SageVantage MARK3330 Business Ethics Chapter 9 Test

You are a manager of a small team. You overhear two employees discussing the morality of a certain decision. What action should you take to encourage ethical behavior?

Let the discussion continue, because regular discussion about ethics is a positive thing.

As a manager, you have implemented an open door policy to foster open communication with your employees. After instituting this policy, an employee comes to you looking nervous and asks to talk with you privately. Which of the following would be your best response?

Talk with them in your office with the door closed. Confidential discussion is a part of healthy communication in an office.

Enhanced whistleblower protection encourages confidence among those who invest in the stock market because it ______.

encourages whistleblowing, which discourages companies from committing fraud and negatively affecting the stock market

Why will an active employee often be more willing to report unethical behavior than a passive employee?

Active employees know that they can shape their work environment whereas passive employees accept the status quo.

A company has developed a reputation for unethical behavior but wishes to change its reputation. Which of the following would encourage open and honest communication from employees regarding unethical behavior?

Ensure that changes are made when unethical conduct is revealed.

Which of the following represents what is most likely to be a significant source of stress for an ethics and compliance officer?

Even one ethical lapse can severely damage a company's reputation.

You and your neighbor are good friends, work at the same company, and drive to the office together each day. One day in conversation, your friend mentions that he has been getting information from a friend at a different company that guides the way he invests company money. You recognize this as insider trading. When he mentions this you don't say anything, but later decide that something must be done. Which of the following is your best response?

Talk with him about his misconduct first and make sure he reports it to his boss.

An employee feels anxious that the ethics assist line will be used to generate false reporting from a spiteful coworker.

True

Loyalty to a manager tends to lead to unethical behavior.

True

In which situation should you consider whistleblowing?

You can prove your company has been releasing harmful chemicals into the community's groundwater. You reported this to all of your superiors, but no action has been taken.

One of the advantages of having chaplains available to employees is that a chaplain ______.

helps employees outside of regular working hours

Companies attempt to detect fraud in various ways, but survey data shows that fraud is most often detected through ______.

tips

Since smaller companies often cannot afford to hire multiple ethical professionals, a chaplain often serves as the sole HR ethical representative.

False

The qui tam provision of the False Claims Act allows companies to sue the U.S. government on behalf of individuals who have been defrauded by the government.

False

As a manager of a small company, you are facing a budget shortage and are trying to trim expenses. You currently contract a third party to run an ethics assist line for your company. However, you know your employees are comfortable speaking with them, so you decide to cancel your subscription to the third party ethics assist line and instead route calls through your personal cell phone. What is true about this change?

This may cause employees to feel uncomfortable using the ethics assist line.