelsea would pretend she didn't hear her. Chelsea's behavior in this scenario is an example of _______.

abusive behavior

The concept that refers to how closely workplace decisions align with a firm's stated strategic direction and its compliance with ethical and legal considerations is known as _______.

accountability

Efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against are involved in which of the following?

affirmative action programs

Five people with similar tastes in outdoor activities and music discuss their interests while working and often meet outside work for dinner, concerts, sports events, or other activities. Which type of group is described in this scenario?

an informal group

The Sarbanes-Oxley (SOX) Act _______.

attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee

The most common reason for greenwashing is to_____.

attract environmentally conscious consumers

The ability to perceive whether a situation or decision has an ethical dimension is known as ethical _______.

awareness

A coffee company has had a digital app for years. The app was originally intended for its 50,000 loyalty program users to collect points and earn free coffee. However, the company decides to open up the app to its much broader group of 300,000 customers. Now, any customer can use the app to pay for coffee, and the company can collect customer data through app activity, order history, and more. This type of data is an example of _______.

big data

The practice of offering something in order to gain an illicit advantage is known as _______.

bribery

Acme Corp., a small robotics firm, experiences overnight success after a major retailer signs a multi-million-dollar contract with them. The start-up, which initially only had two employees, now must hire hundreds of employees. As part of the contract with the major retailer, Acme Corp. must develop a code of conduct. To do this, Acme Corp. uses a legalistic approach, focusing on laws and regulatory rules to create its codes and requirements. Which approach is Acme Corp. taking in this scenario?

compliance culture

When an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group, which of the following exists?

conflict of interest

An entertainment company requires all new employees to take a course in the traditions and history of the business, including its ethical dimensions. The company shares its mission statement with all new hires in order to instill its core values, such as integrity and honesty. Which of the following describes what is exemplified in this scenario?

corporate culture

Icon Work is a popular clothing manufacturer that sources environmentally friendly materials and only works with the most ethical suppliers. In the public eye, consumers and the media have very positive perceptions of the company. However, Icon Work has never developed a formal system of accountability, oversight, and control. As a result of this poor oversight, a reporter discovers that several of Icon Work's supply chain partners use child labor. This situation demonstrates that Icon Work lacks _______.

corporate governance

News quickly spreads that the host of a popular morning show participated in an illegal gambling ring. The show's executives know they must act swiftly and respond to potential damage, but they're hesitant to fire the host because the host is well-loved by the show's target demographic. Instead, they decide to suspend the host temporarily. Many viewers are pleased while others are outraged by the decision. Which of the following statements best captures the idea exemplified by this scenario?

crises are rarely handled perfectly

Candice is an event planner for a music festival. Word begins to spread of a global pandemic entering the United States. Candice knows her organization will lose a lot of money if she cancels the event, but she also knows attendees, performers, and vendors could become sick as a result of the health crisis if she does not cancel it. Candice must act swiftly. Which of the following is this scenario related to?

crisis management

When morality varies from one culture to another and "right" and "wrong" are defined differently, this concept is known as _______.

cultural relativism

Anton's Sporting Goods has been in business for 50 years. Recently, it fell behind competitors because it failed to adapt to technological changes. In the midst of upgrading its old website, a breach occurs, revealing sensitive customer information such as names, mailing addresses, and credit card information. Which of the following social issues is this scenario related to?

data privacy

Which of the following philosophies focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences?

deontology

ABC Candy sources its cocoa from a supplier with a transparent supply chain, a strict code of ethics, and a strong focus on human rights. Though the supplier's product is expensive, ABC Candy feels that working with the supplier offers many benefits to the impoverished community in which it operates. When a new supplier with lower ethics standards approaches ABC Candy and offers to supply the same product for a lower price, ABC Candy declines because it fears the local population could be harmed due to poor working conditions, child labor, or other human rights issues. In this scenario, ABC Candy operates according to the _______.

difference principle

Most laws are _______.

directly or indirectly the result of values derived from the major religions

The hiring manager for a mortgage lender discovers that one of the candidates for a customer service job is 65 years old. The manager is afraid the candidate might retire, leaving her to search for a replacement in the near future, so she refuses to hire the individual even though he meets or exceeds all of the requirements. Which of the following behaviors is the hiring manager engaging in?

discrimination

An accounting firm has a set of internal exams employees must take to demonstrate an understanding of basic accounting principles. Middle-level managers often steal the answer sheet and provide it to their subordinates to increase the likelihood of a high occurrence of passing scores. The behavior described in this scenario is associated with _______.

dishonest conduct

The Federal Sentencing Guidelines for Organizations (FSGO) _______.

encourages companies to assess their key risk areas and customize a compliance program to address these risks and satisfy key effectiveness criteria

Three managers—Ivan, Talia, and Geoff—all face an ethical issue related to data privacy, requiring each of them to choose among several actions that various stakeholders, such as their customers, will ultimately evaluate as right or wrong. Geoff, however, does not perceive that the situation at hand has an ethical dimension. Based on the information in this scenario, Geoff lacks which of the following?

ethical awareness

A problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong is called a(n) _______.

ethical issue

Ji-hoon, an experienced ethics and compliance professional, is contacted by a corporate recruiter. The recruiter describes a job that would require Ji-hoon to assess the needs and risks an organization-wide ethics program must address, conduct training programs for employees, monitor and audit ethical conduct, and review and update a code of ethics. Based on this job description, which role is the recruiter hoping Ji-hoon can fill?

ethics officer

Melinda develops and distributes the code of ethics at her company. Twice a year she reviews the company's code and makes necessary changes. On an ongoing basis, she confidentially answers employees' questions about ethical issues. When she has evidence of possible ethics code violations, Melinda takes appropriate action. Which role does Melinda fulfill in this scenario?

ethics officer

Bao works on the production line for a car manufacturer. Her supervisor closely monitors Bao's productivity and holds her to high standards, often to her detriment. For example, one day Bao did not feel well and asked to go home early. Management denied her request because Bao had not met her quota for the day. Bao often feels the company only focuses on its own interests. What type of culture is described in this scenario?

exacting

As the CEO of a company selling consumer packaged goods, Rachel has a duty of care to make informed and prudent decisions, with an obligation to avoid ethical misconduct and provide leadership in decisions to prevent ethical misconduct in the organization. This duty stems from Rachel's role as a(n) _______.

fiduciary

What did the Sarbanes-Oxley Act put more pressure on ethics officers to monitor?

financial reporting

An assembly of individuals with an organized structure that is explicitly accepted by the group is defined as a(an) _______.

formal group

A restaurant company is nominated for an award by a prestigious magazine. The magazine invites its readers to vote in an online poll to determine the winner. Liam, the restaurant owner, suggests the company pay people to vote for the restaurant so it can win the award, but his co-owner Olivia believes this would be unethical. Most of the company's female employees side with Olivia and say they will not tolerate this action. What individual factor does this relate to?

gender

Ranging from making environmental claims that are required by law and are therefore irrelevant (CFC-free) to puffery, or exaggerating environmental claims, to fraud, which of the following involves misleading a consumer into thinking that a product or service is more environmentally friendly than it really is?

greenwashing

Xi works for a clothing manufacturer. The company, which is very eco-friendly, uses materials made from recycled plastic and stresses the importance of recycling in general. When Xi discovers his coworker is improperly disposing of waste, he considers the matter to be extremely important because Xi knows his organization's stance on the issue. In this scenario, Xi demonstrates _______.

high ethical issue intensity

A board member of a pharmaceutical company learned that a drug was going to be recalled. She alerted her friends and family so they could sell their stocks in the company before the news became public. In which of the following behaviors did the board member engage in this scenario?

insider trading

Bonnie, a customer service agent, faces normative pressures from the religion she practices to behave in a certain way. The leader of her church always says that you should treat others how you wish to be treated. Bonnie applies this rule at work. For example, when a customer calls and says they cannot make the minimum monthly payment on their account due to financial hardship, Bonnie waives the fee because she believes it is the right thing to do. The way Bonnie is influenced by her religious beliefs relates to _______.

institutional theory

A car manufacturer claims it is committed to quality in the "core values" listed on its website; however, the company's employees often sacrifice quality in order to increase output. Furthermore, the managers routinely set goals related to output, but they do not set goals related to quality. Based on the information in this scenario, the car manufacturer lacks _______.

integrity

One of the most important and oft-cited elements of virtue, which refers to being whole, sound, and in an unimpaired condition, is known as _______.

integrity

Which of the following types of justice is based on the relationships between organizational members, including the way employees and management treat one another?

interactional

Individuals who believe they control the events in their lives by their own effort and skill,view themselves as masters of their destinies, and trust in their capacity to influence their environment have what is known as _______.

internal control

Which of the following are among the top types of observed misconduct? (Select three)

internet abuse, conflicts of interest, abusive behavior

Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is defined as _______.

locus of control

Externally imposed levels of appropriate conduct, such as laws, rules, and regulations, are known as _______.

mandated boundaries

John takes advantage of situations at work in order to further his career in sales. For example, when the customer relationship management system goes down and sales representatives are asked to report their monthly sales figures using the honor system, John inflates his sales numbers because he knows he is unlikely to be caught. In this scenario, John is more likely to _______.

manipulate, cheat, or act in a self-serving manner when the benefits gained from doing so are greater than the penalties for misconduct

Which of the following describes a situation where a person is faced with multiple choices, all of which are undesirable as defined by that person?

moral dilemma

Communication that is not written or oral, but rather expressed through actions, body language, expressions, or other methods is known as _______.

nonverbal communication

When managers overlook or stifle the importance of core values in their business decisions, the authors refer to this as _______.

normative myopia

In some cases, employees can anticipate their superior's desires without explicitly being asked to do something. This occurred when Toshiba inflated earnings after implicit pressure on employees by executives caused its division managers to misreport their earnings. Which of the following concepts is related to this scenario?

obedience to authority

Which of the following is the result of conditions that either provide rewards, whether internal or external, or fail to erect barriers against unethical behavior?

opportunity

The U.S. Sentencing Commission continued to emphasize that there should be standards and procedures in place to prevent and detect misconduct along with the importance of _______.

organization culture

Elena, an employee at ABC Marketing, has observed misconduct at work and wonders if she should report it. In the end, she decides not to do so because of the possible repercussions within her workplace. Which of the following is the element that most likely determined Elena's action in this scenario?

organization factors

Which of the following are factors in the ethical decision-making model? (Select three)

organizational factors, ethical issue intensity & individual factors.

Human rights, freedom of speech, and the fundamentals of justice are examples of which of the following concepts?

principles

Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely is known as _______.

puffery

The reprocessing of materials for reuse, especially steel, aluminum, paper, glass, rubber, and some plastics, is known as _______.

recycling

When various profit centers within corporations are unaware of the overall consequences of their actions on the firm as a whole, this is referred to as _______.

risk compartmentalization

Groups that influence and/or are affected by a company yet do not typically engage directly in transactions with that company are known as _______.

secondary stakeholders

What does a values orientation strive to develop?

shared values

Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as _______.

significant others

A water bottling company introduces a smaller plastic cap in an effort to substantially reduce the amount of plastic used in their product. This initiative demonstrates _______.

social responsibility

Most ethical issues concerning a business will become visible through _______.

stakeholder concerns

Clean Tech Industries, a technology company, publishes an annual report dedicated to outlining its efforts to assess and improve its business strategies, work practices, and technologies related to maintaining the natural environment. This report represents the concept of _______.

sustainability

When business strategies, economic sectors, work practices, technologies, and lifestyles are assessed and improved while maintaining the natural environment, this is known as _______.

sustainability

The application of scientific knowledge to efficiently solve real-world problems is known as _______.

technology

Opportunity can best be described as _______.

the conditions in an organization that limit or permit ethical or unethical behavior

John Rawls used what he called the veil of ignorance, which led him to develop which of the following? (Select two)

the difference principle & the equality principle

An internet and cable provider created a program to provide free or low-cost internet to economically marginalized kids across America. In addition, the company worked to expand its footprint in rural communities that were previously not serviced by any of the major internet service providers. Which ethics issue in technology does this example address?

the digital divide

The concept of varying levels of access to technology across social, geographical, and geopolitical groups is known as _______.

the digital divide

Climate change refers to _______.

the long-term variation in average weather patterns

Institutional theory can be defined as _______.

the theory that organizations operate according to taken-for-granted institutional norms and rules

The way that members of a society respond to uncertainty or ambiguity is referred to as _______.

uncertainty avoidance

A compliance culture is one that _______.

uses a legalistic approach to ethics

Which of the following philosophies argues that ethical behavior involves not only adhering to conventional morality standards but also requires considering what a mature person with a "good" moral character would deem appropriate in a given situation?

virtue ethics

Which of the following are criticisms of multinational corporations (MNCs)? (Select three)

1. Unfair competition 2. Their size 3. Exploitation of natural resources

Azaza Superstore, a public company with operations in more than 200 countries, does not have significant ties to any one nation. Azaza was founded in the United States, but now it is a globally recognized brand with a strong global strategy. Azaza is so large that it generates higher revenue than the gross domestic product (GDP) of some of the countries where it does business. Which of the following would Azaza Superstore be categorized as?

