Deck 6: Strategic Planning, Corporate Culture, and Corporate Compliance

Question 1

During which of the following stages of the ethical life cycle does the evaluation of different options take place?

A) Problem analysis
B) Moral problem statement
C) Ethical judgment
D) Reflection

Answer 1

C

Question 2

Which of the following factors is not part of the identification of the moral problem?

A) A clear statement of what the moral problem is
B) The identification of those affected by the problem
C) The morality of individual employees
D) The moral issues of the problem reflection

Answer 2

C

Question 3

In the Snyder model that develops a framework to address ethical crises, which of the following is not an internal normal factor?

A) Product failure or recall
B) Sexual harassment
C) Corporate scandal
D) Strike

Answer 3

C

Question 4

Which of the following does not represent one of the activities that represent unethical activities that an effective corporate culture eliminates within a firm?

A) Violating rights to privacy
B) Embezzling funds
C) Fair trade practices
D) Making false statements

Question 5

The agreed starting point for decision making within a firm is called ______________.

A) Shared values
B) Basic assumptions
C) Artifacts
D) Self-interests

Question 6

Charles Prince, as CEO of Citigroup, had to address a number of ethical issues. Which of the following is not one of them?

A) Government probes in the UK
B) Separation of financial and investment roles
C) Misleading customers in the consumer lending unit
D) Loss of private banking licenses in the United States

Question 7

______________ is the process in which future courses of action are developed to achieve the firm's short- and long-term goals.

A) Strategic planning
B) Tactical planning
C) Operational planning
D) Virtual planning

Question 8

_______________ is defined as the shared values and beliefs of employees within any given organization.

A) Social culture
B) Corporate culture
C) Strategic planning
D) Ethical judgment

Question 9

Peter Drucker developed the _____________,which involves the decision maker's ability to look at his or her reflection after the decision had been made and state that he or she had made the right choice.

A) Historical test
B) Cycle test
C) Subjective test
D) Mirror test

Question 10

In the Snyder model that develops a framework to address ethical crises, which of the following is not an external abnormal factor?

A) Terrorism
B) Strike
C) Natural disaster
D) Reputation issues

Question 11

The ethical cycle is concluded by _______________.

A) The analysis of the moral problem
B) The identification of the moral problem
C) Ethical judgment
D) Reflection

Question 12

Schein developed a set of enabling mechanisms to change culture. Which of the following is not a primary embedding mechanism?

A) The reaction of a leader to a critical incident b Observation of a leader' behavior as a role model
C) Rites and rituals of the organization
D) The leader's criteria for recruitment and selection of subordinates

Question 13

Alan Graf believes that culture should include all of the following basic components except

A) Define the philosophy and corporate values in a mission statement
B) Utilize a tall organizational hierarchy so that control can be maintained
C) Develop guidelines for employees
D) Establish a formal channel for employees to report violations

Question 14

In the Snyder model that develops a framework to address ethical crises, ________________ crises occur within the organization but are rare and unpredictable.

A) Internal-normal
B) External-normal
C) Internal-abnormal
D) External-abnormal

Question 15

Constance Bagley designed a _______________ process to help decision makers make the right decisions

A) Decision ladder
B) Decision tree
C) Three step
D) True false grid

Question 16

Which of the following does not represent one of the three stages of Kurt Lewin's model of change?

A) Unfreezing
B) Moving
C) Refreezing
D) Confusion

Question 17

Schein developed a set of enabling mechanisms to change culture. Which of the following is not a secondary articulation and reinforcement mechanism?

A) Design and structure of the organization
B) The leader's criteria for allocation of rewards
C) Design of buildings, facades and physical spaces
D) Formal statements developed to represent the firm's philosophy.

Question 18

_____________ are based on what groups within the firm learn about what is acceptable and not acceptable.

A) Shared values
B) Basic assumptions
C) Artifacts
D) Self-interests

Question 19

Which is not a strategic ethical decision to build character?

A) Who am I?
B) Who are we?
C) Where are we going?
D) Who is the company?

Question 20

Which of the following are factors such as what is seen and heard within a firm?

A) Shared values
B) Basic assumptions
C) Artifacts
D) Self-interests

Question 21

Which is not one of the factors in creating a climate of integrity in a firm?

A) Set an example through strong leadership
B) Set realistic goals
C) Ignore employee development needs
D) Distinguish between compliance and ethics

Question 22

All of the following are countries that tolerate having their nationals give bribes in other countries and also allow the bribes to be written off as business expenses on the firm's tax statements except

A) France
B) Germany
C) Japan
D) United States

Question 23

The ethical cycle begins with the identification of the current ethical culture.

Question 24

During which of the following steps in the Deloitte & Touche five-step process to embed ethics and values within the culture of the firm does management ask its employees via surveys and interviews what their assessment of the firm's culture is?

A) Review of current compliance program
B) Review of current ethical policies and procedures
C) Risk/cultural assessment
D) Development of an ongoing self-assessment of the compliance program

Question 25

The U.S Federal Sentencing Guidelines for organizations requires organizations to establish a(n)

A) Annual reporting cycle
B) Effective compliance program
C) Limited accounting principles
D) Greater confidence

Question 26

Kennedy and Di Tella have made an estimate of the cost of corruption. What are the estimated economic costs of organized crime activities and unfair prices set in the marketplace?

A) Premium by up to 5%
B) Discount of up to 10%
C) Premium of 15% to 20%
D) Premium of 25%

Question 27

The U.S. Foreign Corrupt Practices Act that forbids firms from contributing to foreign political campaigns was passed into law in

A) 1907
B) 2007
C) 1990
D) 1977

Question 28

It is during the problem analysis stage that the outcomes from the ethical judgment stage are further evaluated so a definitive course of action can be determined.

Question 29

In general, corruption can be classified into each of the following major types except:

A) Collusive peddling
B) Petty corruption
C) Grand corruption
D) Influence peddling

Question 30

An ethical crisis occurs when an event that was not part of the normal course of action for a firm takes place and affects the firm.

Question 31

Which of the following is defined as the use of intimidation or power in return for a financial benefit?

A) Extortion
B) Bribery
C) Embezzlement
D) Fraud

Question 32

In the Deloitte & Touche five step process to embed ethics and values within the culture of a firm, the ________________ is the stage that gaps and ambiguities are removed.

A) Review and revise phase
B) Development of an ongoing self-assessment of the compliance program
C) Review of current ethical policies and procedures
D) Risk/cultural assessment

Question 33

The PWC survey about the Sarbanes-Oxley Act identified a number of key benefits of the act. Which of the four factors below is not one of these factors?

A) Better information
B) Greater transparency
C) Limited accounting principles
D) Greater confidence

Question 34

According to the Federal Sentencing Guidelines, ______________ is the most common criminal change brought against organizations.

A) Fraud
B) Environmental waste discharge
C) Violation of taxes
D) Antitrust violations

Question 35

The taking of money illegally from a firm or other source is called ______________.

A) Extortion
B) Bribery
C) Embezzlement
D) Fraud

Question 36

Transparency International has developed an annual ranking of the level of __________in countries round the world.

A) Bribery
B) Corruption
C) Embezzlement
D) Ethical practices

Question 37

_______________ occurs when private individuals give illegal financial incentives to nonelected public officials in exchange for favorable dealings with certain government transactions.

A) Collusive peddling
B) Petty corruption
C) Grand corruption
D) Influence peddling

Question 38

Factors such as the political and social structure of the country have no impact on the ethical decision-making process.

Question 39

Which of the following occurs when illegal financial incentives are given to higher-ranked public officials for decisions that usually include major infrastructure contracts, the purchasing of military equipment, or other major industry-based decisions?

A) Collusive peddling
B) Petty corruption
C) Grand corruption
D) Influence peddling

Question 40

The mirror test involves the decision maker's ability to look in the mirror after the decision has been made and state that he or she has made the right choice.

Question 41

In a short essay, list and discuss the decision-making steps in the ethical cycle.

Question 42

The OECD anticorruption agreement, called the Convention on Combating the Bribery of Foreign Public Officials, was agreed in 2007.

Question 43

Corporate culture is based on norms and behavior patterns within any given organization.

Question 44

The 2011 National Business Ethics Survey 2011 found 22% of the respondents had observed misconduct in the workplace, and 45% of these were subject to some form of retaliation.

Question 45

Grand corruption occurs when private individuals give illegal financial incentives to nonelected public officials in exchange for favorable dealings with certain government transactions.

Question 46

Basic assumptions are the key starting point for ethical decision making within the firm.

Question 47

In a short essay, list and discuss the three levels on which corporate culture exists simultaneously within a firm.

Question 48

Petty corruption occurs when illegal financial incentives are given to higher-ranked public officials.

Question 49

In the unfreezing stages of Kurt Lewin's three-stage model, the new perceptions and ideals are "locked in."

Question 50

Criminal penalties for violation of the Foreign Corrupt Practices Act can be up to $2 million for a firm and $100,000 and 5 years in prison for an individual.

Question 51

In a short essay, set out the key steps that firms need to follow to evaluate their corporate culture to develop an effective integrity strategy.

Question 52

Shared values are factors such as what is seen and heard within a firm.

Question 53

In a short essay, identify the key elements of corruption and and how these may be classified.

Question 54

In a short essay, list the five-step process needed to embed positive ethics and values within the culture of the firm through its compliance program.

Question 55

Lewin's primary embedding mechanisms are concerned with the behavior and leadership traits of the most senior managers in a firm.