Ethics Final
1. This philosophy evaluates ethicalness subjectively on the basis of individual and group experiences _______. a. egoism b. relativism c. deontology d. teleology e. utilitarianism
b
1. Formal controls _____. a. creates a stakeholder orientation b. cannot significantly affect ethical decision making c. is not a significant influence on compliance systems d. includes input controls such as proper selection of employees, effective ethics training, and strong structural systems (including communication systems) e. is not a significant influence on ethical behavior
d
8. This famous statement, "Act as if the maxim of the action were to become by will a universal law of nature," is called _______. a. Kant's Categorical Imperative b. Marxism c. Mao's Categorical Imperative d. Leninism e. Friedman's Categorical Imperative
a
14. Employee turnover is a useful indicator for assessing employee issues. a. True b. False
a
3. Ethical leaders need both knowledge and ___________ to make the right decisions. a. passion b. culture c. courage d. vision e. experience
e
10. Which of the following is NOT a characteristic of a centralized organization? a. few and informal rules b. many formal rules c. low problem recognition d. low flexibility e. clear-cut division of labor
a
4. An integrity-based approach _____. a. usually have chief officers, human resource managers, and board member committees involved with the ethics and compliance program b. usually has a leader allows others to take responsibility for the firm's ethical culture c. does not empower employees but helps them integrate ethical values and principles established by the firm d. helps very little concerning where questionable practices are occurring and where possible new ethical issues are arising e. views ethics as a deterrent to implementing core values
a
7. How members of a society respond to uncertainty or ambiguity is referred to as _____. a. uncertainty avoidance b. Hofstede's cultural dimension c. cultural relativism d. self-reference criterion e. individualism and or collectivism
a
1. What did the Sarbanes-Oxley Act put more pressure on ethics officers to monitor? a. export restrictions b. environmental issues c. financial reporting d. human resources e. discrimination
c
11. With regards to leadership styles that influence ethical decisions, the challenge for leaders is _______________________, which is essential if organizational leaders are to steer their companies toward success. a. to motivate organizational members b. to communicate goals effectively c. to gain trust and commitment of organizational members d. to increase productivity e. to make profits
c
12. Global warming _____. a. decreases the volume of water in the oceans b. is a myth that has been debunked by most of the scientific community c. is associated with the ozone layer d. has been associated with spikes in some natural disasters e. increases the salinity within the oceans
c
1. ___________ includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment. a. Kyoto protocol b. Environmental protection c. Ethical decision making d. Sustainability e. Social responsibility
d
9. What do values orientation strives to develop? a. compliance b. codes of ethics c. moral philosophies d. shared values e. personal character
d
10. ___________ involves misleading a consumer into thinking that a product or service is more environmentally friendly than it really is. It can range from making environmental claims that are required by law and are therefore irrelevant (CFC-free) to puffery, or exaggerating environmental claims, to fraud. a. Green marketing b. Sustainability c. Genetic modification d. Greenwashing e. The triple-bottom line approach
d
1. Because genetically modified seeds are _______, farmers cannot keep any of the seed themselves but must purchase seeds each year from companies such as Monsanto. a. patented b. perishable c. destructive d. non-organic e. uncollectable
a
7. Which of the following is NOT a responsibility of an ethics officer? a. establishing audit and control systems to determine the effectiveness of the program b. coordinating the ethical compliance program with top management, the board of directors, and senior management c. developing, revising, and disseminating a code of ethics d. developing effective communication of ethical standards e. developing and implementing marketing strategy
e
2. When managers overlook or stifle the importance of core values in their business decisions it is referred to in the chapter as _____. a. cross cultural dysfunction b. unethical conflict c. positive myopia d. positive dysfunction e. normative myopia
e
5. Which of the following provides legally binding ground rules for international commerce and trade policy? a. World Trade Organization b. Omnibus Trade Commission c. Council on Economic Priorities d. Federal Trade Commission e. Securities and Exchange Commission
a
11. Which is not a benefit of a firm "going green"? a. Firms can focus more upon their own efforts as a distinct unit rather than on the entire supply chain b. Reduce costs by improving risk management and stakeholder relationships, reducing the amount of materials and energy used, and reducing capital and labor costs c. Help firms to differentiate their products from competitors d. Increased goodwill from stakeholders and even money savings from being more efficient and less wasteful e. Increase revenue through better access to certain markets, differentiation of products, and the sale of pollution-control technology
a
13. _____________ is the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse. a. Recycling b. Waste management c. Greenwashing d. Green marketing e. Kyoto protocol
a
14. 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. a. True b. False
a
15. 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. a. True b. False
a
4. All of the following are responsibilities of an ethics officer EXCEPT _____. a. making government laws related to business ethics b. assessing the needs and risks that an organization-wide ethics program must address c. developing and distributing a code of conduct or code of ethics d. conducting training programs for employees e. monitoring and auditing ethical conduct
a
8. To be effective, ethics training must start with a foundation that includes _____. a. a code of ethics b. a regulatory lobbyist c. a financial audit d. a diversity agenda e. a total quality management program
a
11. The FSGO utilizes a "carrot and stick" philosophy to encourage organizational compliance. What is the ultimate "stick" the FSGO uses? a. a written reprimand b. being fined or put on probation c. being forced to disband as an organization d. nothing happens e. a stern warning
b
12. Which of the following scenarios is unethical but not illegal? a. You receive a loan from your parents to make the down payment on your first home, but when describing the source of the down payment on the mortgage application, you characterize it as a gift. b. 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. c. You are fired from your company, but before leaving to take a position with another company, you take a confidential list of client names and telephone numbers that you compiled for your former employer. d. 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. You agree to do so. e. 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.
b
14. Alternative energy sources have significantly increased the carbon footprint of communities, cities, and even countries. a. True b. False
b
15. Environmental advocates ensure that shoppers are adequately informed about the environmental impact of the products they buy. a. True b. False
b
3. Acid rain, waste management, urban sprawl, and deforestation are all environmental issues related to land. a. True b. False
b
Several headhunters have been calling you about leaving. The sums they have been talking about are 50% above the package you're getting now. As you gingerly investigate these offers, you find that most of the offers are from new competitors in the industry who want you to use your knowledge and international contacts to increase their market share. They also know that you've been working closely on a new product line that will drastically change the market share of many companies in the industry. As one CEO said to you, "Let's face it, when it comes to the international arena it's more about the person who develops the relationship than the company. Also, with your knowledge about this new innovative line, we could jump three to five places in sales. And don't worry about your contract clause about new products, we'll take care that you're protected when you join us. We know about the rumors that you've outlived your usefulness and we believe they're crazy". Do you:
Don't take the job.
14. The concept of a moral philosophy is inexact. For that reason, moral philosophies must be assessed on a continuum rather than as static entities. a. True b. False
a
1. A central problem with relativism is: a. that many feel that it only work in theory. b. that it emphasizes people's differences, not similarities. c. that few people believe that these principles are important. d. that it represents unattainable goals. e. that it is very complicated.
b
1. The MOST important attribute for effective leadership is _____. a. team meetings b. leading by example c. admitting mistakes d. handling crises calmly e. bringing out the best in others
b
14. Ethical leadership is possible without effective communication. a. True b. False
b
3. The process of assessing and reporting on a business's performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders is called a _____. a. global audit b. social audit c. process control d. formal control e. audit control
b
3. What type of justice exists if employees are being open, honest, and truthful in their communications at work? a. procedural b. interactional c. hedonistic d. distributive e. civil
b
6. Which program recognizes sustainable building practices and strategies? a. AICPA b. LEED c. ELLED d. EPA e. FCP
b
2. _______ is right or acceptable behavior in terms of the consequences for the individual. a. Relativism b. Utilitarianism c. Rule deontology d. Egoism e. Act deontology
d
11. Both ethics auditing and financial auditing employ _____. a. the same federal legislation b. similar procedures to create an ethics program c. an ethics officer d. philanthropic perspectives e. objective reporting
e
You knew that it was only a matter of time when this type of situation would arise, but you now must deal with it. One of your area sales directors (Tonya) in South Korea has complained about the way clients refuse to deal with her because she's a woman. She tells you of not being able to go to meetings with clients or be at closings because of her gender. You tell her that you'll get back to her on this. After some legal review work you find that in some cases this type of sexual discrimination has been upheld because of cultural mores. What's more, it doesn't help that she is a distant cousin of yours and you and your spouse are the Godparents of her little girl. For the last six months, Pete, a South Korean, has been the surrogate representative for all of her clients who do not wish to deal with a woman. You've thought about just replacing her, but Tonya is into her second year of a five-year nontransferable contract to South Korea, which was implemented because of her Korean husband's work. Pete has also told you and you've had it confirmed that five of the largest clients (35% of business) want Tonya out so that they can work with Pete. If you don't get rid of Tonya they have said they'll take their business to your competition. What would you do?
All options are unethical.
2. Many managers are reluctant to engage in this step of the RADAR model because they fear doing so will uncover questionable conduct that could put the firm in an unfavorable light. a. Detect b. Recover c. Recognize d. Answer e. Avoid
a
2. Of the following statements, which is correct? a. When companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping. b. When companies charge low prices for products sold in their home markets while selling the same products in foreign markets at high prices, the practice is known as dumping. c. When companies charge high prices for products sold in foreign markets while selling the same products in their home markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping. d. Dumping is still legal under many international laws, even though it substantially reduces competition. e. Dumping encourages competition and benefits workers in home countries
a
2. The concept of moral philosophies is inexact. a. True b. False
a
3. The power inequality between superiors and subordinates is referred to as _____. a. power distance dimension b. self-reference criterion c. individualism and or collectivism d. cultural relativism e. uncertainty avoidance
a
12. Which type of leader inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate? This type of leader is considered to be the most effective. a. The coercive leader b. The authoritative leader c. The coaching leader d. The pacesetting leader e. The democratic leader
b
13. Which of the following is not part of the framework for an ethics audit? a. report the findings to the audit committee and, if approved, to managers and stakeholders b. verify the results yourself or by a coworker c. secure the commitment of top managers and board of directors d. collect and analyze relevant information in each designated subject matter area e. define the scope of the audit process, including subject matter areas important to the ethics audit
b
14. Unfortunately, in today's competitive world, a company's history and unwritten rules are not part of its corporate culture. a. True b. False
b
15. Companies that experience ethical misconduct disasters almost never recover from them. a. True b. False
b
15. Laissez-faire capitalism occurs when various profit centers within corporations are unaware of the consequences of their actions on the firm as a whole. a. True b. False
b
3. Sustainability _____. a. social responsibility, and ethics are the same concept b. falls into the social responsibility domain of maximizing positive and minimizing negative impacts on stakeholders c. refers to business practices affecting competition and the environment d. always leads to what is ethical e. is the same as CSR
b
1. What is a major role of the International Monetary Fund (IMF)? a. It is the lender of last resort for individuals who cannot secure other types of loans. b. It functions as a collection agent for global banks. c. It makes short-term loans to member countries that have deficits and provides foreign currencies for its members. d. It provides mortgage loans to international home buyers. e. It determines the credit ratings of countries.
c
1. 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? a. communism b. free market economics c. socialism d. rational economics e. behavioral economics
d
12. The Better Business Bureau's International Torch Award for Marketplace Ethics may be useful to help what type of companies with their ethics audit? a. Fortune 500 companies b. companies with ethics officers c. companies accused of accounting fraud d. companies with fewer resources e. companies with more than 1,000 employees
d
8. A _____ organizational structure is best for organizations in which processes are routine and the division of labor is very well-defined. These organizations have a lot of formal rules, policies, and procedures. a. flat b. tall c. decentralized d. centralized e. hierarchical
d
5. Which of the following items do NOT have a strong impact on whether an ethics program is successful? a. the frequency and quality of communication regarding the program b. local management's success in incorporating ethics into the organization c. the content of the code of ethics d. senior management's success in incorporating ethics into the organization e. the level of employee compensation
e
5. With regards to benefits of ethical leadership, which statement is incorrect? a. Ethical leadership can lead to higher employee satisfaction and commitment. b. Ethical leaders encourage employees to act in an ethical manner in their day-to-day work environment. c. Ethical leaders communicate and monitor an organization's values, ensuring that employees are familiar with the company's purpose and beliefs. d. Ethical leaders provide cultural motivations for ethical behavior, such as reward systems for ethical conduct and support for ethical decision making. e. Working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity.
e
Production costs in the U.S. have risen and shareholders are complaining about reduced profits, earnings per share, and the dip in the stock price. Factors contributing to increased costs include union negotiation for salaries, stringent safety regulations, and environmental regulations for eliminating waste. Some of your competitors have shut down their U.S. operations and have moved manufacturing to other countries. You hire a consultant to investigate locations. She has found the following: The evening after the consultant gave you the report you came home to find 20 people at your door. Somehow they had heard of the report, its summary, and were arguing, harassing, cajoling, and threatening you to keep the plant in the U.S. One person mentioned that his group would picket headquarters about the slave wages of whatever other country you chose. As you looked around the room, you recognized your embarrassed parents and some irate aunts and cousins who work at the plant. You know you'd be putting your parents and all of your employees out of their jobs by moving operations to another country. Do you:
Move to Nigeria.
