Deck 2: Business Ethics and Corporate Social Responsibility

Question 1

With regards to ethics, most of the 500 largest corporations in the U.S. now have a code of ethics. Which of the following would LEAST likely be included in the codes?

A) ethics offices
B) social accounting
C) conduct standards
D) performance appraisals

Answer 1

D
Explanation: D) Most of the 500 largest corporations in the United States now have a code of ethics, which encompasses written conduct standards, internal education, and formal agreements on industry standards, ethics offices, social accounting, and social projects.

Question 2

The use of whistleblowers has been around since ________.

A) the passage of the Sarbanes-Oxley Act of 2002
B) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
C) the Federal False Claims Act of 1863
D) the Whistleblowers Anonymity Act of 2005

Answer 2

C
Explanation: C) The use of whistleblowers has been around since 1863 when President Lincoln signed into law the Federal False Claims Act, which was designed to protect the United States from purchases of fake gunpowder during the Civil War.

Question 3

What do most of the 500 largest corporations in the United States have?

A) social responsibility audits
B) environmental audits
C) codes of ethics
D) podcasts

Answer 3

C
Explanation: C) Most of the 500 largest corporations in the United States now have a code of ethics, which encompasses written conduct standards, internal education, and formal agreements on industry standards, ethics offices, social accounting, and social projects.

Question 4

Which one of the following statements about HR and ethics is FALSE?

A) It is sufficient for HR representatives to say that everyone should be ethical.
B) The ethical bearing of those in HR affects the credibility of the entire organization.
C) HR representatives should maintain a dialogue with workers about ethical behavior.
D) HR professionals can help foster an ethical culture.

Question 5

In the legal use of the term, a whistleblower is someone who ________.

A) serves as a part-time referee in sporting events
B) has an ethical obligation to shield his or her employer from lawsuits
C) participates in an activity that is protected by federal law
D) serves as a majordomo at political dinners

Question 6

As a professional, what should be your primary source of ethical guidance in the workplace?

A) corporate HR policies
B) corporate code of ethics
C) corporate mission statement
D) corporate procedures

Question 7

The minimum standards of ethical behavior in a firm are based on ________, while higher standards are established by ________.

A) corporate policies; human resources
B) co-workers; mission statements
C) organizational culture; laws
D) laws; corporate leadership

Question 8

The CEO of GE begins and ends each annual meeting by ________.

A) introducing the firm's senior officials
B) reviewing the firm's financial details
C) stating the firm's integrity principles
D) asking stockholders for their opinions

Question 9

Which of the following firms has NOT been exposed for ethical abuses and corrupt conduct?

A) Enron
B) Lehman Brothers
C) WorldCom
D) General Electric (GE)

Question 10

A major source of ethical guidance is the behavior and advice of people that psychologists call ________.

A) internal monitors
B) third-party respondents
C) disinterested parties
D) significant others

Question 11

Which term refers to the discipline that deals with what is good and bad or right and wrong?

A) morals and traditions
B) social responsibility
C) cultural norms
D) ethics

Question 12

KPMG uses all of the following approaches EXCEPT ________ to handle ethical issues.

A) adopting expedient, site-specific procedures
B) providing multiple channels for raising alarms
C) ensuring consistent investigation and resolution of all reported matters
D) eliminating fear of retaliation for those who raise questions

Question 13

According to your textbook, sources of ethical guidance should ________.

A) lead to your beliefs or a conviction about what is right or wrong
B) have little effect on a person's pursuit of what is expedient
C) be nothing more than the subject matter of philosophical discussions
D) remain abstractions that don't pertain to day-to-day living in today's world

Question 14

Which of the following would LEAST likely be a source of ethical guidance?

A) holy books
B) laws
C) friends
D) tests

Question 15

Laws ________ ethical behavior.

A) mandate
B) offer guidance to
C) have nothing to do with
D) None of the above

Question 16

Preparing ethics training for global organizations is ________ than preparing training for U.S. employees.

