Chapter 6

Place the three surges that increased the appointment of ethics officers in chronological order, starting with the earliest trigger. Drag and drop application. Enactment of the U.S. Corporate Sentencing Guidelines Passage of the Sarbanes-Oxley Act Ethical lapses in large corporations

1. Ethical lapses in large corporations 2. Enactment of the U.S. Corporate Sentencing Guidelines 3. Passage of the Sarbanes-Oxley Act

Most ethics or compliance officers are entrusted to: Multiple Choice Act as a liaison between the company and their temporary employees. Reduce the risks to the company of employee misconduct. Audit the company's financial records. Arrange customer training courses at a nearby university.

Act as a liaison between the company and their temporary employees.

What was the primary ethical marketing issue in the Outcome Health example? Multiple choice question. Causing harm to patients Unfair drug pricing Life insurance fraud Deceptive advertising

Deceptive advertising

In the case Equifax's Data Breach, which ethical climate dominated during the data breach? Multiple Choice Benevolence. Integrity. Egoism. Team approach.

Egoism.

Which ethical criterion is described by the idea that a company should strive for efficiency? Multiple Choice Egoism. Benevolence. Principle. Business-centered.

Egoism.

The ethical concern of invasion of privacy in information technology relates to which issues? (Check all that apply.) Multiple select question. Spying on your colleagues Electronic mail confidentiality Data collection Access to personal information

Electronic mail confidentiality Data collection Access to personal information

Which specific corporate ethics reporting mechanism allows employees to report ethical concerns anonymously? Multiple choice question. Proxy ballots Customer support line Round table meetings Employee helpline

Employee helpline

True or false: The industry codes of conduct for accounting, finance, marketing, and information technology are identical, because the same ethical dilemmas exist for all functions. True false question. True False

False

Which of these components are not considered during a risk-assessment audit to gauge the effectiveness of a firm's ethics programs? Multiple Choice The financial bottom line. Top management commitment. Training programs. Ethical policies.

The financial bottom line.

The U.S. Foreign Corrupt Practice Act (FPCA) combats bribery by _____. Multiple select question. assessing civil penalties assessing criminal penalties requiring full disclosure of company transactions assessing high taxes on corrupt firms

assessing civil penalties assessing criminal penalties requiring full disclosure of company transactions

The unspoken ethical tone in a company is called _____. Multiple choice question. company gossip corporate culture ethical climate ethics policies

ethical climate

True or false: Marketing ethics emphasizes honesty and transparency in advertising and data about advertising. True false question. True False

True

Which of the following is not an example of an ethical criterion? Multiple Choice Egoism. Concern for others. Principle. Corporate driven.

Corporate driven.

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is: Multiple Choice Operating under the compliance-based approach. Practicing "tone at the top." Operating under the integrity-based approach. Operating under the instrumental policy approach.

Operating under the compliance-based approach.

The U.K. Bribery Act prohibits bribery of which individuals? (Check all that apply.) Multiple select question. Private executives Only non-U.S. government officials Government officials Only CEOs

Private executives Government officials

Identify the purposes of corporate ethics reporting mechanisms. (Check all that apply.) Multiple select question. Providing general information about corporate topics. Providing clarifications regarding expected ethical behavior. Offering a way for employees to report ethical violations. Allowing managers to spy on their team members.

Providing general information about corporate topics. Providing clarifications regarding expected ethical behavior. Offering a way for employees to report ethical violations.

Which company ethics safeguard is commonly implemented as an employee "helpline"? Multiple Choice Top management commitment. Code of ethics. Reporting mechanisms. Compliance tracking.

Reporting mechanisms.

Researchers found that integrity-based ethics programs had what effects on employees? (Check all that apply.) Multiple select question. They made it easier to deliver bad news to supervisors. They enhanced their confidence in decision-making. They increased their willingness to seek ethical advice. They increased their sense of integrity.

They made it easier to deliver bad news to supervisors. They enhanced their confidence in decision-making. They increased their sense of integrity.

What is the primary motivation for companies to develop employee ethics programs? Multiple choice question. To establish strong legal defenses To reinforce the tone at the top To comply with laws and regulations To prevent future issues or misconduct

To comply with laws and regulations

What is the major reason for a firm to adopt an institutionalized ethics program? Multiple choice question. To comply with business laws. To enhance their ethical performance. To more easily report their ethical progress. To maintain their ethical performance.

To enhance their ethical performance.

The act of bribery is an economic force that _____. Multiple choice question. the world embraces increases product quality increases sales corrupts the financial exchange

corrupts the financial exchange

When an organization builds ethical safeguards into its daily routines, this is called _____. Multiple choice question. an ethical climate. the corporate code of conduct. institutionalizing ethics. ethics reporting.

institutionalizing ethics.

Which of the ethical safeguards tends to be the most costly and time-consuming? Multiple choice question. Ethics hotline Code of ethics Ethics training Ethics officer

Ethics training

Match the 3M code of conduct principle (in the left column) with the matching description (in the right column): Drag and drop application. be fair be loyal be good

be fair, matches, Play by the rules, whether working with government, customers, or suppliers. be loyal, matches, Protect 3M's interests, assets, and information. be good, matches, Obey the law and 3M's Code of Conduct.

Some economic impacts of bribery include ______. (Check all that apply.) Multiple select question. companies indicted for bribery typically paying fines and legal fees global bribery laws reducing payoffs around the world funds for roads and hospitals siphoning off to pay corrupt officials corruption scandals rarely affecting a company's stock performance

companies indicted for bribery typically paying fines and legal fees funds for roads and hospitals siphoning off to pay corrupt officials

Corporate culture is accurately described by which statements? (Check all that apply.) Multiple select question. The values and beliefs of prospective job applicants. A blend of customs, traditions, and shared meanings. Promoting the arts in the workplace. Observing "the way we do things around here."

A blend of customs, traditions, and shared meanings. Observing "the way we do things around here."

The core components upon which a company's ethical performance depends include: Multiple Choice The values and virtues of the managers. The personal character of the managers and employees. The traditions, attitudes, and business practices built into a company's culture. All of these answers are correct.

All of these answers are correct.

Match the professional code of conduct (in the left column) with its related guiding principle (in the right column). Drag and drop application. American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct Chartered Financial Analyst (CFA) Institute Code of Ethics and Standards of Professional Conduct American Marketing Association (AMA) Statement of Ethics Association of Information Technology Professionals (AITP) Code of Ethics and Standards of Conduct

American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, matches, Be responsible for moral judgments. Chartered Financial Analyst (CFA) Institute Code of Ethics and Standards of Professional Conduct, matches, Act with integrity, competence, diligence, respect and ethics. American Marketing Association (AMA) Statement of Ethics, matches, Do no harm. Association of Information Technology Professionals (AITP) Code of Ethics and Standards of Conduct, matches, Promote the understanding of information processing.

Which principle within 3M's code of conduct refers to keeping complete business records? Multiple choice question. Be profitable Be respectful Be honest Be accurate

Be accurate

Ethical challenges for information technology employees include: Multiple Choice Data privacy. Laptop speed. Copyright protection. Data privacy and copyright protection.

Data privacy and copyright protection.

According the 2017 survey published by Transparency International, which of the following were countries where having to pay a bribe was least likely? (Check all that apply.) Multiple select question. Libya Denmark Sudan New Zealand

Denmark New Zealand

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except: Multiple Choice The Public Interest. Objectivity and Independence. Due Process. Due Care.

Due Process.

In the case Equifax's Data Breach, which ethical climate dominated during the data breach? Multiple choice question. Team approach Benevolence Egoism Integrity

Egoism

Match the ethical criteria of ethical climate (in the left column) with its correct definition (in the right column). Drag and drop application. Egoism Benevolence Principle

Egoism, matches, Self-centeredness Benevolence, matches, Concern for others Principle, matches, Respect for one's own integrity

Researchers have shown that both values and mission policies are particularly popular in which parts of the world? (Check all that apply.) Multiple select question. Europe Japan Latin America United States

Europe Japan

Which type of employee is most likely to report ethical issues in the workplace? Multiple Choice Rank and file. Middle managers. Executives. Part-time workers.

Executives.

If a manager approaches ethics with benevolence in mind, he or she would stress what? Multiple Choice Friendly relations with an employee. Company rules and procedures. Laws and professional codes. Economic efficiency.

Friendly relations with an employee.

All of the following are considered to be ethical issues for marketing professionals except: Multiple Choice Fostering trust in the marketing system. Embracing ethical values. Doing no harm. Ignoring market fair dealing.

Ignoring market fair dealing.

Ethical challenges for information technology professionals include which issue? Multiple choice question. Laptop storage capacity Network reliability Intellectual property protection Adequate website speed

Intellectual property protection

Identity ways that the U.K Bribery Act is stricter than the U.S. Foreign Corrupt Practices Act (FCPA). Multiple select question. It contains a strict liability clause for failure to prevent bribery. There is no exemption for "facilitating payments." It does not require evidence of the intent to corrupt. It demands that all bribes be paid back with interest.

It contains a strict liability clause for failure to prevent bribery. There is no exemption for "facilitating payments." It does not require evidence of the intent to corrupt.

Bribery is accurately described by which statements? (Select all that apply.) Multiple select question. It is a payment often made to a government official. It is a payment based on the quality of service. It is a questionable or unjust payment that facilitates a transaction. It is a legal payment that facilitates a transaction.

It is a payment often made to a government official. It is a questionable or unjust payment that facilitates a transaction.

Which type of business is more likely to believe that a culture of ethics encourages workers to speak up? Multiple choice question. Medium sized service firms Small family-run businesses Online businesses, especially in finance Larger and more mature businesses

Larger and more mature businesses

A compliance-based ethics program is characterized by which statements? (Check all that apply.) Multiple select question. Focuses on employee responsibility Seeks to avoid legal sanctions Emphasizes ethical conduct Stresses punishment as a deterrent

Seeks to avoid legal sanctions Stresses punishment as a deterrent

A giant step is taken toward improving ethical performance throughout the company when: Multiple Choice The firm hires a university ethics professor to lecture employees on moral philosophy. The Justice Department launches an investigation of the firm's pricing practices. Senior-level managers signal to employees that they believe ethics is a high priority. A consumer hot line is created and staffed 24 hours a day.

Senior-level managers signal to employees that they believe ethics is a high priority.

Ethics Resource Center experts have stated that ethical culture impacts firms in what ways? Multiple select question. Strong ethical cultures can go too far and drive away good talent. Strong ethical cultures can mitigate behaviors that could harm the firm. Weak ethical cultures can foster ongoing bad behavior. Weak ethical cultures can trigger the workforce to create their own rules.

Strong ethical cultures can mitigate behaviors that could harm the firm. Weak ethical cultures can foster ongoing bad behavior.

According to a 2017 survey by Transparency International, which of the following countries were considered the world's most corrupt countries? (Select all that apply.) Multiple select question. Finland Syria Somalia Denmark

Syria Somalia

Evidence of "passive complicity" at Equifax after the data breach, according to the case Equifax's Data Breach, included which reasons? Multiple select question. The company delayed going public after the cyberattack. There was no evidence of "passive complicity" at Equifax after the attack. Credit reporting agencies are so heavily regulated they are always proactive. Top executives focused on their own stock portfolios.

The company delayed going public after the cyberattack. Top executives focused on their own stock portfolios.

The critical component in installing an effective ethics program is: Multiple Choice To allow all employees the freedom to act as they wish. In hiring an expensive ethics consultant. The integration of various ethics safeguards into a comprehensive program. Maintaining the position as the industry sales leader.

The integration of various ethics safeguards into a comprehensive program.

Which statements are true regarding the primary professional association that supports ethical initiatives for executives? Multiple select question. It changed their name to the Ethics Officer Association. The membership doubled from 2000 to 2004. It changed their name to the Ethics and Compliance Officer Association. It represents over fifty countries.

The membership doubled from 2000 to 2004. It changed their name to the Ethics and Compliance Officer Association. It represents over fifty countries.

Why does the Sarbanes-Oxley Act (SOX) limit auditors from offering non-audit consulting services? Multiple choice question. Auditors already make too much money. To prevent an accounting conflict of interest. Non-audit accounting services are always free. To reinforce the American Institute of certified public accountants code of conduct.

To prevent an accounting conflict of interest.

True or false: The consequences of foreign bribery deny U.S. companies the ability to compete in a fair and transparent marketplace. True false question. True False

True

The scope of the U.S. Foreign Corrupt Practice Act (FPCA) covers _____. (Check all that apply.) Multiple select question. across a range of industries only issues that occur in the United States only government contractors countries that have U.S. affiliates

across a range of industries countries that have U.S. affiliates

In the most effective ethics programs, the ethics officer reports to the ______. (Check all that apply.) Multiple select question. board of directors chief executive officer general counsel legal department

board of directors chief executive officer

The type of ethics policy that provides ethical rules for employees to follow is called a(n) _____. Multiple choice question. mission statement values statement instrumental policy legal compliance

instrumental policy

Accountants often face conflicts of interest such as _____. Multiple choice question. providing a good audit in return for the promise of more of the client's business willingly handing over all documents related to an audit giving a free gift to a client for their business over time raising questions about a client's financial records

providing a good audit in return for the promise of more of the client's business