1. Leaders with a(n) _____ conflict management style desire to meet the needs of stakeholders and strongly adhere to organizational values and principles. a. collaborating b. competing c. compromising d. accommodating e. avoiding
a
14. WalMart's annual revenues are greater than the GDPs of most of the countries in the world. a. True b. False
a
12. Which of the following is a correct statement? a. Distributive justice is based on the processes and activities that produce the best outcome or results. b. A moral virtue represents an acquired disposition that is valued as a part of an individual's character. c. Procedural justice is based on an evaluation of the communication process used in the business relationship. d. According to the relativist perspective, definitions of ethical behavior are derived objectively. e. Interactional justice is based on the evaluation of outcomes or results of the business relationship.
b
13. Companies such as Coca-Cola, Hewlett-Packard, and Walmart support a globally based resource system called __________, which 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. a. global business b. socialism c. social democracy d. business for social responsibility e. global common values
d
3. The famous statement "Act as the maxim of thy action were to become by thy will a universal law of nature" is called: a. utilitarianism b. rule of deontologists c. philosophy of action d. economic imperative e. categorical imperative
e
3. Behavioral economics assumes that humans act independently on the basis of full and relevant information. a. True b. False
b
3. Paralanguage includes gestures, facial expressions, proximity, time, and dress. a. True b. False
b
Given a 12 hour average day from 9am-9pm, what percentage of your time would you spend at work and with your family over the next 3 years? Please record your percentage on the student report form (which can be found on the Student Companion Site).
50% work plus 50% family.
It's the end of the quarter and your sales staff still haven't made quota. Several sales people have some customers that want to buy large quantities of product, but the buyers want some kickbacks. Rumor has it that your superiors want someone else (someone younger) to replace you so they can get fresh ideas into the company. You not making quota just might be the excuse they need. You:
Don't pay the money for kickbacks.
Production workers have started to slow down and you're having problems with the union. Demand is outstripping supply and the home office has said you can run as much overtime as you want, just don't hire anyone new. One of your floor managers suggests splitting up the workers into work teams with built-in incentives to those who work smarter and or faster. You ok the plan and productivity has jumped 50% within three months, with many of the workers making more money and your overtime not rising as much as anticipated. The downside is that worker-related accidents have increased. Yesterday, you tour the plant floor and find that some of the most productive workers are using a unique type of software. When you investigate you find that it was "acquired" from another company by some energetic employees and is proprietary to that company.
Tell them to stop using the software.
1.The ability or authority to guide and direct others toward a goal is called _____. a. management b. leadership c. governance d. supervision e. control
b
13. A moral philosophy is a general set of values by which different people live. a. True b. False
b
6. A common mistake that U.S.-based multinational firms make when developing an ethics and compliance program for international offices is _____. a. setting realistic and measurable goals b. transferring their "American" programs to the firm's international operations c. upper management taking ownership of the program d. developing programs that fully address the needs of employees e. developing an ethics program that only consists of lectures
b
13. Keys to successful ethics training include all but _____. a. giving employees a means to address ethical issues b. helping employees identify the ethical dimensions of a business decision c. leaving clear opportunities for employees to engage in unethical behaviors d. helping employees understand the ambiguity inherent in ethical situations e. providing direction for finding managers or others who can assist in ethical conflict resolution
c
5. The Federal Sentencing Guidelines for Organizations (FSGO) _____. a. discourages companies from assessing their key risk areas and customizing a compliance program to address these risks and satisfy key effectiveness criteria b. encourages companies to assess their key risk areas and use a standard compliance program to address these risks and satisfy key effectiveness criteria c. encourages companies to assess their key risk areas and customize a compliance program to address these risks and satisfy key effectiveness criteria d. encourages but does not require the firm's board, top management, and high-level personnel exercise reasonable oversight of standards and procedures
c
6. What is one of the greatest organizational benefits of conducting an ethics audit? a. greater employee productivity and efficiency b. improved stock performance c. improved relationships with stakeholders who desire transparency d. happier suppliers e. lower prices on goods and services
c
10. Which of the following statements best describes the primary implication of "bad apple-bad barrel" theory? a. People are either ethical or unethical, depending on personal moral development, and there is little that organizations can do to influence ethical behavior. b. People with a higher expectation of punishment behave more ethically. c. Corporations often influence otherwise ethical people to behave unethically. d. Organizations can influence ethical behavior by hiring people with high ethical standards and developing an ethical corporate culture. e. People who have high cognitive moral development and are principled tend to act more ethically than others.
