Business in Society - Final

Which of the following is the most comprehensive? a. Code of ethics b. Code of values c. Code of conduct d. Statement of principles e. Statement of values

Code of ethics

Integrative Culture

Combines high concern for both people and performance.

Apathetic Culture

Has minimal concern for either people or performance

Value-based ethics culture

Relies on an explicit mission statement that defines a firm's core values.

Caring Culture

Shows high concern for people but minimal one for performance

Compliance Culture

Uses laws and regulations to create codes of ethics

Which of the following is a common mistake made in implementing an ethics program? a. Developing materials that are not understandable by the average employee b. Adapting a firm's ethics program to its international operations c. Setting specific program objectives d. Having one person take responsibility for implementing the ethics program e. Allowing lower-level employees to make ethical decisions

a. Developing materials that are not understandable by the average employee

Which of the following statements about training is false? a. It can dictate personal ethics on the job so employees no longer have differences in beliefs. b. It can educate employees about the firm's policies and expectations, as well as about relevant laws and regulations and general social standards. c. It can empower employees to ask tough questions and make ethical decisions. d. It can make employees aware of available resources, support systems, and designated personnel who can assist them with ethical and legal advice. e. It can affect the influence of organizational culture, coworkers and superiors, and

a. It can dictate personal ethics on the job so employees no longer have differences in beliefs

Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct? a. Conduct orientation b. Compliance orientation c. Coercive orientation d. Values orientation e. Obedience orientation

b. Compliance orientation

Which of the following statements about corporate culture is false? a. Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in an organization. b. Corporate culture refers to the patterns and rules that govern the behavior of an organization and its employees, particularly the shared values, beliefs, and customs. c. The values and ethical beliefs that actually guide the firm's employees tend not to be the same ones that management states as defining the firm's culture. d. Failure to monitor or manage an organization's culture may foster unethical behavior. e. The culture of an organization may be explicitly stated or unspoken.

c. The values and ethical beliefs that actually guide the firm's employees tend not to be the same ones that management states as defining the firm's culture.

The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent. a. 20-30-30-20 b. 10-30-40-20 c. 80-20 d. 10-40-40-10 e. 40-10-10-40

d. 10-40-40-10

What is one of the responsibilities of an ethics officer? a. Conducting employee performance evaluations b. Answering the ethics hotline c. Signing off on financial documents d. Monitoring and auditing ethical conduct e. Prosecuting illegal activities

d. Monitoring and auditing ethical conduct

Individuals, often from the same department, who have a common interest but not an explicit organizational structure are known as a. committees b. teams c. work groups d. informal groups e. quality circles

d. informal groups.

When measuring the effectiveness of an ethics program, it is important to a. establish rules for compliance. b. adopt a compliance orientation. c. hire an ethics officer. d. perform a financial audit. e. get input from employees.

e. get input from employees.

The ability to influence the behavior of others by offering them something desirable is best described as a. coercive power. b. referent power. c. expert power. d. legitimate power. e. reward power.

e. reward Power

Two useful indicators for assessing employee issues are a. employee satisfaction and productivity. b. staff turnover and stock price. c. staff turnover and honesty. d. employee satisfaction and attendance. e. staff turnover and employee satisfaction.

e. staff turnover and employee satisfaction.

Because ethics and social audits are _____, there are few standards that a company can apply with regard to reporting frequency, disclosure requirements, and remedial actions that it should take in response to results. a. not necessary b. mandatory c. required by law d. expensive e. voluntary

e. voluntary

Motivation is defined as a. personal ambition without regard to the impact on others. b. individual goals. c. a force within the individual that focuses his or her behavior on achieving a goal. d. a desire to be finished with a project. e. the reason why high achieving employees strive for high job performance.

force within the individual that focuses his or her behavior on achieving a goal

In the "bad apple-bad barrel" analogy, the bad barrel refers to a. indifferent management. b. a corrupt society. c. an unethical corporate culture. d. a criminal organization. e. unethical employees.

c. an unethical corporate culture.

To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except a. a question-and-answer section. b. additional resources for guidance. c. lengthy legal documents. d. checklists, illustrations, and cartoons where appropriate. e. feedback from employees across the firm.

c. lengthy legal documents.

