59) Pharmacists who decline to dispense drugs that cause abortions are functioning at the
________ stage of moral development.
A) preconventional
B) conventional
C) principled
D) post-conventional
60) In which of the following stages of moral development do individuals value rights of others
and upholding absolute values and rights regardless of the majority’s opinion?
A) preconventional stage
B) conventional stage
C) principled stage
D) post-conventional stage
61) ________ represent basic convictions about what is right and wrong.
A) Dogmas
B) Values
C) Principles
D) Beliefs
62) John is offered an attractive incentive to steal sensitive information about his company’s
wealthy investment customers. Which of the following statements best reflects John’s thoughts if
he is at the preconventional level of moral development?
A) If I do go through with the act, I will be letting down my manager and coworkers badly.
B) My job is to protect the information that this company deals in and I should not violate my
duties.
C) I am liable to be criminally prosecuted for my involvement in stealing the information.
D) Going through with this act would be highly unfair not just to the client, but also to my
employers.
63) John is offered an attractive incentive to steal sensitive information about his company’s
wealthy investment customers. Which of the following statements best reflects John’s thoughts if
he is at the principled level of moral development?
A) My job is to protect the information that this company deals in and I should not be violating
my duties.
B) By stealing from another person, I will be in violation of the moral standards I’ve come to
expect of myself.
C) If my involvement is detected, my friends and family would be humiliated by my actions.
D) If I am convicted for this crime, I will surely be imprisoned and will probably never be
employed anywhere else.
64) ________ measures the strength of a person’s convictions.
A) Moral development
B) Locus of control
C) Ego strength
D) Social desirability
65) Upper management is pushing hard to increase earnings per share. If Moe yields to this
pressure despite misgivings about the use of a non-certified material in the production of
climbing equipment, he will be demonstrating ________.
A) high ego strength
B) weak ego strength
C) internal locus of control
D) external locus of control
66) Despite reassurances from R&D’s internal testing lab, Stephen believes the new material for
climbing ropes should not be used in their manufacture until it has been certified by an
independent lab. It would appear that Stephen has ________.
A) high ego strength
B) weak ego strength
C) internal locus of control
D) external locus of control
67) ________ is the degree to which people believe they control their own fate.
A) Ego strength
B) Locus of control
C) Social responsibility
D) Social obligation
68) What can be said about a manager who believes that she can work hard and will meet the
productivity goals of her organization despite unfavorable conditions?
A) She has an external locus of control.
B) She has a high ego strength.
C) She has a weak ego strength.
D) She has an internal locus of control.
69) Your university has tried to promote the establishment of shared values so that all members
will understand its beliefs. The university has established ________ management.
A) values-based
B) stakeholder-based
C) leadership-based
D) market-based
70) Which of the following organizations is best suited to promote ethical behavior in its
employees?
A) An organization that has a reward and punishment system that depends on specific goal
outcomes.
B) An organization that has formal rules and regulations in place.
C) An organization that punishes employees who do not meet goals.
D) An organization rewards success without asking how it was achieved.
71) Which of the following is true concerning the impact of organizational culture on ethical
behavior?
A) An organization with low conflict tolerance encourages ethical behavior.
B) An organization with strong culture can encourage either ethical or unethical behavior.
C) An organizational culture that is high in conflict tolerance encourages unethical behavior.
D) An organizational culture that is high in control encourages unethical behavior.
72) A student who never considers breaking into an instructor’s office to steal an accounting
exam didn’t think twice about asking a friend who took the same course from the same instructor
last semester what questions were on the exam. What does this example illustrate?
A) This example illustrates the concept of issue intensity.
B) The student involved has an internal locus of control.
C) The student involved has a strong ego strength.
D) This example illustrates the concept of value-based management.
73) A cartoon showing black smoke from a smokestack and the caption “We’re okay as long as
the wind keeps blowing” illustrates which factor of issue intensity?
A) consensus of wrong
B) greatness of harm
C) probability of harm
D) proximity to victims
74) The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________.
A) make any cash payment for deferential treatment in a foreign transaction
B) make any payment over 5 percent of total cost toward administrative overhead in foreign
transactions
C) knowingly corrupt a foreign official
D) knowingly pay a foreign clerical or administrative employee in exchange for service
75) ________ is a document created by the United Nations outlining principles for doing
business globally in the areas of human rights, labor, the environment, and anticorruption.
A) The Global Reporting Initiative
B) The Global Compact
C) The Global Convention
D) The Global Ethics
76) Freedom of association and the effective recognition of the right to collective bargaining are
the Global Compact principles in the area of ________.
