Deck 8: Ethics Reporting Systems

Question 1

An employee who observes ethical misconduct at work but does not discuss the matter with the person engaged in the misconduct or with someone else in the organization with authority is engaging in _____________.

A) whistleblowing
B) internal communications
C) employee silence
D) loyalty
E) none of the above

Answer 1

C

Question 2

Which of the following observer factors are not associated with employee silence?

A) low moral intensity
B) lack of evidence
C) lack of empowerment
D) all of the above
E) none of the above

Answer 2

E

Question 3

________________,previously referred to as "ethics hotlines," have long been popular with organizations as a method of obtaining information about situations that may be unethical or illegal.

A) Assist lines
B) Asset lines
C) Answering services
D) all of the above
E) none of the above

Answer 3

A

Question 4

The position serving as a deterrent against managerial abuse of power and other unethical activities,a concept which originated in government,is known as a(n) ____________.

A) ethics and compliance officer
B) whistleblower
C) ombudsperson
D) manager
E) none of the above

Question 5

The ethics and compliance officer's primary duty is to:

A) manage the organization's internal reporting system
B) report wrongdoing to the management team
C) supervise whistleblowing within the organization
D) all of the above
E) none of the above

Question 6

Which of the following is not an anticipated negative outcome associated with employee silence?

A) being labeled or viewed negatively
B) damaging a relationship
C) retaliation or punishment
D) no corrective action will be taken
E) no established reporting system

Question 7

The position in an organization charged with broad oversight of ethical performance is the:

A) ombudsperson
B) ethics & compliance officer
C) manager
D) CEO
E) none of the above

Question 8

An approachable manager displays which of the following characteristics?

A) authoritarian leadership
B) honesty and transparency
C) discourages dissent
D) all of the above
E) none of the above

Question 9

In general,ethically approachable managers embody _____________ behaviors.

A) dissenting
B) virtuous
C) inconsistent
D) all of the above
E) none of the above

Question 10

According to recent research by the Ethics Resource Center,which percentage of respondents who observed ethical misconduct did not report it?

A) 77%
B) 57%
C) 37%
D) 17%
E) none of the above

Question 11

The best ethics reporting system is:

A) an anonymous tip line
B) weekly ethics training
C) an ethically approachable manager
D) an ombudsperson
E) none of the above

Question 12

Which of the following organizational factors are associated with employee silence?

A) work culture discourages dissent
B) loyalty to the organizational members is not aligned with ethics
C) no established reporting system exists
D) all of the above
E) none of the above

Question 13

Which of the following attributes should characterize an ethics and compliance officer?

A) insider status and well-networked
B) high position that exemplifies authority
C) operational experience
D) all of the above
E) none of the above

Question 14

Members of a religious clergy trained in providing spiritual advice,sometimes contracted by businesses in consulting functions,are known as ___________.

A) priests
B) ombudspersons
C) ethics officers
D) chaplains
E) none of the above

Question 15

Even when the appropriate reporting systems are in place and when individual factors such as seniority and possession of clear evidence are available,some workers still fail to speak out against unethical misconduct due to a lack of _____________.

A) moral courage
B) reward
C) moral incentive
D) all of the above
E) none of the above

Question 16

Which of the following duties is not consistent with those of the ethics and compliance officer?

A) managing internal reporting systems
B) offering guidance
C) developing and interpreting ethics policies
D) assigning all ethical issues equal standing
E) none of the above

Question 17

Based on factors of __________________,observers are likely to remain silent about ethical misconduct if the misconduct causes minimal consequences to the recipient or the organization,occurs in a physically distant part of the organization,or if there is a lack of consensus in the organization that the misconduct is actually unethical.

A) moral sensitivity
B) moral intensity
C) moral norms
D) moral diversity
E) none of the above

Question 18

Which of the following principles is not consistent with the legal obligations of an organization's ombudsperson?

A) independence
B) neutrality and impartiality
C) prosecution of wrongdoing
D) confidentiality
E) informality

Question 19

External whistleblowing is the result of the failure of ______________ within an organization.

A) ethical values
B) internal communication systems
C) privacy
D) employee loyalty
E) none of the above

Question 20

Employee silence about observed ethical conduct can be attributed to all but which of the following?

A) organizational factors such as work culture
B) observer factors such as lack of evidence
C) anticipated negative outcomes such as being viewed negatively
D) organizational factors such as the lack of an established reporting system
E) none of the above

Question 21

The ethics and compliance officer in an organization must differentiate between which of the following types of ethical issues?

A) discrimination and harassment
B) material and immaterial issues
C) right and wrong
D) all of the above
E) none of the above

Question 22

Ethics-related information can come from suppliers and customers,in addition to employees.

Question 23

Research indicates which of the following outcomes may be associated with blowing the whistle?

A) negative performance evaluations
B) demotions
C) physical, psychological and family problems
D) all of the above
E) none of the above

Question 24

Legislation developed in response to the 2008-2010 financial crisis,which includes rewards for information about securities violations successfully enforced by the Securities and Exchange Commission,is called the ______________.

A) Dodd-Frank Act
B) Sarbanes-Oxley Act
C) Civil Rights Act
D) False Claims Act
E) none of the above

Question 25

Employees are more likely to discuss an ethical concern with a manager if these types of discussions occur on a regular basis.

Question 26

The False Claims Act compels the whistleblower to consider all but which of the following?

A) he/she must have actual knowledge of the fraud
B) the fraud must be tax fraud; tax fraud is the only type of fraud the act addresses
C) federal money must be involved
D) the financial amount of the fraud must be sizable, and the entity to be sued must be able to pay back the stolen money and associated fine
E) the evidence of the fraud cannot come from a publicly disclosed source such as a newspaper

Question 27

Provisions by which citizens can sue fraudulent suppliers on behalf of the government,and receive a percentage of the financial recovery,are called __________ provisions.

A) quid-pro-quo
B) qui tam
C) tit-for-tat
D) all of the above
E) none of the above

Question 28

Contacting someone outside the organization about potential or actual nontrivial misconduct inside the organization is referred to as __________________.

A) reporting
B) whistleblowing
C) prosecuting
D) protecting
E) none of the above

Question 29

Authoritarian leaders rule according to the saying "my way or the highway," tend to expect absolute loyalty,and consider taking suggestions from subordinates as a leadership weakness.

Question 30

Ethical misconduct at the workplace can be undertaken for the purposes of enhancing the company's financial performance agenda or for personal benefits for those engaging in the misconduct.

Question 31

Which of the following is not a provision of the Sarbanes-Oxley Act (SOX)?

A) protection for whistleblowers
B) creation of the Public Company Accounting Oversight Board
C) establishment of an anonymous reporting mechanism for employees to report fraud
D) auditors cannot engage in consulting work for companies they are auditing without approval from the client's audit committee
E) none of the above

Question 32

An "open door" policy between supervisors and employees means the door remains open during every conversation,to ensure an open and transparent process of discussion.

Question 33

Which of the following were not among reported ethical misconducts undertaken to benefit the individual,according to a 2009 Ethics Resource Center survey?

A) improper hiring practices
B) discrimination
C) internet abuse
D) bribes
E) sexual harassment

Question 34

Fear of retaliation for reporting unethical conduct from colleagues and supervisors is a realistic concern.

Question 35

The _______________ of 2002 was enacted directly following high-profile accounting scandals involving Enron,WorldCom,Tyco and other companies that cost investors billions during the early 2000s.

A) Dodd-Frank Act
B) Sarbanes-Oxley Act
C) Civil Rights Act
D) False Claims Act
E) none of the above

Question 36

Prior to the passage of Sarbanes-Oxley,the number of whistleblower reports averaged 6,400 per month; following Sarbanes-Oxley,the monthly average changed to ____________ per month.

A) 4,000,000
B) 400,000
C) 40,000
D) 4,000
E) 400

Question 37

Employee silence is less likely when the chain of command is the only mechanism for reporting and when the person behaving unethically can readily identify the information source.

Question 38

Legislation that includes protections for whistleblowers includes all but which of the following?

A) the False Claims Act
B) the Sarbanes-Oxley Act
C) the Dodd-Frank Act
D) the Civil Rights Act
E) none of the above

Question 39

Observers of ethical misconduct will often remain silent when they perceive reporting as a violation of ___________ to employees,managers,and the organization.

A) loyalty
B) whistleblowing
C) professionalism
D) silence
E) none of the above

Question 40

People are often uncomfortable conveying negative information to organizational leaders who welcome ethical discussions.

Question 41

Legal advisors recommend that it is irrelevant whether or not the whistleblower has convincing,documented evidence before moving forward with informing an external authority.

Question 42

Discuss the attributes of an effective ethics and compliance officer.

Question 43

Provide at least five examples of reasons why some employees do not report ethical misconduct.

Question 44

It is impossible to discourage false accusations with an effective assist line.

Question 45

It is not important whether or not the ethics and compliance officer is perceived as someone with authority in the organization.

Question 46

Discuss the steps associated with best practices in the internal reporting process.

Question 47

With enhancements to the internal reporting process and development of an approachable management style,organizations can reduce the need for employee whistleblowing.

Question 48

In order to successfully prosecute wrongdoing in the workplace,the employee who raised the concern must identify him/herself during the investigation process.

Question 49

The roles of the organization's ethics and compliance officer and ombudsperson are interchangeable.

Question 50

Even smaller organizations with less than 50 employees can benefit from a clearly articulated internal reporting system for ethical issues.

Question 51

Describe the process a manager can undertake to engage employees in discussion of ethical misconduct.

Question 52

Though increasingly viewed as a public service in the interest of society,whistleblowing does not merit legal protections through the law.

Question 53

In order to be effective,the ethics and compliance officer must be someone in a dedicated position,not someone who serves that function in addition to another role such as legal counsel.

Question 54

Discuss the typical duties and skills of an ethics and compliance officer.

Question 55

Assist lines or "ethics hotlines" can help address issues of confidentiality and false accusations in reporting wrongdoing.

Question 56

Whistleblowers are always perceived as disgruntled employees seeking revenge against a boss or employer.

Question 57

A method for preserving employee anonymity in the internal reporting system is to use an identification number for the case and filter communications through a resource such as EthicsPoint or other telephone services.

Question 58

Several resources including nonprofit advocacy and lobbying organizations exist to provide support to potential or actual whistleblowers.

Question 59

Legislation including Sarbanes-Oxley Act of 2002 ensures that whistleblowers will face no negative consequences after blowing the whistle.

Question 60

The False Claims Act initially passed in 1863 and strengthened in 1986 is designed to protect employers from whistleblowers making false accusations.