It is argued that the actions of whistle-blowers are not always motivated by their
integrity, but by money or by their egos.
Answer:
The standard of corporate governance appears to be at the highest in recent business
history.
Answer:
When jobs are plentiful and an employee would have no difficulty finding another
position, then the consent given to the monitoring policy of a company is referred to as
thin consent.
Answer:
Telecommuting does not allow employees any degree of flexibility in terms of the
location from which they work.
Answer:
Grease payments are illegal under the Foreign Corrupt Practices Act.
Answer:
Multinational corporations are also known as intranational corporations.
Answer:
Which of the following isTRUE of stakeholders?
A. Not every stakeholder is relevant in every business situation.
B. The stakeholders of an organization are not affected by its unethical behavior.
C. The cancellation of an organization’s dividends has no impact upon stakeholders.
D. Creditors are not considered the stakeholders of an organization.
Answer:
An employee can anonymously alert a company of suspected misconduct within the
organization using the whistle-blower hotline.
Answer:
Whistle-blowers are often severely criticized since they have in some way breached the
trust and loyalty they owe to their employers.
Answer:
Layoffs reduce corporation costs and only affects the laid-off employees.
Answer:
The Foreign Corrupt Practices Act focuses on disclosure, which requires corporations to
fully reveal any and all transactions conducted with foreign officials and politicians, in
line with the Securities and Exchange Commission provisions.
Answer:
The Whistleblower Protection Act of 1989 is also known as the Corporate and Criminal
Fraud Accountability Act.
Answer:
The interests of creditors in an organization focus specifically on the employment of
local residents and the safety of the work environment.
Answer:
The notion that anything which isn’t specifically labeled as wrong must be OK
encourages ethical actions in employees prone to unethical behavior.
Answer:
If there is evidence that the employee is motivated by the opportunity for financial gain,
the legitimacy of his or her whistle-blowing should be questioned.
Answer:
According to Richard DeGeorge’s guidelines for organizations doing business in other
countries, multinationals are responsible for redesigning the transfer of hazardous
technologies so that such technologies can be safely administered in host countries.
Answer:
Altruistic CSR represents a type of corporate social responsibility (CSR) in which
organizations pursue a clearly defined sense of social conscience in managing their
financial responsibilities to shareholders, their legal responsibilities, and their ethical
responsibilities to do the right thing for all their stakeholders.
Answer:
Corporate citizenship is an element of corporate social responsibility.
Answer:
An oxymoron is the combination of two facts that mirror and support each other.
Answer:
The problem with virtue ethics is that societies can place different emphasis on different
virtues.
Answer:
The Federal Sentencing Guidelines for Organizations table factors in both the nature of
the crime and the amount of the loss suffered by the victim.
Answer:
The growth of multinational corporations, as a global phenomenon, has raised no
ethical issues.
Answer:
The problem with universal ethics is the idea that the ends justify the means.
Answer:
Ethical CSR is the purest or most legitimate type of CSR.
Answer:
The interests of wholesalers in an organization include accurate deliveries of quality
products on time and at a reasonable cost.
Answer:
International ethics centers that serve the needs of global businesses were formed in the
1960s.
Answer:
Employers feel it necessary to monitor employees at the workplace because they have
an obligation to their stakeholders to operate as efficiently as possible.
Answer:
The principles and standards of organizational behavior set down by the UN Global
Compact cover more issues than the OECD Guidelines for Multinational Enterprises.
Answer:
HR must ensure that the leadership selection and development processes include an
ethics component.
Answer:
Utilizing the rules-based principle to resolve an ethical dilemma necessitates focusing
exclusively on which decision would provide the greatest good for the greatest number
of people.
Answer:
Vicarious liability is a legal concept that means a party may be held responsible for
injury or damage only if he or she were actively involved in an incident.
Answer:
Finance is a key function in a value chain.
Answer:
Parties charged with vicarious liability are never in a supervisory role over the person or
parties personally responsible for the injury or damage.
Answer:
As a message to its stakeholders, an organization’s code of ethics should represent a
clear corporate commitment to the highest standards of ethical behavior.
Answer:
The policy of “doing well by doing good,” refers to the belief that doing good for the
company is just good business.
Answer:
What sort of protection or encouragement were whistle-blowers offered before the
Whistleblowers Protection Act of 1989 was enacted?
Answer:
Unethical corporate behavior could impact a community negatively if it were to lead to
an economic decline.
Answer:
Which of the following is TRUE of the Sarbanes-Oxley Act?
A. It is also known as “Lincoln’s Law.”
B. It discouraged the act of corporate whistle-blowing.
C. It did not protect employees from retaliatory behavior aimed at them.
D. It offered protection to both federal and corporate employees.
Answer:
Which of the following is TRUE of parties charged with vicarious liability?
A. They are held responsible for the actions of their subordinates.
B. They are seldom in supervisory or managerial roles.
C. They only comprise the individuals directly responsible for the damage.
D. They only comprise individuals who were the recipients of the damage.
Answer:
_____ describes the characteristic of public commitment to the highest level of
professional standards and then sticking to that commitment.
