Question 1

_____ requires that firms in the private sector provide procedures for anonymous reporting of accusations of fraud.

Accepted Answer

The Sarbanes-Oxley Act was passed to protect investors from fraudulent accounting activities by corporations. One provision of the act requires firms to establish procedures for anonymous reporting of accusations of fraud.

Question 2

Kanai learns that her company is secretly dumping untreated waste into the city sewer systems, and she informs the local EPA office. Which of the following does NOT describe Kanai's ethical situation?

Accepted Answer

The answer of Kanai learns that her company is secretly...

Question 3

Jack Welch, former CEO of The General Electric, is respected in business circles for focusing his company on the welfare of its customers and investors and for ensuring that GE would thrive in the long run. This type of environment is an example of ethical _____.

Accepted Answer

The statement praises Jack Welch's leadership for creating an ethical environment that prioritizes the welfare of customers and investors and ensures long-term success for the company. Therefore, the best choice is D, leadership.

Question 4

During a meeting with government regulators, Nicole voluntarily points out a potential problem with a new product her company is testing. Nicole has shown _____.

Accepted Answer

The answer of During a meeting with government regulators, Nicole...

Question 5

Which of the following would be LEAST likely to be a factor in evaluating a firm's social performance?

Accepted Answer

Holding company-sponsored social events may be a positive aspect of a company's culture or morale, but it is not a significant factor in evaluating a firm's social performance. The other options, such as providing a safe workplace, respecting diversity, and producing safe, high-quality products, are essential aspects of a company's social responsibility and would be more critical in evaluating their social performance.

Question 6

Macrozine Inc. provides support for employees faced with ethical dilemmas. An ethics compliance officer is available in the Human Resources office or through an employee hotline. This is an example of ethical _____.

Accepted Answer

This is an example of ethical action, as the company has established a system to provide support for employees in ethical dilemmas. This shows a proactive approach to ethical decision-making and demonstrates a commitment to ethical principles. The other options (reasoning, awareness, whistleblowing) may be related to ethical behavior, but do not accurately describe the company's actions in this scenario.

Question 7

_____ goes beyond truthfulness.

Accepted Answer

Integrity goes beyond truthfulness and includes the quality of having strong moral principles and upholding them even when there is pressure to do otherwise. Honesty is important, but it does not necessarily encompass all aspects of integrity. Loyalty and competence are also important qualities, but they are not directly related to truthfulness.

Question 8

Horus is a new employee at an IT firm. Soon he learns of the unethical practices done by his superiors and other employees at the firm. He immediately informs such instances and behaviors to the upper management and other officials at the firm. This act by Horus is known as _____.

Accepted Answer

Horus's act of informing the upper management and other officials about the unethical practices at the IT firm is known as whistle-blowing. Whistle-blowing is an act of exposing or reporting any illegal or unethical practices within an organization for the betterment of the organization and society.

Question 9

Veata's supervisor asks her to conceal information from external auditors examining the company's financial records. What is Veata's ethical challenge?

Accepted Answer

Veata's ethical challenge is loyalty versus truth. She may feel a sense of loyalty to her supervisor and the company, but she also has a duty to be honest and truthful in her work, especially when it comes to financial records that are being examined by external auditors. Concealing information goes against her duty of honesty and integrity.

Question 10

Daichi takes responsibility for an error made by his assistant on a project. Daichi has shown _____.

Accepted Answer

By taking responsibility for his assistant's error, Daichi has shown integrity, which means being accountable for one's actions and being honest even when no one is watching. While loyalty (A) and honesty (B) are important traits, they are not specifically demonstrated in this situation. Truthfulness (D) is similar to honesty but is not the best choice as it does not encompass the concept of taking responsibility, which is the key factor in this scenario.

Question 11

Online simulation training such as the Ethics Challenge can help to improve ethical _____.

Accepted Answer

The answer of Online simulation training such as the Ethics...

Question 12

A formal statement that defines how the organization expects and requires employees to resolve ethical questions is _____.

Accepted Answer

A code of conduct spells out a company's ethical principles and the expectations it has for employee behavior. It serves as a guide to help employees make the right decisions when confronted with ethical dilemmas.

Question 13

Development of a corporate culture to support business ethics occurs on each of the following levels EXCEPT ethical _____.

Accepted Answer

The development of a corporate culture to support business ethics occurs on the levels of ethical awareness, reasoning, and leadership. Ethical success is not a level of development for corporate culture, but rather a desired outcome of implementing and maintaining ethical practices.

Question 14

Which of the following can improve ethical reasoning in a company?

Accepted Answer

The answer of Which of the following can improve ethical...

Question 15

Embellishing one's résumé shows a lack of ______ and ______.

Accepted Answer

Embellishing one's résumé involves lying about one's skills and experiences, which is a clear violation of honesty and integrity. It also undermines the trust that an employer or potential employer has in the candidate's abilities and personal character.

Question 16

After meeting with employees, a manager realizes she has set performance goals unrealistically high for her department's employees. If she makes employee performance goals more realistic, what will likely happen to the department's ethical climate?

Accepted Answer

By setting more realistic performance goals, employees will feel less pressured to meet unrealistic expectations and will likely have a more positive perception of the department's ethical climate. This, in turn, can improve motivation, job satisfaction, and overall morale.

Question 17

Rangsey was a foreman at Hi-Way Construction and discovered his company was deliberately using faulty materials for a project. Although Rangsey was worried about his family's financial security if he lost his job, he went to authorities and informed them of the potentially dangerous construction. Rangsey's action is called _____.

Accepted Answer

Rangsey's action is an example of whistle-blowing, which involves reporting unethical or illegal behavior within an organization to external authorities. Despite the potential risks to his job security and financial stability, Rangsey prioritized the safety of others by speaking up about the faulty materials being used in construction.

Question 18

Ethical _______ changes each employee personally to uphold the company's core values and be willing to base their actions on them.

Accepted Answer

Ethical leadership involves guiding employees to act in ways that uphold the company's core values, encouraging them to personally commit to these values in their actions.

Question 19

Bente knows of a defect in a product his company sells. He will disclose the defect but only if the customer specifically asks about it. Bente's _____ could be called into question.

Accepted Answer

Bente's integrity could be called into question because he knows about a defect but is not proactively disclosing it to customers, and is only willing to do so if asked. This behavior may be seen as dishonest or misleading, which goes against the principle of integrity.

Question 20

The sales manager decides to double each salesperson's monthly quota. What impact is this action likely to have on the company's ethical climate?

Accepted Answer

By doubling the monthly quota, the sales manager is putting pressure on the salespeople to meet unrealistic targets, which could lead to unethical behavior such as falsifying sales records or pressuring customers into making purchases they don't need. This can ultimately have a negative impact on the company's ethical climate.

Quiz 2: Business Ethics and Social Responsibility