Q&A Hero

Q: Imagine you have just taken a job as CEO of a firm with a recent history of ethical transgressions. What steps would you take to begin changing the ethical culture of the organization?

Q: How does a training and communication plan assist in the implementation of an ethics program? What are some unique ways that organizations could train and communicate about ethics?

Q: How can an employee hotline be used to advance a company's ethics policies?

Q: Describe the role that annual performance evaluations can play in creating a strong ethical work climate.

Q: What are the key responsibilities of ethics officers? How would the employment background, personality, and reputation of an ethics officer affect his or her performance on the job?

Q: Describe the importance of codes of conduct to organizations. What aspects of the Texas Instruments' code of ethics are most useful and effective?

Q: Describe the differences between a compliance orientation and a values orientation to a company's control system.

Q: How can an organization develop an effective ethics program?

Q: Which of the following statements best reflects a strategic approach to creating and maintaining an ethical corporate culture? a. "Our code of conduct is window-dressing." b. "People are raised with strong personal values and should use them at work to resolve ethical conflict." c. "A decentralized approach to decision making produces the most ethical corporate culture." d. "Hiring and promoting good, ethical managers will automatically produce an ethical organization." e. "Reducing unethical behavior is a business goal no different from increasing profits."

Q: Five bases of power, including ____, coercive, legitimate, referent, and expert power, can be used to motivate individuals either ethically or unethically in the workplace. a. executive b. peer c. reward d. formal e. diverse

Q: Which of the following is not a recommended step for changing the ethical culture of an organization? a. Avoid the perception of hidden agendas. b. Implement communications and education strategies. c. State your position, philosophy, or belief. d. Avoid the use of informal systems to communicate expectations. e. Reinforce the policy through measurements and rewards.

Q: ____ leadership is best suited for higher levels of ethical commitment among employees and strong stakeholder support for an ethical climate. a. Territorial b. Transactional c. Transcendental d. Tactical e. Transformational

Q: Transactional leadership a. promotes workplace activities and behaviors through a shared vision and sense of mission. b. creates employee satisfaction by negotiating for levels of performance or "bartering" for desired behaviors. c. is practiced by middle managers who are striving to become top managers. d. is least effective in firms with an emphasis on manufacturing and industrial products. e. cannot be implemented for quickly changing ethical climates or for reacting to ethical problems or issues.

Q: According to the National Business Ethics Survey, ____ is a primary reason that employees do not report misconduct. a. the fear of retaliation b. a concern about safety regulations c. having poor personal moral values d. the absence of an ethics hotline e. a lack of interest

Q: The implementation of an ethics program a. is primarily directed at training top managers and developing compensation plans that will insure top managers are ethical. b. translates a plan of action into operational terms and establishes a means by which organizational ethical performance will be monitored, controlled, and improved. c. starts with training and ends with the development of a code of conduct. d. will not be successful unless the chief executive officer (CEO) is using a transactional leadership approach. e. will be the same from organization to organization, as there is little need to tailor any aspect of the program.

Q: ____ expose an employer's wrongdoing to outsiders, such as the media or government regulatory agencies. a. Private investigators b. Whistleblowers c. Secret shoppers d. Malcontents e. Fraud-finders

Q: Toll-free hotlines that companies set up to give employees a place to report misconduct are associated with which aspect of ethics programs? a. Continuously improving the program b. Consistently enforcing standards, codes, and punishments c. Communicating standards and procedures via ethics training programs d. Establishing systems to monitor and enforce ethical standards e. Establishing codes of conduct that are reasonably capable of detecting and preventing misconduct

Q: About half of the issues raised on ethics help or assistance hotlines relate to a. advertising and marketing concerns. b. accounting and financial misrepresentations. c. improper quality standards. d. human resource issues and complaints. e. questions about top management's behavior.

Q: A behavioral simulation, or role play exercise, is a relatively new ethics training device that a. requires the use of technology, including video and the computer. b. has been found to be less effective than traditional lecture training methods. c. can only be used in small organizations. d. focuses on legal issues in the workplace and the skills that employees need to resolve legal concerns. e. recreates the complexities of organizational relationships and aids the development of analytical skills for resolving ethical issues.

Q: One of the most effective methods of ethics training is a. getting employees involved in resolving ethical dilemmas that relate to actual situations in the workplace. b. providing a video of the ethics officer. c. testing employees on the code of conduct. d. discussing cognitive moral development. e. providing a CD-ROM of material for employees to view on their own.

Q: Which of the following is not one of the keys to successful ethics training addressed in Chapter 6? a. Give employees a means to address ethical issues. b. Make employees aware that their actions can define the company's ethical posture. c. Help employees understand the ambiguity inherent in ethical situations. d. Eliminate the belief that unethical behavior is ever justified. e. Provide specific evidence of punishment for an employee who committed an ethical infraction.

Q: Communication is important in keeping a firm on its ethical course because a. centralization may reduce the opportunity for unethical conduct. b. top executives must enforce overall ethical standards within the organization. c. the moral philosophies of employees are always consistent with the moral philosophies of top management. d. employees must learn when unethical behavior is appropriate to maximize profits. e. issues such as price collusion and bribery must be decided on a decentralized basis.

Q: Which of the following is not likely to be a benefit from an ethics training program? a. To educate employees about the firm's ethical policies and expectations b. To empower employees to ask tough questions and make ethical decisions c. To ensure that employees' personal values are in line with those of the organization d. To make employees aware of available resources e. To demonstrate the importance the organization places on ethics

Q: Which of the following is not a typical activity for an ethics officer? a. Coordinating the U.S. Sentencing Commission annual ethics audit b. Assessing needs and risks of the ethics program c. Developing, revising, and disseminating a code of ethics d. Developing effective training programs e. Monitoring and auditing ethical conduct

Q: Which of the following statements about codes of conduct is false? a. They are formal statements of what an organization expects in the way of ethical behavior. b. They guarantee an ethical business climate. c. They help employees determine what behaviors are acceptable. d. They provide rules and guidelines for employees to follow. e. They should be specific enough to be reasonably capable of preventing misconduct.

Q: Which of the following is not one of the elements of Texas Instruments' Ethics Quick Test? a. Is the action legal? b. Does it comply with our values? c. If you do it, will you feel bad? d. How will it look in the newspapers? e. What will your coworkers think?

Q: Which of the following statements is true about codes of conduct? a. Codes are mostly standardized throughout all industries. b. Codes are informal ideals about organizational expectations. c. Few organizations have written ethical guidelines. d. Codes are designed to resolve every ethical dilemma a company may face. e. Codes are formal statements describing organizational expectations.

Q: In the "bad apple-bad barrel" analogy, a. no one has the right to label some conduct as unethical. b. "bad apples" refer to an unethical corporate culture. c. the code of conduct is used to solve all ethical dilemmas faced in the workplace. d. "bad apples" are people who will always do things in their own self-interest regardless of organizational standards of conduct. e. a code of conduct is not taken seriously as a key component of an ethics program.

Q: Define fraud and describe three types of fraud relevant to business.

Q: What can a company do to influence its employees' opportunity for unethical behavior?

Q: Describe the three factors that influence ethical decisions in business, and provide an explanation of how they affect employees in the workplace.

Q: According to results from the National Business Ethics Survey, what are the types of misconduct commonly found in the workplace?

Q: What is an ethical issue? Describe four categories of ethical issues and provide examples of specific situations that may occur within each category.

Q: Describe two moral philosophies and how each would impact an employee's decision in a business situation.

Q: What is corporate culture, and how is it conveyed in an organizational setting?

Q: What is the set of conditions that limits barriers or provides rewards? a. Opportunity b. Circumstances c. Motivation d. Reinforcement e. Influence

Q: Which of the following most closely exemplifies "groupthink"? a. The CEO of a company is a strong supporter of family values, so the department managers allow employees time off one day a week to attend a special event for their children. b. Two employees get together and come up with a scheme to cheat their company out of a substantial amount of money by charging clients more for products than what is recorded. c. At a company meeting, a possible safety issue with one of the company's products is discussed, and the employees decide not to recall the item since the possibility of the problem is probably slim. d. An employee believes that her company's newly proposed advertising campaign is insulting to certain groups of people but decides not to discuss it with anyone. e. An employee follows his own ethical principles in making business decisions because he strongly believes in the source of those principles---his family and his religion.

Q: Who establishes the ethical tone for the entire firm? a. Mid-level managers b. Board of directors c. Ethics officer d. Employees e. Chief Executive Officer

Q: What aspect of corporate culture relates to an organization's expectations about appropriate conduct? a. Organizational climate b. Regulations c. Significant others d. Ethical climate e. Values

Q: Mary steals office supplies from her employer. Mary's unethical behavior may be attributed to all of the following except a. her individual background along with her associations with others at her place of work. b. the availability of unmonitored office supplies. c. her personal values alone. d. her coworkers' tendencies to steal office supplies. e. a lax ethical climate at her place of work.

Q: According to Kohlberg's model, moral development a. is accelerated by gaining education and experience in resolving conflicts. b. can be defined as six unrelated stages that a person progresses through. c. depends mostly on the first few years of a person's life. d. differs for each individual, resulting in no universal values. e. is focused primarily on each individual's needs.

