Question 1

Compliance-based corporate ethics programs

Accepted Answer

Compliance-based corporate ethics programs increase surveillance and controls on people and impose punishments on wrongdoers in order to ensure legal compliance and avoid legal liabilities. They are usually reactive in nature, and focus primarily on avoiding legal violations.

Question 2

Kendrick reported that the industrial wastewater treatment system operated by his employer was no longer operating properly, allowing toxics-laden water to be discharged to the river. He was pleased to see the plant manager, Susan, immediately shut down production for an indefinite period, pending repair of the wastewater treatment system. Susan demonstrated

Accepted Answer

Susan's decision to shut down production in order to address the improper operation of the wastewater treatment system demonstrates her willingness to prioritize ethics over financial considerations, which is consistent with choice E.

Question 3

The primary focus of compliance-based ethics programs is on

Accepted Answer

Compliance-based ethics programs are designed to ensure that organizations and their employees follow laws, regulations, and policies through training, monitoring, and punishment. The focus is on detecting and punishing legal violations rather than creating awareness about ethical issues or giving tools to make ethical decisions. Increasing individual ethical responsibility and training employees on financially viable methods are not the primary focus of compliance-based ethics programs.

Question 4

A(n) ________ ethics program is designed to instill in people a personal responsibility for ethical behavior.

Accepted Answer

An integrity-based ethics program focuses on personal responsibility and ethical behavior, rather than just following legal guidelines or achieving certain results. It emphasizes the importance of doing what is right, even when no one is watching.

Question 5

In the context of ethics programs in organizations, programs tend to be better integrated into operations, thinking, and behavior when

Accepted Answer

When top management has a personal commitment to responsible ethical behavior, it sets a tone at the top that encourages ethical behavior throughout the organization. This can lead to better integration of ethics programs into operations, thinking, and behavior. Signing a code of ethics by every employee, seeing top managers go unpunished for their wrongdoings, using punishment or humiliation to prevent bad behavior are not effective ways of integrating ethics programs.

Question 6

Integrity-based ethics programs in business organizations

Accepted Answer

Integrity-based ethics programs focus on internalizing ethical values and principles, guiding behavior within the organization. Unlike compliance-based programs, which emphasize adherence to laws and regulations through surveillance and control, integrity-based approaches encourage employees to act ethically based on a shared set of values and principles.

Question 7

To avoid fines and criminal prosecution, it is a common perception that business leaders use

Accepted Answer

The answer of To avoid fines and criminal prosecution, it...

Question 8

Choose the true statement regarding unethical corporate behavior.

Accepted Answer

Unethical corporate behavior reveals a company culture that is ethically lax. It is not just the responsibility of unethical individuals, but also reflects the overall ethical climate within a company. Adhering to firm standards in different cultural contexts is important, but there is also a need to understand and respect cultural differences. Business ethics are shaped by a variety of factors, including laws, individual development, and company culture. Companies with international activities may face unique ethical challenges and need to be vigilant in maintaining a positive ethical climate.

Question 9

Katelyn, a graphic artist at an advertising firm, realizes that the head designer, Robert, has been copying designs from the Internet and passing them off as his own. Katelyn informs the marketing head about this, which leads to Robert getting fired. However, after this event, Katelyn is ostracized by her coworkers. This indicates that the organization has a poor

Accepted Answer

The fact that Katelyn is being ostracized by her coworkers after reporting the unethical behavior of Robert suggests that the organization has a poor ethical climate. This means that the organization does not prioritize ethical behavior and may even condone or overlook unethical actions.

Question 10

A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been specifically taken to

Accepted Answer

The company's measures, including conducting classes in moral philosophy and protecting whistleblowers from mistreatment, are aimed at creating an ethical climate in the organization. This indicates that the company places importance on ethical behavior and wants to ensure that employees understand and adhere to ethical standards.

Question 11

The Sarbanes-Oxley Act

Accepted Answer

The Sarbanes-Oxley Act established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence. Therefore, option E is correct. A, B, C, and D are not related to the Sarbanes-Oxley Act.

Question 12

CEO pay packages, wages, antibrand attitudes, and religion at work are some of the ________ that challenge American managers and employees today.

Accepted Answer

Ethical dilemmas are complex situations that require decision-makers to navigate conflicting interests, values, and duties. CEO pay packages, wages, antibrand attitudes, and religion at work all raise important ethical questions that cannot be resolved by simple reference to legal or market norms. Instead, these issues require careful consideration of social and moral principles, as well as an understanding of the broader economic, cultural, and political contexts in which they arise. By addressing these challenges proactively and ethically, American managers and employees can help to create more sustainable and responsible organizations that promote the common good.

Question 13

In the context of business ethics, an ethical leader

Accepted Answer

An ethical leader should have a strong personal character, meaning that they possess honesty, integrity, and other ethical values that they model for their employees. This helps to establish a culture of ethical behavior within the organization. Choices A, C, D, and E are not characteristics of an ethical leader as they promote neglect of ethical issues, a narrow focus on ethics, taking credit for others' work, and self-interest over the good of the organization.

Question 14

In the context of business ethics,

Accepted Answer

The statement provided by public companies regarding their code of ethics, as required by the Sarbanes-Oxley Act, may be just for show, meaning that they do not necessarily reflect the actual ethical standards or practices of the company. This is due to the fact that these statements lack a means of verification or enforcement, and they are not subject to external audit or review.

Question 15

In the context of corporate ethics programs, ethics committees

Accepted Answer

Ethics committees typically play a major role in developing and updating a company's ethics policies, providing guidance to employees on ethical matters, evaluating actions taken by employees, and investigating violations of those policies. They are not typically punitive in nature and they do not encourage eavesdropping or cover up unethical behavior. They may take disciplinary action against employees who violate ethical policies, but they do not target whistleblowers.

Question 16

An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called a(n) ________ ethics program.

Accepted Answer

An integrity-based ethics program is designed to instill in people a personal responsibility for ethical behavior, as opposed to simply complying with rules or laws. This type of program emphasizes values, principles, and personal decision-making, rather than just following a set of rules or regulations.

Question 17

Managers need to ________ so that employees will discuss problems in meeting goals, rather than resorting to unethical and possibly illegal behavior.

Accepted Answer

Keeping the lines of communication open will encourage employees to discuss problems in meeting goals, which can lead to finding ethical and legal solutions. Incentivizing employees at all costs may lead to unethical behavior, and penalizing employees for failure may create fear of speaking up. Maintaining accurate records and lavishly rewarding high achievers do not necessarily address the issue of employees resorting to unethical or illegal behavior.

Question 18

________ ethics programs are designed by corporate counsel to prevent legal violations.

Accepted Answer

Compliance-based ethics programs are specifically designed to prevent legal violations and ensure that the organization is in compliance with all relevant laws and regulations. They are often created by corporate counsel and focus on policies and procedures to prevent unethical or illegal behavior. Integrity-based ethics programs, on the other hand, are focused on creating a culture of ethical behavior and values, rather than simply preventing legal violations.

Question 19

A company was required by law to change its physical work environment in such a way so as to enable disabled people to function properly. Because the company followed a(n) ________ ethics program, it did not stop at just making changes that would help it stay out of trouble with the law. It went further and trained its employees to be sensitive toward disabled people.

Accepted Answer

An integrity-based ethics program goes beyond merely following the law or conforming to social norms. It is focused on doing what is morally right and just, even if it requires going above and beyond legal or industry standards. In this scenario, the company's decision to train its employees to be sensitive to disabled individuals exemplifies an integrity-based approach to ethics.

Question 20

The ________ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

Accepted Answer

Ethical climate refers to the overall culture or atmosphere of an organization in terms of whether ethical behavior is valued and rewarded or not. It encompasses the shared values, beliefs, behaviors, and practices of an organization, as well as the attitudes of its members towards ethical issues. The ethical climate of an organization can influence the decision-making processes within it and shape the outcomes of those decisions.

Quiz 4: Ethics and Corporate Responsibility