ETHICS
The set of guidelines that requires companies to abide by a set of operating standards and to explain why they choose not to refers to ________.
"comply or explain"
How many stages are in Lawrence Kohlberg's stages of ethical reasoning?
6
________ is just doing the right thing, and it is something most people can understand and support.
A simple truth
_______ is the function that keeps track of company financial transactions by documenting money coming in and going out and by balancing the accounts at the end of the period.
Accounting function
The code of ethics adapted by the _____ speaks about doing no harm, fostering trust, and improving "customer confidence" in the integrity of the marketing exchange system.
American Marketing Association
_______ is the system that directs and controls business corporations.
Corporate governance
Ethics for the greater good was originally proposed by the Scottish philosopher ______
David Hume
What would be a negative consequence of merging the roles of the chief executive officer and the board of directors?
Ethical reasoning
_______ is a theory more focused on the outcome of your actions rather focusing on the apparent virtue of the actions themselves.
Ethics for the greater good
A board of directors is elected by vote of the employees at the annual general meeting.
F
According to Kohlberg's framework, an individual can jump beyond the next stage of his or her six stages.
F
Codes of ethics are still typically cosmetic public relations documents, and very few organizations are attempting to share them with all their stakeholders.
F
Due to aggressive competitors, Joe Smith feels pressured to lie to an important customer to keep the customer. He feels they will never discover the truth. With this ethical dilemma, the first thing Joe must do is analyze the actions without thinking about consequences.
F
In resolving a truth versus loyalty dilemma, you must decide whether the decision will have short-term or long-term consequences.
F
In the Federal Sentencing Guidelines for Organizations, Chapter 8 of the guidelines exempts businesses from liability regarding the criminal acts of their employees and agents.
F
One of the factors that can increase a culpability score is an organization's effective program to prevent and detect violations of law.
F
One question in Salmon's 22-question checklist includes: Is there one outside director for every insider?
F
Over the last four decades, corporate ethics has remained in the organizational mainstream.
F
Oversight of the board of directors remains intact even when the roles of chief executive officer and chairman of the board merge.
F
Payments to foreign officials made in connection with the promotion or demonstration of company products or services is considered a bribe.
F
Shareholders are anyone with a share or interest in a business enterprise.
F
The Consumer Financial Protection Bureau is a government agency within the Federal Reserve that oversees housing issues.
F
The Sarbanes-Oxley Act contains four sections, or title, and almost 30 subsections covering every aspect of the financial management of businesses.
F
The Sarbanes-Oxley Act helps an organization create an ethical corporate culture.
F
The board of directors runs the organization on a day-to-day basis.
F
There are clearly defined rules of right and wrong, and you should live your life in direct observance of those rules.
F
A set of _________ governs the accounting profession.
GAAP
If an employee leaves a company, the ________ department should host an exit interview to ensure that anything the organization can learn from the departure is fed back into the company's strategic plan for future growth and development.
HR
The ______ Department should be at the center of any corporate code of ethics.
HR
Advocates of ethical business conduct argue that the HR department needs to ensure that all of the following critical areas are addressed except:
HR must keep track of all of the company's financial transactions
Title ______ of the Sarbanes-Oxley Act addresses issues related to corporate responsibility.
III
An _________, such as happiness and health, is a good thing in itself and is pursued for its own sake.
Intrinsic value
Which of the following describes the first step in a policy of disregarding the corporate governance model?
Merge the roles of chief executive officer and chairman of the board into one individual.
Which of the following is not a resolution principle?
Rationalization-endured
All of the following represent the ideal of personal integrity except:
Scrooge Mcduck
_______ is someone with a share or interest in a business enterprise.
Stakeholders
"Do unto others as you would have them do unto you" is the golden rule.
T
"Do what's legal" is an ethical cliché.
T
A belief that the activity is safe because it will never be found out or publicized is one of the commonly held rationalizations that can lead to misconduct.
T
A code of ethics is a company's written standards of ethical behavior that are designed to guide managers and employees in making the decisions and choices they face every day.
T
A person's values have a specific worth to them.
T
A set of accurate financial statements that present an organization as financially stable, operationally efficient, and positioned for strong future growth can do a great deal to enhance the reputation and goodwill of an organization.
T
Effectively governed organizations must have mechanisms in place that oversee both the long-term strategy of the company and the appointment of those personnel tasked with the responsibility of delivering that strategy
T
Ethical relativism is where the traditions of your society, your personal opinions, and the circumstances of the present moment define your ethical principles.
T
Government efficiency could be considered an oxymoron.
T
In 2008, financial markets around the world suffered a severe crash as the consequence of aggressive lending, even though as recently as a few months earlier, lenders reported record earnings based on questionable lending practices.
T
Simple truth is one of the four basic categories of ethics and can be expressed simply as doing the right thing.
T
Since the 1970s, there have been several attempts at behavior modification to discourage, if not prevent, illegal conduct within organizations: 1) the Foreign Corrupt Practices Act, 2) the U.S. Federal Sentencing Guidelines for Organizations, 3) the Sarbanes-Oxley Act, 4) the Revised Federal Sentencing Guidelines for Organizations, 5) the Dodd-Frank Wall Street Reform and Consumer Protection Act.
T
Stakeholders are anyone with a share or interest in a company.
T
Stakeholders include stockholders, employees, and the federal government.
T
The 2002 Sarbanes-Oxley Act introduced greater accountability for chief executive officers and boards of directors by requiring them to sign off on the financial performance records of the organizations they represent.
T
The FCPA encompasses all the secondary measures that were currently in use by focusing on two distinct areas, disclosure and prohibition
T
The U.S. government's plan to ensure that the words "too big to fail" would never be applied to Wall Street again was delivered in the form of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
T
The board of an organization can be effective if it takes an active role in assessing leadership talent.
T
The compensation committee is a committee staffed by members of the board of directors plus independent or outside directors.
T
The development of a separate corporate entity allowed organizations to raise funds from individual shareholders to enlarge their operations.
T
The standard of corporate governance is the extent to which the officers of a corporation are fulfilling the duties and responsibilities of their offices to the relevant stakeholders.
T
Title III of SOX requires CEOs and CFOs to certify quarterly and annual reports to the SEC, including making representations about the effectiveness of their control systems.
T
Title IV requires companies to provide enhanced disclosures, including a report on the effectiveness of internal controls and procedures for financial reporting.
T
To be truly effective, a board of directors should create a climate of trust and candor and ensure individual accountability.
T
When questioned, the boards of the corporations that faced charges for corporate misconduct in recent years all shared similar stories of being "ambushed" or kept in the dark about the massive frauds the senior executives of their corporations allegedly carried out.
T
______ is a concept of living your life according to a commitment to the achievement of a clear ideal
Virtue ethics
All of the following are questions identified by Arthur Dorbin to resolve an ethical dilemma except:
What are the alternatives?
Title ______ of the Sarbanes-Oxley Act addresses issues related to corporate fraud and accountability.
XI
According to the NBES, the most often observed misconduct observed by employees was
abusive or intimidating behavior toward employees
The study of how ethical theories are put into practice refers to _______.
applied ethics
The ______ is responsible for overseeing the financial reporting process of an organization and is staffed by members of the board of directors plus independent or outside directors.
audit committee
In the R&D department, ______ is the ideal.
better, cheaper, faster
The R&D department of an organization ______.
carries the responsibility for the future growth of the organization
A _______________________ is the written standards of ethical behavior designed to guide a company's managers and employees as they make daily decisions.
code of ethics
A(n) _______ is the written standards of ethical behavior designed to guide a company's managers and employees as they make daily decisions.
code of ethics
_______ have matured from cosmetic public relations documents into performance-measurement documents which an increasing number of organizations are now committing to share with all their stakeholders.
code of ethics
All of the following are stakeholders except _____.
competitors
The set of guidelines that requires companies to abide by a set of operating standards or face stiff financial penalties refers to _______.
comply or else
A situation where one relationship or obligation places you in direct conflict with an existing relationship or obligation defines a _______.
conflict of interest
A ______ is the process that directs and controls organizations.
corporate governance
An organization's ______ consists of the values, beliefs, and norms shared by all of the employees of that organization.
culture
An organization's _________________________ consists of the values, beliefs, and norms shared by all of the employees of that organization.
culture
The ______ represents the sum of all the policies and procedures from each of the functional departments in the organization, in addition to the policies and procedures that are established for the organization as a whole.
culture
A _______ perspective is a summation of the customs, attitudes, and rules that are observed within a business.
descriptive
A _____________________ perspective is a summation of the customs, attitudes, and rules that are observed within a business.
descriptive
An ethical _______ is a situation in which there is no obvious "right" or "wrong" decision, but rather a "right" or "right" answer.
dilemma
According to the text, which of the following is not an ethical cliché?
do what i do
A ______________________________ is a situation in which there is no obvious "right" or "wrong" decision, but rather a "right" or "right" answer.
ethical dilemma
A situation in which there is no obvious "right" or "wrong" decision, but rather a "right" or "right" answer, refers to which of the following:
ethical dilemma
Kohlberg's framework offers us a clearer view into the process of _______.
ethical reasoning
According to the theory of _______, the traditions of your society, your personal opinions, and the circumstances of the present moment define your ethical principles.
ethical relativism
According to the theory of ___________________________, the traditions of your society, your personal opinions, and the circumstances of the present moment define your ethical principles.
ethical relativism
_______ is a theory more focused on the outcome of your actions rather focusing on the apparent virtue of the actions themselves.
ethics for the greater good
Prior to the passing of the Foreign Corrupt Practices Act (FCPA), illegal behavior was punishable only through the ______ sources of legislation.
secondary
A structured community of people bound together by similar traditions and customs refers to _________.
society
A structured community of people bound together by similar traditions and customs refers to _____________________________.
society
A ____________________ is someone with a share or interest in a business enterprise.
stakeholder
The owners of a corporation are typically a fragmented group consisting of all of the following, except:
the government
Ideally, the human resources function within an organization should be directly involved in all of the following except:
the marketing of the organization's products
Title II of the Sarbanes-Oxley Act requires senior auditors ______.
to rotate off an account every five years, and junior auditors every seven years
In which type of conflict would you face the following question: Do you tell the truth or remain loyal to the person or organization asking you not to reveal the truth?
truth vs loyalty
Ethics for the greater good, a theory more focused on the outcome of your actions rather focusing on the apparent virtue of the actions themselves is also referred to as __________.
utilitarianism
Because of the Sarbanes-Oxley Act, today, when employees are asked to do something that conflicts with their own personal values, seldom is the guidance from companies a series of clichés.
false
All of the following are sources of individuals' moral standards except:
government
Facilitating payments to foreign officials in order to expedite or secure the performance of a routine governmental action is known as a ______.
grease payment
Marketers see themselves as providing products (or services) to customers who ______.
have already expressed a need for and a desire to purchase those products
If an employee and company eventually part ways, the HR department should do all of the following except:
hire the next available candidate.
During the 1960s, a major ethical dilemma was _______.
honesty
All of the following are key functions of an organization except:
information system
An _______ is where the pursuit of that value is a good way to reach another value.
instrumental value
An ______________________, such as happiness and health, is a good thing in itself and is pursued for its own sake.
intrinsic value
In contrast to the Cadbury report's focus on internal governance, the ______ included a code of corporate practices and conduct that went beyond the corporation itself.
king report
All of the following are oxymorons except:
lifetime warranty
Unethical corporate behavior could negatively impact the federal government due to _____.
loss of employment
A commitment to good corporate governance can make a company ______.
more profitable
A(n) _______ is the combination of two contradictory terms.
oxymoron
Even with a board that passes all of the tests and meets all of the established criteria, ethical misconduct still comes down to ______.
personality involved
The Federal Sentencing Guidelines for Organizations requires organizations to ______.
police themselves to prevent and detect the criminal activity of their employees
By passing the FCPA, Congress sent a message that U.S. companies should compete solely on the basis on ______ and ______ in overseas markets.
price; product quality
Any regular administrative process or procedure, excluding any action taken by a foreign official in the decision to award new or continuing business, refers to _______.
routine governmental action
Marketers play the customer service card, and therefore argue that, since their customers are satisfied, the outcome justifies the methods used to achieve it, no matter how misleading the messages or how unnecessary the product sold. This argument represents a ______ view of ethics.
utilitarianism
The problem with _______ is the idea that the ends justify the means.
utilitarianism
A(n) _____ is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service.
value chain