Acting Ethically and Socially Responsible

From the list below, select all of the labels that describe diversity policies, such as affirmative action. a. Ethical b. Legal c. Illegal d. Unethical

a. Ethical b. Legal

At an accounting firm, the top managers often charge their personal meals and trips to the company credit card. Later, several employees are indicted in a scheme to falsify the financial records of one of the company's clients. Based on this scenario, how did the organization fail to foster high ethical standards? a. The company did not provide regular ethics training. b. Recruiters did not stress the company's commitment to ethics when hiring. c. The company did not reward ethical behavior. d. Managers did not set an ethical example for employees.

d. Managers did not set an ethical example for employees.

Who in an organization is most responsible for setting an ethical example? a. Top management and executives b. New employees c. Middle management d. Secretaries and administrative staff

a. Top management and executives

Which characteristic is shared by both compliance-based and integrity-based ethical codes? a. They rely on a system of strict monitoring and control. b. They rely on a system of shared accountability among employees. c. They help employees understand which behaviors are encouraged and which are discouraged. d. They focus on promoting shared values rather than punishing violations.

c. They help employees understand which behaviors are encouraged and which are discouraged.

Which type of ethical code attempts to prevent criminal misconduct by increasing control and by punishing violators? a. Incentive-based b. Person-based c. Integrity-based d. Compliance-based

d. compliance-based

What is a law? a. An informal guideline for completing a standard business transaction b. A formal and binding rule of conduct that is enforced by a controlling authority c. A suggested standard of conduct intended to make interactions more pleasant d. A system of beliefs regarding right and wrong that guide behavior

b. A formal and binding rule of conduct that is enforced by a controlling authority

Which of these behaviors is considered illegal? a. A toy company uses cheap components that break easily. b. A manufacturer uses a harmful chemical that has been banned in the United States. c. A pharmaceutical company charges high prices for its drugs even though generic versions are much cheaper. d. A clothing manufacturer sources its materials from overseas companies with questionable labor practices.

b. A manufacturer uses a harmful chemical that has been banned in the United States.

What do we call the combined ethics, values, attitudes, and behaviors that are typical among a society or group? a. Federal laws b. Cultural norms c. Social mandates d. Personal choices

b. Cultural norms

Which of these labels applies to a company's decision to avoid paying taxes in the United States by storing revenues in offshore banks? a. Illegal and unethical b. Legal but unethical c. Illegal but ethical d. Legal and ethical

b. Legal but Unethical

What are ethics? a. Protocols that outline how certain business transactions must be completed b. Principles of right and wrong that influence behavior c. Formal rules of behavior enforced by the state d. Personal responsibilities outlined in an employment contract

b. Principles of right and wrong that influence behavior

What is the primary motivation for ethical behavior under a compliance-based ethical code? a. Incentives or rewards b. The threat of punishment c. Spiritual beliefs d. A culture of fairness

b. The threat of punishment

Which characteristic is shared by both compliance-based and integrity-based ethical codes? a. They rely on a system of strict monitoring and control. b. They help employees understand which behaviors are encouraged and which are discouraged. c. They rely on a system of shared accountability among employees. d. They focus on promoting shared values rather than punishing violations.

b. They help employees understand which behaviors are encouraged and which are discouraged.

From the list below, select all of the factors that make a given behavior an issue of ethics. a. Whether the behavior conforms to formal rules recognized as binding b. Whether the behavior conforms to cultural beliefs regarding right and wrong c. Whether the behavior reflects how most people would like to be treated d. Whether the behavior is enforced by a controlling authority such as police officers or the court system

b. Whether the behavior conforms to cultural beliefs regarding right and wrong c. Whether the behavior reflects how most people would like to be treated

The company does not reward ethical behavior.

An employee reports being overpaid in her quarterly sales bonus but is not acknowledged for her honesty. The next time, she decides not to report the mistake.

What are the deeply held beliefs and attitudes that serve as the underpinnings for ethical systems? a. Laws b. Values c. Traditions d. Mandates

b. Values

Managers do not set an ethical example

Because executives looked the other way when suppliers used banned substances in their products, employees feel justified in dumping pollutants down the drain.

The company does not set a code of ethics and provide ethical training.

Employees are confused about which behaviors are acceptable in the office, leading to complaints about harassment and offensive jokes.

The company does not create an ethical hiring culture.

Recruiters look for "ruthless moneymakers" in their sales personnel, and soon customers begin complaining about dishonest sales pitches.

What is the earliest point at which workers should be screened for strong personal values and a commitment to ethical behavior? a. Before they are hired b. When they retire or leave for a different job c. During their first week on the job d. When they are up for a promotion

a. Before they are hired

From the list below, select all of the features used to promote ethical behavior under an integrity-based code of ethics. a. Honesty b. Diversity c. Punishment d. Shared accountability

a. Honesty b. Diversity d. Shared accountability

From the list below, select all of the features commonly found in a code of ethics. a. List of prohibited behaviors b. Guidance on how to treat customers, suppliers, and competitors c. Praise for employees who exemplify ethical behavior d. An offer of a reward for reporting ethical violations

a. List of prohibited behaviors b. Guidance on how to treat customers, suppliers, and competitors c. Praise for employees who exemplify ethical behavior

From the list below, select all of the steps managers should take to establish an ethical climate. a. Set an ethical example. b. Let employees determine their own ethical systems. c. Reward ethical behavior. d. Create an ethical hiring culture.

a. Set an ethical example c. Reward ethical behavior. d. Create an ethical hiring culture.

Which of these actions would make it more difficult for a manger to establish an ethical climate? a. Waiting until a job candidate is hired to emphasize the company's ethical culture b. Having regular training sessions on ethical behavior c. Behaving in ways that match the company's ethical code d. Punishing employees who behave unethically

a. Waiting until a job candidate is hired to emphasize the company's ethical culture

From the list below, select all of the factors that make a given behavior an issue of legality. a. Whether the majority of people in society consider the behavior desirable or advisable b. Whether the behavior contradicts a rule formally recognized as binding c. Whether the behavior is enforced by controlling authorities such as police officers or the court system d. Whether the behavior is based on cultural beliefs regarding right and wrong

b. Whether the behavior contradicts a rule formally recognized as binding c. Whether the behavior is enforced by controlling authorities such as police officers or the court system

What is a code of ethics? a. A panel of employees tasked with judging whether a given behavior is ethical b. A system that allows people to provide anonymous reports of unethical behavior c. A set of ethical standards to help guide an organization's actions d. A document detailing an organization's history of ethical behaviors

c. A set of ethical standards to help guide an organization's actions

What is the primary difference between compliance-based ethical codes and integrity-based ethical codes? a. Compliance-based codes are common in small companies, whereas integrity-based codes are more common among small companies and start-ups. b. Compliance-based codes are bottom-up systems established by employees, whereas integrity-based codes are top-down systems imposed by management. c. Compliance-based codes are viewed as laws that should not be violated, whereas integrity-based codes are viewed as values that should be upheld. d. Compliance-based codes are enforced via the honor system, whereas integrity-based codes are enforced via strict monitoring and the threat of punishment.

c. Compliance-based codes are viewed as laws that should not be violated, whereas integrity-based codes are viewed as values that should be upheld.

What do we call the principles of right and wrong that help instruct how we deal with and treat each other? a. Contracts b. Mandates c. Ethics d. Laws

c. Ethics

Which type of ethical code stresses a culture of fair play, honesty, and diversity as a way of promoting ethical behavior? a. Needs-based b. Compliance-based c. Integrity-based d. Incentive-based

c. Integrity-based

Shaking hands when meeting someone in the United States is an example of a(n) ______. a. informal law b. faux pas c. social mediator d. cultural norms

d. cultural norms

What do we call the formal rules of conduct that are enforced by controlling authorities such as police officers and the court system? a. Morals b. Values c. Ethics d. Laws

d. laws