Business Ethics ch 6

Which type of employee is most likely to report ethical issues in the workplace?

executives

By law, the financial records of publicly held companies are required to be

audited by a certified professional accounting firm.

A questionable or unjust payment to facilitate a business transaction is called

bribery.

Integrity-based ethics programs

combine concern for the law with an emphasis on employee responsibility.

An accounting auditor who softens a report in return for receiving nonaudit business is committing what?

conflict of interest

What was the primary ethical challenge between Vale Mining and their auditor, TUV SUD, according to the case "The Vale Mining Company Dam Collapse"?

conflict of interest

The blend of ideas, customs, company values, and shared meanings within a firm are referred to as its

corporate culture.

A company that strives for efficiency is demonstrating which ethical criterion?

egoism

Using Figure 6.1, how would you classify the ethical climate of Vale Mining Company, as described in the case "The Vale Mining Company Dam Collapse"?

egoism

The unspoken understanding among employees of what is and is not acceptable behavior is called

ethical climate

One of the most ethical safeguards a firm can leverage, sometimes called the "tone at the top," is

ethical leadership.

If a manager approaches ethics with benevolence in mind, he or she would stress what?

friendly relations with coworkers

Research has shown that the primary type of ethics policy in the United States is

instrumental.

Which type of organization typically conducts regular, ongoing ethics training?

larger and more mature firms

Ethical challenges for information technology employees include

Both "invasions of privacy" and "copyright protections" are correct.

What is the current trend in measuring the effectiveness of corporate ethics and compliance programs?

Most firms have turned to company-wide risk assessments.

Building ethical safeguards into a company's everyday routines is called

institutionalizing ethics.

When are written ethics policies most effective?

when they are frequently and widely distributed to all stakeholders

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is

operating under the compliance-based approach.

The Principles and Standards of Ethical Supply Chain Management Conduct includes the principle

protect confidentiality.

A member of the Chartered Financial Analyst Institute (CFA) must

put the interests of clients above their own personal interests. act with integrity, competence, diligence, respect and in an ethical manner. maintain and improve their professional competence. Answer: All of these choices are correct.

A giant step is taken toward improving ethical performance throughout the company when:

senior-level managers signal to employees that they believe ethics is a high priority.

Which U.S. act prohibits executives of U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates?

the U.S. Foreign Corrupt Practices Act

Which of these components are not considered during a risk-assessment audit to gauge the effectiveness of a firm's ethics programs?

the financial bottom line

The critical component in installing an effective ethics program is

the integration of various ethics safeguards into a comprehensive program.

Why are ethics policies or codes important to business managers?

to identify and analyze the nature of an ethical problem

What is the purpose of an ethics reporting "helpline"?

to report allegations of unethical conduct to provide general company information to interpret what is proper ethical behavior Answer: All of these choices are correct