Ethics Ch.8 Quiz

1) an employee

Who is typically the most informed person about a company's abuses? 1) an employee 2) a customer 3) a supplier 4) a government auditor

3) the ethics and compliance officer

According to KPMG's ethics defense model, what is the "second line of defense" for ensuring ethical and legal compliance? 1) business managers 2) internal audits 3) the ethics and compliance officer 4) operations managers

1) contacting someone outside the organization about potential or actual nontrivial misconduct inside the organization

How does the text define "whistleblowing"? 1) contacting someone outside the organization about potential or actual nontrivial misconduct inside the organization 2) contacting an ethics assist line about an ethics issue to avoid going through internal organizational channels 3) contacting federal or state governmental authorities about an ethics violation 4) using either government or media sources to effect ethical change within a private organization

3) their employees to be able to call that chaplain anytime, day or night

If a company requests the contracted services of a chaplain from Marketplace Chaplains and Corporate Chaplains of America, then that company can expect ______. 1) matters discussed with that chaplain to be reported to company management 2) their employees to receive Christian-based counseling 3) their employees to be able to call that chaplain anytime, day or night 4) regular counseling workshops held at the company offices

1) done by a U.S. citizen living within the U.S

In order to satisfy a requirement for a whistleblower to report through the Dodd-Frank Act, the reporting must be ______. 1) done by a U.S. citizen living within the U.S. 2) about an SEC violation that has already occurred 3) voluntary 4) anonymous

1) It increases whistleblower involvement by strengthening protections for whistleblowers reporting under Dodd-Frank

In what way does the Sarbanes-Oxley Act of 2002 strengthen the effects of the Dodd-Frank Act of 2010? 1) It increases whistleblower involvement by strengthening protections for whistleblowers reporting under Dodd-Frank. 2) It increases the severity of the penalties against companies charged with fraud under Dodd-Frank. 3) It widens the scope and definition of fraud that can be reported by whistleblowers. 4) It allowed companies to fire whistleblowers only when giving financial compensation far beyond a typical severance payment.

3) having everyone's trust

Of the following, which is the most important characteristic or skill for an ECO to possess? 1) having control over internal reporting systems 2) having complete authority over managers 3) having everyone's trust 4) being a long-term employee of the company

2) Employees are likely to feel more comfortable using it

What advantage does a contracted third-party ethics assist line have over one administered by a company's internal HR department? 1) It will generally provide better, more targeted advice. 2) Employees are likely to feel more comfortable using it. 3) It allows direct reporting to the EEOC. 4) Employees can raise a wider range of issues through it.

2) freedom from retaliation

What benefit does having an anonymous reporting system confer that a simple reporting system beyond the chain of command may not? 1) a greater commitment to loyalty 2) freedom from retaliation 3) an ability to sidestep a direct supervisor 4) the ability to report on coworkers

2) A manager keeps the door open for any concerns but closes it when an employee comes in to maintain privacy

Which of the following scenarios is a good example of the proper implementation of a manager's open-door policy? 1) A manager keeps the door closed to maintain efficiency but makes the rounds with employees regularly to ask if there are any problems. 2) A manager keeps the door open for any concerns but closes it when an employee comes in to maintain privacy. 3) A manager keeps the door open even when a person comes in to discuss a concern to make sure there is nothing hidden within a department. 4) A manager keeps the door closed but encourages employees to be open and honest with each other.

2) Employees are more likely to report issues of high moral intensity

Which of the following is TRUE of how employees respond to ethical issues and moral dilemmas? 1) The higher an employee is in the hierarchy, the more morally compromised the employee is likely to be. 2) Employees are more likely to report issues of high moral intensity. 3) Employees who lack moral courage will report if the right reporting systems are in place. 4) The higher an employee is in the hierarchy, the less likely the employee is to report misconduct.

1) to gather multiple perspectives from people involved in each issue

Which of the following is best for the performance and longevity of an ECO? 1) to gather multiple perspectives from people involved in each issue 2) to be perceived as the top ethics police officer 3) to provide a uniform, standard solution to each issue 4) to try to bend the organization's culture to a new norm

3) from disgruntled employees toward an image as people providing a public service

How has the public perception of whistleblowers changed over time? 1) from relatively harmless tattletales to individuals who can do real damage to a company 2) from disgruntled employees toward an image as misguided social warriors 3) from disgruntled employees toward an image as people providing a public service 4) from public servants to greedy opportunists (as cash settlements to whistleblowers has risen)

3) the employee's manager or higher-level managers

Most retaliation against the whistleblower for whistleblowing is initiated by ______. 1) leaders in the broader industry in which the employee works 2) the company's HR department 3) the employee's manager or higher-level managers 4) the employee's coworkers

4) Make clear to employees that false reporting through the assist line will be disciplined

A manager at a mid-size company announces the addition of a third-party contracted ethics assist line for employees. But after the announcement, several employees come to him to express concerns that the new line will encourage employees to settle scores by making false accusations. What should the manager do? 1) Offer them statistics from other companies about the good that an assist line can provide. 2) Give employees a strict list of topics that are acceptable for use with the assist line. 3) Have employees vet issues through the manager first before calling the line. 4) Make clear to employees that false reporting through the assist line will be disciplined.

