63) At the ________ level of moral development, ethical decisions rely on maintaining expected
standards and living up to the expectations of others.
A) preconventional
B) conventional
C) principled
D) post-conventional
64) In which one of the following stages of moral development do individuals live up to what is
expected by people close to them and maintain order by fulfilling obligations to which they have
agreed?
A) conscientious stage
B) conventional stage
C) principled stage
D) preconventional stage
65) ________ represent basic convictions about what is right and wrong.
A) Dogmas
B) Values
C) Principles
D) Beliefs
66) The phrase “My word is my bond” is likely to be spoken by someone at the ________ stage
of moral development.
A) pre-conventional
B) conventional
C) post-conventional
D) principled
67) At the ________ level of moral development, individuals define moral values apart from the
authority of the groups to which they belong or society in general.
A) preconventional
B) conventional
C) principled
D) unconventional
68) Pharmacists who decline to dispense drugs that cause abortions are functioning at the
________ stage of moral development.
A) preconventional
B) conventional
C) principled
D) unconventional
69) In which of the following stages of moral development do individuals value rights of others
and uphold absolute values and rights regardless of the majority’s opinion?
A) preconventional stage
B) conventional stage
C) principled stage
D) unconventional stage
70) John is offered an attractive incentive to steal sensitive information about his company’s
wealthy investment customers. Which one of the following statements best reflects John’s
thoughts if he is at the preconventional level of moral development?
A) If I do go through with the act, I will be letting down my manager and coworkers badly.
B) My job is to protect the information that this company deals in and I should not violate my
duties.
C) I am liable to be criminally prosecuted for my involvement in stealing the information.
D) Going through with this act would be highly unfair not just to the client, but also to my
employers.
71) John is offered an attractive incentive to steal sensitive information about his company’s
wealthy investment customers. Which of the following statements best reflects John’s thoughts if
he is at the principled level of moral development?
A) My job is to protect the information that this company deals in and I should not be violating
my duties.
B) By stealing from another person, I will be in violation of the moral standards I’ve come to
expect of myself.
C) If my involvement is detected, my friends and family would be humiliated by my actions.
D) If I am convicted for this crime, I will surely be imprisoned and will probably never be
employed anywhere else.
72) ________ measures the strength of a person’s convictions.
A) Moral development
B) Locus of control
C) Ego strength
D) Social desirability
73) Upper management is pushing hard to increase earnings per share. If Moe yields to this
pressure despite misgivings about the use of a non-certified material in the production of
climbing equipment, he will be demonstrating ________.
A) high ego strength
B) weak ego strength
C) internal locus of control
D) external locus of control
74) Despite reassurances from R&D’s internal testing lab, Stephen believes the new material for
climbing ropes should not be used in their manufacture until it has been certified by an
independent lab. It would appear that Stephen has ________.
A) high ego strength
B) weak ego strength
C) internal locus of control
D) external locus of control
75) ________ is the degree to which people believe they control their own fate.
A) Ego strength
B) Locus of control
C) Social responsibility
D) Social obligation
76) What can be said about a manager who believes that she can work hard and will meet the
productivity goals of her organization despite unfavorable conditions?
A) She has an external locus of control.
B) She has a high ego strength.
C) She has a weak ego strength.
D) She has an internal locus of control.
77) “It’s not my fault!” is a cry often heard from someone with ________.
A) an external locus of control
B) an internal locus of control
C) no locus of control
D) a weak locus of control
78) Which one of the following organizations is best suited to promote ethical behavior in its
employees?
A) An organization that has a reward and punishment system that depends on specific goal
outcomes.
B) An organization that has formal rules and regulations in place.
C) An organization that punishes employees who do not meet goals.
D) An organization that rewards success without asking how it was achieved.
79) Which one of the following is true concerning the impact of organizational culture on ethical
behavior?
A) An organization with low conflict tolerance encourages ethical behavior.
B) An organization with strong culture can encourage either ethical or unethical behavior.
C) An organizational culture that is high in conflict tolerance encourages unethical behavior.
D) An organizational culture that is high in control encourages unethical behavior.
80) A student who never considers breaking into an instructor’s office to steal an accounting
exam didn’t think twice about asking a friend who took the same course from the same instructor
last semester what questions were on the exam. What does this example illustrate?
A) This example illustrates the concept of issue intensity.
B) The student involved has an internal locus of control.
C) The student involved has a strong ego strength.
D) This example illustrates the concept of value-based management.
81) A cartoon showing black smoke from a smokestack and the caption “We’re okay as long as
the wind keeps blowing” illustrates which factor of issue intensity?
A) consensus of wrong
B) greatness of harm
C) probability of harm
D) proximity to victims
82) The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________.
A) make any cash payment for deferential treatment in a foreign transaction
B) make any payment over 5 percent of total cost toward administrative overhead in foreign
transactions
C) knowingly corrupt a foreign official
D) knowingly pay a foreign clerical or administrative employee in exchange for service
83) ________ is a document created by the United Nations outlining principles for doing
business globally in the areas of human rights, labor, the environment, and anticorruption.
A) The Global Reporting Initiative
B) The Global Compact
C) The Global Convention
D) The Global Ethics
84) Freedom of association and the effective recognition of the right to collective bargaining are
the Global Compact principles in the area of ________.
A) anti-corruption
B) human rights
C) labor standards
D) union representation
85) The idea that businesses should eliminate discrimination with respect to employment and
occupation is a Global Compact principle in the area of ________.
A) anticorruption
B) human rights
C) environment
D) labor standards
86) The centerpiece of the ________ efforts is the Anti-Bribery Convention that was the first
global instrument to combat corruption in cross-border business deals.
A) Organization for Economic Co-operation and Development’s
B) Institute of Global Ethics’
C) Ethics and Compliance Officer Association’s
D) United Nations’
87) In the preconventional stage of moral development, individuals make a clear effort to define
moral principles apart from the authority of the groups to which they belong or of society in
general.
88) At the conventional level of moral development, ethical decisions rely on maintaining
expected standards and living up to the expectations of others.
89) At the principled level of moral development, an individual values the rights of others and
upholds absolute values and rights regardless of the majority’s opinion.
90) The term “values” refers to basic convictions about what is right and wrong behavior.
91) People with an internal locus of control believe that what happens to them is due to luck or
chance.
92) An organization’s structural design, its goals, performance appraisal systems, and reward
allocation procedures influence the ethical choices of employees.
93) When employees are evaluated only on outcomes, they may be pressured to do whatever is
necessary to look good on the outcomes, and not be concerned with how they got those results.
94) The greater the probability that some action will cause harm, the greater the intensity of the
issue.
95) The Global Contract is a document created by the United Nations outlining principles for
doing business globally in the areas of human rights, labor, the environment, and anticorruption.
96) The Organization for Economic Co-Operation and Development developed a global trade
agreement.
97) Identify and describe the three levels and six stages of moral development.
98) Outline the two individual characteristics that play a role in determining whether a person
behaves ethically.
99) Write a short essay on the structural variables that can influence employees’ ethical behavior.
100) Discuss the importance of an organization’s culture as a factor that determines an
employee’s ethical behavior.
101) What is the UN Global Compact? What are the 10 principles outlined in it?
102) Which of the following options is most likely to have the greatest impact in encouraging
employees to behave ethically?
A) Select only ethical employees.
B) Provide a written code of ethics and decision rules.
C) Model ethical behavior beginning with the organization’s top leaders.
D) Implement a comprehensive ethical program.
103) How can managers identify the ethically questionable applicants even before they become
part of the workforce?
A) by performing background checks
B) by requiring letters of recommendation
C) by favoring candidates who come with a reference from existing employees
D) by including integrity testing in the selection process
104) Your university has tried to promote the establishment of shared values so that all members
will understand its beliefs. The university has established ________ management.
A) values-based
B) stakeholder-based
C) leadership-based
D) market-based
105) A ________ is a formal statement of an organization’s primary values and the ethical rules
it expects its employees to follow.
A) mission statement
B) values statement
C) code of ethics
D) vision statement
106) The primary debate about ethics training programs is whether ________.
A) ethics can be taught
B) ethics training is sufficient
C) the programs cause a regression in a person’s moral development
D) the programs decrease awareness of ethical issues in business
107) Marveline Company brought in help from outside to evaluate decisions and management
practices in relation to the organization’s code of ethics. These evaluations are called ________
audits.
A) social responsibility
B) social protective
C) independent social
D) independent ethics
108) The choice of what activities to reward and punish sends a strong signal to the employees
regarding their ethical decisions.
109) When a firm has a code of ethics in place, the role of managers in enforcing ethical
behavior is minimized.
110) Pressure to perform and meet goals has little impact on an employee’s decision to behave
ethically.
111) It is important that firms be concerned with both the ends and the means used to achieve
them.
112) In a short essay, discuss some of the ways in which managers can encourage ethical
behavior and create a comprehensive ethics program.
113) Employees who raise ethical concerns or issues in an organization are known as ________.
A) employee-volunteers
B) whistle-blowers
C) entrepreneurs
D) philanthropist
114) The ________ Act offers some legal protection to whistle-blowers. It has a provision
wherein any manager who retaliates against an employee for reporting violations faces a stiff
penalty of a 10-year jail sentence.
A) Sarbanes-Oxley
B) Glass-Steagall
C) Taft-Hartley
D) Landrum-Griffin
115) A ________ is an individual or organization who seeks out opportunities to improve society
by using practical, innovative, and sustainable approaches.
A) sustainability contractor
B) social entrepreneur
C) philanthropist
D) whistle-blower
116) Target’s donation of 5% of its annual income to community support is an example of
________.
A) social engineering
B) social screening
C) corporate responsiveness
D) corporate philanthropy
117) If Google asks 25 members of its executive team to spend a full day during their annual
team-building retreat building a house in Las Vegas with Habitat for Humanity, the executives
would be engaging in employee ________.
A) volunteering efforts
B) entrepreneuring efforts
C) whistle-blowing efforts
D) administering efforts
118) Managers may have difficulty in the future in getting employees to behave ethically
because teenagers readily accept unethical behavior.
119) To encourage employees to report ethical concerns, managers must make sure the reporting
employee knows the outcome of any investigation, including the punishment meted out to the
perpetrator.
120) Employees who raise ethical concerns or issues to others inside or outside the organization
are called social activists.
121) Under the Sarbanes-Oxley Act, whistle-blowers in the United States who report suspected
corporate violations of laws now have protection from reprisals and retaliation.
122) Who are whistle-blowers? What can managers do to protect them?