Chapter 4 business ethic

What are the categories an offender is placed into based on Federal Sentencing Guidelines for Organizations?

1. A criminal history category. 2. An offense severity category.

What are the positive objectives of an effective monitoring process for a firm's corporate culture?

1. Assessing whether the positive results of an ethics program are being measured and reported. 2. Assessing the effectiveness with which the ethical values of senior management are being disseminated. 3. Assessing the ability of a firm's compensation structure to reward ethical behavior. 4. Assessing the allocation of resources.

Identify the ways in which a firm can determine employees' perceptions of change in its corporate culture.

1. By analyzing data surrounding its help line. 2. By taking surveys of employees' job satisfaction. 3. By requesting an external organization to audit it.

How do ethical business leaders serve as role models?

1. By supporting others who maintain their own standards. 2. By fulfilling promises and commitments. 3. By adhering to their own standards.

Identify the ways in which companies reduce negative influences on their reporting mechanisms.

1. Giving employees enough time to make responsible decisions. 2. Communicating their expectations and values to all stakeholders.

What are the necessary characteristics of an ethical, effective leader?

1. He or she should pursue ethical objectives. 2. He or she should use ethical methods.

What are the criticisms of Geert Hofstede's work?

1. His studies are based on a limited number of countries. 2. He focused his work on a single period of time. 3. His view is biased by his Western perspective.

Rank the steps involved in establishing a code of conduct in an organization in the order of their implementation.

1. Identifying the purpose of the organization as well as what it stands for. 2. Articulating a clear vision for the organization's direction. 3. Identifying clear steps as to how the code will be implemented. 4. Fostering a belief among members of the organization that the requirements of the code are achievable.

What are the positive effects of a strong ethical culture in a company?

1. It helps prevent stakeholder damage. 2. It enhances bottom-line sustainability.

What are the characteristics of an organization that effectively supports internal whistle-blowing?

1. It protects the rights of the person or persons being accused. 2. It permits anonymity or confidentiality.

Which of the following are Geert Hofstede's categories of dispositions.

1. Masculinity vs. femininity 2. Indulgent vs. restrained 3. Time and order orientation

Identify Geert Hofstede's dimensions of dispositions.

1. Power distance. b 2. Uncertainty avoidance. 3. Individualism vs. collectivism.

According to the Ethics Resource Center (ERC), what are the effects of a strong ethical environment?

1. Reduced pressure on employees. 2. Increased reporting 3. Decreased retaliation 4. Few instances of misconduct

What are the signs of an ethically challenged firm?

1. The firm fails to treat its stakeholders in a professional manner. 2. The firm fails to manage its finances in a responsible manner.

What is the most dangerous situation that can arise because of a failure in a company's reporting system?

A manager chooses to ignore a risk because its potential for harm is not immediately evident.

How do leaders create a shared culture of ethical decision making in an organization?

By engaging in visible ethical action.

Match the types of corporate cultures with their features.

Compliance-based Cultures - They have audit offices and legal counsel that monitor and enforce compliance with internal regulations and with the law. Values-based Cultures - They support a decision-making process that is based on certain principles in order to shape employee decisions.

Identify a true statement about ethical leadership in an organization.

Corporate leaders are often responsible for the unethical actions of their predecessors.

_________________ __________________ are individuals within and organization who are charged with managerial oversight of ethical compliance and enforcement within the organization.

Ethics officers

True or false: The stability that a corporate culture provides is always a benefit.

False.

What are the methods used by effective leaders to achieve their goals that make them unethical leaders?

Intimidation Coercion Harassment Threats

When establishing a code of conduct, what does an organization do immediately after articulating its vision for its direction?

It determines processes and procedures it would need to establish.

What is an impact of a company's culture on employees?

It develops both ethical and unethical habits in employees.

What is a feature of an ethical environment?

It empowers an employee to act in an ethically responsible manner.

What is the approach of a values-based culture to a situation where a rule does not apply?

It permits a firm to rely on its employees' personal integrity.

Identify a contribution of the United States Sentencing Commission.

It tackled the issue of arbitrary punishments.

Who among the following is most likely to significantly change the corporate culture of Junk Food Online?

Piper, the Chief Executive Officer of Junk Food Online.

Which of the following is an Independent agency in the United States Judiciary that was created in 1984 to regulate sentencing policy in the federal court system?

The United States Sentencing Commission.

What are the elements of a corporate culture that are perceived by employees?

The competitive environment Hierarchical structure Incentives Methods of problem solving Individual autonomy

What is a consequence of stakeholders in an organization perceiving a leader to be involved in unethical behavior?

They are likely to assume that such behavior is acceptable and expected.

Categorize the characteristics of traditional compliance-based cultures and progressive values-based cultures.

Traditional compliance-based cultures - Audit focus, Transaction-based, Policies and procedures focus, Financial account focus. Progressive values-based cultures - Business focus, Process-based, Risk management focus, Customer focus.

Match the types of cultures with their goals.

Traditional compliance-oriented cultures - Satisfying regulatory requirements, enhancing accountability mechanisms, and reducing risks of indictment and litigation. Inclusive and progressive corporate cultures - Hiring and retaining desirable employees, managing reputation and brand, improving employees' work environment, and helping unify the operations of a company worldwide.

Categorize the features of traditional corporate cultures and progressive corporate cultures.

Traditional corporate cultures - Policy adherence, Multiyear audit coverage, Compliance objective, Budgeted cost center. Progressive corporate cultures - Continual risk-assessment coverage, Accountability for performance improvement results, Risk identification, process improvement objective, Change facilitator.

True or false: Federal Sentencing Guidelines for Organizations require organizations to assess areas of risk for ethics and compliance.

True.

What determines the effectiveness of the process of integrating an ethical culture in an organization?

Whether incentives promote ethical decision making.

_________________-________________ is one of the classic issues in business ethics that refers to situations where an employee discloses unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing.

Whistle-blowing

One of the requirements of the Sarbanes-Oxley Act was that....

all public companies create a code of conduct for top executives.

One of the features of codes of conduct is that they........

are often created by professional associations and voluntarily followed.

A way in which firms can measure the effect of measures taken to change their corporate culture is by........

assessing shifts in employees' perceptions of their working conditions.

One of the measures firms have taken to create a more positive notion of whistle-blowing is to.......

call their reporting mechanisms "speak-up" programs.

A(n) __________________ _________________ ________________ is a set of behavioral guidelines and expectations that govern all members of a business firm.

code of conduct

In order for an ethical culture to become an essential element of corporate decision making and corporate life, _________________________ must be incorporated into the habits, attitudes, and vocabulary of an organization.

communication of the code of conduct

The primary responsibility for the cultivation of patterns of behavior that support ethical decision making in the workplace lies with __________________.

corporate leaders.

An organization's culture serves as an obstacle by preventing the organization from.......

creatively responding to challenges.

Every organization has a(n) _______________ fashioned by a shared pattern of beliefs, expectations, and meanings that influences and guides the thinking and behaviors of the members of that organization.

culture

A challenge that reporting systems in organizations face is that these systems.......

fail to make the values of an organization clear.

The Sarbanes-Oxley Act directed the United States Sentencing Commission to.........

have severe deterrents in sentencing recommendations for fraud relating to accounting and securities.

Communication is one of the most decisive elements of the process of integrating an ethical culture throughout a firm because.......

it provides clarity of process, priorities, and purpose.

An organization's ______________ ______________ or corporate credo serves as a formal summary statement that describes the goals, values, and institutional aim of the organization.

mission statement

In 2004, the United States Sentencing Commission updated its Federal Sentencing Guidelines for Organizations so that they required firms to...........

promote a corporate culture that supports ethical behavior and compliance with the law.

In 2005, U.S. Supreme Court held in U.S. v. Booker that the Federal Sentencing Guidelines for Organizations violated......

the Sixth Amendment right to a jury trial.

The evaluation of ethical behavior during an employee's performance review provides information on........

the effectiveness with which an organization has integrated ethical culture.