BUAD Unit II
Ethical Awareness
The ability to perceive whether a situation or decision has an ethical dimension.
Idealism
A moral philosophy that places special value on ideas and ideals as products of the mind
Monists
Believe only one thing is intrinsically good
Gender
In ethical decision making, research shows that in many aspects there are no differences between men and women
Instrumentalists
Reject the ideas that (1) ends can be separated from the means that produce them and (2) ends, purposes, or outcomes are intrinsically good in and of themselves
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
According to researchers, normative values largely originate from all of the following EXCEPT ______________. a. Religion b. Family c. Friends d. The Media e. Government
d
This philosophy evaluates ethicalness subjectively on the basis of individual and group experiences ______. a. Egoism b. Utilitarianism c. Deontology d.Relativism e. Teleology
d
Age
An individual factor that has a complex relationship with business ethics
Economic Value Orientation
Associated with values quantified by monetary means; according to this theory, if an act produces more economic value for its effort, then it should be accepted as ethical
Goodness Theories
Focus on the end result of actions and the goodness or happiness created by them
Instrumental Concern
Focuses on positive outcomes, including firm profitability and benefits to society
Normative Approach
How organizational decision makers should approach an issue
Moral Intensity
Individuals' perceptions of social pressure and the harm they believe their decisions will have on others.
Pluralists
Often referred to as nonhedonists, take the opposite position that no one thing is intrinsically good
Immediate Job Context
Where they work, whom they work with, and the nature of the work
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. centralized b. decentralized c. tall d. flat e. hierarchical
a
A cultural audit can be performed internally within the organization. a. True b. False
a
Codes of conduct and codes of ethics _____. a. are formal statements that describe what an organization expects of its employees b. are designed for top executives and managers, not regular employees c. become necessary only after a company has been in legal trouble d. always require the creation of an anonymous hotline e. rarely become an effective component of the ethics and compliance program
a
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
High levels of ____________ create a higher probability that firms cut corners because margins are usually low. a. Competition b. Cooperation c. Profit d. Return e. Loss
a
John, vice president of operations at We Car, Inc., approves the illegal disposal of toxic waste at his firm's international factory. John has committed ________. a. A white-collar crime b. Stakeholder Disenfranchisement c. Hedonism d. Employee Abuse e. Fraud
a
Keys to successful ethics training include all but _____. a. leaving clear opportunities for employees to engage in unethical behaviors b. helping employees understand the ambiguity inherent in ethical situations c. giving employees a means to address ethical issues d. helping employees identify the ethical dimensions of a business decision e. providing direction for finding managers or others who can assist in ethical conflict resolution
a
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
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
The MOST important attribute for effective leadership is _____. a. leading by example b. handling crises calmly c. team meetings d. admitting mistakes e. bringing out the best in others
a
The concept of moral philosophies is inexact. a. True b. False
a
The famous statement "Act as if the maxim of thy action were to become by thy will a universal law of nature" is called a. Categorical Imperative b. Philosophy of Action c. Utilitarianism d. Rule of Deontologists e. Economic Imperative
a
The opportunities that employees have for unethical behavior in an organization can be nearly eliminated through formal codes, policies, and rules that are adequately enforced by management. a. True b. False
a
The types of moral philosophy discussed in the text include __________. a. Teleology, deontology, relativist perspective, virtue ethics, and justice b. Teleology, utility, relativist perspective, virtue ethics, and deontology c. Teleology, self-interest, relativist perspective, virtue ethics, and justice d. Teleology, utility, relativist perspective, virtue ethics, and justice e. Teleology, self-interest, relativist perspective, virtue ethics, and career growth
a
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. Nationality or citizenship e. The organizational relationships that influence the ethical decision-making process
a
Which is NOT a characteristic of culture? a. Culture can be changed easily and quickly. b. Culture is formed over a relatively long period of time. c. Culture is relatively stable. d. Elements of culture are unwritten. e. Culture is shared among individuals belonging to a group or society.
a
_____ are formal statements that describe what an organization expects of its employees in terms of ethical behavior. a. Codes of conduct b. Mission statements c. Environmental policies d. The Federal Sentencing Guidelines for Organizations e. Policies on confidentiality
a
The support of top management is essential to the successful effectiveness of an ethics and compliance program. a. True b. False
a
Applying a personal moral philosophy is the first step in the ethical decision-making process. a. True b. False
b
Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is known as _________. a. Morality Beliefs b. Locus of Control c. Internal Control d. External Control e. Moral Intensity
b
Motivation is defined as a. a desire to be finished with a project. b. a force within the individual that focuses his or her behavior on achieving a goal. c. individual goals. d. the reason why high achieving employees strive for high job performance. e. personal ambition without regard to the impact on others.
b
Teleology is a philosophy that states that _______. a. It is not possible to get too much of a good thing b. An act is morally right or acceptable if it produces a desired result c. People decide what is legal or illegal d. A relativist perspective will lead to career growth e. Moral rightness or acceptability is defined in terms of consequences for the individual
b
The FSGO utilizes a "carrot and stick" philosophy to encourage organizational compliance. What is the ultimate "stick" the FSGO uses? a. a stern warning b. being fined or put on probation c. being forced to disband as an organization d. nothing happens e. a written reprimand
b
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 customize a compliance program to address these risks and satisfy key effectiveness criteria c. encourages companies to assess their key risk areas and use a standard 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
b
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. Relativism b. Virtue Ethics c. Justice d. Deontology e. Utilitarianism
b
This philosophy focuses on the preservation of individual rights and on the intentions associated with a particular behaviour rather than on its consequences ________. a. Utilitarianism b. Deontology c. Relativism d. Egoism e. Teleology
b
Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as significant others. Which of the following is supported by research concerning significant others? a. Significant others within an organization have no impact on a worker's decisions b. Significant others within an organization may have more impact on a worker's decisions on a daily basis than any other factor c. Significant others within an organization have little impact on a worker's decisions d. Significant others within an organization have more impact on a worker's decisions on a daily basis than any other factor e. Significant others within an organization may have less of an impact on a worker's decisions than gender
b
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. referent c. expert d. legitimate e. corrosive
b
When a foreman orders an assembly-line employee to carry out a task that the employee perceives as unethical, yet the employee feels compelled to do it because of the foreman's position, the foreman is exercising a. coercive power. b. legitimate power. c. reward power. d. referent power. e. expert power.
b
Which of the following is NOT a factor in the ethical decision-making model? a. Opportunity b. Employee Benefits Packages c. Individual Factors d. Organizational Factors e. Ethical Issue Intensity
b
Which statement best describes ethical issue intensity? a. The perceived value of an ethical issue to the society b. A set of values, beliefs, goals, norms, and ways to solve problems that members of an organization share. c. The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization. d. The perceived relevance or importance of an ethical issue to the local community. e. The perceived importance of an ethical issue to the government.
c
_______ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own. a. The Ethical Climate b. The Legal Climate c. Corporate Culture d. Significant Others e. Oversight
c
A compliance culture _____. a. has a long-term focus on integrity b. teaches employees to navigate ethical gray areas c. has a long-term focus on values d. uses a legalistic approach to ethics e. revolves around the ethical culture concept
d
What kind of power stems from a belief that a certain person has the right to exert power over others? a. referent power b. expert power c. reward power d. legitimate power e. coercive power
d
What type of justice exists if employees are being open, honest, and truthful in their communications at work? a. Distributive b. Hedonistic c. Procedural d. Interactional e. Civil
d
Which of the following is NOT a characteristic of a centralized organization? a. low flexibility b. many formal rules c. clear-cut division of labor d. few and informal rules e. low problem recognition
d
Which of the following statements best describes an opportunity? a. A corporate culture b. Organizational factors c. How easy it is to pilfer office supplies from one's workplace d. The conditions in an organization that limit or permit ethical or unethical behavior e. A reflection of whether the firm has an ethical conscience
d
Which of the following statements is FALSE concerning the concept of Differential Association? a. 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. b. Associating with others who are unethical, combined with the opportunity to act unethically, is a major influence on ethical decision making, c. People learn ethical or unethical behavior while interacting with others who are part of their role-sets. d. Differential Association is not described in the decision-making framework of this book. e. The learning process is more likely to result in unethical behavior if the individual associates primarily with persons who behave unethically.
d
_______ is right or acceptable behaviour in terms of the consequences for the individual. a. Utilitarianism b. Act Deontology c. Relativism d. Egoism e. Rule Deontology
d
____________ is the final stage of cognitive and 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 individual instrumental purpose and exchange d. The stage of universal ethical principles e. The stage of punishment and obedience
d
A central problem with relativism is a. That it is very complicated b. That few people believe that these principles are important c. That many feel that it only works in theory d. That it represents unattainable goals e. That it emphasizes people's differences, not similarities
e
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. developing an ethics program that only consists of lectures c. upper management taking ownership of the program d. developing programs that fully address the needs of employees e. transferring their "American" programs to the firm's international operations
e
A corporate culture can be defined as ______________. a. The working environment in the executive suite b. The set of rules that some employees agree to obey c. The perceived importance of an ethical issue to the government d. The interpersonal relationships in the organization e. A set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share
e
A cultural audit _____. a. is exclusively conducted externally b. is exclusively conducted internally c. is an assessment of an organization's accounting requirements d. is mandatory within U.S.-owned firms e. is an assessment of an organization's values
e
The ultimate "stick" associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company's ethical compliance efforts, and a. divestiture of all assets. b. appointment of an appropriate high-level manager to oversee the company's program. c. installation of an ethics hotline. d. payment of any penalties levied. e. reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct.
e
To be effective, ethics training must start with a foundation that includes _____. a. a total quality management program b. a financial audit c. a diversity agenda d. a regulatory lobbyist e. a code of ethics
e
Which of the following scenarios is unethical but not illegal? a. 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. b. 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. c. 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. d. 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. e. 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.
e
_____________ involves the conditions for encouraging or limiting ethical behavior in an organization through rewards for ethical behavior or failing to prohibit unethical behavior. a. Regulation b. Locus of Control c. Punishment d. Governance e. Opportunity
e
Nationality
legal relationship between a person and the country in which he or she is born.
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. integrative d. compliance e. value-based ethics
d
Obedience to Authority
A reason employees resolve business ethics issues by simply following the directives of a superior
Corporate Culture
A set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share.
Education
A significant factor in the ethical decision-making process; generally, the more education or work experience people have, the better they are at making ethical decisions
Veil of Ignorance
A thought experiment that examined how individuals would formulate principles if they did not know what their future position in society would be
Moral Philosophy
Refers to the specific principles or values people use to decide what is right and wrong
Ethical Culture
Reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior
Equality Principle
States that each person has basic rights that are compatible to the basic liberties of others
Difference Principle
States that economic and social equalities or inequalities should be arranged to provide the most benefit to the least-advantaged members of society
Opportunity
The conditions in an organization that limit or permit ethical or unethical behavior
Hedonism
The idea that pleasure is the ultimate good, or the best moral end involves the greatest balance of pleasure over pain
Ethical Issue Intensity
The relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization.
Realism
The view that an external world exists independent of our perceptions
Institutional Theory
Theory that organizations operate according to taken-for-granted institutional norms and rules
Internal Control
Those believe they control the events in their lives by their own effort and skill, viewing themselves as masters of their destinies and trusting in their capacity to influence their environment
Qualitative Hedonists
Those who believe it is possible to get too much of a good thing
Quantitative Hedonists
Those who believe more pleasure is better
Significant Others
Those who have influence in a work group, including peers, managers, coworkers, and subordinates
External Control
Those who see themselves as going with the flow because that is all they can do
Locus of Control
To individual differences in relation to a generalized belief about how you are affected by internal versus external events or reinforcements
Which of the following is a correct statement? a. Interactional justice is based on the evaluation of outcomes or results of the business relationship 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 behaviour are derived objectively e. Distributive justice is based on the processes and activities that produce the best outcome or results
b
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. Organizations can influence ethical behavior by hiring people with high ethical standards and developing an ethical corporate culture. c. People with a higher expectation of punishment behave more ethically. d. Corporations often influence otherwise ethical people to behave unethically. e. People who have high cognitive moral development and are principled tend to act more ethically than others.
b
__________ involves subordinates simply following the drectices of a superior without question. It demonstrates the influence that significant others can exert in the workplace. a. Transactional Leadership b. Obedience to Authority c. Opportunity d. Immediate Job Context e. Locus of Control
b
A values-based ethics culture _____. a. is based solely on transparency to help employees identify and deal with ethical issues b. 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) c. relies upon an explicit mission statement that defines the core values of the firm d. is based solely on the Office of Best Practices to help employees identify and deal with ethical issues e. 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
All of the following are responsibilities of an ethics officer EXCEPT _____. a. assessing the needs and risks that an organization-wide ethics program must address b. developing and distributing a code of conduct or code of ethics c. making government laws related to business ethics d. conducting training programs for employees e. monitoring and auditing ethical conduct
c
Elena, an employee at ABC Marketing, has observed misconduct at work and wonders if she should report it. In the end, she decides not to do so because of the possible repercussions at work. Which of the following has determines Elena's action? a. Corporate Culture b. Control Issues c. Organization Factors d. Opportunity e. Individual Factors
c
Ethical ________ is the ability to perceive whether a situation or decision has an ethical dimension. a. Education b. Morality c. Awareness d. Personality e. Intensity
c
If a company determines its ethical performance has been less than satisfactory, _____. a. decentralization may increase the opportunities higher-level managers and employees have to make unethical decisions b. 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 c. centralization may reduce the opportunities lower-level managers and employees have to make unethical decisions d. 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. e. decentralization may reduce the opportunities lower-level managers and employees have to make unethical decisions
c
In which type of organization is decision making delegated as far down the chain of command as possible? a. centralized b. formalized c. decentralized d. flexible e. creative
c
Rawls used what he called the veil of ignorance which led him to develop __________. a. The difference principle which states that each person has basic rights that are compatible to the basic liberties of others b. Five main principles of justice c. The difference principle in that economic and social equities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society d. The Constitution Principle e. The equality principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society
c
The ability to perceive whether a situation or decision has an ethical dimension is defined as ____________. a. Moral Issue Intensity b. Moral Awareness c. Ethical Awareness d. Ethical Issue Intensity e. Business Issue Awareness
c
The relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization is known as ____. a. Locus of Control b. Opportunity c. Ethical Issue Intensity d. Obedience to Authority e. Moral Intensity
c
What did the Sarbanes-Oxley Act put more pressure on ethics officers to monitor? a. human resources b. environmental issues c. financial reporting d. discrimination e. export restrictions
c
What do values orientation strives to develop? a. moral philosophies b. compliance c. shared values d. personal character e. codes of ethics
c
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. developing effective communication of ethical standards c. developing and implementing marketing strategy d. coordinating the ethical compliance program with top management, the board of directors, and senior management e. developing, revising, and disseminating a code of ethics
c
