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a. EthicsPoint will dispatch an ethics manager to interview the involved parties.
b. The appropriate manager at Lian’s company will be put in contact with Lian about the
issue.
c. The appropriate manager at Lian’s company will receive the information
anonymously.
d. EthicsPoint will have Lian come in to discuss the issue with Lian’s company ECO or
ombudsperson.
53. When a manager is notified through the EthicsPoint system, what is the typical next
step for that manager?
a. either asking questions of the anonymous employee or beginning to deal with the
issue
b. asking EthicsPoint to step in and handle the issue
c. asking for identification of the reporting employee
d. referring the issue up the chain of command
54. Sears reports that most of its ethics assist line calls are about how to solve a human
resources issue. Which of the following is true of these calls?
a. They are all referred to the appropriate company HR department.
b. They are refused politely.
c. They are welcome, but they are not part of the original intention of ethics assist lines.
d. These calls are considered a high priority for ethics assist lines.
55. What happens for a college student who calls an EthicsPoint hotline and their issue
does not conform to one of the established four categories of wrongdoing?
a. They are referred to the college HR department.
b. They choose the “other” option.
c. They are asked to contact the EEOC.
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d. They are assigned a counselor employed by the school.
56. Managers should approach the existence of a company ethics assist line by
encouraging employees to ______.
a. use the assist line, but also to inform the manager of such use
b. attempt to resolve the issue privately before calling the assist line
c. come to them first with concerns before calling the line
d. use the assist line for sensitive information
57. A manager at a mid-size company announces the addition of a third-party
contracted ethics assist line for employees. But after the announcement, several
employees come to him to express concerns that the new line will encourage
employees to settle scores by making false accusations. What should the manager do?
a. Offer them statistics from other companies about the good that an assist line can
provide.
b. Inform employees of what topics are acceptable for use with the assist line.
c. Have employees vet issues through the manager first before calling the line.
d. Make clear to employees that false reporting through the assist line will be
disciplined.
58. How does the text define “whistleblowing”?
a. Contacting someone outside the organization about potential or actual nontrivial
misconduct inside the organization.
b. Contacting an ethics assist line about an ethics issue to avoid going through internal
organizational channels.
c. Contacting federal or state governmental authorities about an ethics violation.
d. Using either government or media sources to effect ethical change within a private
organization.
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59. What common purpose is served by the False Claims Act, Tax Relief and Health
Care Act, and Dodd-Frank Act?
a. They encourage whistleblowers among employees specific to government
institutions.
b. They reduce the need for whistleblowers to report on private organizations.
c. They help protect whistleblowers from retribution.
d. They help provide whistleblowers with financial compensation.
60. The qui tam provision of the False Claims Act specifically empowers ______.
a. federal prosecutors taking legal action
b. citizen whistleblowers taking legal action
c. the federal government branch that pays a contractor
d. ombudsmen or ECOs within the federal government
61. The False Claims Act was strengthened under the Reagan administration following
what events?
a. Iran-Contra scandal
b. defense industry frauds
c. savings and Loan scandal
d. insider trading convictions
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62. Why might a citizen not want to file suit under the False Claims Act against a
company that has committed major fraud against the federal government and is now in
bankruptcy?
a. When in bankruptcy, company executives are free from prosecution for financial
issues.
b. The company’s failure in the marketplace is already under a law suit.
c. There is little point in filing suit if the company is unlikely to be able to pay back any of
the money.
d. The False Claims Act specifically protects companies in bankruptcy from prosecution.
63. What does the IRS’s Whistleblower Reward Program have in common with the
False Claims Act?
a. Both encourage whistleblowers to file suit against individuals as well as companies.
b. Both provide financial incentives to whistleblower citizens in the form of a percentage
of money recovered.
c. Both require the whistleblower to provide evidence of personal harm that was
suffered in connection to the fraud.
d. Both provide total anonymity for the whistleblower.
64. Susan contacts the IRS Whistleblower Office to report on tax fraud in excess of $5
million annually by her company. What process will this trigger?
a. A public investigation of the company by the IRS Whistleblower Office.
b. Removal of Susan from the company for her own protection.
c. A routine audit of the company by the IRS.
d. A notification of company leadership of the complaint in hopes the company will
volunteer information about the fraud.
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65. What effect has the Whistleblower Reward Program had?
a. Billions have been reported but only a few million recovered due to legal challenges.
b. Billions have been recovered and millions paid out to whistleblowers.
c. The program is too new to assess effects, but early reporting suggests billions in
possible taxes will be collected.
d. Whistleblowers have been largely reluctant to come forward due to issues concerning
lack of anonymity.
66. The Dodd-Frank Act offers financial whistleblower incentives for reporting about
______.
a. tax fraud
b. discrimination issues
c. federal contractor fraud
d. securities violations
67. In order to satisfy a requirement for a whistleblower to report through the Dodd-
Frank Act, the reporting must be ______.
a. done by a U.S. citizen living within the United States
b. about an SEC violation that has already occurred
c. voluntary
d. anonymous
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68. What primarily encouraged the creation of the Dodd-Frank Wall Street Reform and
Consumer Protection Act?
a. news reports about fraud by government contractors
b. the need to encourage whistleblowers in the financial industry
c. the financial crisis that began in 2007
d. the success of the False Claims Act
69. Who is typically the most informed person about a company’s abuses?
a. an employee
b. a customer
c. a supplier
d. a government auditor
70. In what way does the Sarbanes-Oxley Act of 2002 strengthen the effects of the
Dodd-Frank Act of 2010?
a. It increases whistleblower involvement by strengthening protections for
whistleblowers reporting under Dodd-Frank.
b. It increases the severity of the penalties against companies charged with fraud under
Dodd-Frank.
c. It widens the scope and definition of fraud that can be reported by whistleblowers.
d. It allowed companies to fire whistleblowers only when giving financial compensation
far beyond a typical severance payment.
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71. In order to be eligible for the Whistleblower Rewards Program, a whistleblower must
provide the SEC with ______.
a. original information about wrongdoing
b. a filmed deposition
c. five forms of evidence related to unethical behavior
d. an agreement to remain anonymous
72. What is the general legal success rate of whistleblower suits against financial
services companies in the wake of Dodd-Frank and Sarbanes-Oxley?
a. extremely high, with courts almost always granting major victories and compensation
to whistleblowers
b. high, with courts and juries regularly ruling in favor of whistleblowers
c. somewhat low, with around a quarter winning favorable rulings
d. extremely low, with only a very small percentage winning favorable rulings
73. What is the first step a whistleblower should take before choosing to report on a
company’s misdeeds?
a. Consult an attorney.
b. Secure financial savings.
c. Quit their position at the company.
d. Wait to see if the company addresses the problem.
74. How has the public perception of whistleblowers changed over time?
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a. from relatively harmless tattletales to individuals who can do real damage to a
company
b. from ethical stewards toward an image as misguided social warriors
c. from disgruntled employees toward an image as people providing a public service
d. from public servants to greedy opportunists (as cash settlements to whistleblowers
has risen)
75. Cami has noted that her industrial processing company is dumping toxic chemicals
into a nearby river but hiding the action through bookkeeping tricks. She has ample
evidence of the behavior and is ready to make her first move by calling a government
whistleblower hotline. But when she consults an attorney, she is advised not to make
the call yet. What did the attorney likely tell her?
a. Whistleblowing should be limited to financial services fraud.
b. Whistleblowing should not be pursued in this case because Cami is likely to lose her
job.
c. Cami has not yet demonstrated that the behavior is causing direct harm to people.
d. Cami has not yet tried to communicate her concerns to anyone inside the company.
76. Which of the following statements about nonprofit help for whistleblowers is
accurate?
a. The Project on Government Oversight has a narrow focus on military and military
contractor fraud.
b. The National Whistleblowers Center is exclusively a lobbying organization for
whistleblower issues.
c. The Government Accountability Project pursues whistleblowing cases across a wide
range of fields.
d. Whistleblowers who seek out the support of nonprofits must give up their anonymity
and risk backlash by the companies that employ them.
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77. Most retaliation against the whistleblower for whistleblowing is initiated by ______.
a. leaders in the broader industry in which the employee works
b. the company’s HR department
c. the company’s management
d. the employee’s coworkers
78. Even if a whistleblower wins a legal case against his company and is compensated,
the legal process can be damaging because ______.
a. whistleblowers must first submit to arbitration instead of bringing direct legal suit
b. it often takes years to complete while the whistleblower is unemployed
c. a whistleblower is not allowed to be employed by the company he or she is suing
d. that compensation does not take into account the whistleblower’s legal costs
79. What lesson is the text trying to impart by relating the whistleblowing story of
Cynthia?
a. Financial rewards for the whistleblower, though long in coming, typically compensate
for any hardship suffered.
b. Even ultimate victory for the whistleblower can be preceded by many years of
hardship and pain.
c. It is very rare for a whistleblowing case to end in a favorable outcome for the
whistleblower.
d. Some whistleblowers can win major cases without securing legal services.
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80. Which of the following conditions should be met (according to most attorneys’
advice) before whistleblowing?
a. Damages must be over a million dollars.
b. Serious harm is involved.
c. The employee must still be employed by the company.
d. The employee must have video or audio recordings of the fraudulent behavior.
True/False
1. Managers are most dependent on employees to let them know about unethical
behavior occurring in their company or department.
2. Without frequent interaction with subordinates, it is difficult for a manager to cultivate
approachability.
3. Privacy and confidentiality are key components of a managerial open-door policy.
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4. When a direct manager is not ethically approachable, an employee with an ethical
issue should always contact a third-party ethics enforcement line or organization.
5. The presence of an ethics and compliance officer (ECO) is usually limited to large
organizations.
6. “Ethics assist line” is a more accurate term for an anonymous internal reporting
system than “ethics hotline.”
7. Third-party contracted ethics assist lines are more common, but they have fewer
advantages than lines created and hosted by an organization itself.
8. The False Claims Act provides protection and assistance to whistleblowers, but it
does not provide financial compensation.
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9. Whistleblowing should generally be considered only after all communication channels
within an organization have been exhausted.
10. The IRS’s Whistleblower Reward Program does not qualify for reporting on
individuals, only companies with tax fraud in excess of $2 million.
Short Answer
1. What are the characteristics of an authoritarian leader?
2. When should managers talk about ethical issues with employees?
3. How do chaplains differ from ombudsmen?
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4. Why is “ethics assist line” a better name than “ethics hotline?”
5. What is the purpose of the False Claims Act with respect to citizen action?
Essay
1. Hallie has worked at her financial services company for several years when she
realizes that her department is creating false accounts to make itself look more
profitable. Though she sees this clearly, she chooses not to report the issue to anyone.
Why might she have made this choice?
2. Omar has just arrived as a mid-level manager at a waste disposal firm. He is eager to
make a good impression with his employees and encourage an ethical culture by
becoming an approachable manager with respect to ethics issues. What steps might he
take to fulfill this desire?
3. How does an ethics and compliance officer (ECO) compare to an ombudsman in
dealing with ethics issues and promoting ethics systems within an organization?
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4. Give a detailed example of an effective ethics assist line.
5. Lupe is a lawyer who specializes in antifraud cases. She has been contacted by an
employee at a securities firm about an ongoing fraud the employee detected. The
employee wants to become a whistleblower and file suit against the company. What
should Lupe tell this employee?