A. Organizational integrity
B. Vicarious liability
C. Corporate governance
D. Ethical relativism
Answer:
Which of the following statements accurately explains the basic categories of ethics?
A. A question of someone’s personal character, his or her integrity, is not one of the
basic categories of ethics.
B. Personal integrity, a category of ethics, looks at ethics from an external rather than
an internal viewpoint.
C. Simple truth is an assumption of the four basic categories of ethics.
D. Rules of appropriate behavior for a community or society is only applicable to
closed societies.
Answer:
Which of the following statements is TRUE of an ethics officer?
A. An ethics officer must be hired from outside the organization.
B. The chief responsibility of an ethics officer is to compare the code of ethics between
different companies.
C. The role of an ethics officer is never developed as a separate department in an
organization.
D. An ethics officer monitors the ethical performance of the organization both internally
and externally.
Answer:
The OECD Guidelines believes that less-developed countries should:
A. not be considered a lucrative market.
B. allow their natural resources to be tapped into, freely.
C. benefit from a corporation’s advanced technology.
D. avoid trading with developed nations.
Answer:
In internal whistle-blowing, an employee who discovers corporate misconduct brings it
to the attention of:
A. the jury.
B. the media.
C. law enforcement agencies.
D. a manager or supervisor.
Answer:
The _____ of a company is an operating committee responsible for determining the
salaries, bonuses, and perks for the CEO and other senior executives.
A. credit committee
B. business sales unit
C. compensation committee
D. quality assurance unit
Answer:
The maximum penalty that a judge can impose upon an organization for violating the
Federal Sentencing Guidelines for Organizations is a penalty worth:
A. a tenth of the organization’s assets.
B. a quarter of the organization’s assets.
C. half of the organization’s assets.
D. the full amount of the organization’s assets.
Answer:
Prior to the passing of the Foreign Corrupt Practices Act, unethical corporate behavior
was regulated by the _____, which required full disclosure of funds that were taken out
of or brought into the United States.
A. Dodd-Frank Wall Street Reform and Consumer Protection Act
B. Consumer Protection Act
C. Bank Secrecy Act
D. Securities and Exchange Commission
Answer:
Which of the following is a characteristic of demanding creditors?
A. demanding the firm to pay loans on time
B. demanding the firm to introduce new and better products and services at lower prices
C. demanding the firm to pay more taxes
D. demanding the firm’s stock prices to rise every quarter
Answer:
What did the King I and King II reports have in common?
A. They both limited their scope to the financial and regulatory accountability of
corporations.
B. They both advocated following the traditional, single bottom line of profitability.
C. They both rejected the triple bottom line suggested by the Cadbury approach.
D. They both incorporated a code of corporate practices that looked beyond
corporations.
Answer:
According to the Ethics and Compliance Officers Association survey, which of the
following is ranked lowest in the category of the main responsibilities of an ethics
officer?
A. Training design
B. Organizationwide communications
C. Oversight of hotline/guideline/internal reporting
D. Conducting investigations of wrongdoing
Answer:
Which of the following is TRUE of thick consent?
A. It is given when employees have little or no choice.
B. It is not affected by the state of the job market.
C. It signals that the consent of employees was forced.
D. It is given when employees have realistic job alternatives.
Answer:
Title XI of the Sarbanes-Oxley Act focuses on:
A. corporate social responsibility.
B. enhanced financial disclosures.
C. corporate fraud and accountability.
D. auditor independence.
Answer:
The field of _____ is the study of how people try to live their lives according to a
standard of “right” or “wrong” behavior.
A. metaphilosophy
B. ethics
C. aesthetics
D. epistemology
Answer:
_____ is one of the four key areas of concern upon which the UN Global Compact
focuses.
A. Domestic-abuse
B. Foreign Exchange
C. Anticorruption
D. Over-population
Answer:
Because of the changes that telecommuting has introduced into the work environment:
A. employers find it easy to tabulate the time employees spend working.
B. employees are unable to take care of personal needs during work hours.
C. the availability of employees is being defined by their accessibility.
D. the distinction between personal life and work life is clearly perceived.
Answer:
_____ refers to a situation in which there is no obvious “right” or “wrong” decision, but
rather a “right” or “right” answer.
A. Less evil principle
B. Logical inference
C. Ethical dilemma
D. Defeasible reasoning
Answer:
Corporations that experiment with corporate social responsibility (CSR) initiatives run
the risk of creating adverse results as:
A. the employees feel that they are working for an insincere, uncaring organization.
B. the public sector is considered the best or most appropriate venue for addressing a
growing list of social problems.
C. the customers feel ignored since the corporation focuses solely on helping the
community.
D. the organization sees the benefit of CSR but does not feel the need to develop the
concept.
Answer:
Susan and Jessica are arguing over the importance of Arthur Dobrin’s eight questions to
be considered when resolving an ethical dilemma. Susan is of the view that these
questions are apt and relevant. Jessica does not agree with Susan’s view. Which of the
following would weaken Susan’s argument?
A. Arthur Dobrin’s eight questions are based on the assumption that feelings are not
taken into consideration.
B. Arthur Dobrin’s eight questions are based on the fact that alternative resolutions for
one to select from are always present.
C. Arthur Dobrin’s eight questions are based on the fact that there is not enough
information available for one to answer the questions.
D. Arthur Dobrin’s eight questions are based on the assumption that there is sufficient
time for the degree of contemplation that such questions require.
Answer:
The _____ is the principle for resolving an ethical dilemma that considers doing unto
others as you would have them do unto you.
A. Golden Rule
B. formative perspective
C. oscillatory approach
D. Egocentric Rule
Answer:
The audience for the code of ethics would be the _____ of the organization.
A. moderators
B. stakeholders
C. mediators
D. statutory auditors
Answer:
Which of the following is TRUE of managers in an organization with good corporate
governance?
A. Managers must be nominated by the compensation committee.
B. Managers should fulfill a fiduciary responsibility to the owners.
C. Managers must consider only the single bottom line of profitability.
D. Managers should follow an exclusive, rather than an internal, approach.
Answer:
Charlotte works at an advertising agency. She is usually late in responding to e-mails.
She realizes this after an important project, she was responsible for, was delayed due to
similar behavior from her manager. Now, Charlotte replies to her e-mails on time.
Which of the following would indicate that this change in Charlotte’s behavior was a
result of adopting the Golden rule?
A. Charlotte empathized with others when she faced a similar situation.
B. Charlotte was afraid that her manager would give her a low rating.
C. Charlotte wanted to impress her colleagues.
D. Charlotte had no friends and was lonely.
Answer:
The code of ethics is intended to:
A. prevent managers and employees from making everyday decisions unsupervised.
B. guide managers and employees in making sound decisions and choices every day.
C. liberate the chief executive officer from any constraints placed by the board of
directors.
D. decrease the independence of the board of directors and reduce the power of
shareholders.
Answer:
Which of the following illustrates a firm having a triple bottom-line (3BL) approach?
A. Adbel Inc. issues free meal coupon to its employees.
B. Brenerz Enterprises reduces its industrial waste by half and provides cab service for
its employees.
C. Brink-T Technologies donates ten percent of its profit to charity, reduces toxic
emission from its plants, and has ten percent increase in financial turnovers.
D. Amelia and Lewis Enterprises provides longer maternity leaves and medical
insurances for all their employees.
Answer:
The UN Global Compact:
A. ignores issues of environmental concern.
B. is the largest initiative of its kind in the world.
C. applies only to organizations from developed nations.
D. is a regulatory instrument that polices organizations.
Answer:
Which of the following best illustrates the social contract approach to corporate
management?
A. Indibean Inc. promotes extensive work shifts.
B. Armac Inc. asks its employees to work on holidays to increase profits.
C. At Clark Enterprises there have been substantial layoffs to control costs.
D. At Redder Enterprises, employees’ wages have grown at a higher rate than inflation.
Answer:
A situation where one relationship or obligation places the individual or firm in direct
dispute with an existing relationship or obligation defines a _____.
A. disconfirmed expectancy
B. conflict of interest
C. ethical ambiguity
D. ethical dilemma
Answer:
Codes of ethics have matured from cosmetic public relations documents into _____
documents that an increasing number of organizations are now committing to share
with all their stakeholders.
Answer:
For the R&D team, the real ethical dilemmas come when decisions are made about
_____.
Answer:
_____ is a characteristic of an organization that maintains open and honest
communications with all its stakeholders.
Answer:
_____ refers to ethical choices that offer the greatest good for the greatest number of
people.
Answer:
_____ refers to the gray area in which ethical principles are defined according by the
traditions of society, personal opinions, and the circumstances of the present moment.
Answer:
_____ are payments of money or anything else of value to influence or induce any
foreign official to act in a manner that would be in violation of his or her lawful duty.
Answer:
_____ refers to ethical behavior that persists long after the latest public scandal or the
latest management buzzword.
Answer:
Discuss conflict of interest with an example.
Answer:
What are the three principles available to resolve an ethical dilemma? Are they always
successful?
Answer:
Differentiate between less-developed and developed nations.
Answer:
Under the _____ Act of 2002, congress took an integrated approach to the matter of
whistle-blowing by prohibiting retaliation against whistle-blowers and encouraging the
act of whistle-blowing.
Answer:
What are the perspectives from which business ethics can be approached?
Answer:
_____ describes the characteristic of publicly committing to the highest level of
professional standards and then sticking to that commitment.
Answer:
A _____ is a lawsuit brought on behalf of the federal government by a whistle-blower
under the False Claims Act of 1863.
Answer:
_____ is the system that directs and controls business corporations.
Answer:
_____ refers to the expansion of international trade to a point where national markets
are overtaken by regional trade blocs, leading eventually to a global marketplace.
Answer:
The _____ was created in November 2006, when the Deutsche Bank teamed up with
more than a dozen investment banks and five carbon-trading organizations in Europe to
promote the standardization of carbon trading on a global scale.
Answer:
Utilizing the _____ principle to resolve an ethical dilemma involves considering the
decision that would provide the greatest good for the greatest number of people.
Answer: