Deck 8: Developing an Effective Ethics Program

Question 1

What is not a minimum requirement of an ethics and compliance program, according to the FSGO?

A) Standards and procedures that are capable of detecting misconduct.
B) High level personnel are responsible for an ethics and compliance program.
C) Standards and procedures are not communicated; employees are just expected to know.
D) Consistent enforcement of standards, codes and punishment.
E) Continuous improvement of the program.

Answer 1

Standards and procedures are not communicated; employees are just expected to know.

Question 2

A legal test of a company's ethical compliance program is possible when an

A) individual employee is charged with misconduct.
B) audit of the ethics compliance program occurs.
C) outside auditing of the ethics program occurs.
D) internal attorney's risk assessment occurs.
E) outside attorney's risk assessment occurs.

Answer 2

individual employee is charged with misconduct.

Question 3

Which of the following is not a responsibility of ethics officers?

A) Assessing the needs and risks that an ethics program must address.
B) Developing and distributing a code of conduct/ethics.
C) Ensuring the company is in compliance with government regulations.
D) Writing legislating pertaining to ethics.
E) Monitoring and auditing ethical conduct.

Answer 3

Monitoring and auditing ethical conduct.

Question 4

Ethical decision making is influenced by

A) coworkers.
B) the tone at the top.
C) corporate culture.
D) opportunities to engage in unethical behavior.
E) Ethical decision making is influenced by all of these.

Question 5

NYNEX Corp. set up an ethics hotline and received over 2,700 calls in one year. Which component of the Federal Sentencing Guidelines for Organizations compliance program does this satisfy?

A) Code of conduct
B) Enforcement of standards, codes, and rules
C) Delegation of authority to ethical persons
D) Systems for monitoring, auditing, and reporting misconduct
E) Ethics training

Question 6

Which of the following statements about training is false?

A) It can educate employees about the firm's policies and expectations, as well as relevant laws and regulations and general social standards.
B) It can dictate personal ethics on the job.
C) It can make employees aware of available resources, support systems, and designated personnel who can assist them with ethical and legal advice.
D) It can empower employees to ask tough questions and make ethical decisions.
E) It can affect the influence of organizational culture, coworkers and superiors, and opportunity.

Question 7

According to the text, a highly effective method of ethics training is

A) lectures.
B) videos.
C) religious training.
D) surveys.
E) exercise in resolving ethical dilemmas that relate to actual situations employees may face on the job.

Question 8

It is important for ethics programs to differentiate between organizational ethics and

A) the law.
B) societal ethics.
C) personal ethics.
D) supplier ethics.
E) Internet ethics.

Question 9

Which of the following is not a goal of an ethics training program?

A) To identify the contact person who could help in resolving ethical problems
B) To improve employee understanding of ethical issues and the ability to identify them
C) To control employees' personal ethics and moral beliefs
D) To inform employees of related procedures and rules
E) To educate employees about formal ethical frameworks and models for analyzing business ethics issues

Question 10

An organizational ethics program should help reduce the possibility of penalties and

A) positive public reaction to misconduct.
B) negative public reaction to ethical conduct.
C) negative public reaction to misconduct.
D) positive public reaction to ethical conduct.
E) indifferent public reaction to conduct.

Question 11

Organizational probation, the ultimate "stick" associated with the FSGO, involves on-site observation by consultants, monitoring of the company's ethical compliance efforts, and

A) reporting to the Sentencing Commission on the company's progress in avoiding misconduct.
B) installation of an ethics hotline.
C) payment of any penalties levied.
D) appointment of an appropriate high-level manager to oversee the company's program.
E) divestiture of all assets.

Question 12

Which of the following is not a common value that should be included in a code of ethics?

A) Fairness
B) Dishonesty
C) Responsibility
D) Respect
E) Trustworthiness

Question 13

Discuss how the minimum requirements for an ethical compliance program as suggested by the U.S. Sentencing Commission could prevent or reduce unethical behavior within an organization.

Question 14

Discuss the system the U.S. Sentencing Commission has devised of mitigating penalties for organizations that have an effective ethical compliance program.