Managerial Ethics quiz 2
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?
-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?
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?
white-collar crime
Crimes perpetrated every year by nonviolent business criminals are known as
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?
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?
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
significant others
Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as
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?
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
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?
-Conflicts of interest -Abusive behavior -Internet abuse
Which of the following are among the top types of observed misconduct? (Select three)
-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?
Idealism
Which of the following is a moral philosophy that places special value on ideas and ideals as products of the mind?
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?
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?
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?
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?
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
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
lying by commission
Creating a perception or belief by words that intentionally deceive someone is defined as
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?
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)
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?
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
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
Which of the following refers to precedents established by judges?
Common Law
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
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?
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?
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
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?
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?
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
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?
What ties an organization's products directly to a social concern through a marketing program?
Cause-related marketing
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)
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
puffery
Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely is known as
Union affiliation
Harassment is defined as discrimination on the basis of which of the following?
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?
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?
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
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
Which of the following statements describes the Sherman Antitrust Act
It prohibits organizations from holding monopolies in their industries.
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?
egoism
Right or acceptable behavior in terms of the consequences for the individual is known as
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?
stakeholder concerns
Most ethical issues concerning a business will become visible through
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?
The act/agency that enforces regular surprise inspections to ensure businesses maintain safe working environments is called the
Occupational Safety and Health Administration
the many factors that influence decisions as ethical or unethical
Our organizational ethical decision-making framework demonstrates
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?
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?
Which of the following statements is true?
Some ethical issues are difficult to recognize because they are gray areas that are hard to navigate.
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)
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
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
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
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?
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
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