Q: In which of Kohlberg's stages of moral development does an individual emphasize others over himself or herself? a. Stage of individual instrumental purpose and exchange b. Stage of punishment and obedience c. Stage of mutual interpersonal expectation, relationships, and conformity d. Stage of prior rights, social contract, or utility e. Stage of social justice and conscience maintenance

Q: If employees believe that salary decisions are fair and consistent for all job categories, what type of justice exists? a. Interactional b. Procedural c. Utilitary d. Distributive e. Ethical

Q: If a doctor exaggerates the condition of a patient in order for it to be a condition covered by insurance, the doctor is most likely applying which moral philosophy? a. Egoism b. Consequentialism c. Illegal behavior d. Utilitarianism e. Ethical formalism

Q: Which moral classification considers a decision right or acceptable if it accomplishes a desired result such as pleasure, knowledge, career growth, or utility? a. Ethical formalism b. Consequentialism c. Justice d. Results theory e. Egoism

Q: What are the three primary factors that together influence the ethical decision-making process? a. Values, norms, and regulations b. Opportunity, individual factors, and organizational relationships c. Stakeholder relationships, trust, and corporate culture d. Society, profits, and longevity e. Personal ethics, group ethics, and business ethics

Q: Concerns involving consumer privacy, website development, and online marketing relate to which classification of ethical issue? a. Conflict of interest b. Honesty c. Communications d. Discrimination e. Technology

Q: ____ prohibit(s) employment discrimination on the basis of race, national origin, color, religion and gender. a. The International Employment Rights Treaty b. Title VII of the Civil Rights Act of 1964 c. The Americans with Disabilities Act d. Affirmative Action programs e. The Equal Employment Opportunity Commission

Q: Which of the following is not an ethical issue in the area of communications? a. Concealed facts in advertising b. Bribery c. False or deceptive advertising d. Ambiguous statements in advertising e. Lying

Q: One of most common fraudulent activities reported by employees about their coworkers is a. lowering quality standards to cut costs. b. discriminating in the hiring process. c. using dishonest messages in advertising campaigns. d. claiming to have worked extra hours. e. giving bribes to foreign officials.

Q: Bribery is associated with which of the following? a. Organizational relationships b. Marketing c. Communications d. Honesty and fairness e. Conflicts of interest

Q: Conflicts of interest exist when employees must choose whether to a. advance their own interests, those of the organization, or those of some other group. b. advance the interests of the organization or those of society. c. accept bribes. d. carry out an assignment they perceive as unethical. e. report an unethical coworker.

Q: Issues related to fairness and honesty may arise because business is sometimes regarded as a a. contest, with the most profitable firm "winning." b. contest, with the most ethical firm "winning." c. war, requiring surprise attacks, guerrilla warfare, and other warlike tactics to win the battle for consumers' dollars. d. game governed by its own rules, rather than those of society. e. game governed by the rules of society.

Q: Lying by omission involves intentionally a. withholding material facts. b. creating "noise" within the communication that knowingly confuses or deceives the receiver. c. using highly technical language that the receiver does not understand. d. trying to not hurt someone's feelings. e. telling "white lies."

Q: Which of the following actions is not usually associated with bullying in the workplace? a. Spreading rumors to damage others b. Insulting, yelling, and shouting c. Taking credit for others' work or ideas d. Using discriminatory terminology e. Providing constructive criticism

Q: An employee for Acme, Inc., has been asked to carry out an assignment that she believes is questionable. This situation can best be classified as a. typical. b. misconduct. c. an ethical issue. d. a real-life dilemma. e. a violation of law.

Q: An ethical issue is a problem, situation, or opportunity a. that harms consumers. b. that harms the environment. c. that requires society to choose among several actions that must be evaluated as right or wrong. d. that requires an individual or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. e. that requires an individual or organization to choose between harming consumers or the environment and earning more profits.

Q: Because it can be difficult to draw a boundary between some legal issues and ethical issues in the workplace, it is important to a. realize that ethical issues rarely become so important that they reach the courtroom for resolution. b. recognize that the most cost-effective way to resolve disputes is through the court system. c. have an organizational mechanism for resolving all questionable issues. d. ensure that legal issues brought by stakeholders outside of the organization are resolved within the organization. e. develop a code of conduct to cover every possible issue.

Q: The most basic of business ethical standards a. have been uniformly implemented through every firm's ethics code. b. are centered around the mutual desire to protect the environment. c. demonstrate a company's desires to address the needs of society. d. have been codified as laws and regulations. e. include developing trust in all business relationships.

Q: Which of the following best describes ethics? a. Rules about how one should act in a business situation b. Balancing the ever-changing and complex needs of society with the desire for profit c. Choices and judgments about acceptable standards of conduct that guide the behavior of individuals and groups d. Guidelines that a company provides its employees to ensure that they will act in the best interest of society e. Beliefs held by all people

Q: What effect did the 2008-2009 financial crisis have on the Sarbanes-Oxley Act?

Q: Why did Congress enact the Sarbanes-Oxley Act? What are the major provisions and benefits of the Act?

Q: How can a strong compliance program act as a buffer to keep employees from committing crimes and protect the company's reputation? What are the key elements of the program?

Q: What are some ways that businesses can influence the government?

Q: Describe the changes in the political system and the resulting rise of special-interest groups.

Q: What advantages does self-regulation have over government regulations? Are there ways in which government regulations are superior? Explain.

Q: What additional legal issues must a company contend with when it engages in commerce beyond its own borders?

Q: What new issues of consumer and business protection have arisen from the increasing use of the Internet and other technology?

Q: What are the social reasons for regulation? What are the economic reasons for regulation?

Q: The Sarbanes-Oxley Act was enacted to a. extend the provisions of the Clayton Act. b. restore stakeholder confidence and provide a new standard of ethical behavior for business. c. determine the scope of punishments for executives at Enron and WorldCom. d. eliminate the need for the Federal Sentencing Guidelines for Organizations. e. reduce most white-collar crime to misdemeanors.

Q: Which of the following is not one of the steps delineated by the United States Sentencing Commission to demonstrate the existence of an effective compliance program? a. Establish a code of conduct that communicates the expected standards b. Institute an ethics training program and communication system c. Enforce the policies, and discipline the violators d. Modify the program to prevent future similar offenses e. Develop a well-staffed internal ethics office to handle any reports of misconduct

Q: Which of the following best describes how businesses should manage the regulatory environment? a. Top managers must take responsibility and be accountable for assessing legal risks and developing corporate programs that promote and reward acceptable conduct. b. Businesses should try to follow all of the laws that apply to doing business and should also consider the economic implications of their actions. c. Companies should maintain their primary focus of making a profit, and then try to operate in the regulatory environment. d. Businesses should hesitate to punish employees who have committed an illegal or unethical act in order to protect the reputation of the company. e. The company should hire a consulting group to deal with compliance with laws and regulations since managers have more important matters to address.

Q: The Pet Food Institute, the Tobacco Institute, and the American Booksellers Association are all examples of a. umbrella organizations. b. trade associations. c. special-interest groups. d. PACs. e. trade unions.

Q: The process of working to persuade public and/or government officials to favor a particular position in decision making is known as a. special-interest pleading. b. bribery. c. lobbying. d. influencing. e. PAC.

Q: Self-regulation is an effort to a. develop industry standards for pricing. b. enhance governmental authority in overseeing business practice. c. train executives in ethics and leadership so they are more skilled in the workplace. d. decrease the role and status of the Better Business Bureau and similar organizations. e. demonstrate social responsibility and preclude further governmental regulation.

Q: What effect did the 2008-2009 financial crisis have on the call for deregulation? a. The 2008-2009 financial crisis led the U.S. and other countries to increase pressure for deregulation. b. The 2008-2009 financial crisis led the U.S. and other countries to give less attention to regulatory issues. c. The 2008-2009 financial crisis led the U.S. and other countries to begin to begin to reverse the deregulatory trend of the previous decades. d. The 2008-2009 financial crisis distanced the U.S. from other countries' stance on deregulation. e. The 2008-2009 financial crisis unified proponents and opponents of deregulation.

Q: What is the main argument presented by proponents of complete deregulation? a. Regulations are simply too confusing. b. Less government intervention would allow business markets to work more effectively. c. Regulations hamper competition because they level the playing field. d. There are no benefits received from regulations, only enormous costs. e. Regulations lower prices to an unfair level that hinders firm profitability.

Q: Which of the following best describes the Better Business Bureau (BBB)? a. The BBB is a self-regulatory association that helps resolve problems between businesses and consumers. b. The BBB is a federal government agency that helps resolve problems between businesses and consumers. c. The BBB is a state agency that helps resolve problems between businesses and consumers. d. The BBB is a published list of companies to avoid doing business with due to their poor business practices. e. The BBB is a network of agencies that assesses financial penalties against unethical businesses.

Q: Despite business concerns about the costs of regulations, the benefits include all of the following except a. safer workplaces. b. safer products. c. fewer consumer complaints. d. equality in the workplace. e. a cleaner natural environment.

Q: How could regulation on businesses result in a "hidden tax" to consumers? a. Businesses could pass regulatory costs on to their consumers in the form of higher prices. b. States could raise their sales taxes to compensate for higher regulatory costs. c. Consumers may have to pay for recycling products that have been used or disposed. d. Consumers may be required to pay large fees to have their garbage carried off to a landfill. e. Purchasing in larger quantities may actually become more expensive per unit than smaller purchases.