Which of the following is not a step in the ethics auditing process? a. Collect and analyze relevant information. b. Secure commitment of top executives and directors. c. Review organizational mission, goals, values and policies, and define ethical priorities. d. Report the results to the U.S. Sentencing Commission. e. Verify the results.

d. Report the results to the U.S. Sentencing Commission.

Check My Work Which of the following is true about a compliance orientation? a. A compliance orientation can aid in organizational ethical decision-making. b. A compliance orientation is superior to a values orientation. c. The most successful companies have adopted a compliance orientation. d. The use of legal terms, statutes, and contracts teach employees the rules and penalties for noncompliance. e. Employees are more likely to accept a compliance orienation over a values orientation.

d. The use of legal terms, statutes, and contracts teach employees the rules and penalties for noncompliance.

Which of the following statements about codes of conduct is false? a. They help employees determine what behaviors are acceptable. b. They should be specific enough to be reasonably capable of preventing misconduct. c. They provide rules and guidelines for employees to follow. d. They address every ethical issue that an employee may face. e. They are formal statements of what an organization expects of its employees.

d. They address every ethical issue that an employee may face.

For an ethics and compliance program to properly function, a. it is not necessary to set measurable program objectives. b. the company must wait until after misconduct occurs to develop a means of preventing it. c. employees must be monitored using any means necessary. d. consistent enforcement and disciplinary action are essential. e. the same program should be used in all countries of operation, regardless of cultural differences

d. consistent enforcement and disciplinary action are essential.

Independent verification of the ethics audit is important because it lends the report a. objectivity and formality. b. credibility and formality. c. credibility and civility. d. credibility and objectivity. e. objectivity and civility.

d. credibility and objectivity

Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as a. compliance. b. opportunity. c. differential equations. d. misconduct. e. differential association

e. differential association.

Better Business Bureau's Torch Award Criteria for Management Practices

A mission describing the business's commitment to exceptional standards Examples of sound environmental policies

Expert power usually stems from

A superior's credibility with his or her subordinates.

Industry Reputation

Awards and recognition from within the industry Media coverage reflecting the business as trustworthy

Which of the Following statements about power is true? A. People generally use only one base of power to effect change in others. B. The five bases of power are mutually exclusive. C. Power can be used to motivate individuals ethically or unethically. D. Expert power exists when one person takes actions that will lead that person and others to achieve their mutual objectives. E. The use of power is unethical.

C. Power can be used to motivate individuals ethically or unethically

Better Business Bureau's Torch Award Criteria for Community/Investors Stakeholder Relations

Complimentary feedback from customers Examples of pro bono work

An advantage of the decentralized organization is that A. each worker knows his or her job and what is specifically expected as well as how to carry out designated tasks. B. the focus is on formal rules, policies, and procedures backed up with elaborate control systems. C. there is minimal upward communication. D. it is adaptable and can quickly respond to external change. E. there is a high level of bureaucracy.

D. it is adaptable and can quickly respond to external change.

Better Business Bureau's Torch Award Criteria for Communications and Marketing Practices

Descriptions of methods to ensure sales are truthful and accurate Sales training policies to ensure transactions are tranparent

Exacting Culture

Displays little concern for people, but high concern for performance.

When considering centralized and decentralized structures, which one tends to be more ethical and why? A. Decentralized because they give employees more decision making authority B. Centralized because it is easier to uproot unethical activities C. Both types of organizational structure are equally ethical D. Decentralized because of the clear rules that dictate appropriate behavior in business E. Centralized because of the strict formalization and implementation of ethics policies and procedures

E. Centralized because of the strict formalization and implementation of ethics policies and procedures

During which step of the auditing process should a firm examine all documents that make explicit commitments to ethical, legal, or social responsibility? a. Review organizational mission, goals, values, and policies. b. Secure commitment of top managers and directors. c. Verify the results. d. Define the scope of the audit process. e. Establish a committee to oversee the audit.

a. Review organizational mission, goals, values, and policies.

