Question 1

In the context of corporate ethics programs, which of the following is a function of ethics committees?

Accepted Answer

Ethics committees are responsible for developing policies related to ethical behavior, evaluating actions that may be unethical, and investigating any violations or complaints related to ethics within the organization. They play a crucial role in promoting a culture of ethical behavior within the organization.

Question 2

In the context of business ethics, which of the following statements regarding ethics codes is true?

Accepted Answer

The statement that the statements provided by public companies regarding their code of ethics, as required by the Sarbanes-Oxley Act, are often just for show is true. While the act requires public companies to disclose their code of ethics, there is no requirement for them to enforce it. As a result, some companies may create a code of ethics merely for public relations purposes, without taking any serious steps to ensure that it is followed. The other statements are either incorrect (A, C, and D) or irrelevant (E) to the topic of ethics codes in business.

Question 3

The _____ Act established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence.

Accepted Answer

The Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act of 2002, was passed in response to several high-profile corporate scandals such as Enron and Worldcom. It established strict accounting and reporting rules for public companies and their auditors to make senior managers more accountable and to maintain investor confidence.

Question 4

Chang prefers gymnastics to music. However, he agrees to attend music lessons because his parents want him to become a musician. According to Kohlberg's model of cognitive moral development, Chang resides in the _____ stage.

Accepted Answer

Chang's decision to attend music lessons despite his personal preference for gymnastics indicates that he is operating at the conventional stage of Kohlberg's model of cognitive moral development. At this stage, individuals prioritize pleasing significant others and following societal norms over personal choices and desires. Chang is following the wishes of his parents, who hold significant authority in his life, rather than making his own autonomous decisions based on his own values and desires. This is a characteristic of the conventional stage.

Question 5

Jade, a scientist working in the research department of Corals Cosmetics, is asked to not report the ill-effects of using a new product that Corals has decided to launch. Jade's boss offers a hike and a permanent job in exchange for skipping a few details in the report. Jade refuses to do this and asks him to withhold the product from entering the market. According to Kohlberg's model of cognitive moral development, Jade resides in the _____ stage.

Accepted Answer

Jade's decision to refuse the offer and insist on ethical reporting aligns with the principled stage, where moral reasoning is based on abstract reasoning using universal ethical principles.

Question 6

The primary focus of compliance-based ethics programs is on

Accepted Answer

The primary focus of compliance-based ethics programs is to ensure that laws and regulations are being followed through detecting and punishing legal violations. While creating awareness and increasing individual ethical responsibility may be components of these programs, the primary focus is on compliance with laws and regulations. Providing tools to make ethical decisions is more commonly associated with values-based ethics programs. Training employees on financially viable methods is not directly related to ethics programs.

Question 7

Amelie conforms to the norms established by her church and ensures that her behavior always meets the expectations set forth by her parents and the church. According to Kohlberg's model of cognitive moral development, she resides in the _____ stage.

Accepted Answer

In Kohlberg's model of cognitive moral development, the conventional stage is characterized by conforming to social norms and expectations set forth by authority figures such as parents or religious leaders. Amelie's behavior aligns with this stage as she conforms to the norms established by her church and parents.

Question 8

A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been specifically taken to

Accepted Answer

The company's actions indicate a desire to create an ethical climate or culture within the organization. The regular classes in moral philosophy and protection of whistleblowers suggest that the company values ethical behavior and is committed to fostering a culture of integrity. The other options do not accurately reflect the company's intentions or actions.

Question 9

In the context of business ethics, which of the following is true of an ethical leader?

Accepted Answer

An ethical leader is someone who has a strong personal character and leads by example, making sure that the organization follows ethical principles. While they should also be a moral manager, they cannot solely focus on this aspect and must actively lead by example. An ethical leader should not take credit for the accomplishments of subordinates, and must place the common good of the organization above their own personal interests. Ethics cannot be managed by benign neglect, and thus an ethical leader must actively work towards promoting ethical behavior within the organization.

Question 10

Which of the following is true of unethical corporate behavior?

Accepted Answer

Unethical corporate behavior reveals a company culture that is ethically lax. The behavior of individuals is influenced by the organizational culture and the policies adopted by the company. When unethical behavior is prevalent within a company, it suggests that the company's ethical culture is not strong enough to promote ethical behavior within the workplace.

Question 11

Alia, a graphic artist at an advertising firm, realizes that the head designer, Ryan, has been copying designs from the Internet and passing them off as his own. Alia informs the marketing head about this, which leads to Ryan getting fired. However, after this event, Alia is ostracized by her co-workers. This indicates that the organization has a poor

Accepted Answer

The fact that Alia's actions in reporting Ryan's unethical behavior resulted in her being ostracized by her coworkers indicates a poor ethical climate within the organization. The co-workers seem to prefer to protect Ryan's unethical behavior over supporting the right thing.

Question 12

_____ ethics programs are designed by corporate counsel to prevent legal violations.

Accepted Answer

Compliance-based ethics programs are designed to ensure that companies and their employees comply with laws and regulations to prevent legal violations. The main focus of these programs is on enforcement and punishment for non-compliance.

Question 13

To avoid fines and criminal prosecution, it is a common perception that business leaders use

Accepted Answer

The answer of To avoid fines and criminal prosecution, it...

Question 14

Nate, a teenager, helps his grandmother by bringing in her weekly supplies and taking out the garbage, only if he receives a weekly allowance from his parents. According to Kohlberg's model of cognitive development, he resides in the _____ stage.

Accepted Answer

Nate's behavior of helping his grandmother is motivated by a reward, which shows that he is in the preconventional stage of moral development according to Kohlberg's model. In this stage, individuals make decisions based on what is rewarded or punished, and their actions are guided by self-interest.

Question 15

The _____ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

Accepted Answer

Ethical climate refers to the prevailing principles, values, and standards that guide behavior in an organization. It reflects the moral atmosphere of the organization and influences decision-making processes. It helps employees determine what is right and wrong in various situations and guides their behavior accordingly. The ethical climate of an organization is shaped by factors such as leadership, organizational culture, policies and procedures, and the behavior of employees at all levels.

Question 16

CEO pay packages, wages, antibrand attitudes, and religion at work are some of the _____ that challenge American managers and employees today.

Accepted Answer

These issues deal with ethical considerations and decision making, which are important aspects of managing and working in a company. Personal issues, market issues, cognitive conflicts, and business malpractices can also be challenging, but do not necessarily involve ethical dilemmas in the same way.

Question 17

An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called an) _________ ethics program.

Accepted Answer

An integrity-based ethics program focuses on developing a culture of ethical decision-making, in which employees are encouraged to take personal responsibility for behaving ethically. It aims to promote the values and principles of the organization and to foster ethical behavior as an end in itself, rather than simply a means to avoid legal liability or negative public image. Compliance-based programs, on the other hand, are more focused on rules and procedures designed to ensure compliance with legal and regulatory requirements, while rule-based programs rely on specific ethical rules to guide behavior. Law-based and conformity-based programs are not typically used to describe ethics programs.

Question 18

Which of the following may prevent the creation of a business climate conducive to unethical behavior?

Accepted Answer

Taking an ethical stand that may impose financial costs demonstrates a commitment to ethics over profit, which can prevent unethical behavior.

Question 19

The ________ was passed by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

Accepted Answer

The Sarbanes-Oxley Act (also known as the Public Company Accounting Reform and Investor Protection Act) was passed by Congress in 2002 after the Enron scandal. The act established strict accounting and reporting rules for public companies, aimed at making senior managers more accountable and improving investor confidence.

Question 20

Which of the following is true of compliance-based corporate ethics programs?

Accepted Answer

Compliance-based corporate ethics programs focus on increasing surveillance and controls on people, and imposing punishments on wrongdoers to avoid legal consequences. While they may go beyond mere avoidance of illegality, their primary purpose is to ensure legal compliance. They do not necessarily instill personal responsibility or provide guiding principles for self-governance.

Quiz 4: Ethics and Corporate Responsibility