A) anti-corruption
B) human rights
C) labor standards
D) union representation
77) The idea that businesses should eliminate discrimination with respect to employment and
occupation is a Global Compact principle in the area of ________.
A) anticorruption
B) human rights
C) environment
D) labor standards
78) The centerpiece of the ________ efforts is the Anti-Bribery Convention that was the first
global instrument to combat corruption in cross-border business deals.
A) Organization for Economic Co-operation and Development’s
B) Institute of Global Ethics’
C) Ethics and Compliance Officer Association’s
D) United Nations’
79) In the preconventional stage of moral development, individuals make a clear effort to define
moral principles apart from the authority of the groups to which they belong or of society in
general.
80) At the conventional level of moral development, ethical decisions rely on maintaining
expected standards and living up to the expectations of others.
81) At the principled level of moral development, an individual values the rights of others and
upholds absolute values and rights regardless of the majority’s opinion.
82) The term “values” refers to basic convictions about what is right and wrong behavior.
83) People with an internal locus of control believe that what happens to them is due to luck or
chance.
84) An organization’s structural design, its goals, performance appraisal systems, and reward
allocation procedures influence the ethical choices of employees.
85) When employees are evaluated only on outcomes, they may be pressured to do whatever is
necessary to look good on the outcomes, and not be concerned with how they got those results.
86) The Global Contract is a document created by the United Nations outlining principles for
doing business globally in the areas of human rights, labor, the environment, and anticorruption.
87) The Organization for Economic Co-Operation and Development developed a global code of
ethics.
88) List and discuss three arguments in favor of business social responsibility and five arguments
against it.
89) Identify and describe the three levels and six stages of moral development.
90) Outline the two individual characteristics that play a role in determining whether a person
behaves ethically.
91) Write a short essay on the structural variables that can influence employees’ ethical behavior.
92) Discuss the importance of an organization’s culture as a factor that determines an employee’s
ethical behavior.
93) What is the Global Compact? What are the 10 principles outlined in it?
94) A ________ is a formal statement of an organization’s primary values and the ethical rules it
expects its employees to follow.
A) mission statement
B) values statement
C) code of ethics
D) vision statement
95) How can managers identify the ethically questionable applicants even before they become
part of the workforce?
A) by performing background checks
B) by requiring letters of recommendation
C) by favoring candidates who come with a reference from existing employees
D) by including integrity testing in the selection process
96) The primary debate about ethics training programs is whether ________.
A) ethics can be taught
B) ethics training is sufficient
C) the programs cause a regression in a person’s moral development
D) the programs decrease awareness of ethical issues in business
97) Which of the following options is most likely to have the greatest impact in encouraging
employees to behave ethically?
A) Select only ethical employees.
B) Provide a written code of ethics and decision rules.
C) Model ethical behavior beginning with the organization’s top leaders.
D) Implement a comprehensive ethical program.
98) Marveline Company brought in help from outside to evaluate decisions and management
practices in relation to the organization’s code of ethics. These evaluations are called ________.
A) social responsibility audits
B) social protective audits
C) independent social audits
D) independent ethics audits
99) In a short essay, discuss some of the ways in which managers can encourage ethical behavior
and create a comprehensive ethics program.
100) Employees who raise ethical concerns or issues in an organization are known as ________.
A) employee-volunteers
B) whistle-blowers
C) entrepreneurs
D) philanthropist
101) The ________ Act offers some legal protection to whistle-blowers. It has a provision
wherein any manager who retaliates against an employee for reporting violations faces a stiff
penalty of a 10-year jail sentence.
A) Sarbanes-Oxley
B) Glass-Steagall
C) Taft-Hartley
D) Landrum-Griffin
102) A ________ is an individual or organization who seeks out opportunities to improve society
by using practical, innovative, and sustainable approaches.
A) sustainability contractor
B) social entrepreneur
C) philanthropist
D) whistle-blower
103) If Google asks 25 members of its executive team to spend a full day during their annual
team-building retreat building a house in Las Vegas with Habitat for Humanity, the executives
would be engaging in employee ________.
A) volunteering efforts
B) entrepreneuring efforts
C) whistle-blowing efforts
D) administering efforts
104) Employees who raise ethical concerns or issues to others inside or outside the organization
are called social activists.
105) Under the Sarbanes-Oxley Act, whistle-blowers in the United States who report suspected
corporate violations of laws now have protection from reprisals and retaliation.
106) Who are whistle-blowers? What can managers do to protect them?