A stakeholder is someone with a share or interest in a business enterprise.
Answer:
The Global Code of Conduct is a general standard of business practice that can be
applied only to undeveloped countries in accordance with their local customs and social
norms.
Answer:
Business ethics should be applied as a separate set of moral standards or ethical
concepts from general ethics.
Answer:
For the R&D team, the real ethical dilemmas come when decisions are made about
product quality.
Answer:
The board of directors can secure its independence by permitting one individual to
function as both, the chief executive officer of a company and the chairperson of its
board.
Answer:
Which of the following statements isTRUE of ethical challenges in organizations?
A. Nonprofit organizations do not face problems with unethical behavior.
B. Profit is the main reason behind bending the rules regularly in the workplace.
C. The pursuit of profit in any circumstance is unethical.
D. Misreporting of actual time worked is not classified as misconduct by employees.
Answer:
The King II report emphasized the need for companies to adopt an exclusive approach
to corporate governance instead of an inclusive one.
Answer:
The “comply or explain” methodology refers to the set of guidelines that requires
companies to abide by a set of operating standards or face stiff financial penalties.
Answer:
Do unto others as you would have them do unto you is the Golden Rule.
Answer:
The code of ethics adapted by the American Marketing Association speaks about
improving “customer confidence in the integrity of the marketing exchange system.”
Answer:
Given that R&D teams do not interact directly with customers, the potential for ethical
dilemmas is nonexistent.
Answer:
The UN Global Compact deals exclusively with two key areas of concern: fair pricing
and customer satisfaction.
Answer:
Which of the following statements isTRUE of a company’s value chain?
A. Marketing, sales, and customer service are the support activities.
B. The research and development department coordinates the recruitment, training, and
development of personnel for all aspects of the organization.
C. The marketing department sources the components and builds the product.
D. Supply chain management and operations are primary activities.
Answer:
The Volcker Rule proposed that there should be a key restriction in the legislation to
limit the ability of banks to trade on their own accounts.
Answer:
Ethical behavior should be the same both inside and outside a business situation.
Answer:
In the guidelines he set down for organizations doing business in other countries,
Richard DeGeorge failed to emphasize the importance of working with the local
culture.
Answer:
If an individual reports a companythat he or she is not employed byfor misconduct, the
individual is called an external whistle-blower.
Answer:
A set of personal principles formalized into a code of behavior refers to a value system.
Answer:
Which of the following isTRUE of morals and values?
A. The terms morals and values define a society, and not an individual.
B. The term morals is used to refer to an individual while the term values is used in the
context of a society.
C. The terms morals and values are often used to mean the same thing.
D. Values refer to religious judgments while morals refer to coded behavior.
Answer:
Independent or outside directors are not eligible to be a part of the compensation
committee.
Answer:
An organization’s code of ethics has no relevance to its employees.
Answer:
In the third stage of Kohlberg’s stages of ethical reasoning, a person is focused on
meeting the expectations of friends and coworkers and how something will affect their
life.
Answer:
The UN Global Compact actively polices the behavior of multinational corporations.
Answer:
The human resource function within an organization should ideally be directly involved
in the maintenance of the technology in the organization.
Answer:
The guidelines set down by Richard DeGeorge for organizations doing business in other
countries was criticized because it only dealt with the issues of bribery, false
advertising, and the use of sweatshops in the production process.
Answer:
The final step in solving an ethical dilemma is to make a decision.
Answer:
Stakeholders include stockholders, employees, and the federal government.
Answer:
Qui tam lawsuits are illegal under the False Claims Act.
Answer:
The standard of corporate governance is the extent to which the officers of an
organization are fulfilling the duties and responsibilities of their offices to the relevant
stakeholders.
Answer:
The first step in resolving an ethical dilemma is to analyze the actions.
Answer:
The Credit Rating Agency and New York Stock Exchange are the only bodies
authorized to enforce the Foreign Corrupt Practices Act.
Answer:
The False Claims Act was amended in 1986 to make the penalization for
whistle-blowers stiffer.
Answer:
Telecommuting allows employees a certain degree of flexibility in terms of their work
hours.
Answer:
Due to aggressive competition, Amanda feels pressured to copy an assignment from a
friend and the Internet to get good grades. She feels the professor would not be able to
figure out what she did. With this ethical dilemma, the first thing Amanda must do is
analyze her actions without thinking about consequences.
Answer:
Which of the following is a major risk whistle-blowers face by speaking out about an
organization’s misconduct?
A. They risk losing their career and financial stability.
B. They risk being ignored by both the company and media.
C. They risk being penalized under the Whistleblower Prevention Act.
D. They risk imprisonment under the False Claims Act.
Answer:
Catherine, a board member of Clayton Inc., is also part of an operating committee that
is responsible for overseeing the accounting policies of the company. This committee is
known as the _____.
A. business sales unit
B. audit committee
C. compensation committee
D. quality assurance unit
Answer:
Business ethics:
A. involves applying ethical and moral standards to business behavior.
B. should be applied as a separate set of moral standards from general ethics.
C. deals exclusively with the ethical behavior of stakeholders and shareholders.
D. can by understood from two perspectivespreventative and prohibitive.
Answer:
_____ refers to the actions placed within a strictly moral context instead of basing
actions on the needs of the particular situation.
A. Moral obligation theory
B. Virtue ethics
C. Freudian theory
D. Universal ethics
Answer:
How have advances in technology affected customers?
A. Their personal data can no longer be sent to any part of the world.
B. They have round-the-clock access to customer services.
C. They no longer have access to after-hours tech support services.
D. Their personal data cannot be digitized, thus protecting their privacy.
Answer:
In _____ whistle-blowing, an employee who discovers corporate misconduct brings it
to the attention of law enforcement agencies and/or the media.
A. external
B. internal
C. implicit
D. explicit
Answer:
The problem with virtue ethics is that:
A. it is based on consequentialism.
B. societies are formed according to the Golden Rule.
C. societies can place different emphasis on different virtues.
D. it is based on the idea that the ends justify the means.
Answer:
Which of the following is TRUE of the Whistleblower Protection Act of 1989?
A. It imposed specific performance deadlines in processing whistle-blower complaints.
B. It made it mandatory to disclose the name of the whistle-blower in all circumstances.
C. It failed to safeguard federal employees from retaliatory behavior aimed at them.
D. It only safeguarded nonfederal employees from retaliatory behavior against them.
Answer:
In _____, organizations take a philanthropic approach by underwriting specific
initiatives to give back to the company’s local community or to designated national or
international programs.
A. altruistic CSR
B. strategic CSR
C. ethical CSR
D. economic CSR
Answer:
_____ has made it difficult for organizations to precisely measure the amount of time
that employees are on-site.
A. Keystroke loggers
B. Smart ID cards
C. Telecommuting
D. Packet-sniffing software
Answer:
The _____ first addressed the issue of retaliation against federal employees who bring
accusations of unethical behavior.
A. Sarbanes-Oxley Act of 2002
B. Whistleblower Protection Act of 1989
C. False Claims Act of 1863
D. Rehabilitation Act of 1973
Answer:
According to Adam Moore, which of the following is TRUE of thin consent?
A. It is given when the employee has no other choice.
B. It is not dependent upon the state of the job market.
C. It is consent given on behalf of somebody else.
D. It is a form of consent that is not legally binding.
Answer:
Downerz Enterprises (DE) was in the news for misappropriation of pension funds by
one its directors. In wake of the recent scandals, the trustees of DE appointed a new
director who established a code of ethics. He announced extensive training for every
member of the organization. An ethics officer was also hired by DE. Which of the
following is most likely the immediate next step that the new director should take to
maintain ethical behavior?
A. Monitor the ethical behavior of employees
B. Promote DE’s commitment to ethical behavior
C. Reward ethical behavior demonstrated by employees
D. Support the code of ethics with extensive training for senior management
Answer:
The _____ of 2002 incorporates the “comply or else” approach to corporate
governance.
A. Sarbanes-Oxley Act
B. Comstock Act
C. Rehabilitation Act
D. Federal Intervention Act
Answer:
According to the concept of _____, the traditions of your society, your personal
opinions, and the circumstances of the present moment define your ethical principles.
A. universal ethics
B. normative ethics
C. ethical relativism
D. utilitarianism
Answer:
The _____ is a legislative response to the corporate accounting scandals of the early
2000s that cover the financial management of businesses.
A. Sarbanes-Oxley Act
B. Trust Indenture Act
C. Equal Opportunity Act
D. Foreign Corrupt Practices Act
Answer:
What is the UN Global Compact?
A. It is a standard of business practice that all countries are expected to follow, by law.
B. It is a set of mandatory rules by which multinational corporations are expected to
operate.
C. It is a body of rules that deals exclusively with fair pricing and customer satisfaction.
D. It is a voluntary corporate initiative that addresses the main concerns of
globalization.
Answer:
The Whistleblower Protection Act of 1989 guaranteed the anonymity of the
whistle-blower unless:
A. the individual was a federal employee.
B. revealing the name would protect public safety.
C. the individual was not a citizen of America.
D. there were other sources of information.
Answer:
Amanda and Ross have been chosen to go to Ethiopia for their university’s International
Student Exchange Program. They read about the beliefs, attitudes, practices, norms,
traditions, cuisine, and music of Ethiopia to better adapt to the place. Amanda and Ross
are reading about the _____ aspect of Ethiopia.
A. cultural
B. economical
C. political
D. philosophical
Answer:
Cyberliability:
A. does not include harassment that reaches employees’ via e-mail.
B. applies the legal concept of liability to the world of computers.
C. is only enforceable in unregistered commercial Internet cafés.
D. does not cover categories like obscenity and pornography.
Answer:
The creation of the _____ was an attempt to reestablish the perceived independence of
auditing companies after the corporate accounting scandals of the early 2000s.
A. Securities and Exchange Commission
B. Consumer Financial Protection Bureau
C. Federal Labor Relations Authority
D. Public Company Accounting Oversight Board
Answer:
Which of the following represents a legal accounting practice?
A. Taking questionable deductions
B. Overvaluing assets
C. Deferring receipts from one quarter to the next to manage tax liability
D. Underreporting income to decrease the amount paid as taxes
Answer:
One of the responsibilities of the audit committee of a company is to:
A. elect the members of the company’s board of directors.
B. manage the company’s leadership pipeline.
C. monitor the company’s accounting policies and procedures.
D. elect the members of the corporate governance committee.
Answer:
Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent
behavior against the government are entitled to _____ of the amount recovered.
A. between 30 and 50 percent
B. less than 10 percent
C. at least 50 percent
D. between 10 and 30 percent
Answer:
The UN Global Compact states that businesses should:
A. support a precautionary approach to environmental challenges.
B. avoid involvement in the environmental concerns of other nations.
C. avoid selling their products to the people of less-developed nations.
D. support the employment of children in sweatshop production facilities.
Answer:
The argument over privacy at work has traditionally centered on:
A. the designations held by different employees.
B. the amount of time that employees were on-site.
C. whether the organization was vertically structured.
D. whether the organization was horizontally structured.
Answer:
The practices of making a company’s operations _____, to offset damage to the
environment through their greenhouse gas emissions, was initially developed as a
solution for those industries that face significant challenges in reducing their emissions.
A. focus on consumerism
B. achieve economies of scale
C. backward integrated
D. carbon neutral
Answer:
A whistle-blower hotline is a telephone line where employees can leave messages to
alert the _____ of suspected corporate misconduct without revealing their identity.
A. company
B. government
C. media
D. offender
Answer:
Alan, a newly hired employee in charge of tracking his company’s inventory, finds that
there is a major discrepancy between the expected stock and the actual stock. He
discovers that one of the employees in his department is responsible for the
misappropriation of this stock and immediately reports his observation to the operations
manager. Alan plays the role of an _____ whistle-blower.
A. explicit
B. internal
C. implicit
D. external
Answer:
Poor corporate governance:
A. weakens a company’s potential and makes it less attractive to investors.
B. forces the managers of a company to be accountable to its shareholders.
C. indicates effective mechanisms for monitoring the company’s policies.
D. results in underpinning the integrity and efficiency of financial markets.
Answer:
How do people arrive at the definition of what’s right or wrong?
Answer:
The _____ Act of 1989 imposed specific performance deadlines in processing
whistle-blower complaints and guaranteed the anonymity of the whistle-blower unless
revealing the name would prevent criminal activity or protect public safety.
Answer:
Originally attributed to a German philosopher named Immanuel Kant, _____ argues
that there are certain and universal principles that should apply to all ethical judgments.
Answer:
The new capability of _____ has blurred the concept of employees being “at work.”
Answer:
Utilizing the _____ principle to resolve an ethical dilemma involves considering what
would happen if everybody made the same decision as you.
Answer:
The Foreign Corrupt Practices Act finds facilitation payments acceptable provided they
expedite or secure the performance of a _____.
Answer:
Business ethics can be approached from two different perspectives. The _____
perspective recommends what should be happening.
Answer:
When a company develops a clear sense of what it stands for as an ethical organization,
it develops _____ ethical policies.
Answer:
The code of ethics adapted by the _____ speaks about doing no harm, fostering trust,
and improving “customer confidence in the integrity of the marketing exchange
system.”
Answer:
Under the federal Civil False Claims Act, whistle-blowers are referred to as _____.
Answer:
The audience for the code of ethics would be every _____ of the organization.
Answer:
The “_____” approach to corporate governance gave companies the flexibility to
comply with governance standards or explain their noncompliance in their corporate
documents.
Answer:
_____ is the process by which organizations are directed and controlled.
Answer:
The “Office of the Whistleblower” was created by the _____.
Answer: