Marketing professionals are responsible for ensuring that the right programs and
policies for ethical business conduct are in place.
Answer:
By permitting one individual to function as both the chief executive officer of a
company and the chairperson of its board, the board is given the benefit of leadership
from someone who is in touch with the inner workings of the organization.
Answer:
Keystroke loggers can only capture information that is not deleted.
Answer:
Preconventional is the lowest level of Lawrence Kohlberg’s stages of ethical reasoning.
Answer:
Henry Ford II recognized the fact that corporations operate in an isolated environment.
Answer:
Under the Foreign Corrupt Practices Act, facilitation payments are payments that are
acceptable (legal), provided they expedite or secure the performance of a routine
governmental action.
Answer:
The instrumental approach is a simplistic model that focuses on the internal world of
the corporation.
Answer:
Altruistic CSR type of philanthropic activity targets programs that will generate the
most positive publicity or goodwill for the organization.
Answer:
The process of ethical reasoning involves looking at the available information and then
drawing conclusions based on that information in relation to our own ethical standards.
Answer:
Applied ethics is the study of theories related to the Golden Rule.
Answer:
Title VI of the Sarbanes-Oxley Act provides additional funding and authority to the
SEC to follow through on all the new responsibilities outlined in the act.
Answer:
Distribution and marketing are line functions, supporting each of the key functional
areas.
Answer:
The highest level of ethical reasoning is the postconventional level.
Answer:
Internal whistle-blowing involves an employee bringing the organization’s misconduct
to the attention of his or her manager or supervisor and taking the complaint through
appropriate channels within the organization.
Answer:
According to Kohlberg’s framework, an individual can jump beyond the next stage of
his or her six stages.
Answer:
A society is a closed, confined unit in which people have to follow a distinct religion.
Answer:
Technological advances over the last two decades have made it possible for some
employers to read the personal e-mails that employees send from their workstations.
Answer:
The corporate governance committee of a company oversees compliance with the
company’s internal code of ethics as well as any federal and state regulations on
corporate conduct.
Answer:
Under the Federal Sentencing Guidelines for Organizations, a judge has the discretion
to impose the “death penalty” upon an organization, where the fine matches all the
organization’s assets.
Answer:
Universal ethics refers to ethical choices that offer the greatest good for the greatest
number of people.
Answer:
Smaller companies need to include their code of ethics as part of any strategic planning
exercise to make sure it is as up to date as possible.
Answer:
According to Henry Ford II, which of the following isTRUE of corporations?
A. He recognized that corporations’ actions do not impact their external environment.
B. He recognized that corporations do not operate in an isolated environment.
C. He recognized that corporations were only economic enterprises and not social
institutions.
D. He recognized that corporations have a responsibility to shareholders before
stakeholders.
Answer:
The argument over privacy at work traditionally centered on the amount of time that
employees were on-site.
Answer:
There are several standard ways to measure the achievements of the triple bottom-line
approach.
Answer:
Simple truth is one of the four basic categories of ethics and can be expressed simply as
doing the right thing.
Answer:
The Consumer Financial Protection Bureau is a government agency within the Federal
Reserve that oversees financial products and services.
Answer:
The obligation that an auditing firm has to a paying client while owing an objective,
third-party assessment of that client’s financial stability to stakeholders and potential
investors represents a potentially significant conflict of interest.
Answer:
Which of the following statements isTRUE of organizational culture?
A. Organizational culture represents only the written policies and procedures of an
organization.
B. Organizational culture includes the values, beliefs, and norms shared by all
employees of that organization.
C. Employees’ personal value system is always in tune with the ethical standards of the
organization’s operating culture.
D. Stakeholders lack interest in the ethical performance of an organization.
Answer:
Every company’s ethics policy states that awarding prizes to employees for good ethical
behavior should be avoided.
Answer:
When a company’s financial statements have been certified by an objective third party
to be “clean,” that certification is meant to be for the public’s benefit rather than the
company’s.
Answer:
Once the type of ethical conflict has been determined, there are two principles by which
it can be resolved: Volcker’s Rule and Campbell’s Rule.
Answer:
As per the labor standards of the UN Global Compact, businesses should uphold the
freedom of association and the effective recognition of the right to collective
bargaining.
Answer:
All CSR initiatives invariably generate immediate financial gains to the organization
after implementation.