3) It could be a quicker and less upsetting resolution process

A new employee at a mid-size corporation believes she has suffered two incidents in which a specific manager has treated her in a discriminatory way based on race. She could file a complaint directly with the EEOC, but she could also raise the issue with the company's ombudsperson. Why might she choose the latter? 1) It is more likely to win her financial damages. 2) It is more likely to bring about change in the organization. 3) It could be a quicker and less upsetting resolution process. 4) It is more likely to come to the attention of executive leadership.

1) whether managers took or would take corrective action

According to ERC research, what is the primary factor that determines whether employees report or do not report misconduct? 1) whether managers took or would take corrective action 2) level of expected retaliation 3) the presence of an ethics reporting system 4) the company's public image

4) Cami has not yet tried to communicate her concerns to anyone inside the company

Cami has noted that her industrial processing company is dumping toxic chemicals into a nearby river but hiding the action through bookkeeping tricks. She has ample evidence of the behavior and is ready to make her first move by calling a government whistleblower hotline. But when she consults an attorney, she is advised not to make the call yet. What did the attorney likely tell her? 1) Whistleblowing should be limited to financial services fraud. 2) Whistleblowing should not be pursued in this case because Cami is likely to lose her job. 3) Cami has not yet demonstrated that the behavior is causing direct harm to people. 4) Cami has not yet tried to communicate her concerns to anyone inside the company.

4) Karen's manager would be approachable, as would a minimum of several other individuals within the organization

Karen is a low-level employee in a big corporation who has witnessed an ethics violation. In an ideal situation, which of the following would happen? 1) Karen would try to be a team player and cooperate with coworkers to improve productivity. 2) Karen's manager would be approachable, and the company would not need other individuals for ethics reporting. 3) Karen would feel comfortable reaching out to a government whistleblower program. 4) Karen's manager would be approachable, as would a minimum of several other individuals within the organization.

4) her employees' voluntary reporting

Karen is a newly promoted manager of a large department at her company. She is worried about what ethical problems may or may not be happening there. On who or what will she primarily rely for information about ethics problems in her department? 1) her HR department liaison 2) her own careful monitoring of employee behavior 3) ethics issue metrics set up by previous managers 4) her employees' voluntary reporting

4) use the assist line for sensitive information

Managers should approach the existence of a company ethics assist line by encouraging employees to ______. 1) use the assist line, but also to inform the manager of such use 2) deal with their own issue before calling the assist line 3) come to them first with concerns before calling the line 4) use the assist line for sensitive information

1) Ask the employee if there have been any challenges so far in living up to the company's code of ethics

Sasha, a manager of a small department in a major financial services firm, is having a one-on-one meeting with an employee who seems worried about the ethics challenges of working at the firm. What is the last substantial thing Sasha should bring up in the meeting before it concludes? 1) Ask the employee if there have been any challenges so far in living up to the company's code of ethics. 2) Ask the employee to offer names of employees who the employee suspects of being unethical. 3) Tell the employee not to worry and that all concerns will be addressed in time. 4) Tell the employee to consider how reporting on other employees might damage their careers.

3) habit formed from a lifetime of influences

Shana has just arrived at a new company as an entry-level employee; it is her first professional job out of college. What is likely to be the biggest influence on her likelihood of reporting a witnessed incidence of misconduct? 1) the nature of the profession 2) the company's reporting structure/policy 3) habit formed from a lifetime of influences 4) whether she has an external or internal locus of control

2) It allows sensitive ethical issues to be shared without dilution by the chain of command

What advantage does having an ethics and compliance officer grant over having only managers or the owner, even if they are very attentive, manage ethical performance? 1) It ensures no retaliation against the sharer of information. 2) It allows sensitive ethical issues to be shared without dilution by the chain of command. 3) It allows sensitive ethical issues to be shared without any sanctions being levied by the organization. 4) It exempts an organization from governmental sanctions over unethical behavior.

4) approachability

What characteristic is a manager likely to gain if he or she admits to employees their own mistakes with respect to ethics in the past? 1) confidence 2) authoritarianism 3) guilt 4) approachability

4) They help provide whistleblowers with financial compensation

What common purpose is served by the False Claims Act, Tax Relief and Health Care Act, and Dodd-Frank Act? 1) They encourage whistleblowers among employees specific to government institutions. 2) They reduce the need for whistleblowers to report on private organizations. 3) They help protect whistleblowers from retribution. 4) They help provide whistleblowers with financial compensation.

4) Both provide total anonymity for the whistleblower

What does the IRS's Whistleblower Reward Program have in common with the False Claims Act? 1) Both encourage whistleblowers to file suit against individuals as well as companies. 2) Both provide financial incentives to whistleblower citizens in the form of a percentage of money recovered. 3) Both provide financial incentives to whistleblower citizens in the form of standardized monetary rewards. 4) Both provide total anonymity for the whistleblower.

2) Billions have been recovered and millions paid out to whistleblowers

What effect has the Whistleblower Reward Program had? 1) Billions have been reported but only a few million recovered to legal challenges. 2) Billions have been recovered and millions paid out to whistleblowers. 3) The program is too new to assess effects, but early reporting suggests billions in possible taxes will be collected. 4) Whistleblowers have been largely reluctant to come forward due to issues concerning lack of anonymity.

2) They choose the "other" option.

What happens for a college student who calls an EthicsPoint hotline and their issue does not conform to one of the established four categories of wrongdoing? 1) They are referred to the college HR department. 2) They choose the "other" option. 3) They are asked to contact the EEOC. 4) They are assigned a counselor employed by the school.

2) the effects of low morale

What is a major unstated cost of unethical behavior within organizations? 1) the loss of valuable employees 2) the effects of low morale 3) the cost of employing lawyers to defend the organization 4) the costs of implementing new ethics reporting systems

3) Be proactive to engage and act on concerns when raised.

What is the best way for a manager to overcome a "nothing will get done" attitude among employers? 1) Offer examples of how other companies deal with ethical issues. 2) Promise employees that action will be taken. 3) Be proactive to engage and act on concerns when raised. 4) Hold annual workshops to discuss ethics.

1) Consult an attorney

What is the first step a whistleblower should take before choosing to report on a company's misdeeds? 1) Consult an attorney. 2) Secure financial savings. 3) Quit his or her position at the company. 4) Call an anonymous ethics reporting hotline.

1) either asking questions of the anonymous employee or beginning to deal with the issue

When a manager is notified through the EthicsPoint system, what is the typical next step for that manager? 1) either asking questions of the anonymous employee or beginning to deal with the issue 2) asking EthicsPoint to step in and handle the issue 3) asking for identification of the reporting employee 4) referring the issue up the chain of command

2) If the problem is important, it will take longer to be reported and resolved

When an employee comes to his manager, Samir, and says that he has a problem, Samir says, "Bring me solutions, not problems." In what unintended consequence is this likely to result? 1) A solution to the problem will appear quickly, but it may not be the optimal one. 2) If the problem is important, it will take longer to be reported and resolved. 3) The employee will go to the ethics manager for the company instead. 4) The employee will reach out to a government whistleblower system to talk about the issue.

4) It depends on the seriousness of the violation

When should a manager or company grant amnesty for an ethical violation? 1) If the employee was pressured into the violation, amnesty should be granted. 2) If the violation was part of company culture, amnesty is encouraged. 3) Amnesty should be granted for first offenses. 4) It depends on the seriousness of the violation.

4) a manager who has an open-door policy to discuss ethical concerns

Which of the following situations, if mutually exclusive, could we expect to provide the most benefit in terms of supporting ethical behavior and reporting in a corporate department? 1) a strong level of diversity among employees 2) a company that has a strong public reputation for ethical behavior 3) an ethics reporting system that allows anonymity 4) a manager who has an open-door policy to discuss ethical concerns

4) Companies could not make personal loans to executives or directors

Which of the following was a component of Sarbanes-Oxley designed to strengthen the ethical performance or behavior of American companies? 1) Every publicly traded company must have an ECO. 2) Companies can only hire third-party auditors. 3) Companies were required to have a code of ethics. 4) Companies could not make personal loans to executives or directors.

3) an ombudsperson assigned by the small business industry group

Who would typically handle the negotiation for a small business if dealing with an ethical violation that involves the federal government? 1) whoever the company has assigned as an ethical point person 2) the company's ombudsperson 3) an ombudsperson assigned by the small business industry group 4) the company's ECO

3) There is little point in filing suit if the company is unlikely to be able to pay back any of the money

Why might a citizen not want to file suit under the False Claims Act against a company that has committed major fraud against the federal government and is now in bankruptcy? 1) When in bankruptcy, company executives are free from prosecution for financial issues. 2) The company's failure in the marketplace is already under a law suit. 3) There is little point in filing suit if the company is unlikely to be able to pay back any of the money. 4) The False Claims Act specifically protects companies in bankruptcy from prosecution.

1) A whistleblower likely first tried to report an incident internally

Why would the ERC say that "whistleblowers" and "reporters" are the same thing? 1) A whistleblower likely first tried to report an incident internally. 2) They are both trying to report an ethics violation in different venues. 3) Generally, they are both low-level employees. 4) Generally, they are both people of high moral courage.