Ethics for the greater good is also referred to as utilitarianism.
Answer:
Video surveillance, under federal law, is acceptable where the camera focuses on
publicly accessible areas.
Answer:
Organizational culture can be defined as the values, beliefs, and norms shared by all the
employees and competitors of that organization.
Answer:
The creation of the Public Company Accounting Oversight Board (PCAOB) as an
independent oversight body was an attempt to reestablish the perceived independence
of auditing companies that faced serious questioning after several corporate scandals.
Answer:
The last stage of Lawrence Kohlberg’s stages of ethical reasoning is conventional.
Answer:
It is illegal to defer receipts from one quarter to the next to manage tax liabilities.
Answer:
A company’s commitment to ethical behavior impacts only the lower level of
management and those departments that deal directly with customers.
Answer:
Which of the following arguments made by the advocates of ethical business conduct
about the human resource department isTRUE?
A. It should sideline issues related to ethics.
B. It should ensure that ethics is given the least priority.
C. It should not include an ethics component in the leadership selection and
development processes.
D. It should not be the sole creator of the code.
Answer:
The social contract approach is a very simplistic model that argues that the corporation
only has an obligation to itself.
Answer:
A less-developed nation is a country that lacks the economic, social, and technological
infrastructure of a developed nation.
Answer:
Over the last five decades, corporate ethics has shifted from the organizational
mainstream into the domain of legal and human resource departments.
Answer:
Moving the ethical commitment of an organization to a global stage requires nothing
more than increasing the scale of the policies and procedures.
Answer:
The “comply or else” guideline gave companies the flexibility to comply with
governance standards or explain their noncompliance in their corporate documents.
Answer:
When creating a code of ethics from scratch, the Institute of Business Ethics suggests
that an organization should get endorsement from the chairperson and the board.
Answer:
Jason is a high-school senior whose peers are into drugs. He also has a family history of
substance abuse. This will have no impact his moral standards.
Answer:
Corporate governance is concerned with how well an organization meets its obligations
to its stakeholders.
Answer:
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.
Answer:
The federal Civil False Claims Act prevents whistle-blowers from implicating the
government in any way.
Answer:
The “comply or else” methodology is more aggressive than the “comply or explain”
methodology.
Answer:
Which of the following isTRUE of ethical relativism?
A. The idea of relativism implies some degree of flexibility as opposed to strict
black-and-white rules.
B. The idea of relativism implies that the ends justify the means.
C. The problem with this approach is that individuals share similar standards in a
community.
D. The problem with this approach is that everyone is committed to doing the right
thing.
Answer:
The Foreign Corrupt Practices Act encompasses all the secondary measures that were in
use to prohibit bribery and other illegal forms of payment to foreign officials by
focusing on two distinct areasdisclosure and prohibition.
Answer:
Before the Whistleblower Protection Act of 1989 was passed, whistle-blowers weren’t
entitled to any sort of monetary reward from the government.
Answer:
Anderson Enterprises (AE) issues free meal coupons to its employees and also provides
them with travel allowances. This illustrates that AE pursues the triple bottom-line
approach.
Answer:
Globalization represents a new stage of capitalist development, this time with public
institutions in place to protect society by balancing private corporate interests against
broader public interests.
Answer:
Ethical relativism is where the traditions of one’s society, one’s personal opinions, and
the circumstances of the present moment define their ethical principles.
Answer:
Extabet Enterprises donates a certain percentage of their profit to local charities, but it
does not comply with all the legal industry standards of operating in a safe working
environment. This depicts corporate social responsibility.
Answer:
The ethicalness of an activity is determined by the number of people who take the
action.
Answer:
Which of the following statements isTRUE of a value chain?
A. It includes the values, beliefs, and norms shared by all the employees of that
organization.
B. It represents the sum of all the policies and proceduresboth written and informalfrom
each of the functional departments in the organization.
C. It is composed of the key functional inputs that an organization provides in the
transformation of raw materials into a delivered product or service.
D. It refers to the actions that are taken out of duty and obligation to a purely moral
ideal, rather than based on the needs of the situation.
Answer:
A carefully “wordsmithed” document and carefully positioned press releases suggest
that an organization is strictly following the policy of transparency.
Answer:
An organization’s code of ethics has no relevance to its stakeholders.
Answer:
Critics have argued that, from an ethical perspective, altruistic CSR is immoral since it
represents a violation of shareholder rights if they are not given the opportunity to vote
on the initiatives launched in the name of corporate social responsibility.
Answer:
Selling a product that has the potential to be harmful to a firm’s customers represents a
significant conflict of interest.
Answer:
Ethical misconduct is possible even if the board of directors passes all the criteria
established by Walter Salmon.
Answer:
Demanding customers who want new and better products and services at lower prices
represent a typical market.
Answer:
A(n) _____ is composed of the key functional inputs that an organization provides in
the transformation of raw materials into a delivered product or service.
A. value chain
B. code of ethics
C. organizational culture
D. strategic CSR
Answer:
Which of the following is an accurate statement about an organization’s code of ethics?
A. There are a few perfect models for a code of ethics.
B. The audience for a code of ethics includes only the shareholders of an organization.
C. The code of ethics captures every possible event from each department of an
organization.
D. The code of ethics is written for the employees to follow, and the stakeholders aren’t
required to follow it.
Answer:
_____ refers to a work arrangement that allows employees to work from home and log
into to the company’s network remotely.
A. Telecommuting
B. Wiretapping
C. Hyper-networking
D. Cybersquatting
Answer:
Under the FGSO, the death penalty:
A. can only be conferred upon multinational corporations and not on smaller
businesses.
B. allows the state to appropriate half of the organization’s total assets.
C. is warranted where the organization was operating primarily for a criminal purpose.
D. cannot be levied upon organizations if it means putting them out of business.
Answer:
Whistle-blowers are individuals who:
A. discover evidence of malpractice in their workplace but choose to ignore it.
B. witness and report the misconduct in organizations for which they do not work.
C. bring the misconduct in the organizations they work for to the attention of others.
D. witness but ignore the misconduct in organizations for which they do not work.
Answer:
In external whistle-blowing, an employee who discovers corporate misconduct brings it
to the attention of:
A. the chief executive officer.
B. his or her supervisor.
C. law enforcement agencies.
D. human resources.
Answer:
Which of the following is recommended by the OECD?
A. Companies should contribute to the innovative capacities of host countries.
B. Companies should encourage developing nations to adopt the principles of socialism.
C. Companies should uphold the effective recognition of the right to collective
bargaining.
D. Companies should not involve themselves in the environmental issues of other
countries.
Answer:
Over the last five decades, codes of ethics:
A. have matured from performance-measurement documents to cosmetic public
relations documents.
B. have been adopted by fewer corporations because employees and managers no
longer need guidance.
C. have been adopted by an increasing number of organizations who share them with all
their stakeholders.
D. have relieved chief executive officers from the control mechanisms used by the
board of directors.
Answer:
Which of the following laws holds American companies accountable for their ethical
performance in the United States?
A. The Comstock Act
B. The National Emergencies Act
C. The Foreign Corrupt Practices Act
D. The Rehabilitation Act
Answer:
Which of the following is the final step of the three-step process for solving an ethical
problem?
A. Analyze the consequences
B. Plan a solution
C. Make a decision
D. Analyze the actions
Answer:
According to the value chain of an organization, which of the following is a primary
activity?
A. Human resources management
B. General administration
C. Supply chain management
D. Systems development
Answer:
The _____ of 2002 introduced greater accountability for chief executive officers and
boards of directors in signing off on the financial performance records of the
organizations they represent.
A. Comstock Act
B. Federal Corrupt Practices Act
C. Sarbanes-Oxley Act
D. National Banking Act
Answer:
According to the social contract approach to management, by recognizing _____ and
not just shareholders, corporations must maintain a long-term perspective rather than
simply delivering quarterly earnings numbers.
A. stakeholders
B. competitors
C. statutory auditors
D. distributors
Answer:
Which of the following is TRUE of telecommuting?
A. It allows employees a certain degree of flexibility in terms of their work hours.
B. It allows employees no flexibility in terms of the locations from which they work.
C. It makes it easier for employers to measure the amount of time employees are
on-site.
D. It makes it easier for employers to monitor the Internet activity of their employees.
Answer:
_____ is a theory more focused on the outcome of your actions rather than the apparent
virtue of the actions themselves.
A. Ethics for the greater good
B. Normative ethics
C. Ethical relativism
D. Virtue ethics
Answer:
Which of the following is TRUE of the penalties under the Foreign Corrupt Practices
Act?
A. The Department of Justice can enforce criminal penalties of up to $20 million per
violation for corporations and other business entities.
B. The Securities and Exchange Commission can impose a civil fine of up to $2,000 per
violation upon corporations and other business entities.
C. Penalties under the books and record-keeping provisions can reach up to $25 million
and 5 years’ imprisonment for individuals and up to $50 million for organizations.
D. Officers, directors, stockholders, employees, and agents are subject to a fine of up to
$250,000 per violation and imprisonment for up to five years.
Answer:
The term “_____” refers to a private piece of a company’s Internet network that is made
available to customers and/or vendor partners on the basis of secured access by unique
password.
A. extranet
B. intranet
C. Ethernet
D. cybernet
Answer:
Which of the following is the first stage in making ethical behavior sustainable for a
company?
A. Hiring an ethical officer
B. Establishing a code of ethics
C. Rewarding ethical behavior demonstrated by employees
D. Supporting the code of ethics with extensive training for every member of the
organization
Answer:
After promoting an organization’s commitment to ethical behavior, which of the
following should be the immediate next stage in making ethical behavior sustainable for
the company?
A. Continuously monitor the ethical behavior of employees as the company grows
B. Establish a code of ethics
C. Reward the ethical behavior demonstrated by its employees
D. Support the code of ethics with extensive training for every member of the
organization
Answer:
_______ looks at the information available to us to resolve an ethical dilemma, and
draw conclusions based on that information in relation to our own ethical standards.
A. Universal ethics
B. Utilitarianism
C. Ethical reasoning
D. Metaphilosophy
Answer:
Which of the following is TRUE of whistle-blowers?
A. They are universally lauded for their decision to speak out.
B. They are individuals who typically have low levels of integrity.
C. They seldom harm anybody with their decision to speak out.
D. They are often criticized and considered troublemakers.
Answer:
Which of the following is TRUE of a whistle-blower hotline?
A. It is a secure telephone line through which a whistle-blower can communicate with
or warn an offender.
B. It is a government-owned service that addresses the concerns a potential
whistle-blower might have.
C. It is a telephone line linked to various law enforcement agencies used by external
whistle-blowers.
D. It is a telephone line that employees use to anonymously alert a company of
suspected misconduct.
Answer:
_____ can be said to have intrinsic value.
A. Money
B. A package holiday
C. A job offer
D. Health
Answer:
Which of the following actions does the Computer Ethics Institute consider unethical?
A. Logging into one’s company’s intranet and extranet
B. Enabling cookies on one’s own computer
C. Clearing the cache of one’s own computer
D. Copying proprietary software without paying for it
Answer:
Which of the following is TRUE of the federal Civil False Claims Act?
A. It rejected cases brought by whistle-blowers who were motivated by monetary gain.
B. It penalized whistle-blowers heavily if they had no evidence to support their claims.
C. It did not reward whistle-blowers if their cases implicated the government in any
way.
D. It did not offer whistle-blowers protection from retaliatory behavior aimed at them.
Answer:
Some of the employees, including top managers and board of directors, of Warburges
Inc. have been in the news lately for accepting bribes and using corporate resources for
personal expenses. Which of the following did the firm fail to demonstrate?
A. Vicarious liability
B. Ethical relativism
C. Organizational integrity
D. Corporate governance
Answer:
_____ is just doing the right thing, and it is something most people can understand and
support.
A. Memory conformity
B. The rule of differentiation
C. Double think
D. A simple truth
Answer:
Which of the following perspectives of business ethics is a simple documentation of
what is happening?
A. Arbitrative
B. Normative
C. Prescriptive
D. Descriptive
Answer:
The outside members of a company’s board of directors:
A. are not permitted to have other connections to the company.
B. hold management positions inside the company.
C. play no role in the board of directors’ decision-making process.
D. may comprise of the company’s creditors, suppliers, or consultants.
Answer:
The Cadbury report addressed:
A. the cultural aspects of a company’s activities.
B. the financial aspects of corporate governance.
C. the need to consider the triple bottom line.
D. the failings of the “comply or explain” policy.
Answer:
Which of the following is an example of an organization’s instrumental approach to
corporate social responsibility (CSR)?
A. Anonymous Minds, an advertising firm, provides employees with healthy meals and
has a gymnasium at the workplace.
B. Anderson Inc. provides employees with cab facility or gives them fuel allowance.
C. Larsen’s Corp., an investment company, uses different mechanisms to increase
profits and has performance incentives for its employees.
D. GreenSpin Inc. uses biodegradable plastic containers in its office cafeteria.
Answer:
Which of the following is TRUE of the compensation committee of a company?
A. It sets the compensation for all the employees of the company.
B. It cannot be staffed by individuals on the company’s board of directors.
C. It cannot be staffed by independent or outside directors of the company.
D. It oversees the salaries and bonuses of the senior executives only.
Answer:
A _____ is defined as someone with a share or interest in a business enterprise.
A. stakeholder
B. moderator
C. mediator
D. crossholder
Answer:
According to Adam Moore, if jobs are plentiful and an employee would have no
difficulty in finding another position, then the consent given to a company’s monitoring
policy is _____ consent.
Answer:
A company’s _____ should clarify its cornerstonesits mission, values, and principlesto
its managers, employees, and stakeholders.
Answer:
A(n) _____ is just doing the right thing, and it is something most people can understand
and support.
Answer:
The Public Company Accounting Oversight Board was established under the _____
Act.
Answer:
Discuss at least one weakness of each of the ethical theories.
Answer:
Running a company of any size effectively requires the board of directors to work with
the _____, making constant evaluations of risk-versus-reward scenarios together.
Answer:
_____ is a theory more focused on the outcome of your actions rather than focusing on
the apparent virtue of the actions themselves.
Answer:
The Corporate and Criminal Fraud Accountability Act is also called the _____ Act.
Answer:
Discuss the importance of the Sarbanes-Oxley Act.
Answer:
The certification by an impartial third-party professional of an organization’s financial
statements or books as being accurate refers to the _____ function of the organization.
Answer:
Depending on the actions taken by a corporation, some stakeholders will be positively
affected and others will be negatively affected. Explain.
Answer:
Why were Richard DeGeorge’s guidelines for multinational corporations doing business
abroad criticized?
Answer:
Compare the Whistleblower Protection Act of 1989 and the Sarbanes-Oxley Act of
2002.
Answer:
_____ refers to the actions that are taken out of duty and obligation to a purely moral
ideal, rather than based on the needs of the situation, since the principles are seen to
apply to everyone, everywhere, and all the time.
Answer:
The _____ Act of 1989 first addressed the issue of retaliation against federal employees
who bring accusations of unethical behavior.
Answer: