Deck 2: Business Ethics and Corporate Social Responsibility

Question 1

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

Answer 1

C
Explanation: C)Jeff Immelt,GE's CEO,begins and ends each annual meeting of 220 officers and of its 600 senior managers by restating the company's fundamental integrity principles: "GE's business success is built on our reputation with all stakeholders for lawful and ethical behavior.Commercial considerations never justify cutting corners.Upholding this standard is the specific responsibility of the leaders in the room."

Question 2

What is the difference between ethics and corporate social responsibility as each concept applies to corporations?

Answer 2

Ethics is the discipline dealing with what is good and bad,or right and wrong,or with moral duty and obligation.Ethics is about deciding whether an action is good or bad and what to do about it if it is bad.Those in management make ethical (or unethical)decisions every day regarding hiring,safety,and compensation.Corporate social responsibility (CSR)is the implied,enforced,or felt obligation of managers,acting in their official capacity,to serve or protect the interests of groups other than themselves.When a corporation behaves as if it has a conscience,it is said to be socially responsible.CSR considers the overall influence of corporations on society at large and goes beyond the interests of shareholders.It is how a company as a whole behaves toward society.

Question 3

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

Answer 3

D
Explanation: D)Ethics is the discipline dealing with what is good and bad,or right and wrong,or with moral duty and obligation.

Question 4

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 5

Ethics,corporate social responsibility,and corporate sustainability are everyone's business,including HR professionals.

Question 6

Compliance with the law sets the minimum standard for ethical behavior in business.

Question 7

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 8

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

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

Question 9

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

Question 10

Surveys indicate that 25% of investors would move their account if they discovered the company was involved in unethical behavior.

Question 11

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

Question 12

Laws ________ ethical behavior.

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

Question 13

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 14

Citizenship is the discipline dealing with what is good and bad,or right and wrong,or with moral duty and obligation.

Question 15

Sources of ethical guidance exclude laws because laws are mandated by the government and not personal beliefs and values.

Question 16

Unethical practices are limited to Wall Street because of the money and pressure involved.

Question 17

Most of the 500 largest corporations in the U.S.now have a code of ethics.

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

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 20

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 21

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 22

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 23

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 24

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 25

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 26

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 27

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 28

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 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

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 31

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 32

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 33

Laws offer guidance to ethical behavior,prohibiting acts that can be especially harmful to others.

Question 34

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 35

According to psychologists,the behavior and advice of "significant others" is a source of ethical guidance.

Question 36

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 37

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

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

Question 38

Whistleblower protection 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

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

According to the model of ethics,advice from friends,holy books,and laws serve as sources of ethical guidance.

Question 41

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 42

Although laws cannot mandate ethics,they may be able to identify the baseline separating what is good and what is bad.

Question 43

The garment factory building collapse in Bangladesh in 2013 in which 1,127 people lost their lives,is simply an example of poor engineering.

Question 44

According to the Procurement Integrity Act,if a firm that has an ethics program in place is found guilty of misconduct,the firm will receive a reduced punishment.

Question 45

In the 2003 case Bechtel v Competitive Technologies Inc.,the Supreme Court overturned Sarbanes-Oxley's whistleblower-protection rule.

Question 46

A recent survey of 358 compliance and ethical professionals revealed that ________.

A) nearly seventy-five percent of companies include ethical compliance as a basis of compensation
B) twenty-seven percent of companies penalize employees for practicing ethical behavior
C) about one company in six ties employee bonuses and incentives to ethical performance
D) None of the above

Question 47

The Procurement Integrity Act of 1988 was passed after reports of military contracts for $500 toilet seats and $5,000 hammers.

Question 48

The Corporate and Auditing Accountability,Responsibility and Transparency Act is also known as the Sarbanes-Oxley Act.

Question 49

According to the Malcolm Baldrige National Quality Award,senior leaders should ________.

A) serve as figureheads
B) serve as role models
C) delegate responsibility for ethical behavior to middle managers
D) operate outside of ethical constraints that apply to rank and file employees

Question 50

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 51

The Federal Sentencing Guidelines for Organizations Act contains broad employee whistle-blower protections that subject corporations to penalties for retaliating against employees who report suspected corporate wrongdoing.

Question 52

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 53

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 54

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law in 2010.

Question 55

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 56

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 57

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 58

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 59

The Sarbanes-Oxley Act was passed in response to reports of out-of-control military spending.

Question 60

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 61

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

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

Question 62

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 63

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 64

A code of ethics establishes the rules that organization lives by and becomes part of the organization's corporate culture.

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 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 66

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 67

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 68

Identify and discuss the federal government's four attempts to legislate business ethics since the late 1980s.

Question 69

According to research studies,unethical companies financially outperform ethical companies,although ethical companies are more successful with recruiting.

Question 70

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 71

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 72

The Corporate and Auditing Accountability,Responsibility and Transparency Act requires SEC reporting banks and bank holding companies to have a code of ethics.

Question 73

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 74

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 75

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 76

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

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

Question 77

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 78

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 79

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 80

How do firms benefit from a strong ethical culture? How can HR departments foster such cultures?