A multinational corporation

Many studies have found a positive relationship between which of the following?

An ethical culture and good business performance.

Which of the following global ethics issues is related to fair competition?

Antitrust activity

Aero Corp., a multinational biotechnology corporation, made illicit payments to leaders at pharmaceutical companies in order to win their business. When the illicit payments were uncovered, Aero's reputation was tarnished and Aero's leaders were replaced as a result. The new management team established an ethics and compliance system designed to proactively prevent misconduct and to detect it when it occurs. Which of the following statements is true of Aero in this scenario?

As a moral agent, Aero is required to obey the laws and regulations that define acceptable business conduct.

Which of the following is a performance management tool that details a company's performance through financial and nonfinancial perspectives, giving management a comprehensive view of the business?

Balanced scorecard

Which of the following types of culture is defined as one that utilizes a legalistic approach to ethics and uses laws and regulations to create its codes and requirements?

Compliance

Starbucks's Leadership Lab features classroom style learning to teach its partners about the brand.

False

What is the final step in implementing a stakeholder perspective?

Gaining stakeholder feedback

Which of the following statements describes the Sherman Antitrust Act?

It prohibits organizations from holding monopolies in their industries.

Which program recognizes sustainable building practices and strategies?

LEED

Which economist believed the market is a better deterrent to wrongdoing than new laws and regulations?

Milton Friedman

Because the concept of a moral philosophy is inexact, which of the following is true?

Moral philosophies must be assessed on a continuum rather than as static entities.

Which of the following refers to the specific principles or values people use to decide what is right and wrong?

Moral philosophy

Which of the following is based on the assumption that people are predictable and will seek to maximize the utility of their choices relative to their needs and wants?

Rational economics

Which of the following statements is true?

Some ethical issues are difficult to recognize because they are gray areas that are hard to navigate.

A multinational footwear company routinely destroys unsold sneakers from limited edition collections rather than donating or recycling the products to preserve product scarcity and brand exclusivity, a practice evoking much debate. This scenario supports which of the following statements?

Sustainability relates to ethical decision making.

Asia, a new financial manager for a publicly traded technology company, works closely with Dan, its chief financial officer. While helping Dan organize his files, she notices an accounting error that made the firm appear more profitable than it really was. As Asia digs deeper and finds more errors, she considers that perhaps Dan is engaging in unethical behavior. The next day, a federal regulatory agency begins an investigation of the company. Asia feels comfortable sharing her findings because she knows the company cannot fire her for doing so. Which of the following laws protects Asia in this scenario?

The Sarbanes-Oxley Act

Harassment is defined as discrimination on the basis of which of the following?

Union affiliation

Which of the following is created when a channel member (manufacturer, wholesaler, distributor, or retailer) has control of the entire business system, via ownership or contract, or through its purchasing ability?

Vertical system

Which of the following statements about white-collar criminals is true?

White-collar criminals tend to be people in positions of power, trust, respectability, and responsibility within a business or organization.

Direct statements, indirect statements, gestures, looks, labels, promotions, programs, and legends (or the lack thereof) can all be used to informally express _______.

a corporate culture

John, vice president of operations at We Care, Inc., approves the illegal disposal of toxic waste at his firm's international factory. John has committed _______.

a white-collar crime

The concept of board members being linked to more than one company is known as _______.

an interlocking directorate

The Sarbanes-Oxley (SOX) Act was passed to provide federal oversight of _______.

corporate accounting practices

An organization that has a strong ethical environment usually has a core value of placing _______ interests first.

customers'

In which type of organization is decision making delegated as far down the chain of command as possible?

decentralized

The four levels of social responsibility are _______.

economic, legal, ethical, and philanthropic

Which of the following are considered alternative sources of energy? (Select three)

geothermal power, wind power & nuclear power

Standards of behavior that groups expect of their members are known as _______.

group norms

Connected devices may interact without human intervention through the use of _______.

machine-to-machine (M2M) communication

The most controversial form of alternative energy is _______.

nuclear power

Successful ethics training should accomplish which of the following? (Select three)

1. Help employees identify the ethical issues 2. Provide employees a means to address and resolve ethical issues. 3. Identifying designated ethics personnel

Which of the following provides the foundation or underlying platform that enables other technologies to be programmed to simulate human behavior?

