The audience for the code of ethics of an organization includes only its employees.
Answer:
The triple bottom line proposed by the Kings II report recognizes the economic,
environmental, and social aspects of a company’s activities.
Answer:
The Whistleblower Protection Act of 1989 did not apply to federal employees.
Answer:
The issue of corporate social responsibility has advanced from an abstract debate to a
core performance-assessment issue with clearly established legal liabilities.
Answer:
Organizations find it easy to make the transition from corporate social responsibility
(CSR) as a theoretical concept to CSR as an operational policy due to the major trends
driving it.
Answer:
Standards of ethical behavior are absorbed by osmosis as individuals observe the
examples, both positive and negative, set by everyone around them.
Answer:
There is no perfect model for a code of ethics.
Answer:
The “comply or explain” guideline proved to be an effective deterrent to corporate
financial scandals.
Answer:
It is important to establish an extensive training program to support the published code
of ethics of a company.
Answer:
The auditing function keeps track of all the company’s financial transactions by
documenting the money coming in and money going out and balancing the accounts at
the end of the period.
Answer:
Moral standards are independent of religious beliefs.
Answer:
Whistle-blowing is ethical in situations where the company, through a product or
decision, will cause serious and considerable harm to the public.
Answer:
Which of the following statements isTRUE of Milton Friedman’s view of the corporate
world?
A. Friedman argues that it would be unethical for a corporation to just deliver the
profits to its investors rather than giving something back to the society.
B. Friedman’s position illustrates that an organization has a social responsibility that
goes beyond serving the interests of their stockholders.
C. Friedman stipulates that profits can be earned “with deception or fraud.”
D. Friedman argues that, as an employee of the corporation, a manager has an ethical
obligation to fulfill his role in delivering on the expectations of his employers.
Answer:
The work arrangement which allows employees to work from locations other than their
office and log into their company’s network remotely is known as telecommuting.
Answer:
A well-written code of ethics can capture what the organization understands ethical
behavior to mean.
Answer:
The Dodd-Frank Wall Street Reform and Protection Act of 2010 stipulates that if more
than $1 million is collected, the whistle-blower is entitled to between 10 and 30 percent
of the monies collected.
Answer:
The processing of governmental papers, such as visas, is an example of a routine
governmental action.
Answer:
GeoTransmit, a large multinational telecommunications company, decided to hide the
extensive debt and losses it was accumulating from its investors. Its fraudulent
accounting behavior was eventually discovered, however, and the company went
bankrupt. Which of the following isTRUE of GeoTransmit and its stakeholders?
A. The different stakeholders of GeoTransmit will be affected in different ways.
B. Geotransmit’s decision to hide its losses from investors will not impact the economy.
C. None of GeoTransmit’s stakeholders will be affected adversely by its decision.
D. GeoTransmit’s decision to hide its losses from investors cannot be considered
unethical.
Answer:
The ethical conduct of a business can be influenced by the individual personalities
involved.
Answer:
Proactive ethical policies are policies that result when organizations are driven by
events and/or a fear of future events.
Answer:
An organization’s code of ethics does not pertain to the everyday functioning of its
managers and employees.
Answer:
The Chicago Climate Futures Exchange (CCFE) promotes the standardization of carbon
trading on a global scale.
Answer:
The False Claims Act of 1863 specifically protected whistle-blowers from retaliatory
behavior.
Answer:
An employee can never benefit from whistle-blowing in the corporate sector.
Answer:
According to the legal concept of cyberliability, employers can be held liable for the
actions of their employees through Internet communications to the same degree as if
they had written those communications on company letterhead.
Answer:
Currently, legal protection for whistle-blowers who are federal employees exists only
through legislation that encourages the moral behavior of employees who feel
compelled to speak out, without offering any safeguards against retaliation aimed at
them.
Answer:
In contrast to the alleged immorality of altruistic CSR, critics argue that strategic CSR
is ethically commendable since these initiatives benefit stakeholders while meeting
fiduciary obligations to the company’s shareholders.
Answer:
Business ethics can be approached from two distinct perspectives: prohibitive and
preventative.
Answer:
If the board of directors is to serve its purpose in setting the operational tone for an
organization, it should be comprised of members who represent professional conduct in
their own organizations.
Answer:
Companies can now make vast amounts of information available to employees and
customers on their Internet, intranet, and extranet sites.
Answer:
HR professionals must help ensure that ethics is a top organizational priority.
Answer:
The base fine of an organization sentenced under the Federal Sentencing Guidelines for
Organizations is always calculated after its culpability score.
Answer:
Thin consent is based on the assumption that the employee can easily find another job.
Answer:
The OECD Guidelines for Multinational Enterprises do not address the issue of
taxation.
Answer:
Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent
behavior against the government are entitled to a minimum of 75 percent of the amount
recovered.
Answer:
By merging the roles of the chief executive officer and the chairperson of the board, the
oversight provided by the board of directors is magnified.
Answer:
Joseph F. Keefe asserts that there are three major trends behind the corporate social
responsibility phenomenon.
Answer:
Which of the following did the government formulate to penalize corporate
wrongdoing?
A. The Comstock Act
B. The Sarbanes-Oxley Act
C. The National Emergencies Act
D. The Rehabilitation Act
Answer:
The primary reason for the enactment of the Civil False Claims Act was to:
A. protect the government from fraudulent defense contractors.
B. prevent corporate retaliation against federal whistle-blowers.
C. impose specific performance deadlines in processing whistle-blower complaints.
D. prevent whistle-blowers from filing cases against multinational corporations.
Answer:
A _____ nation is one that enjoys a high standard of living as measured by economic,
social, and technological criteria.
Answer:
The _____ is a fine that is set high enough to match all the organization’s assets and
effectively puts the organization out of business.
A. prohibition payment
B. death penalty
C. facilitation payment
D. relative penalty
Answer:
Which of the following is a problem with the universal ethics approach?
A. The problem with this approach is the reverse of the weakness in ethics for the
greater good.
B. The problem with this approach is the idea that the ends justify the means.
C. The problem with this approach is that individuals share similar standards in a
community.
D. The problem with this approach is that everyone is committed to doing the right
thing.
Answer:
A well-written code of ethics:
A. states policies for behavior in specific situations.
B. distinguishes between punishments for violations of ethics for different managerial
levels.
C. establishes a detailed guide to acceptable behavior exclusively for external
stakeholders.
D. documents rewards for selected top management employees on fulfillment of ethical
policies.
Answer:
Sandra, an executive officer of a company, has collected reports which prove that the
CEO has been misappropriating company and investor funds. She takes the matter
public and issues a statement against the CEO. Sandra is an _____ whistle-blower.
A. implicit
B. explicit
C. internal
D. external
Answer:
Which of the following illustrates that a company has failed at implementing corporate
social responsibility (CSR)?
A. The company does not provide stock options for its employees.
B. The company does not pay all taxes related to the profitable business operations.
C. The company does not operate in hazardous working environments.
D. The company does not provide flexible working hours to its employees.
Answer:
Internal whistle-blowing occurs when an employee discovers corporate misconduct
within his or her organization and brings it to the attention of law enforcement agencies
and/or the media.
Answer:
Multinational companies are also known as _____.
A. transnational corporations
B. intranational trade blocs
C. regional trade blocs
D. transcontinental bureaus
Answer:
_____ is one of the newest and increasingly questionable practices in the world of CSR.
A. Risk management and emergency preparedness
B. Water conservation
C. Positive greenhouse approach
D. Carbon neutral operations
Answer:
Cathy heads the R&D team of Anderson Enterprises. Which of the following R&D
functions should Cathy and her team undertake in the firm to allow the organization
capture and maintain a leading position in its market?
A. Cathy and her team should manage individual hardware and software needs that are
specific to the organization and its line of business.
B. Cathy and her team should coordinate the recruitment, training, and development of
personnel for all aspects of the organization.
C. Cathy and her team should certify the accuracy of the company’s financial
statements.
D. Cathy and her team should make a complex set of risk assessments and technical
judgments in order to deliver a product design.
Answer:
It is difficult to track the history of internal whistle-blowing because:
A. it rarely receives attention from the media.
B. it is illegal under the Sarbanes-Oxley Act.
C. corporate whistle-blowing is usually ignored.
D. corporate wrongdoing is a rare phenomenon.
Answer:
Which of the following is TRUE of the guidelines offered by Richard DeGeorge for
organizations doing business in other countries?
A. His guidelines represented an ethical ideal that, at best, provided a conceptual
foundation.
B. His guidelines were lauded for covering all the severe types of business
transgressions.
C. His guidelines only addressed multinational corporations working in developed
countries.
D. His guidelines endorsed the principles of utilitarianism: the ends justify the means.
Answer:
According to Joseph F. Keefe, which of the following is a major trend behind the
corporate social responsibility phenomenon?
A. Nationalization
B. Globalization
C. The failure of the private sector
D. The failure of the industrial sector
Answer:
Which of the following bodies has approached the issue of standardizing global ethical
conduct by promoting behavior guidelines that multinational corporations can publicly
support?
A. The Organization for Economic Cooperation and Development
B. The Pan American Health Organization
C. The International Federation of the Red Cross
D. The International Peace Bureau
Answer:
Since the code of ethics can’t capture every possible example, each department of the
organization should apply the code to examples that arise in its area.
Answer:
“Business ethics” is sometimes considered an oxymoron because:
A. small, new businesses tend to be less honest than large, established businesses.
B. the recent spate of financial scandals portrays organizations as fundamentally
unethical.
C. the standard of corporate governance has been at its highest level in the last decade.
D. local businesses tend to have fewer accounting scandals than international
businesses.
Answer:
At the _____ stage, a person is focused on self-chosen ethical principles that are found
to be comprehensive and consistent.
A. “good boy/nice girl” ethical orientation
B. law and order orientation
C. universal ethical principle orientation
D. obedience and punishment orientation
Answer:
The _____ is a government agency within the Federal Reserve that oversees financial
products and services.
A. Consumer Financial Protection Bureau
B. Ministry of Internal Affairs
C. Ethics Resource Center
D. Public Company Accounting Oversight Board
Answer:
Society refers to a(n):
A. environment that does not mention acceptable standard of good and bad behavior.
B. closed, confined unit in which people have to follow a distinct religion.
C. group of individuals who share similar psychological order and community
resources.
D. structured community of people bound together by similar traditions and customs.
Answer:
_____ is a legal concept that means a party may be held responsible for injury or
damage even when he or she was not actively involved in an incident.
A. Thin consent
B. Vicarious liability
C. Ratability
D. Thick consent
Answer:
A company’s commitment to ethical behavior impacts:
A. only the lower managerial level and those departments that deal directly with
customers.
B. only the middle managerial level and those departments that deal directly with
customers.
C. every managerial level and every department of the organization.
D. the top managerial level and the HR department of the organization exclusively.
Answer:
Title II of the Sarbanes-Oxley Act:
A. allows public accounting firms to audit a company whose CEO was employed by the
firm within the past 12 months.
B. disbanded the Public Company Accounting Oversight Board and allows publicly
traded companies to be audited independently.
C. requires senior auditors to rotate off an account every five years, and junior auditors
every seven years.
D. permits auditors to keep written communications between management and
themselves private.
Answer:
Which of the following is TRUE of trading blocs?
A. Regional trading blocs are slowly being replaced by independent national markets.
B. The individual countries that comprise trading blocs have disappeared completely.
C. Trading blocs are created by countries that prefer not to participate in the global
market.
D. The customs and norms of individual countries that comprise trading blocs still
prevail.
Answer:
Which of the following is TRUE of globalization?
A. It makes countries and markets more independent of each other.
B. It leads to the replacement of regional trade blocs with national markets.
C. It impacts the commercial, economic, social, and political environment.
D. It offers multinational companies fewer ways to reduce their expenses.
Answer:
Amanda heads the human resource department in Elenear Enterprises. The management
has entrusted her with certain functions. Within the organization, Amanda should be
directly involved in:
A. the marketing of the organization’s products.
B. the maintenance of the technology in the organization.
C. the recruitment and selection of the right candidates for different positions.
D. the incorporating of customer feedback and competitive feedback.
Answer:
Why were the guidelines offered by Richard DeGeorge for organizations doing business
in other countries criticized?
A. He overlooked issues related to the quality of goods produced.
B. He did not advocate working with or respecting local customs.
C. He believed that the ends justified the means in all circumstances.
D. He advocated doing the greatest good for the greatest number of people.
Answer:
_____ refers to the actions of an organization that are targeted toward achieving a social
benefit over and above maximizing profits for its shareholders and meeting all its legal
obligations.
A. Value chain
B. Virtue ethics
C. Corporate conscience
D. Circles of sustainability
Answer:
The belief that an activity is safe because it will never be found out is a common
rationalization behind an employee’s unethical conduct. What can an organization do to
deter unethical behavior based on this rationalization?
A. Managers should take punitive action in private.
B. Managers should punish the individual publicly.
C. Managers should ideally ignore first-time offenders.
D. Managers should reprimand the individual discretely.
Answer:
As an internal document, the code of ethics should represent a clear guide to _____ in
making the decisions and choices they face every day.
A. managers and employees
B. competitors and consumers
C. stockholders and shareholders
D. retailers and wholesalers
Answer:
The theory of _____ places actions within a strictly moral context instead of basing
actions on the needs of a particular situation.
A. normative ethics
B. universal ethics
C. reductionism
D. utilitarianism
Answer:
Discuss the Dodd-Frank Wall Street Reform and Consumer Protection Act and the
agencies that were founded as a result of the passing of this act.
Answer:
What roles do the audit committee and compensation committee of an organization play
in ensuring good governance?
Answer:
In what way did the King I approach differ from the Cadbury approach?
Answer:
_____ can track an employee’s location while he or she moves through the workplace.
Answer:
The _____ Act of 2010 introduced a new reward program for whistle-blowers who
report securities law violations to the Securities and Exchange Commission (SEC) or
the Commodity Futures Trading Commission (CFTC).
Answer:
The hiring of a(n) _____ represents a formal commitment to the management and
leadership of an organization’s ethics program.
Answer:
Policies that result when organizations are driven by events and/or a fear of future
events are called _____.
Answer:
Differentiate between intrinsic and instrumental value.
Answer:
_____ can intercept, analyze, and archive all communications on a network.
Answer:
The “_____” approach to corporate governance requires companies to abide by a set of
operating standards or face stiff financial penalties.
Answer:
A structured community of people bound together by similar traditions and customs
refers to a _____.
Answer:
The _____ function of an organization keeps track of the company’s financial
transactions by documenting the money coming in and going out and by balancing the
accounts at the end of the period.
Answer:
Vicarious _____ is a legal concept that means a party may be held responsible for injury
or damage even when he or she was not actively involved in an incident.
Answer:
The Foreign Corrupt Practices Act was criticized because it formally recognized _____.
Answer:
_____ can be defined as the values, beliefs, and norms shared by all the employees of
that organization.
Answer:
Business ethics can be approached from two different perspectives. The _____
perspective simply documents what is happening.
Answer:
At the _____ stage of moral development, a person is focused on individual rights and
the development of standards based on critical examination.
Answer:
The terms _____ and values are often used to mean the same thing, a set of personal
principles by which you aim to live your life.
Answer:
The _____ relies on public accountability, transparency, and the enlightened
self-interest of companies, labor, and civil society to initiate and share substantive
action in pursuing its principles.
Answer: