BUS 240 Business Ethics MINE
6. The main function of a code of ethics is to ______.
guide managers and employees in making sound decisions and choices every day.
3. Which of the following is recommended by the Organization for Economic Cooperation and Development (OECD) Guidelines?
Companies should contribute to the innovative capacities of host countries.
10. Which of the following statements is advice from the Institute of Business Ethics for creating a code of ethics from scratch? Answers: * Use a framework that includes the customers, but not the competitors. * Put the code on the organization's website rather than sending it to all stakeholders individually. * Get an endorsement from the chairperson and the board. * Pilot-test the code solely on lower-level, operational employees.
Get an endorsement from the chairperson and the board.
10. ________ refers to a new capability that allows employees to work from home and log into to their company's network remotely.
telecommuting
5. _______ has made it difficult for organizations to precisely measure the amount of time that employees are on-site.
telecommuting
7. _______ will create a distinction between thin consent and thick consent according to Adam Moore.
the state of the job market
13. Which of the following is true of business ethics?
Business ethics should not be applied as a separate set of moral standards or ethical concepts from general ethics.
2. "Do unto others as you would have them do unto you" explains the _________.
Golden Rule
3. In an organization, ________ see themselves as providing products (or services) to customers who have already expressed a need for and a desire to purchase those products.
Marketers
14. _______ refers to a new capability that allows employees to work from home and log into to their company's network remotely.
Telecommuting
5. The basic assumption of ethical theory is that
a person as an individual or community is in control of all the factors that influence the choices he or she makes
7. Which of the following will most likely influence the moral standards of an individual?
a strict family upbringing
9. Which of the following is true of a whistle-blower hotline?
It is a telephone line that employees use to anonymously alert a company of suspected misconduct.
5. Which of the following statements is true of the Sarbanes-Oxley Act?
It prohibits retaliation against whistleblowers and encourages the act of whistle-blowing itself.
5. In ________ corporate social responsibility (CSR), organizations take a philanthropic approach by underwriting specific initiatives to give back to the company's local community or to designated national or international programs.
altruistic
10. ThinkNow is an advertising firm based in Dallas, Texas. One of its departments is in charge of the hiring process and is responsible for the orientation of newly hired employees. Which of the following organizational areas does this department represent?
human resources
2. For the accounting profession, the last resort for ethical guidance and leadership is the Code of Conduct issued by the ________.
*American Institute of Certified Public Accountants (AICPA)
8. According to the value chain of an organization, which of the following is classified as a primary activity?
*sales and marketing
6. The quality by which the pursuit of one value is a good way to reach another value is known as____________
Instrumental value
QUIZ 7 1. ________ whistle-blowing involves an employee bringing corporate misconduct to the attention of his or her manager or supervisor, who then follows established procedures to address the misconduct within the organization.
Internal Whistle-Blowing
10. Which of the following functions does a code of ethics perform?
It clarifies an organization's cornerstones to its employees, managers, and stakeholders.
3. Which of the following statements is true of the federal Civil False Claims Act?
It did not offer whistle-blowers protection from retaliatory behavior aimed at them.
9. In addition to achieving social benefits, which of the following best illustrates an example of a company effectively implementing corporate social responsibility (CSR)? It provides its employees with free lunch. It gives better pricing deals to older clients. It fulfills all its legal obligations. It allows flexible working hours for its employees.
It fulfills all its legal obligations
5. Identify a true statement about value chain. Answers: * It helps coordinate with human resources in the recruitment, training, and development of personnel for all aspects of an organization. * It is inclusive of the values, beliefs, and norms shared by all the employees of an organization * .It represents the sum of all the policies and procedures—both written and informal—from each of the functional departments in an organization. * It is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service.
It is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service.
7. Spark Inc. (SI), a multinational corporation, had reported large losses in the previous financial year. To overcome these losses, the company planned to take the instrumental approach to corporate management. Which of the following best illustrates this approach? Answers: * It uses its resources to enhance the productivity of employees and thus increases profits. * It provides employees with cab services or gives them fuel allowance. * It uses biodegradable plastic containers in its office cafeteria. * It provides employees with healthy meals and has a gymnasium at the workplace.
It uses its resources to enhance the productivity of employees and thus increases profits.
6. Why was the Foreign Corrupt Practices Act criticized? Answers: The act does not require full disclosure of funds that were taken out of or brought into the United States. The act does not address the illegality of using the U.S. mail or wire communications to transact a fraudulent scheme. **The act formally recognizes the facilitation payments, which would otherwise be acknowledged as bribes**. The act requires corporations to fully disclose all transactions conducted with foreign officials in line with the SEC provisions.
The act formally recognizes the facilitation payments, which would otherwise be acknowledged as bribes.
