Chapter 9 Concept Quiz

The FSGO utilizes a "carrot-and-stick" philosophy to encourage organizational compliance. What is the ultimate "stick" the FSGO uses?

Being fined or put on probation

What did the Sarbanes-Oxley Act put more pressure on ethics officers to monitor?

Financial reporting

What does a values orientation strive to develop?

Shared values

To be effective, ethics training must start with a foundation that includes _______.

a code of ethics

Which of the following best describes an ethics audit? a. A systematic evaluation of an organization's ethics program and performance to determine effectiveness b. A perspective that takes into account the social, environmental, and financial impacts of decisions made within an organization c. A performance management tool that details a company's performance through financial and nonfinancial perspectives, giving management a comprehensive view of the business d. A framework for evaluation of firm performance in the areas of environmental, social, and governance e. A prominent framework that companies have adopted to report their social and sustainability progress

a. A systematic evaluation of an organization's ethics program and performance to determine effectiveness

Which of the following statements describes the primary implication of the "bad apple-bad barrel" analogy? a. Fostering ethical decision making within an organization requires terminating unethical employees and improving the firm's ethical standards. b. Organizations cannot become bad barrels. c. There are no bad apples, only bad barrels. d. Pressures to succeed create opportunities that reward ethical decisions. e. Eliminating bad apples will not improve the firm's overall behavior.

a. Fostering ethical decision making within an organization requires terminating unethical employees and improving the firm's ethical standards.

Which of the following are part of the framework for an ethics audit? a. Gain support of top management and board of directors b. Verify the results yourself c. Report the findings to the audit committee and, if approved, to managers and stakeholders d. Collect and analyze relevant information in each designated subject matter area e. Define the scope of the audit process

a. Gain support of top management and board of directors c. Report the findings to the audit committee and, if approved, to managers and stakeholders d. Collect and analyze relevant information in each designated subject matter area e. Define the scope of the audit process

Successful ethics training should accomplish which of the following? a. Identifying designated ethics personnel b. Allowing employees to help set the firm's policies and expectations c. Provide employees a means to address and resolve ethical issues d. Leaving clear opportunities for employees to engage in unethical behaviors e. Help employees identify the ethical issues

a. Identifying designated ethics personnel c. Provide employees a means to address and resolve ethical issues e. Help employees identify the ethical issues

Which of the following scenarios are unethical? (Select four) a. Your manager asks you to book some sales revenue from the next quarter into this quarter's sales report to help reach target sales figures. b. Over a cup of coffee, you tell a friend confidential information about a pending merger at your company. c. You are fired from your company, but before leaving to take a position with another company, you take a confidential list of client names, e-mail addresses, and telephone numbers that you compiled for your former employer. d. You want to skip work to go to a baseball game, but you need a doctor's excuse, so you make up some symptoms so that your insurance company pays for the doctor's visit. e. After attending ethics training, you share your learnings with a coworker.

a. Your manager asks you to book some sales revenue from the next quarter into this quarter's sales report to help reach target sales figures. b. Over a cup of coffee, you tell a friend confidential information about a pending merger at your company. c. You are fired from your company, but before leaving to take a position with another company, you take a confidential list of client names, e-mail addresses, and telephone numbers that you compiled for your former employer. d. You want to skip work to go to a baseball game, but you need a doctor's excuse, so you make up some symptoms so that your insurance company pays for the doctor's visit.

Which of the following is a common mistake that firms make when developing an ethics and compliance program? a. Developing programs that fully address the needs of employees b. Transferring their "American" programs to the firm's international operations c. Upper management taking ownership of the program d. Setting realistic and measurable goals e. Using case studies and small-group exercises

b. Transferring their "American" programs to the firm's international operations

Which of the following are responsibilities of an ethics officer? a. Making government laws related to business ethics b. Conducting training programs for the public c. Assessing the needs and risks that an organization-wide ethics program must address d. Monitoring and auditing ethical conduct e. Developing and distributing a code of conduct or code of ethics

c. Assessing the needs and risks that an organization-wide ethics program must address d. Monitoring and auditing ethical conduct e. Developing and distributing a code of conduct or code of ethics

Which of the following is a performance management tool that details a company's performance through financial and nonfinancial perspectives, giving management a comprehensive view of the business? a. ESG b. Six Sigma c. Triple bottom line d. Global Reporting Initiative (GRI) e. Balanced scorecard

e. Balanced scorecard

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

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

The Federal Sentencing Guidelines for Organizations (FSGO) _______.

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

Increasingly, corporations are viewed not merely as profit-making entities but also as _______.

moral agents accountable for their conduct to their stakeholders