Chapter 4 - SB

Executives pay most attention to their company's code of ethics when ______.

stakeholders influence them to do so

One of the biggest impacts of ___________ is the requirement for companies and their auditors to provide reports about the effectiveness of internal controls over the financial reporting process.

the Sarbanes-Oxley Act

Moral philosophy is

the principles, rules, and values used to decide what is right or wrong.

Organizations see ethics as an important issue for all of the following reasons EXCEPT that

unethical organizations always lose money when compared to ethical organizations.

What is the final step of ethical decision making?

Propose a convincing moral solution.

A philosophy that bases ethical behavior on the opinions of relevant other people is called

relativism

While U.S. managers believe that whistleblower hotlines help reduce unethical behaviors, managers in China and Central Europe do not. This is an example of ______.

relativism

In any organization, your most precious asset is your

reputation.

In which situations do we find ethical issues?

All parts of life

For a company's ethics code to be effective, who should be involved in writing it?

All those who be affected by it

How can people rationalize unethical behavior? (Choose every correct answer.) Multiple select question. Denying injury Denying responsibility Denying the victim Accepting responsibility Appealing to higher loyalties

Denying injury Denying responsibility Denying the victim Appealing to higher loyalties

Which factors are essential to becoming an ethical leader? (Choose every correct answer.) Multiple select question. Being seen by others as a moral manager Being seen by others as a moral person Influencing others to behave ethically Offering spiritual guidance to coworkers Requiring subordinates to follow any order

Being seen by others as a moral manager Being seen by others as a moral person Influencing others to behave ethically

There are many ethical challenges facing U.S. managers today. Identify from the list below some of the ethical dilemmas managers are currently facing. Multiple select question. Branding Executive compensation Commercialism in schools U.S. slavery Sweatshops

Branding Executive compensation Commercialism in schools Sweatshops

What type of ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations?

Compliance-based

Which subjects are commonly addressed in ethics codes? (Choose every correct answer.) Multiple select question. Competition in the marketplace Employee conduct Technology Political activity Community and environment Suppliers and contractors

Employee conduct Technology Political activity Community and environment Suppliers and contractors

Which statement describes the ethical system of relativism?

Ethical behavior is based on the opinions and behaviors of relevant other people.

Which statement describes the ethical system of egoism?

Ethical behavior is that is based on acting on individual self-interest.

True or False Ethical issues are only found in our personal lives.

False

Which of the following is an example of egoism?

Individual self-interest contributing to the sub-prime mortgage crisis.

Which of the following are ethical issues that managers encounter with the use of technology in the workplace? (Choose every correct answer.) Multiple select question. Loss of productivity Management-authorized posting of information about the company Computer users introducing computer viruses Disclosure of confidential information

Loss of productivity Computer users introducing computer viruses Disclosure of confidential information

Which of the following are true about ethical lapses? (Choose every correct answer.) Multiple select question. Managers often hire people who are like them and think they are immune to conflicts of interest. Most people have no biases that favor themselves and their own group. Managers are likely to blame themselves more than they blame others. Most people have unconscious biases that favor themselves and their own group.

Managers often hire people who are like them and think they are immune to conflicts of interest. Most people have unconscious biases that favor themselves and their own group.

Which ethical system defines ethical behavior according to how others behave?

Relativism

What is a common first step when drafting an ethics code for a business?

Research other companies' ethic codes

Which of the following would create a climate conducive to unethical behavior?

Responsiveness to shareholders at the expense of other stakeholders.

The _____ is an act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

Sarbanes-Oxley Act

What are some of the requirements of the Sarbanes-Oxley Act? (Choose every correct answer.) Multiple select question. Senior managers must personally sign off on financial results. Companies must be audited monthly by national accounting firms. Companies must have more independent board directors. Employees are required to sign non-compete agreements. Companies must adhere strictly to accounting rules.

Senior managers must personally sign off on financial results. Companies must have more independent board directors. Companies must adhere strictly to accounting rules.

When making an ethical decision, your first two steps in defining the complete moral problem are to understand all the moral standards and to ______.

recognize all moral impacts

What name is given to the ethical principles established by international executives in Switzerland, along with business leaders from Japan, Europe, and the United States?

The Caux Principles

What is the perspective of relativism on ethics?

There are different viewpoints about ethics.

What happened when Cognizant Technology Solutions was caught bribing government officials in India?

They had to pay a hefty settlement to end a civil lawsuit.

Which statements are true about ethical leaders? (Choose every correct answer.) Multiple select question. They seldom makes mistakes. They are often ineffective. They influence others to behave ethically. They are personally moral. They are moral managers.

They influence others to behave ethically. They are personally moral. They are moral managers.

True or False By demonstrating ethical leadership, managers can boost employee retention.

True

True or False Many people who believe that they are ethical decision makers have unconscious biases.

True

True or False When implemented well, a code of ethics for senior officials in a company can change a company's ethical climate and truly encourage ethical behavior.

True

The Quality Products corporation makes it clear to its managers that controlling bottom-line costs takes priority over every other consideration. What may this policy be tacitly encouraging?

Unethical behavior

Which criteria would indicate an ethical action when evaluating your ethical duties? (Choose every correct answer.) Multiple select question. You would be proud to see the action widely reported in newspapers. You would be willing to see others take the same action when you might be the victim. It doesn't harm the "least among us." It would interfere with the right of all others to develop their skills to the fullest. It would generate the least social good.

You would be proud to see the action widely reported in newspapers. You would be willing to see others take the same action when you might be the victim. It doesn't harm the "least among us."

The Sarbanes-Oxley Act requires that public companies periodically disclose if they have ______.

a code of ethics for senior financial officers

When a company and its people govern themselves through a set of guiding principles that they embrace they are using ______.

an integrity-based ethics program

Which ethical system defines acceptable behavior as that which maximizes benefits for the individual?

egoism

A(n) _____ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.

ethic issue

The processes an organization uses to evaluate and make decisions on the basis of right and wrong are collectively called the ______.

ethical climate

The term that refers to the way decisions are evaluated and made in an organization on the basis of right and wrong is ______.

ethical climate

Someone who is both a moral person and a moral manager that influences others to behave ethically is called a(n) _____.

ethical leader

The system of moral principles that guides behavior is called ______.

ethics

An ethics code, an ethics officer, ethics training, and an ethics communication system are all part of a ______.

ethics program

Most Americans believe CEO pay is

excessive

Corporate ethics programs commonly include ______.

formal ethics codes that detail the company's expectations

Wendy is a university president considering cutting financial support for study abroad. She pretends that she belongs to one of the groups which will be affected by this decision, but she doesn't know which group, those that can afford to study abroad or those that can't. Making the decision from this perspective can ensure a truly ethical decision. Wendy is using the veil of ______.

ignorance

In order to create a culture that encourages ethical behavior a manager needs to ______.

lead others to behave ethically

U.S. companies lose about 5% of their annual sales to fraud, but the losses are ______ at organizations with a mechanism for reporting misconduct.

less than half that

If you were asked to describe the principles, rules, and values that you use when deciding what is right or wrong, this would be called your ______.

moral philosophy

Organizations convicted of federal criminal laws may receive ______ sentences if they are shown to have established an effective ethical program.

more lenient

A code of ethics is written and tailored to reflect the philosophies of the ____________ usually with regards to workplace conduct, technology, its stakeholders, and environment.

organization

Ethics becomes more complicated when a situation arises in which one value ______ other values.

overrules

The ethical system that states that everyone should uphold certain values, such as honesty and rules against oppression, is called

universalism

Reporting wrongdoing in a business or government is known as __________.

whistleblowing

In a 2019 survey conducted by Edelman, the percentage of Americans who trust business had dropped to _____.

56%

______ are the moral principles and standards that guide behavior in the business world.

Business ethics

Which of the following are danger signs that an organization may be allowing or encouraging unethical behavior? Multiple select question. Excessive emphasis on short-term revenues over longer-term considerations. Identifying the alternatives and associated effects, risks, costs and legal implications. Failure to establish a written code of ethics. Treating ethics only as a legal issue or public relations tool.

Excessive emphasis on short-term revenues over longer-term considerations. Failure to establish a written code of ethics. Treating ethics only as a legal issue or public relations tool.

Organizations take specific actions to adhere to the guidelines established by the U.S. Sentencing Commission. What are actions an organization should take when trying to follow the updated guidelines? (Choose every correct answer.) Multiple select question. Exclude anyone who violates the code of conduct from holding a management position Written codes of conduct Give employees incentives for complying with the code of conduct Provide ethics training to only lower level employees

Exclude anyone who violates the code of conduct from holding a management position Written codes of conduct Give employees incentives for complying with the code of conduct

True or False Facilitating whistleblowing is always effective in reducing unethical behaviors.

False

True or False The most effective code of ethics is one that is similar to those of its competitors.

False

Organizations take specific actions to adhere to the guidelines established by the U.S. Sentencing Commission. What are actions an organization should take when trying to follow the updated guidelines? (Choose every correct answer.) Multiple select question. Give employees incentives for complying with the code of conduct Exclude anyone who violates the code of conduct from holding a management position Provide ethics training to only lower level employees Written codes of conduct

Give employees incentives for complying with the code of conduct Exclude anyone who violates the code of conduct from holding a management position Written codes of conduct

Which result of unethical behavior is considered a Level 1 Cost and is thus less damaging?

Government fines and penalties

______ concerns the value of each person as an end, not a means to the fulfillment of others' purposes.

Human dignity

Which statements are commonly used to rationalize unethical behavior? (Choose every correct answer.) Multiple select question. I'm too loyal to my boss to report it. They deserved it. No one was badly hurt. It was for a higher purpose. I take total responsibility.

I'm too loyal to my boss to report it. They deserved it. No one was badly hurt. It was for a higher purpose.

Which type of ethics program involves company mechanisms designed to instill in people a personal responsibility for ethical behavior?

Integrity-based

Pita Plus wants to make sure their employees value diversity. Their training program encourages understanding and tolerance of personal differences. What term describes this company's actions?

Integrity-based program

What is the difference between integrity-based ethics programs and compliance-based ethics programs?

Integrity-based programs instill in people personal responsibility for ethical behavior.

What led to the creation of the Caux Principles?

International executives felt the need to establish global, universal ethical principles for business.

Which statements explain how a code of ethics influences the ethical climate of an organization? (Choose every correct answer.) Multiple select question. It helps increase executive salaries in the organization. It helps create a strong ethical culture. It helps promote a positive image. It helps improve the financial performance of the firm.

It helps create a strong ethical culture. It helps promote a positive image.

Which statement best defines the ethical system known as utilitarianism?

It is an ethical system in which the goal is to create the greatest good for the greatest number.

Which factors make an ethics code effective? (Choose every correct answer.) Multiple select question. It is concise and easy to understand. Only executives are required to follow it. It uses complex terms and ideas. Those affected by it are involved in writing the statement. It focuses on real-life situations that employees can relate to.

It is concise and easy to understand. Those affected by it are involved in writing the statement. It focuses on real-life situations that employees can relate to.

The model that classifies people based on their level of moral judgment is _______.

Kohlberg's model of cognitive moral development

The ethical ideal underlying the Caux Principles that allows cooperation and mutual prosperity to coexist with healthy and fair competition is called

Kyosei

Select from the list below the two basic ethical ideas underpinning the Caux Principles. Multiple select question. Relativism Universalism Kyosei Human dignity

Kyosei Human dignity

What are some of the factors that may encourage unethical behavior? (Choose every correct answer.) Multiple select question. Lack of written code of ethics Focus on a "quick fix" Lack of clear procedures Focus on long-term considerations

Lack of written code of ethics Focus on a "quick fix" Lack of clear procedures

Which qualities are required for behaving ethically? (Choose every correct answer.) Multiple select question. Moral character Moral judgment Moral awareness Moral vicissitude Moral confusion

Moral character Moral judgment Moral awareness

Which element is NOT part of the process for making ethical decisions?

Moral control

_____ are standards of expected and acceptable behavior.

Norms

__________ are cultural standards of acceptable and expected behavior. (Enter one word in the blank.)

Norms

Which are categories in Kohlberg's model of cognitive moral development? (Choose every correct answer.) Multiple select question. Utilitarian Relativist Principled Conventional Preconventional

Principled Conventional Preconventional

Which are common elements of compliance-based ethics programs? Multiple select question. Punishments imposed on violators Auditing and monitoring compliance Personal responsibility for ethical behavior Increased surveillance and controls on people

Punishments imposed on violators Auditing and monitoring compliance Increased surveillance and controls on people

What is the ethical system that states that all people should uphold certain values that society needs to function?

Universalism

Which are parts of the process for ethical decision making? (Choose every correct answer.) Multiple select question. Using judgment to recognize what actions are morally defensible. Having awareness to realize the issue has ethical implications. Using business judgment to assess economic costs, competitive advantages, and avoid financial responsibilities. Having moral character to act in accordance with your ethics.

Using judgment to recognize what actions are morally defensible. Having awareness to realize the issue has ethical implications. Having moral character to act in accordance with your ethics.

A company is losing market share and realizes it must increase efficiency and cut costs in order to survive and succeed. It decides to shut down several underperforming facilities in the United States and open factories overseas where costs are much lower. This decision will allow the company to compete more effectively in the global market and result in more job opportunities and profits down the road. This is an example of which ethical system?

Utilitarianism

What concept suggests that only a person who doesn't know whether or not they will personally benefit from a decision can make a truly ethical decision?

Veil of ignorance

__________ ethics suggests that what is moral must come from what a mature person with good moral character would deem right.

Virtue

Which statement is most consistent with the virtue ethics perspective?

What is considered to be moral must also come from what a mature person with good moral character would say is right.

What term is used to describe the act of telling others about misconduct in an organization?

Whistleblowing

What is the basic concern of Kyosei?

Working together for the common good.

Companies, managers, and their communities all benefit over the long term when managers act with integrity and ______.

apply ethics

The practice of businesses paying bloggers to write positive comments about the business is called ______.

astroturfing

There are three requirements to ethical decision-making. The one defined as "realizing that the issue has ethical implications" is moral __________.

awareness

The moral principles and standards that guide behavior in the business world are called ______.

business ethics

An individual's level of moral judgment can be classified using Kohlberg's model of ______.

cognitive moral development

When a person makes decisions that conform to expectations of groups and institutions like family, peers, and society. He/she is in the ______ stage of moral development.

conventional

Unethical corporate behavior is often an outcome of ______.

corporate culture

According to the Sarbanes-Oxley Act, companies must have more ______ on the board of directors.

independents

Egoism is an ethical system that defines acceptable behavior as that which maximizes benefits for the ______.

individual