QUIZ 4 1. Which of the following statements is true of corporate social responsibility (CSR)? Answers: The ideology of CSR speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system." The instrumental approach to CSR states that a corporation has an obligation to society over and above the expectations of its shareholders. The awakening to CSR for most companies happened only after being surprised by public responses to issues that had not previously been a part of their business responsibilities. The social contract approach to CSR states that the only obligation of a corporation is to maximize profits for its shareholders.
The awakening to CSR for most companies happened only after being surprised by public responses to issues that had not previously been a part of their business responsibilities.
7. GeoTransmit, a large multinational telecommunications company, hid from its investors the extensive debt and losses it had accumulated. Its fraudulent accounting behavior was eventually discovered, and the company went bankrupt. Which of the following statements is true of the future of GeoTransmit and its stakeholders?
The different stakeholders of GeoTransmit will be affected in different ways.
6. Which of the following is an effect of merging the roles of the chief executive officer and the chairperson of the board? Answers: * The oversight provided by the board is increased. * The power of the stockholders is maximized. * The independence of the board is compromised. * The influence of the CEO is minimized.
The independence of the board is compromised.
3. Which of the following statements is true of the social contract approach to corporate management? Answers: The modern social contract approach argues that there is an obligation for the corporation to meet the demands of society rather than just the demands of a targeted group of customers. The primary focus of the old social contract laid emphasis on equal advancement in the quality of life and economic growth. The consequences of the modern social contract approach to corporate management is growth at the expense of rising costs, wages growing at a lower rate than inflation, and so on. The main focus of the old social contract was to maintain a longer-term perspective than just the delivery of quarterly earnings numbers.
The modern social contract approach argues that there is an obligation for the corporation to meet the demands of society rather than just the demands of a targeted group of customers.
TEST 2 1. Identify a feature of the outside members of an organization's board of directors. Answers: They have less importance than the inside members in the decision-making process. They may comprise the company's creditors, suppliers, or consultants. They are the ones who make all the major organizational decisions without consulting the inside members. They are not permitted to have financial connections to the organization.
They may comprise the company's creditors, suppliers, or consultants.
3. The stage in which an individual is focused on self-chosen ethical principles found to be comprehensive and consistent is _________.
Universal ethical principle orientation
7. According to the concept of ________, the traditions of one's society, one's personal opinions, and the circumstances of the present moment define one's ethical principles.
ethical relativism
5. The field of ________ is the study of how people try to live their lives according to a standard of "right" or "wrong" behavior.
ethics
5. Which of the following actions is a step toward running a company successfully? Answers: * evaluating risk-versus-reward scenarios frequently, regardless of the company's size * merging the roles of the chief executive officer and the chairperson of the board * liberating the chief executive officer from constraints laid by the board members * reducing the board's independence and decreasing the power of stockholders
evaluating risk-versus-reward scenarios frequently, regardless of the company's size
6. Sandra, an executive officer of a company, has collected reports which prove that the CEO has been misappropriating company and investor funds. She takes the matter public and issues a statement against the CEO. Sandra is an ________ whistle-blower.
external
3. Under the Foreign Corrupt Practices Act, payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action are called ________. Answers: implicit payments accentuation payments alternative payments facilitation payments
facilitation payments
9. According to Joseph F. Keefe, which of the following is a major trend behind the corporate social responsibility (CSR) phenomenon? Answers: nationalization globalization the failure of the industrial sector financial moral hazard
globalization
5. The main focus of the Cadbury report, established by Sir Adrian Cadbury in 1992 to address financial aspects of corporate governance, was on ________. Answers: corporate social responsibility external governance recruiting policy internal governance
internal governance
10. Under the Federal Sentencing Guidelines for Organizations, the death penalty Answers: cannot be levied upon organizations if it means putting them out of business. allows the state to appropriate half of the total assets of an organization. can only be conferred upon multinational corporations and not on smaller businesses. **is warranted where the organization was operating primarily for a criminal purpose**
is warranted where the organization was operating primarily for a criminal purpose
10. Identify a true statement about the corporate governance committee of a company. Answers: * Its members are elected by shareholders at the annual shareholders' meetings. * It selects the company's chief executive officer (CEO). * It oversees the setting of compensation packages for all the senior executives. * It monitors the ethical performance of the company.
it monitors the ethical performance of the company
QUIZ 5 1. A commitment to good corporate governance
makes a company more attractive to investors.
7. The first step in a policy of disregarding the corporate governance model is the decision to Answers: nominate a compensation committee by the board of directors of an organization. elect an auditing committee to oversee the financial reporting processes of an organization by the chief executive officer (CEO). reach out to consultants to find new solutions on maximizing the effectiveness of corporate governance. merge the roles of chief executive officer (CEO) and chairperson of the board into one individual.
merge the roles of chief executive officer (CEO) and chairperson of the board into one individual.
