The practices of making a company’s operations “carbon neutral” was initially
developed as a solution for those industries, such as airlines or automobile companies,
that face significant challenges in reducing their emissions.
Answer:
The stakeholders of a company include its customers, its vendor partners, state and
local entities, and the community in which it conducts its business operations.
Answer:
According to the Federal Sentencing Guidelines for Organizations, businesses cannot
be held liable for the criminal acts of their employees and agents.
Answer:
Tracking the history of internal whistle-blowing is easier than tracking the history of
external whistle-blowing.
Answer:
Shareholders lack interest in the ethical performance of an organization.
Answer:
Running a small company does not require a constant evaluation of risk-versus-reward
scenarios.
Answer:
Globalization benefits corporations from economically advanced nations because
access to resources in developing nations enables lower production costs that equate to
lower prices and higher income standards for their customers.
Answer:
Nonprofit organizations do not face problems with unethical behavior.
Answer:
The manufacturing process is responsible for ensuring that the product reaches the
hands of a satisfied customer.
Answer:
Having all the effective mechanisms listed on the corporate governance checklist in
place ensures completely effective corporate governance.
Answer:
Not every stakeholder will be relevant in every business situation.
Answer:
A situation in which one relationship or obligation places the individual or firm in direct
conflict with an existing relationship or obligation refers to a conflict of interest.
Answer:
The 2002 Sarbanes-Oxley Act introduced greater accountability for chief executive
officers and boards of directors in signing off on the financial performance records of
the organizations they represent.
Answer:
The major ethical dilemma of the 2000s is the employee versus management mentality.
Answer:
Cyberliability applies the existing legal concept of liability to the field of computers.
Answer:
According to Adam Moore, consent given by employees with little choice is referred to
as thick consent.
Answer:
An ethical dilemma is a situation in which there is no obvious right or wrong decision,
but rather a right or right answer.
Answer:
The Foreign Corrupt Practices Act was introduced to more effectively control bribery
and other less obvious forms of payment to foreign officials and politicians by
American publicly traded companies as they pursued international growth.
Answer:
If there is evidence that the employee is carrying out an individual vendetta against the
company, the legitimacy of his or her whistle-blowing should be questioned.
Answer:
Individuals acquire their personal moral standards in the same way that they learn the
alphabet.
Answer:
Which of the following isTRUE of corporate governance?
A. It plays no role in enforcing ethical behavior in the workplace.
B. It is the process by which the government nationalizes corporations.
C. It is the system by which business corporations are directed and controlled.
D. It is the entity responsible for the execution of a company’s CSR policy.
Answer:
According to the ERC, an organization’s cornerstones include its missions, values, and
principles.
Answer:
Sustainable ethics in a culture are those that persist within the operational policies of
the organization long after the latest public scandal or the latest management buzzword.
Answer:
Information, once digitized, cannot be sent over a fiber-optic cable.
Answer:
A code of ethics is a guide for employees that covers every possible event.
Answer:
Advances in technology make it harder for employers to assign employees work outside
the workplace.
Answer:
Strategic CSR runs the greatest risk of being perceived as self-serving behavior on the
part of the organization.
Answer:
A qui tam lawsuit is a lawsuit brought on behalf of the federal government by a
whistle-blower under the False Claims Act of 1863.
Answer:
The advocates of ethical business conduct argue that HR should be the sole creator of
any corporate code of ethics.
Answer:
The accounting profession is governed by a set of laws and established legal
precedents.
Answer:
The European Economic Community is an example of a regional trade bloc.
Answer:
Corporations merely experimenting with corporate social responsibility initiatives run
the risk of creating adverse results as the public sees little more than a token action that
is concerned with publicity rather than community.
Answer:
The quality by which a value is a good thing in itself and is pursued for its own sake,
whether anything comes from that pursuit or not is called a(n) _____.
A. traditional norm
B. instrumental value
C. extrinsic norm
D. intrinsic value
Answer:
(p.119-120) Which of the following is TRUE of the effective compliance program
prescribed by Federal Sentencing Guidelines for Organizations?
A. A high-level official (such as a corporate ethics officer) must be in charge of and
accountable for the compliance program.
B. Individuals should be granted excessive discretionary authority, as that would reduce
the risk of criminal conduct.
C. Criminal offenses must generate an appropriate response, analysis, and corrective
action, but not on the basis of suspicion.
D. An organization must be strict to address criminal misconduct in a consistent manner
but should avoid penalizing employees for it.
Answer:
Which of the following is TRUE of cyberliability?
A. It extends to any form of harassment that reaches an employee via e-mail.
B. It has no negative repercussions for the employer or the company involved.
C. It only applies to crimes that involve the patrons of commercial Internet cafés.
D. It does not cover categories like racial discrimination, defamation, and libel.
Answer:
Which of the following concepts is illustrated by a company which, when doing
business abroad, takes advantage of the local customs to justify an action that is illegal
in its home country?
