BA 300 AUSTIN SDSU
5. The __________ reason for CSR offers managers a stronger basis for making decisions about which stakeholders and social responsibility issues should garner their attention and resources given the multitude of options available.
strategic
16. Ethical behavior can be influenced by: a) an individual's religion b) an organization's culture c) ethical training d) an individual's personality e) all of the above
E
8. _____, such as environmental damage, are costs to society that are produced by companies but not reflected in the company's cost structure.
Externalities
21. The Tailhook scandal represents an example of which of these? a) Management focusing too much on the ends rather than the means b) The ethical Pygmalion effect c) Social learning theory d) Employees ignoring management's clear message
C
22. ___________ have their own agenda and lack any company or professional loyalty. a) Deserters b) Misguided cannons c) Grenades d) Toxic ammo
C
13. According to the authors, all of these are factors that laid the groundwork for the disaster in the United States in 2008 EXCEPT: a) borrowing was expensive b) real estate became the investment of choice c) mortgage originators peddled "Liar Loans" d) banks securitized the poison and spread it around
A
17. Under the 2004 sentencing guidelines, the __________ are expected to oversee the compliance and ethics program while __________ is/are charged with ensuring its effectiveness within the company. a) board of directors; top management b) board of directors; the CEO c) CEO; general managers d) company's ethics officer; board of directors
A
19. All of the following about Ethics Officer is true EXCEPT: a) The ethics officer is typically a first-line to middle-level manager. b) The ethics officer typically reports directly to the CEO. c) The ethics officer can be hired from inside or outside of the firm. d) The ethics officer can also be called the "director of ethics" or "director of internal audit."
A
22. The ______ reason, why corporations should care about social responsibility, is based upon the recognition that business must use its power responsibly in society or risk losing it. Corporations exist as legal entities with certain advantages (such as limited liability) because society allows them to do so, and these corporate rights and advantages can be removed from firms that are perceived to be irresponsible. a) pragmatic b) economic c) ethical d) strategic
A
22. The ___________ approach to ethical decision making focuses on what decision an individual should make. a) prescriptive b) descriptive c) illustrative d) regulatory
A
22. Which of the following is true? a) Rewards set the tone for what's expected and rewarded in the long term. b) Employees need to be rewarded for engaging in specific ethical behaviors. c) Punishment is an inherently bad practice. d) Rewards are better to control short-run ethical behavior.
A
23. Tendency to attend to the information that endorses the decision we prefer. a) confirmation bias b) illusion of optimism c) illusion of control d) illusion of superiority
A
24. Parties who are affected by the business and its actions and who have an interest in what the business does and how it performs are called _______. a) stakeholders b) large customers c) community committees d) government parties
A
25. According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is considered to be of primary importance to organizations. a) economic b) ethical c) legal d) philanthropic
A
25. When communicating a code of conduct: a) Focus on values that should guide decision making. b) Provide the same code of conduct to all departments regardless of its length. c) Refrain from changing the code of conduct regularly. d) Fewer employees will read the code if it is short.
A
25. ___________ refers to the fairness of exchanges: "You did this for me and I'll do that for you." a) Reciprocity b) Equality c) Impartiality d) Shared resources
A
26. A person's emphasis on ethical principles being dependent on the situation rather than being applicable to all situations refers to which of these? a) Relativism b) Idealism c) Locus of control d) Machiavellianism
A
26. Which of the following is an example of a high power distance country? a) India b) United States c) Israel d) None of the above
A
27. The ___________ experiment demonstrated the power of legitimate authority. Teachers were unwilling to question the experimenter's authority for fear of personal embarrassment or upsetting the status quo.
A
23. Identify the three components that are used to define "fairness." a) reciprocity, equality, and impartiality b) reasonableness, equality, and sensitivity c) reciprocity, equity, and impartiality d) joint understanding, equality, and neutrality
C
28. When dealing with an individual from a different culture, a) Negotiators generally adapt their negotiation behavior to that of the negotiation partner. b) American negotiators are the most flexible to their negotiation partner's behavior. c) Canadian and Japanese negotiators are the least flexible to their negotiation partner's behavior. d) Negotiators generally do not adapt their negotiation behavior to that of the negotiation partner.
A
28. Which of the following is false? a) Lawrence Kohlberg developed the cognitive moral development theory by studying male adult behavior. b) The cognitive moral development theory focuses primarily on how people decide what course of action is morally right. c) Cognitive moral development is an individual difference that impacts the way people think about an ethical dilemma. d) Individuals can comprehend and use all stages of reasoning below their own.
A
28. _____________ is a type of sexual harassment wherein an individual believes that sexual favors are a requirement for advancement in the workplace. a) Quid pro quo b) Section 7 harassment c) Hostile work environment d) Power-relations
A
29. According to James Shaffer, an expert in communication and employee engagement, all of these are drivers of engagement EXCEPT: a) mission statement. b) involvement. c) information sharing. d) rewards and recognition.
A
29. Which of the following is true about collectivists? Collectivists tend to a) prefer mediation because it involves compromise. b) prefer adjudication because it is perceived to be fairer. c) prefer direct manifestations of conflict. d) avoid psychological warfare.
A
30. For the public, the top three factors in corporate reputation are : a. transparent and honest practices, trustworthiness, and high-quality products and services b. transparent and honest practices, community philanthropy, and high quality products and services c. trustworthiness, high-quality products, and a no-layoff policy d. trustworthiness, high-quality products, and a 90-day customer return policy
A
30. This driver of engagement, __________, refers to the fact that employees should understand the company's strategic direction and how their individual efforts play a role in the company's revenue-generating enterprise. a) line of sight b) involvement c) information sharing d) rewards and recognition
A
30. Which of the following is false? a) An effective approach to managing ethics has a compliance-only focus. b) Abstract value statements can appear hypocritical to employees. c) Strictly compliance-oriented programs are often viewed by employees with cynicism. d) With a compliance-only focus, employees believe anything goes as long as there isn't a rule against it.
A
31. ______ are symbolic figures who set standards of performance by modeling certain behaviors, and they can be the organization's formal leaders. a) Heroes b) First-line managers c) Large investors in an organization d) Hypocritical leader
A
33. ____________ assumes absolute truths that would require exactly the same standard and behavior in every culture. a) Ethical imperialism b) Ethical relativism c) Cultural imperialism d) Cultural relativism
A
34. Roger believes that his success at work is primarily the result of his own efforts and hard work. Roger can be characterized by: a) high internal locus of control b) high external locus of control c) Stage 2 moral reasoning d) Stage 4 moral reasoning
A
34. When an organization "cares" about multiple stakeholders, including employees, customers, and the broader community and public, it is said to have which of these? a) Benevolence climate b) Self-interest climate c) Rule-based climate d) Fairness climate
A
35. Which of the following is true? a) People's locus of control is relatively stable, but can change over time. b) People are born with a particular locus of control. c) People are either internal or external. Locus of control is not a continuum. d) People with high external locus of control believe their life is a product of their own efforts.
A
38. Which of the following is true? a) Cognitive biases are the result of trying to reduce uncertainty and simplify the world. b) Cognitive biases are an individual difference and do not affect all human beings in the same way. c) Business executives and students are generally reserved about their knowledge of the facts. d) People are generally good at thinking of the consequences of their decisions outside of their immediate family and friends.
A
A _______________ is any person or group with a stake in the issue at hand. a) stakeholder b) large customer c) community committee d) government party
A
17. Which of the following statements is true? a) "Bad apples" are just a few individuals who spoil it for the rest of us. b) Employees' good behavior can be spoiled by a "bad barrel." c) Ethics cannot be taught because individuals come into an organization already as a "bad apple." d) "Bad barrels" are caused by "bad apples" in an organization.
B
23. In the __________ perspective, social responsibility is seen as appropriate because it is "the right thing to do." a) pragmatic b) economic c) ethical d) strategic
C
21. Civil society refers to: a) Countries with a certain type of governance structure. b) Groups interested in business ethics (such as the media, not-for-profit organizations, academic institutions, and religious and political groups). c) Government agencies in foreign countries. d) Countries that share the same culture, customs, and norms.
B
27. ______ is a term frequently used to describe ethics initiatives that begin at the top of the organization and work their way down, level by level.
B
______ is probably the best-known consequentialist theory. a) Utilitarianism b) The disclosure rule c) Deontological d) Principle of value
A
Which of the following individuals is most likely to refuse to carry out a supervisor's order that she considers unethical? A person with a high internal locus of control and high ego strength. A person with a high external locus of control and high ego strength. A person with a high external locus of control and low ego strength. A person with a low internal locus of control and low ego strength.
A person with a high internal locus of control and high ego strength.
28. The "moral person" component of ethical leadership: a) Tells employees how the leader expects them to behave. b) Tells employees how the leader is likely to behave. c) Shows that ethics and values are an important part of the leader's message. d) Demonstrates a reputation for ethical leadership among employees.
B
. The ___________ approach to ethical decision making focuses on how people actually make ethical decisions. a) prescriptive b) descriptive c) illustrative d) regulatory
B
11. Which of these is Adam Smith's first book? a) Wealth of Nations b) The Theory of Moral Sentiments c) The Corporation d) The Moral Dimension
B
15. The Ethics Resource Center's 2011 National Business Ethics Survey found that only _____ percent of employees of for-profit enterprises report feeling pressured to compromise their ethical standards. a) 7 b) 13 c) 19 d) 23
B
21. In this book, the authors focus on _____________ factors because ____________: a) individual; these factors are the main determinant of unethical behavior b) organization; these factors can be directly controlled by managers c) individual; a few "bad apples" spoil it for the rest of us d) organization; these factors are particularly important in unambiguous situations
B
21. ___________ may have good ethical compasses, but they don't know their corporation's policies. Without guidance, ethics may not even be a consideration. a) Loose ammo b) Loose cannons c) Misguided cannons d) Grenades
B
22. According to a national opinion survey, identify the goal that employees did not rank in the top five? a) Honest company communications b) Good pay c) Respectful treatment d) Ethical corporate behavior
B
22. Which of the following is false? a) Organizations are affected by the expatriate manager's ability to adjust to the new setting. b) Organizations are not affected by the expatriate family's ability to adjust to the new setting. c) Foreign language proficiency is more important for non-English speakers in English-speaking countries. d) Cross-cultural training can help an expatriate manager better adjust to the new culture.
B
23. The U.S. Chamber of Commerce estimates that workplace theft costs U.S. businesses between $20 billion and $40 billion each year, and ______ are thought to be responsible for much of it. a) employees b) customers c) community members d) government agencies
B
23. Which of these is not a primary stakeholder? a) Owners b) Community c) Customers d) Employees
B
24. Group norms can cause an "everyone is doing it" mentality. This means: a) People are more likely to recognize issues as "ethical issues." b) Many individuals will go along with unethical behavior because of a strong need for peer acceptance. c) Managers cannot blame individual employees for unethical behavior. d) Employees are actively disengaged in groups.
B
24. Tendency to overestimate the likelihood of good future events. a) confirmation bias b) illusion of optimism c) illusion of control d) illusion of superiority
B
24. When communicating policies: a) It is important to use legalese to demonstrate the formality of the document. b) Eliminate the legalese and tell employees what the policy means. c) Policies should be alphabetized to communicate that all policies are important. d) Include policies from all departments so the manual is standardized.
B
24. ___________ defines themselves in terms of their group memberships and their contributions to the success of those groups. a) Individualists b) Collectivists c) High power distance d) Low power distance
B
25. In this example of a conflict of interest, ________ conducted a series of off-the-books partnerships that were used to hide the organization's debt and inflate its stock price. The partnerships were managed by the company's executives who stood to profit the most from the transactions. a) Merrill Lynch b) Enron c) Citicorp d) Adelphia
B
25. Weak organizational cultures are: a) desirable if an organization has many subcultures. b) desirable if an organization wants diversity of thought and action. c) desirable if an organization wants behavioral consistency. d) undesirable in all situations.
B
26. According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is a societal expectation that is not necessarily codified into law. a) economic b) ethical c) legal d) philanthropic
B
26. Employee with an attitude of "it's not my job" fits into which of these groups? a) Actively engaged employees b) Actively disengaged employees c) Not engaged employees d) Partially engaged employees
B
26. Which of the following is true? a) Discrimination is an intentional bias that affects behavior. b) Discrimination occurs whenever something other than qualifications affects how an employee is treated. c) Discrimination is prohibited under Title VII of the Civil Rights Act of 1964 against individuals who are under 40 years old against age discrimination. d) Discrimination is always overt and clear
B
26. Which of the following is true? a) Discrimination is an intentional bias that affects behavior. b) Discrimination occurs whenever something other than qualifications affects how an employee is treated. c) Discrimination is prohibited under Title VII of the Civil Rights Act of 1964 against individuals who are under 40 years old against age discrimination. d) Discrimination is always overt and clear.
B
27. According to cognitive moral development theory, individuals move to a higher reasoning stage:
B
27. According to cognitive moral development theory, individuals move to a higher reasoning stage: a) Every time they encounter a more difficult ethical dilemma. b) When there is a contradiction between his or her current moral reasoning stage and the next higher one. c) As they grow older. d) None of the above. An individual's level of moral reasoning does not change after he or she becomes an adult.
B
27. In this classic example of a company treating its employees responsibly, ____________ was the first company to offer company-paid vacations, stock ownership plans, employee suggestion program, and the guaranteed employment plan. This company has not laid off employees in the United States since 1948. a) McWane, Inc. b) Lincoln Electric c) Scott Paper Company d) Manville Corporation
B
27. The "psychic distance paradox" causes performance failures because: a) Negotiators who are working in a similar culture to their own perceive the two cultures as being significantly different. b) When doing business in cultures that are perceived to be similar, managers prepare less and do not realize the cultures are actually quite different. c) Expatriate managers are unable to connect with the local culture after moving from a similar culture. d) Managers do not understand the culture's behavior despite language proficiency.
B
27. Which of the following is false? a) Sexual harassment is any unwelcome sexually oriented behavior that makes someone feel uncomfortable. b) Sexual harassment is objective. c) Sexual harassment is determined from the point of view of a "reasonable" person regardless of the harasser's intentions. d) Sexual harassment generally involves issues of power and not romance.
B
28. Which of the following is false about employee engagement? a) Employee engagement is how committed employees are to their work. b) Actively disengaged employees have lower turnover and absenteeism. c) Actively disengaged employees cost the US economy billions each year. d) Engaged employees are more productive.
B
29. Organizations have many ethical obligations to their employees including a. right to privacy, right to a safe workplace, right to promotional opportunities b. right to privacy, right to a safe workplace, right to freedom of speech c. right to a safe workplace, right to freedom of speech, right to promotional opportunities d. right to a safe workplace, right to freedom of speech, right to three weeks vacation e. right to fair treatment, right of privacy, right to c-level opportunities if they earned their MBA
B
29. The _________ approach to formal corporate ethics initiatives focuses on meeting required behavior norms or obeying the letter of the law. a) rules b) compliance c) principles d) values
B
30. According to the Executive Ethical Leadership Reputation Matrix, ___________ is an executive characterized as a strong "moral person" and a strong "moral manager." a) Unethical leader b) Ethical leader c) Ethically neutral leader d) Hypocritical leader
B
30. At which stage of Kohlberg's Cognitive Moral Development Model, the emphasis is still on rules and laws because these represent the recognized social contract, but this stage thinker is willing to question the law and to consider changing the law for socially useful purposes? a) Stage 3 b) Stage 5 c) Stage 2 d) Stage 4
B
30. Typical Codes of Conduct cover conduct described below. In the aftermath of Bhopal, the chemical industry wishing to demonstrate responsible corporate citizenship has added which additional behaviors set out below. a. Legal compliance b. Continuous improvement, communication with external stakeholders and training of suppliers on the standards c. Community awareness and emergency response d. Pollution prevention e. Safe distribution of chemicals in transit f. Employee health and safety g. Safe handling of chemicals from manufacture through disposal
B
30. Which of the following is legal according to the Foreign Corrupt Practices Act (FCPA) passed in 1977? a) Payments to high ranking government officials b) Grease payments to lower-level government officials c) Bribes to political parties d) Kickbacks to win overseas contracts
B
30. Which of the following is most likely an appropriate "gift" to accept from a vendor? a) A discount on personal items purchased from the vendor b) Dinner for you and your wife at Applebee's c) Four tickets to the Super Bowl d) A cash gift of $1,400
B
31. Most adults are at the ____________ level of cognitive moral development and their action is ____________. a) Conventional; based on avoidance of punishment. b) Conventional; based on what others think, say, and do. c) Postconventional; based on the best outcome for society. d) Postconventional; based on their religion or guiding principles.
B
32. "When in Rome, do as Romans do" is an example of: a) Ethical imperialism b) Ethical relativism c) Cultural imperialism d) Corporate relativism
B
32. Kathleen Reardon encourages us to think about courage at work as "calculated risk taking." She recommends that you do all of the following EXCEPT:
B
32. Kathleen Reardon encourages us to think about courage at work as "calculated risk taking." She recommends that you do all of the following EXCEPT: a) Ask yourself about your intentions. b) Ignore power and influence. c) Weigh the risks and benefits of action. d) Think about timing.
B
33. Guidelines on "How to Blow the Whistle" suggest all of these EXCEPT: a) Approach your immediate manager first if you can (your manager isn't involved in the problem). b) Avoid the issue with your family. c) Take it to the next level. d) Consider going outside your chain of command.
B
33. Sally attributes her success at work to luck. Sally can be characterized by: a) high internal locus of control b) high external locus of control c) Stage 2 moral reasoning d) Stage 4 moral reasoning
B
35. Under which of these climates little attention is given to the social consequences of one's actions? a) Benevolence climate b) Self-interest climate c) Rule-based climate d) Fairness climate
B
A ________ focuses on doing what is "right" (based on moral principles or values such as honesty), whereas a _________ focuses on doing what will maximize societal welfare. a) utilitarian; virtue follower b) deontologist; consequentialist c) virtue follower; utilitarian d) consequentialist; deontologist
B
A major challenge of _____ approaches is deciding which duty, obligation, right, or principle takes precedence because, as we said earlier, ethical dilemmas often pit these against each other. a) utilitarian b) deontological c) teleological d) consequentialist
B
18. _________ students may need more ethics training because research has found that they rank lower in moral reasoning than other students. a) Philosophy b) Political science c) Business d) Medicine
C
20. According to the authors, ethical behavior is defined as: a) a set of moral principles or values that guide an individual b) rules of behavior set by the Federal government c) principles, norms, and standards agreed upon by society d) none of the above
C
The prescriptive approach is to ____________ as the descriptive approach is to _____________. a) psychology; philosophy b) philosophy; psychology c) would; does d) none of the above
B
21. Tendency to underestimate risks because of the belief that we are in charge of what happens. a) confirmation bias b) illusion of optimism c) illusion of control d) illusion of superiority
C
Which of these is the first step in the sound ethical decision making in business? a) Define the ethical issues b) Gather the facts c) Identify the affected parties d) Check your gut
B
Identify two of the ways identified in the video segments that your superior in a business setting can influence the degree of your ethical behavior in business: By increasing your salary based on merit; by punishing unethical behavior. By setting high or low expectations of your ethical behavior; by contributing to the overall organizational ethical norm. By assigning you to a low-performing team of fellow employees; by micromanaging your work to indicate a lack of trust. By routinely accepting your hiring recommendations; by routinely including you in high-level operational decision.
By setting high or low expectations of your ethical behavior; by contributing to the overall organizational ethical norm.
14. According to the 2012 Edelman Trust Barometer, only _____ percent of Americans surveyed trust banks to be ethical—a _____-point drop since 2008 a) 60; 20 b) 20; 40 c) 35; 34 d) 15; 28
C
15. The US Sentencing Guidelines use a "carrot and stick" approach to managing corporate crime. What is meant by the use of "carrot" and "stick"? a) The carrot dangles at the end of the stick as an incentive for organizations to continue to behave ethically. b) The carrot refers to the guidelines as "food for thought" and the stick refers to the punishment if the guidelines are not followed. c) The carrot refers to incentives in the guidelines to behave ethically and the stick refers to the punishment if the guidelines are not followed. d) None of the above.
C
18. Which of the following is true? a) Fines applied by the US Sentencing Commission have decreased on average since 1990. b) Only the presence of a code of ethics in the organization is necessary to meet the US Sentencing Commission's idea of an effective compliance program. c) The US Sentencing Commission allows prosecutors to assess the quality of an organization's compliance program in order to determine appropriate penalties. d) The 1987 sentencing guidelines mandated incarceration for only the worst felony offenders.
C
23. Which of the following is false? a) A mission statement describes "how we do business." b) Mission statements should be short and memorable. c) Mission statements should be written by outsiders who are unbiasedC d) For some companies, mission statements are a mainstay of the corporate culture.
C
24. The idea that consumers have the right to safety, right to be heard, right to choose, and right to be informed came from ____________ in ________. a) Theodore Roosevelt; 1930. b) The Food and Drug Act; 1906. c) John F. Kennedy; 1962. d) George W. Bush; 2004.
C
24. When something is divided between two people according to the worth and inputs of the two individuals, it is said to be ___________ and represents one component of "fairness." a) reasonable b) impartial c) equitable d) unbiased
C
25. The __________ experiment demonstrated how normal students accepted and acted on their randomly assigned role of prisoner or guard. a) Milgram b) Manville c) Zimbardo d) My Lai
C
25. ____________ reflects acceptance of inequality and respect for social status or class boundaries. a) Individualism b) Collectivism c) High power distance d) Low power distance
C
26. In a classic example of failing to protect its employees, ___________ knew asbestos caused cancer as early as 1930. However, the company lied to its employees and used several tactics to cover-up the product's effects. a) Johnson & Johnson b) A.H. Robbins c) Manville Corporation d) McWane, Inc.
C
26. Which of the following is false? a) People enter organizations in a state of "role readiness." b) Roles reduce a person's sense of individuality. c) Managers do not have roles as much as their subordinates do. d) Conflicting role expectations can cause increased incidences of lying.
C
26. Your friend, Jamira, has been selected to create a new ethics training program at work. What advice should you give Jamira? a) Ensure that all employees receive the same training content. b) Focus on new employees only; the other employees already know this stuff. c) Provide separate training depending on the needs of different groups of employees. d) Bring in outside consultants to conduct the training.
C
27. Sleewalking represents characteristic of which of these groups? a) Actively engaged employees b) Actively disengaged employees c) Not engaged employees d) Partially engaged employees
C
27. Why did the US Sentencing Commission begin to focus on the ethical culture of the organization in 2004? a) Researchers had just recently introduced the idea of an "ethical culture" in 2002. b) More and more consultants were discussing "ethical culture" in their programs. c) Prior to the change, organizations used formal programs as "window dressing". d) None of the above
C
28. In a 2012 survey, _____ were in a dead heat as the least trusted institutions in the U.S., and public confidence in them could be measured in single digits. a) lawyers and accountants b) CEOs and Board of directors c) Wall Street and Congress d) White House and Congress
C
28. The Zimbardo experiment provides insight into ___________ just as the Milgram experiment provides insight into ____________. a) My Lai massacre; Abu Ghraib prison scandal b) Watergate scandal; My Lai massacre c) Abu Ghraib prison scandal; McDonald's case d) My Lai massacre; Watergate scandal
C
29. At what stage of Kohlberg's Cognitive Moral Development Model, what is right is judged in terms of a "you scratch my back, I'll scratch yours" reciprocal relationship? a) Stage 3 b) Stage 5 c) Stage 2 d) Stage 4
C
29. Groupthink occurs when: a) A group is working together in a cohesive, flowing manner for peak performance. b) Group members know each other so well that they are able to anticipate each other's ideas. c) Group members conform to the group's decision and are unwilling to express disagreement. d) A group cannot make a decision because members are unwilling to compromise.
C
29. ____________ is a type of sexual harassment wherein a worker is made to feel uncomfortable because of unwelcome actions relating to sexuality. a) Quid pro quo b) Section 7 harassment c) Hostile work environment d) Power-relations
C
32. "The way we do things around here" addresses an organization's a) heroes. b) rituals. c) norms. d) myths.
C
32. As a manager of ABC Corporation, you are in a tough situation. You must send an employee to work with your new client in Europe and Sam is clearly the most qualified candidate. However, ABC Corporation is located in an area where several people of Sam's race have been violently attacked. You must choose to send Sam or Tonya. What should you do? a) Automatically send Tonya to Europe without telling Sam he was considered. b) Automatically send Sam to Europe because he is clearly the most qualified. c) Ask Sam if he wants to go to Europe and discuss the situation. d) Assign Sam to a new task and send the Tonya to Europe.
C
34. Which of the following is true? a) If you find out that your manager is behaving unethically, you should go directly to the CEO of the company before talking with anyone else. b) Issues that involve employee or customer rights are not serious enough to consider "blowing the whistle." c) Under the False Claims Act, you can receive 15 to 30 percent of whatever damages the federal government recovers if you blow the whistle on government fraud. d) Most whistle-blowing cases are not resolved until they are reported outside of the company.
C
35. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission (SEC) will pay _____ percent of the amount the government recovers from financial fraud if the whistleblower provides original information leading to a recovery of more than a million dollars. a) 10 to 30 b) 40 to 50 c) 5 to 8 d) 50 to 75
C
36. One of the higher performing employees in your group has recently had family troubles. These personal issues caused him to be less flexible with his work schedule. For example, he has come in late some mornings and missed several late afternoon meetings. However, he continues to be productive when he is at work. As his manager, what should you do? a) Reprimand the employee and put him on notice immediately. b) Ignore the situation because he is generally a high performer and the situation is temporary. c) Institute flexible work hours for all employees in your group and arrange meetings when everyone can be available. d) At the next group meeting, make an example out of him and his unethical behavior to deter other employees' misbehavior.
C
36. Those with higher __________ are more likely to avoid pressure to violate social norms because _____________. a) internal locus of control; they typically act at the postconventional level of moral reasoning. b) external locus of control; they believe in luck. c) internal locus of control; they believe they are in charge of their own fate. d) external locus of control; they typically act at the postconventionl level of moral reasoning.
C
36. Which of the following is false? a) Any attempt to change an organization's ethics must consider the entire cultural system. b) A cultural system includes both formal and informal systems. c) An effective culture change may take as long as 1 to 2 years. d) New rules and values must be reinforced via training programs and reward systems.
C
37. Because of a family emergency, John was unable to complete a report for his boss. Instead, he asks a coworker to finish it for him and in the morning, John tells his boss that he did the report. Is there anything wrong with John's action? a) No, because John's coworker only finished what John had started. b) No, because John had a family emergency and his boss don't need the details. The report is done. c) Yes, because John told a lie to his boss and put his reputation on the line. d) Yes, because John is indebted to his coworker now.
C
32. Which of the following is false? a) Moral reasoning can be increased through training. b) A more-principled individual is less likely to cheat. c) When an organization's leader is characterized by high moral development, the entire ethical climate of the organization is stronger. d) Employee satisfaction and commitment are not related to the leader's moral development.
D
Identify the three components that are used to define "fairness." a) reciprocity, equality, and impartiality b) reasonableness, equality, and sensitivity c) reciprocity, equity, and impartiality d) joint understanding, equality, and neutrality
C
The __________ challenges one to ask, "how would you feel if your behavior appeared in The Wall Street Journal?" a) veil of ignorance b) categorical imperative c) disclosure rule d) confession constraint
C
33. Continuous performance evaluation is categorized under which of the four drivers of employee engagement? a) Line of sight b) Involvement c) Information sharing d) Rewards and recognition
D
33. _____ tell people symbolically what the organization wants them to do and how it expects them to do it. a) Heroes b) Myths c) Norms d) Rituals
D
34. Which of the following is not an effective way to discipline employees? a) Discipline must be constructive and done in a professional manner. b) Discipline should be done privately. c) Employees should be encouraged to explain their side of the story. d) Discipline should be consistent with what other employees at the same level or position received.
D
12. The implosion of the financial markets in 2008 was largely the result of: a) illegal behavior b) the Federal government intervention c) government regulation d) unethical activities in that they ultimately produced great harm
D
19. Definition of ethics—"the principles, norms, and standards of conduct governing an individual or group"—focuses on _______. a) organization b) society c) business d) conduct
D
20. According to research, what percent of the information that passes through the grapevine is accurate?
D
20. Which of the following is true? a) Attempting to achieve a task goal can decrease risky behavior. b) Employees focus on what managers say more than what managers do. c) Employees will not search for clues about what gets rewarded; they must be told by managers that it is important. d) Meeting a goal provides psychological benefits.
D
22. Unconscious distortion of information in order to maintain a positive self-image. a) confirmation bias b) illusion of optimism c) illusion of control d) illusion of superiority
D
22. Which of these is not a secondary stakeholder? a) Opinion formers b) Community c) Authorities d) Employees
D
23. Which of the following is false? a) The idea that punishment should be avoided is based on research on rats and small children. b) People are less likely to engage in unethical behavior if it is likely to be detected and punished. c) Other employees are affected by the punishment of just one employee. d) People do not care if violators of ethical conduct are punished.
D
24. Corporate social responsibility (CSR) consists of which four kinds of responsibilities: a) Economic, ethical, societal, and altruistic b) Economic, legal, ethical, and altruistic c) Fiscal, legal, societal, and philanthropic d) Economic, legal, ethical, and philanthropic
D
25. Research has found that people are more likely to be ethically aware, to recognize the ethical nature of an issue or decision, if all of these things happen EXCEPT: a) if they believe that their peers will consider it to be ethically problematic. b) if ethical language is used to present the situation to the decision maker. c) if the decision is seen as having the potential to produce serious harm to others. d) if superiors in the organization do not see it as an issue but subordinates do.
D
26. Which of these is NOT a part of informal system in an organization?: a) Norms b) Rituals c) Language d) Decision processes
D
27. The term __________ is sometimes used to represent harmony among three dimensions of economic, social and environmental impacts. a) philanthropic b) ethics c) bottom-line d) sustainability
D
28. The __________ approach to formal corporate ethics initiatives is proactive and aspirational. a) rules b) compliance c) competitive d) values
D
29. According to the Executive Ethical Leadership Reputation Matrix, ___________ is an executive characterized as a weak "moral person" and a strong "moral manager." a) Unethical leader b) Ethical leader c) Ethically neutral leader d) Hypocritical leader
D
31. According to the 2012 Corruption Perception Index (CPI), which country would be the least corrupt? a) United States b) Haiti c) Bangladesh d) New Zealand
D
31. Federal law prohibits discrimination against individuals with specific characteristics. Which of the following characteristics is not on that list (i.e. not protected under Federal law)? a) Religion b) Gender c) Pregnancy d) Mental ability
D
31. When a statement is "off the record," this means: a) Anything you told the reporter before you said "off the record" cannot be used in the reporter's story. b) Your identity is completely protected; no one will be able to figure out the information came from you. c) A reporter cannot put any of the information you provided in his or her story. d) A reporter can use the information you provided in a story as long as the remarks are not attributed directly to you.
D
35. You are a manager forced to layoff certain employees. What is the primary objective that should guide your treatment of these individuals? a) To make the process as quick and painless to the company as possible. b) To ensure the grapevine is passing truthful information. c) To ensure layoff survivors understand why they were not chosen. d) To allow the terminated employee to maintain personal dignity.
D
37. Which of these terms is used to describe individuals who act in self-interested, opportunistic, deceptive, and manipulative ways to win no matter what the cost or how it affects other people? a) Relativism b) Idealism c) Locus of control d) Machiavellianism
D
20. According to researchers at Harvard, in developing their firm's codes of conduct, multinational firms would be wise to stick with the eight principles identified by their research as the core of global standards of conduct and to not deviate or supplement the principles with values unique to their respective firms.
F
The _____ approach focuses more on the integrity of the moral actor (the person) than on the moral act itself (the decision or behavior).
D
The ___________ states that an ethical decision should maximize benefits to society and minimize harms. a) principle of value b) theory of cost-benefit analysis c) principle of efficacy d) principle of utility
D
Which of the following is not one of the steps in the moral decision-making process, according to the text? Moral awareness Ethical behavior Moral development Moral judgment
Moral development
Which of these is the final step in the sound ethical decision making in business? a) Define the ethical issues b) Gather the facts c) Identify the affected parties d) Check your gut
D
4. John Walker, the Chief Executive Officer of Consolidated Industries, had a tough decision to make. He had to decide which of four possible plants to close to save money and boost the value of Consolidated's shares. He decided to close a subsidiary in a poor third-world nation located 6,000 miles away from the company headquarters where he was located. He reached that decision after realizing that it was the only one of the four plants at which he had met none of the workers. He also was unwilling to believe that all of the money he had put into a London subsidiary would not soon pay off if he diverted some of the money saved by closing the third world plant to the London operations. Which of the following two concepts is illustrated by the process by which John Walker decided which plant to close: Diffusion of responsibility; escalation of commitment. Pygmalion Effect; confirmation trap. Locus of control; Kohlberg's first stage of moral development. A high level need for moral approbation; low ego strength.
Diffusion of responsibility; escalation of commitment.
16. Under the U. S. Sentencing Guidelines, the same crime can be subject to a wide range of penalties. In determining the penalty, the following will be considered: a. Prior violations b. Whether management reports itself c. Whether management cooperates with authorities d. Whether the firm has an effective program in place to prevent and detect illegal behavior e. All of the above
E
22. The broad categories of typical ethical problems individuals face in the workplace include all of the following except a. Human resources issues b. Conflicts of interest c. Customer Confidence Issues d. Use of Corporate Resources e. Leadership concerns
E
29. Which of the items listed is NOT a product of a "favorable corporate reputation." a. Charge more for its products and services b. Attract, Hire and keep higher quality applicants/employees c. Enhance their access to better capital markets d. Attract investors e. Ignore the Foreign Corrupt Practices Act
E
34. Social Accountability International developed a standard called Social Accountability 8000 (SA 8000) to help organizations in workplace conditions including but not limited to a. Child labor b. Forced labor c. Health and safety d. Discrimination e. All of the above
E
28. Interface Carpets, a stellar example of sustainability in action, lists seven fronts of Mount Sustainability. Which is NOT one of the firm's goals to meet its total sustainability status? a. Redesigning commerce b. Sensitizing stakeholders c. Using renewable energy d. Ensuring benign emissions e. Eliminating waste f. Competing through cost
F
31. The due care theory involves at least the elements set out below. a. products and services meet all government regulations and specifications b. ability to return the product if dissatisfied for any reason c. products should be inspected regularly for quality d. manufacturers should institute a system to recall products that prove dangerous after distribution e. a & b f. a, c, & d g. all of the above
F
According to Lawrence Kohlberg, developer of a key theory of moral reasoning, role taking is useless as nothing is gained by putting yourself in the shoes of others.
F
Although all of the philosophical approaches have limitations, an individual must choose one approach and follow its guidance in every situation.
F
Creativity and thinking out of the box are just a scoundrel's way of saying that coming up with alternatives in solving how you handle ethical issues are valuable skills to keep you from getting caught.
F
Despite the disclosure rule, making decisions in private to avoid negative reaction is generally best for a business as it safeguards your firm's reputation and keeps competitive information away from your competitors.
F
Generally, ethical dilemmas are not routine. Therefore, there is no way that an individual can be prepared or informed for a problem ahead of time.
F
If you are asked to make hastily a decision that you believe raises potential ethical issues you should be a good team player and proceed with the decision.
F
In business, concerning yourself with how your decision making affects stakeholders is useless given the number of stakeholders and their different interests.
F
It is good advice to go with your gut.
F
Most business managers rely on a deontological approach.
F
The consequentialist approach protects the rights of the minority.
F
With the advent of technology, fewer people look to others in their social environment for guidance in ethical dilemma situations.
F
6. When employees come to an organization, they have already developed into "good" or "bad" apples. Therefore, there is little a manager can do to impact an employee's ethical behavior.
FALSE
7. According to the authors, most people are guided by a strict internal moral compass and will not be swayed by organization factors.
FALSE
9. It is unethical for managers to "control" employees' ethical behavior through direct management and the organization's formal and informal cultural systems.
FALSE
1. The interest in business ethics is just a fad that has only recently been created by popular scandals (i.e., Enron, WorldCom, etc.) reported in the news.
False
2. Discarding the few "bad apples" will usually solve all of the ethical problems within an organization.
False
3. Good character is the main factor determining whether an individual acts ethically within an organization.
False
4. Federal laws define what is ethical. Therefore, all unethical behavior is considered unlawful.
False
35. Of the following statements about the Organization for Economic Cooperation and Development (OECD) Anti-Bribery Convention (the "Convention") which are untrue. a. Participating countries include countries in Western Europe and North America b. The Convention requires signatories to make it a crime to bribe foreign public officials c. The Convention includes the application of criminal penalties d. The Convention bans gifts to political parties e. The Convention outlaws tax deductibility for bribes f. All are statements are true g. Statements d and e are untrue
G
The federal organizational sentencing guidelines influence the ethical behavior of companies in all of the following ways except: Encouraging the establishment of ethics officers and other effective ethical compliance measures. Reducing a potential fine from criminal misconduct if the company cooperates in a government investigation of alleged crimes the company committed. Increasing the potential culpability score of a corporate officer accused of illegal conduct. Punishing companies that obstruct government investigation into corporate wrongdoing.
Increasing the potential culpability score of a corporate officer accused of illegal conduct.
6. The late economist ________ said that management should "make as much money as possible while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical custom."
Milton Friedman
You, a relatively new part of the executive staff of Consolidated's CEO, have been brought in to observe the team's discussion and to report back to him. Which of the following statements would not be true if you included it in your report? Every member of the team considered to some degree the company's overall best interests as he or she saw them in reaching their recommendation. Two members of the team felt that the company was ethically required to recall the bibs and two members of the team felt that the company was not ethically required to recall the bibs. No two members of the team used the same ethical theory in reaching their conclusions and that was a large reason for their disagreement. No two team members had the same explanation for voting to recommend recall or no recall of the bibs.
No two team members had the same explanation for voting to recommend recall or no recall of the bibs.
John, from Marketing, agrees with Jane that Consolidated should leave the bibs on the market, agrees with adding a consumer warning to the bibs, but disagrees such a warning should be included in the company's advertising. The company's advertising never said or implied that bibs should be put in a baby's mouth or that it was safe to do so. The company is not doing anything illegal, even with the trace elements of lead; the bibs still satisfy the government's minimal standards. He recommends that the bibs stay on the market with the warning Jane suggests to ensure that customers are making an informed decision. John opposes including the warning in the company's advertising, both because he feels it is unnecessary and because the costs of such a change in the advertising would come out of his department's budget. "Look," he told the group, "it's not like the company is holding a gun to people's heads to get them to buy Consolidated bibs, rather than those of a less well-known company." Which of the following theories of ethical decision-making has John followed in making his recommendation? Nozick's rights theory. Utilitarianism. Rawls' theory of justice. Kant's categorical imperative.
Nozick's rights theory.
Nguyen, out of Product Development, is disturbed by John and Jane's recommendations to leave the bibs on the market. He is especially troubled by Jane's comment that the popularity of these bibs with low-income customers was a reason that the company should not recall the product. That struck him as backwards and morally unacceptable. "Jane," Nguyen interjects, "it is precisely to protect our most vulnerable customers that we should recall the bibs. If babies get sick from lead poisoning - even though we know that that is a remote possibility -- they are unlikely to have access to proper medical care. I don't care what the cost of the recall is. We have to recommend that the product be pulled, especially to protect this group of customers. It also will send the message that "'Consolidated Cares,'" a slogan we have used in the past." Which of the following methods of ethical decision-making has Nguyen followed in making his recommendation? Nozick's rights theory. Utilitarianism. Rawls' theory of justice. Kant's categorical imperative.
Rawls' theory of justice.
17. Focused on avoiding punishment.
S1
19. "You scratch my back, I'll scratch yours."
S2
16. Focused on interpersonal trust and social approval.
S3
18. Focused on following the rules or laws that are designed to promote the common good.
S4
20. Considers the possibility of changing the law for socially useful purposes.
S5
_____ ______ ______ (3 words) are those shareholders who clearly care about the financial and the social bottom line of a business.
Socially responsible investors
. A challenge involved in using a strictly consequentialist approach is that it is often difficult to obtain the information required to evaluate all of the consequences for all stakeholders who may be directly or indirectly affected by an action or decision.
T
. An ethical dilemma is defined as a situation where two or more "right" values are in conflict.
T
. If an individual does not recognize that he or she is facing an ethical dilemma, then ethical judgment is likely not to occur.
T
16. The Golden Rule ("do unto others as you would have them do unto you") appears in the teachings of every major world religion.
T
A major challenge of deontological approaches is deciding which duty, obligation, right, or principle takes precedence because ethical dilemma often pit these against each other.
T
A virtue ethics perspective considers the actor's character, motivations, and intentions.
T
A virtue ethics perspective requires a moral actor to look to the community that will hold the moral actor to the highest ethical standard and support the moral actor's intention to be a virtuous person.
T
An appearance of a conflict of interest can be as damaging as an actual conflict.
T
Business managers generally rely on the consequentialist approach.
T
Ethical dilemmas represent conflicts in values.
T
Utilitarianism is the best known example of a consequential theory.
T
10. For individuals, values can be defined as "one's core beliefs about what is important, what is valued, and how one should behave across a wide variety of situations.".
TRUE
5. Both characteristics of the environment and the individual contribute to unethical behavior.
TRUE
8. By ignoring the topic of ethical behavior, an organization may actually be encouraging unethical behavior through benign neglect.
TRUE
CFO Jane is concerned about overreacting to the bad press. She tells the group that she has concluded that a recall's costs to the company far outweigh the benefit of such a recall to the public. It is virtually certain that no babies actually will be harmed and leaving the bibs on the market will ensure that low-income consumers, the biggest consumers of this bib, will continue to be able to afford a Consolidated-made bib rather than a bib produced by a less well-known company. The company's shareholders are also likely to be harmed by a costly recall. She thinks the overall best solution is to leave the bibs on the market with a warning, including in the company's advertising, that they contain trace amounts of lead and urges the team to agree with her recommendation. Which of the following theories of ethical decision-making has Jane followed in making her recommendation? Nozick's rights theory. Utilitarianism. Rawls' theory of justice. Kant's categorical imperative.
Utilitarianism.
Pablo, of Corporate Communications, agrees with Nguyen that the product should be recalled. The cost of the recall, he believes, would be more than offset by the positive media attention that the company would receive by taking steps to protect the safety of its customers, even steps that the law did not require. Shareholders would benefit from the resulting increase in sales spurred by the company's enhanced reputation and employee morale would rise from knowing the company did the right thing as a matter of both ethics and profits. The babies would benefit by removing lead from the environment, and parents would benefit from the peace of mind that accompanies keeping their children safe. Which of the following methods of ethical decision-making has Pablo followed in making his recommendation? Nozick's rights theory. Utilitarianism. Rawls' theory of justice. Kant's categorical imperative.
Utilitarianism.
34. Focuses on the integrity of the moral actor.
Virtue ethics approach
32. Focuses on doing what is "right" based on broad, absolute and universal moral principles or values
a) Deontological approach
33. "What kind of world would this be if everyone behaved this way or made this kind of decision in this type of situation?"
a) Deontological approach
36. For example, followers of this approach would rely on Western biblical tradition or moral intuition for guidance.
a) Deontological approach
40. An individual's principles may be in conflict with what is best and causes the least amount of harm to another individual. For example, an individual who believes that he or she should not lie would be conflicted about telling the Nazi's he or she is hiding Jews in the basement.
a) Deontological approach
43. A major challenge is deciding which duty, obligation, right, or principle takes precedence.
a) Deontological approach
42. The rights of a minority group can easily be sacrificed for the benefit of the majority (for example, slavery in the United States).
b) Teleological approach
35. The______________ approach best known as consequentialist theory is Utilitarianism.
b) Teleological (or Consequential) approach
38. Focuses on the results or consequences of the decision or action.
b) Teleological (or Consequential) approach
41. It is difficult to obtain the information required to evaluate all of the consequences for all indirect and direct stakeholders.
b) Teleological approach
34. Focuses on the integrity of the moral actor.
c) Virtue ethics approach
37. A philosophical tradition that began with Aristotle and primarily considers the actor's character, motivations, and intentions.
c) Virtue ethics approach
39. This approach that stresses community standards is limited in business because in many areas of business there is limited agreement about what the standards are.
c) Virtue ethics approach
4. The ________ reason for corporate social responsibility argues that businesses, as part of society, have a responsibility to behave in the right way.
ethical
2. CalPERS, the California Public Employees' Retirement System pressures the companies it invests in to engage in good corporate governance and socially responsible practices in areas such as ______ and ______.
human rights; environmental responsibility
1. Organizations are finding that in the area of Corporate Social Responsibility (CSR), it is becoming increasingly difficult to separate _______ organizational ethics from ______ social responsibility.
internal; external
3. The three reasons that corporations should care about social responsibility are ______, ______ and ________.
pragmatic, ethical, strategic