Which of the following statements about ethics audits is false? a. The terms ethics audits and social audits can be used interchangeably. b. They provide an opportunity to measure conformity to the firm's desired ethical standards. c. They can be a component of social audits. d. They are systematic evaluations of an organization's ethics program and performance to determine whether it is effective. e. They provide an objective method for demonstrating a company's commitment to improving strategic planning, including its compliance with legal and ethical standards and social responsibility.

a. The terms ethics audits and social audits can be used interchangeably

What is one of the goals of ethics training? a. To identify key risk areas employees will face. b. To completely eliminate any chances of misconduct. c. To train employees on how to address every ethical situation they encounter. d. To comply with legal requirements. e. To make the company look good to stakeholders.

a. To identify key risk areas employees will face.

What is a major problem organizations tend to have when implementing organizational ethics program? a. Top managers don't integrate codes, values, and standards into their firms' corporate cultures. b. Wall Street investors demand that companies take illegal action to increase profits. c. They fail to adopt formal corporate codes of ethics. d. The government's requirements for ethics programs are too ambiguous. e. Financial problems make ethical conduct impossible to pursue.

a. Top managers don't integrate codes, values, and standards into their firms' corporate cultures.

Which of the following is a statement that attests that the financial statements made in an audit are fairly stated, without limitations? a. Unqualified opinion b. Qualified opinion c. Disclaimer of opinion d. Favorable opinion

a. Unqualified opinion

The _____ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control. a. coercive b. affiliative c. coaching d. democratic e. pacesetting

a. coercive

A(n) _____ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) _____ orientation strives to develop shared standards. a. compliance; values b. obedience; values c. values; compliance d. values; obedience e. legal; values

a. compliance; values

An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is a. decentralized. b. unethical. c. centralized. d. ethical. e. tall.

a. decentralized

Marcus is the best performing development director his non-profit organization has ever had. He possesses countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have _____ over new development department staff. a. expert power b. coercive power c. democratic power d. referent power e. group power

a. expert power

Top managers tend to focus on _____ because their jobs and personal identity are often connected to quarterly returns. a. financial performance b. employee satisfaction c. the board of directors' recommendations d. ethical performance e. adherence to the code of conduct

a. financial performance

Management's sense of the organization's culture a. may be quite different from employees' perceptions. b. is more accurate than employees' perceptions. c. is usually easily adopted by employees. d. is readily evident to employees. e. is always different from employees' perceptions.

a. may be quite different from employees' perceptions.

Ethics audits can help companies identify potential _____ so they can implement plans to eliminate or reduce them before they reach crisis dimensions. a. risks and liabilities b. technological glitches c. productivity issues d. market opportunities e. competitive advantages

a. risks and liabilities

Organizations can become "bad barrels" because ​ a. the pressure to succeed creates opportunities that reward unethical decisions. b. they do not allow employees to pursue their own individual values. c. management does not understand complex ethical decisions. d. employees do not have the expertise needed to make ethical decisions. e. the majority of their employees are unethical.

a. the pressure to succeed creates opportunities that reward unethical decisions.

What should be the first step in the auditing process? a. Collect and analyze data b. Review organizational mission, goals, values, and policies c. Secure the commitment of top executives and directors d. Establish a committee to oversee the audit e. Define the scope of the audit

c. Secure the commitment of top executives and directors

A strong ethics program includes all of the following elements except a. a written code of conduct or ethics. b. formal ethics training. c. a clause promising good stock market performance. d. auditing, monitoring, enforcement, and revision of standards. e. high-level personnel to oversee the program.

c. a clause promising good stock market performance.

What should be the final step in the ethics auditing process? a. Secure the commitment of top managers and directors b. Report the findings c. Define the scope of the audit d. Collect and analyze data e. Verify the results

b. Report the findings

__________ is a management system that focuses on all of the elements that contribute to organizational performance and success. a. Six Sigma b. The Balanced Scorecard c. The Global Reporting Initiative d. Process controls e. The triple bottom line

b. The Balanced Scorecard

_____ is an independent assessment of the quality, accuracy, and completeness of a company's social or ethics report. a. Publication b. Verification c. Auditing d. Validation

b. Verification

Any attempt to verify outcomes and to compare them with standards can be considered a(n) _____ activity, although many smaller firms do not use this word. a. informal b. auditing c. formal d. ethical e. accounting

b. auditing

A _____ generates an ethical program that creates order by requiring that employees identify with and commit to specific required conduct using legal terms and statutes. a. values orientation b. compliance orientation c. code of ethics d. code of conduct e. statement of values

b. compliance orientation

The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is usually the a. president. b. ethics officer. c. immediate supervisor. d. Chairman of the board. e. CEO.

b. ethics officer.

During the data-collection phase of the audit, the primary objective is to generate a variety of opinions about how the company is perceived and whether it is a. meeting profit projections. b. fulfilling stakeholders' expectations. c. fulfilling employee benefits commitments. d. bringing in new customers. e. meeting earnings projections.

b. fulfilling stakeholders' expectations.

The word _____ implies a balanced organization that makes ethical financial decisions and also is ethical in more subjective matters of corporate culture. a. corporate culture b. integrity c. financial management d. transparency e. compliance

b. integrity

In order for whistle-blowing to be effective, a. employees must wish ill on the organization for which they work. b. it requires that the individual have adequate knowledge of wrongdoing that could damage society. c. lawmakers must make an effort to force employees to discuss details about the misconduct. d. the individual must have indisputable proof of guilt. e. it must occur at a very large multinational corporation.

b. it requires that the individual have adequate knowledge of wrongdoing that could damage society.

With regard to ethics, training and communication initiatives should reflect a. the organization's size. b. the unique characteristics of an organization. c. the organization's stock performance. d. the structure of the board of directors. e. the self-interest of the CEO.

b. the unique characteristics of an organization.

In the long run, a(n) ______ orientation may be better for companies, perhaps because it increases employees' awareness of ethics issues at work. a. individual b. values c. obedience d. compliance e. code

b. values

While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a firm's performance in terms of a. financial performance. b. ethical misconduct. c. environmental performance. d. ethical and legal conduct. e. customer satisfaction.

d. ethical and legal conduct.

Because a corporation can be considered a moral agent, it is therefore a. required to adopt moral philosophies. b. obligated to perform philanthropic responsibilities. c. required to have an ethics officer. d. responsible to society for its actions. e. willing to act ethically.

d. responsible to society for its actions.

In the absence of ethics programs, employees are likely to make decisions based on a. their educational backgrounds. b. how they and their family members behave at home. c. whatever they can get away with. d. their observations of how their coworkers and superiors behave. e. what they did at their previous organizations.

d. their observations of how their coworkers and superiors behave.

Which of the following compares standards with actual behavior?​ a. ​Formal controls b. ​Ethics audits c. ​Process controls d. ​Output controls e. ​Shared values

d. ​Output controls

Which of the following is not a main goal of successful ethics training programs? a. Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma that they do not know how to resolve. b. Allow a mechanism for employees to voice their concerns that is anonymous, but allows for the provision of feedback to key questions. c. Identify key risk areas that employees will face. d. Align employee conduct with organizational reputation and branding. e. Allow employees to solve ethical issues using their best judgment.

e. Allow employees to solve ethical issues using their best

Which of the following is an advantage of a values-based ethics program over a compliance-based one? a. Diverse employees no longer have differing values. b. Unlike values-based programs, compliance-based programs cannot prevent misconduct. c. A values orientation uses legal terms, statutes, and contracts that teach employees the rules and penalties for noncompliance. d. It requires employees to identify with and commit to specific required conduct. e. Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency.

e. Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency.

Which of the following cultures combines high levels of concern for people and performance? a. Caring culture b. Cooperative culture c. Exacting culture d. Apathetic culture e. Integrative culture

e. Integrative culture

When The Gap posts the results of its ethics audit on its website, it is engaged in which of the following steps of the ethics auditing process? a. Verify the results b. Define the scope of the audit c. Collect and analyze relevant information d. Submit the results to the U.S. Sentencing Commission e. Report the results

e. Report the results

Which of the following is not a phase of escalation during an ethical disaster? a. The firm's discovery of the misconduct b. The firm's response to the misconduct c. The decision to act unethically d. Ethical issue recognition e. The firm's decision to conduct an ethics audit

e. The firm's decision to conduct an ethics audit

Which of the following has a significant impact on the success of an ethics program? a. Legal constraints b. The size of the company c. A statement of values d. The types of ethical decisions e. The quality of communication

e. The quality of communication