BA 310 Exam 2 (5-7)

Which of the following are factors such as what is seen and heard within a firm? a. shared values b. basic assumptions c. artifacts d. self-interests

Artifacts

The agreed starting point for decision making within a firm is called ______________. a. shared values b. basic assumptions c. artifacts d. self-interests

Basic assumptions

______________ is defined as giving a financial benefit in return for influencing the decision of a person in a position of trust. a. Extortion b. Bribery c. Embezzlement d. Fraud

Bribery

When the CEO is also the chairman of the board, it is called ____________. a. CEO universality b. CEO duality c. CEO certification d. CEO intervention

CEO duality

The ____________ board provides the function of validating to shareholders that the CEO is doing what is expected of him or her and that management will make corrective adjustments when necessary. a. passive b. engaged c. certifying d. operating

Certifying

Which of the following CEOs described Citigroup from a broader stakeholder perspective by styling the company as a "quasipublic institution??" a. Sandy Weil b. Bernard Embers c. Charles Prince d. Eric Gilmore

Charles Prince

In general, corruption can be classified into each of the following major types EXCEPT: a. collusive peddling b. petty corruption c. grand corruption d. influence peddling

Collusive peddling

Which of the following is not recognized as one of the six core ethical values that are recommended to guide the behaviors of board members? a. honesty b. responsibility c. competitiveness d. citizenship

Competitiveness

Which of the following does not represent one of the three stages of Kurt Lewin's model of change? a. unfreezing b. moving c. refreezing d. confusion

Confusion

_______________ is defined as the shared values and beliefs of employees within any given organization. a. Social culture b. Corporate culture c. Strategic planning d. Ethical judgment

Corporate culture

_______________ can be defined as the system that is used by firms to control and direct their operations and the operations of their representatives, the employees. a. Corporate culture b. Artifacts c. Corporate governance d. Ethical values

Corporate governance

From a(n) _______________ perspective, it would be argued that CEO compensation is based on the rights of the individuals and the judgments made with a specific decision process instead of a focus on the decision choices. a. ethical egoism b. deontological c. utilitarian d. Sidgwick's dualism

Deontological

All of the following are major issues that most boards of directors have in common EXCEPT: a. the annual business plan of the firm b. developing departmental production plans c. the issuance of stock options d. the issuance of dividends

Developing departmental production plans

In the Deloitte & Touche five step process to embed ethics and values within the culture of a firm, the ________________ is the stage that any revisions to the monitoring and reporting components of the compliance program would be adjusted if necessary. a. review of current compliance program b. development of an ongoing self-assessment of the compliance program c. review of current ethical policies and procedures d. risk/cultural assessment

Development of an ongoing self-assessment of the compliance program

The taking of money illegally from a firm or other source is called ______________. a. extortion b. bribery c. embezzlement d. fraud

Embezzlement

A(n) ______________ board has a proactive role within the decision-making process and provide advice and support to the CEO and the top management team. a. passive b. engaged c. certifying d. operating

Engaged

From the perspective of _____________, high levels of CEO compensation coincide with the agency theory model of maximizing the returns to the stockholders. a. ethical egoism b. deontological ethics c. utilitarian ethics d. Sidgwick's dualism

Ethical egoism

During which of the following stages of the ethical life cycle does the evaluation of different options take place? a. problem analysis b. moral problem statement c. ethical judgment d. reflection

Ethical judgement

Which of the following is defined as the use of intimidation or power in return for a financial benefit? a. extortion b. bribery c. embezzlement d. fraud

Extortion

T/F: An outside board member is a person who has direct financial ties to the firm.

False

T/F: Artifacts are based on what groups within the firm learn about what is acceptable and not acceptable.

False

T/F: Grand corruption occurs when private individuals give illegal financial incentives to nonelected public officials in exchange for favorable dealings with certain government transactions.

False

T/F: In the unfreezing stages of Kurt Lewin's three-stage model, the new perceptions and ideals are "locked in."

False

T/F: It is during the problem analysis stage that the outcomes from the ethical judgment stage are further evaluated so a definitive course of action can be determined.

False

T/F: Petty corruption occurs when illegal financial incentives are given to higher-ranked public officials.

False

T/F: Research has found that there is a direct relationship between CEO compensation and the financial performance of the firm.

False

T/F: Shared values are factors such as what is seen and heard within a firm.

False

T/F: The certifying board actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions.

False

T/F: The operating board is also called the rubber stamp board.

False

T/F: Transactional leadership is based on inspirational motivation, idealized influence, individualized considerations and intellectual stimulation.

False

T/F: Transformational leaders focus on operational and routine activities within the firm.

False

According to the Federal Sentencing Guidelines, ______________ is the most common criminal change brought against organizations. a. fraud b. environmental waste discharge c. violation of taxes d. antitrust violations

Fraud

Which of the following occurs when illegal financial incentives are given to higher-ranked public officials for decisions that usually include major infrastructure contracts, the purchasing of military equipment, or other major industry-based decisions? a. collusive peddling b. petty corruption c. grand corruption d. influence peddling

Grand corruption

A(n) ______________ is a very dangerous position for a manager to establish with other employees within the firm because this leader would have destroyed all three critical traits of a moral person. a. unethical b. ethical c. hypocritical d. inconsistent

Hypocritical

Martha Stewart could be an example of a(n) _______________ leader in that her media empire was built on the correct way to entertain and interact with other people, but her conviction may cause other employees within her empire to question whether any of her statements after her convictions were true. a. unethical b. ethical c. hypocritical d. inconsistent

Hypocritical

A(n) ______________ leader is a manager who has strong ethical traits, behaviors, and decision making of a moral person but is not able to transfer those values to other employees within the firm. a. unethical b. ethical c. hypocritical d. inconsistent

Inconsistent

When illegal transactions take place along with legal transactions, this is called _______________. a. collusive peddling b. petty corruption c. grand corruption d. influence peddling

Influence peddling

A(n) ____________ board member is a person who has direct financial ties to the firm. a. related b. outside c. inside d. operational

Inside

Board members can be classified as either _______________. a. related or unrelated b. inside or outside c. tactical or operational d. financial or non-financial

Inside or outside

Which board type becomes actively involved in all major decisions of the firm and meets frequently and focuses intensely on all issues on the agenda at the board meetings? a. intervening board b. passive board c. certifying board d. operating board

Intervening board

It can be argued that CEOs' high level of compensation can be justified based on _____________ ethics. a. Kantian b. deontological c. utilitarian d. Sidgwick's dualism

Kantian

Peter Ducker developed the ______________ which involves the decision maker's ability to look at his or her reflection after the decision had been made and state that he or she had made the right choice. a. historical test b. cycle test c. subjective test d. mirror test

Mirror test

The ____________ actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions. a. intervening board b. passive board c. certifying board d. operating board

Operating board

A(n) _____________ board member is one who does not have any direct financial ties to the firm. a. related b. outside c. inside d. operational

Outside

The ____________ board is also called the "rubber stamp" board. a. passive b. engaged c. reactive d. operating

Passive

_______________ occurs when private individuals give illegal financial incentives to nonelected public officials in exchange for favorable dealings with certain government transactions. a. Collusive peddling b. Petty corruption c. Grand corruption d. Influence peddling

Petty corruption

The principles of ethical power include all of the following EXCEPT: a. punishment b. purpose c. perspective d. patience

Punishment

Which of the following is NOT a type of board involvement as proposed by David Nadler? a. passive b. engaged c. reactive d. operating

Reactive

During which of the following steps in the Deloitte & Touche five-step process to embed ethics and values within the culture of the firm does management ask its employees via surveys and interviews what their assessment of the firm's culture is? a. review of current compliance program b. review of current ethical policies and procedures c. risk/cultural assessment d. development of an ongoing self-assessment of the compliance program

Risk/cultural assessment

Which of the following does not represent one of the three different levels on which corporate culture exists within a firm? a. shared values b. basic assumptions c. artifacts d. self-interests

Self-interests

All of the following represent suggestions for creating a climate of integrity EXCEPT: a. set an example through strong leadership b. Provide training c. set unrealistic goals so employees can be challenged and grow d. distinguish between compliance and ethics

Set unrealistic goals so employees can be challenged and grow

_____________ are based on what groups within the firm learn about what is acceptable and not acceptable. a. Shared values b. Basic assumptions c. Artifacts d. Self-interests

Shared values

______________ is the process in which future courses of action are developed to achieve the firm's short- and long-term goals. a. Strategic planning b. Tactical planning c. Operational planning d. Virtual planning

Strategic planning

The ethical cycle begins with _______________. a. the analysais of the moral problem b. the identification of the moral problem c. ethical judgment d. reflection

The identification of the moral problem

All of the following represent conditions the moral problem statement must be developed from EXCEPT: a. a clear statement of the moral problem b. an identification of who is affected by the resolution of the moral problem c. the issue of the moral problem d. the rejection of the moral problem as an issue

The rejection of the moral problem as an issue

______________ leaders focus on operational and routine activities within a firm and it is argued that this is not a true style of leadership but instead "managership" in which control is used to protect the status quo of the firm. a. Transactional b. Transformational c. Rational d. Committed

Transactional

A(n) _______________ leader is one who is focused on developing a long term vision for the company and who uses a charismatic personality to communicate his or her vision to the employees. a. transactional b. transformational c. rational d. committed

Transformational

_______ is based on inspirational motivation, idealized influence, individualized consideration and intellectual stimulation. a. Transactional leadership b. Transformational leadership c. Rational leadership d. Committed leadership

Transformational leadership

T/F: A hypocritical leader has destroyed all three of the critical traits of a moral person.

True

T/F: All of the outside board members should meet at least once a year without the presence of the CEO

True

T/F: An engaged board provides advice and support to the CEO and the top management team.

True

T/F: An ethical crisis occurs when an event that was not part of the normal course of action for a firm takes place and has an impact on the firm.

True

T/F: Corporate culture is defined as the shared values and beliefs of employees within any given organization.

True

T/F: Corporate governance can be defined as the system that is used by firms to control and direct their operations and the operations of their representatives, the employees.

True

T/F: Criminal penalties for violation of the Foreign Corrupt Practices Act can be up to $2 million for a firm and $100,000 and five years in prison for an individual.

True

T/F: Ethical leadership can be defined as "the demonstration of normatively appropriate conduct through personal actions and interpersonal relationship, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making.

True

T/F: It can be argued that CEOs' high level of compensation can be justified based on Kantian ethics.

True

T/F: Strategic planning is the process in which future courses of action are developed to achieve the firms' short- and long-term goals.

True

T/F: The U.S. Federal Sentencing Guidelines for Organizations were passed in 1991 and were revised in 2004.

True

T/F: The agreed starting point for decision making within the firm is called basic assumptions.

True

T/F: The classic example of a defining moment is when a decision maker has a choice between two plausible and acceptable strategic options.

True

T/F: The ethical cycle begins with the identification of the moral problem.

True

T/F: The mirror test involves the decision maker's ability to look in the mirror after the decision had been made and state that he or she has made the right choice.

True

T/F: The operating board actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions.

True

T/F: The principles of ethical power are: purpose, perspective, patience and persistence.

True

T/F: When the CEO is also the chairman of the board, it is called CEO duality.

True

A weak moral person and weak moral manager would generate a reputation of _____________ leadership a. unethical b. ethical c. hypocritical d. inconsistent

Unethical

All of the following are countries that tolerate having their nationals give bribes in other countries and also allow the bribes to be written off as business expenses on the firm's tax statements EXCEPT: a. France b. Germany c. Japan d. United States

United States

From the perspective of ______________, compensation would focus on the consequences of the greatest good to the greatest number of people. a. ethical egoism b. deontological ethics c. utilitarianism d. Sidgwick's dualism

Utilitarianism

Alan Graf believes that culture should include all of the following basic components EXCEPT: a. Define the philosophy and corporate values in a mission statement b. Utilize a tall organizational hierarchy so that control can be maintained c. Develop guidelines for employees d. Establish a formal channel for employees to report violations

Utilize a tall organizational hierarchy so that control can be maintained