MGMT CH6

Accountants often face conflicts of interest such as _____.

providing a good audit in return for the promise of more of the client's business

Which principle within 3M's code of conduct refers to keeping complete business records?

Be accurate

What was the primary ethical marketing issue in the Outcome Health example?

Deceptive advertising

In the case Equifax's Data Breach, which ethical climate dominated during the data breach?

Egoism

Match the ethical criteria of ethical climate (in the left column) with its correct definition (in the right column). Instructions

Egoism matches Self-centeredness Benevolence matches Concern for others Principle matches Respect for one's own integrity

Which of the ethical safeguards tends to be the most costly and time-consuming?

Ethics training

Researchers have shown that both values and mission policies are particularly popular in which parts of the world? (Check all that apply.)

Europe Japan

Ethical challenges for information technology professionals include which issue?

Intellectual property protection

Bribery is accurately described by which statements? (Select all that apply.)

It is a payment often made to a government official. It is a questionable or unjust payment that facilitates a transaction.

Which type of business is more likely to believe that a culture of ethics encourages workers to speak up?

Larger and more mature businesses

Corporate culture is accurately described by which statements? (Check all that apply.)

Observing "the way we do things around here" A blend of customs, traditions, and shared meanings

Identify the purposes of corporate ethics reporting mechanisms. (Check all that apply.)

Providing general information about corporate topics. Offering a way for employees to report ethical violations. Providing clarifications regarding expected ethical behavior.

A compliance-based ethics program is characterized by which statements? (Check all that apply.)

Seeks to avoid legal sanctions Stresses punishment as a deterrent

According to a 2017 survey by Transparency International, which of the following countries were considered the world's most corrupt countries? (Select all that apply.)

Somalia Syria

What is the major reason for a firm to adopt an institutionalized ethics program?

To enhance their ethical performance.

Evidence of "passive complicity" at Equifax after the data breach, according to the case Equifax's Data Breach, included which reasons?

Top executives focused on their own stock portfolios. The company delayed going public after the cyberattack.

Marketing ethics emphasizes honesty and transparency in advertising and data about advertising.

True

Ethics Resource Center experts have stated that ethical culture impacts firms in what ways?

Weak ethical cultures can foster ongoing bad behavior. Strong ethical cultures can mitigate behaviors that could harm the firm.

The scope of the U.S. Foreign Corrupt Practice Act (FPCA) covers _____. (Check all that apply.)

across a range of industries countries that have U.S. affiliates

Match the 3M code of conduct principle (in the left column) with the matching description (in the right column):

be fair matches Play by the rules, whether working with government, customers, or suppliers. be loyal matches Protect 3M's interests, assets, and information. be good matches Obey the law and 3M's Code of Conduct.

The act of bribery is an economic force that _____.

corrupts the financial exchange

The unspoken ethical tone in a company is called _____.

ethical climate

When an organization builds ethical safeguards into its daily routines, this is called _____.

institutionalizing ethics.

The type of ethics policy that provides ethical rules for employees to follow is called a(n) _____.

instrumental policy

Match the professional code of conduct (in the left column) with its related guiding principle (in the right column).

American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct matches Be responsible for moral judgments. Chartered Financial Analyst (CFA) Institute Code of Ethics and Standards of Professional Conduct matches Act with integrity, competence, diligence, respect and ethics. American Marketing Association (AMA) Statement of Ethics matches Do no harm. Association of Information Technology Professionals (AITP) Code of Ethics and Standards of Conduct matches Promote the understanding of information processing.

According the 2017 survey published by Transparency International, which of the following were countries where having to pay a bribe was least likely? (Check all that apply.)

Denmark New Zealand

The ethical concern of invasion of privacy in information technology relates to which issues? (Check all that apply.)

Electronic mail confidentiality Access to personal information Data collection

Which specific corporate ethics reporting mechanism allows employees to report ethical concerns anonymously?

Employee helpline

The industry codes of conduct for accounting, finance, marketing, and information technology are identical, because the same ethical dilemmas exist for all functions.

False

The U.K. Bribery Act prohibits bribery of which individuals? (Check all that apply.)

Government officials Private executives

Identity ways that the U.K Bribery Act is stricter than the U.S. Foreign Corrupt Practices Act (FCPA).

It contains a strict liability clause for failure to prevent bribery. There is no exemption for "facilitating payments." It does not require evidence of the intent to corrupt.

Which statements are true regarding the primary professional association that supports ethical initiatives for executives?

It represents over fifty countries. It changed their name to the Ethics and Compliance Officer Association. The membership doubled from 2000 to 2004.

Researchers found that integrity-based ethics programs had what effects on employees? (Check all that apply.)

They increased their sense of integrity. They made it easier to deliver bad news to supervisors. They enhanced their confidence in decision-making.

What is the primary motivation for companies to develop employee ethics programs?

To comply with laws and regulations

Why does the Sarbanes-Oxley Act (SOX) limit auditors from offering non-audit consulting services?

To prevent an accounting conflict of interest.

The consequences of foreign bribery deny U.S. companies the ability to compete in a fair and transparent marketplace.

True

The U.S. Foreign Corrupt Practice Act (FPCA) combats bribery by _____.

assessing criminal penalties assessing civil penalties requiring full disclosure of company transactions

In the most effective ethics programs, the ethics officer reports to the ______. (Check all that apply.)

chief executive officer board of directors

Some economic impacts of bribery include ______. (Check all that apply.)

companies indicted for bribery typically paying fines and legal fees funds for roads and hospitals siphoning off to pay corrupt officials