Business Ethics Quiz 4
1) Attempt to return the gratuity to the customer.
You are a manager of a small lumber supply company. One of your employees accepts a gratuity from a customer without being aware that it violates the company code of conduct, but after a review by managerial staff and lawyers, it is determined to have violated the code. What is the first step you should take? 1) Attempt to return the gratuity to the customer. 2) Fire the employee. 3) Ask for confidentiality from the customer. 4) Revise the code of conduct.
2) 27 percent
A 2016 Gallup poll showed that how many employees believe in their company's stated values? 1) 11 percent 2) 27 percent 3) 42 percent 4) 68 percent
1) greater tolerance for diversity
Research has shown a positive correlation between organizations with a code of ethics and what? 1) greater tolerance for diversity 2) faster turnover 3) higher NASDAQ rating 4) greater revenue
4) honesty
The word "integrity" is synonymous with which of the four core values common to all three Abrahamic religions of the world? 1) justice 2) mutual respect 3) stewardship 4) honesty
1) code of conduct
After many years of successful operation, a financial services firm uncovers a specific fraud in which employees were accepting personal gifts from clients for preferred treatment. Which of the following is most likely going to need revision as a result? 1) code of conduct 2) code of ethics 3) vision statement 4) mission statement
4) He should solicit employee input into the initial needs of the code of ethics.
Ali started an accounting firm a year ago and has just hired his tenth employee. He decides the business needs a code of ethics. How should he begin the process of creating one? 1) He should have a legal team or lawyer draw up the basic needs of a code of ethics. 2) He should write the initial draft and then get his CFO or vice president's input. 3) He should make a template based on another organizations' code of ethics. 4) He should solicit employee input into the initial needs of the code of ethics.
1) human dignity and collectively seeking the common good
What are the two broad core ethical ideals of the Caux Principles for Responsible Business? 1) human dignity and collectively seeking the common good 2) human dignity and the worldwide implementation of just laws 3) freedom of action and freedom of information 4) collectively seeking the common good and worldwide implementation of just laws
1) There are sometimes legal requirements with respect to having a code of ethics.
What can be surmised from the existence of the Sarbanes-Oxley Act? 1) There are sometimes legal requirements with respect to having a code of ethics. 2) Companies without codes of ethics are bound to violate the law. 3) Federal law requires that every company have a written code of ethics. 4) The federal government has dictated the content of codes of ethics for many companies.
1) future aspirations for the organization
What does an organization's vision statement have that its mission statement does not? 1) future aspirations for the organization 2) a description of what the organization does 3) a description of the organization's target/customers 4) a mention of ethics
3) Title VII violations
The Society for Human Resource Management lists which of the following as inappropriate use of company email? 1) cross-department messages 2) expressing discontent of working conditions 3) Title VII violations 4) email from a work account to the employee's personal email account
4) code of conduct
"Employees will not accept business gratuities, meals, or gifts in excess of $15 from any client, customer, or supplier." This statement would most likely appear in a ______. 1) values statement 2) mission statement 3) code of ethics 4) code of conduct
2) vision statement
"We will earn our customers' enthusiasm through continuous improvement driven by the integrity teamwork, and innovation of GM people." This language from General Motors is part of a ______. 1) mission statement 2) vision statement 3) code of conduct 4) code of ethics
4) failure to communicate the code to employees
Why has there likely been so little evidence of a correlation between the presence of a code of ethics and better ethical performance? 1) too many remaining opportunities for unethical behavior 2) a culture of corruption in U.S. business 3) too much legal language in codes 4) failure to communicate the code to employees
4) change to adopt international standards for business
A business in a developing nation that has operated locally for many years has recently grown to a level that it is now making international deals. What is to be expected of that business? 1) change to adopt the commons standards of the three Abrahamic faiths 2) mimic the operational standards of much bigger corporations 3) remain true to its informal ways for doing business even in the international marketplace 4) change to adopt international standards for business
1) lawyers
A code of conduct requires input from which of the following that is not required for a code of ethics? 1) lawyers 2) employees 3) upper management 4) the president/CEO
4) Have a publicly available code of conduct for all employees.
A firm wants to be publicly listed on the NASDAQ. What is required for this from an ethics standpoint? 1) Have a code of ethics for upper management. 2) Have a publicly available code of ethics for all employees and management. 3) Publicly list the incidences and outcomes of ethics abuse lawsuits. 4) Have a publicly available code of conduct for all employees.
1) legal counsel
During the "code review" step in creating a code of ethics, the draft code should go to which of the following (among others) for review? 1) legal counsel 2) employees 3) industry regulators 4) human resources consultants
2) In a bribe, the object of value unduly influences a business decision.
How do bribes differ from business gratuities? 1) In a bribe, the exchange is preceded by an articulation of a quid pro quo arrangement. 2) In a bribe, the object of value unduly influences a business decision. 3) In a bribe, the object of value has a high monetary value. 4) In a bribe, the object of value is material, not a hospitality.
1) deontological, utilitarian, and ethics of care
Research has shown that what three value categories show up in most codes of ethics? 1) deontological, utilitarian, and ethics of care 2) obeying the law, ethics of care, and fair use 3) kind/caring, socialist, and deontological 4) social good, utilitarian, and fair treatment
2) Since the 1960s, vastly more businesses have adopted them to be more in line with public and industry expectations.
How has the adoption of codes of ethics by businesses changed over time? 1) Survival of the fittest has led fewer businesses to abide by their own codes of ethics. 2) Since the 1960s, vastly more businesses have adopted them to be more in line with public and industry expectations. 3) The rate of adoption by businesses has remained roughly the same since the 1960s. 4) The superficial adoption of codes of ethics has increased, while moral expectations of business has decreased.
4) total right to monitor
How should a code of conduct characterize a company's right to monitor employee emails sent on company computers? 1) no right to monitor 2) limited to emergency or criminal situations 3) right to monitor if it does not violate privacy 4) total right to monitor
2) It deals with specific situations.
In which of the following ways does a code of conduct differ from a code of ethics? 1) It is explicitly written. 2) It deals with specific situations. 3) It is broader in nature. 4) It includes a values statement.
1) It allows everyone to hear examples and decide on common themes.
What is the purpose of using a round robin format in the work of the code-writing team? 1) It allows everyone to hear examples and decide on common themes. 2) It allows management to hear of unethical behaviors in their company. 3) It helps employees come clean about their worst impulses. 4) It brings an international and broad cultural perspective to the resulting code of ethics.
4) fair dealing
Which of the following NYSE code of conduct recommendations specifically deals with customer relations? 1) compliance with laws, rules, and regulations 2) conflict of interest 3) corporate opportunities 4) fair dealing
4) profits and shareholder value
As described in the text, William George, the former chairman and CEO of Medtronic, has outlined a connection between his company's mission and values and what? 1) a strong vision statement 2) employee retention 3) ethical organizational culture 4) profits and shareholder value
2) Offer clear examples of when it is acceptable to provide or accept a gratuity.
Avani is nervous about the nature of how her employees use business gratuities. If her company is crafting a code of conduct, how should business gratuities be handled in that code? 1) Make it clear that it is never acceptable to provide or accept a gratuity. 2) Offer clear examples of when it is acceptable to provide or accept a gratuity. 3) Make it clear that exchange of gratuities should remain confidential. 4) Make it clear that gratuities and bribes are synonymous.
3) It should come after an initial draft of the code has been created to protect employee contribution.
How does distribution of other organizations' codes of ethics relate to the code-writing process? 1) Distribution of others' codes of ethics should come during the development of common themes. 2) It should come at the beginning of the process to provide a good benchmark. 3) It should come after an initial draft of the code has been created to protect employee contribution. 4) Codes of other organizations should never be distributed because plagiarism is a likely result.
1) It should be less subject to fluctuation with environmental changes.
In which of the following ways should a company's code of ethics differ from its mission statement or vision statement? 1) It should be less subject to fluctuation with environmental changes. 2) It should have more input from management. 3) It should be less aspirational and more in line with present circumstances. 4) It should carry a greater reflection of industry expectations.