A) more complicated
B) less complicated
C) no different
D) None of the above

Question 17

Companies are concerned about the whistleblower part of the Dodd-Frank Act for all of the following reasons except that informants might ________.

A) skip internal channels and go straight to government authorities
B) use the whistleblower provision to settle other grievances with their companies
C) overload internal compliance channels and thus hinder internal compliance efforts
D) All of the above

Question 18

In a recent survey, what percent of investors said they would move their account if they discovered the company was involved in unethical behavior?

A) 17%
B) 37%
C) 67%
D) 97%

Question 19

According to a recent report by the Society for Human Resource Management, ________.

A) integrity and ethical behavior are marginally important for HR executives
B) the operations department should be the repository for corporate ethics
C) it is the duty of HR professionals to help create an ethical climate in their organization
D) business ethics and corporate culture are independent elements in today's workplace

Question 20

When comparing the effectiveness of whistleblowers and external auditors in uncovering corporate wrongdoings, ________ in public companies.

A) whistleblower tips discovered 54.1 percent of uncovered fraud schemes
B) external auditors discovered 54.1 percent of uncovered fraud schemes
C) whistleblower tips discovered 4.1 percent of uncovered fraud schemes
D) whistleblower tips are no more effective than external auditors at discovering fraud schemes

Question 21

Which law prohibits a former employee who served in certain positions on a contract in excess of $10 million from receiving compensation as an employee or consultant from that contractor for one year?

A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Sarbanes-Oxley Act
D) Federal Contract Protection Act

Question 22

The ________ provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation and golden parachutes.

A) Sarbanes-Oxley Act
B) Dodd-Frank Wall Street Reform and Consumer Protection Act
C) Corporate Shareholder Grievance Reform Act
D) Wall Street Procurement Integrity Act

Question 23

Which law was passed to redress accounting and financial reporting abuses in light of corporate scandals?

A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Sarbanes-Oxley Act
D) Federal Contract Protection Act

Question 24

Contemporary organizations are redesigning their ethics programs to facilitate a broader, more consistent process that ________.

A) embraces chaos and forges new paradigms
B) incorporates the analysis of outcomes and continual improvement
C) uses outcome analysis to focus on short-term goals
D) relies on expediency and situational management

Question 25

According to the FSGO, ________ were supposed to be responsible for the prevention of white collar crimes in an organization.

A) attorneys
B) top executives
C) common stockholders
D) organizational stakeholders

Question 26

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law in ________.

A) 1863
B) 1933
C) 2001
D) 2010

Question 27

John provides information to the SEC about conduct by his employer that he believes constitutes securities fraud. Which law most likely protects John from being demoted for his actions?

A) Federal Contract Protection Act
B) Procurement Integrity Act
C) Sarbanes-Oxley Act
D) Taft-Hartley Act

Question 28

Which law criminalizes many corporate acts that were previously relegated to various regulatory structures?

A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Sarbanes-Oxley Act
D) Federal Contract Protection Act

Question 29

What federal law offers easier punishments for wayward corporations that have ethics programs in place?

A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Sarbanes-Oxley Act
D) Federal Contract Protection Act

Question 30

All of the following EXCEPT ________ are major components of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

A) protecting investors
B) promoting too-big-to-fail bailouts
C) maintaining an advance warning system
D) enforcing regulations that are already on the books

Question 31

Which law contains broad employee whistle-blower protections against firms and managers that retaliate or harass employees who report suspected corporate wrongdoing?

A) Sarbanes-Oxley Act
B) Procurement Integrity Act
C) Federal Sentencing Guidelines for Organizations
D) Federal Contract Protection Act

Question 32

What law prohibits the release of source selection and proposal information?

A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Sarbanes-Oxley Act
D) Federal Contract Protection Act

Question 33

Recent research into the relationship between ethical behavior and an employee's pay discovered that most companies base pay on ________.

A) entitlement and custom rather than on ethical behavior
B) performance metrics and ethical behavior
C) ethical behavior instead of entitlement and custom
D) guidelines presented in books on philosophy and religion

Question 34

What federal law outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations?

A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Sarbanes-Oxley Act
D) Federal Contract Protection Act

Question 35

Erica, an accountant, notices suspicious accounting practices at the firm where she is employed. She wants to report the unethical behavior to authorities but is worried that she might be harassed or demoted as a result. Which law was passed to protect Erica in this situation?

A) Federal Contract Protection Act
B) Procurement Integrity Act
C) Taft-Hartley Act
D) Sarbanes-Oxley Act

Question 36

Which of the following was NOT included in the FSGO?

A) guidelines for ethics standards
B) job security for whistleblowers
C) guidelines for providing ethics training
D) system for anonymously reporting misconduct

Question 37

Which of the following laws was NOT enacted for the purpose of legislating business ethics?

A) Federal Sentencing Guidelines for Organizations Act
B) Procurement Integrity Act
C) Sarbanes-Oxley Act
D) Taft-Hartley Act

Question 38

An ethical culture consists of all of the following factors EXCEPT ________.

A) ethical leadership
B) guerilla marketing
C) values
D) accountability

Question 39

Which law most likely prompted organizations to create codes of ethics and install ethics hotlines?

A) Corporate and Auditing Accountability, Responsibility, and Transparency Act
B) Federal Sentencing Guidelines for Organizations Act
C) Procurement Integrity Act
D) McCarran-Ferguson Act

Question 40

What law was passed in response to reports of military contracts for $500 toilet seats?

A) Federal Sentencing Guidelines for Organizations
B) Sarbanes-Oxley Act
C) Federal Contract Protection Act
D) Procurement Integrity Act

Question 41

According to the Sarbanes-Oxley Act, any SEC reporting bank that does not have a code of ethics must ________.

A) submit a report to Congress
B) provide an explanation
C) pay a significant fine
D) develop an ethics code

Question 42

Which term refers to a statement of the values adopted by the company, its employees and its directors?

A) code of ethics
B) ethical policies
C) vision statement
D) code of conduct

Question 43

Which quality is emphasized more than in the past for the Baldrige National Quality Award?

A) interpersonal skills
B) leadership ethics
C) personal motivation
D) community service

Question 44

Which of the following is NOT required by the Sarbanes-Oxley Act?

A) Publicly traded firms must disclose whether they have a code of ethics for top executives.
B) Publicly traded firms must not discharge employees who report ethical abuses.
C) Bank-holding companies and SEC reporting banks must have codes of ethics.
D) Corporations must not provide financial loans to executives or directors.

Question 45

Lincoln Enterprises recently fired two employees who were caught stealing tools from the firm's warehouse. As a result, the CEO of Lincoln wants to strengthen the firm's ethical culture and prevent future violations by redesigning the firm's ethics program. Which of the following questions is LEAST relevant when developing Lincoln's new ethics program?

A) What behavior is expected of Lincoln employees?
B) What is the opinion of stakeholders regarding Lincoln's ethics?
C) How are ethical situations communicated and resolved at Lincoln?
D) What is the process for Lincoln establishing a corporate giving program?

Question 46

Which 2003 Supreme Court case upheld Sarbanes-Oxley's whistleblower-protection rule?

A) Dothard v Rawlingson
B) Bechtel v Competitive Technologies Inc.
C) O'Connor v Consolidated Coin Caterers Corp.
D) Grutter v Bollinger

Question 47

The Supreme Court ruling in Bechtel v Competitive Technologies Inc. upheld which federal law?

A) McCarran-Ferguson Act
B) Sarbanes-Oxley Act
C) Davis-Bacon Act
D) Taft-Hartley Act

Question 48

A code of ethics establishes the ________ that the organization lives by.

A) policies
B) procedures
C) values
D) technologies

Question 49

Ethics training should be part of a ________.

A) reactive strategy
B) contextual strategy
C) defensive strategy
D) proactive strategy

Question 50

Julia works as a production supervisor, and she believes one of her subordinates is drinking during his lunch break. Julia's employer does not have a specific rule regarding the subordinate's behavior. Which of the following would most likely assist Julia with her problem in this situation?

A) corporate code of ethics
B) corporate vision statement
C) corporate code of conduct
D) federal legislation

Question 51

Which of the following is NOT a major provision in the SHRM code of ethics?

A) professional responsibility
B) cultural understanding
C) professional development
D) fairness and justice

Question 52

At Tyson Foods, Lily serves as the point person who guides everyone in the firm towards ethical actions. Lily most likely serves as the firm's ________.

A) chief financial officer
B) HR manager
C) ethics officer
D) safety officer

Question 53

Executives and managers at ABC Enterprises actively encourage a strong ethical culture at the firm. Which of the following would be the most likely result of the firm's actions?

A) increased employee interest in development programs
B) frequent use of human resource information systems
C) changes in corporate communication methods
D) improvements in organizational performance

Question 54

According to Walmart's code of ethics, Edward, an employee in the sales department, cannot accept gifts from suppliers because such actions would be a ________.

A) conflict of interest
B) double standard
C) regulatory breach
D) discriminatory act

Question 55

Which term refers to the application of ethical principles to human resource relationships and activities?

A) morals
B) social ethics
C) business ethics
D) human resource ethics

Question 56

The model in which environmental, social, and economic responsibilities are satisfied concurrently is known as ________.

A) corporate social responsibility
B) global activism
C) giving back to the planet
D) restoration and revivification

Question 57

Vision Technologies wants to gain the confidence of employees and customers by developing a strong ethical culture. Which of the following methods would be the best way for the firm's HR department to accomplish this goal?

A) placing the code of ethics on the firm's intranet
B) posting the code of ethics in the breakroom
C) providing ethics training to employees
D) having employees sign ethics contracts

Question 58

Which law prohibits bribes of foreign government officials or business executives?

A) Federal and Foreign Bribery Act
B) Foreign Corrupt Practices Act
C) Corruption Practices Act
D) Sarbanes-Oxley Act

Question 59

In order to maintain the importance of a code of ethics to employees, large firms frequently ________.

A) write a code of conduct
B) send a memo to all employees
C) appoint an ethics officer
D) put the ethical code on the intranet

Question 60

Riley Manufacturing recently developed a code of ethics. Which of the following topics is most likely covered in the document?

A) business conduct
B) fair competition
C) HR issues
D) all of the above

Question 61

________ is a business and investment approach that strives to use the best business practices to meet the needs of current and future shareholders.

A) Corporate social responsibility
B) Corporate sustainability
C) First-in, first-out inventory management
D) Cash-flow maximization

Question 62

Which of the following is not one of the triple bottom line factors of corporate social responsibility?

A) society
B) environment
C) economy
D) culture

Question 63

Angie, an HR manager, has been given the task of strengthening the ethical culture at her firm. Which of the following activities would be most beneficial?

A) e-mailing ethics codes to all employees
B) posting ethics code posters in the hallways
C) writing a memo about ethics to top executives
D) discussing ethics during performance appraisals

Question 64

Which term best describes how a company as a whole behaves towards society?

A) corporate social responsibility
B) business ethics
C) social morality
D) equal opportunity

Question 65

Lincoln Enterprises recently fired two employees who were caught stealing tools from the firm's warehouse. As a result, the CEO of Lincoln wants to strengthen the firm's ethical culture and prevent future violations by requiring employees to participate in ethics training programs. Which of the following most likely undermines the CEO's idea?

A) Middle managers at Lincoln regularly receive reports of questionable employee behavior.
B) Since Lincoln Enterprises is a global firm, the training program would need to be translated.
C) Senior managers at Lincoln indicate that valuable work time would be lost with a training program.
D) Competitors of Lincoln Enterprises provide regular ethics training programs to managers and employees.

Question 66

Lincoln Enterprises recently fired two employees who were caught stealing tools from the firm's warehouse. As a result, the CEO of Lincoln wants to strengthen the firm's ethical culture and prevent future violations by requiring employees to participate in ethics training programs. Which of the following best supports the CEO's idea?

A) Lincoln Enterprises desires the respect of citizens in the local community.
B) The social contract developed by Lincoln Enterprises addresses employee concerns.
C) HR managers at Lincoln Enterprises provide new employees with policy handbooks.
D) The Sarbanes-Oxley Act requires Lincoln Enterprises to provide ethics training courses.

Question 67

The implied, enforced, or felt obligation of managers, acting in their official capacities, to serve or protect the interests of groups other than themselves is known as ________.

A) human resource ethics
B) environmental morality
C) corporate social responsibility
D) business centered morality

Question 68

The primary purpose of an ethics audit is to ________.

A) ensure that EEO policies are being implemented
B) supplement a company's code of ethics
C) evaluate a company's ethical culture
D) interview ethics training candidates

Question 69

A global organization known as ________ helps member companies achieve success in ways that respect ethical values, people, communities, and the environment.

A) Global Businesses United for Change
B) World Commission on Sustainability
C) Socially Responsible Corporate Citizens
D) Business for Social Responsibility

Question 70

According to a recent survey by Brighter Planet, although more firms are engaging in green activities, the effectiveness of these efforts has declined. Some believe that the problem with corporate social responsibility is that ________.

A) no universal set of corporate social responsibility guidelines is available
B) each firm has to follow a universal set of corporate social responsibility guidelines
C) corporations really don't want to pursue social responsibility
D) corporate social responsibility is a load of value-destroying nonsense

Question 71

Harvey Electronics has used a number of methods to create an ethical culture that both employees and customers appreciate. What is the most effective way for the firm to sustain its ethical culture?

A) asking job candidates ethical questions
B) implementing an ethics audit regularly
C) publishing the firm's code of ethics periodically
D) ensuring that new employees receive ethics training

Question 72

Before the 2010 oil spill in the Gulf of Mexico, British Petroleum (BP) had ________.

A) provided sustainability training to its oil rig workers
B) been fined more than $100 million for safety violations
C) never claimed to be anything more than an oil company
D) invested billions in stronger safety protocols on its drilling rigs

Question 73

Sustainability has been an integral part of ________ for more than 65 years.

A) McDonald's
B) Home Depot
C) JP Morgan Chase
D) Johnson & Johnson

Question 74

When a corporation behaves as if it has a conscience, it is said to be ________.

A) globally ethical
B) socially responsible
C) participative
D) charitable

Question 75

The concept of ________ has evolved from the traditional view of corporate social responsibility.

A) social scaffolding
B) planetary progressivism
C) work-life balance
D) corporate sustainability

Question 76

In his book Capitalism and Freedom, Milton Friedman argues that ________.

A) doing well while doing good is an essential corporate mantra
B) socially responsible behavior adds to the corporation's bottom line
C) corporations are responsible for the environment, society, and profits
D) the only social responsibility of business is to increase profits

Question 77

Over the years, Procter & Gamble has pursued programs in all of the following areas EXCEPT ________.

A) strip mining in Eastern Kentucky
B) employment opportunities for women and minorities
C) environment-protection technology
D) involvement in civic activities and the political process

Question 78

According to research, what characteristic is most frequently shared by firms that receive high rankings for corporate social responsibility?

A) encouraging employees to participate in civic activities
B) requiring managers to understand ethics laws
C) promoting integrity through ethics training
D) linking compensation to ethical behaviors

Question 79

In a business sense, one can think of corporate sustainability as providing ________.

A) long-term profitability
B) short-run cash flow
C) intermediate tax breaks
D) just-in-time inventory management

Question 80

A sustainable corporation is capable of continuing ________.

A) in today's marketplace
B) in the marketplace of the future
C) not only in today's marketplace but also in the marketplace of the future
D) None of the above