61) The climate fundamental to a company’s ethical culture is set by whom?
A) employees
B) board of directors and the CEO
C) managers and supervisors
D) all of the above
62) An ethical culture consists of all of the following factors EXCEPT ________.
A) ethical leadership
B) guerilla marketing
C) values
D) accountability
63) Executives and managers at ABC Enterprises actively encourage a strong ethical culture at
the firm. Which of the following would be the most likely result of the firm’s actions?
A) increased employee interest in development programs
B) frequent use of human resource information systems
C) changes in corporate communication methods
D) improvements in organizational performance
64) Which term refers to a statement of the values adopted by the company, its employees and its
directors?
A) code of ethics
B) ethical policies
C) vision statement
D) code of conduct
65) Julia works as a production supervisor, and she believes one of her subordinates is drinking
during his lunch break. Julia’s employer does not have a specific rule regarding the subordinate’s
behavior. Which of the following would most likely assist Julia with her problem in this
situation?
A) corporate code of ethics
B) corporate vision statement
C) corporate code of conduct
D) federal legislation
66) Lincoln Enterprises recently fired two employees who were caught stealing tools from the
firm’s warehouse. As a result, the CEO of Lincoln wants to strengthen the firm’s ethical culture
and prevent future violations by redesigning the firm’s ethics program. Which of the following
questions is LEAST relevant when developing Lincoln’s new ethics program?
A) What behavior is expected of Lincoln employees?
B) What is the opinion of stakeholders regarding Lincoln’s ethics?
C) How are ethical situations communicated and resolved at Lincoln?
D) What is the process for Lincoln establishing a corporate giving program?
67) Which of the following is NOT a major provision in the SHRM code of ethics?
A) professional responsibility
B) cultural understanding
C) professional development
D) fairness and justice
68) Vision Technologies wants to gain the confidence of employees and customers by
developing a strong ethical culture. Which of the following methods would be the best way for
the firm’s HR department to accomplish this goal?
A) placing the code of ethics on the firm’s intranet
B) posting the code of ethics in the breakroom
C) providing ethics training to employees
D) having employees sign ethics contracts
69) A code of ethics establishes the ________ that the organization lives by.
A) policies
B) procedures
C) values
D) technologies
70) Riley Manufacturing recently developed a code of ethics. Which of the following topics is
most likely covered in the document?
A) business conduct
B) fair competition
C) HR issues
D) all of the above
71) According to Walmart’s code of ethics, Edward, an employee in the sales department, cannot
accept gifts from suppliers because such actions would be a ________.
A) conflict of interest
B) double standard
C) regulatory breach
D) discriminatory act
72) In order to maintain the importance of a code of ethics to employees, large firms frequently
________.
A) write a code of conduct
B) send a memo to all employees
C) appoint an ethics officer
D) put the ethical code on the intranet
73) At Tyson Foods, Lily serves as the point person who guides everyone in the firm towards
ethical actions. Lily most likely serves as the firm’s ________.
A) chief financial officer
B) HR manager
C) ethics officer
D) safety officer
74) Which law prohibits bribes of foreign government officials or business executives?
A) Federal and Foreign Bribery Act
B) Foreign Corrupt Practices Act
C) Corruption Practices Act
D) Sarbanes–Oxley Act
75) Which quality is emphasized more than in the past for the Baldrige National Quality Award?
A) interpersonal skills
B) leadership ethics
C) personal motivation
D) community service
76) The six core provisions in the SHRM code of ethics are professional responsibility,
professional development, ethical leadership, fairness and justice, conflicts of interest, and use of
information which is considered an excellent example of a code of ethics.
77) Code of conduct and code of ethics are the same so no distinctions are needed.
78) According to research studies, unethical companies financially outperform ethical
companies, although ethical companies are more successful with recruiting.
79) A code of ethics establishes the rules that an organization lives by and becomes part of the
organization’s corporate culture.
80) How do firms benefit from a strong ethical culture? How can HR departments foster such
cultures?
81) Why is a code of ethics important? What should be included in a firm’s code of ethics?
82) Which one of the following statements about HR and ethics is FALSE?
A) It is sufficient for HR representatives to say that everyone should be ethical.
B) The ethical bearing of those in HR affects the credibility of the entire organization.
C) HR representatives should maintain a dialogue with workers about ethical behavior.
D) HR professionals can help foster an ethical culture.
83) According to a recent report by the Society for Human Resource Management, ________.
A) integrity and ethical behavior are marginally important for HR executives
B) the operations department should be the repository for corporate ethics
C) it is the duty of HR professionals to help create an ethical climate in their organization
D) business ethics and corporate culture are independent elements in today’s workplace
84) Which term refers to the application of ethical principles to human resource relationships and
activities?
A) morals
B) social ethics
C) business ethics
D) human resource ethics
85) Which of the following is NOT one of the triple bottom line factors of corporate social
responsibility?
A) society
B) environment
C) economy
D) culture
86) The implied, enforced, or felt obligation of managers, acting in their official capacities, to
serve or protect the interests of groups other than themselves is known as ________.
A) human resource ethics
B) environmental morality
C) corporate social responsibility
D) business centered morality
87) When a corporation behaves as if it has a conscience, it is said to be ________.
A) globally ethical
B) socially responsible
C) participative
D) charitable
88) Which term best describes how a company as a whole behaves towards society?
A) corporate social responsibility
B) business ethics
C) social morality
D) equal opportunity
89) Which HR practice would most likely be improved through a firm’s efforts at corporate
social responsibility?
A) benefits
B) recruiting
C) compensation
D) succession planning
90) According to Deborah Leipziger of the Ethical Corporation Institute, the more credible social
responsibility efforts ________.
A) cannot be sustained in global commerce
B) don’t require a commitment from top management
C) tend to be led by key players in a company
D) are incompatible with corporate profit motives
91) Which one of the following is NOT one of the countries in which the 2017 Global 100 Most
Sustainable Corporations in the world were commonly found?
A) United Kingdom
B) France
C) Mexico
D) United States
92) A study on global CSR conducted during the recent economic downturn discovered all of the
following EXCEPT ________.
A) 22 percent of respondents think the crisis will have a negative impact on CSR
B) 35 percent of respondents think CSR has become a victim of its own hype
C) 44 percent of respondents think the crisis will cause CSR to be applied more often
D) 28 percent of respondents think the real meaning of CSR will change
93) According to a sustainability survey commissioned by the consulting firm KPMG,
approximately ________ of large and mid-sized companies worldwide have an active
sustainability program in place.
A) 62 percent
B) 11 percent
C) 33 percent
D) 75 percent
94) Recent research into the relationship between ethical behavior and an employee’s pay
discovered that most companies base pay on ________.
A) entitlement and custom rather than on ethical behavior
B) performance metrics and ethical behavior
C) ethical behavior instead of entitlement and custom
D) guidelines presented in books on philosophy and religion
95) Angie, an HR manager, has been given the task of strengthening the ethical culture at her
firm. Which of the following activities would be most beneficial?
A) emailing ethics codes to all employees
B) posting ethics code posters in the hallways
C) writing a memo about ethics to top executives
D) discussing ethics during performance appraisals
96) According to a recent survey by Brighter Planet, although more firms are engaging in green
activities, the effectiveness of these efforts has declined. Some believe that the problem with
corporate social responsibility is that ________.
A) no universal set of corporate social responsibility guidelines is available
B) each firm has to follow a universal set of corporate social responsibility guidelines
C) corporations really don’t want to pursue social responsibility
D) corporate social responsibility is a load of value-destroying nonsense
97) Milton Friedman, a Nobel Prize winning economist, asserted that ________.
A) as a firm creates wealth for its shareholders, society as a whole will also receive benefits
B) the pursuit of social responsibility does not affect the price of a company’s stock
C) as a firm pursues corporate sustainability, it will create wealth for its stockholders
D) stockholders should quit whining and get behind corporate social responsibility
98) Who usually determines a corporation’s approach to social responsibility?
A) government
B) stockholders
C) top executives
D) board of directors
99) Preparing ethics training for global organizations is ________ than preparing training for
U.S. employees.
A) more complicated
B) less complicated
C) no different
D) none of the above
100) KPMG uses all of the following approaches EXCEPT ________ to handle ethical issues.
A) adopting expedient, site-specific procedures
B) providing multiple channels for raising alarms
C) ensuring consistent investigation and resolution of all reported matters
D) eliminating fear of retaliation for those who raise questions
101) Ethics training should be part of a ________.
A) reactive strategy
B) contextual strategy
C) defensive strategy
D) proactive strategy
102) Lincoln Enterprises recently fired two employees who were caught stealing tools from the
firm’s warehouse. As a result, the CEO of Lincoln wants to strengthen the firm’s ethical culture
and prevent future violations by requiring employees to participate in ethics training programs.
Which of the following best supports the CEO’s idea?
A) Lincoln Enterprises desires the respect of citizens in the local community.
B) The social contract developed by Lincoln Enterprises addresses employee concerns.
C) HR managers at Lincoln Enterprises provide new employees with policy handbooks.
D) The Sarbanes–Oxley Act requires Lincoln Enterprises to provide ethics training courses.
103) Lincoln Enterprises recently fired two employees who were caught stealing tools from the
firm’s warehouse. As a result, the CEO of Lincoln wants to strengthen the firm’s ethical culture
and prevent future violations by requiring employees to participate in ethics training programs.
Which of the following most likely undermines the CEO’s idea?
A) Middle managers at Lincoln regularly receive reports of questionable employee behavior.
B) Since Lincoln Enterprises is a global firm, the training program would need to be translated.
C) Senior managers at Lincoln indicate that valuable work time would be lost with a training
program.
D) Competitors of Lincoln Enterprises provide regular ethics training programs to managers and
employees.