Question 1

Robert Lane, former CEO of Deere, a highly performing, highly ethical corporation, believes in the importance of senior management commitment to ethics, but he points out that the "tone at the top" must be reinforced by the actual behavior observed by suppliers, dealers, customers, and employees. At Deere, this is summed up in highly visible, frequently referenced shorthand known as:

Accepted Answer

The "tone at the top" at Deere is reinforced by the actual behavior observed by stakeholders, which is summed up in the shorthand known as "the how," emphasizing the importance of actions and behaviors in maintaining ethical standards.

Question 2

In the context of codes of ethics, the best-known code is the Johnson & Johnson Credo, which has guided the company profitably through a number of crises. One of the striking elements of the credo is the firm focus on:

Accepted Answer

The Johnson & Johnson Credo emphasizes fairness, focusing on ethical practices and responsibilities to customers, employees, and the community.

Question 3

Finwes is an advertising company. Because of certain untoward incidents in the company, the management decides to create a formal written document that would guide the employees in making right decisions in various professional situations. In this scenario, the management wants to create a _____.

Accepted Answer

A code of ethics is a formal document that outlines the principles and guidelines for employees to follow in order to make ethical decisions in professional situations.

Question 4

In the context of codes of ethics, the Johnson & Johnson Credo refrains from:

Accepted Answer

The Johnson & Johnson Credo focuses on ethical responsibilities to customers, employees, communities, and shareholders, rather than overpromising financial rewards.

Question 5

A clothing company, Clendtine Fashions, pledges five percent of its annual revenue to environmental causes around the world. Being one of the top international companies, the founders of the company have an obligation to contribute toward the betterment of the world. This scenario is an example of Clendtine Fashions's participation in _____.

Accepted Answer

Clendtine Fashions's pledge to donate a portion of its revenue to environmental causes is an example of social responsibility, where a company takes actions to benefit society and the environment.

Question 6

Research from the Ethics Resource Center suggests that _____ has more influence than any other variable on the ethical conduct of individual employees.

Accepted Answer

Organizational culture has the most influence on the ethical conduct of individual employees as it sets the norms and values that guide behavior within the organization.

Question 7

The employees of a multinational company follow a standardized and formal set of written guidelines that help them make right decisions in various situations. These guidelines have been translated into 20 languages and are followed by employees across all branches of the company. One of the guidelines is to include all supervisors in discussions regarding instances of violation of rules. In this scenario, the multinational company has:

Accepted Answer

The company has created a code of ethics, as it provides formal guidelines for decision-making and behavior, which are translated and followed across all branches.

Question 8

In the context of research from the Ethics Resource Center (ERC), which of the following statements is true of companies facing economic difficulties?

Accepted Answer

During economic difficulties, employees often perceive the decisions and behaviors of company leaders as a heightened commitment to ethics, which can influence their own ethical behavior positively.

Question 9

In the context of creating and maintaining an ethical organization, Robert Lane, former CEO of Deere, a highly performing, highly ethical corporation, declares that to establish an ethical culture, _____.

Accepted Answer

Ethical words must be supported by documented practices, processes, and procedures to ensure a consistent and global understanding of the ethical culture within an organization.

Question 10

After being stagnant for a few years, a clothing company started making profits consistently. Following this, the CEO of the company decided to contribute to the growth of the community by starting an apprenticeship program in tailoring. The program involved providing training to a batch of 10 uneducated, underprivileged people free of cost every year. In this scenario, the company's gesture exemplifies _____.

Accepted Answer

The company's gesture exemplifies social responsibility as it is taking an initiative to contribute positively to the community by providing training and opportunities to underprivileged individuals.

Question 11

Which of the following statements is true of an ethics code?

Accepted Answer

A written ethics code must reflect the actual principles and values practiced by the company; otherwise, it is ineffective and meaningless.

Question 12

In the context of codes of ethics, the purpose of a written code is to:

Accepted Answer

A written code of ethics is designed to provide employees with guidelines and information to help them make ethical decisions in various situations, ensuring consistent and principled behavior within an organization.

Question 13

Research from the Ethics Resource Center (ERC) showed that companies behave differently during economic difficulties. When employees perceive the decisions and behaviors of their leaders as a heightened commitment to ethics, they are most likely to:

Accepted Answer

When employees see their leaders committed to ethics, they are inspired to adopt higher ethical standards themselves, aligning their behavior with the organization's values.

Question 14

In the context of ethical choices, research results from the Ethics Resource Center (ERC) illustrate that:

Accepted Answer

Research from the Ethics Resource Center (ERC) indicates that employees are more likely to engage in misconduct when they perceive a negative impact on their company's ethical culture, such as during the Great Recession.

Question 15

In the context of codes of ethics, the Johnson & Johnson Credo has guided the company profitably through a number of crises. This is considered the best-known code because it:

Accepted Answer

The Johnson & Johnson Credo is well-regarded because it emphasizes ethical responsibility and prioritizes the well-being of customers, employees, and communities over financial gain, avoiding overpromising financial rewards.

Question 16

In the context of the code of ethics of a company, which of the following is a step that is virtually always included when experts advocate a forceful, integrated approach to ethics?

Accepted Answer

Communicating about the importance of ethics is a crucial step in ensuring that employees understand and adhere to the company's ethical standards.

Question 17

In the context of bringing the code of ethics of a company to life, which of the following statements is true when experts try to advocate a forceful, integrated approach to ethics?

Accepted Answer

A forceful, integrated approach to ethics involves ensuring that the company's ethics code is applicable both locally and globally, reflecting the diverse environments in which the company operates.

Question 18

Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a _____.

Accepted Answer

Lily is a whistle-blower because she reported the inappropriate behavior of the department head to the store manager, leading to the offender's dismissal.

Question 19

To bring a code of ethics to life, experts advocate a forceful, integrated approach to ethics. According to this, _____.

Accepted Answer

Publicly responding to ethical violations helps maintain transparency and trust within the organization, reinforcing the importance of ethics.

Question 20

Yanmei, an employee at a news agency, learns that the reason her colleague was asked not to pursue a news story further was because the editor of the newspaper was bribed by the concerned party to suppress the matter. Yanmei reveals this information to the chief editor and her colleagues and also reports it to the media. In this scenario, Yanmei is a _____.

Accepted Answer

Yanmei is a whistle-blower because she exposed unethical practices within her organization by revealing that the editor was bribed to suppress a news story.

Quiz 4: Business Ethics Social Responsibility: Doing Well by Doing Good