Deck 3: Organizational Ethics

Question 1

Information systems team coordinate the recruitment, training, and development of personnel for all aspects of an organization.

Answer 1

False
Explanation: Human resources management (HRM) coordinates the recruitment, training, and development of personnel for all aspects of an organization.

Question 2

The human resources function within an organization should ideally be directly involved in the creation of a career development program of an employee.

Answer 2

True

Question 3

Marketing, sales, and customer service are identified as the key functions in a value chain.

Answer 3

True

Question 4

A value chain is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service.

Question 5

Finance, which is a primary activity of an organization's value chain, sources components and builds products for an organization.

Question 6

An organization's operating culture represents the sum of all the policies and procedures, both written and informal.

Question 7

The human resources function within an organization should ideally be directly involved in the marketing process of the organization.

Question 8

Utilitarianism refers to the theory that suggests actions are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of the situation.

Question 9

The code of ethics adapted by the American Marketing Association speaks about improving "customer confidence in the integrity of the marketing exchange system."

Question 10

Given that research and development (R&D) teams do not interact directly with customers, the potential for ethical dilemmas is nonexistent.

Question 11

Shareholders lack interest in the ethical performance of an organization.

Question 12

Research and development (R&D) professionals carry the responsibility for the future growth of an organization.

Question 13

Distribution and marketing are line functions, supporting each of the key functional areas.

Question 14

Universal ethics refers to ethical choices that offer the greatest good for the greatest number of people.

Question 15

For a research and development (R&D) team, the real ethical dilemmas come when decisions are made about product quality.

Question 16

Marketing (and advertising) is one of the key functions in a value chain.

Question 17

The human resources function within an organization should ideally be directly involved in the maintenance of the technology in the organization.

Question 18

The manufacturing process is responsible for ensuring that a product reaches the hands of a satisfied customer.

Question 19

Organizational culture can be defined as the values, beliefs, and norms shared by the employees as well as the competitors of that organization.

Question 20

Marketing professionals abide by a code of ethics adapted by the American Marketing Association.

Question 21

The obligation that an auditing firm has to a paying client while owing an objective, third-party assessment of that client's financial stability to stakeholders and potential investors represents a potentially significant conflict of interest.

Question 22

An organization's human resources (HR) professionals must help ensure that ethics is a top organizational priority.

Question 23

Selling a product that has the potential to be harmful to a firm's customers represents a significant conflict of interest.

Question 24

The advocates of ethical business conduct argue that an organization's marketing team should be at the center of any corporate code of ethics.

Question 25

The accounting function provides the certification, by an impartial third-party professional, that an organization's financial statements are accurate.

Question 26

The accounting profession is governed by a set of laws and established legal precedents.

Question 27

An organization's human resources (HR) must ensure that the leadership selection and development processes include an ethics component.

Question 28

The advocates of ethical business conduct argue that an organization's human resources (HR) should be the sole creator of any corporate code of ethics.

Question 29

Some of the illegal financial functions carried out by an organization include underreporting income, overvaluing assets, and taking questionable deductions.

Question 30

The human resources function within an organization seldom needs to be involved in the relationship between the company and an employee.

Question 31

Marketing professionals are responsible for ensuring that the right programs and policies for ethical business conduct are in place.

Question 32

If an employee leaves a company, the human resources department is responsible for hosting an exit interview to ensure that anything that the organization can learn from the employee's departure is fed back into the company's strategic plan for future growth and development.

Question 33

When a company's financial statements have been certified by an objective third-party to be "clean," that certification is meant to be for the public's benefit rather than the company's benefit.

Question 34

The human resources function of an organization can be divided into three distinct areas: financial transactions, auditing, and accounting function.

Question 35

Profits are the main reason behind stretching the truth and bending the rules that have become a regular occurrence in a workplace.

Question 36

It is illegal to defer receipts from one quarter to the next to manage one's tax liabilities.

Question 37

A situation in which one relationship or obligation places an individual or firm in direct conflict with an existing relationship or obligation refers to a conflict of interest.

Question 38

Identify a true statement about a company's organizational culture.

A)It represents the sum of all the policies and procedures from each of the functional departments in the organization.
B)It is governed by a set of laws and legal precedents and is closed to interpretation.
C)It consists of suggestions established in an organization on how to make fraudulent practices look legal.
D)It refers to the characteristic of publicly committing to the highest professional standards and sticking to that commitment.

Question 39

The auditing function keeps track of all the financial transactions of an organization by documenting the money coming in and money going out and balancing the accounts at the end of the period.

Question 40

Nonprofit organizations do not face problems with unethical behavior.

Question 41

The research and development (R&D) department of an organization:

A)is solely responsible for creating employees' career development programs.
B)has a minute impact on the success of the organization.
C)carries the responsibility for the future growth of the organization.
D)is the most important department of the organization.

Question 42

_____ serves as a support line function to key functional areas in an organization's value chain.

A)Advertising
B)Supply chain management
C)Human resources management
D)Distribution

Question 43

Which of the following statements is true of a company's value chain?

A)Marketing, sales, and customer service are the support activities.
B)The research and development department coordinates the recruitment of personnel for all aspects of the organization.
C)The marketing department sources the components and builds the product.
D)Supply chain management and operations are the primary activities.

Question 44

Which of the following statements is true of organizational culture?

A)Organizational culture represents only the written policies and procedures of an organization.
B)Organizational culture includes the values, beliefs, and norms shared by all employees of that organization.
C)Employees' personal value system is always in tune with the ethical standards of the organization's operating culture.
D)Stakeholders lack interest in the ethical performance of an organization.

Question 45

Marketing professionals abide by a code of ethics adapted by the _____.

A)Society for Marketing Resources
B)American Marketing Association
C)American Ethics Association
D)Marketers' Ethics Resource Center

Question 46

Brendon joins Almer Inc. as the head of the research and development (R&D) team. In order to allow Almer Inc. to capture and maintain a leading position in the market, Brendon should _____.

A)incorporate customer feedback from market research and competitive feedback from closely monitoring the organization's competition
B)coordinate the recruitment, training, and development of personnel for all aspects of the organization
C)audit and certify the accuracy of the company's financial statements
D)maintain the technological backbone of the organization

Question 47

Which of the following statements is true of marketing?

A)The marketing process is responsible for ensuring that the product design meets all the required specifications.
B)Marketers see themselves as responsible for ensuring product quality.
C)Marketers see themselves as providing products (or services) to customers who have already expressed a need for and a desire to purchase those products.
D)The marketing process is responsible for ensuring that products gets manufactured within the stipulated period of time.

Question 48

Anderson Enterprises endorses low power distance which implies that the firm lays emphasis on a less consultative or democratic work structure. Subordinates work on important assignments and managers often socialize with them. Which of the following concepts is being reflected in the above scenario?

A)Ethical relativism
B)Value chain
C)Organizational culture
D)Corporate conscience

Question 49

Exotic Crafts Inc., a handicraft manufacturing company, has an established marketing department responsible for various important functions. The marketing department is most likely engaged in _____.

A)managing individual hardware and software needs that are specific to the organization
B)ensuring that the products reach the hands of a satisfied customer
C)coordinating the recruitment, promotion, and remuneration of the employees
D)auditing and certifying the accuracy of the company's financial statements

Question 50

Cathy heads the research and development (R&D) team of Anderson Enterprises. Which of the following R&D functions should Cathy and her team undertake to allow the organization capture and maintain a leading position in its market?

A)Cathy and her team should manage individual hardware and software needs that are specific to the organization and its line of business.
B)Cathy and her team should coordinate the recruitment, training, and development of personnel for all aspects of the organization.
C)Cathy and her team should certify the accuracy of the company's financial statements.
D)Cathy and her team should make a complex set of risk assessments and technical judgments in order to deliver a product design.

Question 51

Identify a true statement about value chain.

A)It is inclusive of the values, beliefs, and norms shared by all the employees of an organization.
B)It represents the sum of all the policies and procedures-both written and informal-from each of the functional departments in an organization.
C)It is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service.
D)It helps coordinate with human resources in the recruitment, training, and development of personnel for all aspects of an organization.

Question 52

In the context of the value chain of an organization, which of the following is a line function of an organization?

A)Marketing
B)Supply chain management
C)Distribution
D)Human resources management

Question 53

In the context of the value chain of an organization, _____ is a support activity.

A)marketing
B)general administration
C)distribution
D)customer service

Question 54

_____ is represented by ethical choices that offer the greatest good for the greatest number of people.

A)Deontology
B)Utilitarianism
C)Virtue ethics
D)State consequentialism

Question 55

Actions that are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of the situation, are known as _____.

A)utilitarianism
B)virtue ethics
C)consequentialism
D)universal ethics

Question 56

Actions placed within a strictly moral context instead of basing actions on the needs of a particular situation is termed _____.

A)pragmatic ethics
B)virtue ethics
C)normative ethics
D)universal ethics

Question 57

A composition of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service is termed _____.

A)value chain
B)cognitive work analysis
C)dynamic simulation
D)corporate governance

Question 58

According to the value chain of an organization, which of the following is classified as a primary activity?

A)Human resources management
B)General administration
C)Systems development
D)Sales and marketing

Question 59

A primary activity of an organization according to the value chain is that of _____.

A)human resources management
B)recruitment and remuneration management
C)supply chain management
D)organizational development management

Question 60

_____ serves as a support line function to key functional areas in an organization's value chain.

A)Technology
B)Manufacturing
C)Supply chain management
D)Distribution

Question 61

The certification of an organization's financial statements or books, by an impartial third-party professional, as being accurate is offered by the _____.

A)auditing function
B)compliance function
C)accounting function
D)financial transactions function

Question 62

Which of the following represents a legal accounting practice?

A)Taking questionable deductions
B)Overvaluing assets
C)Deferring receipts from one quarter to the next to manage tax liability
D)Underreporting income to decrease the amount paid as taxes

Question 63

The efficient management of providing payroll and benefits for happy and productive employees is looked after by the _____ department of an organization.

A)research and development
B)human resources
C)consumer relations
D)marketing

Question 64

The marketing challenge is more directly aligned to the debate between universal ethics and _____.

A)consequentialism
B)pragmatism
C)utilitarianism
D)subjectivism

Question 65

ThinkNow is an advertising firm based in Dallas, Texas. One of its departments is in charge of the hiring process and is responsible for the orientation of newly hired employees. Which of the following organizational areas does this department represent?

A)Finance
B)Human resources
C)Research and development
D)Information systems

Question 66

The accounting profession is governed by a set of _____.

A)generally accepted accounting principles
B)laws for accounting
C)established legal precedents for accounting
D)universal ethics

Question 67

The _____ keeps track of a company's financial transactions by documenting money coming in and money going out and balances the accounts at the end of the period.

A)auditing function
B)compliance function
C)accounting function
D)financial transactions function

Question 68

If an employee leaves a company, the _____ department should host an exit interview to ensure that anything the organization can learn from the employee's departure is fed back into the company's strategic plan for future growth and development.

A)research and development
B)marketing
C)finance
D)human resources

Question 69

An argument made by the advocates of ethical business conduct about the human resources department is that it should _____.

A)sideline issues related to ethics
B)ensure that ethics is given the least priority
C)not include an ethics component in the leadership selection process
D)not be the sole creator of the code

Question 70

The need for certified financial docu­ments assumes great importance for an organization when _____.

A)it goes public by selling stock in the organization on a public stock exchange
B)it needs to recruit a large number of employees
C)it has to increase its corporate social responsibility (CSR) activities
D)it is being charged of fraudulent practices by its employees and shareholders

Question 71

For the accounting profession, the last resort for ethical guidance and leadership is the Code of Conduct issued by the _____.

A)International Association of Public Accountants
B)Certified Public Accountants Association
C)Accounting Institute of Ethical Conduct
D)American Institute of Certified Public Accountants

Question 72

A company is of the view that what is best for its shareholders may not be best for its employees and the community. It also believes that the most efficient means to achieve increased profits is to close its factory and move production overseas, which is not agreed upon by its shareholders. This is an example of _____.

A)a disconfirmed expectancy
B)a conflict of interest
C)emotional contagion
D)social loafing

Question 73

Which of the following statements is true of ethical challenges in organizations?

A)Nonprofit organizations do not face problems with unethical behavior.
B)The main reason behind bending the rules regularly in organizations is the motive of gaining profits.
C)The pursuit of profit in any circumstance is unethical.
D)People across all organizations face the same kind of ethical challenges in their day-to-day activities.

Question 74

Amanda heads the human resources department in Elenear Enterprises. The management has entrusted her with certain functions. Within the organization, Amanda should be directly involved in:

A)the marketing of the organization's products.
B)the maintenance of the technology in the organization.
C)the recruitment and selection of the right candidates for different positions.
D)the incorporation of customer feedback and competitive feedback.

Question 75

Ideally, the human resources function within an organization should be directly involved in:

A)the documentation of disciplinary behavior and remedial training, if needed.
B)the maintenance of the technology in the organization-data transfer and security, e-mail communications, internal and external websites, and so on.
C)the marketing of the organization's products.
D)the incorporation of customer feedback from market research and competitive feedback from closely monitoring the competitors.

Question 76

Which of the following is a human resources function within an organization?

A)Incorporation of customer feedback and competitive feedback
B)Maintenance of the technology in the organization
C)Marketing of the organization's products
D)Documentation of periodic performance reviews

Question 77

In an organization, _____ see themselves as providing products (or services) to customers who have already expressed a need for and a desire to purchase those products.

A)Appraisers
B)Marketers
C)Decision analysts
D)Purchasing managers

Question 78

_____ is defined as a situation where one relationship or obligation places an individual or firm in direct dispute with an existing relationship or obligation.

A)Disconfirmed expectancy
B)Conflict of interest
C)Right of option
D)Moral hazard

Question 79

The code of ethics adapted by the _____ speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system."

A)American Counseling Association (ACA)
B)Society for Marketing Resources
C)American Marketing Association (AMA)
D)Marketing Research Association (MRA)

Question 80

Walter's Inc., a cement manufacturing firm, fails to meet the deadline for delivering 500 kg of cement to QuickContruct Inc. The officer responsible for the distribution and sale at Walter Inc. bribes the officer at QuickContruct Inc. to alter the date of delivery in the original contract. Which of the following concepts is best illustrated in the above scenario?

A)Ethical dilemma
B)Social loafing
C)Ethical transgression
D)Utilitarianism