Question 1

To improve America's business ethics:

Accepted Answer

While passing an ethics bill and teaching ethics in business schools may help improve overall awareness and understanding of ethical behavior, the most effective way to improve a company's ethics is for its leaders to adopt and support a corporate code of ethics. This sets the tone for ethical behavior throughout the company and ensures that employees at all levels are held accountable for their actions. Investigating suppliers for ethical violations is also important, but it is not as effective as establishing ethical practices within the company itself.

Question 2

In the past, whistleblowers were known as persons with a universal moral calling. However, seldom did these individuals receive tangible rewards for their efforts. When it was all said and done, they often fell into hard times. Whistleblowers got a boost in 2010, with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A provision of this act permits whistleblowers to_____________________.

Accepted Answer

The Dodd-Frank Wall Street Reform and Consumer Protection Act permits whistleblowers to receive up to 30% of the penalty funds that exceed $1 million that the courts recover from companies proven to be in violation. This provision provides a tangible reward for whistleblowers and incentivizes individuals to come forward with information about wrongdoing. Option A is incorrect as the provision does not guarantee job security. Option C is incorrect as whistleblowers can report violations in any company, not just the one they are employed in. Option D is incorrect as there is no automatic reward of $1 million, and job retention is not guaranteed.

Question 3

Compliance-based ethics codes:

Accepted Answer

Compliance-based ethics codes focus on conforming to laws and regulations. While they may also emphasize responsible employee conduct and create a culture of doing things right, their primary objective is to ensure adherence to legal requirements.

Question 4

A whistleblower is a person who:

Accepted Answer

A whistleblower is someone who reports illegal or unethical behavior within a corporation or organization. They are typically employees who witness or have knowledge of misconduct and report it to authorities or the media. Monitoring employees who work overtime or reporting emergencies to 911 are not necessarily related to the definition of a whistleblower. Working in the human resource department does not automatically make someone a whistleblower, as it is not their main responsibility to report illegal or unethical behavior in the company.

Question 5

Which of the following statements is not one of the six steps recommended by experts for improving ethical behavior at work?

Accepted Answer

The other three options are steps recommended by experts for improving ethical behavior at work, but option D suggests keeping the corporate code of ethics private and not sharing it with outsiders. However, experts recommend making the code of ethics public and sharing it with all stakeholders, including customers, suppliers, and the public, to promote transparency and accountability.

Question 6

Which of the following would be a unique focus of an integrity-based ethics code?

Accepted Answer

Shared accountability among employees is a unique focus of an integrity-based ethics code, as it emphasizes the importance of collective responsibility in upholding ethical standards and preventing unethical behavior. This goes beyond merely increasing control or penalties or focusing solely on legal compliance. While improving awareness of relevant laws may be a component of an integrity-based ethics code, it is not necessarily the unique focus.

Question 7

Compliance-based ethics codes typically:

Accepted Answer

Compliance-based ethics codes rely on laws and regulations outside the firm for guidance, and set minimum standards of behavior for employees to follow in order to comply with legal requirements. This approach is primarily focused on avoiding legal violations and minimizing risk, rather than promoting ethical behavior as a positive value.

Question 8

Which of the following would most likely involve ethical concerns?

Accepted Answer

Overstating an expense report involves dishonesty and can be considered fraudulent behavior, which raises ethical concerns. The other options are more related to business decisions and do not necessarily involve moral or ethical considerations.

Question 9

The Hum-dinger Corporation recently instituted a corporate ethics code. The president of the company realizes that ethical relationships are based on:

Accepted Answer

Fairness and honesty are the foundation of ethical relationships. While penalties for illegal activities and monitoring compliance are important components of an ethics code, they are not the basis of ethical behavior. Similarly, while whistleblowers and watchdogs can help ensure ethical conduct, they should not be relied on as the sole means of maintaining an ethical corporate culture.

Question 10

After developing a code of ethics, it should be communicated to:

Accepted Answer

The answer of After developing a code of ethics, it...

Question 11

Following an ethics-based approach to decision making will normally lead to:

Accepted Answer

Following an ethics-based approach to decision making prioritizes treating employees fairly and with respect, which can lead to a positive work environment and lower turnover rates. It may not necessarily lead to higher profits or lower prices, and may even limit competition in some cases.

Question 12

A(n) ________-based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability among employees.

Accepted Answer

The answer of A(n) ________-based ethics code defines corporate values;...

Question 13

Establishing a formal code of ethics is:

Accepted Answer

Establishing a formal code of ethics is growing in popularity as organizations recognize the importance of ethical behavior in building trust with stakeholders and avoiding scandals. The other choices are incorrect: A is not true as larger businesses often have more resources to establish a code of ethics; B is not true as government regulation does not cover all ethical concerns and a code of ethics can provide more guidance; and D is not true as there is no single law mandating a code of ethics for businesses.

Question 14

A very critical last step in the process of establishing an ethics code is __________.

Accepted Answer

Enforcement is a critical last step in the process of establishing an ethics code. Without proper enforcement mechanisms in place, the code is merely symbolic and ineffective. It is important to ensure that violations of the code are identified and appropriate actions are taken. This could include disciplinary measures, corrective actions, and addressing any underlying issues that may have led to the violation.

Question 15

What is the benefit of employing an ethics officer?

Accepted Answer

Employing an ethics officer has the benefit of having someone whose job is dedicated to investigating ethics breaches in an objective manner. Employees can feel comfortable communicating confidentially with this professional, creating a safe and trustworthy environment for handling ethical dilemmas.

Question 16

A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.

Accepted Answer

A compliance-based ethics code focuses on adherence to laws and regulations and punishment for non-compliance. Legal and corporate responsibility-based ethics codes also focus on legal requirements and corporate social responsibility, respectively, but do not place as much emphasis on control and penalization of wrongdoers as compliance-based ethics codes. Integrity-based ethics codes prioritize ethics and values, and focus on building a culture of ethical behavior rather than punishment for unethical behavior.

Question 17

With respect to business ethics, it can be said that "it takes two to tango." This indicates that:

Accepted Answer

The phrase "it takes two to tango" suggests that an individual's behavior is influenced by the behavior of others. In the context of business ethics, this means that ethical behavior is not solely an individual responsibility, but also influenced by the ethical climate set by the organization and the behavior of colleagues and superiors. Therefore, it is important for organizations to promote a culture of ethical behavior and hold all individuals accountable for their actions.

Question 18

Which of the following terms describes someone who reports illegal or unethical behavior?

Accepted Answer

The term commonly used to describe someone who reports illegal or unethical behavior is a whistleblower. This person may report the behavior to authorities, an organization's management, or the general public. The term "horn blower" may be a derivative of the term whistleblower, but it is not commonly used. "Watch tower sentinel" and "integrity watchdog" may describe roles within an organization for monitoring and reporting behavior, but they are not as commonly used as the term whistleblower to describe an individual who reports illegal or unethical behavior.

Question 19

Which of the following is a characteristic of an effective ethics officer?

Accepted Answer

An effective ethics officer must have the capacity to serve as both a counselor and an investigator to handle ethical issues and violations. While being organized and having a background in human resource management may be helpful, they are not necessary characteristics for an effective ethics officer. Additionally, communication primarily via e-mail may not be the most effective approach for addressing complex ethical issues.

Question 20

Following an ethics-based approach to decision making will normally lead to higher:

Accepted Answer

Following an ethics-based approach to decision making promotes trust and cooperation, which can lead to better relationships with stakeholders such as customers, employees, and investors. This can ultimately lead to long-term success and profitability for the organization. Therefore, the best option is B, as it aligns with the benefits of ethical decision-making. Choices A, C, and D are not necessarily associated with ethics-based decision making.

Quiz 4: Demanding Ethical and Socially Responsible Behavior