Chapter 5 quiz

Outside

A(n) _____________ board member is one who does not have any direct financial ties to the firm.

Ethical

A(n) _______________ leader is one who is focused on creating a positive ethical climate for the firm's employees

Transformational

A(n) _______________ leader is one who is focused on developing a long-term vision for the company and who uses a charismatic personality to communicate his or her vision to the employees.

United States

All of the following are countries that tolerate having their nationals give bribes in other countries and also allow the bribes to be written off as business expenses on the firm's tax statements except

Developing departmental production plans

All of the following are major issues that most boards of directors have in common except

False

An intervening board allows the CEO and the top management team to take all the major decisions.

Loss of private banking licenses in the United States

Charles Prince, as CEO of Citigroup, had to address a number of ethical issues. Which of the following is not one of them?

True

Corporate culture is based on norms and behavior patterns within any given organization.

Ethical judgment

During which of the following stages of the ethical life cycle does the evaluation of different options take place?

Risk/cultural assessment

During which of the following steps in the Deloitte & Touche five-step process to embed ethics and values within the culture of the firm does management ask its employees via surveys and interviews what their assessment of the firm's culture is?

The leader's criteria for allocation of rewards

Schein developed a set of enabling mechanisms to change culture. Which of the following is not a secondary articulation and reinforcement mechanism?

Public relations

Strebel suggests that there are 4 major roles for the board of directors. Which one is not a role he indicates?

1977

The U.S. Foreign Corrupt Practices Act that forbids firms from contributing to foreign political campaigns was passed into law in

Passive

The ____________ board is also called the "rubber stamp" board.

Certifying

The ____________ board provides the function of validating to shareholders that the CEO is doing what is expected of him or her and that management will make corrective adjustments when necessary.

Basic assumptions

The agreed starting point for decision making within a firm is called ______________.

False

The certifying board actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions.

Reflection

The ethical cycle is concluded by _______________.

Punishment

The principles of ethical power include all of the following except

Embezzlement

The taking of money illegally from a firm or other source is called ______________.

Corruption

Transparency International has developed an annual ranking of the level of __________in countries round the world.

True

When the CEO is also the chairman of the board, it is called CEO duality.

CEO duality

When the CEO is also the chairman of the board, it is called ____________.

Intervening board

Which board type becomes actively involved in all major decisions of the firm and meets frequently and focuses intensely on all issues on the agenda at the board meetings?

Where are we going?

Which is not a strategic ethical decision to build character?

Ignore employee development needs

Which is not one of the factors in creating a climate of integrity in a firm?

The morality of individual employees

Which of the following factors is not part of the identification of the moral problem?

Bribery

Which of the following is defined as the use of intimidation or power in return for a financial benefit?

Stockholders

___________ expect the firm to perform at maximum financial performance within an effective corporate governance level.

Conflicts of interest

____________ in boards occur when the board is composed of mainly inside members

Artifacts

_____________ are based on what groups within the firm learn about what is acceptable and not acceptable.

Corporate governance

______________ is the means through which firms ensure the needs of all their stakeholders are satisfied.

Strategic planning

______________ is the process in which future courses of action are developed to achieve the firm's short- and long-term goals.

Institutional shareholders

______________ should view themselves as active owners of the firm, not just investors.

Deontological

From a(n) _______________ perspective, it would be argued that CEO compensation is based on the rights of the individuals and the judgments made with a specific decision process instead of a focus on the decision choices.

True

Great leaders are stewards of the ethical commitment of the firm, and this commitment is transferred to the employees.

Development of an ongoing self-assessment of the compliance program

In the Deloitte & Touche five step process to embed ethics and values within the culture of a firm, the ________________ is the stage that gaps and ambiguities are removed.

Corporate scandal

In the Snyder model that develops a framework to address ethical crises, which of the following is not an internal normal factor?

Kantian

It can be argued that CEOs' high level of compensation can be justified based on _____________ ethics.

Mirror test

Peter Drucker developed the _____________,which involves the decision maker's ability to look at his or her reflection after the decision had been made and state that he or she had made the right choice.