Ethics Chapter 6-10 Questions

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. providing direction for finding managers or others who can assist in ethical conflict resolution d. leaving clear opportunities for employees to engage in unethical behaviors e. helping employees understand the ambiguity inherent in ethical situations

.d. leaving clear opportunities for employees to engage in unethical behaviors

(T/F) A moral philosophy is a general set of values by which different people live.

False

(T/F) Companies that experience ethical misconduct disasters almost never recover from them.

False

(T/F) Laissez-faire capitalism occurs when various profit centers within corporations are unaware of the consequences of their actions on the firm as a whole.

False

(T/F) Unfortunately, in today's competitive world, a company's history and unwritten rules are not part of its corporate culture.

False

(T/F) Corporate culture is exhibited through the behavioral patterns, concepts, documents such as codes of ethics, and rituals that emerge in an organization.

True

(T/F) Employee turnover is a useful indicator for assessing employee issues.

True

(T/F) 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.

True

(T/F) 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.

True

(T/F) The concept of a moral philosophy is inexact. For that reason, moral philosophies must be assessed on a continuum rather than as static entities.

True

(T/F) WalMart's annual revenues are greater than the GDPs of most of the countries in the world.

True

A management system that focuses on all the elements that contribute to organizational performance and success, including financial, customer, market, and internal processes is defined as the _____. a. Balanced Scorecard b. GRI c. Six Sigma d. OCEG e. Triple Bottom Line

_____. a. Balanced Scorecard

Which of the following is the international coordinator of regulatory policy for the world and makes short-term loans to member countries with deficits and provides foreign currencies to its members? a. International Monetary Fund b. United Nations c. Multinational corporation d. World Trade Organization e. World Bank

a. International Monetary Fund

This famous statement, "Act as if the maxim of the action were to become by will a universal law of nature," is called _______. a. Kant's Categorical Imperative b. Leninism c. Friedman's Categorical Imperative d. Mao's Categorical Imperative e. Marxism

a. Kant's Categorical Imperative

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

a. a code of ethics

As defined within the chapter, global common values _____. a. are all derived from the major religions b. are unrelated to most laws either directly or indirectly c. have a subset of desirable common values such as integrity, family and egoism d. are not all derived from the major religions of Hinduism, Buddhism, Confucianism, Judaism, Islam, and Christianity e. have a subset of undesirable common values such as pride, fidelity, and egoism

a. are all derived from the major religions

Companies such as Coca-Cola, Hewlett-Packard, and Walmart support a globally based resource system called __________, which tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools. a. business for social responsibility b. social democracy c. socialism d. global common values e. global business

a. business for social responsibility

If a company determines its ethical performance has been less than satisfactory, _____. a. centralization may reduce the opportunities lower-level managers and employees have to make unethical decisions b. decentralization may reduce the opportunities lower-level managers and employees have to make unethical decisions c. decentralization may increase the opportunities higher-level managers and employees have to make unethical decisions d. centralizing important decisions may be a better way to attack ethical problems so lower-level managers who are familiar with the local business environment and local culture and values can make more decisions e. executives can then focus on initiatives for improving the corporate culture and infusing more ethical values throughout the firm by rewarding positive behavior and sanctioning negative behavior.

a. centralization may reduce the opportunities lower-level managers and employees have to make unethical decisions

A _____ organizational structure is best for organizations in which processes are routine and the division of labor is very well-defined. These organizations have a lot of formal rules, policies, and procedures. a. centralized b. flat c. hierarchical d. tall e. decentralized

a. centralized

When morality varies from one culture to another and that "right" and "wrong" are defined differently is referred to as _____. a. cultural relativism b. Hofstede's cultural dimension c. self-reference criterion d. uncertainty avoidance e. individualism/collectivism

a. cultural relativism

The Federal Sentencing Guidelines for Organizations (FSGO) _____. a. encourages companies to assess their key risk areas and customize a compliance program to address these risks and satisfy key effectiveness criteria b. encourages but does not require the firm's board, top management, and high-level personnel exercise reasonable oversight of standards and procedures c. encourages companies to assess their key risk areas and use a standard compliance program to address these risks and satisfy key effectiveness criteria d. discourages companies from assessing their key risk areas and customizing a compliance program to address these risks and satisfy key effectiveness criteria

a. encourages companies to assess their key risk areas and customize a compliance program to address these risks and satisfy key effectiveness criteria

What kind of power stems from a belief that a certain person has the right to exert power over others? a. legitimate power b. referent power c. expert power d. reward power e. coercive power

a. legitimate power

Both ethics auditing and financial auditing employ _____. a. objective reporting b. philanthropic perspectives c. the same federal legislation d. an ethics officer e. similar procedures to create an ethics program

a. objective reporting

Which of the following is based on the assumption that people are predictable and will seek to maximize the utility of their choices relative to their needs and wants? a. rational economics b. free market economics c. communism d. socialism e. behavioral economics

a. rational economics

What type of power is being used when one person perceives that his or her goals or objectives are similar to another's and the second person attempts to influence the first to take actions allowing both to achieve their objectives? a. referent b. legitimate c. corrosive d. expert e. reward

a. referent

What do values orientation strives to develop? a. shared values b. compliance c. moral philosophies d. personal character e. codes of ethics

a. shared values

According to Kohlberg's model of cognitive moral development, different individuals make different decisions in similar ethical situations because _______. a. they are in different stages of cognitive moral development b. they are influenced by different family values c. no one wants to be the same as others d. they have different personalities e. they are of different ages

a. they are in different stages of cognitive moral development

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

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

This philosophy defines right or acceptable actions as those that maximize total utility, or the greatest good for the greatest number of people _______. a. utilitarianism b. relativism c. egoism d. teleology e. deontology

a. utilitarianism

Which of the following is not part of the framework for an ethics audit? a. verify the results yourself or by a coworker b. collect and analyze relevant information in each designated subject matter area c. report the findings to the audit committee and, if approved, to managers and stakeholders d. secure the commitment of top managers and board of directors e. define the scope of the audit process, including subject matter areas important to the ethics audit

a. verify the results yourself or by a coworker

Which is NOT a characteristic of culture? a. Culture is formed over a relatively long period of time. b. Culture can be changed easily and quickly. c. Culture is relatively stable. d. Culture is shared among individuals belonging to a group or society. e. Elements of culture are unwritten.

b. Culture can be changed easily and quickly.

Which of the following best describes an ethics audit? a. It is required by the Securities and Exchange Commission. b. It is a major component of an ethics program. c. It is an important component of a financial audit. d. It is a requirement of implementing a values-based training program. e. It is part of the customer relationship management program.

b. It is a major component of an ethics program

The power inequality between superiors and subordinates is referred to as _____. a. cultural relativism b. self-reference criterion c. power distance dimension d. uncertainty avoidance e. individualism/collectivism

c. power distance dimension

_______ is right or acceptable behavior in terms of the consequences for the individual. a. Act deontology b. Rule deontology c. Utilitarianism d. Egoism e. Relativism

d. Egoism

Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties? a. Amnesty International b. Council on Economic Priorities Accreditation Agency c. Fair Labor Association d. Global Compact e. World Trade Organization

d. Global Compact

Of the following statements, which is correct? a. When companies charge high prices for products sold in foreign markets while selling the same products in their home markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping. b. Dumping is still legal under many international laws, even though it substantially reduces competition. c. When companies charge low prices for products sold in their home markets while selling the same products in foreign markets at high prices, the practice is known as dumping. d. When companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping. e. Dumping encourages competition and benefits workers in home countries.

d. When companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping.

The Better Business Bureau's International Torch Award for Marketplace Ethics may be useful to help what type of companies with their ethics audit? a. companies with more than 1,000 employees b. Fortune 500 companies c. companies accused of accounting fraud d. companies with fewer resources e. companies with ethics officers

d. companies with fewer resources

Which of the following utilizes a legalistic approach to ethics and uses laws and regulations to create its codes and requirements? a. integrative b. value-based ethics c. exacting d. compliance e. apathetic

d. compliance

What type of justice exists if employees are being open, honest, and truthful in their communications at work? a. civil b. procedural c. distributive d. interactional e. hedonistic

d. interactional

This philosophy evaluates ethicalness subjectively on the basis of individual and group experiences _______. a. deontology b. egoism c. utilitarianism d. relativism e. teleology

d. relativism

A values-based ethics culture _____. a. excludes Upper Management Board, but relies solely on the Board of Directors to add to general value statements by formulating specific value statements for its strategic business units (SBU) b. is based solely on the Office of Best Practices to help employees identify and deal with ethical issues c. is based solely on transparency to help employees identify and deal with ethical issues d. relies upon an explicit mission statement that defines the core values of the firm e. excludes the Board of Directors, but relies solely on Upper Management to add to general value statements by formulating specific value statements for its strategic business units (SBU)

d. relies upon an explicit mission statement that defines the core values of the firm

When various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole it is called _____. a. packaging b. the framing effect c. the Sullivan Principles d. risk compartmentalization e. global common values

d. risk compartmentalization

An ethics audit is a _____. a. systematic comparison of an organization's ethics program and/or performance with the Federal Sentencing Guidelines for Organizations b. systematic comparison of employee performance with the organization's ethical standards c. systematic evaluation of an organization's marketing program and/or performance to determine its effectiveness d. systematic evaluation of an organization's ethics program and/or performance to determine its effectiveness e. systematic evaluation of an organization's social responsibility program and/or performance to determine its effectiveness

d. systematic evaluation of an organization's ethics program and/or performance to determine its effectiveness

The types of moral philosophy discussed in the text include _______. a. teleology, self-interest, relativist perspective, virtue ethics, and career growth b. teleology, self-interest, relativist perspective, virtue ethics, and justice c. teleology, utility, relativist perspective, virtue ethics, and deontology d. teleology, deontology, relativist perspective, virtue ethics, and justice e. teleology, utility, relativist perspective, virtue ethics, and justice

d. teleology, deontology, relativist perspective, virtue ethics, and justice

How members of a society respond to uncertainty or ambiguity is referred to as _____. a. cultural relativism b. self-reference criterion c. Hofstede's cultural dimension d. uncertainty avoidance e. individualism/collectivism

d. uncertainty avoidance

Which of the following is a correct statement? a. According to the relativist perspective, definitions of ethical behavior are derived objectively. b. Interactional justice is based on the evaluation of outcomes or results of the business relationship. c. Distributive justice is based on the processes and activities that produce the best outcome or results. d. Procedural justice is based on an evaluation of the communication process used in the business relationship. e. A moral virtue represents an acquired disposition that is valued as a part of an individual's character.

e. A moral virtue represents an acquired disposition that is valued as a part of an individual's character.

Which of the following statements is FALSE concerning the concept of Differential Association? a. People learn ethical or unethical behavior while interacting with others who are part of their role-sets. b. The learning process is more likely to result in unethical behavior if the individual associates primarily with persons who behave unethically. c. Associating with others who are unethical, combined with the opportunity to act unethically, is a major influence on ethical decision making d. Differential association is the idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or belong to other intimate personal groups. e. Differential Association is not described in the decision-making framework of this book.

e. Differential Association is not described in the decision-making framework of this book

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

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

What is the definition of corporate culture? a. Values, norms, artifacts, and rituals b. Nationality or citizenship c. The way people speak, the types of food they eat, and other customs d. The organizational relationships that influence the ethical decision-making process e. The shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business

e. The shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business

Which of the following provides legally binding ground rules for international commerce and trade policy? a. Council on Economic Priorities b. Federal Trade Commission c. Omnibus Trade Commission d. Securities and Exchange Commission e. World Trade Organization

e. World Trade Organization

The strategic importance of ethics auditing includes all of the following EXCEPT _____. a. boosting profits and reducing risk b. improving stakeholder relationships c. providing a management tool for helping companies facilitate improvement d. assessment for reallocating resources e. avoidance of fines in case of an infraction

e. avoidance of fines in case of an infraction

Which is NOT a criticism of MNCs _____. a. exploitation of labor markets of host countries b. their size c. unfair competition d. their power e. exploitation of labor markets of home countries

e. exploitation of labor markets of home countries

Which of the following is NOT a characteristic of a centralized organization? a. clear-cut division of labor b. low flexibility c. low problem recognition d. many formal rules e. few and informal rules

e. few and informal rules

Formal controls _____. a. is not a significant influence on ethical behavior b. is not a significant influence on compliance systems c. cannot significantly affect ethical decision making d. creates a stakeholder orientation e. includes input controls such as proper selection of employees, effective ethics training, and strong structural systems (including communication systems)

e. includes input controls such as proper selection of employees, effective ethics training, and strong structural systems (including communication systems)

The process of assessing and reporting on a business's performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders is called a _____. a. process control b. formal control c. audit control d. global audit e. social audit

e. social audit

Which of the following items do NOT have a strong impact on whether an ethics program is successful? a. senior management's success in incorporating ethics into the organization b. local management's success in incorporating ethics into the organization c. the content of the code of ethics d. the frequency and quality of communication regarding the program e. the level of employee compensation program

e. the level of employee compensation

The unconscious reference to one's own cultural values, experiences, and knowledge is called _____. a. uncertainty avoidance b. cultural relativism c. power distance d. global common values e. the self-reference criterion

e. the self-reference criterion

A compliance culture _____. a. revolves around the ethical culture concept b. has a long-term focus on integrity c. teaches employees to navigate ethical gray areas d. has a long-term focus on values e. uses a legalistic approach to ethics

e. uses a legalistic approach to ethics

This philosophy assumes what is moral in a given situation is not only what conventional morality requires but also what the mature person with a "good" moral character deems appropriate _______. a. relativism b. justice c. deontology d. utilitarianism e. virtue ethic

e. virtue ethic

Which of the following is a means of measuring process variations that cause defects considered as unacceptable deviations from the mean or target? a. Accountability AA 1000 b. Global Reporting Initiative c. Six Sigma d. Balanced Scorecard e. triple bottom line

c. c. Six Sigma

The MOST important attribute for effective leadership is _____. a. handling crises calmly b. bringing out the best in others c. leading by example d. admitting mistakes e. team meetings

c. leading by example

Which of the following scenarios is unethical but not illegal? a. 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. b. 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. c. 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. d. 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. e. 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.

b. 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.

Teleology is a philosophy that states that _______. a. it is not possible to get too much of a good thing b. an act is morally right or acceptable if it produces a desired result c. people decide what is legal or illegal d. a relativist perspective will lead to career growth e. moral rightness or acceptability is defined in terms of consequences for the individual

b. an act is morally right or acceptable if it produces a desired result

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

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

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

b. being fined or put on probation

In which type of organization is decision making delegated as far down the chain of command as possible? a. flexible b. decentralized c. creative d. formalized e. centralized

b. decentralized

This philosophy focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences _______. a. egoism b. deontology c. teleology d. relativism e. utilitarianism

b. deontology

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 and implementing marketing strategy c. developing effective communication of ethical standards d. developing, revising, and disseminating a code of ethics e. establishing audit and control systems to determine the effectiveness of the program

b. developing and implementing marketing strategy

What did the Sarbanes-Oxley Act put more pressure on ethics officers to monitor? a. discrimination b. financial reporting c. environmental issues d. human resources e. export restrictions

b. financial reporting

What is one of the greatest organizational benefits of conducting an ethics audit? a. improved stock performance b. improved relationships with stakeholders who desire transparency c. greater employee productivity and efficiency d. lower prices on goods and services e. happier suppliers

b. improved relationships with stakeholders who desire transparency

A cultural audit _____. a. is exclusively conducted internally b. is an assessment of an organization's values c. is mandatory within U.S.-owned firms d. is an assessment of an organization's accounting requirements e. is exclusively conducted externally

b. is an assessment of an organization's values

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

b. making government laws related to business ethics

_____________ is the final stage of cognitive moral development, according to Lawrence Kohlberg. a. The stage of prior rights, social contract, or utility b. The stage of punishment and obedience c. The stage of universal ethical principles d. The stage of social system and conscience maintenance e. The stage of individual instrumental purpose and exchange

c. The stage of universal ethical principles

The measuring of social, financial, and environmental factors (or people, places, and planet) that recognizes business has a responsibility to positively influence a variety of stakeholders, including customers, employees, shareholders, community, and the natural environment is defined as _____. a. OCEG b. Six Sigma c. Triple Bottom Line d. GRI e. Balanced Scorecard

c. Triple Bottom