A. Ethical relativism
B. Experientialism
C. Moral universalism
D. Existentialism
Answer:
_____ is the application of standards of moral behavior to business situations.
A. Business structuralism
B. Business contingence
C. Business ethics
D. Business sourcing
Answer:
According to Adam Moore, the distinction between the two types of consent to
employee-monitoringthin and thickis created by _____.
A. the state of the job market
B. cybersquatting
C. the organization’s structure
D. wiretapping
Answer:
Alison Anderson, the CEO of Anderson Inc., laid the foundation for an apt professional
behavior in her workplace. She was honest, aware, and sensitive and is considered a
role model by young entrepreneurs. Which of the following basic categories of ethics is
depicted in this scenario?
A. Simple truth
B. Rules of differentiation
C. Personal integrity
D. Rules of appropriate behavior for a community or society
Answer:
Utilitarianism refers to:
A. ethical choices that consider the greatest good for the greatest number of people.
B. general standards of business practice to which all countries are obliged to adhere.
C. general standards of business practice to which all corporations are obliged to
adhere.
D. ethical choices that distinguish “right” from “wrong” on the basis of policies set by
law.
Answer:
The problem with a utilitarian approach to ethics is:
A. the differing attitudes of various societies to the Golden Rule.
B. the idea that the ends justify the means.
C. that societies can place different emphasis on different virtues.
D. that not everyone is committed to doing the right thing.
Answer:
Michelle receives formal notification from her company, stating that it will be
monitoring all her e-mail and web activity. The notification also indicates that her
continued employment with the company will depend on her agreement to abide by its
monitoring policy. Because jobs are hard to come by, Michelle accepts. She has given
the company _____ consent.
A. thick
B. implicit
C. thin
D. tertiary
Answer:
Which of the following changes has occurred in the business environment over the last
five decades?
A. The code of ethics has moved from performance-measurement documents to
cosmetic public relations documents.
B. Senior executives of a company are no longer required to be accountable to the
board of directors and their stakeholders.
C. Corporate ethics has moved from the organizational mainstream into the domain of
legal and human resource departments.
D. Corporate social responsibility has advanced from an abstract debate to a core
performance-assessment issue.
Answer:
The difference between old social contract approach to corporate management and
modern social contract approach is that the:
A. old social contract emphasizes advancement in the quality of life, whereas the
modern social contract approach emphasizes economic advancement.
B. old social contract approach argues that there is an obligation for the corporation to
meet the demands of the society, whereas the modern social contract approach argues a
company’s obligation is only to its shareholders.
C. modern social contract approach focuses on the delivery of quarterly earnings
numbers, short-term perspective, whereas the old social contract focuses on maintaining
a longer-term perspective.
D. modern social contract approach aims to the meet the demands of all stakeholders
and the shareholders, whereas the old social contract approach was based only on
economic growth.
Answer:
Which of the following approaches considers a company’s social, economic, and
environmental impact rather than focusing solely on its financial impact?
A. Just-in-time
B. Double bottom line
C. Social contract
D. Triple bottom line
Answer:
The certification of an organization’s financial statements or books, by an impartial
third-party professional, as being accurate is offered by the _____.
A. auditing function
B. compliance function
C. accounting function
D. financial transactions function
Answer:
Prior to 2002, legal protection for whistle-blowers:
A. safeguarded federal employees from retaliatory behavior aimed at them.
B. encouraged the moral behavior of employees who felt compelled to speak out.
C. safeguarded only non-federal employees from corporate retaliatory behavior.
D. did not offer whistle-blowers any monetary rewards for speaking out.
Answer:
Which of the following refers to the actions that are taken out of duty and obligation to
a purely moral ideal, rather than based on the needs of the situation, since the principles
are seen to apply to everyone, everywhere, and all the time?
A. Moral obligation theory
B. Virtue ethics
C. Freudian theory
D. Universal ethics
Answer:
Corporate social responsibility assumes that the corporation:
A. is operating in a competitive environment.
B. is committed to follow a retrenchment strategy exclusively.
C. is permitted to ignore federal and state legal obligations.
D. is exclusively committed to a moderate growth strategy.
Answer:
Which of the following is one of the four basic categories of ethics?
A. Personal integrity
B. Psychological behaviorism
C. Rules of differentiation
D. Stretched truth
Answer:
Walter Warburg & Co., a new investment banking firm, has dismissed the idea of
establishing a code of ethics for its workplace. Which of the following is the most likely
consequence?
A. It can now clearly state policies for behavior in specific situations.
B. It can capture distinctly what the organization understands ethical behavior to mean.
C. It will not be allowed to operate, as having a written code of ethics is mandatory in
every organization.
D. It cannot document punishments for the violation of ethical policies.
Answer:
The basic assumption of ethical theory is that:
A. a person as an individual or community is in control of all the factors that influence
the choices they make.
