Ethics ch.7, 8, and 9 Homework Questions

Charlotte, Jamie, and Andrew are part of an assembly of individuals with an organized structure. Charlotte is from the marketing department, Jamie is from the purchasing department, and Andrew is from the finance department. Charlotte is the leader and acts as a facilitator at meetings. Charlotte, Jamie, and Andrew all actively participate in the discussions that take place. Together, the three individuals decide on the disbursements of work assignments. Which type of assembly are Charlotte, Jamie, and Andrew part of in this scenario?

A business team

Hiten is a member of the sustainability committee at his company. The committee, which helps advance the organization's sustainability goals, meets regularly to review performance, develop plans, and make decisions. The committee is made up of members from across the organization to improve the coordination and implementation of decisions. Which type of group is Hiten a member of in this scenario?

A formal group

A company wants to measure How do our customers see us?, What are we trying to do?, What do we need to improve?, and How do our shareholders view us?. To do this, the firm selects an integrity management framework that incorporates nonfinancial performance indicators into the evaluation system. The metrics to be measured are financial, customer/stakeholder, internal process, and organizational capacity. Which integrity management framework is described in this scenario?

Balanced scorecard

Nia and Rashid are coworkers at a national bank's corporate office. Even though they have both worked for the same company for many years, they often interpret situations differently. For example, when a data breach occurred, Nia wanted to alert customers immediately per company policy, but Rashid thought it would be more ethical to gather additional information about the breach before alerting the public. Why do Nia and Rashid approach ethical decision-making differently?

Because people are culturally diverse and have different values, they may interpret situations differently and the ethical decisions they make on the same issue may therefore vary

Ernesto is an office assistant for a family physician, Dr. Ava Smith. As Ernesto is reviewing patient records, he notices that all of the patients of the practice were listed as being on Medicaid, but he knows this is impossible. As he digs deeper, he sees charges to Medicaid over the years have increased. When he confronts Dr. Smith, she admits to falsely billing Medicaid. Which of the following describes Dr. Smith's actions in this scenario?

A white-collar crime

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 white-collar crime

Toby manages the ethics training program for a technology company. The program identifies key risk areas employees of the company might face, such as insider trading, conflicts of interest, and issues relating to emerging technologies. Toby develops a series of role-play activities so employees can gain experience in handling ethical issues. Through the program, Toby communicates that wrongdoing is not supported by the organization and employees are individually accountable for their behavior. Which of the following are additional key goals Toby should focus on for the ethics training program in this scenario?

Allow a mechanism for employees to voice their concern that is anonymous but provides answers to key questions Provide ongoing feedback to employees about how they are handling ethical issues Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma they do not know how to resolve

Five people with similar tastes in outdoor activities and music discuss their interests while working and often meet outside work for dinner, concerts, sports events, or other activities. Which type of group is described in this scenario?

An informal group

Angelina is hired as an inside sales representative for a cosmetics company. Though she was initially excited to join the team, she is disappointed when she notices almost immediately that her coworkers focus on their own self-interest. One day, Angelina makes a record-breaking sale. She anticipates management will be excited, but she is not recognized for her efforts. By the end of her first month, Angelina begins to feel that management is undervaluing employee efforts. What kind of culture is described in this scenario?

Apathetic

Aero Corp., a multinational biotechnology corporation, made illicit payments to leaders at pharmaceutical companies in order to win their business. When the illicit payments were uncovered, Aero's reputation was tarnished and Aero's leaders were replaced as a result. The new management team established an ethics and compliance system designed to proactively prevent misconduct and to detect it when it occurs. Which of the following statements is true of Aero in this scenario?

As a moral agent, Aero is required to obey the laws and regulations that define acceptable business conduct

A company that is characterized by low flexibility, low problem recognition, and clear-cut division of labor has which type of organizational structure?

Centralized

Greta, the CEO of The EV Company, believes that decision-making authority should be concentrated in the hands of top-level managers. For this reason, Greta rarely delegates responsibility to lower levels. Greta believes this is the best way to manage The EV Company since she is often responsible for high-risk decisions. Which type of organization is described in this scenario?

Centralized

The CEO of a social media company believes that since the decisions it makes about its platform are very important, high-stakes decisions, only high-level executives should have decision-making authority. There are many formal rules and procedures in place at the company, and the division of labor is clear-cut. Which type of organization is described in this scenario?

Centralized

A small manufacturer needs to develop and implement a code of ethics for its 200 employees. Previously, the company did not have a formal code of ethics, but after securing a lucrative government contract, the manufacturer decided it was time. First, the manufacturer considered areas of risk and stated the values and conduct necessary to comply with existing laws and regulations. Next, the company identified values that specifically addressed current ethical issues. Which of the following are additional factors the small manufacturer should consider when developing and implementing its code of ethics?

Communicate the code frequently in the language that employees can understand Revise the code every year with input from organizational members and stakeholders Make the code understandable by providing examples that reflect values

Acme Corp., a small robotics firm, experiences overnight success after a major retailer signs a multi-million-dollar contract with them. The start-up, which initially only had two employees, now must hire hundreds of employees. As part of the contract with the major retailer, Acme Corp. must develop a code of conduct. To do this, Acme Corp. uses a legalistic approach, focusing on laws and regulatory rules to create its codes and requirements. Which approach is Acme Corp. taking in this scenario?

Compliance Culture

A retailer has six core values: think creatively, speak your mind, influence the future, always be learning, be truthful, and be transparent. These shared values influence the behavior of the company's employees. Which of the following do the shared values mentioned in this scenario relate to?

Corporate Culture

Anthony, the CEO of a software-as-a-service company, believes that individuals at his company should feel empowered to make decisions. He encourages employees at all levels to make big decisions and ignore the traditional chain-of-command. Anthony believes this is what allows his employees to have high problem recognition. Which type of organization is the software-as-a-service company in this scenario?

Decentralized

When an employee was found guilty of insider trading, a hospitality company decided to conduct an ethics audit to improve its ethics program. First, the ethics officer gained support from the CEO and the board of directors. They all agreed an ethics audit was necessary. Next, the ethics officer and the CEO worked to create a committee to oversee the audit. After that, a review was conducted of the firm's mission, values, goals, and policies. Which step in the framework for an ethics audit should have occurred prior to the review that was conducted in this scenario?

Define the scope of the audit process

Illuminate Motors, an electric vehicle company, expends many resources to support its corporate social responsibility efforts. For example, it is a carbon-neutral company and powers its buildings with solar power to protect the environment. To support social causes, the company provides educational programs for local students to learn more about electric vehicles and offers professional advancement opportunities to its employees. The company also focuses on corporate governance and transparency. Which integrity measurement framework would Illuminate Motors most likely use?

ESG

Talena, a business owner, quantifies values by monetary means. She has determined that the act of reducing compensation for underperforming employees would produce an economic value for her business, so Talena believes it should be accepted as an ethical action. Which of the following concepts describes Talena's beliefs in this scenario?

Economic Value Orientation

Before setting up an ethics program, a company voluntarily calls for an evaluation that will identify the firm's ethical standards as well as its existing policies and risk areas. What is this evaluation called?

Ethics audit

Ji-hoon, an experienced ethics and compliance professional, is contacted by a corporate recruiter. The recruiter describes a job that would require Ji-hoon to assess the needs and risks an organization-wide ethics program must address, conduct training programs for employees, monitor and audit ethical conduct, and review and update a code of ethics. Based on this job description, which role is the recruiter hoping Ji-hoon can fill?

Ethics officer

Melinda develops and distributes the code of ethics at her company. Twice a year she reviews the company's code and makes necessary changes. On an ongoing basis, she confidentially answers employees' questions about ethical issues. When she has evidence of possible ethics code violations, Melinda takes appropriate action. Which role does Melinda fulfill in this scenario?

Ethics officer

Bao works on the production line for a car manufacturer. Her supervisor closely monitors Bao's productivity and holds her to high standards, often to her detriment. For example, one day Bao did not feel well and asked to go home early. Management denied her request because Bao had not met her quota for the day. Bao often feels the company only focuses on its own interests. What type of culture is described in this scenario?

Exacting

A major retailer is introducing a controversial children's toy despite protests from the public. A group of hackers decides to attack the company's network on the day of the product launch. They inundate the retailer's domain names with malicious requests in order to create connectivity problems and service failures for legitimate users of the system. Which of the following is the type of cybercrime described in this scenario?

Flood Attacks

Eliana is the ethics officer for a major aluminum manufacturer, where she is responsible for managing the organization's ethics and legal compliance programs. After concerns surface that the firm is generating excess waste, several of its stakeholders push for an ethics audit. In order to comply with this request, which of the following should Eliana do first?

Gain the support of top management and board of directors

Hasan is a social media influencer from Nashville, Tennessee. He has a large following on Instagram in Nashville, but he recently moved to Washington, D.C. to go to school. A D.C.-based doughnut shop messages Hasan and asks if he would be interested in sharing a series of sponsored posts. The doughnut shop will pay Hasan $750 in exchange for three posts about the shop. Hasan, however, being new to the D.C. metro hardly has any followers in the area and knows that if he posts about the shop, his post will result in little engagement and few sales, if any, for the shop. Which of the following will he choose to do, if Hasan is a utilitarian?

Hasan will conduct a cost-benefit analysis to assess which alternative would create the greatest utility before deciding whether to tell the doughnut shop about his followers.

Hasan is a social media influencer from Nashville, Tennessee. He has a large following on Instagram in Nashville, but he recently moved to Washington, D.C. to go to school. A D.C.-based doughnut shop messages Hasan and asks if he would be interested in sharing a series of sponsored posts. The doughnut shop will pay Hasan $750 in exchange for three posts about the shop. Hasan, however, being new to D.C., hardly has any followers in the area and knows that if he posts about the shop, his post will result in little engagement and few sales, if any, for the shop. Which of the following will he choose to do, if Hasan is a virtue ethicist?

Hasan will consider the elements of virtue, tell the doughnut shop about his followers, and suggest alternative influencers to work with.

Hackers breach the security of an online greeting card company, breaking into a database containing personally identifiable information on its customers, such as names, email addresses, and mailing addresses. Even worse, users of the greeting card website have often uploaded the mailing addresses of their friends and family in order to use the company's personalization services. The hackers obtain all of this data during the breach. Which of the following is the type of cybercrime described in this scenario?

Identity theft

At work, Sweta tends to adopt a utilitarian perspective, often conducting cost-benefit analysis to assess which alternatives create the greatest utility. However, in her personal life, Sweta is more of a virtue ethicist, believing that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation. Which of the following explains Sweta's behavior in this scenario?

Individuals may use differing moral philosophies depending on whether they are making a personal decision or a work-related decision.

Alejandro works for one of the "Big Four" accounting firms. As the chief ethics and compliance officer, Alejandro must assess the effectiveness of the organization's internal controls and commission audits of these controls by an external auditor in conjunction with the audit of its financial statements. Why is management required to do this?

It is a requirement under Sarbanes-Oxley 404

At work, June is an entry-level employee. She likes to observe the actions of her coworkers and determine consensus before moving forward with decisions, but she is rarely given the opportunity to do so. Instead, she usually must follow the lead of her manager who takes a utilitarian approach. Which of the following explains why June goes along with her manager?

June does not have the power to impose her own moral perspective on others.

Hilary is tasked with improving the ethics and compliance program of an accounting firm. Before Hilary's review of the program began, the company had already established standards and procedures to prevent and detect criminal conduct and ensured the firm's board, top management, and high-level personnel exercised reasonable oversight of those standards and procedures. Which of the following are minimum requirements that Hilary should implement?

Make a reasonable efforts to keep individuals whom organizations knew or should have known to have engaged in illegal activities out of key positions Communicate standards and procedures by training directors, employees, and appropriate agents

John takes advantage of situations at work in order to further his career in sales. For example, when the customer relationship management system goes down and sales representatives are asked to report their monthly sales figures using the honor system, John inflates his sales numbers because he knows he is unlikely to be caught. In this scenario, John is more likely to _______.

Manipulate, cheat, or act in a self-serving manner when the benefits gained from doing so are greater than the penalties for misconduct

Northern Airlines is widely considered to be one of the most ethical companies in the world. Its founders established a strong code of ethics early in the company's history that Northern Airlines continues to improve every year. Its ethics and compliance program includes a toll-free ethics hotline, a code of conduct, ethics training, a chief ethics officer, independent oversight, regular auditing, and more. Despite its strong ethics program, it is discovered that one of the company's top executives has been accepting bribes from various airports in exchange for establishing new routes. Which of the following does this scenario exemplify?

Misconduct can still occur even if the company has ethical guidelines in place

Daniel, a production manager at a company that manufacturers corrugated boxes, has just learned that the organization experienced a significant drop in profits during the previous two quarters and its executive team has decided to delay the informal annual bonus employees have come to expect at this time of the year until the company's financial situation improves. Daniel must now make a decision about whether or not to notify employees in advance of this planned change in practice. Which of the following concepts best captures the situation described in this scenario?

Moral Philosophy

Nia, a sales representative for Midwest Hardware, a company that manufactures nuts and bolts, hopes to obtain a large sale from a construction firm that is building a bridge across the Mississippi River near St. Louis, Missouri. The bolts manufactured by Midwest Hardware have a 3 percent defect rate, which—although acceptable in the industry—makes them unsuitable for use in certain types of projects, such as those that may be subject to sudden, severe stress. The new bridge will be located near the New Madrid Fault Line, the source of the United States' greatest earthquake in 1811. The epicenter of that earthquake is less than 200 miles from the new bridge site. Though there is a 50 percent chance an earthquake will occur along the fault line within the next ten years, according to experts, bridge construction in the area is not regulated by earthquake codes. If Nia wins the sale, she will earn a commission of $25,000 on top of her regular salary. But if she tells the contractor about the defect rate, Midwest may lose the sale to a competitor that markets bolts with a lower defect rate. Nia's ethical issue is whether to point out to the bridge contractor that, in the event of an earthquake, some Midwest bolts could fail, possibly resulting in the collapse of the bridge. Which of the following will she choose to do, if Nia is a relativist?

Nia will attempt to determine consensus before deciding whether to tell her prospective customer about the bolts' defect rate.

Nia, a sales representative for Midwest Hardware, a company that manufactures nuts and bolts, hopes to obtain a large sale from a construction firm that is building a bridge across the Mississippi River near St. Louis, Missouri. The bolts manufactured by Midwest Hardware have a 3 percent defect rate, which—although acceptable in the industry—makes them unsuitable for use in certain types of projects, such as those that may be subject to sudden, severe stress. The new bridge will be located near the New Madrid Fault Line, the source of the United States' greatest earthquake in 1811. The epicenter of that earthquake is less than 200 miles from the new bridge site. Though there is a 50 percent chance an earthquake will occur along the fault line within the next 10 years, according to experts, bridge construction in the area is not regulated by earthquake codes. If Nia wins the sale, she will earn a commission of $25,000 on top of her regular salary. But if she tells the contractor about the defect rate, Midwest may lose the sale to a competitor that markets bolts with a lower defect rate. Nia's ethical issue is whether to point out to the bridge contractor that, in the event of an earthquake, some Midwest bolts could fail, possibly resulting in the collapse of the bridge. Which of the following will she choose to do, if Nia is an egoist?

Nia will keep quiet about the botls' defect rate, hoping to win the sale and the $25,000 commission

Kilo Watt, an energy company, has an extensive ethics program. For example, during training, the company offers experiential learning opportunities. The program materials have been developed to address the needs of the average employee. Kilo Watt's ethics officer reviews employee feedback frequently from employees across the firm to improve the program. The CEO, however, pressures employees to bend the rules to meet performance goals. This behavior has permeated the company all the way to the lowest levels. Which of the following mistakes has been made in designing and implementing Kilo Watt's ethics program in this scenario?

Senior management has failed to take ownership of the ethics program

Go Athletics, a sportswear and athletic equipment retailer, has a detailed code of ethics in understandable language that is easily downloaded from the employee online portal or available in print, but the company repeatedly detects ethical misconduct. For example, the code of conduct explicitly states that employees must offer new gym equipment for sale to customers for at least one week before purchasing it for themselves. Yet employees often engage in this behavior. Go Athletics sends a survey to employees to understand why this is happening. They discover that frontline employees are unaware of the code of ethics. Which of the following explains why Go Athletics' code of ethics failed in this scenario?

The code is not promoted and employees do not read it

A sales representative from a cosmetics company offers a salon employee a free gift valued at $500. The salon employee accepts the gift from the representative because they believe there is a slim chance of being caught and punished by management. Which stage of Kohlberg's model of cognitive moral development does this scenario represent?

The stage of punishment and obedience

A marketing manager for a furniture company argues for discontinuing a popular bookshelf that has caused the death and injury of children because the inalienable right to life makes killing wrong, regardless of the reason, and therefore, company profits are not a justification for the continued sale of the bookshelf. This manager, who is more concerned with social ethical issues and therefore does not rely on the business organization for ethical direction, is in which of the following stages of Kohlberg's model of cognitive moral development?

The stage of universal ethical principles

Leia was the chief financial officer for a publicly traded energy company. A newly hired accountant came across several bank accounts in the company's name that Leia used to pay for personal travel expenses including airfare and hotels. The accountant reported these suspicious accounts to the FBI. In this scenario, which of the following did the accountant engage in?

Whistle-blowing

A baggage handling manager believes their firm will not win a contract with a prominent airline unless an executive at the airline receives a bribe, and if the firm does not obtain the contract, it will have to lay off hundreds of baggage handlers across dozens of airports. The manager argues that bribery is justified because saving hundreds of jobs across the country creates more utility than obeying a law. Is it possible for this manager to be an act utilitarian? Why?

Yes, because an act utilitarian might argue that bribery is acceptable if it results in the greatest utility.

Your Corp., a cosmetics company, has several policies and procedures in place to deter and detect misconduct. Its international code of conduct is designed to guide business at Your Corp.'s international hubs while its supplier code of conduct dictates how companies in its supply chain should behave. For example, ingredients sourced for Your Corp. products must come from suppliers who meet certain sustainability criteria. Your Corp.'s ethics officer oversees the ethics program and the toll-free ethics hotline. Which of the following statements is true in this scenario?

Your Corporation has a strong ethics program