What methods do businesses use to obtain minority-owned business status?
a. Hold ownerships with a silent minority partner
b. Relocate in order to have minority employees
c. Use a name that carries minority connotations
d. All of the above
What did Herman Miller gain through its environmental initiatives?
a. Extra costs
b. Solid reputation with regulators
c. Cost savings
d. b and c only
e. a and b only
f. All of the above
Who made the Intel error problem public?
a. Intel
b. A mathematician professor
c. IBM
d. None of the above
Which of the following is an effective tool for preventing industry level ethical lapses?
a. Self-regulatory activism
b. Ethics training
c. Screening
d. Internal controls
Which of the following would be considered a utilitarian?
a. Immanuel Kant
b. Robert Nozick
c. Jeremy Bentham
d. Adam Smith
At what level of ethical lapses is the use of PEDs by players?
a. Individual
b. Company/organization
c. Industry
d. Society
Fifty-nine auto dealers around the country were fined $200,000 by the Department of
Labor for child labor violations. The car dealers hire 16- and 17-year olds to move cars
from service bays to customer pick-up areas and from lots to show rooms. They are also
employed to wash cars. The teenagers move the cars literally only hundreds of feet in
the process, but they are driving the cars.
Under the Fair Labor Standards Act and the federal regulations, only those employees
who are age 18 or above are permitted to drive as part of job requirements. The fine for
a violation is $1,100.
The Department of Labor contacted dealerships and asked for the names of their
employees under the age of 18. Once the Department had the names, it contacted the
young employees to question them about their job duties. Upon discovery of the
driving, the dealerships were fined.
About one-half of the dealerships have paid the fines and the remainder are protesting.
The result has been that dealerships will now employ only those who are 18 and older
because it is impossible to have an employee responsible for washing cars and not be
able to move the car. The result has been that many special job programs for minority
students and students in vocational schools have been eliminated.
a. Do you think this type of driving was intended to be covered in the child labor
statutes?
b. Are auto dealers taking advantage of children or helping them?
Ronald Zarrella, the CEO of Bausch & Lomb in 2000, had to apologize for what?
a. The company not meeting its sales targets
b. Falsifying his credentials
c. The problems with ReNu contact lens solution
d. The MoistureLoc recall
What was the total figure for WorldCom’s earnings restatement?
a. $3 billion
b. $4.3 billion
c. $6.8 billion
d. $9 billion
Which of the following is not part of the Wall Street Journal model?
a. Compliance
b. Consequences
c. Justice
d. All of the above are part of the model
Frank Hoffman is the CEO of Triple Plus, Inc., a group of four successful restaurants in
the Southwest. One member of the Triple Plus board of directors, Sam Wasson, has a
daughter, Chelsea Wasson, who has just started Chelsea’s Cloths, a business that
supplies restaurant linens. Wasson has approached Hoffman to explain Chelsea’s
business. Chelsea’s Cloths has adopted an environmental emphasis in its operations as a
way of countering the industry trend toward the use of paper products in restaurants.
Sam Wasson initially recruited Hoffman as CEO, was instrumental in having the board
select Hoffman, and is one of Hoffman’s strong backers. Wasson supported Hoffman
when other board members were impatient with his new procedures, policies, and
changes.
Ordinarily, when someone approaches Frank Hoffman with information on a new
supplier, he takes the information and refers it to the purchasing/supply area or refers
the person directly to the manager of purchasing. In this case, Frank personally
presented the information to Triple’s purchasing manager, Deidre Hall. Frank offered
Deidre the Chelsea’s Cloths brochure and card and explained, “She is Sam Wasson’s
daughter. She just graduated in marketing from State University last June and now has
her own firm. See what you can do. Our contract with Lila’s Linens is up for renewal.
Maybe we can do something.”
Deidre evaluated Chelsea’s and Lila’s proposals as well as that of an additional firm in
making the purchasing decision. Although the pricing between Chelsea’s and Lila’s is
equivalent, Chelsea’s is too young a firm to have a track record, and Deidre is not
convinced that Chelsea’s can handle Triple’s large account. Given Mr. Hoffman’s
interest, however, Deidre is confused about what recommendation to make.
a. Should Deidre recommend Chelsea’s firm or offer her true recommendation?
b. Would it be ethical for Hoffman to change Deidre’s decision?
c. What if Wasson had requested bid information so that his daughter could be
competitive? Should Deidre supply it? Should Hoffman direct Deidre to supply it?
d. Can you solve the conflict without offending the director?
e. Does Hoffman need to be concerned about how his intervention would reflect the
“tone at the top”? Could employees misinterpret his actions?
Why was Julie Roehm fired by Walmart?
a. For accepting perks from Walmart’s ad agencies
b. For having an affair
c. For running risqu ads
d. None of the above
Why is Transparency International’s Corruption Perception Index important for
economic systems?
a. Because it shows economic systems function perfectly well without any attention to
ethical issues
b. Because it shows that bribery and corruption are a necessary part of economic growth
c. Because it shows that economic growth increases at the same pace as political
corruption
d. Because it shows that economic growth requires a level playing system for all
risk-takers
What was Jeffrey Skilling’s opinion of Bethany McLean?
a. That she was unethical
b. That she was a smart and skilled reporter
c. That she did not understand Enron or its business
d. Both a and c
Who believes that putting shareholders first is the wrong approach to corporate
governance?
a. R. Edward Freeman
b. Milton Friedman
c. Marjorie Kelly
d. Robert Halfon
Who of the following people from Enron are still living as of 2010?
a. Ken Lay
b. Cliff Baxter
c. Lea Fastow
d. All of the above
The Kodak employee had an arrangement with:
a. An appraiser.
b. An assessor.
c. Both a and b
d. None of the above
Priscilla Ceballos’s 6-year-old daughter is a fan of Hannah Montana and wanted to go to
a Hannah Montana concert. A radio station was offering two tickets to the Hannah
Montana concert for the child who wrote the winning essay. Ms. Ceballos and her
daughter wrote an essay that detailed an account of their husband/father dying in the
war on Iraq. The problem was that their husband/father was not in Iraq and certainly not
dead. When the fake essay was uncovered, Ms. Ceballos said, “We did the essay, and
that’s what we did to win. . . We did whatever we could to win.” The company revoked
the prize and the award of the tickets.
Suppose the contest rules did not spell out that the essay had to be based on true and
verifiable facts. What could the radio station rely on in revoking the prize and still have
public support for its decision?
a. The Blanchard/Peale test for ethical dilemmas
b. Normative standards
c. Stakeholder analysis
d. None of the above
What ethics code provision did the board waive for Andrew Fastow?
a. Additional bonus payments beyond other officers
b. Payment from an entity that Enron does business with
c. Gifts from vendors
d. All of the above
A professor for one of your courses has assigned reading materials from various
publications. He tells you that the materials are on reserve and that each student should
go and copy the materials individually. He notes that for him to copy the materials for
students and then sell them or distribute them would be a violation of copyright law.
The professor’s conduct:
a. Is unethical and violates copyright law as well.
b. Is something everyone does and is accepted behavior.
c. Does not really harm anyone.
d. Is acceptable in an academic setting.
Why was Jack-in-the-Box cooking at a different temperature from other fast food
chains?
a. Jack-in-the-Box had higher safety standards
b. Cost
c. Jack-in-the-Box lost the memo
d. Both a and b
e. Both b and c
f. a, b, and c
Who said, “All businesses, forewarned, should be proactive, not reactive. They must be
prepared to fight fire with fire and, if necessary, should be prepared to take their case all
the way to the court”?
a. R. Edward Freeman
b. Milton Friedman
c. Michael Novak
d. Robert Halfon
What level of the federal court system did the Kearns case reach?
a. Federal district court
b. U.S. Court of Appeals
c. U.S. Supreme Court
d. The case never went to court; it was settled
In 1991, James McElveen fell 30 feet from a waterfall and broke his back. He was
employed by a small business and had no medical insurance. His lifetime friend, Benny
Milligan, was with him when the fall occurred. Benny took James to the emergency
room. Moved by his friend’s severe injuries and pain and suffering and realizing that
James did not have insurance, Benny switched IDs with James in the hospital
emergency room. James required surgery to fuse his back to avoid what doctors said
would have been certain paralysis. The cost of the surgery and hospitalization was
$41,107.45. Neither James, employed as a mechanic, nor Benny, employed as a painter,
could have paid for the surgery and follow-up care. Benny’s employer’s insurance paid
for the surgery because the hospital took the information from Benny’s ID found in
James’ pockets.
While Benny was contemplating telling his employer, someone notified the insurance
company of the switch. Benny, James, and Benny’s wife, Tammy Milligan, were
charged and convicted of mail fraud, wire fraud and conspiracy. Tammy, because of the
Milligans’ three young daughters, is serving her sentence through home confinement,
Benny is serving 9 months and James is serving 7 months. All three will serve three
years on probation and pay restitution.
Benny states, “I know what I did was wrong. But I look back on it, and I feel that I had
to do it at the time. I don’t feel like I’m a criminal in the sense of rapers, muggers and
murderers.” Benny said he did not understand that a hospital has an obligation to treat
someone who is dying. Friends testified that as they were racing James to the hospital
they told Benny that hospitals in the area had routinely refused to provide medical
treatment.
Benny said he wanted to tell his employer, but he was afraid he would be fired and then
be stuck with the bill. Tammy adds that the government is right to demand restitution
but wrong to imprison them. James asked the judge if he could go to prison for all three
of them, “I would be lost without my friendship with Benny. I probably would be dead.”
a. Benny and James committed an illegal act. Was it unethical?
b. What punishment is appropriate in the case?
c. If you were Benny’s employer, what would you have done?
Nike is changing its interaction with international suppliers by:
a. Ceasing to outsource its production.
b. Using third parties to negotiate labor contracts so that it can distance itself from
issues.
c. Not having sudden design changes that can affect plant working hours and
conditions.
d. Forming coalitions with other retail clothing manufacturers.
What were the effects of the Piper High School cheating issues on Piper?
a. No effects. That’s why the parents wanted the teacher’s decision reversed.
b. There was an increase in property values.
c. Colleges raised questions about Piper students.
d. Both b and c
What value did Ford put on human life in its analysis of its Pinto issue?
a. $2 million
b. $1 million
c. $200,000
d. $100,000
With reference to #32 above, what happened to the Sadhu?
a. He died
b. The parties carried him back down to the village for medical care
c. He hiked with Stephen
d. He finished his pilgrimage on his own
e. None of the above
How many positive letters of recommendation did Gadams receive from administrators
at the schools?
a. Three
b. Two
c. Four
d. None of the above
The HealthSouth “Pristine Audit” focused on:
a. The accuracy of the revenue numbers.
b. The patient billing and coding.
c. Facility conditions and quality control.
d. None of the above
What is the percentage of female partners in all accounting firms today?
a. 10%
b. 18%
c. 44%
d. 47%
Other forms of slotting fees include:
a. Key money.
b. Negative allowances.
c. Kickbacks.
d. Both a and b
e. All of the above
Andrew Fastow is an example of which category of moral development?
a. Amoral technician
b. Moral sycophant
c. Inherently moral
d. Moral chameleon
Fast-and-easy mortgage loans were largely undocumented loans.
If I discovered that I unintentionally violated a federal environmental regulation, I
should just wait and see if anything happens before taking any action.
The failure to disclose that your college degree was withheld because of outstanding
parking fines and violations is unethical.
Equal treatment and opportunity is generally a part of labor policies and principles.
You work for a school district as a facilities coordinator. You drive to the various
schools in the district and supervise construction and remodeling and assess various
building needs. When you are traveling around to the various schools, you use a district
vehicle that is clearly marked as such. One day you stop at the country club and have
lunch before heading to the next school since the country club is on the way. You also
stop at the bank drive-thru teller to do some personal banking business. Both the lunch
and the bank stop are ethical breaches.
The failure to provide safe packaging is a product liability issue.
Althea Caldwell is the director of Arizona’s Department of Health Services (DHS).
DHS is charged the administration of the state’s behavioral health system and is
responsible for contracting with private providers for millions of dollars of mental
health care each year for eligible patients.
Ms. Caldwell accepted a $20,000 per year director position for a hospital group
corporation. One of the hospitals in the group was one to which state contracts for
mental health treatment had been awarded.
One month after accepting the position, Ms. Caldwell asked the state’s attorney general
for an opinion as to whether she had a conflict of interest.
Does Ms. Caldwell have a conflict of interest?
Albert Carr believes that bluffing in business is justified because it is understood as part
of the game of business.
Product dumping does not present ethical problems in those countries without product
liability recovery systems.
If you are fired from your job, you can use any information you gained while employed
to help your next employer.
A state employee who is making a decision on the medical insurer for the state must
disqualify herself if her spouse works for the insurer.
Releasing a product with known safety problems for sale to the public is an ethical
breach.
Increasing isolation is a part of leadership but does not affect ethical choices.
Discuss why Pepsi turned over the materials a Coke employee had tried to sell to it and
then cooperated with the FBI in catching the employee and her co-horts?
Your company’s policy on company vehicles is that no family members may use them
or ride in them. It would be unethical to use a company car to drive you and your
spouse to a movie.