Answer:
The term “globalization” has applications in commercial, economic, social, and political
environments.
Answer:
(p.166-167) Employee turnover, a long-term effect of monitoring employees, costs
organizations thousands of dollars in recruitment costs and training.
Answer:
In order to make ethical behavior sustainable, an organization requires commitment
solely from the top management.
Answer:
Which of the following approaches to corporate management is considered simplistic
because it assumes that there are no external consequences to the actions of a
corporation?
A. The shareholder approach
B. The social contract approach
C. The free-enterprise approach
D. The instrumental approach
Answer:
How can an organization move its ethical commitment to a global scale successfully?
A. By creating an ethical standard that respects the local customs of the other countries.
B. By increasing the scale of their policies and procedures to a corresponding degree.
C. By translating all their existing policies into the local language.
D. By working in the absence of standard ethical policies wherever possible.
Answer:
Which of the following is a human resource function within an organization?
A. Incorporation of customer feedback and competitive feedback
B. Maintenance of the technology in the organization
C. Marketing of the organization’s products
D. Documentation of periodic performance reviews
Answer:
Which of the following is the lowest level of moral development in Lawrence
Kohlberg’s stages of ethical reasoning?
A. Preconventional
B. Conventional
C. Postconventional
D. Social contract
Answer:
Policies that result when organizations are driven by events and/or a fear of future
events are called _____.
A. distributive policies
B. reactive policies
C. constituent policies
D. passive policies
Answer:
Which of the following functions does the code of ethics perform?
A. It clarifies an organization’s cornerstones to its employees, managers, and
stakeholders.
B. It allows the board members of an organization to be accountable only to themselves.
C. It allows chief executive officers unrestrained power in the decision-making process.
D. It works with the standards of corporate governance to limit employees’
independence.
Answer:
Which department in an organization is in charge of the orientation of the newly hired
employees?
A. Finance
B. Human resources
C. Information systems
D. Marketing
Answer:
Brendon joins Almer Inc. as the head of the research and development (R&D) team.
Which of the following functions is Brendon likely to undertake in his new role to
allow the organization capture and maintain a leading position in its market?
A. Brendon incorporates customer feedback from market research and competitive
feedback from closely monitoring the organization’s competition.
B. Brendon coordinates the recruitment, training, and development of personnel for all
aspects of the organization.
C. Brendon certifies the accuracy of the company’s financial statements.
D. Brendon maintains the technology backbone of the organizationdata transfer and
security, e-mail communications, internal and external websites, and so on.
Answer:
Which of the following is TRUE of the technology used to monitor employees at the
workplace?
A. Keystroke loggers can track employees’ location while they move through the
workplace.
B. Packet-sniffing software can intercept and archive all communications on a network.
C. Cybersquatting software can automatically monitor breaks between receiving calls.
D. “Smart” ID cards can be employed to capture every key pressed on a computer
keyboard.
Answer:
Corporate social responsibility initiatives:
A. focus more on profit maximization than customer relationships.
B. do not generate long-term financial gains to the organization.
C. do not always generate immediate financial gains to the organization.
D. focus more on financial gains for the company than legal compliance.
Answer:
Which of the following employees is an external whistle-blower?
A. Laura, who files a complaint against one of her company’s suppliers for not meeting
the requirements within the specified time.
B. Evelyn, who reports to a senior manager that her supervisor deliberately stocks
expired food products on the shelves of the super market.
C. Benjamin, who alleges to the federal government that the company he works for is
fixing prices with its competitors.
D. Ray, who discovers and ignores the fact that his company’s main competitor is doing
something unethical.
Answer:
_____ CSR refers to philanthropic approach to corporate social responsibility in which
organizations target programs that will generate the most positive publicity or goodwill
for the organization but which runs the greatest risk of being perceived as self-serving
behavior on the part of the organization.
A. Altruistic
B. Ethical
C. Economic
D. Strategic
Answer:
In what way did the “comply or else” approach differ from the “comply or explain”
approach to corporate governance?
A. Unlike “comply or else”, the “comply or explain” approach penalizes companies that
don’t conform to its regulations heavily.
B. Unlike “comply or explain”, the “comply or else” approach does not offer
corporations an easy way to avoid conforming to its operating standards.
C. Unlike “comply or explain”, the “comply or else” approach has a vague definition for
what constitutes an acceptable explanation for noncompliance.