d
2. A ___________ business attempts to avoid dealing with environmental issues and hopes nothing bad happens or no one ever finds out about an environmental accident or abuse. a. socially responsible b. law-abiding c. bankrupt d. low-commitment e. newly established
d
2. Codes of conduct and codes of ethics _____. a. rarely become an effective component of the ethics and compliance program b. always require the creation of an anonymous hotline c. become necessary only after a company has been in legal trouble d. are formal statements that describe what an organization expects of its employees e. are designed for top executives and managers, not regular employees
d
3. If a company determines its ethical performance has been less than satisfactory, _____. a. centralizing important decisions may be a better way to attack ethical problems so lower-level managers who are familiar with the local business environment and local culture and values can make more decisions b. decentralization may reduce the opportunities lower-level managers and employees have to make unethical decisions c. decentralization may increase the opportunities higher-level managers and employees have to make unethical decisions d. centralization may reduce the opportunities lower-level managers and employees have to make unethical decisions e. executives can then focus on initiatives for improving the corporate culture and infusing more ethical values throughout the firm by rewarding positive behavior and sanctioning negative behavior.
d
9. The most controversial form of alternative energy is _____. a. wind power b. geothermal power c. hydropower d. biofuels e. nuclear power
e
5. Which is NOT a characteristic of culture? a. Culture is shared among individuals belonging to a group or society. b. Culture is formed over a relatively long period of time. c. Culture is relatively stable. d. Culture can be changed easily and quickly. e. Elements of culture are unwritten.
d
SURPRISE!!!!! Your part of the company has been sold off. The new owners are going to downsize, specialize, and become leaner, which means the old management will be replaced. After several discussions with the new owners you realize that you have two options. You could take a cut in pay (up to 20%) or you could transfer to one of their new consumable divisions and be under someone that you don't get along with. What do you do?"
Take the pay cut.
13. All of the following represent steps in the RADAR model EXCEPT _____. a. realize b. recover c. answer d. avoid e. discover
a
15. Corporate culture is exhibited through the behavioral patterns, concepts, documents such as codes of ethics, and rituals that emerge in an organization. a. True b. False
a
10. _____________ occurs when the leaders and followers share the same vision, ethical expectations, and objectives for the company. a. Successful leadership b. Leader-follower congruence c. Authentic leadership d. Interpersonal communication e. Ethical conflict
b
You've noticed that your Southeast Asian areas have been outselling everyone lately. You look at the stats and it's not just a few sales areas or sale reps, but that everyone seems to be doing extremely well. In fact, the CEO sees you at the weekly corporate dinner get-together and brings this up by saying that the company has had to put more workers on the line because of your great work. This is rare praise and you can tell the others wish they were in your place. Several weeks go by with the usual sucking up of subordinates because you've become the star. Yesterday, however, you received a call from one of the larger clients in Thailand. Their complaint is that some of their equipment has broken down and the distributor will not fix or replace it. You assure them that the products are definitely under a service warranty and that you'll quickly get to the bottom of the situation. You check the distributor lists for that area and find that the distributor is not on the authorized list. On a hunch you randomly pick 10 customers in 3 countries and ask them who they have been buying their parts from. To your surprise, 5 of the 10 in each country are buying from non-authorized dealers. It's obvious that merchandise has been gray-marketed and that it is a large problem. Because these clients have been buying from unauthorized dealers, their service warranties will not be honored. You frantically start calling the local sales managers and find that many of your key customers were sold products by these gray dealers. If you try to fire all those involved, at least 35% of your sales force would have to leave. More troublesome is what you are going to do with all those customers who will have problems but no place to get their merchandise serviced. When word gets out, everyone will look to you as the one who should have known. You:
Have someone inherit the problem.
One of your new assignments is to test new products in the marketplace. A unique innovation in pressure valves has been a promising product line. You have seen them operate in test situations perfectly. You have found a mole (someone who works for one of your competitors) in this project as well, which means that the competition also has valuable information on this new line of products. Several months go by and all indications are that a few competitors are going to come out with new pressure lines, which means whoever gets to the market first gets the lion's share of the market. Several weeks ago one of the engineers comes to you about the new line and he appears very worried. "You see, it's like this, everyone down in engineering has really been nervous about their jobs because of all the downsizing. At first these pressure valves looked like a real winner, but recently some of the field tests have been showing bad results (fissures and leaks). No one is telling upper management because if the product fails many of us will be out of jobs and it's hard to find employment around the holidays. We might be able to fix the problems, but it will take at least another six months and the manufacturing plant is already gearing up for production. I've spoken to the manufacturing head and he told me not to worry. Then I went to my boss and he said that there are always problems with new products and to just let it ride through and fix it later. I'm just worried that these kinds of problems could really injure someone. I just thought you'd like to know." As this person leaves you receive a call from Jim (Manufacturing Head) who says, "You know this kid is getting worried about nothing. I'm sure we can fix the problem within six months of production. As soon as we go down the learning curve, my staff should be able to solve it. You know we've done this before: saved engineering. Besides, many of the problems won't show up until after a year or so and then we can just replace those potentially flawed units. The problem is I'll lose 30% of my crew in layoffs if this product doesn't go into operation, and I don't want to see that happen just now. You know that you are the final word on this line and I don't have to remind you that the last person who had this assignment was let go because they held up a product like this. Maybe that's why the (CEO) gave you this assignment, to have an excuse for letting you go!!!" You:
Hold up the production.
Your new assignment is the managing and marketing of a regional corn-based product called "Taco Nachos." Marketing data shows that the product has been doing extremely well relative to the national brands, so much so that demand has started to outstrip supply. You find that much of your time is spent on the production floor or trying to secure the raw product. Last week you cut a lucrative deal for 10,000 tons of corn (one month's worth of production) which will drastically cut production costs thus raising ROI. One week into the new production, one of your managers comes to you and informs you that the buyer did not test all of the corn for aflatoxin. Aflatoxin is a fungus that has been weakly associated with increased cancer risk levels. You immediately check the storehouses and find that 10% of the product is contaminated, and that will increase by 1-2% daily. Before you shut down completely, one of your managers takes you aside and says, "Look, I hope you're not going to stop production because of this, because if you do it means we will be down for at least 3-5 days before any replacement corn can be found. Believe me, when word leaks out that we're desperate it will cost you two- three times what you bought this batch of corn for. If you want my opinion, run production until you can get the replacement product at a good price and then either sell the really tainted corn to farmers for feed or ship it to Brazil where there are no restrictions. After all, once the corn is processed the aflatoxin becomes masked in the final product, which means no one will know. There are only two other people here that know and they want to keep their jobs. Trust me, this occasionally happens and we usually take care of it in this manner." You ask, "Is this all legal, can we do it this way?" "Well, technically, we should dump all the product, but the FDA person randomly checks the product and process. She hasn't discovered the problem and won't because by the time she comes again we'll have the new corn. It's not our fault that she didn't do her job right. Besides, it would take a huge amount of product to cause any adverse effects. There might be something if someone decided to eat 10 bags in a day, but nothing has really been conclusively proven about the causal linkages. I know that you're new and want to do well at the outset. By doing it this way, everyone comes out a winner". What do you do?
Stop the production and dump the corn.
10. An ethics audit is a _____. a. systematic evaluation of an organization's ethics program and or performance to determine its effectiveness b. systematic comparison of an organization's ethics program and or performance with the Federal Sentencing Guidelines for Organizations c. systematic comparison of employee performance with the organization's ethical standards d. systematic evaluation of an organization's social responsibility program and or performance to determine its effectiveness e. systematic evaluation of an organization's marketing program and or performance to determine its effectiveness
a
12. What is the definition of corporate culture? a. 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 b. The way people speak, the types of food they eat, and other customs c. Values, norms, artifacts, and rituals d. The organizational relationships that influence the ethical decision-making process e. Nationality or citizenship
a
15. Organizational culture emerges whether or not there is effective leadership. a. True b. False
a
2. All of the following are sustainable business practices that show social commitment EXCEPT _____. a. reducing alternative energy sources b. redesigning manufacturing processes to reduce waste and pollution c. sponsoring cleanup events d. reevaluating the effects of their products and the natural environment e. recycling
a
4. A cultural audit _____. a. is an assessment of an organization's values b. is exclusively conducted internally c. is exclusively conducted externally d. is mandatory within U.S.-owned firms e. is an assessment of an organization's accounting requirements
a
4. This philosophy focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences _______. a. deontology b. relativism c. teleology d. utilitarianism e. egoism
a
7. Sustainable development _____. a. 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 b. is relatively simplistic in its implementation phase c. has the same meaning in almost all cultures d. has the same meaning in almost all countries e. has the same meaning globally
a
10. The types of moral philosophy discussed in the text include _______. a. teleology, utility, relativist perspective, virtue ethics, and justice b. teleology, deontology, relativist perspective, virtue ethics, and justice c. teleology, self-interest, relativist perspective, virtue ethics, and justice d. teleology, self-interest, relativist perspective, virtue ethics, and career growth e. teleology, utility, relativist perspective, virtue ethics, and deontology
b
11. Which of the following statements is FALSE concerning the concept of Differential Association? a. Associating with others who are unethical, combined with the opportunity to act unethically, is a major influence on ethical decision making, b. Differential Association is not described in the decision-making framework of this book. c. Differential association is the idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or belong to other intimate personal groups. d. People learn ethical or unethical behavior while interacting with others who are part of their role-sets. e. The learning process is more likely to result in unethical behavior if the individual associates primarily with persons who behave unethically.
b
15. This philosophy assumes what is moral in a given situation is not only what conventional morality requires but also what the mature person with a "good" moral character deems appropriate _______. a. justice b. virtue ethics c. deontology d. utilitarianism e. relativism
b
4. One attempt at addressing global warming was _______, created in 1997. It was an international treaty meant to curb global greenhouse gas emissions by having countries voluntarily reduce national outputs. a. Green Marketing b. The Kyoto Protocol c. The Environmental Protection Act d. The Coalition for Environmentally Responsible Economies e. Green Washing
b
5. This philosophy defines right or acceptable actions as those that maximize total utility, or the greatest good for the greatest number of people _______. a. teleology b. utilitarianism c. egoism d. deontology e. relativism
b
6. 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. stakeholder disenfranchisement b. a white-collar crime c. hedonism d. fraud e. employee abuse
b
7. Which of the following is a means of measuring process variations that cause defects considered as unacceptable deviations from the mean or target? a. Balanced Scorecard b. Six Sigma c. Global Reporting Initiative d. triple bottom line e. Accountability AA 1000
b
8. This type of leader is characterized as having superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoyment in flouting the rules. a. ethical b. psychopathic c. apathetic d. eclectic e. isomorphic
b
9. The unconscious reference to one's own cultural values, experiences, and knowledge is called _____. a. cultural relativism b. the self-reference criterion c. uncertainty avoidance d. power distance e. global common values
b
13. What type of power is being used when one person perceives that his or her goals or objectives are similar to another's and the second person attempts to influence the first to take actions allowing both to achieve their objectives? a. reward b. expert c. referent d. legitimate e. corrosive
c
2. Which of the following best describes an ethics audit? a. It is an important component of a financial audit. b. It is a requirement of implementing a values-based training program. c. It is a major component of an ethics program. d. It is part of the customer relationship management program. e. It is required by the Securities and Exchange Commission.
c
6. Ethical leaders generally adopt one of two approaches to leadership: a _________-based approach or a(n) ________-based approach. a. certainty: risk b. submission: honesty c. compliance: integrity d. obedience: reliability e. leader: follower
c
6. Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties? a. Fair Labor Association b. Amnesty International c. Global Compact d. Council on Economic Priorities Accreditation Agency e. World Trade Organization
c
9. A values-based ethics culture _____. a. is based solely on the Office of Best Practices to help employees identify and deal with ethical issues b. excludes Upper Management Board, but relies solely on the Board of Directors to add to general value statements by formulating specific value statements for its strategic business units (SBU) c. relies upon an explicit mission statement that defines the core values of the firm d. excludes the Board of Directors, but relies solely on Upper Management to add to general value statements by formulating specific value statements for its strategic business units (SBU) e. is based solely on transparency to help employees identify and deal with ethical issues
c
10. As defined within the chapter, global common values _____. a. are not all derived from the major religions of Hinduism, Buddhism, Confucianism, Judaism, Islam, and Christianity b. have a subset of desirable common values such as integrity, family and egoism c. have a subset of undesirable common values such as pride, fidelity, and egoism d. are all derived from the major religions e. are unrelated to most laws either directly or indirectly
d
11. According to Kohlberg's model of cognitive moral development, different individuals make different decisions in similar ethical situations because _______. a. they are influenced by different family values b. they are of different ages c. they have different personalities d. they are in different stages of cognitive moral development e. no one wants to be the same as others
d
2. Why do certain countries view bribery as ethical? a. They do not accept bribes that are more than $100 in value. b. They want to place limitations on company expansion. c. They use these payments to help the more disadvantaged. d. They see these bribes as "favors" of minimal value. e. They wish to protect domestic businesses.
d
4. The strategic importance of ethics auditing includes all of the following EXCEPT _____. a. improving stakeholder relationships b. assessment for reallocating resources c. boosting profits and reducing risk d. avoidance of fines in case of an infraction e. providing a management tool for helping companies facilitate improvement
d
5. _____ is one of the biggest contributors to illnesses in developing countries. a. Food contamination b. Urban sprawl c. Air pollution d. Water pollution e. Land pollution
d
6. A compliance culture _____. a. revolves around the ethical culture concept b. teaches employees to navigate ethical gray areas c. has a long-term focus on values d. uses a legalistic approach to ethics e. has a long-term focus on integrity
d
7. Which of the following utilizes a legalistic approach to ethics and uses laws and regulations to create its codes and requirements? a. apathetic b. exacting c. value-based ethics d. compliance e. integrative
d
8. Alternative sources of energy include all of the following EXCEPT _____. a. geothermal power b. hydropower c. wind power d. gas power e. nuclear power
d
9. Teleology is a philosophy that states that _______. a. a relativist perspective will lead to career growth b. it is not possible to get too much of a good thing c. moral rightness or acceptability is defined in terms of consequences for the individual d. an act is morally right or acceptable if it produces a desired result e. people decide what is legal or illegal
d
11. Which of the following is the international coordinator of regulatory policy for the world and makes short-term loans to member countries with deficits and provides foreign currencies to its members? a. Multinational corporation b. World Trade Organization c. World Bank d. United Nations e. International Monetary Fund
e
12. Which is NOT a criticism of MNCs _____. a. their power b. their size c. unfair competition d. exploitation of labor markets of host countries e. exploitation of labor markets of home countries
e
2. What kind of power stems from a belief that a certain person has the right to exert power over others? a. expert power b. reward power c. referent power d. coercive power e. legitimate power
e
3. In which type of organization is decision making delegated as far down the chain of command as possible? a. formalized b. creative c. centralized d. flexible e. decentralized
e
4. When various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole it is called _____. a. the Sullivan Principles b. the framing effect c. global common values d. packaging e. risk compartmentalization
e
7. Conflict management styles include all of the following EXCEPT _____. a. accommodating b. competing c. collaborating d. avoiding e. guarding
e
7. _____________ is the final stage of cognitive moral development, according to Lawrence Kohlberg. a. The stage of prior rights, social contract, or utility b. The stage of social system and conscience maintenance c. The stage of punishment and obedience d. The stage of individual instrumental purpose and exchange e. The stage of universal ethical principles
e
8. A management system that focuses on all the elements that contribute to organizational performance and success, including financial, customer, market, and internal processes is defined as the _____. a. Triple Bottom Line b. OCEG c. GRI d. Six Sigma e. Balanced Scorecard
e
8. When morality varies from one culture to another and that "right" and "wrong" are defined differently is referred to as _____. a. uncertainty avoidance b. individualism and or collectivism c. Hofstede's cultural dimension d. self-reference criterion e. cultural relativism
e
9. The measuring of social, financial, and environmental factors (or people, places, and planet) that recognizes business has a responsibility to positively influence a variety of stakeholders, including customers, employees, shareholders, community, and the natural environment is defined as _____. a. Six Sigma b. GRI c. Balanced Scorecard d. OCEG e. Triple Bottom Line
e
9. Which of the following is not a category of communication? a. interpersonal communication b. nonverbal communication c. listening d. small group communication e. coercive communication
e