ethics ch 7 - 12

With regards to strategic approaches to environmental issues, all of the following relate to firms having a high commitment except which statement?

Deals with issues that could cause public relations problems.

In which type of organization is decision making delegated as far down the chain of command as possible?

Decentralized

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

Developing and implementing marketing strategy

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

a code of ethics

What does a values orientation strive to develop?

shared values

With regards to sustainability, which of the following is not a common question asked of companies?

All of these are common questions asked of companies

Which type of culture shows minimal concern for either people or performance?

Apathetic

The FSGO utilizes a "carrot and stick" philosophy to encourage organizational compliance. What is the ultimate "stick" the FSGO uses?

Being fined or put on probation

What results when the middle class shrinks, leaving a nation with its wealth concentrated among the very rich and with large numbers of poor people?

Bimodal wealth distribution

Which of the following is not a category of communication?

Coercive communication

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

Companies with fewer resources

Which of the following utilizes a legalistic approach to ethics and uses laws and regulations to create its codes and requirements?

Compliance

Which is NOT a characteristic of culture?

Culture can be changed easily and quickly

What type of culture shows little concern for individual people, but a high concern for performance?

Exacting

Which is not a benefit of a firm "going green"?

Firms can focus more upon their own efforts as a distinct unit rather than on the entire supply chain.

Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?

Global Compact

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

Improved relationships with stakeholders who desire transparency

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?

International Monetary Fund

Which of the following best describes an ethics audit?

It is a major component of an ethics program.

Who was one of the fathers of capitalism that believed the state could stimulate economic growth and improve stability in the private sector through such measures as controlling interest rates, taxation, and public projects?

John Maynard Keynes

_____________occurs when the leaders and followers share the same vision, ethical expectations, and objectives for the company.

Leader-follower congruence

What kind of power stems from a belief that a certain person has the right to exert power over others?

Legitimate Power

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

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

The _______ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use. Practices include recycling, source reduction, sustainable agriculture, and other practices that increase efficiency in the use of energy, water, or other natural resources and protect resources through conservation.

Pollution Prevention Act

Which of these powers may exist when a person believes that his/her goals are similar to another's?

Referent Power

When should ethics audits and financial audits be conducted?

Regularly

What is the first step in conducting an ethics audit?

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

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

Six sigma

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.

The authoritative leader

Which of the following statements is correct?

The caring culture exhibits high concern for people but minimal concern for performance issues.

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

The level of employee compensation

What is the definition of corporate culture?

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.

_________ provide a blueprint for what a firm's corporate culture should be.

Top management

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

Verify the results yourself or by a co-worker

Which organization was established in 1995 at the Uruguay round of negotiations?

WTO

_____ is one of the biggest contributors to illnesses in developing countries.

Water pollution

Of the following statements, which is correct?

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.

Which of the following scenarios is unethical but not illegal?

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

With regards to benefits of ethical leadership, which statement is incorrect?

Working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity.

Which of the following provides legally binding ground rules for international commerce and trade policy?

World Trade Organization

Codes of conduct and codes of ethics

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

Traits of strong leaders include all of the following EXCEPT:

authority

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

avoidance of fines in case of an infraction.

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.

business for social responsibility

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.

centralized

_____ power is essentially the opposite of reward power in that it penalizes actions or behavior instead of rewards it.

coercive

Ethical leaders generally adopt one of two approaches to leadership: a _________-based approach or a(n) ________-based approach.

compliance, integrity

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

customers

Many of the day-to-day decisions in a firm are made by:

employees

Ethical leaders need both knowledge and ___________ to make the right decisions.

experience

Alternative energy sources have significantly increased the carbon footprint of communities, cities, and even countries. a. True b. False

false

Companies that experience ethical misconduct disasters almost never recover from them. a. True b. False

false

Environmental advocates ensure that shoppers are adequately informed about the environmental impact of the products they buy. a. True b. False

false

Ethical leadership is possible without effective communication.

false

Laissez-faire capitalism occurs when various profit centers within corporations are unaware of the consequences of their actions on the firm as a whole.

false

Unfortunately, in today's competitive world, a company's history and unwritten rules are not part of its corporate culture.

false

Which of the following is NOT a characteristic of a centralized organization?

few and informal rules

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

financial reportings

Alternative sources of energy include all of the following EXCEPT:

gas power

Which of the following brings together people with different cultures, values, laws, and ethical standards?

global business

___________ 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.

greenwashing

Conflict management styles include all of the following EXCEPT:

guarding.

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

help desk

Fostering ethical decisions within an organization requires eliminating unethical persons and

improving the firm's ethical standards.

All of the following are major global ethical risks EXCEPT:

increasingly global affluence and consumer desire for quality products.

A(n) _____ culture combines a high concern for people with a high concern for performance.

integrative

The ability or authority to guide and direct others toward a goal is called:

leadership

Keys to successful ethics training include all but:

leaving clear opportunities for employees to engage in unethical behaviors

All of the following are responsibilities of ethics officers EXCEPT:

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

All of the following are responsibilities of an ethics officer EXCEPT

making government laws related to business ethics

The most controversial form of alternative energy is:

nuclear energy

Both ethics auditing and financial auditing employ:

objective reporting.

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?

rational economics

All of the following represent steps in the RADAR model EXCEPT:

realize

_____________ is the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse.

recycling

All of the following are sustainable business practices that show social commitment EXCEPT:

reducing alternative energy sources

When various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole it is called:

risk compartmentalization.

___________ includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment.

sustainability

An ethics audit is a:

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

In 2010, most of the world's nations agreed to a package of climate initiatives called ________. This agreement called for industrialized countries to cut their greenhouse gas emissions and pay into a $100 billion a year green fund to help poorer countries.

the Cancun Package

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.

the Kyoto Protocol

The unconscious reference to one's own cultural values, experiences, and knowledge is called:

the self-reference criterion.

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.

to gain trust and commitment of organizational members

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

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

Corporate culture is exhibited through the behavioral patterns, concepts, documents such as codes of ethics, and rituals that emerge in an organization.

true

Employee turnover is a useful indicator for assessing employee issues.

true

Organizational culture emerges whether or not there is effective leadership

true

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

true

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

true

Wal-Mart's annual revenues are greater than the GDPs of most of the countries in the world.

true