Managerial Ethics quiz 2

Businesses often want to avoid lawsuits if possible because of the high costs involved.

A big box retailer announced plans to open one of its superstores in a small rural community. After a group of protestors filed a lawsuit against the company, the retailer terminated its development agreement instead of battling it out in court. Which of the following does this scenario exemplify?

Insider trading

A board member of a pharmaceutical company learned that a drug was going to be recalled. She alerted her friends and family so they could sell their stocks in the company before the news became public. In which of the following behaviors did the board member engage in this scenario?

Voluntary boundaries

A fitness equipment company donates money, resources, and employee time to causes and activities that improve their communities. For example, the company donated $20,000 worth of equipment to a local community center for teens. The donations in this scenario exemplify to the concept of

facilitation

A payment made to obtain or retain business that is not considered a bribe within the United States is defined as

ethical issue

A problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong is called a(n)

Gender

A restaurant company is nominated for an award by a prestigious magazine. The magazine invites its readers to vote in an online poll to determine the winner. Liam, the restaurant owner, suggests the company pay people to vote for the restaurant so it can win the award, but his co-owner Olivia believes this would be unethical. Most of the company's female employees side with Olivia and say they will not tolerate this action. What individual factor does this relate to?

Corporate culture

A set of values, norms, and artifacts—including ways of solving problems that members (employees) of an organization share—describes which of the following?

Core practices

The National Advertising Division (NAD), an investigatory division of the BBB's National Advertising Review Council, recommended that an Internet communications company discontinue its "fastest overall speeds" claims so as to not mislead consumers. Although the communications company is not legally mandated to follow the decision, advertising perceived to be misleading could attract the attention of the media and public interest groups if not corrected. Which of the three dimensions of institutionalization is this related to?

attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee

The Sarbanes-Oxley (SOX) Act

organizational culture

The U.S. Sentencing Commission continued to emphasize that there should be standards and procedures in place to prevent and detect misconduct along with the importance of

Consumer Financial Protection Bureau (CFPB)

An independent agency within the Federal Reserve System regulates the offering and provision of consumer financial products or services under the Federal consumer financial laws. For example, it enforces a federal ban on discrimination in lending cases where a customer is denied credit because of their sexual orientation or gender identity. Which of the following independent agencies is described in this example?

Normative approach

An insurance company incorporates stakeholder objectives into its corporate core values—honesty, caring, and integrity; inclusive diversity; engagement; superior performance; and accountability. These values are then implemented into the business. Which of the following describes the concept that is illustrated in this scenario?

The Sarbanes-Oxley (SOX) Act

Asia, a new financial manager for a publicly traded technology company, works closely with Dan, its chief financial officer. While helping Dan organize his files, she notices an accounting error that made the firm appear more profitable than it really was. As Asia digs deeper and finds more errors, she considers that perhaps Dan is engaging in unethical behavior. The next day, a federal regulatory agency begins an investigation of the company. Asia feels comfortable sharing her findings because she knows the company cannot fire her for doing so. Which of the following laws protects Asia in this scenario?

-Tesla: Always do you best; No forecast is perfect but try anyway; Respect and encourage people; Always be learning; Respect the environment -Zillow: Customers are our north star; Turn on the lights; Do the right thing; Own it; Be together; Include and empower; Think big and move fast; Deliver quality on time every time -Marriott: Put people first; Pursue excellence; Embrace change; Act with integrity; Serve our world

Which of the following are examples of an organization's core values?

-Organizational factors -Ethical issue intensity -Individual factors

Which of the following are factors in the ethical decision-making model? (Select three)

Equality, reciprocity, and optimization

Which of the following are the three fundamental elements that motivate people to be fair?

Dishonesty

Which of the following can be broadly defined as a lack or absence of integrity, incomplete disclosure, and an unwillingness to tell the truth?

The Office of Financial Research

Which of the following is an office created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and is charged with creating a better system for analyzing the financial industry?

Relativism

Which of the following philosophies evaluates ethicalness subjectively on the basis of individual and group experiences?

Deontology

Which of the following philosophies focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences?

White-collar criminals tend to be people in positions of power, trust, respectability, and responsibility within a business or organization.

Which of the following statements about white-collar criminals is true?

Interactional

Which of the following types of justice is based on the relationships between organizational members, including the way employees and management treat one another?

institutional theory

Bonnie, a customer service agent, faces normative pressures from the religion she practices to behave in a certain way. The leader of her church always says that you should treat others how you wish to be treated. Bonnie applies this rule at work. For example, when a customer calls and says they cannot make the minimum monthly payment on their account due to financial hardship, Bonnie waives the fee because she believes it is the right thing to do. The way Bonnie is influenced by her religious beliefs relates to

The opportunities that employees have for unethical behavior in an organization can be deterred with formal codes, policies, and rules adequately enforced by management.

Charles Schwab, a financial investment management firm, has a detailed code of business conduct and ethics that covers a wide range of topics from compliance with laws, rules, regulations, and policies to good business practices. Which of the following explains why a company would desire to adopt formal codes, policies, and rules?

abusive behavior

Chelsea did not like it when her coworker Cho disagreed with her openly during a team meeting. In response, Chelsea decided to ignore Cho. When Cho asked Chelsea a question, Chelsea would pretend she didn't hear her. Chelsea's behavior in this scenario is an example of

-Misuse of company time -Safety violations -Abusive Behavior

Chris, as the CEO of a startup, understands that failure to acknowledge or be aware of ethical issues within his company is a great danger. For this reason, he is trying to improve his ethical awareness. Which of the following are ethical issues that Chris should be aware of? (Select three)

Dodd-Frank Wall Street Reform and Consumer Protection Act

Paulina witnessed misconduct at the publicly traded firm where she was employed. She provided her detailed, firsthand account to the Securities and Exchange Commission. As a result of her intel, millions of dollars were returned to harmed investors. Paulina subsequently received a $1 million reward. Paulina received this reward under which of the following laws?

Which of the following accounting codes are considered champions for rules-based standards? (Select two)

-American Institute of Certified Public Accountants (AICPA) -U.S. Generally Accepted Accounting Principles (US GAAP)

uses a legalistic approach to ethics

A compliance culture is one that

40%

Based upon author research and industry reports, what percentage of employees always try to follow company policies?

puffery

Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely is known as

Exploiting the labor markets of host countries

Globo Tech, a multinational smartphone company, has several factories in Thailand and China where labor is affordable. Globo Tech pays very low wages compared to local employers in Thailand and China, but people need the work. To which common criticism of MNCs does this scenario relate?

The code is not promoted and employees do not read it.

Go Athletics, a sportswear and athletic equipment retailer, has a detailed code of ethics in understandable language that is easily downloaded from the employee online portal or available in print, but the company repeatedly detects ethical misconduct. For example, the code of conduct explicitly states that employees must offer new gym equipment for sale to customers for at least one week before purchasing it for themselves. Yet employees often engage in this behavior. Go Athletics sends a survey to employees to understand why this is happening. They discover that frontline employees are unaware of the code of ethics. Which of the following explains why Go Athletics' code of ethics failed in this scenario?

Centralized

Greta, the CEO of The EV Company, believes that decision-making authority should be concentrated in the hands of top-level managers. For this reason, Greta rarely delegates responsibility to lower levels. Greta believes this is the best way to manage The EV Company since she is often responsible for high-risk decisions. Which type of organization is described in this scenario?

Virtue ethics

Which of the following philosophies argues that ethical behavior involves not only adhering to conventional morality standards but also requires considering what a mature person with a "good" moral character would deem appropriate in a given situation?

Nia will attempt to determine consensus before deciding whether to tell her prospective customer about the bolts' defect rate.

Nia, a sales representative for Midwest Hardware, a company that manufactures nuts and bolts, hopes to obtain a large sale from a construction firm that is building a bridge across the Mississippi River near St. Louis, Missouri. The bolts manufactured by Midwest Hardware have a 3 percent defect rate, which—although acceptable in the industry—makes them unsuitable for use in certain types of projects, such as those that may be subject to sudden, severe stress. The new bridge will be located near the New Madrid Fault Line, the source of the United States' greatest earthquake in 1811. The epicenter of that earthquake is less than 200 miles from the new bridge site. Though there is a 50 percent chance an earthquake will occur along the fault line within the next ten years, according to experts, bridge construction in the area is not regulated by earthquake codes. If Nia wins the sale, she will earn a commission of $25,000 on top of her regular salary. But if she tells the contractor about the defect rate, Midwest may lose the sale to a competitor that markets bolts with a lower defect rate. Nia's ethical issue is whether to point out to the bridge contractor that, in the event of an earthquake, some Midwest bolts could fail, possibly resulting in the collapse of the bridge. Which of the following will she choose to do, if Nia is a relativist?

The act/agency that enforces regular surprise inspections to ensure businesses maintain safe working environments is called the

Occupational Safety and Health Administration

egoism

Right or acceptable behavior in terms of the consequences for the individual is known as

Which of the following statements is true?

Some ethical issues are difficult to recognize because they are gray areas that are hard to navigate.

leadership

The ability or authority to guide and direct others toward a goal is defined as

ethical awareness

The ability to perceive whether a situation or decision has an ethical dimension is defined as

awareness

The ability to perceive whether a situation or decision has an ethical dimension is known as ethical

technology

The application of scientific knowledge to efficiently solve real-world problems is known as _______.

the digital divide

The concept of varying levels of access to technology across social, geographical, and geopolitical groups is known as _______.

Kant's Categorical Imperative

The famous statement, "Act as if the maxim of the action were to become by will a universal law of nature," is called

Vertical system

Which of the following is created when a channel member (manufacturer, wholesaler, distributor, or retailer) has control of the entire business system, via ownership or contract, or through its purchasing ability?

Ethical issue intensity is best defined by which of the following?

The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization

bribery

The practice of offering something in order to gain an illicit advantage is known as

the self-reference criterion

The unconscious reference to one's own cultural values, experiences, and knowledge is called _______.

uncertainty avoidance

The way that members of a society respond to uncertainty or ambiguity is referred to as

Power distance dimension

Which of the following is defined as the power inequality between superiors and subordinates?

Opportunity

Which of the following is the result of conditions that either provide rewards, whether internal or external, or fail to erect barriers against unethical behavior?

-Provide ongoing feedback to employees about how they are handling ethical issues. -Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma they do not know how to resolve. -Allow a mechanism for employees to voice their concern that is anonymous but provides answers to key questions.

Toby manages the ethics training program for a technology company. The program identifies key risk areas employees of the company might face, such as insider trading, conflicts of interest, and issues relating to emerging technologies. Toby develops a series of role-play activities so employees can gain experience in handling ethical issues. Through the program, Toby communicates that wrongdoing is not supported by the organization and employees are individually accountable for their behavior. Which of the following are additional key goals Toby should focus on for the ethics training program in this scenario? (Select three)

Businesses may improve their communities, reduce government involvement by providing assistance to stakeholders, develop employee leadership skills, and foster an ethical culture and values that deter organizational misconduct by addressing which one of the following?

Voluntary responsibilities

Financial reporting

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

Shared values

What does a values orientation strive to develop?

-Avoid -Answer -Recover

Which of the following are steps in the RADAR model? (Select four)

5G

Which of the following technologies lets carriers transmit data at incredibly fast speeds, with the ability to download an entire movie in a few seconds?

high ethical issue intensity

Xi works for a clothing manufacturer. The company, which is very eco-friendly, uses materials made from recycled plastic and stresses the importance of recycling in general. When Xi discovers his coworker is improperly disposing of waste, he considers the matter to be extremely important because Xi knows his organization's stance on the issue. In this scenario, Xi demonstrates

Internet of Things (IoT)

You Tech makes smartwatches and smartphones that can send and receive text messages, send and receive phone calls, track vital signs, and more. Users can check their vitals on their smartwatches, on their computers, or using their in-home virtual assistants. You Tech also makes a smart home security system with sensors, alarms, cameras, and microphones that are all connected to provide 24/7 security, allowing users to control their home security systems from their smartphones. Which of the following describes the type of device found in this example?

Your Corp. has a strong ethics program.

Your Corp., a cosmetics company, has several policies and procedures in place to deter and detect misconduct. Its international code of conduct is designed to guide business at Your Corp.'s international hubs while its supplier code of conduct dictates how companies in its supply chain should behave. For example, ingredients sourced for Your Corp. products must come from suppliers who meet certain sustainability criteria. Your Corp.'s ethics officer oversees the ethics program and the toll-free ethics hotline. Which of the following statements is true in this scenario?

The Sarbanes-Oxley (SOX) Act was passed to provide federal oversight of

corporate accounting practices

Fines or imprisonment may be imposed as punishment for breaking the law under

criminal law

Accountants, lawyers, financial rating agencies, financial reporting services, and risk assessors of financial products—who must trust and be trusted by stakeholders to make business work—are all examples of

gatekeepers

Externally imposed levels of appropriate conduct, such as laws, rules, and regulations, are known as

mandated boundaries

Opportunity can best be described as

the conditions in an organization that limit or permit ethical or unethical behavior

Institutional theory can be defined as

the theory that organizations operate according to taken-for-granted institutional norms and rules

Intellectual property

A GPS navigation software company sued a food delivery company after it was discovered former employees of the navigation company shared confidential source code with the food delivery company to power its GPS system for food delivery drivers. Which ethics issue in technology is this scenario related to?

Yes, because an act utilitarian might argue that bribery is acceptable if it results in the greatest utility.

A baggage handling manager believes their firm will not win a contract with a prominent airline unless an executive at the airline receives a bribe, and if the firm does not obtain the contract, it will have to lay off hundreds of baggage handlers across dozens of airports. The manager argues that bribery is justified because saving hundreds of jobs across the country creates more utility than obeying a law. Is it possible for this manager to be an act utilitarian? Why?

integrity

A car manufacturer claims it is committed to quality in the "core values" listed on its website; however, the company's employees often sacrifice quality in order to increase output. Furthermore, the managers routinely set goals related to output, but they do not set goals related to quality. Based on the information in this scenario, the car manufacturer lacks

big data

A coffee company has had a digital app for years. The app was originally intended for its 50,000 loyalty program users to collect points and earn free coffee. However, the company decides to open up the app to its much broader group of 300,000 customers. Now, any customer can use the app to pay for coffee, and the company can collect customer data through app activity, order history, and more. This type of data is an example of _______.

Avoid

A company develops a social media code of conduct for its sales representatives to provide guidelines and best practices for business-related activity on social networks and to avert misconduct disasters. Which part of the RADAR model is demonstrated in this example?

5G

A company sells virtual home assistants. The company's machines can collect and transfer more data than ever before due to a global increase in bandwidth. Internet of Things (IoT) advancements such as this make the company's devices more powerful. For example, data can be collected from a user's other IoT devices such as smartwatches and smartphones and then transmitted to the virtual assistants faster than ever before. This advancement in turn leads to increased use and consumption of data, creating personal data privacy issues that the company must consider. Which emerging technology does this example relate to?

Centralized

A company that is characterized by low flexibility, low problem recognition, and clear-cut division of labor has which type of organizational structure?

Balanced scorecard

A company wants to measure How do our customers see us?, What are we trying to do?, What do we need to improve?, and How do our shareholders view us?. To do this, the firm selects an integrity management framework that incorporates nonfinancial performance indicators into the evaluation system. The metrics to be measured are financial, customer/stakeholder, internal process, and organizational capacity. Which integrity management framework is described in this scenario?

