Business ethics | Chapter 8 quiz

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. a. True b. False

True

The FSGO utilizes a "carrot and stick" philosophy to encourage organizational compliance. What is the ultimate "stick" the FSGO uses? a. A written reprimand b. A stern warning c. Being fined or put on probation d. Being forced to disband as an organization e. Nothing happens

Being fined or put on probation

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. a. True b. False

False

What did the Sarbanes-Oxley Act put more pressure on ethics officers to monitor? a. Human resources b. Environmental issues c. Financial reporting d. Discrimination e. Export restrictions

Financial reporting

A common mistake that U.S.-based multinational firms make when developing an ethics and compliance program for international offices is: a. setting realistic and measurable goals. b. developing programs that fully address the needs of employees. c. transferring their "American" programs to the firm's international operations. d. upper management taking ownership of the program. e. developing an ethics program that only consists of lectures.

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

Which of the following is NOT a responsibility of an ethics officer? a. Coordinating the ethical compliance program with top management, the board of directors, and senior management b. Developing, revising, and disseminating a code of ethics c. Developing effective communication of ethical standards d. Establishing audit and control systems to determine the effectiveness of the program e. Developing and implementing marketing strategy

Developing and implementing marketing strategy

Which of the following statements best describes the primary implication of "bad apple-bad barrel" theory? a. Organizations can influence ethical behavior by hiring people with high ethical standards and developing an ethical corporate culture. b. People with a higher expectation of punishment behave more ethically. c. People who have high cognitive moral development and are principled tend to act more ethically than others. d. People are either ethical or unethical, depending on personal moral development, and there is little that organizations can do to influence ethical behavior. e. Corporations often influence otherwise ethical people to behave unethically.

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

To be effective, ethics training first must start with a foundation that includes a. a code of ethics. b. a financial audit. c. a regulatory lobbyist. d. a total quality management program. e. a diversity agenda.

a code of ethics

All of the following are responsibilities of an ethics officer EXCEPT: a. making government laws related to business ethics b. assessing the needs and risks that an organization-wide ethics program must address c. developing and distributing a code of conduct or code of ethics d. conducting training programs for employees e. monitoring and auditing ethical conduct

making government laws related to business ethics

Fostering ethical decisions within an organization requires eliminating unethical persons and a. joining the Better Business Bureau. b. writing a vision statement. c. improving the firm's ethical standards. d. removing all potential "bad apples" from the company. e. adopting a compliance orientation.

improving the firm's ethical standards

Keys to successful ethics training include all but: a. helping employees identify the ethical dimensions of a business decision. b. giving employees a means to address ethical issues. c. leaving clear opportunities for employees to engage in unethical behaviors. d. helping employees understand the ambiguity inherent in ethical situations. e. providing direction for finding managers or others who can assist in ethical conflict resolution.

leaving clear opportunities for employees to engage in unethical behaviors.

All of the following are responsibilities of ethics officers EXCEPT: a. assessing the needs and risks that an organization-wide ethics program must cover b. developing and distributing a code of conduct or ethics c. conducting training programs for employees d. making sure that the company is in compliance with government regulations e. making ethical decisions on behalf of managers and the board of directors so that they do not have to think about ethical issues

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

What does a values orientation strive to develop? a. Compliance b. Moral philosophies c. Personal character d. Shared values e. Codes of ethics

Shared values

Which of the following scenarios is unethical but not illegal? a. Your manager asks you to book some sales revenue from the next quarter into this quarter's sales report to help reach target sales figures. You agree to do so. b. You are fired from your company, but before leaving to take a position with another company, you take a confidential list of client names and telephone numbers that you compiled for your former employer. c. 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. d. You want to skip work to go to a baseball game, but you need a doctor's excuse, so you make up some symptoms so that your insurance company pays for the doctor's visit. e. You receive a loan from your parents to make the down payment on your first home, but when describing the source of the down payment on the mortgage application, you characterize it as a gift.

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.

Codes of conduct and codes of ethics a. are formal statements that describe what an organization expects of its employees. b. become necessary only after a company has been in legal trouble. c. are designed for top executives and managers, not regular employees. d. rarely become an effective component of the ethics and compliance program. e. always require the creation of an anonymous hotline.

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