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Chapter 10
Making It Stick: Doing What's Right in a Competitive Market
True / False Questions
1. Demanding customers who want new and better products and services at lower prices
represent a typical market.
2. Impatient stockholders wanting the stock price to rise each and every quarter are
representative of most markets.
3. Typical markets represent federal, state, and local officials who simplify and reduce rules
and regulations, thus discouraging firms from hiring more people and paying more taxes.
4. Sustainable ethics in a culture are those that persist within the operational policies of the
organization long after the latest public scandal or the latest management buzzword.
5. A company's commitment to ethical behavior impacts only the lower level of management
and those departments that deal directly with customers.
6. In order to make ethical behavior sustainable, an organization requires commitment
solely from the top management.
7. Hiring an ethics officer is the first stage in the process of making ethical behavior
sustainable.
8. Supporting the code of ethics with extensive training for every member of the
organization is the first stage in making ethical behavior sustainable for an organization.
9. Celebrating and rewarding the ethical behavior demonstrated by an organization's
employees is the last stage in making ethical behavior sustainable for an organization.
10. In an organization, the commitment to ethical behavior must be documented in a code of
ethics, so that everyone begins from the same starting point.
11. A well-written code of ethics can capture what an organization understands ethical
behavior to mean.
12. The audience for the code of ethics of an organization includes only its employees.
13. A well-written code of ethics can establish a detailed guide to acceptable behavior.
14. There is no perfect model for a code of ethics.
15. According to the Institute of Business Ethics, an organization should create an original
model and not pick a well-tested model while creating a code of ethics.
16. The Institute of Business Ethics suggests that an organization should get an endorsement
from the chairperson and the board while creating a code of ethics from scratch.
17. A code of ethics is a guide that covers every possible event for employees.
18. The real test of any company's ethics policy comes when one of its employees is
presented with a potentially unethical situation.
19. Employees and stakeholders of a company are required to follow their company's code of
ethics strictly.
20. It is important to establish an extensive training program to support the published code of
ethics of a company.
21. Since the code of ethics cannot capture every possible example, each department of an
organization should apply the code to examples that arise in its area.
22. The role of an ethics officer is to enforce the code of ethics and provide support to any
employees who witness unethical behavior.
23. The chief responsibility of an ethics officer is to assess an organization's corporate image
amongst its competitors.
24. Employees in all job functions need to be familiar with the company's code of ethics.
25. Every company's ethics policy should state that awarding prizes to employees for good
ethical behavior should be avoided.
26. A company should avoid communicating its ethics policy to external stakeholders.
27. The continued growth of technology will present new situations for ethical dilemmas, thus,
a company's code of ethics needs to be rewritten on a regular basis.
28. Smaller companies need to include their code of ethics as part of any strategic planning
exercise to make sure it is as up to date as possible.
29. A transparent organization tends to avoid open and honest communication with all its
stakeholders.
30. Reactive ethical policies of a company are the policies that result when it develops a
clear sense of what it stands for as an ethical organization.
31. Proactive ethical policies of an organization are the policies that result when it is driven
by events and/or a fear of future events.
32. True ethical policies are proactive, and occur when a company develops a clear sense of
what it stands for as an ethical organization.
33. A carefully "wordsmithed" document and carefully positioned press releases suggest that
an organization is strictly following the policy of transparency.
34. When an individual is looking to manage the reputation and policies of an organization,
the commitment to doing the right thing becomes more about following the written ethics policy
than about any sense of organizational integrity.
35. Organizational integrity is a characteristic of publicly committing to the highest
professional standards and sticking to that commitment.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 10-04 Discuss the challenges of a commitment to organizational integrity.
Multiple Choice Questions
36. _____ is ethical behavior that persists long after the latest public scandal or the latest
management buzzword.
37. A company's commitment to ethical behavior affects:
38. Which of the following statements is true of sustainable ethics?
39. Which of the following is the first stage in making ethical behavior sustainable for a
company?
40. HP Chase Inc., an investment banking firm, has decided to make ethical behavior
sustainable in its organization. It has set up the process of monitoring ethical behavior by
establishing a code of ethics. Which of the following stages is HP Chase Inc. most likely to
undertake next?
41. Altra Partners (AP) believes in maintaining sustainable ethics. It has recently established
a code of ethics and organized comprehensive training sessions for all its members. Which of the
following steps is most likely to be undertaken next by AP?
42. Which of the following steps is the immediate next stage in making ethical behavior
sustainable for a company after it hires an ethics officer?
43. Downerz Enterprises (DE) has been in the news for fraud by one its directors. As a result,
the trustees of DE have appointed a new director who has established a strict code of ethics. He
has announced extensive training for every member of the organization. An ethics officer has also
been hired by DE. Which of the following steps is most likely to be taken next by the new director
to maintain ethical behavior in the organization?
44. Which of the following is most likely to be the next stage in making ethical behavior
sustainable for an organization after it promotes its commitment to ethical behavior?
45. Walter Warburg & Co., a new investment banking firm, has dismissed the idea of
establishing a code of ethics for its employees. Which of the following consequences is most
likely to take place as a result of this decision?
46. A well-written code of ethics:
47. Which of the following elements is most likely be included by an organization in its code
of ethics?
48. The audience for the code of ethics of an organization should include the:
49. Which of the following statements is true of the code of ethics of an organization?
