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Question 1

In the “bad apple–bad barrel” analogy, the bad barrel refers to which of the following?

Answer 1

An unethical corporate culture

Question 2

Which of the following statements about codes of conduct are not true?
a. They show employees that the business is both responsible and ethical.
b. They address every ethical issue that an employee may face.
c. They help communicate expectations for employees.
d. They provide rules and guidelines for employees to follow.
e. They give the company culture an ethical foundation.

Answer 2

b. They address every ethical issue that an employee may face.

Question 3

A strong ethics program includes which of the following elements? (Select four) a. A clause promising good stock market performance
b. A written code of conduct or ethics
c. Formal ethics training
d. Auditing, monitoring, enforcement, and revision of standards
e. High-level personnel to oversee the program

Answer 3

B c d e

Question 4

In the absence of ethics programs, employees are likely to make decisions based on which of the following?
a. Their observations of how their coworkers and superiors behave
b. How they and their family members behave at home c. Whatever they can get away with
d. Their educational backgrounds
e. What they did at their previous organizations

Answer 4

a. Their observations of how their coworkers and superiors behave

Question 5

Formal statements that describe what an organization expects of its employees in terms of ethical behavior are known as _______.

Answer 5

codes of conduct

Question 6

Because a corporation can be considered a moral agent, it is therefore _______.

Answer 6

responsible to society for its actions

Question 7

Which type of orientation strives to develop shared standards?

Answer 7

Values

Question 8

For an ethics and compliance program to properly function, which of the following is true?
a. Consistent enforcement and disciplinary action are essential.
b. Employees must be monitored using any means necessary.
c. It is not necessary to set measurable program objectives.
d. The same program should be used in all countries of operation, regardless of cultural differences.
e. The company must wait until after misconduct occurs to develop a means of preventing it.

Answer 8

Consistent enforcement and disciplinary action are essential.

Question 9

Which of the following is the most comprehensive?

Answer 9

Code of ethics

Question 10

At the heart of the Federal Sentencing Guidelines for Organizations is a(n) _______.

Answer 10

carrot-and-stick philosophy that rewards efforts to improve ethics

Question 11

Which of the following pieces of legislation has increased the responsibilities on ethics officers and boards of directors
to monitor financial reporting?

Answer 11

Sarbanes-Oxley Act

Question 12

Because of social isolation that creates insensitivity and a lower level of motivation to regulate ethical decision
making, which of the following may be more inclined to engage in unethical organizational conduct?

Answer 12

High-status officials

Question 13

Because their jobs and personal identity are often intimately connected to quarterly returns, top managers tend to focus on which of the following?

Answer 13

Financial performance

Question 14

Which of the following is one responsibility of an ethics officer?

Answer 14

Monitoring and auditing ethical conduct

Question 15

Which of the following is one of the key goals of successful ethics training programs?

Answer 15

To identify key risk areas employees will face

Question 16

Which of the following is a major problem organizations tend to have when implementing an organizational ethics
program?
a. They fail to adopt formal corporate codes of ethics.
b. Government requirements for ethics programs are too ambiguous.
c. Wall Street investors demand companies take illegal action to increase profits.
d. Financial problems make ethical conduct impossible to pursue.
e. Top managers don’t integrate codes, values, and standards into their firms’ corporate cultures.

Answer 16

e. Top managers don’t integrate codes, values, and standards into their firms’ corporate cultures.

Question 17

Which of the following is an advantage of a values-based ethics program over a compliance-based one?
a. Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency.
b. Diverse employees no longer have differing values.
c. It requires employees to identify with and commit to specific required conduct.
d. A values orientation uses legal terms, statutes, and contracts that teach employees the rules and penalties for
noncompliance.
e. Unlike values-based programs, compliance-based programs cannot prevent misconduct.

Answer 17

a. Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency.

Question 18

Which of the following is a common mistake made when implementing an ethics program?
a. Setting specific program objectives
b. Developing materials that are not understandable by the average employee
c. Adapting a firm’s ethics program to its international operations
d. Allowing lower-level employees to make ethical decisions
e. Having one person take responsibility for implementing the ethics program

Answer 18

b. Developing materials that are not understandable by the average employee

Question 19

Hotline 100 is a company that offers ethics hotline maintenance for organizations. The company accepts anonymous
calls 24/7, 365 days a year. Which component of the Federal Sentencing Guidelines for Organizations compliance
program does a company like Hotline 100 help organizations to satisfy?

Answer 19

Systems for monitoring, auditing, and reporting misconduct

Question 20

Which of the following statements about ethics training NOT true?
a. Ethics training can educate employees about the firm’s policies and expectations, as well as about relevant
laws and regulations and general social standards.
b. Ethics training can dictate personal ethics on the job so employees no longer have differences in beliefs.
c. Ethics training can make employees aware of available resources, support systems, and designated personnel
who can assist them with ethical and legal advice.
d. Ethics training can empower employees to ask tough questions and make ethical decisions.
e. Ethics training can affect the influence of organizational culture, coworkers and superiors, and opportunity.

Answer 20

b. Ethics training can dictate personal ethics on the job so employees no longer have differences in beliefs.

Question 21

Which of the following generates an ethical program that creates order by requiring that employees identify with and
commit to specific required conduct using legal terms and statutes?

Answer 21

Compliance orientation

Question 22

Which of the following NOT key goals of successful ethics training programs?
a. Identify key risk areas employees will face.
b. Align employee conduct with organizational reputation and branding.
c. Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma they
do not know how to resolve.
d. Allow employees to solve ethical issues using their best judgment.
e. Allow a mechanism for employees to voice their concerns that is anonymous but provides answers to key
questions.

Answer 22

d. Allow employees to solve ethical issues using their best judgment.

Question 23

Which individual is generally responsible for implementing disciplinary action for violation of a firm’s ethics
standards?

Answer 23

Ethics officer

Question 24

To ensure that an ethics program addresses the needs of the average employee, it should include which of the
following? (Select four)
a. Feedback from employees across the firm
b. A question-and-answer section
c. Additional resources for guidance
d. Lengthy legal documents
e. User-friendly checklists, illustrations, and cartoons

Answer 24

a b c e

Question 25

Which of the following serve as a central contact point where critical comments, dilemmas, and advice can be assigned to the person most appropriate for handling a specific case?

Answer 25

Hotlines

Question 26

Which of the following is one of the main reasons employees do not report observed misconduct?

Answer 26

Fear of retaliation

Question 27

Because top managers may be more insensitive to ethical issues due to their focus on financial performance, the FSGO guidelines suggest that ethics officers instead report to which of the following?

Answer 27

Board of directors

Question 28

Which document serves the general public and also addresses distinct groups such as stakeholders?

Answer 28

Statement of values

Question 29

The only way to develop an ethical corporate culture is to provide character education to existing employees or hire employees with good character and sensitize them to ethical issues. a. True b. False

Answer 29

False

Question 30

In many cases, a coherent ethical corporate culture does not evolve through independent individual and interpersonal relationships. a. True b. False

Answer 30

True

Question 31

The FSGO encourages federal judges to reduce or eliminate fines for firms with extensive compliance programs that make due diligence attempts to abide by ethical and legal standards. a. True b. False

Answer 31

True

Question 32

Companies should model their ethics training and communication initiatives after those of their competitors'. a. True b. False

Answer 32

False

Question 33

The most effective hotlines operate on an anonymous basis and are supported 24 hours a day, 365 days a year. a. True b. False

Answer 33

True

Question 34

One common problem found with corporate codes of ethics is that the codes were written too legalistically. a. True b. False

Answer 34

True

Question 35

An ethics audit should be conducted regularly. a. True b. False

Answer 35

True

Question 36

Which of the following is important in defining the scope of the audit process?

Answer 36

Available opportunities the business has to manage ethics

Question 37

During which step of the ethics auditing process does an organization identify the tools or methods for measuring progress in improving employees’ ethical decisions and conduct?

Answer 37

Collect and analyze relevant information

Question 38

During which step of the auditing process should a firm examine all documents that make explicit commitments to ethical, legal, or social responsibility?

Answer 38

Review the firm’s mission, goals, values, and policies

Question 39

Ideally, which of the following should oversee an ethics audit?

Answer 39

The board's financial audit committee

Question 40

What is the first step in the auditing process?

Answer 40

Secure the commitment of top executives and directors

Question 41

An independent assessment of the quality, accuracy, and completeness of a company's social or ethics report is known as _______.

Answer 41

verification

Question 42

Which of the following is the final step in the ethics-auditing process?

Answer 42

Report the findings

Question 43

Which of the following statements about ethics audits NOT true? a. They provide an opportunity to measure conformity to the firm's desired ethical standards. b. They are a mandatory component of an ethics program. c. They provide an objective method for demonstrating a company's commitment to improving strategic planning, including its compliance with legal and ethical standards and social responsibility. d. They are a major component of the ethics program. e. They are systematic evaluations of an organization's ethics program and performance to determine whether it is effective.

Answer 43

b. They are a mandatory component of an ethics program.

Question 44

Which of the following is a tool that companies can employ to identify and measure their ethical commitment to stakeholders?

Answer 44

Ethics audit

Question 45

Because ethics audits are voluntary, there are fewer standards a company can apply with regard to reporting frequency, disclosure requirements, and remedial actions that it should take in response to results. a. True b. False

Answer 45

True

Question 46

A performance management tool that details a company’s performance through financial and nonfinancial perspectives, giving management a comprehensive view of the business, is called _______.

Answer 46

the balanced scorecard

Question 47

Which of the following provides international guidelines for compliance management?

Answer 47

ISO 19600

Question 48

The measuring of social, financial, and environmental factors (or people, places, and planet) that recognizes business has a responsibility to positively influence a variety of stakeholders, including customers, employees, shareholders, community, and the natural environment is defined as the _______.

Answer 48

triple bottom line

Question 49

Which of the following NOT responsibilities of an ethics officer? a. Assessing the needs and risks an organization-wide ethics program must address b. Developing and distributing a code of conduct or ethics c. Reviewing and updating the code of conduct or ethics d. Conducting training programs for employees e. Operating the ethics hotline

Answer 49

e. Operating the ethics hotline