Artificial intelligence

Advertising, environmental hazards, financial practices, and product safety are all major areas of concern in what social responsibility issue?

Consumer protection

Which of the following is an office created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and is charged with creating a better system for analyzing the financial industry?

The Office of Financial Research

According to Kohlberg's model of cognitive moral development, why do different individuals make different decisions in similar ethical situations?

They are in different stages of cognitive moral development.

Having a greater connectivity to the Starbucks's culture will improve ethical conduct within the stores.

True

Which of the following is one of the biggest contributors to illnesses in developing countries?

Water pollution

What ties an organization's products directly to a social concern through a marketing program?

cause-related marketing

Corporate governance is defined as _______.

formal systems of accountability, oversight, and control

The Consumer Financial Protection Bureau (CFPB) _______.

has supervisory power over credit markets as well as the authority to monitor lenders

A cultural audit _______.

is an assessment of an organization's values

Creating a perception or belief by words that intentionally deceive someone is defined as _______.

lying by commission

Increasingly, corporations are viewed not merely as profit-making entities but also as _______.

moral agents accountable for their conduct to their stakeholders.

Characteristics of a centralized organization include which of the following? (Select three)

1. Clear-cut division of labor 2. low problem recognition 3. many formal rules

Based upon author research and industry reports, what percentage of employees always try to follow company policies?

40%

Which of the following best describes an ethics audit?

A systematic evaluation of an organization's ethics program and performance to determine effectiveness

Consumer shopping habits, social media activity, and web browsing history are all examples of which of the following?

Big data

Which of the following refers to precedents established by judges?

Common Law

An independent agency within the Federal Reserve System regulates the offering and provision of consumer financial products or services under the Federal consumer financial laws. For example, it enforces a federal ban on discrimination in lending cases where a customer is denied credit because of their sexual orientation or gender identity. Which of the following independent agencies is described in this example?

Consumer Financial Protection Bureau (CFPB)

Decreed by President John F. Kennedy in 1962, which of the following outlined four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard?

Consumers' Bill of Rights

A retailer has six core values: think creatively, speak your mind, influence the future, always be learning, be truthful, and be transparent. These shared values influence the behavior of the company's employees. Which of the following do the shared values mentioned in this scenario relate to?

Corporate culture

A set of values, norms, and artifacts—including ways of solving problems that members (employees) of an organization share—describes which of the following?

Corporate culture

Aaliyah is the human resource manager for an accounting firm. She is responsible for overseeing compensation and benefits, training and development, and occupational health and safety. Which primary stakeholder group does Aaliyah support?

Employees

Which of the following is considered a primary stakeholder group?

Employees

Globo Tech, a multinational smartphone company, has several factories in Thailand and China where labor is affordable. Globo Tech pays very low wages compared to local employers in Thailand and China, but people need the work. To which common criticism of MNCs does this scenario relate?

Exploiting the labor markets of host countries

Eliana is the ethics officer for a major aluminum manufacturer, where she is responsible for managing the organization's ethics and legal compliance programs. After concerns surface that the firm is generating excess waste, several of its stakeholders push for an ethics audit. In order to comply with this request, which of the following should Eliana do first?

Gain the support of top management and board of directors.

A values-based ethics culture is best described by which of the following statements?

It relies upon an explicit mission statement that defines the core values of the firm.

The famous statement, "Act as if the maxim of the action were to become by will a universal law of nature," is called _______.

Kant's Categorical Imperative

Which of the following concepts is defined as a person's personal philosophy about what is right or wrong?

Morals

The act/agency that enforces regular surprise inspections to ensure businesses maintain safe working environments is called the _______.

Occupational Safety and Health Administration

Quick Search is a popular search engine based in the United States that services every country in the world. It crawls the web and stores data on the page URLs it finds so that when people search for different keywords and phrases, Quick Search can provide good results. Which of the following statements is true?

