Ethics exam 3

ethical disasters

Are the discovery of large-scale unethical activity and 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

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

code of ethics

Comprehensive and consists of general statements, sometimes altruistic or inspirational, that serve as principles and as the basis for rules of conduct

compliance orientation

Creates order by requiring employees to identify with and commit to specific required conduct

Which of the following is NOT an aspect of the Open Compliance Ethics Group (OCEG) framework?

Customers

Which of the following is NOT a responsibility of an ethics officer?

Developing and implementing marketing strategy

Companies that experience ethical misconduct disasters almost never recover from them.

False

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

Financial Reporting

codes of conduct

Formal statements that describe what an organization expects of its employees

Which of the following reporting methods is a point of contact within an organization where employees and managers can voice their concerns and receive assistance from the most appropriate person in the firm to handle the situation?

Help Desk

integrity

Implies a balanced organization that not only makes ethical financial decisions but also is ethical in the more subjective aspects of its corporate culture

formal controls

Include input controls such as proper selection of employees, effective ethics training, and strong structural systems (including communication systems)

process controls

Include management's commitment to the ethics program and the methods or system for ethics evaluation

output controls

Involve comparing standards with actual behavior

Which of the following best describes an ethics audit?

It is a major component of an ethics program

Codes of conduct and codes of ethics

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

The strategic importance of ethics auditing includes all of the following EXCEPT

avoidance of fines in case of an infractions

What is the first step in conducting an ethics audit?

b. Securing the commitment of the firm's top management and board of directors.

Which of the following items do NOT have a strong impact on whether an ethics program is successful?

b. The level of employee compensation

Both ethics auditing and financial auditing employ:

b. objective reporting.

The Better Business Bureau's International Torch Award for Marketplace Ethics may be useful to help what type of companies with their ethics audit?

c. Companies with fewer resources

Which of the following is a means of measuring process variations that cause defects considered unacceptable deviations from the mean or target?

c. Six sigma

Minimum requirements for ethics and compliance programs

1. Standards and procedures, such as codes of ethics, that are reasonably capable of detecting and preventing misconduct 2.High-level personnel who are responsible for an ethics and compliance program 3.No substantial discretionary authority given to individuals with a propensity for misconduct 4.Standards and procedures communicated effectively via ethics training programs 5.Systems to monitor, audit, and report misconduct 6.Consistent enforcement of standards, codes, and punishment 7.Continuous improvement of the ethics and compliance program

Key Goals of Successful Ethics Training Programs

1.Identify key risk areas employees will face. 2.Provide experience in dealing with hypothetical or disguised ethical issues within the industry through mini-cases, online challenges, DVDs, or other experiential learning opportunities. 3.Let employees know wrongdoing will never be supported in the organization and employee evaluations will take their conduct in this area into consideration 4.Let employees know they are individually accountable for their behavior. 5.Align employee conduct with organizational reputation and branding. 6.Provide ongoing feedback to employees about how they are handling ethical issues. 7.Allow a mechanism for employees to voice their concern that is anonymous, but provides answers to key questions (24-hour hotlines). 8.Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma they do not know how to resolve.

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

A code of ethics

Balanced Scorecard

A management system that focuses on all the elements that contribute to organizational performance and success, including financial, customer, market, and internal processes

triple bottom line

A perspective that takes into account the social, environmental, and financial impacts of decisions made within an organization

Global Reporting Initiative

A prominent framework that companies have adopted to report their social and sustainability progress

ethics audit

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

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

Organizations can influence ethical behavior by hiring people with high ethical standards and developing an ethical corporate culture.

ethics officers

Responsible for managing their organizations' ethics and legal compliance programs

What does a values orientation strive to develop?

Shared values

values orientation

Strives to develop shared values

shared values

The glue of successful management as well as of business ethics programs

Programs designed to foster ethical behavior are more controversial today because unethical and illegal business conduct continues to occur, even in organizations that have implemented the programs.

True

Software is becoming popular in helping to prevent misconduct because it provides reports of employee concerns, complaints, or observations of misconduct that can then be tracked and managed.

True

Which of the following scenarios is unethical but not illegal?

While having a latte at Starbucks, you run into a friend who works as a salesperson at a competing firm. Your friend winds up chatting about how there is going to be a change in management at her firm. When you get back to your office, you tell your supervisor what you heard.

When should ethics audits and financial audits be conducted?

d. Regularly

What is one of the greatest organizational benefits of conducting an ethics audit?

e. Improved relationships with stakeholders who desire transparency

Which of the following is not part of the framework for an ethics audit?

e. Verify the results yourself or by a co-worker

All of the following are responsibilities of ethics officers EXCEPT:

e. making ethical decisions on behalf of managers and the board of directors so that they do not have to think about ethical issues

Fostering ethical decisions within an organization requires eliminating unethical persons and

improving the firm's ethical standards.

Keys to successful ethics training include all but:

leaving clear opportunities for employees to engage in unethical behaviors.

All of the following are responsibilities of an ethics officer EXCEPT:

making government laws related to business ethics

An ethics audit is a:

systematic evaluation of an organization's ethics program and/or performance to determine its effectiveness

A common mistake that U.S.-based multinational firms make when developing an ethics and compliance program for international offices is:

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

Employee turnover is a useful indicator for assessing employee issues.

true