12. Corporate social responsibility (CSR) always assumes that a corporation is Answers: permitted to ignore federal and state legal obligations. reluctant in committing itself to follow a retrenchment strategy. working only toward achieving its profit goals. operating in a competitive environment.
operating in a competitive environment.
3. The board of directors of a company Answers: is not accountable to the company's stakeholders. oversees the governance of the organization. ideally have less power than the CEO. should ideally be elected by the CEO.
oversees the governance of the organization.
12. Over the last five decades, the issue of corporate social responsibility has advanced from an abstract debate to a core ________ issue with clearly established legal liabilities.
performance-assessment
8. Alison Anderson, the CEO of Anderson Inc., laid the foundation for apt professional behavior in her workplace. She is honest, aware, and sensitive and is considered a role model by young entrepreneurs. Which of the following basic categories of ethics is depicted in this scenario?
personal integrity
8. If the board of an organization is to serve its purpose in setting the operational tone for the organization, it should be composed of members who Answers: * support a decentralized model of corporate management. * represent professional conduct in their own organizations. * are more likely to take risks in high-risk situations. * are opposed to the practice of utilitarianism.
represent professional conduct in their own organizations.
9. A ________ is defined as someone with a share or interest in a business enterprise.
stakeholder
20. A primary activity of an organization according to the value chain is that of ________. Answers: human resources management recruitment and remuneration management organizational development management supply chain management
supply chain management
9. ________ serves as a support line function to key functional areas in an organization's value chain.
technology/human resources management
2. Walter Salmon's checklist to assess the quality of the board recommends
that there be three or more outside directors for every insider
7. The formula used to calculate the total fine sentenced by the Federal Sentencing Guidelines for Organizations (FSGO) is Answers: the base fine divided by the culpability score. the base fine plus the culpability score. the base fine minus the culpability score. **the base fine multiplied by the culpability score**.
the base fine multiplied by the culpability score
19. Ideally, the human resources function within an organization should be directly involved in Answers: the incorporation of customer feedback from market research and competitive feedback from closely monitoring the competitors. the marketing of the organization's products. the documentation of disciplinary behavior and remedial training, if needed. the maintenance of the technology in the organization—data transfer and security, e-mail communications, internal and external websites, and so on.
the documentation of disciplinary behavior and remedial training, if needed.
14. In an organization, conflict of interest is most likely to occur when Answers: an interviewer has lesser experience than the candidate being interviewed. the organization's product has the potential to be harmful to the organization's customers. an employee is unhappy with the performance ratings given by his or her manager. the hourly wage paid by the organization is less than the National Minimum Wage (NMW).
the organization's product has the potential to be harmful to the organization's customers.
4. The merging of the roles of the chief executive officer and the chairperson of a board is inadvisable because ________. Answers: the power of the chief executive officer decreases the independence of the board is maximized the financial goals of a company takes utmost importance the power of the stockholders is minimized
the power of the stockholders is minimized
6. A person is focused on self-chosen ethical principles that are found to be comprehensive and consistent at the ________ stage of Kohlberg's stages of ethical reasoning.
universal ethical principle orientation
9. A person is focused on self-chosen ethical principles that are found to be comprehensive and consistent at the ________ stage of Kohlberg's stages of ethical reasoning.
universal ethical principle orientation
17. Actions placed within a strictly moral context instead of basing actions on the needs of a particular situation is termed ________. Answers: pragmatic ethics normative ethics virtue ethics universal ethics
universal ethics
4. It is difficult to track the history of internal whistle-blowing because
Since examples of internal whistle-blowing rarely receive media attention
7. ________ is about the way in which boards oversee the running of a company by its managers and how board members are, in turn, accountable to shareholders and the company.
Corporate governance
2. Another term for corporate social responsibility (CSR) is ________.
corporate citizenship
6. Corporate social responsibility (CSR) always assumes that a corporation is
operating in a competitive environment
8. Over the last five decades, the issue of corporate social responsibility has advanced from an abstract debate to a core ________ issue with clearly established legal liabilities.
performance-assessment
6. Which of the following statements is true of parties charged with vicarious liability? Answers: They only comprise the individuals directly responsible for the damage. They are seldom in supervisory or managerial roles. They only comprise individuals who were the recipients of the damage. They are held responsible for the actions of their subordinates.
They are held responsible for the actions of their subordinates.
10. The study of how ethical theories are put into practice refers to _________.
applied ethics
7. The two types of whistle-blowing, internal and external, are categorized based on
who the whistle-blower choose to inform
4. "Do unto others as you would have them do unto you" explains the ________.
Golden Rule
2. A feature of the King I report on corporate governance, established by Mervyn King in 1994, is that ________. Answers: it limited its scope to internal corporate governance it limited its scope to financial and regulatory accountability it was inclusive of the recruiting policies of an organization it considered the impact of corporations' on the larger community
it considered the impact of corporations' on the larger community
4. The culpability score of an organization can be decreased if Answers: the CEO of the organization was involved in or tolerated the criminal activity. **the organization had an effective program to prevent and detect violations of law**. the organization can prove that an employee was entirely responsible for the criminal conduct. the management lacked knowledge about the crime.
the organization had an effective program to prevent and detect violations of law
5. The term "business ethics" is sometimes considered an oxymoron because
the recent spate of financial scandals portrays organizations as fundamentally unethical.
2. Which of the following is true of facilitation payments under the Foreign Corrupt Practices Act (FCPA)? Answers: **The FCPA finds them acceptable if they expedite a routine governmental action.** The FCPA finds them acceptable if they involve securing new businesses overseas. The FCPA permits them if they secure exclusive contracts from foreign officials. The FCPA recognizes them as bribes or an illegal form of payment.
The FCPA finds them acceptable if they expedite a routine governmental action.
8. Which of the following is a difference between grease payments and bribes under the Foreign Corrupt Practices Act? Answers: Unlike grease payments, bribes are used to facilitate processes approved of by law. Unlike grease payments, bribes are meant to secure a routine governmental action. **Unlike grease payments, bribes induce foreign officials to act in violation of their lawful duty**. Unlike grease payments, bribes include donations to bona fide charitable organizations.
Unlike grease payments, bribes induce foreign officials to act in violation of their lawful duty
Exam 1 1. ________ is defined as ethical choices that offer the greatest good for the greatest number of people.
Utilitarianism
Quiz 1 Understanding Ethics 1. _______ refers to a set of personal principles formalized into a code of behavior.
Value system
20. _______ is a legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in an incident.
Vicarious liability
11. The practices of making a company's operations ________ to offset damage to the environment through their greenhouse gas emissions was initially developed as a solution for those industries that face significant challenges in reducing their emissions. Answers: focus on consumerism carbon neutral backward integrated environmentally harmless
carbon neutral
3. The quality by which the pursuit of one value is a good way to reach another value is known as ________.
instrumental value
3. One of the responsibilities of the audit committee of a company is to
monitor the company's choice of accounting policies and procedures.
4. The Cadbury report was established by Sir Adrian Cadbury in 1992 to address
the financial aspects of corporate governance.
8. Which of the following statements is true of the federal Civil False Claims Act? Answers: It did not reward whistle-blowers if their cases implicated the government in any way. It did not offer whistle-blowers protection from retaliatory behavior aimed at them. It rejected cases brought by whistle-blowers who were motivated by monetary gain. It penalized whistle-blowers heavily if they had no evidence to support their claims.
It did not offer whistle-blowers protection from retaliatory behavior aimed at them.
10. Which of the following illustrates that a company has failed at implementing corporate social responsibility (CSR)? Answers: It does not provide flexible working hours to its employees. It does not operate in hazardous working environments. It does not pay all taxes related to the profitable business operations. It does not provide stock options for its employees.
It does not pay all taxes related to the profitable business operations.
2. Which of the following is true of the penalties under the Foreign Corrupt Practices Act? Answers: The Securities and Exchange Commission can impose a civil fine of up to $2,000 per violation upon corporations and other business entities. The Department of Justice can enforce criminal penalties of up to $20 million per violation for corporations and other business entities. Officers, directors, stockholders, employees, and agents are subject to a fine of up to $250,000 per violation and imprisonment for up to five years. Penalties under the books and record-keeping provisions can reach up to $25 million and 5 years' imprisonment for individuals and up to $50 million for organizations.
Officers, directors, stockholders, employees, and agents are subject to a fine of up to $250,000 per violation and imprisonment for up to five years.
2. Which of the following statements is true of the guidelines offered by Richard DeGeorge for organizations doing business in other countries? Answers: They only addressed multinational corporations working in developed countries. They represented an ethical ideal that, at best, provided a conceptual foundation. They were lauded for covering all the severe types of business transgressions. They endorsed the principles of utilitarianism which states that the ends always justify the means.
They represented an ethical ideal that, at best, provided a conceptual foundation.
2. _______ refers to ethical choices that consider the greatest good for the greatest number of people.
Utilitarianism
9. Over the last five decades, corporate ethics has moved from the domain of human resource departments into the ________.
organizational mainstream
10. According to Joseph F. Keefe, which of the following is true of the major trends behind the corporate social responsibility (CSR) phenomenon? Answers: * * (what I chose) Globalization represents a new stage of capitalist development, this time with public institutions in place to protect society by balancing private corporate interests against broader public interests. * Corporations are under increasing pressure from diverse stakeholder constituencies to demonstrate that business plans and strategies are environmentally sound and contribute to sustainable development. * Companies easily conceal whatever they do (good or ill) as it will not be known at all. * In the United States and other developed nations, citizens have complete confidence in the public sector as the best and most appropriate venue for addressing a growing list of social problems.
(missed) Corporations are under increasing pressure from diverse stakeholder constituencies to demonstrate that business plans and strategies are environmentally sound and contribute to sustainable development.
16. For the accounting profession, the last resort for ethical guidance and leadership is the Code of Conduct issued by the ________. Answers: American Institute of Certified Public Accountants International Association of Public Accountants Certified Public Accountants Association Accounting Institute of Ethical Conduct
American Institute of Certified Public Accountants
7. Marketing professionals abide by a code of ethics adopted by the ________.
American Marketing Association (AMA)
QUIZ 3 1. The code of ethics adopted by the ________ speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system."
American Marketing Association (AMA)
10. Which of the following principles and standards of behavior is advocated by both the Organization for Economic Cooperation and Development (OECD) and the UN Global Compact? Answers: Businesses should not involve themselves in the environmental issues of other countries. Businesses should utilize the natural resources of their host country to the fullest. Businesses should abolish child labor, combat bribery, and fight corruption. Businesses should observe only the customs of their own country at all times.
Businesses should abolish child labor, combat bribery, and fight corruption.
QUIZ 4 Ch. 9 Ch. 10 1. Which of the following principles and standards of behavior is advocated by both the Organization for Economic Cooperation and Development (OECD) and the UN Global Compact?
Businesses should abolish child labor, combat bribery, and fight corruption.
15. Cathy heads the research and development (R&D) team of Anderson Enterprises. Which of the following R&D functions should Cathy and her team undertake to allow the organization capture and maintain a leading position in its market? Answers: Cathy and her team should manage individual hardware and software needs that are specific to the organization and its line of business. Cathy and her team should coordinate the recruitment, training, and development of personnel for all aspects of the organization. Cathy and her team should certify the accuracy of the company's financial statements. Cathy and her team should make a complex set of risk assessments and technical judgments in order to deliver a product design
Cathy and her team should make a complex set of risk assessments and technical judgments in order to deliver a product design
4. A company's _________should clarify its cornerstones - its mission, values and principles - to its managers, employees, and stakeholders.
Code of Ethics
3. A (n) is defined as a central guide that supports day-day-day decision making at work.
Code of ethics
19. Which of the following statements is true of the advances in workplace technology over the last two decades? Answers: Companies cannot monitor their employees to identify the rate of productivity. Companies cannot send personal data of their customers to any part of the world to take advantage of lower labor costs. Companies are facing the issue of maintaining a flexible work environment. Companies are now able to make vast amounts of information available to employees and customers.
Companies are now able to make vast amounts of information available to employees and customers.
17. Information can be digitized and transmitted over fiber-optic cables because of the recent advances in technology. What implications does this have? Answers: Customers' personal information can no longer be sent to or processed in other countries. Companies have fewer ways in which they can attend to the needs of their customers. Companies can reduce their expenses by shipping work to countries with low labor costs. Customer services and tech support services are now bound by geographic borders.
Companies can reduce their expenses by shipping work to countries with low labor costs.
4. Which of the following statements is true of enforcing global ethics? Answers: * Nations of the world will experience no difficulty governing their internal politics when implementing a global ethical standard. * Enforcing global ethics requires that all multinational companies follow the philosophy of utilitarianism. * Nations of the world will experience no difficulty adhering to global standards for ethical performance. * Companies may be held accountable for ethical performance within their home countries.
Companies may be held accountable for ethical performance within their home countries.
4. Which of the following is an example of corporate social responsibility (CSR)? Answers: Dawson Inc. uses a clean-fuel technology shuttle for employee conveyance. Larsen Inc. provides free lunch coupons to its employees. Brenner Enterprises gives its employees greater freedom in choosing projects. Infinite Corp. promotes team building activities for employees.
Dawson Inc. uses a clean-fuel technology shuttle for employee conveyance.
5. The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were initially a part of the ________. Answers: Public Company Accounting Oversight Board International Bureau of Economic Analysis Dodd-Frank Wall Street Reform and Consumer Protection Act Declaration on International Investments and Multinational Enterprises
Declaration on International Investments and Multinational Enterprises
9. Which of the following is an advantage of globalization? Answers: Children are no longer offered employment in "sweatshop" production facilities. National markets have successfully taken over regional trade blocs on a global scale. Multinational corporations are unable to exploit the people of less-developed countries. Developing nations can leverage their natural resources to attract foreign investment.
Developing nations can leverage their natural resources to attract foreign investment.
UNIT 3 TEST 1. The ________ refers to the legislation that was promoted as the "fix" for the extreme mismanagement of risk in the financial sector that led to a global financial crisis in 2008-2010.
Dodd-Frank Wall Street Reform and Consumer Protection Act
2. A situation in which there is no obvious right or wrong decision, but rather a right or right answer is termed________.
Ethical Dilemma
4. ________ looks at the information available to people to resolve an ethical dilemma, and draws conclusions based on that information in relation to their own ethical standards.
Ethical reasoning
13. Which of the following statements is true of Milton Friedman's view of the corporate world? Answers: Friedman argues that it is not considered unethical for a corporation to just deliver the profits of the company to the society rather than delivering it to its investors. Friedman's theory that a company no longer requires senior executives to be accountable to the board of directors has been a crucial turning point in the business world. Friedman's position illustrates that an organization has a social responsibility that goes beyond serving the interests of their stockholders. Friedman argues that, as an employee of the corporation, a manager has an ethical obligation to fulfill his role in delivering on the expectations of his employers.
Friedman argues that, as an employee of the corporation, a manager has an ethical obligation to fulfill his role in delivering on the expectations of his employers.
QUIZ 2 Defining Business Ethics 1. The principle for resolving an ethical dilemma that considers "do unto others as you would have them do unto you" is the ________.
Golden Rule
3. Which of the following is true of cyberliability? Answers: It does not cover categories like racial discrimination, defamation, and libel. It has no negative repercussions for the employer or the company involved. It extends to any form of harassment that reaches an employee via e-mail. It only applies to crimes that involve the patrons of commercial Internet cafés.
It extends to any form of harassment that reaches an employee via e-mail.
5. Which of the following statements is true of the Federal Sentencing Guidelines for Organizations? Answers: It holds businesses liable for the criminal acts of their employees and agents. It covers very few business crimes. It holds organizations liable only for fraudulent activities in foreign markets. It decreases the costs of unethical behavior.
It holds businesses liable for the criminal acts of their employees and agents.
5. Which of the following statements is true of globalization? Answers: * It leads to the replacement of regional trade blocs with national markets. * It impacts the commercial, economic, social, and political environment. * It makes countries and markets more independent of each other. * It offers multinational companies fewer ways to reduce their expenses.
It impacts the commercial, economic, social, and political environment.
8. Which of the following statements is true of thin consent according to Adam Moore? Answers: It is not dependent upon the state of the job market. It is given when an employee has no other choice. It is consent given on behalf of somebody else. It is a form of consent that is not legally binding.
It is given when an employee has no other choice.
9. Which of the following statements is true of thick consent? Answers: It is given when employees have little or no choice. It is not affected by the state of the job market. It is given when employees have realistic job alternatives. It signals that the consent of employees was forced.
It is given when employees have realistic job alternatives.
6. Which of the following statements is true of the UN Global Compact? Answers: * It encourages actions that cause the greatest good for the greatest number of people. * It serves as a guideline for transparency and public accountability. * It ignores the exploitation of less-developed countries by multinational corporations. * It comprises laws that are legally enforced by the United Nations.
It serves as a guideline for transparency and public accountability.
2. Which of the following statements accurately explains the basic categories of ethics?
Personal integrity, a category of ethics, looks at ethics from an external rather than an internal viewpoint.
7. The creation of the ________ was an attempt to reestablish the perceived independence of auditing companies after the corporate accounti
Public Company Accounting Oversight Board
QUIZ 6 1. The creation of the ________ was an attempt to reestablish the perceived independence of auditing companies after the corporate accounting scandals of the early 2000s. Answers: Securities and Exchange Commission Public Company Accounting Oversight Board Federal Labor Relations Authority Consumer Financial Protection Bureau
Public Company Accounting Oversight Board
2. The "Office of the Whistleblower" was created by the ________.
SEC
14. The ________ of 2002 introduced greater accountability for chief executive officers and boards of directors in signing off on the financial performance records of the organizations they represent.
Sarbanes-Oxley Act
10. The "Office of the Whistleblower" was created by the ________.
Securities and Exchange Commission
9. Which of the following legislations could fine companies for failing to disclose bribes and other forms of payments to foreign officials before the Foreign Corrupt Practices Act was introduced? Answers: **the U.S. Federal Sentencing Guidelines for Organizations** the Ethics Resource Center the Dodd-Frank Wall Street Reform and Consumer Protection Act the Securities and Exchange Commission
The Securities and Exchange Commission??
4. Which of the following is true of the changes that telecommuting has introduced into the work environment? Which of the following is true of the changes that telecommuting has introduced into the work environment? Answers: Employees are unable to take care of personal needs during work hours. The distinction between personal life and work life is clearly perceived. Employers find it easy to tabulate the time employees spend working. The availability of employees is being defined by their accessibility.
The availability of employees is being defined by their accessibility.
7. Which of the following statements is true of less-developed countries and multinational corporations in the context of globalization? Answers: The long-term economic viability of less-developed countries is threatened by the activities of multinational corporations. Multinational corporations tend not to see less-developed countries as potential consumer markets. Multinational corporations prefer not to invest their time and effort in less-developed countries. The labor power of less-developed countries does not attract the attention of multinational corporations.
The long-term economic viability of less-developed countries is threatened by the activities of multinational corporations.
18. Which of the following statements is true of keystroke loggers? Answers: They can videotape employees in public areas. They can analyze and archive calls made on personal phones. They can track the movement of employees in the workplace. They can record typed-in information even if it is deleted.
They can record typed-in information even if it is deleted.
6. Why were the guidelines offered by Richard DeGeorge for organizations doing business in other countries criticized? Answers: They did not advocate working with or respecting local customs of other countries. They overlooked issues related to the quality of goods produced. They represented the utilitarianism belief that the ends justify the means in all circumstances. They advocate doing the greatest good for the greatest number of people.
They overlooked issues related to the quality of goods produced.
13. The ________ first addressed the issue of retaliation against federal employees who bring accusations of unethical behavior.
Whistleblower Protection Act of 1989
11. Which of the following factors is likely to make companies revise and rewrite their codes of ethics from time to time? Answers: * a continuous change in the technology used by the company * a decline in the employees' productivity due to strict codes of ethics * an increase in costs due to certain codes of ethics being maintained * an increase in conflicts within the organization due to the implementation of the codes of ethics
a continuous change in the technology used by the company
18. The ________ keeps track of a company's financial transactions by documenting money coming in and money going out and balances the accounts at the end of the period. Answers: financial transactions function accounting function compliance function auditing function
accounting function
13. Which of the following actions is most likely to lead to the promotion of an organization's commitment to ethical behavior? Answers: * limiting the participation in Ethics Day celebrations solely to the employees * allowing employees to visit client sites to talk about the organization's code of ethics * sharing the organization's success stories exclusively with its employees * responding to errors related to transactions after the clients approach the organization
allowing employees to visit client sites to talk about the organization's code of ethics
11. The belief that an activity is safe because it will never be found out is a common rationalization behind an employee's unethical conduct. To deter unethical behavior based on this rationalization, a manager should ________.
announce the misconduct publicly
6. The certification of an organization's financial statements or books, by an impartial third-party professional, as being accurate is offered by the ________.
auditing function
3. Under the Foreign Corrupt Practices Act, payments made with the knowledge that any portion of the payment is to be passed along to a foreign official for a prohibited purpose under the Foreign Corrupt Practices Act are known as ________.
bribe
8. Fred, a manager in a multinational corporation, is a supporter of Milton Friedman's instrumental contract. Fred believes that corporations Answers: carry no moral obligation to the countries in which they operate. should actively work to protect the environment of the countries in which they operate. must run welfare programs for the people of the countries in which they operate. need to cease working in less-developed countries.
carry no moral obligation to the countries in which they operate.
8. A company's ________ should clarify its cornerstones—its mission, values, and principles—to its managers, employees, and stakeholders.
code of ethics
4. ________ is defined as a situation where one relationship or obligation places an individual or firm in direct dispute with an existing relationship or obligation.
conflict of interest
14. Which of the following is most likely to be the next stage in making ethical behavior sustainable for an organization after it promotes its commitment to ethical behavior? Answers: * continuously monitoring the ethical behavior of its employees as the company grows * hiring an ethics officer * supporting the code of ethics with extensive training for every member of the organization * celebrating and rewarding the ethical behavior demonstrated by its employees
continuously monitoring the ethical behavior of its employees as the company grows
16. Which of the following actions does the Computer Ethics Institute consider unethical? Answers: copying proprietary software without paying for it logging into one's company's intranet and extranet enabling cookies on one's own computer clearing the cache of one's own computer
copying proprietary software without paying for it
8. Happy Times (HT) is an alcohol manufacturing brand that deals with several types of alcoholic beverages. HT uses social media for promoting the message of responsible drinking. It sponsors the FreeTaxi program for customers with HT membership on Christmas and New Year's Eve. It has also initiated several community welfare projects where a percentage of the profits go to the Hunger Relief Fund for Children. In the given scenario, which of the following is best illustrated? corporate citizenship ethical ambiguity universal ethics emotional contagion
corporate citizenship
9. The ________ represents a public demonstration of an organization's commitment to ethical business practices.
corporate governance committee
8. Corporations that experiment with corporate social responsibility (CSR) initiatives run the risk of creating adverse results as Answers: the organization sees the benefit of CSR but does not feel the need to develop the concept. customers feel ignored since the corporation focuses solely on helping the community. employees feel that they are working for an insincere uncaring organization the public sector is considered the best or most appropriate venue for addressing a growing list of social problems.
employees feel that they are working for an insincere uncaring organization
11. Prior to 2002, legal protection for whistle-blowers existed only through legislation that
encouraged the moral behavior of employees who felt compelled to speak out.
10. The ________ approach for resolving an ethical dilemma considers which decision would provide the greatest good for the greatest number of people.
ends-based
9. Which of the following is the first stage in making ethical behavior sustainable for a company? Answers: * establishing a code of ethics for the company * promoting the company's commitment to ethical behavior * monitoring ethical behavior as the company grows * hiring an ethics officer for the company
establishing a code of ethics for the company
4. Which of the following philosophical positions is adopted by multinational corporations when working in countries whose laws and regulations are less restrictive than the one in their own country? Answers: ethical consequentialism aesthetic relativismmotive consequentialism ethical relativism
ethical relativism
2. Jordan, a software engineer, is responsible for maintaining the private piece of his company's internet network that is accessible to clients by means of a unique password. This piece of the company's network is known as the ________.
extranet
Quiz 8 1. The term ________ refers to a private piece of a company's Internet network that is made available to customers and/or vendor partners on the basis of secured access by unique password.
extranet
8. Brenner Inc. (BI) is formulating its ethics policy with the goal of increasing employee loyalty and improving customer satisfaction. In order to meet these goals, BI should ensure that its policy Answers * excludes low-performing departments from sharing their experiences. * excludes awarding trainees in order to avoid upsetting the senior members of the organization. * includes only the internal stakeholders. * includes threats of punishments balanced with rewards.
includes threats of punishments balanced with rewards.
8. In external whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of
law enforcement agencies and/or the media
15. Which of the following is a disadvantage of technological advances in a workplace? Answers: reduced employee accessibility limited access to customers limited employee mobility loss of privacy
loss of privacy
3. A fact about the effect of globalization is that multinational corporations Answers: have limited access to the labor force or natural resources of less-developed countries. often exploit the natural resources of developed countries without facing any consequences. have fewer ways in which they can reduce their production costs or increase their sales. often take advantage of the unrestrictive legal environments of less-developed countries.
often take advantage of the unrestrictive legal environments of less-developed countries.
4. Which of the following is a routine governmental action? Answers: providing police protection for the transit of goods across a country providing legal immunity for the employees of foreign companies allocating funds for companies to make facilitation payments overseas accepting payment from a foreign company in return for an exclusive contract
providing police protection for the transit of goods across a country
12. A ________ is a lawsuit brought on behalf of the federal government by a whistle-blower under the False Claims Act of 1863.
qui tam lawsuit
6. Walter Salmon's checklist to assess the quality of the board recommends Answers: that there be three or more outside directors for every insider. the consideration of a single bottom line of profitability. that the roles of employees in senior positions must be increased. following an exclusive rather than an inclusive approach.
that there be three or more outside directors for every insider
QUIZ 9 1. Which of the following bodies has approached the issue of standardizing global ethical conduct by promoting behavior guidelines that multinational corporations can publicly support? Answers: the Organization for Economic Growth and Standardization the Bureau of Economic Analysis the Government Accountability Office the Organization for Economic Cooperation and Development
the Organization for Economic Cooperation and Development
5. Which of the following did the government formulate to penalize corporate wrongdoing? Answers: the Taft-Harley Act the Gramm-Leach-Bliley Act the Glass-Steagall Act the Sarbanes-Oxley Act
the Sarbanes-Oxley Act
9. By introducing ________, Congress took an integrated approach to the matter of whistle-blowing by both prohibiting retaliation against whistle-blowers and encouraging the act of whistle-blowing itself.
the Sarbanes-Oxley Act of 2002
6. Which of the following key U.S. legislations is an attempt to discourage, if not prevent, illegal conduct within organizations? Answers: the U.S. Federal Standards for Commercial Services the U.S. Federal Procurement Regulations System the U.S. Federal International Customary Law the U.S. Federal Sentencing Guidelines for Organizations
the U.S. Federal Sentencing Guidelines for Organizations
7. The UN Global Compact focuses on Answers: * the fluctuation of currency standards. * the profitability of small businesses. * the inheritance rights of women. * the welfare of workers around the world.
the welfare of workers around the world.
12. _______ in business means that stakeholders have visibility deep into the processes and information of an organization.
transparency
10. An employee who discovers corporate misconduct and chooses to bring it to the attention of others is referred to as a(n) ________.
whistle-blower