2) the missed opportunity to solicit employee input
Karen has decided to develop a code of ethics for her law firm by starting with the text of the code of ethics of a highly respected law firm of roughly the same size that operates in her state. What is the biggest problem with this action? 1) the threat of plagiarism 2) the missed opportunity to solicit employee input 3) the likelihood that her managers will ignore the new code 4) the likelihood that the other firm's code will not apply to issues relevant to her firm
3) her industry's code of ethics
Shudra is a new employee who is being pressured by her manager to do something unethical that directly violates the company's code of ethics. On what other moral support level can she rely? 1) her manager's fear of being caught 2) her coworkers' judgment about what to do 3) her industry's code of ethics 4) her manager's supervisor
3) It forced transparency about whether or not companies had a code of ethics or conduct.
What effect did the Sarbanes-Oxley Act have on codes of ethics and conduct in publicly traded companies? 1) It forced companies to have or refine a code of conduct. 2) It forced companies to have or refine a code of ethics. 3) It forced transparency about whether or not companies had a code of ethics or conduct. 4) It forced transparency into the nature of a company's ethics training system.
1) Help legitimize dialogue about what constitutes ethical behavior.
What effect should a code of ethics have on dialogue within an organization? 1) Help legitimize dialogue about what constitutes ethical behavior. 2) Restrict dialogue to support for ethical decision making. 3) Make employees afraid to voice concerns about their own ethical or unethical impulses. 4) Help bring legal language into conversations about ethical behavior.
4) theft
Which of the following falls under the NYSE recommended code of conduct component "Protection and Proper Use of Assets"? 1) unfair treatment of customers 2) use of corporate information for personal gain 3) employee retaliation 4) theft
4) They have the most impact on the behavior of already morally strong employees.
Which of the following is TRUE of the impact of codes of ethics on employees? 1) Employees are far more worried about their legal implications than ethical implications. 2) They are essentially useless without a high-integrity work culture. 3) They have the most impact on the behavior of employees with low moral identity. 4) They have the most impact on the behavior of already morally strong employees.
4) Employees prefer to be a part of high-integrity organizations.
Which of the following is TRUE with respect to employees and ethical culture in organizations? 1) Research has shown a net outflow of employees from organizations with a strong ethical culture. 2) Employees prefer not to be a part of high-integrity organizations because of the increased scrutiny involved. 3) Employees mostly show indifference to the ethical culture of their organization. 4) Employees prefer to be a part of high-integrity organizations.
2) upholding justice
Which of the following is held in common among the Christian, Muslim, and Jewish religions according to the 1994 interfaith declaration? 1) respecting shareholder needs 2) upholding justice 3) the importance of business as a driver of nations 4) celebrating individual achievement
1) "Describe a situation when you behaved very ethical toward a customer."
Which of the following questions is best asked of employees during the step "gather *a list of ethical behaviors from participants" in the process of making a code of ethics? 1) "Describe a situation when you behaved very ethical toward a customer." 2) "Describe a situation when you observed someone in the organization behave unethically toward a customer." 3) "Describe a situation when you behaved unethically toward a customer." 4) "Tell us what you think constitutes an ethical behavior."
4) They can be given from suppliers to customers.
Which of the following statements about business gratuities is accurate? 1) Rules involving business gratuities are rarely included in codes of conduct. 2) They are essentially the same thing as bribes. 3) They can only be received by customers from suppliers. 4) They can be given from suppliers to customers.
3) a manager implementing sanctions against a department that violated the company's code of ethics
Which of the following would be an example of "stewardship" as described by the 1994 interfaith declaration? 1) a coworker admitting to an unethical interaction with a customer 2) a CEO approving purchase of a technology that would help reduce pollution 3) a manager implementing sanctions against a department that violated the company's code of ethics 4) a customer reporting a corporate seller to the Better Business Bureau
2) Address some ethical issues specifically related to your company and industry.
You are a member of upper management who is leading an orientation for new hires, and during your first meeting you intend to focus on business ethics. In what way should you start your meeting with the new employees? 1) Explain how the company will not tolerate failures in moral behavior. 2) Address some ethical issues specifically related to your company and industry. 3) Pass out a code of conduct and let employees have some time to read it. 4) Tell the employees not to worry about public perceptions of your industry.