Groupthink

A customer service manager at a watch company notices in its customer relationship management system that a well-known celebrity has purchased a watch from the company. In a cross-functional team meeting between customer service, sales, marketing, and top-level management, the customer service manager shares this information. The company's CEO suggests they send the celebrity a second, complimentary watch in the hopes that they will mention the company on social media, resulting in valuable publicity. The sales manager and customer service manager agree that this is a good idea. The marketing manager feels this is a violation of the celebrity's privacy and a misuse of customer data but decides that since the CEO and other managers think it's a good idea, it would be best to just go along with them. Which of the following describes the phenomenon that occurred in this scenario?

Executive compensation

A global entertainment company's shareholders voted against increasing its CEO's salary and bonus package. Though the compensation package was tied to meeting performance targets, shareholders said the substantial payments to the CEO were concerning. To which compensation issue is this scenario related?

Reciprocity

A large online retailer decided to increase wages above the minimum wage because it recognized that its employees put in a great deal of effort and believed its employees should be compensated accordingly. Which of the following describes this business decision?

Flood attacks

A major retailer is introducing a controversial children's toy despite protests from the public. A group of hackers decides to attack the company's network on the day of the product launch. They inundate the retailer's domain names with malicious requests in order to create connectivity problems and service failures for legitimate users of the system. Which of the following is the type of cybercrime described in this scenario?

The stage of universal ethical principles

A marketing manager for a furniture company argues for discontinuing a popular bookshelf that has caused the death and injury of children because the inalienable right to life makes killing wrong, regardless of the reason, and therefore, company profits are not a justification for the continued sale of the bookshelf. This manager, who is more concerned with social ethical issues and therefore does not rely on the business organization for ethical direction, is in which of the following stages of Kohlberg's model of cognitive moral development?

Machine-to-machine (M2M) communication

A pharmaceutical company that studies infectious diseases emphasizes the importance of cleaning and sanitization procedures by providing employees with radio-frequency identification (RFID) lanyards that track when employees discard waste, clean equipment, and sanitize their hands based on proximity to strategically located readers. Which of the following describes this example?

Corporate culture

A retailer has six core values: think creatively, speak your mind, influence the future, always be learning, be truthful, and be transparent. These shared values influence the behavior of the company's employees. Which of the following do the shared values mentioned in this scenario relate to?

The stage of punishment and obedience

A sales representative from a cosmetics company offers a salon employee a free gift valued at $500. The salon employee accepts the gift from the representative because they believe there is a slim chance of being caught and punished by management. Which stage of Kohlberg's model of cognitive moral development does this scenario represent?

-Revise the code every year with input from organizational members and stakeholders. -Communicate the code frequently and in language that employees can understand. -Make the code understandable by providing examples that reflect values.

A small manufacturer needs to develop and implement a code of ethics for its 200 employees. Previously, the company did not have a formal code of ethics, but after securing a lucrative government contract, the manufacturer decided it was time. First, the manufacturer considered areas of risk and stated the values and conduct necessary to comply with existing laws and regulations. Next, the company identified values that specifically addressed current ethical issues. Which of the following are additional factors the small manufacturer should consider when developing and implementing its code of ethics? (Select three)

It relies upon an explicit mission statement that defines the core values of the firm.

A values-based ethics culture is best described by which of the following statements?

Children's Online Privacy Protection Act (COPPA)

A virtual gaming website was accused by the Federal Trade Commission of illegally collecting personal information from children. New users were not prompted to provide their birthdates, so children were able to freely register. When the issue was initially discovered, the company swept the concern under the rug rather than attempting to obtain parental permission for its underage users. Which privacy law did the virtual gaming website violate in this example?

difference principle

ABC Candy sources its cocoa from a supplier with a transparent supply chain, a strict code of ethics, and a strong focus on human rights. Though the supplier's product is expensive, ABC Candy feels that working with the supplier offers many benefits to the impoverished community in which it operates. When a new supplier with lower ethics standards approaches ABC Candy and offers to supply the same product for a lower price, ABC Candy declines because it fears the local population could be harmed due to poor working conditions, child labor, or other human rights issues. In this scenario, ABC Candy operates according to the

Accounting codes

ABCD, a multinational professional service network, is looking for a discipline-related code of conduct to improve the company's ethical behavior. The CEO of ABCD has in mind a set of rules-based standards for simple comparisons of financial statement data between companies and decreased likelihood of accounting-related lawsuits. Which type of discipline-related codes does this scenario relate to?

The U.S. Foreign Corrupt Practices Act (FCPA)

ABW, a multinational retailer, has subsidiaries in India, Brazil, and Mexico. ABW's subsidiary in Mexico regularly pays government officials large sums to help expedite the permit approval process, allowing ABW to open stores faster. The leaders at ABW in Mexico intentionally cover their tracks in order to conceal these bribes. Which law does the behavior in this scenario violate?

They are in different stages of cognitive moral development

According to Kohlberg's model of cognitive moral development, why do different individuals make different decisions in similar ethical situations?

Compliance culture

Acme Corp., a small robotics firm, experiences overnight success after a major retailer signs a multi-million-dollar contract with them. The start-up, which initially only had two employees, now must hire hundreds of employees. As part of the contract with the major retailer, Acme Corp. must develop a code of conduct. To do this, Acme Corp. uses a legalistic approach, focusing on laws and regulatory rules to create its codes and requirements. Which approach is Acme Corp. taking in this scenario?

Risk compartmentalization

Adam, Kendra, and Camryn work for a financial services company. Adam works in marketing, Kendra works in sales, and Camryn works in accounting. When they make decisions, they all focus on the bottom line and only consider how their decisions will impact their own department. Because of this, Adam, Charlotte, and Camryn are unaware of the overall consequences of their actions on the financial services company as a whole. Which of the following concepts does this scenario describe?

Keynesian capitalism

Adonijah owns a structural engineering firm. Business is slow due to a recent economic downturn, and he hears from multiple clients that many engineers, architects, and construction workers are out of work. Adonijah advocates for government spending on labor-intensive infrastructure projects to stimulate employment during the economic slump. Which form of capitalism does Adonijah believe in?

As a moral agent, Aero is required to obey the laws and regulations that define acceptable business conduct.

Aero Corp., a multinational biotechnology corporation, made illicit payments to leaders at pharmaceutical companies in order to win their business. When the illicit payments were uncovered, Aero's reputation was tarnished and Aero's leaders were replaced as a result. The new management team established an ethics and compliance system designed to proactively prevent misconduct and to detect it when it occurs. Which of the following statements is true of Aero in this scenario?

Perform an ethics audit.

After a series of ethical disasters in the banking and finance industries, Eloise, an executive at a mid-sized bank, decides it would be wise to engage in ethical disaster-recovery planning. She begins by assessing the bank's values, but she's unsure of what other actions to take. Eloise hires an ethics expert to consult with the bank and to help with its ethical disaster-recovery planning. Which of the following is an action that the consultant might recommend?

Right to Be Forgotten law

Alan is a teacher in the European Union. He hates that when you Google his name, dozens of old articles appear in the search results about a shoplifting incident from when Alan was a teenager. Alan can request that Google remove the unwanted links from Google search results through the _______.

It is a requirement under Sarbanes-Oxley 404.

Alejandro works for one of the "Big Four" accounting firms. As the chief ethics and compliance officer, Alejandro must assess the effectiveness of the organization's internal controls and commission audits of these controls by an external auditor in conjunction with the audit of its financial statements. Why is management required to do this?

To develop and implement policies and procedures related to privacy protection

Alejandro, a chief privacy officer (CPO), is knowledgeable about privacy issues such as surveillance and employee privacy as well as relevant laws. Alejandro has a background in crisis management, so he knows what to do to prevent, detect, and address an ethical crisis. Why do organizations hire CPOs such as Alejandro?

formal group

An assembly of individuals with an organized structure that is explicitly accepted by the group is defined as a(an)

The digital divide

An internet and cable provider created a program to provide free or low-cost internet to economically marginalized kids across America. In addition, the company worked to expand its footprint in rural communities that were previously not serviced by any of the major internet service providers. Which ethics issue in technology does this example address?

Apathetic

Angelina is hired as an inside sales representative for a cosmetics company. Though she was initially excited to join the team, she is disappointed when she notices almost immediately that her coworkers focus on their own self-interest. One day, Angelina makes a record-breaking sale. She anticipates management will be excited, but she is not recognized for her efforts. By the end of her first month, Angelina begins to feel that management is undervaluing employee efforts. What kind of culture is described in this scenario?

Decentralized

Anthony, the CEO of a software-as-a-service company, believes that individuals at his company should feel empowered to make decisions. He encourages employees at all levels to make big decisions and ignore the traditional chain-of-command. Anthony believes this is what allows his employees to have high problem recognition. Which type of organization is the software-as-a-service company in this scenario?

mandated boundaries

As the chief ethics officer of a biotechnology company, Drake is responsible for monitoring the three dimensions of institutionalization. Currently, Drake is reviewing how his company operates within the externally imposed levels of appropriate conduct—such as laws, rules, and regulations—known as

June does not have the power to impose her own moral perspective on others.

At work, June is an entry-level employee. She likes to observe the actions of her coworkers and determine consensus before moving forward with decisions, but she is rarely given the opportunity to do so. Instead, she usually must follow the lead of her manager who takes a utilitarian approach. Which of the following explains why June goes along with her manager?

Individuals may use differing moral philosophies depending on whether they are making a personal decision or a work-related decision.

At work, Sweta tends to adopt a utilitarian perspective, often conducting cost-benefit analysis to assess which alternatives create the greatest utility. However, in her personal life, Sweta is more of a virtue ethicist, believing that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation. Which of the following explains Sweta's behavior in this scenario?

A multinational corporation

Azaza Superstore, a public company with operations in more than 200 countries, does not have significant ties to any one nation. Azaza was founded in the United States, but now it is a globally recognized brand with a strong global strategy. Azaza is so large that it generates higher revenue than the gross domestic product (GDP) of some of the countries where it does business. Which of the following would Azaza Superstore be categorized as?

Exacting

Bao works on the production line for a car manufacturer. Her supervisor closely monitors Bao's productivity and holds her to high standards, often to her detriment. For example, one day Bao did not feel well and asked to go home early. Management denied her request because Bao had not met her quota for the day. Bao often feels the company only focuses on its own interests. What type of culture is described in this scenario?

Ethics audit

Before setting up an ethics program, a company voluntarily calls for an evaluation that will identify the firm's ethical standards as well as its existing policies and risk areas. What is this evaluation called?

Coaching

Beth, a supply chain manager for a major drugstore retailer, manages two entry-level employees. Beth believes it is important to help her subordinates develop the skills they need for long-term success at the company. For example, she teaches them how to forecast inventory needs and how to identify potential areas at risk for supply chain disruption. Beth delegates responsibility to the employees in order to help them build their skills and gain experience. Which type of leader is Beth in this scenario?

Laissez-faire capitalism

Cal, a fast-food restaurant chain owner, has seen the negative effects of regulation on his business. Cal believes that if the government would leave the economy—and his business—alone, individuals would be able to freely conduct their own economic affairs. Which form of capitalism does Cal believe in?

What ties an organization's products directly to a social concern through a marketing program?

Cause-related marketing

-Low problem recognition -Clear-cut division of labor -Many formal rules

Characteristics of a centralized organization include which of the following?

-Elements of culture are unwritten. -Culture is relatively stable -Culture is shared among individuals belonging to a group or society.

Characteristics of culture include which of the following? (Select three)

A business team

Charlotte, Jamie, and Andrew are part of an assembly of individuals with an organized structure. Charlotte is from the marketing department, Jamie is from the purchasing department, and Andrew is from the finance department. Charlotte is the leader and acts as a facilitator at meetings. Charlotte, Jamie, and Andrew all actively participate in the discussions that take place. Together, the three individuals decide on the disbursements of work assignments. Which type of assembly are Charlotte, Jamie, and Andrew part of in this scenario?

United Nations Global Compact

Cocoa & Co, a chocolate company, joins a global organization that supports business responsibility. Cocoa & Co. has agreed to abide by the organization's set of 10 principles that promote human rights, sustainability, and the eradication of corruption. For example, one of the principles relates to human rights abuses. Since the cocoa supply chain is known for its child labor issues, Cocoa & Co. pledges to only source cocoa from regions where child labor is not an issue. Which global organization is Cocoa & Co. a member of in this scenario?

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

Codes of conduct and codes of ethics can be described by which of the following statements?

Which of the following refers to precedents established by judges?

Common Law

nonverbal communication

Communication that is not written or oral, but rather expressed through actions, body language, expressions, or other methods is known as _______.

-Competing -Collaborating -Accommodating -Avoiding

Conflict management styles include which of the following? (Select four)

machine-to-machine (M2M) communication

Connected devices may interact without human intervention through the use of _______.

Authoritative

Considered to be one of the most effective styles, which type of leader facilitates change, creates a strongly positive performance climate, and inspires employees to follow a vision?

Big data

Consumer shopping habits, social media activity, and web browsing history are all examples of which of the following?

white-collar crime

Crimes perpetrated every year by nonviolent business criminals are known as

Moral philosophy

Daniel, a production manager at a company that manufacturers corrugated boxes, has just learned that the organization experienced a significant drop in profits during the previous two quarters and its executive team has decided to delay the informal annual bonus employees have come to expect at this time of the year until the company's financial situation improves. Daniel must now make a decision about whether or not to notify employees in advance of this planned change in practice. Which of the following concepts best captures the situation described in this scenario?

Dante lacks emotional intelligence.

Dante, the CEO of an office supply company, has become increasingly out of touch. He used to work on the frontlines selling paper products, but as he climbed the ranks, Dante has spent less time in meaningful interactions with other employees. When an entry-level employee expresses joy that it is payday, Dante offhandedly says that he never notices when it's payday because he always has enough money in his bank account. Dante's lack of self-awareness has left his employees unhappy. Which of the following statements is true in this scenario?

corporate culture

Direct statements, indirect statements, gestures, looks, labels, promotions, programs, and legends (or the lack thereof) can all be used to informally express

An ethical corporate culture must be maintained through effective leadership at all times during the firm's existence.

During its 100-year history, a company departed from its founder's original values. Over time, leaders became more and more focused on the bottom line and less committed to operating with integrity. This led to a toxic organizational culture that encouraged doing whatever it took to secure sales. Which of the following statements does this scenario support?

Affirmative action programs

Efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against are involved in which of the following?

Organizational factors

Elena, an employee at ABC Marketing, has observed misconduct at work and wonders if she should report it. In the end, she decides not to do so because of the possible repercussions within her workplace. Which of the following is the element that most likely determined Elena's action in this scenario?

Gain the support of top management and board of directors.

Eliana is the ethics officer for a major aluminum manufacturer, where she is responsible for managing the organization's ethics and legal compliance programs. After concerns surface that the firm is generating excess waste, several of its stakeholders push for an ethics audit. In order to comply with this request, which of the following should Eliana do first?

Age

Emmanuel and Harry work together for a personal hygiene products firm. They are tasked with identifying other companies to collaborate with on limited edition product releases. Emmanuel is an older employee and considers a company's product quality before flagging it as a potential partner. On the other hand, Harry is a young employee and forms an opinion of a company based on its ethics, practices, and social impact. Which individual factor does this scenario relate to?

What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on?

Encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs

A white-collar crime

Ernesto is an office assistant for a family physician, Dr. Ava Smith. As Ernesto is reviewing patient records, he notices that all of the patients of the practice were listed as being on Medicaid, but he knows this is impossible. As he digs deeper, he sees charges to Medicaid over the years have increased. When he confronts Dr. Smith, she admits to falsely billing Medicaid. Which of the following describes Dr. Smith's actions in this scenario?

Technology disruption

FinTech Financial Corporation specializes in technology used in the finance industry. Their biggest product is a digital wallet program that allows individuals to make transactions. The program connects to a user's credit card, debit card, or bank account to make payments. FinTech then works with both brick-and-mortar and e-commerce retailers to implement the necessary technology to accept this form of payment. FinTech believes that digital wallets will replace physical wallets in the future. What is this digital wallet an example of?

An informal group

Five people with similar tastes in outdoor activities and music discuss their interests while working and often meet outside work for dinner, concerts, sports events, or other activities. Which type of group is described in this scenario?

Uncertainty avoidance

Grow It, a biotechnology firm, operates in Canada where it is believed that risk taking and innovation are important to achieve successful outcomes. For this reason, Grow It spends a great deal on research and development even though it does not always result in successful products. When entering into a business partnership with a biotechnology firm based in Great Britain, however, Grow It is asked by its new partner to make less risky investments. Which of the following concepts does this scenario relate to?

Identity theft

Hackers breach the security of an online greeting card company, breaking into a database containing personally identifiable information on its customers, such as names, email addresses, and mailing addresses. Even worse, users of the greeting card website have often uploaded the mailing addresses of their friends and family in order to use the company's personalization services. The hackers obtain all of this data during the breach. Which of the following is the type of cybercrime described in this scenario?

Union affiliation

Harassment is defined as discrimination on the basis of which of the following?

Hasan will consider the elements of virtue, tell the doughnut shop about his followers, and suggest alternative influencers to work with.

Hasan is a social media influencer from Nashville, Tennessee. He has a large following on Instagram in Nashville, but he recently moved to Washington, D.C. to go to school. A D.C.-based doughnut shop messages Hasan and asks if he would be interested in sharing a series of sponsored posts. The doughnut shop will pay Hasan $750 in exchange for three posts about the shop. Hasan, however, being new to D.C., hardly has any followers in the area and knows that if he posts about the shop, his post will result in little engagement and few sales, if any, for the shop. Which of the following will he choose to do, if Hasan is a virtue ethicist?

Hasan will conduct a cost-benefit analysis to assess which alternative would create the greatest utility before deciding whether to tell the doughnut shop about his followers.

Hasan is a social media influencer from Nashville, Tennessee. He has a large following on Instagram in Nashville, but he recently moved to Washington, D.C. to go to school. A D.C.-based doughnut shop messages Hasan and asks if he would be interested in sharing a series of sponsored posts. The doughnut shop will pay Hasan $750 in exchange for three posts about the shop. Hasan, however, being new to the D.C. metro hardly has any followers in the area and knows that if he posts about the shop, his post will result in little engagement and few sales, if any, for the shop. Which of the following will he choose to do, if Hasan is a utilitarian?

-Make reasonable efforts to keep individuals whom organizations knew or should have known to have engaged in illegal activities out of key positions. -Communicate standards and procedures by training directors, employees, and appropriate agents.

Hilary is tasked with improving the ethics and compliance program of an accounting firm. Before Hilary's review of the program began, the company had already established standards and procedures to prevent and detect criminal conduct and ensured the firm's board, top management, and high-level personnel exercised reasonable oversight of those standards and procedures. Which of the following are minimum requirements that Hilary should implement? (Select two)

A formal group

Hiten is a member of the sustainability committee at his company. The committee, which helps advance the organization's sustainability goals, meets regularly to review performance, develop plans, and make decisions. The committee is made up of members from across the organization to improve the coordination and implementation of decisions. Which type of group is Hiten a member of in this scenario?

Opportunity

Hugo is a structural engineer for a small firm. As a project manager, he interacts with dozens of clients directly. More than once, Hugo has accepted large gifts from clients because the company policy does not punish employees who do so. Which of the following concepts are exemplified in this scenario?

ESG

Illuminate Motors, an electric vehicle company, expends many resources to support its corporate social responsibility efforts. For example, it is a carbon-neutral company and powers its buildings with solar power to protect the environment. To support social causes, the company provides educational programs for local students to learn more about electric vehicles and offers professional advancement opportunities to its employees. The company also focuses on corporate governance and transparency. Which integrity measurement framework would Illuminate Motors most likely use?

There could be a tradeoff between privacy and access to information.

In exchange for a DNA sample, individuals can receive DNA insights, find DNA relatives, understand how they process certain medications, and get instant access to heart health reports using 23andMe, a DNA genetic testing service. Which ethics issue in technology relates to this example?

Decentralized

In which type of organization is decision making delegated as far down the chain of command as possible?

moral agents accountable for their conduct to their stakeholders

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

-Rules, personalities, and precedents exert pressure on an employee to conform to the firm's culture. -In the business arena, some goals and pressures for success differ from the goals and pressures in a person's life outside of work.

Individuals use different moral philosophies depending on whether they make a personal or work-related decision. Which of the following may explain this behavior? (Select two)

Right to Be Forgotten law

Internet users in the European Union (EU) can have unwanted links removed from Google search results through which of the following?

Which of the following statements describes the Sherman Antitrust Act

It prohibits organizations from holding monopolies in their industries.

Relatedness needs

Jamila works as a graphic designer for a small marketing team. She spends her day designing email marketing campaigns, flyers, posters, and in-store signage. She finds the work challenging, but she loves it because it allows her to be creative and push her skills. Jamila stays busy because there is always a steady flow of work, but because she works on a small team, she gets lonely. Most of her coworkers are older than she is and have children, so she finds it challenging to connect with them on a personal level. Which of Jamila's needs is not being met in this scenario?

There may be a higher level of employee commitment within the company.

Janeena's Jams, a small condiment company, had operated successfully for many years without experiencing ethical misconduct or an ethical disaster. Janeena's Jams is now experiencing a surge of growth after being featured on a popular reality TV series. The company has quickly grown from a team of three to a company of 50 individuals. Though the pay is good, workers are not committed to the company. When Janeena, the owner, decides to sell the business to an investor, the investor pledges to appoint an ethical leader. How will Janeena's Jams likely be affected by ethical leadership?

Ethics officer

Ji-hoon, an experienced ethics and compliance professional, is contacted by a corporate recruiter. The recruiter describes a job that would require Ji-hoon to assess the needs and risks an organization-wide ethics program must address, conduct training programs for employees, monitor and audit ethical conduct, and review and update a code of ethics. Based on this job description, which role is the recruiter hoping Ji-hoon can fill?

manipulate, cheat, or act in a self-serving manner when the benefits gained from doing so are greater than the penalties for misconduct

John takes advantage of situations at work in order to further his career in sales. For example, when the customer relationship management system goes down and sales representatives are asked to report their monthly sales figures using the honor system, John inflates his sales numbers because he knows he is unlikely to be caught. In this scenario, John is more likely to _______.

a white-collar crime

John, vice president of operations at We Care, Inc., approves the illegal disposal of toxic waste at his firm's international factory. John has committed

Senior management has failed to take ownership of the ethics program.

Kilo Watt, an energy company, has an extensive ethics program. For example, during training, the company offers experiential learning opportunities. The program materials have been developed to address the needs of the average employee. Kilo Watt's ethics officer reviews employee feedback frequently from employees across the firm to improve the program. The CEO, however, pressures employees to bend the rules to meet performance goals. This behavior has permeated the company all the way to the lowest levels. Which of the following mistakes has been made in designing and implementing Kilo Watt's ethics program in this scenario?

ethical disasters

Large-scale unethical activities that follow recognizable phases of escalation, from ethical issue recognition and the decision to act unethically to the organization's discovery of and response to the act, are known as _______.

Whistle-blowing

Leia was the chief financial officer for a publicly traded energy company. A newly hired accountant came across several bank accounts in the company's name that Leia used to pay for personal travel expenses including airfare and hotels. The accountant reported these suspicious accounts to the FBI. In this scenario, which of the following did the accountant engage in?

Principles-based standards

Leonard & Cho, an international accounting firm, has adopted the International Financial Reporting Standards (IFRS). These standards are simple and more flexible than other standards, so Leonard & Cho employees can observe a set of overarching principles instead of precise rules. The partners at Leonard & Cho prefer these standards because they allow for creative problem-solving. Which of the following describes the type of standards Leonard & Cho uses in this scenario?

Reward power

Mallory, a car salesperson, has two cars for sale, a Toyota and a Kia. The Toyota is rated higher in quality than the Kia but is priced the same. Mallory's manager says if she sells the Kia, he will give her a higher rate of commission, so Mallory spends the day trying to sell the Kia. Which type of power does Mallory's manager demonstrate in this scenario?

Leader-follower congruence

Marcus is the accounting manager for hospital. While conducting annual reviews for the accounting department, he reflects on the team as a whole. Marcus is pleasantly surprised to realize that all of his subordinates share the same vision and ethical expectations. They have all adopted a shared set of values, and as a team, they work toward goals for the organization. What has occurred in this scenario between Marcus and his subordinates?

General Data Protection Regulation (GDPR)

Meal Planner Pro is a meal delivery service in the United States and the United Kingdom. Meal Planner Pro uses its website to share recipes and expert cooking tips. Meal Planner must obtain permission from consumers to collect their data. The company accomplishes this using a pop-up that asks users to accept cookies and agree to their data policies. Which of the following is the law that requires Media Planner to do this?

Association of National Advertisers (ANA)

Mega Goods, an American multinational consumer goods corporation, is a corporate member of a national marketing organization that promotes self-regulation. The organization receives nearly 100 complaints about a Mega Goods advertisement for dish detergent. Consumers suggest its "spot-free" claims are misleading. As a result, the marketing organization works with Mega Goods to help the company come into compliance. Which organization is Mega Goods a member of in this scenario?

Ethics officer

Melinda develops and distributes the code of ethics at her company. Twice a year she reviews the company's code and makes necessary changes. On an ongoing basis, she confidentially answers employees' questions about ethical issues. When she has evidence of possible ethics code violations, Melinda takes appropriate action. Which role does Melinda fulfill in this scenario?

Even with such a simple concept as "independent oversight," national culture can come into play.

Mihály is the chief financial officer for a multinational bank based in the United States. She coordinates with auditors and the company's board of directors who provide independent oversight. While opening the Japanese division of her company, she learns that it is normal for retired Japanese bureaucrats to become auditors in the banking system. Mihály is concerned that the concept of independent oversight is not as clear cut in Japan as it is in the United States. Which of the following does this scenario exemplify?

A technology assessment

Miranda, a high-level manager for a company selling consumer packaged goods, is concerned about how rapidly the company has adopted new technologies. For instance, the customer service department recently implemented an artificial intelligence-powered chatbot to automatically answer customer inquiries and the marketing department has started using a predictive analytics software to improve its email marketing campaigns. During a senior management meeting, Miranda suggests the company should evaluate these new systems to make sure the benefits outweigh the risks. Miranda is recommending that management should conduct which of the following in this scenario?

Because the concept of a moral philosophy is inexact, which of the following is true?

Moral philosophies must be assessed on a continuum rather than as static entities.

stakeholder concerns

Most ethical issues concerning a business will become visible through

directly or indirectly the result of values derived from the major religions

Most laws are _______.

Because people are culturally diverse and have different values, they may interpret situations differently and the ethical decisions they make on the same issue may therefore vary.

Nia and Rashid are coworkers at a national bank's corporate office. Even though they have both worked for the same company for many years, they often interpret situations differently. For example, when a data breach occurred, Nia wanted to alert customers immediately per company policy, but Rashid thought it would be more ethical to gather additional information about the breach before alerting the public. Why do Nia and Rashid approach ethical decision-making differently?

Nia will keep quiet about the bolts' defect rate, hoping to win the sale and the $25,000 commission.

Nia, a sales representative for Midwest Hardware, a company that manufactures nuts and bolts, hopes to obtain a large sale from a construction firm that is building a bridge across the Mississippi River near St. Louis, Missouri. The bolts manufactured by Midwest Hardware have a 3 percent defect rate, which—although acceptable in the industry—makes them unsuitable for use in certain types of projects, such as those that may be subject to sudden, severe stress. The new bridge will be located near the New Madrid Fault Line, the source of the United States' greatest earthquake in 1811. The epicenter of that earthquake is less than 200 miles from the new bridge site. Though there is a 50 percent chance an earthquake will occur along the fault line within the next 10 years, according to experts, bridge construction in the area is not regulated by earthquake codes. If Nia wins the sale, she will earn a commission of $25,000 on top of her regular salary. But if she tells the contractor about the defect rate, Midwest may lose the sale to a competitor that markets bolts with a lower defect rate. Nia's ethical issue is whether to point out to the bridge contractor that, in the event of an earthquake, some Midwest bolts could fail, possibly resulting in the collapse of the bridge. Which of the following will she choose to do, if Nia is an egoist?

Misconduct can still occur even if the company has ethical guidelines in place.

Northern Airlines is widely considered to be one of the most ethical companies in the world. Its founders established a strong code of ethics early in the company's history that Northern Airlines continues to improve every year. Its ethics and compliance program includes a toll-free ethics hotline, a code of conduct, ethics training, a chief ethics officer, independent oversight, regular auditing, and more. Despite its strong ethics program, it is discovered that one of the company's top executives has been accepting bribes from various airports in exchange for establishing new routes. Which of the following does this scenario exemplify?

the many factors that influence decisions as ethical or unethical

Our organizational ethical decision-making framework demonstrates

Supply chain issues involving human rights violations can be hard to detect in global supply chains encompassing many different nations.

Profesh, a fast-fashion clothing brand, works with 200 factories around the globe to produce its apparel. Various regions, however, have differing standards related to child labor and forced labor. For example, an audit uncovered child laborers within one of the West African factories Profesh works with. Unless Profesh has eyes and ears on all 200 factories 24/7, it can't always know when factories are violating Profesh's child-labor policies. Which global supply chain issue does this scenario highlight?

Psychopathic

Rahul was excited to meet his new boss Bella, but he immediately knew there was something off about her. She was passionate about the company's mission and was outgoing, but her charm seemed superficial. One day Rahul mentioned to Bella that he was overwhelmed by his workload, but she showed no empathy and told him to just work harder. Which type of leader is Bella in this scenario?

-Continue to encourage employees to express concerns. -Make ethical codes and policies easily accessible. -Solicit constant feedback from employees and encourage their input

Rebecca is a senior production manager for a plastics company. All of Rebecca's subordinates come to her with ethical dilemmas, asking for help in addressing them. Rebecca likes that her subordinates trust her, but she thinks it's important for individual employees to be empowered to make ethical decisions on their own and to take responsibility for their own conduct. Which of the following actions should Rebecca take in order to empower her employees in this scenario? (Select three)

Rob operates in a silo.

Rob, the founder of a home cleaning franchise, has had years of training, experience, and learning other best practices of leadership. Rob models organizational values both in his day-to-day activities and in his interactions with company employees. A venture capitalist wanted to buy the cleaning company, but because they did not reflect the company's high standards for ethics and integrity, Rob turned down the multi-million-dollar opportunity. Because there are such big decisions to be made about the future of his franchise, Rob tends to make decisions by himself. Now that he has a growing network of franchisees, he recently established a hotline for reporting ethical misconduct. Although he appears to be an ethical leader, which ethical requirement does Rob fail to meet in this scenario?

group norms

Standards of behavior that groups expect of their members are known as

-identifying designated ethics personnel -Help employees identify the ethical issues -Provide employees a means to address and resolve ethical issues

Successful ethics training should accomplish which of the following? (Select three)

Economic value orientation

Talena, a business owner, quantifies values by monetary means. She has determined that the act of reducing compensation for underperforming employees would produce an economic value for her business, so Talena believes it should be accepted as an ethical action. Which of the following concepts describes Talena's beliefs in this scenario?