People have the right to ask Quick Search to remove results for queries that include their name.

Which of the following uses values or algorithms to provide data-backed decision options?

Predictive analytics

Which of the following ethics issues relates to data protection, surveillance, and employee privacy?

Privacy

A hotel decided to eliminate all meat from its room service menu to support animal welfare. However, the hotel failed to consider the long-term trade-offs of its decision. For example, the hotel ended contracts with several local meat suppliers, hurting the community in which the hotel operates. Also, the hotel now sources meat alternatives from all over the country, greatly expanding the carbon footprint of its supply chain. Which of the following accurately classifies the type of decision the hotel made when eliminating meat?

Single-impact-driven decision

Created in 1997, which of the following was an international treaty meant to curb global greenhouse gas emissions by having countries voluntarily reduce national outputs?

The Kyoto Protocol

Starbucks is investing in the partner experience to create longer term relationships with its store managers and improve the customer experience.

True

Which of the following is defined as the pressure to compromise organizational standards, observed misconduct, reporting of misconduct when observed, and retaliation against reports?

Workplace integrity

An employee of a biotechnology firm faces a problem with one of its medication products. There are several actions the employee can take that have negative outcomes, but there is no right or ethical choice to be made. What is the employee facing?

an ethical dilemma

Social responsibility can be viewed as a(n) _______.

contract with society

The National Advertising Division (NAD), an investigatory division of the BBB's National Advertising Review Council, recommended that an Internet communications company discontinue its "fastest overall speeds" claims so as to not mislead consumers. Although the communications company is not legally mandated to follow the decision, advertising perceived to be misleading could attract the attention of the media and public interest groups if not corrected. Which of the three dimensions of institutionalization is this related to?

core practices

Fines or imprisonment may be imposed as punishment for breaking the law under _______.

criminal law

The concept that all director decisions should be in the best interests of the corporation and its stakeholders is known as a _______.

duty of loyalty

Which of the following statements describes sustainable development?

e. It has become a top concern for many businesses as it involves meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Right or acceptable behavior in terms of the consequences for the individual is known as _______.

egoism

The ability to perceive whether a situation or decision has an ethical dimension is defined as _______.

ethical awareness

Large-scale unethical activities that follow recognizable phases of escalation, from ethical issue recognition and the decision to act unethically to the organization's discovery of and response to the act, are known as _______.

ethical disasters

A fast-food company hires a new CEO. When determining the CEO's salary, it looked to its closest competitor to see what its CEO was paid and then increased it by $100,000. The new CEO's executive compensation was influenced by _______.

external equity

A payment made to obtain or retain business that is not considered a bribe within the United States is defined as _______.

facilitation

According to researchers, normative values largely originate from which of the following? (Select three)

family, government & religion

A health insurance company implements a new policy that individuals filling a particular prescription will be required to obtain their medications solely from the company's mail-order pharmacy. To gauge its member's perceptions of this policy, the company issues surveys and monitors social media for chatter. The health insurance company is engaging in which step of implementing a stakeholder perspective?

gaining stakeholder feedback

Accountants, lawyers, financial rating agencies, financial reporting services, and risk assessors of financial products—who must trust and be trusted by stakeholders to make business work—are all examples of _______.

gatekeepers

The ability or authority to guide and direct others toward a goal is defined as _______.

leadership

As the chief ethics officer of a biotechnology company, Drake is responsible for monitoring the three dimensions of institutionalization. Currently, Drake is reviewing how his company operates within the externally imposed levels of appropriate conduct—such as laws, rules, and regulations—known as _______.

mandated boundaries

Which of the following is defined as the power inequality between superiors and subordinates?

power distance dimension

Our organizational ethical decision-making framework demonstrates _______.

the many factors that influence decisions as ethical or unethical

The unconscious reference to one's own cultural values, experiences, and knowledge is called _______.

the self-reference criterion

Leia was the chief financial officer for a publicly traded energy company. A newly hired accountant came across several bank accounts in the company's name that Leia used to pay for personal travel expenses including airfare and hotels. The accountant reported these suspicious accounts to the FBI. In this scenario, which of the following did the accountant engage in?

whistle-blowing

Crimes perpetrated every year by nonviolent business criminals are known as _______.

white-collar crime