GBU 325 Module 7 Organizational Ethics,

Following laws can always define proper action.

False

Illegal acts committed by employees, such as fraud and insider trading, is called blue-collar crime.

False

In most companies, a moral atmosphere cannot be detected.

False

In the United States, most ethics policies are primarily based on the company's mission and vision.

False

It is impossible for multiple ethical climates to exist within one organization.

False

The American Institute of Certified Public Accountants Code directs accountants to be responsible to their clients and their profession, but not to the public.

False

The majority of large U.S. corporations do not have codes of ethics.

False

"Do unto others as you would have them do unto you" is the basic tenet of the:

Golden Rule

Which ethical criterion is described by the idea that a company should strive for efficiency?

A) Egoism

The unspoken understanding among employees of what is and is not acceptable behavior is called:

A) Ethical climate.

If a manger approaches ethics with benevolence in mind, he or she would stress what?

A) Friendly relations with an employee.

Which of the following organization's code of ethics advocates "loyalty to your organization, justice to those whom you deal and faith in your profession?"

A) Institute for Supply Management.

Typically, ethics training is offered to:

A) Managers.

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:

A) Operating under the compliance-based approach.

Which of the following ethical principles is primarily a perfectionist rule for interpersonal relations? A. The Golden Rule B. The organization ethic C. The Doctrine of the Mean D. The principle of equal freedom

A. The Golden Rule

Which of the following ethical principles is based on the fundamental idea of "a command that admits no exception"? A. The categorical imperative B. The Doctrine of the Mean C. The disclosure rule D. The rights ethic

A. The categorical imperative

Identify the ethical principle that states that managers are responsible for the consequences when they create situations leading to both good and evil effects. A. The principle of proportionality B. The principle of justice C. The principle of utility D. The principle of equal freedom

A. The principle of proportionality

Integrity-based ethics programs:

B) Combines concern for the law with an emphasis on employee responsibility.

Ethics policies typically cover all of the following issues except:

B) Encouraging discriminatory personnel practices.

Recipients of the corporate ethics awards show that:

B) Firms can be financially successful and ethically focused.

In the United States and Latin America, ethics policies were found to be primarily:

B) Instrumental - providing rules and procedures for employees to follow to adhere policy and law.

Most ethics or compliance officers are generally entrusted to:

B) Reduce the risks to the company of employee misconduct.

When a bank employee makes trades using the firm's money without its authorization, the practice is called:

B) Rogue trading.

One of the most widespread and potentially powerful efforts to combat bribery was initiated by:

B) The Organization for Economic Cooperation and Development.

Which of the following is not a typical use of an ethics reporting mechanism?

B) To give employees an opportunity to discuss the appropriate rating on their annual performance reviews without management's influence.

Which sphere of justice requires that the benefits and burdens of company life be distributed using impartial criteria? A. The proportionality ethic B. Distributive justice C. Restorative justice D. Retributive justice

B. Distributive justice

Which ethical principle asserts that right actions are found in the area between extreme behaviors—labeled as excess on the one hand and deficiency on the other? A. The principle of equal freedom B. The Doctrine of the Mean C. The categorical imperative D. The theory of justice

B. The Doctrine of the Mean

Which of the following ethical principles is based on the idea that a manager can do whatever he wants as long as he does not break the law? A. The principle of equal freedom B. The conventionalist ethic C. The Doctrine of the Mean D. The disclosure rule

B. The conventionalist ethic

Ethical intuition is a form of social intuition.

TRUE

Natural selection is the evolutionary basis of ethics.

TRUE

Philosopher G. E. Moore believed that a good manager can "sense" the difference between right and wrong behavior.

TRUE

Rights have corresponding duties associated with them.

TRUE

The categorical imperative, an ethical guide for behavior, is based on the writings of German philosopher Immanuel Kant.

TRUE

The conventionalist ethic is a thin justification for questionable behavior by managers.

TRUE

The economic and political factors within a society affect an individual's chances for justice to be served.

TRUE

The idea that the needs of workers should be subordinate to the needs of the organization is fundamental to the organization ethic.

TRUE

The virtue ethic states that ethical behavior arises from the virtues within one's character.

TRUE

There is no specific part of the brain that makes ethical decisions.

TRUE

This ethical principle requires the manager to calculate which course of action, among alternatives, will result in the greatest benefit for the company and all workers.

The utilitarian ethic

In considering whether or not to do a certain action that involves ethical reasoning, a manager asks himself: "If I act in this way, do I want to read about my actions in 'The New York Times' tomorrow morning?" In this scenario, he is applying:

the disclosure rule

"Actions that promote happiness are right while actions that promote unhappiness are wrong" is the basis of the:

utilitarian ethic

One problem with _____ is that in practice it has led to self-interested reasoning.

utilitarianism

The idea that character development is the wellspring of ethical behavior is known as the:

virtue ethic

In making a decision using this principle, one must determine whether the harm in an action is outweighed by the good.

The utilitarian ethic

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except:

C) Due Process.

If a manager approaches ethical issues with a self-centered approach, emphasis will be on:

C) Economic efficiency.

Business managers need a set of ethical guidelines to help them:

C) Identify and analyze the nature of the ethical problem.

Building ethical safeguards into a company's everyday routines is called:

C) Institutionalizing ethics.

A giant step is taken toward improving ethical performance throughout the company when:

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

The critical component in installing an effective ethics program is:

C) The integration of various ethics safeguards into a comprehensive program.

Which of the following is not an example of a white-collar crime?

C) Theft.

Which ethical principle holds that a manager faced with a moral choice must act in a way that he/she believes is right and just for any person in a similar situation? A. The disclosure rule B. The Doctrine of the Mean C. The categorical imperative D. The Might-Equals-Right Ethic

C. The categorical imperative

Identify the principle that admonishes a manager to treat employees as ends in themselves and not to manipulate them simply as factors of production for the self-interested ends of the company. A. The disclosure rule B. The Doctrine of the Mean C. The practical imperative D. The organization ethic

C. The practical imperative

Which ethical principle is grounded on the idea that every individual has protections and entitlements that need to be respected by others? A. The intuition ethic B. The organization ethic C. The rights ethic D. The disclosure rule

C. The rights ethic

All ethics issues in business are the same.

False

A member of the Chartered Financial Analyst Institute (CFA) must:

D) All of the Above A. Promote the integrity of and uphold the rules governing global capital markets. B. Act with integrity, competence, diligence, respect, and in an ethical manner with the public. C. Maintain and improve their professional competence.

Which of the following is a typical practice in an ethics audit procedure?

D) All of the Above A. The auditor notes any deviations from the company's ethics standards that become evident during the ethics audit. B. The auditor brings deviations to the attention of the audit supervisor. C. Department managers are required to file a report with the auditor on the corrective action they took to deal with the deviation.

The Interactive Digital Software Association case exemplifies:

D) All of the Above A. The idea that laws can not always define proper action. B. The idea that ethical principles are broader than laws. C. Industries preempting legislation and voluntarily adopting ethically based practices.

The core components upon which a company's ethical performance depends include:

D) All of the Above A. The values and virtues of the managers. B. The personal character of the managers and employees. C. The traditions, attitudes, and business practices built into a company's culture.

By law, the financial records of publicly held companies are required to be:

D) Audited by a certified professional accounting firm.

Ethics reporting mechanisms have been:

D) Both A and B, but not C. A. Established to create an avenue for the company to obtain allegations of unethical conduct. B. Increasing in employee use and effectiveness.

Which of the following is not an example of an ethical criterion?

D) Corporate driven.

Ethisphere Magazine recognizes and rewards ethical leadership and business practices worldwide according to their:

D) Ethical Quotient (EQ).

Which U.S. Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates:

D) The U.S. Foreign ¬Corrupt Practices Act.

In considering whether or not to do a certain action based on ethical reasoning, a manager asks herself: "If I act in this way, would my family approve of my actions?" Which of the following ethical principles is she applying? A. The ends-means ethic B. The intuition ethic C. The organization ethic D. The disclosure rule

D. The disclosure rule

Aristotle's idea that "virtue requires moderation" is an essential part of the:

Doctrine of the Mean

Aristotle argued that the end justified the means.

FALSE

Compensatory justice requires inequitable compensation to victims.

FALSE

Ethical perfection is factual and real.

FALSE

Kant's categorical imperative is an ethical guideline that allows a manager to be flexible and act depending on the situation.

FALSE

Retributive justice allows that pay raises can be distributed on the basis of friendship rather than on performance.

FALSE

Rights are an absolute doctrine with definite limits.

FALSE

The Golden Rule of ethics is: "Justice is nothing else than the interest of the stronger."

FALSE

The Golden Rule of ethics suggests to managers that it is acceptable to treat workers as simply factorsof production that should be manipulated in the manager's best interest.

FALSE

The principle of equal freedom can act as a tiebreaker when the rights of two managers are in conflict.

FALSE

Utilitarianism protects both individual needs and community needs equally.

FALSE

A manager faced with an ethical dilemma asks herself how it would feel to explain the decision to a wider audience by using this ethical principle.

The disclosure rule

Which principle states that a manager will act ethically if the good effects outweigh the evil?

The principle of double effect

Which ethical theory postulates that people must act for the common good of the society in which they live?

The theory of justice

According to a recent Transparency International survey, Denmark and Sweden are two countries that are least likely to be subjected to bribery.

True

Any business that wished to do so can improve the quality of its ethical performance.

True

Ethics deal with human dilemmas that frequently go beyond the formal language of law.

True

Honesty, integrity and accuracy are absolute requirements of the accounting function.

True

In a benevolence ethical climate, the interests of the company's employees and external stakeholders most likely would be given high priority.

True

Managers, as major decision-makers, are one of the keys to whether a company will act ethically or unethically.

True

Personal values and moral character play key roles in improving a company's ethical performance.

True

The idea that a retail shop owner should pay damages to a customer who was hurt by a salesperson is consistent with the ethical principle of:

compensatory justice

When a manager "cuts corners" by acting in questionable ways, he/she is acting according to the:

ends-means ethic

The idea that a manager has the right to take a certain action as long as it does not deprive a worker of one of his rights is fundamental to the ethical principle of:

equal freedom

The idea that a manager simply "knows" the difference between right and wrong actions is fundamental to the:

intuition ethic

If a company issues ethics guidelines that include the statement: "If an action feels wrong, don't do it," the company is applying the:

intuition ethic.

When employees at Dow Chemical Company face an ethical decision they are told to ask: "What feels right or wrong about the situation or action?" This is an application of the:

intuition ethic.

A manager makes ethical decisions based on what he feels he can get away with given his power in the organization's hierarchy. He is using the principle of the:

might-equals-right ethic

The idea that the needs of workers should be subordinate to the needs of the organization is the basis of the:

organization ethic

The saying, "Your right to swing your fist ends where my nose begins" is a colloquial version of the:

principle of equal freedom

The set of rules that a manager can use to make decisions that have both good and bad consequences is the basis of the:

proportionality ethic

An ethical principle that requires punishment to be evenhanded and proportionate to transgressions is:

retributive justice

The idea that a bank cashier should not be fired for stealing $100 if a bank officer is allowed to keep his job after embezzling $1,000 is consistent with the ethical principle of:

retributive justice

A manager may comply with both the practical imperative and the Golden Rule by asking if she would change places with the person affected by the contemplated action. This is known as the:

reversibility test

When a manager is trying to decide how to treat a subordinate, he asks himself: "If I treat this person in this way, would I want to switch places with this subordinate and have my supervisor treat me in this way?" In this scenario, he is applying the:

reversibility test