Centralized

The CEO of a social media company believes that since the decisions it makes about its platform are very important, high-stakes decisions, only high-level executives should have decision-making authority. There are many formal rules and procedures in place at the company, and the division of labor is clear-cut. Which type of organization is described in this scenario?

Being fined or put on probation

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

a code of ethics

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

Developing and implementing policies and procedures related to privacy protection

What is an organization's chief privacy officer (CPO) responsible for?

The shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business

What is the definition of corporate culture?

Legitimate power

What kind of power stems from a belief that a certain person has the right to exert power over others?

Define the scope of the audit process.

When an employee was found guilty of insider trading, a hospitality company decided to conduct an ethics audit to improve its ethics program. First, the ethics officer gained support from the CEO and the board of directors. They all agreed an ethics audit was necessary. Next, the ethics officer and the CEO worked to create a committee to oversee the audit. After that, a review was conducted of the firm's mission, values, goals, and policies. Which step in the framework for an ethics audit should have occurred prior to the review that was conducted in this scenario?

Accommodating

When an ethical conflict arises at his vegan makeup company, Tom, the CEO, steps in. A member of the product development team wants to introduce a new lipstick shade that uses carmine as a coloring agent. Tom points out that carmine is derived from dried insects, so it is not vegan. The product developer insists that the ingredient will create a vibrant red lipstick shade that customers will love. Tom gives in to the developer. Which type of conflict management style does Tom exhibit in this scenario?

Conflict of interest

When an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group, which of the following exists?

Leader-follower congruence

When leaders and followers share the same vision, ethical expectations, and objectives for the company, which of the following is the result?

normative myopia

When managers overlook or stifle the importance of core values in their business decisions, the authors refer to this as

cultural relativism

When morality varies from one culture to another and "right" and "wrong" are defined differently, this concept is known as _______.

risk compartmentalization

When various profit centers within corporations are unaware of the overall consequences of their actions on the firm as a whole, this is referred to as _______.

-Unfair competition -Their size -Exploitation of natural resources

Which of the following are criticisms of multinational corporations (MNCs)? (Select three)

-SimplyVitalHealth uses decentralized record-keeping technology to allow patients and providers to access healthcare data. -Spotify uses a decentralized database to correlate artists with license agreements and tracks. -De Beers uses a secure and decentralized record-keeping system to securely track diamonds across the supply chain all the way from the mine to the end-user.

Which of the following are examples of blockchain technology? (Select three)

-Ethical leadership can lead to higher employee satisfaction and commitment. -Ethical leaders communicate and monitor an organization's values, ensuring that employees are familiar with the company's purpose and beliefs. -Ethical leaders encourage employees to act in an ethical manner in their day-to-day work environment.

Which of the following are outcomes of ethical leadership? (Select three)

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

Which of the following are part of the framework for an ethics audit? (Select four)

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

Which of the following are responsibilities of an ethics officer? (Select three)

-Leadership styles influence many aspects of organizational behavior. -There is no one leadership style or an absolute list of attributes, values, or skills needed to be an effective leader. -Three elemental ingredients for leadership include character, stewardship, and experience.

Which of the following are true statements regarding leadership styles and ethical decisions? (Select three)

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

Which of the following best describes an ethics audit?

Blockchain

Which of the following creates an audit trail that protects both consumers and businesses from fraud, serving as a solution to digital fraud and privacy breaches in various industries?

Privacy

Which of the following ethics issues relates to data protection, surveillance, and employee privacy?

-technology firm is able to correctly re-identify a set of previously anonymized data. -An electric vehicle manufacturer eliminates 200 employees in favor of AI-powered robots that can assemble the vehicles faster and with more precision.

Which of the following examples demonstrate ethical concerns with emerging technologies? (Select two)

Antitrust activity

Which of the following global ethics issues is related to fair competition?

Business for Social Responsibility

Which of the following globally based resource systems tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools?

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

Which of the following is a common mistake that firms make when developing an ethics and compliance program?

Idealism

Which of the following is a moral philosophy that places special value on ideas and ideals as products of the mind?

Balanced scorecard

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?

Technology assessment

Which of the following is a procedure that helps organizations evaluate the possible effects that new processes, systems, and products will have on business operations and stakeholders?

Rational economics

Which of the following is based on the assumption that people are predictable and will seek to maximize the utility of their choices relative to their needs and wants?

Centralized

Which of the following organization structures is usually bureaucratic, the division of labor is typically well defined, and is suitable for companies in which processes are routine and efficiency is of primary importance?

Artificial intelligence

Which of the following provides the foundation or underlying platform that enables other technologies to be programmed to simulate human behavior?

Moral philosophy

Which of the following refers to the specific principles or values people use to decide what is right and wrong?

-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. -Over a cup of coffee, you tell a friend confidential information about a pending merger at your company. -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. -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.

Which of the following scenarios are unethical? (Select four)

-Employee empowerment is important in creating employee-centered ethical leadership. -Organizations are increasingly realizing the advantages of empowering employees to become ethical leaders. -Ethical leaders within an organization cannot make every ethical decision by themselves. -Many of the day-to-day decisions will be made not by management but by employees.

Which of the following statements accurately describe employee empowerment? (Select four)

-Ethical leaders should not ignore observed misconduct. -Ethical leaders must model organizational values -Ethical leaders are passionate about the organization

Which of the following statements accurately describe ethical leaders? (Select three)

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

Which of the following statements describes the primary implication of the "bad apple-bad barrel" analogy?

If there is congruence between individual ethics and the organizational ethical culture, the potential for making ethical choices in organizational decision making increases.

Which of the following statements is true?

Compliance

Which of the following types of culture is defined as one that utilizes a legalistic approach to ethics and uses laws and regulations to create its codes and requirements?

Psychopathic

Which of the following types of leader is characterized as having superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoyment in flouting the rules?

Reward power

Which of the following types of power refers to a person's ability to influence the behavior of others by offering them something desirable?

Predictive analytics

Which of the following uses values or algorithms to provide data-backed decision options?

Global Compact

Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?

Labor

While eating lunch in the break room, several employees for a tech company share how much they are paid by the company. One of the employees thinks it is odd that all of the women in the room are paid around 10 percent less than the men even though everyone in the group holds the same title and has the same amount of experience. Which global business ethics issue does this scenario relate to?

Transactional leader

Yvonne took over as senior vice president of corporate governance at a security systems company after a major scandal involving the CEO. To turn the company around, many ethics and corporate governance decisions needed to be made quickly. Yvonne helped install a new ethics program that changed leadership policies and allowed her to have direct communication with the board of directors in order to facilitate the leadership transition. Yvonne attempted to create employee satisfaction by negotiating for ethical behavior. Which type of leader best describes Yvonne in this scenario?

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

A cultural audit

is an assessment of an organization's values

Traditional business activities are being disrupted in a time of rapid technology advances.

Big data and marketing analytics have presented new ethical issues, since they can reduce employees and consumers to quantitative measurements. Which of the following statements does this scenario exemplify?

The stage of universal ethical principles

According to Lawrence Kohlberg's model, which of the following is the final stage of cognitive moral development?

-government -Family -religion

According to researchers, normative values largely originate from which of the following? (Select three)

The Sarbanes-Oxley (SOX) Act

Acme Corp., a public accounting firm, provides auditing for a multinational cosmetics company. The president of the cosmetics company asks Acme Corp. if it will provide consulting services as well. Acme Corp. instantly agrees. Which of the following laws does this scenario violate?

-Deceitful purpose -Collusion

Alicia and Eduardo are aware that the car company they work for sources metals such as tungsten and gold from the Golden Rule Mining Company because it is the most affordable option. Alicia and Eduardo learn that stakeholders will not look upon this situation favorably because the supplier is located in a conflict zone where armies and rebel groups profit from mining. For this reason, they enter into a secret agreement with Golden Rule Mining Company to conceal this information from the public and make it appear that the supplier is based in the United States. In this scenario, which of the following are Alicia and Eduardo engaging in? (Select two)

dishonest conduct

An accounting firm has a set of internal exams employees must take to demonstrate an understanding of basic accounting principles. Middle-level managers often steal the answer sheet and provide it to their subordinates to increase the likelihood of a high occurrence of passing scores. The behavior described in this scenario is associated with

The Federal Sentencing Guidelines for Organizations (FSGO)

An employee for an airline was caught accepting bribes from a baggage handling company. In exchange, he helped the baggage handling company secure contracts with the airline. Because the airline demonstrated due diligence in developing effective compliance programs to discourage unethical and illegal conduct, it was not as heavily penalized for its employee's misconduct as it would have been otherwise. Which of the following is a set of guidelines for prosecuting organizations related to the incentive described in this scenario?

An ethical dilemma

An employee of a biotechnology firm faces a problem with one of its medication products. There are several actions the employee can take that have negative outcomes, but there is no right or ethical choice to be made. What is the employee facing?

Corporate culture

An entertainment company requires all new employees to take a course in the traditions and history of the business, including its ethical dimensions. The company shares its mission statement with all new hires in order to instill its core values, such as integrity and honesty. Which of the following describes what is exemplified in this scenario?

Crisis management

Candice is an event planner for a music festival. Word begins to spread of a global pandemic entering the United States. Candice knows her organization will lose a lot of money if she cancels the event, but she also knows attendees, performers, and vendors could become sick as a result of the health crisis if she does not cancel it. Candice must act swiftly. Which of the following is this scenario related to?

lying by commission

Creating a perception or belief by words that intentionally deceive someone is defined as

Dishonesty

High-level management at a plastics manufacturer knew its company's waste was being tossed into local waterways, but dumping waste was common in the region, so they did not tell anyone. Even after some of their plastics were discovered in local waterways by an investigative reporter, managers at the manufacturer told the media the company was not responsible for the mess, despite knowing otherwise. Which of the following describes this behavior?

Imani is required to report her client because the Sarbanes-Oxley Act modifies the attorney-client relationship.

Imani is a lawyer who represents an accounting firm. Through an email with her client, Imani learns her contact has been lying on financial statements to the public as well as on reports about corporate performance and health. Which of the following statements is true in this scenario?

U.S. Sentencing Guidelines for Organizations

In recent years, new laws and regulations have been passed to foster programs designed to improve business ethics and social responsibility. The most important of these are the Federal Sentencing Guidelines for Organizations (FSGO), the Sarbanes-Oxley Act, and the Dodd-Frank Act. With guidelines that provide for just punishment, adequate deterrence, and incentives for organizations to prevent, detect, and report misconduct, which of the following was created for federal prosecutions of organizations?

Obedience to authority

In some cases, employees can anticipate their superior's desires without explicitly being asked to do something. This occurred when Toshiba inflated earnings after implicit pressure on employees by executives caused its division managers to misreport their earnings. Which of the following concepts is related to this scenario?

locus of control

Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is defined as

internal control

Individuals who believe they control the events in their lives by their own effort and skill,view themselves as masters of their destinies, and trust in their capacity to influence their environment have what is known as

Which of the following statements is true of the Dodd-Frank Wall Street Reform Act?

It seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis.

-The equality principle -The difference principle

John Rawls used what he called the veil of ignorance, which led him to develop which of the following? (Select two)

Bribery

Katerina is hired to help a retailer expand its footprint internationally. She runs into roadblocks when attempting to secure permits in foreign countries. Katerina decides to offer large payments to local officials so her permit applications are given priority. Which of the following behaviors is Katerina engaging in?

The Federal Sentencing Guidelines for Organizations (FSGO)

Mia, the chief ethics and compliance officer for a global tech firm based in the United States, sends a company-wide email to announce the introduction of an ethics hotline for reporting ethical misconduct. The company extends its internal ethical controls through hotlines, self-auditing programs, and other mechanisms so misconduct can be detected internally rather than externally. The ethics policies described in this scenario are encouraged by the

Misuse of company time and resources

Michael has been working for the same company for 10 years. He often engages in personal activities during work hours. He believes his behavior is justifiable because he is a very productive employee. Michael often shows up a half hour late for work, takes long lunch breaks, and watches e-sports while working. Which of the following activities is Michael engaging in?

Crises are rarely handled perfectly

News quickly spreads that the host of a popular morning show participated in an illegal gambling ring. The show's executives know they must act swiftly and respond to potential damage, but they're hesitant to fire the host because the host is well-loved by the show's target demographic. Instead, they decide to suspend the host temporarily. Many viewers are pleased while others are outraged by the decision. Which of the following statements best captures the idea exemplified by this scenario?

integrity

One of the most important and oft-cited elements of virtue, which refers to being whole, sound, and in an unimpaired condition, is known as

Companies with a strong reputation for ethical conduct sometimes fail to maintain their ethical culture.

ReCycle Swimwear, a company that makes sustainable swimwear with ethically-sourced materials, has been continually recognized for decades as being one of the most ethical companies in the world. However, ReCycle found itself in the spotlight for questionable conduct. The Justice Department alleged that the clothing company engaged in an international bribery scheme that violated the Foreign Corrupt Practices Act. Which of the following statements does this scenario exemplify?

Financial Stability Oversight Council (FSOC)

Since U.S. banks have become safer since the Great Recession, one oversight council announced it would review risky activities of financial markets as a whole rather than zeroing in on individual nonbank firms. This strategic shift changes the way so-called stress tests are conducted and reported by which of the following oversight councils?

An act is morally right or acceptable if it produces a desired result

Teleology is a philosophy associated with which of these statements?

Core practices

The Alpha Beta Corporation (ABC) is a private, nonprofit organization that promotes business self-regulation. Businesses can be accredited through ABC by meeting certain requirements to protect consumers and better their business. To do this, businesses follow a set of best practices outlined by ABC. This scenario relates to the concept of

it is illegal for HiTech to engage in price fixing because it often creates unfair prices for buyers

The CEO of HiTech, a smartphone accessory company, wants to sell its phone chargers for a higher price. The executive knows that if prices increase consumers will simply purchase a more affordable option from a competitor, so the executive collaborates with HiTech's top rivals in a price-fixing scheme to inflate consumer prices. Which of the following statements describes price fixing?

consumer protection law

The Children's Online Privacy Protection Act (COPPA) requires commercial Internet sites and mobile apps to carry privacy policy statements, obtain parental consent before soliciting information from children under the age of 13, and provide users with an opportunity to remove any information provided by children. Which of the following best describes these provisions?

has supervisory power over credit markets as well as the authority to monitor lenders

The Consumer Financial Protection Bureau (CFPB)

Ethical awareness

Three managers—Ivan, Talia, and Geoff—all face an ethical issue related to data privacy, requiring each of them to choose among several actions that various stakeholders, such as their customers, will ultimately evaluate as right or wrong. Geoff, however, does not perceive that the situation at hand has an ethical dimension. Based on the information in this scenario, Geoff lacks which of the following?

Discrimination

The hiring manager for a mortgage lender discovers that one of the candidates for a customer service job is 65 years old. The manager is afraid the candidate might retire, leaving her to search for a replacement in the near future, so she refuses to hire the individual even though he meets or exceeds all of the requirements. Which of the following behaviors is the hiring manager engaging in?

significant others

Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as

-Conflicts of interest -Abusive behavior -Internet abuse

Which of the following are among the top types of observed misconduct? (Select three)