Managerial Ethics quiz 2
40%
Based upon author research and industry reports, what percentage of employees always try to follow company policies?
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
Which of the following refers to precedents established by judges?
Common Law
bribery
The practice of offering something in order to gain an illicit advantage is known as
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?
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?
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?
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?
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
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?
awareness
The ability to perceive whether a situation or decision has an ethical dimension is known as ethical
-Conflicts of interest -Abusive behavior -Internet abuse
Which of the following are among the top types of observed misconduct? (Select three)
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?
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.
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
ethical awareness
The ability to perceive whether a situation or decision has an ethical dimension is defined as
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?
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?
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
A cultural audit
is an assessment of an organization's values
The Sarbanes-Oxley (SOX) Act was passed to provide federal oversight of
corporate accounting practices
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?
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
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
What ties an organization's products directly to a social concern through a marketing program?
Cause-related marketing
uses a legalistic approach to ethics
A compliance culture is one that
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?
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?
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?
white-collar crime
Crimes perpetrated every year by nonviolent business criminals are known as
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?
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?
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?
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?
formal group
An assembly of individuals with an organized structure that is explicitly accepted by the group is defined as a(an)
Union affiliation
Harassment is defined as discrimination on the basis of which of the following?
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?
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
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?
Relativism
Which of the following philosophies evaluates ethicalness subjectively on the basis of individual and group experiences?
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.
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
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
stakeholder concerns
Most ethical issues concerning a business will become visible through
Fines or imprisonment may be imposed as punishment for breaking the law under
criminal law
Which of the following statements describes the Sherman Antitrust Act
It prohibits organizations from holding monopolies in their industries.
-Organizational factors -Ethical issue intensity -Individual factors
Which of the following are factors in the ethical decision-making model? (Select three)
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
facilitation
A payment made to obtain or retain business that is not considered a bribe within the United States is defined as
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?
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?
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 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)
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?
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 _______.
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?
lying by commission
Creating a perception or belief by words that intentionally deceive someone is defined as
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?
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?
-Low problem recognition -Clear-cut division of labor -Many formal rules
Characteristics of a centralized organization include which of the following?
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
The stage of universal ethical principles
According to Lawrence Kohlberg's model, which of the following is the final stage of cognitive moral development?
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?
puffery
Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely is known as
egoism
Right or acceptable behavior in terms of the consequences for the individual is known as
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
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?
An act is morally right or acceptable if it produces a desired result
Teleology is a philosophy associated with which of these statements?
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?
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?
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?
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?
Institutional theory can be defined as
the theory that organizations operate according to taken-for-granted institutional norms and rules
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?
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
Centralized
A company that is characterized by low flexibility, low problem recognition, and clear-cut division of labor has which type of organizational structure?
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 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?
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?
-government -Family -religion
According to researchers, normative values largely originate from which of the following? (Select three)
-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)
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?
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?
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?
corporate culture
Direct statements, indirect statements, gestures, looks, labels, promotions, programs, and legends (or the lack thereof) can all be used to informally express
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?
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?
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?
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?
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?
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?
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?
Decentralized
In which type of organization is decision making delegated as far down the chain of command as possible?
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
-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)
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?
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?
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?
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 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?
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?
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?
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?
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
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
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?
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?
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?
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.
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 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?
-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?
-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
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?
The act/agency that enforces regular surprise inspections to ensure businesses maintain safe working environments is called the
Occupational Safety and Health Administration
-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?
Moral philosophy
Which of the following refers to the specific principles or values people use to decide what is right and wrong?
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?
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?
group norms
Standards of behavior that groups expect of their members are known as
the many factors that influence decisions as ethical or unethical
Our organizational ethical decision-making framework demonstrates
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?
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
significant others
Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as
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
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?
