The real test of any company’s ethics policy comes when one of its employees is
presented with a potentially unethical situation.
Answer:
In its mission to promote ethical organizational behavior and increase the costs of
unethical behavior, the Federal Sentencing Guidelines for Organizations establishes a
definition of an organization that is so broad as to prompt the assessment that “no
business enterprise is exempt.”
Answer:
Permitting one individual to function as both the chief executive officer of a company
and the chairperson of its board has no impact upon the power of the stockholders.
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If an employee’s personal value system prompts him or her to speak up about the
misconduct of the organization he or she works for, the employee takes on the role of a
whistle-blower.
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The corporate governance committee is staffed by members of the board of directors
and specialists.
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The Cadbury report argued for a guideline of “comply or else,” which required
companies to abide by a set of operating standards or face stiff financial penalties.
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A whistle-blower is an individual who discovers corporate misconduct and chooses not
to do anything about it.
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Kohlberg stated that it would be impossible for a person to comprehend the moral
issues and dilemmas at a level so far beyond his or her life experience and education.
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A company should avoid communicating its ethics policy to external stakeholders.
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The UN Global Compact represents a commitment on the part of its members to
promote good corporate citizenship.
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The Sarbanes-Oxley Act is a legislative response to the corporate accounting scandals
of the early 2000s that covers the financial management of businesses.
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The human resource function within an organization seldom needs to be involved in the
relationship between the company and the employee.
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Apart from achieving a social benefit over and above maximizing profits for its
shareholders, corporate social responsibility also requires an organization to meet all its
legal obligations.
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If an employee leaves a company, the human resource department should host an exit
interview to ensure that anything that the organization can learn from the employee’s
departure is fed back into the company’s strategic plan for future growth and
development.
Answer:
The King I report failed to recognize the involvement of all the corporation’s
stakeholders in the efficient and appropriate operation of the organization.
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The belief that an activity is safe because it will never be found out or publicized is one
of the commonly held rationalizations, identified by Saul Gellerman, which can lead to
unethical behavior.
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The Financial Stability Oversight Council is led by the Treasury secretary and is made
up of top financial regulators.
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Unethical corporate behavior does not impact a company’s stakeholders.
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From an employer’s perspective, monitoring an employee’s computer activity at the
workplace is necessary to map their productivity.
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Studies show that a commitment to good corporate governance makes a company both
more attractive to investors and lenders, and more profitable.
Answer:
Human resource management supports each of the key functional areas in a value
chain.
Answer:
The terms morals is applied to a society while the term values is used when referring to
an individual.
Answer:
Emissions credits are fixed for every market, and they cannot be bought or sold.
Answer:
The financial strength of the Western nations has made developing nations more
amenable to accepting general standards of business practice.
Answer:
Whistle-blowers, throughout history, have always been granted legal protection against
retaliatory behavior.
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Instrumental approach to corporate management is the perspective that a corporation
has obligation to society over and above the expectations of its shareholders.
Answer:
The continued growth of technology will present new situations for ethical dilemmas,
thus a company’s code of ethics needs to be rewritten on a regular basis.
Answer:
The King Report on Corporate Governance incorporated a code of corporate practices
and conduct that looked beyond the corporation itself, taking into account its impact on
the larger community.
Answer:
A company’s code of ethics comprises written standards of moral behavior that are
designed to guide managers and employees in making the decisions and choices they
face every day.
Answer:
For a whistle-blower hotline to work, trust must be established between employees and
their employer.
Answer:
Typically, the compensation package of the CEO and other senior executives consists of
a base salary, performance bonus, stock options, and other perks.
Answer:
The Federal Sentencing Guidelines for Organizations:
A. holds organizations liable only for fraudulent activities in foreign markets.
B. holds businesses liable for the criminal acts of their employees and agents.
C. decreases the cost of unethical behavior.
D. covers very few business crimes.
Answer:
Which of the following is a routine governmental action?
A. Allocating funds for companies to make facilitation payments overseas.
B. Providing legal immunity for the employees of foreign companies.
C. Providing police protection for the transit of goods across a country.
D. Accepting payment from a foreign company in return for an exclusive contract.
Answer:
A(n) _____ is defined as a central guide that supports day-to-day decision making at
work.
A. business matrix
B. code of ethics
C. internal channel
D. external channel
Answer:
According to the Ethics and Compliance Officers Association, which of the following is
most likely the chief responsibility of an ethics officer?
A. Establishing a loyal customer base
B. Conducting surveys with customers to improve customer service
C. Oversight of hotline/guideline/internal reporting
D. Maintaining the information systems in the organization
Answer:
_____ refers to a concept of living your life according to a commitment to the
achievement of a clear ideal.
A. Universal ethics
B. The Golden rule
C. Utilitarianism
D. Virtue ethics
Answer:
The _____ of 1989 guaranteed the anonymity of federal employees, but not that of
other employees.
A. Sarbanes-Oxley Act
B. Whistleblower Protection Act
C. federal False Claims Act
D. Comstock Act
Answer:
Which of the following is TRUE of keystroke loggers?
A. They can record typed-in information even if it is deleted.
B. They can videotape employees in public areas.
C. They can analyze and archive calls made on personal phones.
D. They can track the movement of employees in the workplace.
Answer:
The standard of corporate governance:
A. allows select corporations to monitor the ethical conduct of government officials.
B. plays no role in regulating the ethical behavior of senior executives in an
organization.
C. ensures that officers of an organization fulfill their obligations to their stakeholders.
D. plays no role in regulating the ethical behavior of employees in an organization.
Answer:
After hiring an ethics officer, which of the following is the immediate next stage in
making ethical behavior sustainable for a company?
A. Monitoring the ethical behavior of employees continuously as the company grows
B. Establishing a code of ethics
C. Rewarding ethical behavior demonstrated by employees
D. Supporting the code of ethics with extensive training for every member of the
organization
Answer:
An _____ whistle-blower is an employee who discovers corporate misconduct and
chooses to bring it to the attention of law enforcement agencies and/or the media.
Answer:
Which of the following actions is a step toward running a company successfully?
A. Merging the roles of the chief executive officer and the chairperson of the board.
B. Liberating the chief executive officer from constraints laid by the board members.
C. Evaluating risk-versus-reward scenarios frequently, regardless of the company’s size.
D. Reducing the board’s independence and decreasing the power of stockholders.
Answer:
The policy of _____ is the premise of corporate social responsibility where doing what’s
best for the customers translates into what’s best for the company in the long run.
A. social contagion theory
B. doing well by doing good
C. social threefolding theory
D. delivering quarterly earnings numbers
Answer:
Which of the following is TRUE of qui tam lawsuits?
A. They imprison or penalize federal whistle-blowers under the False Claims Act of
1863.
B. They are lawsuits filed against whistle-blowers who are motivated by financial
rewards.
C. They do not accept the testimonies of whistle-blowers who are motivated by
revenge.
D. They establish whistle-blowers as deputized petitioners for the government in the
case.
Answer:
For the accounting profession, the last resort for ethical guidance and leadership is the
Code of Conduct issued by the _____.
A. International Association of Public Accountants
B. Certified Public Accountants Association
C. Accounting Institute of Ethical Conduct
D. American Institute of Certified Public Accountants
Answer:
Fred, a manager in a multinational corporation, is a supporter of Milton Friedman’s
instrumental contract. Fred believes that corporations:
A. should actively work to protect the environment of the countries in which they
operate.
B. must run welfare programs for the people of the countries in which they operate.
C. need to cease working in less-developed countries.
D. carry no moral obligation to the countries in which they operate.
Answer:
One of the primary responsibilities of an organization’s _____ is to ensure compliance
with the company’s internal code of ethics.
A. business sales unit
B. quality assurance unit
C. corporate governance committee
D. proposal committee
Answer:
A developed nation is a country that enjoys a high standard of living as measured by
economic, social, and technological criteria.
Answer:
Which of the following is a criticism of the triple bottom-line (3BL) approach?
A. 3BL does not take a holistic view of what constitutes sustainability for the company.
B. 3BL has a narrow view of what constitutes profit for the company.
C. Under the 3BL approach, an organization focuses more on financial goals rather than
social and environmental goals.
D. There has been no real evidence of how 3BL can be measured.
Answer:
Merging the roles of the chief executive officer and the chairperson of the board is
inadvisable because:
A. the power of the board of directors increases.
B. long-term goals typically replace short-term goals.
C. the power of the chief executive officer decreases.
D. the power of the stockholders is minimized.
Answer:
Which of the following is TRUE of the concept of global ethics?
A. It is no longer relevant today.
B. It has little backing from the United Nations.
C. It is a highly complex subject.
D. It does not involve less-developed nations.
Answer:
The _____ introduced a reward program for whistle-blowers who report securities law
violations to the Securities and Exchange Commission (SEC) or the Commodity
Futures Trading Commission (CFTC).
A. National Emergency Act
B. Rehabilitation Act
C. Dodd-Frank Wall Street Reform and Protection Act
D. Corporate and Criminal Fraud Accountability Act
Answer:
Corporate governance is the process by which:
A. the government appropriates the assets of a business.
B. corporations are nationalized by the government.
C. corporations monitor the government.
D. corporations are directed and controlled.
Answer:
_____ refers to a set of personal principles formalized into a code of behavior.
A. Traditional norm
B. Value system
C. Extrinsic norm
D. Utilitarianism
Answer:
In what way does the UN Global Compact differ from the OECD guidelines for
multinational enterprises?
A. Unlike the UN Global Compact, the OECD guidelines uses a more governmental
approach for the same issues.
B. Unlike the OECD guidelines, the UN Global Compact ignores most areas of
environmental concern.
C. Unlike the UN Global Compact, the OECD guidelines believes that businesses
should eliminate forced labor.
D. Unlike the OECD guidelines, the UN Global Compact applies only to companies
operating in their own country.
Answer:
Companies can make vast amounts of information available to customers through their
_____ sites.
A. extranet
B. intranet
C. cybernet
D. Ethernet
Answer:
Which of the following regulated unethical corporate behavior prior to the passing of
the Foreign Corrupt Practices Act?
A. The Securities and Exchange Commission
B. The Dodd-Frank Wall Street Reform and Consumer Protection Act
C. The U.S. Federal Sentencing Guidelines for Organizations
D. The Ethics Resource Center
Answer:
Companies can discourage unethical behavior in their employees by:
A. disciplining repeat offenders in private.
B. conducting regular audits and random spot checks.
C. not adopting a formal code of ethics.
D. giving their CEOs more power than their boards of directors.
Answer:
_____ of the Sarbanes-Oxley Act addresses issues related to corporate and criminal
fraud accountability.
A. Title I
B. Title XII
C. Title XIII
D. Title VIII
Answer:
The OECD guidelines for multinational enterprises were initially a part of the _____.
A. Public Company Accounting Oversight Board
B. The International Federation of the Red Cross
C. Dodd-Frank Wall Street Reform and Consumer Protection Act
D. Declaration on International Investments and Multinational Enterprises
Answer:
Which of the following statements is TRUE of an organization’s code of ethics?
A. The code of ethics cannot be created from scratch.
B. The audience for a code of ethics includes only the shareholders of an organization.
C. There is no perfect model for a code of ethics.
D. The audience for a code of ethics does not include investors, customers, and
suppliers of an organization.
Answer:
Walter’s Inc., a cement manufacturing firm, fails to meet the client deadline for
delivering 500 kg of cement to QuickContruct Inc. The officer responsible for
distribution and sale at Walter Inc. bribes the officer in charge of receiving the
consignment at QuickContruct Inc. to alter the date of delivery in the original contract.
Which of the following concepts is best illustrated in the above scenario?
A. Ethical dilemma
B. Social loafing
C. Ethical transgression
D. Utilitarianism
Answer:
Ethical choices that offer the greatest good for the greatest number of people refer to the
theory of _____.
A. moral obligation
B. utilitarianism
C. absolute advantage
D. liberalism
Answer:
A company is of the view that what is best for its shareholders, may not be best for its
employees and the community. It also believes that the most efficient means to achieve
increased profits is to close its factory and move production overseas. This is an
example of _____.
A. a disconfirmed expectancy
B. a conflict of interest
C. emotional contagion
D. social loafing
Answer:
The problem with _____ is that societies can place different emphasis on different
virtues.
Answer:
The _____ approach to corporate social responsibility (CSR) argues that philanthropic
initiatives are authorized without concern for the corporation’s overall profitability.
Answer:
According to Adam Moore, when an employee consents to being monitored by a
company because he or she has no choice, the employee has given _____ consent.
Answer:
_____, the Nobel Prize-winning economist, argued about the instrumental approach that
it would be unethical for a corporation to do anything other than deliver profits for its
investors.
Answer:
Explain the practice of making a company’s operations “carbon neutral.”
Answer:
An organization’s _____ represents the sum of all the policies and proceduresboth
written and informalfrom each of the functional departments in the organization in
addition to the policies and procedures that are established for the organization as a
whole.
Answer:
The _____ refers to the perspective that a corporation has an obligation to society over
and above the expectations of its shareholders.
Answer:
For an ethical culture to be _____, it has to persist within the operational policies of the
organization long after the latest public scandal or the latest management buzzword.
Answer:
What is corporate governance? Why is it important?
Answer:
The _____ is elected by the owners to represent their interests in the effective running
of a corporation.
Answer:
The _____ is a company’s internal website, containing information for employee access
only.
Answer:
Under the FSGO, the _____ is warranted where the organization was operating
primarily for a criminal purpose.
Answer:
What are the advantages and disadvantages of globalization?
Answer:
Discuss the statement that HR should be at the center of any corporate code of ethics.
Answer:
The _____ was legislation promoted as the “fix” for the extreme mismanagement of
risk in the financial sector that led to a global financial crisis in 2008-2010.
Answer:
Differentiate between bribes and grease payments.
Answer:
Video surveillance, under federal law, is acceptable where the camera focuses on _____
accessible areas.
Answer:
The Sarbanes-Oxley Act of 2002 incorporates the “_____” approach to corporate
governance.
Answer:
The board of directors is a group of individuals, elected by the vote of _____ at the
annual general meeting, who oversee the governance of an organization.
Answer:
One of the newest and increasingly questionable practices in the world of corporate
social responsibility (CSR) is the notion of making operations “_____” in such a way as
to offset whatever damage is being done to the environment through greenhouse gas
emissions by purchasing credits to balance out emissions.
Answer: