Chapter 05 – Organizational Ethics and the Law
1. (p. 95) Personal values and moral character play key roles in improving a company’s ethical
performance.
2. (p. 95) In most companies, a moral atmosphere cannot be detected.
3. (p. 96) In a benevolence ethical climate, the interests of the company’s employees and
external stakeholders most likely would be given high priority.
4. (p. 96) Managers, as major decision-makers, are one of the keys to whether a company will
act ethically or unethically.
Chapter 05 – Organizational Ethics and the Law
5. (p. 96) It is impossible for multiple ethical climates to exist within one organization.
6. (p. 97) All ethics issues in business are the same.
7. (p. 97) Honesty, integrity and accuracy are absolute requirements of the accounting function.
8. (p. 98) The International Accounting Standards (IAS) were created by the Sarbanes-Oxley
Act.
9. (p. 105) Any business that wished to do so can improve the quality of its ethical performance.
Chapter 05 – Organizational Ethics and the Law
10. (p. 107) The majority of large U.S. corporations do not have codes of ethics.
11. (p. 107) In the United States, most ethics policies are primarily based on the company’s
mission and vision.
12. (p. 113) Iceland and Sweden are two countries that are least likely to be subjected to bribery.
13. (p. 116) Ethics deal with human dilemmas that frequently go beyond the formal language of
law.
14. (p. 117) Following laws can always define proper action.
15. (p. 117) Illegal acts committed by employees, such as fraud and insider trading, are called
blue-collar crime.
16. (p. 95) The core components upon which a company’s ethical performance depends include:
Chapter 05 – Organizational Ethics and the Law
17. (p. 96) The unspoken understanding among employees of what is and is not acceptable
behavior is called:
Difficulty: Easy
18. (p. 96) If a manager approaches ethical issues with a self-centered approach, emphasis will
be on:
Difficulty: Easy
19. (p. 96) Which of the following is not an example of an ethical criterion?
Chapter 05 – Organizational Ethics and the Law
20. (p. 96) If a manger approaches ethics with benevolence in mind, he or she would stress
what?
Difficulty: Medium
21. (p. 96) Which ethical criterion is described by the idea that a company should strive for
efficiency?
Difficulty: Medium
22. (p. 97) By law, the financial records of publicly held companies are required to be:
23. (p. 98) The International Accounting Standards are essential for:
Chapter 05 – Organizational Ethics and the Law
24. (p. 100) Which financial institution asked Wall Street finance companies to self-regulate?
Difficulty: Medium
25. (p. 100) A member of the Chartered Financial Analyst Institute (CFA) must:
Difficulty: Hard
26. (p. 104) Business managers need a set of ethical guidelines to help them:
Difficulty: Hard
27. (p. 104) Which of the following organization’s code of ethics advocates “loyalty to your
organization, justice to those whom you deal and faith in your profession?”
Chapter 05 – Organizational Ethics and the Law
28. (p. 104) Building ethical safeguards into a company’s everyday routines is called:
Difficulty: Medium
29. (p. 105) A company that channels employee behavior in a lawful direction by emphasizing
the threat of detection and punishment is:
Difficulty: Easy
30. (p. 105) Integrity-based ethics programs:
Difficulty: Medium
31. (p. 107) A giant step is taken toward improving ethical performance throughout the company
when:
Chapter 05 – Organizational Ethics and the Law
32. (p. 107) Which of the following statements is true?
Difficulty: Medium
33. (p. 107) Which ethics policies are most popular amongst European and Canadian
companies?
Difficulty: Medium
34. (p. 108) An ethics or compliance officer is generally entrusted to:
Difficulty: Easy
35. (p. 109) Ethics reporting mechanisms have been:
Chapter 05 – Organizational Ethics and the Law
36. (p. 109) Which of the following is not a typical use of an ethics reporting mechanism?
Difficulty: Hard
37. (p. 110) Typically, ethics training is offered to:
Difficulty: Medium
38. (p. 111) Which of the following is a typical practice in an ethics audit procedure?
Chapter 05 – Organizational Ethics and the Law
39. (p. 111) The critical component in installing an effective ethics program is:
Difficulty: Medium
40. (p. 112) Recipients of the corporate ethics awards show that:
Difficulty: Medium
41. (p. 112) Ethisphere Magazine recognizes and rewards ethical leadership and business
Difficulty: Medium
42. (p. 114) One of the most widespread and potentially powerful efforts to combat bribery was
initiated by:
Chapter 05 – Organizational Ethics and the Law
5-11
43. (p. 116) Motorola and Reebok are examples of:
Difficulty: Medium
44. (p. 116-117) The Interactive Digital Software Association case exemplifies:
Difficulty: Hard
45. (p. 117) Which of the following is not an example of a white-collar crime?
Difficulty: Easy
46. (p. 95 – 97) Define ethical climate. Discuss the differences and similarities among the ethical
climates outlined in the textbook.
Chapter 05 – Organizational Ethics and the Law
47. (p. 97 – 105) Not all ethics issues in business are the same. Discuss the distinct ethical issues
across three different organizational functions. Highlight details of the professional codes of
conduct for each.
48. (p. 105 – 111) Construct a comprehensive ethics program using four of the six ethical
safeguards identified in the textbook.
49. (p. 112) How are firms honored for their efforts to create an ethical climate? Provide
examples of role model companies and what efforts they took to develop effective ethics
programs.
50. (p. 113-114) Define bribery. Explain why certain countries are less likely to participate in such
acts.
51. (p. 116 – 117) Define law. Discuss the differences between law and ethics.
52. (p. 117 – 118) Define white-collar crime. Provide three examples of such criminal acts.