Question 1

Deloitte recommends a standard format for a code of ethics. What is the first part of the code?

Accepted Answer

A letter from the senior leadership team is often recommended as the first part of a code of ethics because it sets the tone at the top, demonstrating the organization's commitment to ethical principles and establishing the importance of the code to all employees.

Question 2

During the _____________, a firm identifies the establishment of its ethical leadership commitment as well as establishes the vision-setting process.

Accepted Answer

A

Question 3

Presenting the firm's commitment to unbiased and good-faith interactions with its stakeholders is called ____________.

Accepted Answer

B

Question 4

All of the following are mentioned in the text as types of statements that a corporation may adopt to communicate the corporation's view of the subject of ethics except

Accepted Answer

The text mentions values statements, corporate credos, and Internet privacy policies as types of statements that corporations may adopt to communicate their views on ethics. However, there is no mention of a corporate contingency plan in the text.

Question 5

When considering the organizational components of the Living Code of Ethics, ______ must integrate with living code of ethics in the day-to-day operations of the firm.

Accepted Answer

The decision-making process must integrate with the living code of ethics to ensure that ethical considerations are part of everyday business operations and decisions.

Question 6

The _____________ involves top management integrating the ethical vision, value, and leadership into the strategic decision-making process.

Accepted Answer

The question is asking about a process that involves top management integrating ethical vision, value, and leadership into strategic decision-making. The most appropriate answer is the Integration process.

Question 7

All of the following are ethical values a firm should consider when developing and/or modifying a code of ethics except

Accepted Answer

The answer of All of the following are ethical values...

Question 8

Which of the following is NOT mentioned in the text as a reason a code of ethics might be adopted?

Accepted Answer

The text does not mention improving profitability as a reason for adopting a code of ethics. Instead, it focuses on reasons such as peer pressure, government failure, and improving customer relationships.

Question 9

In the opening case "How We're Fixing Up Tyco," which of the following individuals was the senior vice president of corporate governance at Tyco who had the responsibility of repairing the tarnished image of the diversified conglomerate?

Accepted Answer

Eric Pillmore was the senior vice president of corporate governance at Tyco who had the responsibility of repairing the tarnished image of the diversified conglomerate, as mentioned in the opening case "How We're Fixing Up Tyco." Jack Welch is a former CEO of General Electric, Ken Lay is the former CEO of Enron, and Charles Prince is the former CEO of Citigroup.

Question 10

Which of the following is a statement that sets forth a company's beliefs and responsibilities to stakeholders?

Accepted Answer

A corporate credo is a statement that outlines a company's beliefs and responsibilities to its stakeholders.

Question 11

A(n) _____________ can be defined as a written document that explicitly states what acceptable and unacceptable behaviors are for all of the employees in an organization.

Accepted Answer

A code of ethics is the written document that outlines the acceptable and unacceptable behaviors of employees in an organization. A code of values is similar but focuses more on the core principles and beliefs of the organization, while a code of culture describes the common practices or traditions of the organization. Code of expectations is not a common term used in business ethics.

Question 12

W. Edwards Deming set out 14 points in his definition of quality in the firm. Many of these points are related to ethical concepts. All of the following form part of the definition except ______.

Accepted Answer

Maintaining staff barriers is not part of Deming's definition of quality in the firm. The other three points are: driving out fear, eliminating quotas, and instituting training.

Question 13

All of the following are considered critical elements of a good ethics program except

Accepted Answer

An introduction from the CEO, while beneficial for setting the tone at the top, is not considered a critical element of a good ethics program in the same way that assigning functional responsibility, providing proper employee training, and establishing an ethics hotline are. These latter elements are operational and structural components essential for the program's effectiveness.

Question 14

Which element is not included in a "Living Code of Ethics"?

Accepted Answer

The price of goods and services is not typically included in a Living Code of Ethics, which focuses more on principles and values related to ethical decision-making, leadership, and organizational culture. Pricing decisions may be influenced by ethical considerations, but they are generally a separate issue from the broader ethical framework that is outlined in a Living Code of Ethics.

Question 15

When was the date of the original corporate code of ethics introduced by J. C. Penney

Accepted Answer

The original corporate code of ethics was introduced by J.C. Penney in 1913.

Question 16

In the opening case "How We're Fixing Up Tyco," what did Tyco do to re-create its image?

Accepted Answer

Tyco changed its board members as part of its efforts to re-create its image and restore trust after previous scandals.

Question 17

General Electric in 2010 published its Citizenship Report titled ______.

Accepted Answer

General Electric's 2010 Citizenship Report focused on sustainable growth, which is consistent with their commitment to promoting a better world through socially responsible business practices.

Question 18

Waddock and Bodwell developed the Total Responsibility Management concept based on Deming's TQM. Which of the following is not one of the elements?

Accepted Answer

The Total Responsibility Management concept by Waddock and Bodwell includes the Inspiration process, Integration process, and Innovation and improvement process, but not the Involvement process.

Question 19

Why should a code of ethics be put into writing regardless of the size of the business?:

Accepted Answer

A code of ethics provides guidance for employees and stakeholders regarding acceptable behaviors in the workplace. This can improve the overall ethical culture of the company and mitigate the risk of unethical behavior or misconduct. Regardless of the size of the business, having a code of ethics in writing is important for setting clear expectations and promoting ethical behavior.

Question 20

A (n) ______________ is a succinct document that is intended to set out the guiding principles of a company.

Accepted Answer

A values statement is a concise document that outlines the core beliefs and principles that guide a company's behavior and decision-making. It usually includes information about a company's mission, vision, and culture, focusing on what the company believes in and what it stands for. A corporate credo is a similar document that sets out a company's values, but it tends to be more focused on the principles that govern its operations and interactions with stakeholders. Corporate contingency plans and Internet privacy policies are different types of documents that are typically unrelated to a company's guiding principles.

Quiz 12: Establishing a Code of Ethics and Ethical Guidelines