Deck 6: Ethics of Business: Management and Leadership

Question 1

A statement of values is the basis for a code of ethics.

Answer 1

True

Question 2

Julian is in a conflict of interest regarding the use of his employer's property.He took office supplies home.

Answer 2

True

Question 3

Codes of conduct need to be updated as society's expectations for behaviour shift,codes of ethics,however,remain fixed through time.

Answer 3

False

Question 4

The issues of bribery and kickbacks were emphasized in the second generation of the evolution of codes of conduct.

Question 5

A statement of values is designed to influence organizational objectives and performance measures and should not influence individual objectives and performance measures.

Question 6

A statement of values explicitly states what appropriate behaviour is for employees.

Question 7

Management style should be a reflection of the statement of values.

Question 8

Protection of employees' rights was part of the second generation of the evolution of codes of conduct.

Question 9

Seeing his son's kindergarten teacher emerge from the nightclub drunk and partially undressed,Kyle's father wondered if personal conduct in non-work hours is a conflict of interest for teachers.His friend,Sam,replied that personal conduct that reflects negatively on an employer is a type of conflict of interest.Sam is correct in this regard.

Question 10

A code of ethics is a statement of values that guide behaviour.

Question 11

Louis is attempting to make a difficult decision regarding what to disclose to shareholders.As an accountant,he consults his code of ethics.It provides him,not with clear answers,but with a statement of principles that he can use to help guide his behaviour.

Question 12

ABC Corporation is being a "good puppy" because it is behaving in a manner that is halfway between being amoral and having the rigorous expectations of a "good person" applied to it.

Question 13

Codes of conduct are imposed on organizations from external sources,such as government.

Question 14

The benefit-cost test is distinctly different than the utilitarian ethical principle.

Question 15

An apparent conflict of interest exists when one can foresee a private interest that may be sufficient to influence a duty or responsibility.

Question 16

XYZ Corporation is having an ethics audit conducted of its firm.The audit will identify unethical behaviour that already exists; it can't predict unethical behaviour that could potentially develop.

Question 17

Tabatha is considering whether to take advantage of some insider knowledge she has regarding a new product launch.She applies the categorical imperative in asking herself "If I do this,I should be OK with everyone else being able to do this as well."

Question 18

A statement of values should reflect the organization's values,not the values of employees.

Question 19

A code of conduct explicitly states what appropriate behaviour is for employees.

Question 20

Francis is wondering whether it is appropriate within her organization to take supplies home to work on work-related projects over the weekend.She consults her company's code of conduct to see if there is a rule related to this behaviour.

Question 21

All corporations have explicit,well documented ethics programs.

Question 22

Ethics officers most commonly report to Human Resources department as they are overseeing the behaviour of employees.

Question 23

A dialogical approach to ethics programs is related to both an ethic of care and a collaborative view of stakeholder engagement.

Question 24

Monological approaches to ethics programs are likely structured on an ethic of justice.

Question 25

Ethical mistakes have occurred throughout history,they are inevitable,and they come in waves or cycles.

Question 26

The compliance-based approach focuses on adherence to societal norms.

Question 27

Managers do not respond to the threat of informal sanctions.

Question 28

The simple answer to the question "Who is responsible for ethics?" is top management.The President and CEO of any corporation have the ultimate responsibility for the ethics of an organization.

Question 29

The 'formal' approach to ethics programs emphasizes compliance and penalties.

Question 30

Implicit ethical programs are implemented through the organization's culture,reward systems,and promotion policies.

Question 31

NMO Corporation is developing a code of ethics.First,however,they decide that they need to agree on a description of the beliefs,principles,and basic assumptions about what is worth striving for in the corporation.They,in other words,wish to first develop their _________.

A) corporate code of conduct
B) corporate code of ethics
C) company's conflict of interest policy
D) company's statement of values
E) None of the answers.

Question 32

Self-interest can actually prevent a manager from engaging in unethical behaviour out of fear of exposure or punishment.

Question 33

Current practice suggests that ethics committees are top-management focused.

Question 34

A form of rationalization is when poor ethical behaviour is justified by the fact that others are doing it.

Question 35

In the moral model of management and leadership,ethics is a driving force of the organization.

Question 36

Whistleblowing refers exclusively to an employee's reporting of illegal or unethical acts.

Question 37

In an organization that not only completely lacks high standards of ethical behaviour,but is devoid of ethical principles and actively opposed to what is moral,the appropriate model of management and leadership is called "Amoral".

Question 38

Ethics officers monitor the behaviour of suppliers.

Question 39

Whistleblowing is always a voluntary act.

Question 40

Adopting a dialogical approach to ethics programs runs the risk of ethical relativism.

Question 41

Nash's model of ethics training is referred to as:

A) Categorical imperative
B) Utilitarianism
C) Ventilation test
D) Good puppy theory
E) Good person test

Question 42

An ethics committee is evaluating the decision-making process of an organization.Which of the following statements does NOT reflect the composition or jurisdiction of such a committee?

A) Ethics committees always involve outside stakeholders to assure independence in decision making.
B) Ethics committees act as a signal to all stakeholders that ethics is important to an organization.
C) Ethics committees monitor behaviour of both employee and management levels.
D) Most ethics committees today focus on top-management behaviour.
E) All of the answers reflect the composition of an ethics committee.

Question 43

A large manufacturer is considering closing its factory in Canada and relocate to Mexico where labour costs will be lower.The discussion around the board room table reflects multiple ethical perspectives.The President,Debra,argues: "How would you feel if we decided to move all our operations to Mexico,including your offices? Do we want this to become our standard of practice and apply it even to you?" The President is using which ethical test?

A) Categorical imperative
B) Utilitarianism
C) Ventilation test
D) Good puppy theory
E) Good person test

Question 44

An ethics audit does which of the following?

A) Discover actual unethical behaviour in an organization.
B) Discover potential unethical behaviour in an organization.
C) Identify the opportunities for unethical behaviour that exist.
D) Act as a preventative, as well as a remedial, response.
E) All of the above.

Question 45

A mid-sized forestry operation conducts ethics audits of its operations.Which of the following statements does NOT represent a benefit that the company can expect from engaging in this process?

A) The discovery of unethical behaviour
B) The sources of potential unethical behaviour
C) Ethical practice from employees in the future
D) A source of comparison to the code of ethics
E) All of the above represent benefits that the company can expect from conducting ethics audits.

Question 46

The company is considering expanding into international markets.One of the countries that they are considering locating in has a reputation for human rights violations.Which generation of codes of conduct would address this as a concern?

A) First
B) Second
C) Third
D) Fourth
E) Fifth

Question 47

In Canada,there is only comprehensive whistleblowing legislation in:

A) British Columbia
B) New Brunswick
C) Quebec
D) Ontario
E) P.E.I

Question 48

A large manufacturer is considering closing its factory in Canada and relocate to Mexico where labour costs will be lower.The discussion around the board room table reflects multiple ethical perspectives.The CEO argues for the move,stating: "I agree that it will be damaging to our current employees,but believe that it really is of greater benefit overall to the greater number of people for us to relocate the factory." The CEO is using which ethical test?

A) Categorical imperative
B) Utilitarianism
C) Ventilation test
D) Good puppy theory
E) Good person test

Question 49

Jane is City Manager for the City of Prairie,Saskatchewan.Her husband,Hari,is the CEO of a land speculation company.Hari's company is considering purchasing land around the city borders.Hari knows,through his wife Jane,that the city is considering annexing the land in question,which will significantly raise the value of the land and,as a result,his annual bonus.Jane has to decide whether to remove herself from the decision-making process for the city.What type of conflict is Jane currently experiencing as she considers removing herself from the decision-making process?

A) Real conflict of interest
B) Apparent conflict of interest
C) Potential conflict of interest
D) None of the answers.
E) All of the answers.

Question 50

A large manufacturer is considering closing its factory in Canada and relocate to Mexico where labour costs will be lower.The discussion around the board room table reflects multiple ethical perspectives.The HR Director interjects: "Look,we are all wrapped up in this issue and keep going around in circles.This morning on the way to work,I asked a friend of mine who doesn't even work in our industry for his opinion.Do you want to hear what he said?" The HR Director,in asking her friend for an opinion,was using which ethical test?

A) Categorical imperative
B) Utilitarianism
C) Ventilation test
D) Good puppy theory
E) Good person test

Question 51

Which of the following is not a valid reason for the development of codes of conduct?

A) Reduce legal liabilities
B) Maintain corporate image
C) Satisfy customer expectations
D) Make it easier for management to refuse unethical requests
E) All of the above are valid reasons for the development of a code of conduct.

Question 52

Kelly had spent longer at lunch with his customer,a computer game manufacturer,than he expected.But,the meeting had been worthwhile.The customer had told Kelly that his company was about to lower the price of computer game systems the following week,the start of the next financial quarter,but that they were planning to keep this information from the retailers until the last possible minute to maximize the profit margins for the quarter.Kelly decided to delay purchasing a game system,which he had been planning to buy for his daughter,until the following week.What is the nature of Kelly's conflict of interest?

A) Self-dealing
B) Personal conduct
C) Using confidential information
D) Influence peddling
E) Kelly is not in a conflict of interest.

Question 53

The media recently announced a series of toy recalls over issues of product safety.This morning,while shopping at a local retail store,Sajad noticed that the recalled toys were still on sale.He called the media anonymously to report this fact.Which of the following statements is true?

A) The media is a whistleblower.
B) Sajad is a whistleblower.
C) The ability to remain anonymous encourages the reporting of wrongdoing.
D) The fact that Sajad remains anonymous may trivialize the matter.
E) All the statements are true.

Question 54

Frank knew that he was the last person to check in for his flight home from vacation.Knowing that the airline frequently oversold its flights and "bumped" passengers requiring them to take later flights,Frank approached the customer service representative and informed her that he was a senior ranking official in the Ministry of Transportation and asked for her assurance that he would not be "bumped" off his flight.What is the nature of Frank's conflict of interest?

A) Self-dealing
B) Personal conduct
C) Using confidential information
D) Influence peddling
E) Frank is not in a conflict of interest.

Question 55

When first founded,the company developed policies about employees giving kickbacks to employees who provide referrals to new customers.Codes of conduct have evolved over time.The policy which includes policies about bribery and kickbacks reflects which generation of codes of conduct?

A) First
B) Second
C) Third
D) Fourth
E) Fifth

Question 56

Ted was warned by his supervisor that failing to recycle soda cans is a violation of company rules.If Ted continues to throw soda cans in the garbage,his supervisor will send him a disciplinary letter.If he repeats the offence yet again,the CEO will be informed.These policies about employee rights in a disciplinary process are reflective of which generation of codes of conduct?

A) First
B) Second
C) Third
D) Fourth
E) Fifth

Question 57

Environment Inc.has an established tract record in the recycling industry.Their value statement on their website reads: "Caring for the planet in all we do." This value statement is reflected in organizational policies that require employees to recycle; bonuses are given to employees who find ways to improve the company's recycling program.Tom,a new employee,is seen throwing a soda can into the garbage.His supervisor sends him an email identifying that "we have rules about that here." The supervisor is identifying that Tom violated the:

A) corporate code of conduct
B) corporate code of ethics
C) company's conflict of interest policy
D) company's statement of values
E) None of the answers.

Question 58

Jane works for the City of Prairie,Saskatchewan.Her husband,Hari,is the CEO of a land speculation company.Hari's company is considering purchasing land around the city borders.Hari knows,through his wife Jane who is City Manager,that the city is considering annexing the land in question,which will significantly raise the value of the land and,as a result,his annual bonus.Jane has to decide whether to remove herself from the decision making process for the city.What is the nature of Jane's conflict of interest regarding Hari's knowledge of the annexation?

A) Self-dealing
B) Personal conduct
C) Using confidential information
D) Influence peddling
E) Hari is not in a conflict of interest.

Question 59

Closing her laptop,Gisele closed her eyes and tried to sleep on the flight home.Unable to sleep,she realized that she was overhearing a conversation between two research and development employees from her company.At work the next morning,she informed them that she wouldn't tell the CEO that they were discussing trade secrets in public; if they promised to give her a prototype that she could show her customers prior to the official launch and thereby increase her early sales.What is the nature of Gisele's conflict of interest?

A) Self-dealing
B) Personal conduct
C) Using confidential information
D) Influence peddling
E) Gisele is not in a conflict of interest.

Question 60

Which of the following are possible perceptions that others may have of a whistleblower?

A) The whistleblower is a snitch.
B) The whistleblower is noble.
C) The whistleblower is a traitor.
D) The whistleblower is an ethical hero.
E) All of the above.

Question 61

Implicit ethics programs are implemented through

A) Corporate culture
B) Reward systems
C) Valued behaviour
D) Performance measures
E) All methods are included

Question 62

Which of the following is not a characteristic of ethics programs?

A) Formal
B) Monological
C) Dialogical
D) Compliance

Question 63

Describe the how codes of conduct and codes of ethics aid in understanding relationships with stakeholders.

Question 64

Which of the following is not a form of executive ethical leadership?

A) Hypocritical
B) Unethical
C) Ethical
D) Ethically silent
E) Amoral

Question 65

In terms of the classification and approaches to ethics programs,which of the following is true?

A) Values-based programs are linked to codes of conduct.
B) Compliance programs use codes of ethics.
C) Formal programs are written as codes of conduct.
D) Codes of values facilitate the monopolist's approach.
E) Compliance programs are employee-driven.

Question 66

A local store,part of a multinational retail chain,has been selling toys that were recalled over issues of product safety.A store employee,upon noticing this,called the local media and the story was featured in the local newspaper.Which statement is true under a moral leadership model?

A) The Board of Directors of the multinational chain has no ethical responsibility because they have little or no input into the daily operations of the firm.
B) The CEO of the multinational chain has no ethical responsibility because store managers are responsible for decisions as to local merchandising.
C) The local store manager has no ethical responsibility because s/he cannot possibly know what product is on his/her shelf at any point in time. This is the role of the toy department manager.
D) All of the statements are true.
E) None of the statements are true.

Question 67

A values-based approach to ethics programs include all of the following,except:

A) Self-governance
B) Management-driven
C) Increased employee discretion
D) Auditing
E) Decision processes

Question 68

An oil and gas exploration company has decided to develop an ethics program.The CEO has outlined the key organizational norms and elements of the code of conduct that she would like integrated into the program.It is hoped that this program will provide clear guidance to employees and managers and make penalties for unethical behaviour clear.This is an example of a(n) ___________ ethics program.

A) formal
B) implicit
C) monological
D) dialogical
E) None of the answers.

Question 69

It is required that when logging in a designated forest area that logging companies plant seedlings to help foster environmental renewal in the area.The CEO of a logging company has been exposed by whistleblowers for planting inferior tree seedlings.The CEO stated that it had met its legal requirement and whether or not planting inferior seedlings was ethical is not his concern.The CEO is operating under which leadership model?

A) Immoral
B) Amoral
C) Moral
D) Ultra-moral
E) None of the answers.

Question 70

Criterion used to evaluate ethics programs include all of the following except

A) Resource commitment
B) CEO's commitment
C) Extent of communication
D) Training and education
E) Feedback

Question 71

Can ethics audits discover the potential for unethical behaviour or are they limited to discovering actual instances of unethical behaviour?

Question 72

A manufacturing company is developing an ethics program.Feeling that it is difficult,if not impossible to outline all possible ethical situations,the manager has decided that the company will rely on its employees' own best judgments to determine what is ethically appropriate as situations arise.The manager is implementing a(n) ____________ ethics program.

A) formal
B) implicit
C) monological
D) dialogical
E) None of the answers.

Question 73

What are the four criteria identified by Max Clarkson for evaluating the effectiveness of an ethics program?
B.
E. Clarkson, "Ethics and Profit: The Changing Values of Business in Society." Unpublished presentation to the Faculty of Business Administration, Memorial University of Newfoundland, St. John's (March 3, 1993).

Question 74

What are the six clear questions used in the Pagano model to test the ethics of a particular action?
Is it

Question 75

Integrity management programs combine:

A) compliance and values-based approaches
B) formal and values-based approaches
C) dialogical and compliance approaches
D) monological and values-based approaches

Question 76

The ethics program developed by a restaurant chain focuses on clearly articulating the rules that employees are expected to follow.These rules reflect laws and legal precedent governing matters such as under-age drinking and patron sobriety.The idea was to create a program with minimal ambiguity and clearly articulated penalties.The restaurant chain has a(n) _________-based program.

A) compliance
B) integrity
C) compliance and integrity
D) neither compliance nor integrity
E) implicit