Deck 6: Organizational Ethics

Question 1

In a benevolence ethical climate,the interests of the company's employees and external stakeholders most likely would be given high priority.

Answer 1

True

Question 2

Bribery is found in nearly every sector of the global marketplace,but can be worse in some parts of the world.

Answer 2

True

Question 3

The American Institute of Certified Public Accountants Code directs accountants to be responsible to their clients and their profession,but not to the public.

Answer 3

False

Question 4

Personal values and moral character play key roles in improving a company's ethical performance.

Question 5

All ethics issues in business are the same.

Question 6

Ethics training is typically the most costly element of an ethics program.

Question 7

If a manager approaches ethical issues with a self-centered approach,emphasis will be on:

A) Integrity.
B) Social relationship.
C) Economic efficiency.
D) Laws.

Question 8

The core components upon which a company's ethical performance depends include:

A) The values and virtues of the managers.
B) The personal character of the managers and employees.
C) The traditions, attitudes, and business practices built into a company's culture.
D) All of the above.

Question 9

Which of the following is not an example of an ethical criterion?

A) Egoism.
B) Concern for others.
C) Principle.
D) Corporate driven.

Question 10

Marketing ethics include having concern for consumer health and safety issues.

Question 11

It is impossible for multiple ethical climates to exist within one organization.

Question 12

The majority of large U.S.corporations do not have codes of ethics.

Question 13

According to a recent Transparency International survey,Denmark and New Zealand are two countries that are least likely to be subjected to bribery.

Question 14

If a manger approaches ethics with benevolence in mind,he or she would stress what?

A) Friendly relations with an employee.
B) Company rules and procedures.
C) Laws and professional codes.
D) Economic efficiency.

Question 15

Managers,as major decision-makers,are one of the keys to whether a company will act ethically or unethically.

Question 16

The unspoken understanding among employees of what is and is not acceptable behavior is called:

A) Ethical climate.
B) Efficiency.
C) Success.
D) Rites and rituals.

Question 17

In most companies,a moral atmosphere cannot be detected.

Question 18

Today,more companies than ever,are turning to formal ethics audits to measure the quality of their ethics programs.

Question 19

Honesty,integrity and accuracy are absolute requirements of the accounting function.

Question 20

In the United States,most ethics policies are primarily based on the company's mission and vision.

Question 21

All of the following are commitments of the Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants except:

A) The Public Interest.
B) Objectivity and Independence.
C) Due Process.
D) Due Care.

Question 22

All of the following are considered to be ethical issues for marketing professionals except:

A) Fostering trust in the marketing system.
B) Embracing ethical values.
C) Doing no harm.
D) Ignoring market fair dealing.

Question 23

Ethisphere Magazine recognizes and rewards ethical leadership and business practices worldwide according to their:

A) Regulatory Percentage Track (RPT).
B) Ethics and Leadership Radar (ELR).
C) Quality Measurement (QM).
D) Ethical Quotient (EQ).

Question 24

Which of these components are not considered during a risk assessment audit to gauge the effectiveness of a firm's ethics programs?

A) The financial bottom line.
B) Top management commitment.
C) Training programs.
D) Ethical policies.

Question 25

A member of the Chartered Financial Analyst Institute (CFA)must:

A) Promote the integrity of and uphold the rules governing global capital markets.
B) Act with integrity, competence, diligence, respect, and in an ethical manner with the public.
C) Maintain and improve their professional competence.
D) All of the above.

Question 26

A giant step is taken toward improving ethical performance throughout the company when:

A) The firm hires a university ethics professor to lecture employees on moral philosophy.
B) The Justice Department launches an investigation of the firm's pricing practices.
C) Senior-level managers signal to employees that they believe ethics is a high priority.
D) A consumer hot line is created and staffed 24 hours a day.

Question 27

A company that channels employee behavior in a lawful direction by emphasizing the threat of detection and punishment is:

A) Operating under the compliance-based approach.
B) Practicing "tone at the top."
C) Operating under the integrity-based approach.
D) Operating under the instrumental policy approach.

Question 28

Building ethical safeguards into a company's everyday routines is called:

A) Change management.
B) Justifying ethics.
C) Institutionalizing ethics.
D) Ethical awareness.

Question 29

The critical component in installing an effective ethics program is:

A) To allow all employees the freedom to act as they wish.
B) In hiring an expensive ethics consultant.
C) The integration of various ethics safeguards into a comprehensive program.
D) Maintaining the position as the industry sales leader.

Question 30

Ethics policies typically cover all of the following issues except:

A) Developing guidelines for accepting or refusing gifts from suppliers.
B) Encouraging discriminatory personnel practices.
C) Avoiding conflict of interest.
D) Maintaining the security of proprietary information.

Question 31

Integrity-based ethics programs:

A) Seeks to avoid legal sanctions.
B) Combines concern for the law with an emphasis on employee responsibility.
C) Threatens employees with punishment for non-compliance with the ethics program.
D) Are predominately implemented within the European Union.

Question 32

Most ethics or compliance officers are generally entrusted to:

A) Act as a liaison between the company and the Securities and Exchange Commission.
B) Reduce the risks to the company of employee misconduct.
C) Annually distribute copies of the company's code of ethics to all interested stakeholders.
D) Arrange for ethics training for employees at a nearby university.

Question 33

By law,the financial records of publicly held companies are required to be:

A) Managed by an accounting department of at least five CPAs.
B) Summarized in the employee manual for new hires.
C) Reviewed quarterly by the IRS.
D) Audited by a certified professional accounting firm.

Question 34

Which type of employee is most likely to report ethical issues in the workplace?

A) Rank and file.
B) Middle managers.
C) Executives.
D) Temporary workers.

Question 35

Business managers need a set of ethical guidelines to help them:

A) Understand the changing customs throughout the world.
B) Justify the resolution which best helps them.
C) Identify and analyze the nature of the ethical problem.
D) None of the above.

Question 36

Which ethical criterion is described by the idea that a company should strive for efficiency?

A) Egoism.
B) Benevolence.
C) Principle.
D) Business-centered.

Question 37

Ethical challenges for information technology employees include:

A) Data privacy.
B)
B) Laptop speed.
C) Copyright protection.
D) Both A and C, but not

Question 38

The most effective ethics programs utilize which of the following?

A) Written policy.
B) Posters.
C) Quick reference guides.
D) All of the above.

Question 39

When attempting to build ethical safeguards into the company,businesses can take the following specific approaches:

A) Institutional and Legal.
B) Legal and Practical.
C) Compliance and Integrity.
D) Value-based and Consequentialism.

Question 40

Which company ethics safeguard is commonly implemented as an employee "helpline"?

A) Top management commitment.
B) Code of ethics.
C) Reporting mechanisms.
D) Compliance tracking.

Question 41

Not all ethics issues in business are the same.Discuss the distinct ethical issues across three different organizational functions.Highlight details of the professional codes of conduct for each.

Question 42

The purpose of the Institute of Business Ethics' mobile application "Say No Toolkit" is to:

A) Monitor inter-office dating.
B) Always get the lowest prices on supplies.
C) Minimize the risk of corruption.
D) Avoid drugs in the workplace.

Question 43

Recipients of the corporate ethics awards show that:

A) Awards are based on economic power, not ethical performance.
B) Firms can be financially successful and ethically focused.
C) Being legally compliant results in receiving an ethics award.
D) Improving ethical performance is very costly, but bolsters a firm's reputation.

Question 44

Define ethical climate.Discuss the differences and similarities among the ethical climates outlined in the textbook.

Question 45

Define bribery.Explain why certain countries are less likely to participate in such acts.

Question 46

Which of these statements is true about the U.K.Bribery Act?

A) Provides an exemption for "facilitating payments".
B) Contains a strict liability offense for failure to prevent bribery by commercial organizations.
C) Prohibits bribery only for government officials.
D) Requires that improper actions be made "corruptly."

Question 47

How are firms honored for their efforts to create an ethical climate? Provide examples of role model companies and what efforts they took to develop effective ethics programs.

Question 48

Which U.S.Act prohibits executives representing U.S.-based companies from paying bribes to foreign government officials,political parties,or political candidates?

A) The USA Patriot Act.
B) The U.K. Bribery Act.
C) The Corruption of Foreign Officials Act.
D) The U.S. Foreign Corrupt Practices Act.

Question 49

Construct a comprehensive ethics program using four of the five ethical safeguards identified in the textbook.

Question 50

Describe how a firm might implement the "Say No Toolkit" to help combat corruption.How could potential employee resistance be overcome? Could there be any downsides to using the tool? In what ways could the firm benefit?

Question 51

Which country recently enacted new laws to counter bribery and corruption?

A) Russia.
B) Somalia.
C) Brazil.
D) Argentina.

Question 52

Discuss the importance of ethics training at different levels of an organization.Is it more important for mangers to receive ethical training? Why or why not?