D. Unlike “comply or else”, the “comply or explain” approach was successful in
discouraging unethical behavior in corporations.
Answer:
Over the last five decades, the issue of corporate social responsibility has advanced
from an abstract debate to a core _____ issue with clearly established legal liabilities.
A. performance-assessment
B. profit-oriented
C. internal-relations
D. profit-minimization
Answer:
Riley was granted the title of Doctor of Medicine by a medical school in Ohio. His
parents were extremely happy and content with his achievement. The worth attached to
the feelings experienced by Riley’s parents is an example of _____.
A. an unconventional value
B. an intrinsic value
C. an instrumental value
D. the Golden Rule
Answer:
Which of the following checks, when in place, reduces the risk of fraud or unethical
behavior in a corporation?
A. The participants of the governance process must be made accountable effectively.
B. The roles of the chief executive officer and the chairperson of the board must be
merged.
C. The authority of the chief executive officer should be absolute and unchallenged.
D. The company should follow the “comply or explain” approach to governance.
Answer:
_____ refers to a situation in which there is no obvious right or wrong decision, but
rather a right or right answer.
A. Status Paradox
B. Freedman’s Paradox
C. Ansoff’s Matrix
D. Ethical Dilemma
Answer:
Which of the following scenarios exemplifies instrumental value?
A. Victoria possesses half a million in her bank account.
B. Eighty-year Mathew is in good health.
C. Cathy is always happy.
D. Fernando is upset with his poor SAT scores.
Answer:
The term “_____” refers to a company’s internal website that contains information for
employee access only.
A. intranet
B. extranet
C. Ethernet
D. cybernet
Answer:
Do unto others as you would have them do unto you explains the _____.
A. golden rule
B. simple truth
C. moral justice
D. operational rule
Answer:
Which of the following is TRUE of the Foreign Corrupt Practices Act?
A. It does not distinguish between bribery and facilitation payment.
B. It does not permit the expediting of routine governmental action.
C. It is considered violated even if a bribe was unsuccessful.
D. It is applicable to all schemes unless they occur over wire communications.
Answer:
Policies that result when a company develops a clear sense of what it stands for as an
ethical organization are called _____.
A. distributive policies
B. reactive policies
C. constituent policies
D. proactive policies
Answer:
Ideally, the human resource function within an organization should be directly involved
in:
A. the documentation of disciplinary behavior and remedial training, if needed.
B. the maintenance of the technology in the organizationdata transfer and security,
e-mail communications, internal and external websites, and so on.
C. the marketing of the organization’s products.
D. the incorporation of customer feedback from market research and competitive
feedback from closely monitoring the competitors.
Answer:
_____ is a philosophical position in which ethical principles are defined by the
traditions of society, personal opinions, and the circumstances of the present moment.
A. Deontological ethics
B. Ethical consequentialism
C. Ethical relativism
D. Experientialism
Answer:
Universal ethics argues that:
A. societies can place different emphasis on different virtues.
B. ends justify the means.
C. there are certain principles that should apply to all ethical judgments.
D. everyone is committed to doing the right thing.
Answer:
Arthur and Nicole are having an argument over the creation of a code of ethics for an
organization. Arthur is of the view that it would be good for organizations to follow
advice from the Institute of Business Ethics before creating a code of ethics, while
Nicole disagrees with him. Which of the following advices would an organization
follow if it agrees with Arthur?
A. The organization would develop its own model rather than picking a well-tested
model.
B. The organization would put the code on the organization’s website rather than
sending it to all employees, suppliers, and others.
C. The organization would conduct an extensive survey involving every employee
rather than getting endorsement from the board for the code of ethics.
D. The organization would determine the topics on which employees require guidance.
Answer:
_____ whistle-blowing involves an employee bringing the organization’s misconduct to
the attention of his or her manager or supervisor.
A. External
B. Internal
C. Extrinsic
D. Integral
Answer:
Edmund has been appointed as the executive in-charge of the code of conduct for Elmer
Enterprises. He enforces the code of conduct among employees and oversees the
investigations of wrong doings in the organization. He also provides additional
guidance and support to employees. Edmund is a(n) _____.
A. chief operations officer
B. ethics officer
C. assessing officer
D. chief analytics officer
Answer:
Which of the following is TRUE of ethical misconduct?
A. It can occur even with all the checks governing the board of directors in place.
B. It cannot be influenced by the personalities of individual board members.
C. It is least likely to occur when the CEO has more authority than board members.
D. It is barred effectively by the “comply or explain” approach to corporate governance.
Answer:
Which of the following should an organization avoid doing with respect to a company’s
ethics policy?
A. Awarding prizes for ethical behavior
B. Declaring an Ethics Day, and allowing every department to share success stories
C. Communicating only to internal stakeholders
D. Recognizing employees who represent the standard of behavior to which the
company is committed
Answer:
The Cadbury report recommended:
A. adopting a Code of Best Practice to achieve high standards of corporate behavior.
B. considering the environmental and social aspects of an organization’s activities.
C. formally recognizing all the stakeholders of an organization.
D. considering a company’s impact on the larger community.
Answer:
The OECD recommends:
A. actions that consider the greatest good for developed countries.
B. disclosure on all material matters regarding the corporation.
C. not investing money and effort in developed countries.
D. not investing money and effort in less-developed countries.
Answer:
Bretton Inc. (BI), a multinational corporation, releases detailed financial statements at
the end of every quarter of a year. It is open and honest with its clients in all
communications. Also, BI clearly states the terms and conditions of the contracts to its
clients. Which of the following organizational characteristics is illustrated by BI in this
scenario?
A. Conformity
B. Transparency
C. Organizational integrity
D. Vicarious liability
Answer:
Which of the following is an effect of merging the roles of the chief executive officer
and the chairperson of the board?
A. The power of the stockholders is maximized.
B. The oversight provided by the board is increased.
C. The independence of the board is compromised.
Answer:
Which of the following perspectives of business ethics is involved in recommending
what should be happening?
A. Delineative
B. Normative
C. Formative
D. Descriptive
Answer:
What is implied by the idea of ethical relativism?
Answer:
A(n) _____ is a situation in which there is no obvious “right” or “wrong” decision, but
rather a “right” or “right” answer.
Answer:
Making ethical behavior _____ requires the involvement of every member of the
organization in committing to a formal structure to support an ongoing process of
monitoring and enforcement.
Answer:
It is impossible to track the history of _____ whistle-blowing actions since they rarely
receive any media attention.
Answer:
An ethics policy commits a company to doing the right thing for all those who are
affected by it; therefore, a company must share the message with all of its _____ both
inside and outside the company.
Answer:
Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent
behavior against the government are entitled to a maximum of _____ percent of the
amount recovered.
Answer:
The _____ is a voluntary corporate citizenship initiative endorsing 10 key principles
that focus on four main areas of concern: the environment, anticorruption, the welfare
of workers around the world, and global human rights.
Answer:
The issue of corporate social responsibility has advanced from an abstract debate to a
core _____ issue with clearly established legal liabilities in the last five decades.
Answer:
Ethical choices that offer the greatest good for the greatest number of people refer to the
theory of _____.
Answer:
Explain corporate social responsibility and the assumption on which it operates.
Answer:
The _____ is a set of principles that govern the accounting profession.
Answer:
Does a commitment to good corporate governance affect a company’s profitability?
Answer:
The OECD Guidelines for Multinational Enterprises were originally adopted as part of
the _____.
Answer:
When organizations pursue a clearly defined sense of social conscience in managing
their financial responsibilities to shareholders, their legal responsibilities to their local
community and society as a whole, and their ethical responsibilities to do the right thing
for all their stakeholders, they are following an _____ corporate social responsibility
(CSR) initiative.
Answer:
With over 2,000 companies in more than 80 countries making a voluntary commitment
to this corporate citizenship initiative, the _____ is widely recognized as the world’s
largest initiative of its kind.
Answer:
Under the Dodd-Frank Wall Street Reform and Protection Act, a whistle-blower is
entitled to between 10 and 30 percent of the monies collected if more than $_____ is
collected.
Answer:
A _____ is composed of the key functional inputs that an organization provides during
the transformation of raw materials into a delivered product or service.
Answer:
An _____ whistle-blower is an employee who discovers corporate misconduct and
brings it to the attention of his supervisor, who then follows established procedures to
address the misconduct within the organization.
Answer:
The standard of _____ is extent to which the officers of a corporation are fulfilling the
duties and responsibilities of their offices to the relevant stakeholders.
Answer: