MANA Chapter 4

When the Chicago-based Club Aluminum Company was facing bankruptcy, one of the changes its new CEO made was to create a(n) ____ for all employees to follow in their business and professional lives. It read, "Of the things we think, say, and do: (1) Is it the truth? (2) Is it fair to all concerned? (3) Will it build goodwill and better friendships? (4) Will it be beneficial to all concerned?"

code of ethics

Which of the following is an objective of ethics training? a. develop employee awareness about ethics b. push ethics training throughout the entire organization c. teach employees a practical model of ethical decision making d. achieve credibility with employees e. achieve all of these

Achieve all of these

Due to ____ , the intentional pollution of a metropolitan water supply would have greater ethical intensity than insider trading in which a few participants netted less than $10,000. a. social consensus b. magnitude of consequences c. temporal immediacy d. probability of effect e. all of these

All of these

Which of the following organizations are covered by the U.S. Sentencing Commission Guidelines? a. a manufacturer of barbecue grills b. a natural gas supplier c. a chain of movie theaters d. a grocery wholesaler e. all of these

All of these

The last step in the basic model of ethical decision making is to ____.

Art

To create a compliance program that is acceptable under the U.S. Sentencing Guidelines, a company should ____. a. establish standards and procedures to meet the company's business needs b. put upper-level managers in charge of the compliance program c. encourage employees to report violations d. train employees on standards and procedures e. do all of these

Do all of these

To encourage more ethical decision making in an organization, its managers should ____. a. carefully select and hire new employees b. establish a specific code of ethics c. create an ethical climate d. train employees in how to make ethical decisions e. do all of these

Do all of these

____ is strong when decisions have large, certain, immediate consequences and when we are physically or psychologically close to those affected by the decision.

Ethical intensity

Which of the following statements about ethics is true? a. Acting ethically is always easier than any other form of action. b. Employees assume no risk when they conduct themselves ethically. c. Ethics can be specifically defined, like other laws. d. If an act is legal, it must by definition be ethical. e. Ethics is the set of moral principles or values that defines right and wrong for a person or group

Ethics is the set of moral principles or values that defines right and wrong for a person or group

____ integrity tests indirectly estimate employee honesty by measuring psychological traits.

Personality-based

Ethical intensity depends on all of the following EXCEPT ____. a. temporal immediacy b. probability of effect c. proximity of effect d. social commitment e. concentration of effect

Social commitment

What does it mean when the text says that the U.S. Sentencing Guidelines use a "carrot and stick" approach?

The Guidelines offer lower fines to companies that take proactive steps.

The ____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior.

U.S. Sentencing Commission Guidelines

According to Kohlberg's model of moral development, people at the ____ make decisions that conform to societal expectations.

conventional level

What term describes the degree of concern people have about an ethical issue?

ethical intensity

When addressing issues of high ____ , managers are more aware of the impact their decisions have on others, they are more likely to view the decision as an ethical decision, and they are more likely to worry about doing the right thing.

ethical intensity

According to the U.S. Sentencing Commission Guidelines, what is one method used to determine the level of the offense (i.e., the seriousness of the problem)?

examining the loss incurred by the victims

The U.S. Sentencing Commission Guidelines impose smaller fines on companies that ____.

have already established a specific type of compliance program

After identifying the problem in the basic model of ethical decision-making, the next step is to ____.

identify the constituents

Shell Oil Company's plan to sink an abandoned offshore oil-storage buoy had a massive effect on employee motivation and recruitment. The number of qualified people applying for jobs at Shell plummeted, and many employees looked for positions in other companies. The plan caused much greater harm than Shell's managers had ever imagined it would. In other words, the plan had a much greater ____ than predicted.

magnitude of consequences

The Department of Defense doesn't classify pilferage as a major problem, as its annual inventory losses run $1-2 billion a year. The intentional theft and sale of defense secrets would have greater ethical intensity than this pilferage due to ____.

magnitude of consequences

All of the following are important factors in the creation of an ethical business climate EXCEPT ____. a. personal examples set by company management b. official approval of the company's ethics code by government regulators c. fair but consistent punishment of violators d. a reporting system that encourages whistleblowers to report potential ethics violations e. top management's active involvement in ethics training program

official approval of the company's ethics code by government regulators

A(n) ____ is a written test that estimates employee honesty by directly asking job applicants what they think or feel about theft or about punishment of unethical behaviors.

overt integrity test

According to Kohlberg's model of moral development, people at the ____ use internalized ethical principles to solve ethical dilemmas.

postconventional level

Doug has a low-paying job for a telecommunications company. Every day when he goes home from work, Doug puts a headset, a stapler, or something similar in his lunch box and takes it home with him. Doug sees nothing wrong with his behavior since he feels he is being paid less than he should. In terms of Kohlberg's stages of moral development, Doug is operating at which level?

preconventional

According to Kohlberg's model of moral development, people at the ____ make decisions that are based on selfish reasons.

preconventional level

The three stages of moral development identified by Kohlberg are ____.

preconventional level, conventional level, and postconventional level

Managers can use integrity tests to _____.

select and hire ethical employees

Ethical intensity depends in part upon ____.

temporal immediacy

IAG (Individualized Apparel Group) formally closed its H. Freeman factory in Philadelphia in May. Jim Brubaker, IAG's division president of clothing, informed the workers of this closing one month earlier, in April. Due to ____, this decision produced strong ethical

temporal immediacy

If a catalog retailer promised customers it would not sell their personal information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company, and it did, the catalog retailer would be found guilty of invasion of privacy. Its sentence would be determined by ____.

the U.S. Sentencing Commission Guidelines

In May 2005, U.S. Attorney Michael J. Sullivan announced that the United States had settled civil claims arising out of a suit that alleged Oracle Corporation had violated the False Claims Act in connection with billing the federal government for software training services. The U.S. government learned about the overcharging from a former Oracle vice president. The vice president acted as a(n) ____.

whistleblower