Deck 3: Organizational Ethics

Question 1

For the R&D team,the real ethical dilemmas come when decisions are made about product quality.

Answer 1

True

Question 2

Finance is a key function in a value chain.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

Human resource management supports each of the key functional areas in a value chain.

Question 6

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

Question 7

Shareholders lack interest in the ethical performance of an organization.

Question 8

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

Question 9

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

Question 10

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

Question 11

Research and development (R&D)teams coordinate the recruitment,training,and development of personnel for all aspects of the organization.

Question 12

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 13

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

Question 14

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 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

The human resource function within an organization should ideally be directly involved in marketing the organization's products.

Question 21

The human resource function of an organization can be divided into two distinct areas: financial transactions and accounting function.

Question 22

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.

Question 23

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

Question 24

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

Question 25

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

Question 26

The advocates of ethical business conduct argue that HR should be the sole creator of any corporate code of ethics.

Question 27

HR professionals must help ensure that ethics is a top organizational priority.

Question 28

If an employee leaves a company,the human resource department should host 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 29

HR must ensure that the leadership selection and development processes include an ethics component.

Question 30

Some of the illegal financial functions include underreporting income,overvaluing assets,and taking questionable deductions.

Question 31

The advocates of ethical business conduct argue that HR should be at the center of any corporate code of ethics.

Question 32

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

Question 33

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

Question 34

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

Question 35

Nonprofit organizations do not face problems with unethical behavior.

Question 36

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

Question 37

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 38

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

Question 39

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

Question 40

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

Question 41

Which of the following statements is true of a value chain?

A) It includes the values,beliefs,and norms shared by all the employees of that organization.
B) It represents the sum of all the policies and procedures-both written and informal-from each of the functional departments in the 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 refers to the actions that are taken out of duty and obligation to a purely moral ideal,rather than based on the needs of the situation.

Question 42

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 43

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 the product gets manufactured within the stipulated period of time.

Question 44

Ethical choices that offer the greatest good for the greatest number of people refer to the theory of _____.

A) moral obligation
B) utilitarianism
C) absolute advantage
D) liberalism

Question 45

Cathy heads the R&D team of Anderson Enterprises.Which of the following R&D functions should Cathy and her team undertake in the firm 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 46

Which of the following refers to the actions that are taken out of duty and obligation to a purely moral ideal,rather than based on the needs of the situation,since the principles are seen to apply to everyone,everywhere,and all the time?

A) Moral obligation theory
B) Virtue ethics
C) Freudian theory
D) Universal ethics

Question 47

Brendon joins Almer Inc.as the head of the research and development (R&D)team.Which of the following functions is Brendon likely to undertake in his new role to allow the organization capture and maintain a leading position in its market?

A) Brendon incorporates customer feedback from market research and competitive feedback from closely monitoring the organization's competition.
B) Brendon coordinates the recruitment,training,and development of personnel for all aspects of the organization.
C) Brendon certifies the accuracy of the company's financial statements.
D) Brendon maintains the technology backbone of the organization-data transfer and security,e-mail communications,internal and external websites,and so on.

Question 48

Which of the following serves as a support line function to key functional areas in an organization's value chain?

A) Advertising
B) Manufacturing
C) Human resources management
D) Distribution

Question 49

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,training,and development 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 primary activities.

Question 50

_____ 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 51

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 52

According to the value chain of an organization,which of the following is a line function of an organization?

A) Operations
B) Supply chain management
C) Distribution
D) Product research and development

Question 53

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 54

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 55

An organizational culture:

A) represents the sum of all the policies and procedures from each of the functional departments in the organization.
B) represents the process of transformation in every organization.
C) refers to the ideology that promotes diversity in different institutions.
D) refers to the characteristic of publicly committing to the highest professional standards and sticking to that commitment.

Question 56

According to the value chain of an organization,which of the following is a support activity?

A) Operations
B) General administration
C) Distribution
D) Supply chain management

Question 57

_____ refers to the actions placed within a strictly moral context instead of basing actions on the needs of the particular situation.

A) Moral obligation theory
B) Virtue ethics
C) Freudian theory
D) Universal ethics

Question 58

A(n)_____ is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service.

A) value chain
B) code of ethics
C) organizational culture
D) strategic CSR

Question 59

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

A) Human resources management
B) General administration
C) Supply chain management
D) Systems development

Question 60

ExoticCrafts Inc.,a handicraft manufacturing company,has an established marketing department.Which of the following functions is the marketing department most likely to carry out?

A) Managing individual hardware and software needs that are specific to the organization and its line of business.
B) Ensuring that the products reach the hands of a satisfied customer.
C) Coordinating the recruitment,training,and development of personnel for all aspects of the organization.
D) Certifying the accuracy of the company's financial statements.

Question 61

Which of the following is a human resource 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 62

Walter's Inc.,a cement manufacturing firm,fails to meet the client deadline for delivering 500 kg of cement to QuickContruct Inc.The officer responsible for distribution and sale at Walter Inc.bribes the officer in charge of receiving the consignment 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

Question 63

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 64

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 65

A situation where one relationship or obligation places the individual or firm in direct dispute with an existing relationship or obligation defines a _____.

A) disconfirmed expectancy
B) conflict of interest
C) ethical ambiguity
D) ethical dilemma

Question 66

_____ can be defined as the values,beliefs,and norms shared by all the employees of that organization.

Question 67

Which of the following statements is true of the financial functions of an organization?

A) The finance function of an organization can be divided into two distinct areas: primary activities and support activities.
B) The auditing function involves receiving money from customers and using that money to pay employees,suppliers,and all other creditors (taxes and the like),with hopefully enough left over to create a profit that can be either reinvested back into the business or paid out to owners/shareholders.
C) The financial transactions function offers certification of an organization's financial statements,or "books," as being accurate by an impartial third-party professional.
D) The accounting function keeps track of all those financial transactions by documenting the money coming in and money going out and balancing the accounts at the end of the period.

Question 68

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 69

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 70

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 resource

Question 71

The _____ keeps track of company 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 72

Which of the following arguments made by the advocates of ethical business conduct about the human resource department is true?

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

Question 73

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

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

Question 74

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 75

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

A) Nonprofit organizations do not face problems with unethical behavior.
B) Profit is the main reason behind bending the rules regularly in the workplace.
C) The pursuit of profit in any circumstance is unethical.
D) Misreporting of actual time worked is not classified as misconduct by employees.

Question 76

Which department in an organization is in charge of the orientation of the newly hired employees?

A) Finance
B) Human resources
C) Information systems
D) Marketing

Question 77

Amanda heads the human resource 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 incorporating of customer feedback and competitive feedback.

Question 78

Ideally,the human resource 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 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 R&D Association
B) HR Professionals of America
C) American Marketing Association
D) Marketers' Ethics Resource Center

Question 80

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.This is an example of _____.

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