B. everyone is committed to doing the right thing.
C. individuals share similar standards in a community.
D. an individual’s pursuit of an ethical ideal should match others’ ethical ideals to avoid
trouble.
Answer:
Business ethics can be approached from two different perspectives. The _____
perspective evaluates the degree to which the observed customs, attitudes, and rules can
be considered ethical.
A. descriptive
B. prohibitive
C. normative
D. preventative
Answer:
Which of the following is TRUE of facilitation payments under the Foreign Corrupt
Practices Act (FCPA)?
A. The FCPA does not recognize them formally or differentiate between them and
bribes.
B. The FCPA permits them if they secure exclusive contracts from foreign officials.
C. The FCPA finds them acceptable if they expedite a routine governmental action.
D. The FCPA finds them acceptable if they involve securing new businesses overseas.
Answer:
Which of the following is an advice from the Institute of Business Ethics for creating a
code of ethics?
A. Get endorsement from the chairperson and the board.
B. Put the code on the organizations website rather than sending it to all employees,
suppliers, and others.
C. Do not pick a well-tested model.
D. Do not try out the code first as no piloting is required for a company’s code of
conduct.
Answer:
If an employee leaves a company, the _____ department should host an exit interview
to ensure that anything the organization can learn from the employee’s departure is fed
back into the company’s strategic plan for future growth and development.
A. research and development
B. marketing
C. finance
D. human resource
Answer:
According to Joseph F. Keefe, _____ is a major trend behind the corporate social
responsibility phenomenon.
A. transparency
B. nationalization
C. failure of the private sector
D. failure of the industrial sector
Answer:
Which of the following actions does the Computer Ethics Institute consider ethical?
A. Making one’s password easily available to coworkers
B. Considering the social consequences of one’s work
C. Using corporate software for private use
D. Using pirated software for commercial purposes
Answer:
Which of the following is TRUE of the OECD guidelines for multinational enterprises?
A. The guidelines act in opposition to the UN Global Compact.
B. The guidelines apply solely to local and regional trade blocs.
C. The guidelines carry no criminal or civil enforcement.
D. The guidelines are legally binding for American companies.
Answer:
Arthur Dobrin identified 15 questions that one should consider when resolving an
ethical dilemma.
Answer:
Which of the following is an example of simple truth?
A. Ronald lives a lifeTRUE to his moral standard and is considered the ideal son by his
parents.
B. Jonathan’s personal value system helps him to stay away from simple conflicts.
C. Amelia believes that murder is wrong, a view supported by most people.
D. Cathy respects her parents and is always keen on helping her neighbors.
Answer:
The _____ principle for resolving an ethical dilemma considers which decision would
provide the greatest good for the greatest number of people.
A. ends-based
B. rules-based
C. Golden Rule
D. Volcker’s Rule
Answer:
The “Office of the Whistleblower” was created by the _____.
A. Merit Systems Protection Commission
B. Commodity Futures Trading Commission
C. Securities and Exchange Commission
D. Consumer Product Safety Commission
Answer:
For creating a code of ethics, the Institute of Business Ethics advises companies:
A. not to pick a well-tested model.
B. to put the code on the organization’s website rather than sending it to all employees,
suppliers, and others.
C. to introduce practical examples of the code in all company internal (and external)
training programs.
D. not to try out the code first as no piloting is required.
Answer:
Discuss what each department of an organization can do to support its published code
of ethics.
Answer:
Discuss the difference between ethical, altruistic, and strategic types of corporate social
responsibility (CSR).
Answer:
What function does an organization’s code of ethics perform?
Answer:
The argument in favor of merging the roles of the CEO and chairperson is one of
_____.
Answer:
INSEAD, the European business school, offers the _____ principles of corporate
governance.
Answer:
_____ members of the board of directors hold management positions in a company.
Answer:
What is a whistle-blower hotline? How can an organization ensure that it is effective?
Answer:
The 2002 _____ has introduced greater accountability for chief executive officers and
boards of directors in signing off on the financial performance records of the
organizations they represent.
Answer:
_____ of the Sarbanes-Oxley Act focuses on issues related to corporate tax returns.
Answer:
Originally adopted as part of the larger Declaration on International Investments and
Multinational Enterprises, the _____ promote principles and standards of behavior for
corporations.
Answer:
Stealing is wrong, but stealing food for a starving child would reflect a(n) _____.
Answer:
Differentiate between reactive and proactive ethical policies.
Answer:
_____ refers to the actions of an organization that target toward achieving a social
benefit over and above maximizing profits for its shareholders and meeting all its legal
obligations.
Answer:
Business ethics can be approached from two different perspectives. The _____
perspective is a summation of the customs, attitudes, and rules that are observed within
a business.
Answer:
_____ are facilitating payments to foreign officials in order to expedite or secure the
performance of a routine governmental action.
Answer:
A(n) _____ corporation is one that sells products and services across multiple national
borders.
Answer:
_____ is the application of ethical standards to business behavior.
Answer: