Deck 13: Evaluating Corporate Ethics

Question 1

According to the research study conducted by PricewaterhouseCoopers 2014 Global Economic Crime Survey, which of the following industry categories had the lowest percentage for both 2011 and 2014?

A) Manufacturing
B) Chemicals
C) Transport and logistics
D) Insurance

Answer 1

B

Question 2

Enforcement of the ethics code is essential to be effective. Which of the following elements of compliance is not relevant?

A) Top management and their supervisors participating in the same programs as employees
B) Static and not updated
C) Consistency in enforcement
D) Clarity of the code contents

Answer 2

B

Question 3

When was the Federal Sentencing Guidelines for Organizations Act passed?

A) 1957
B) 1989
C) 1991
D) 1997

Answer 3

C

Question 4

In the opening vignette, what number of witness reports was altered by police to eliminate any unfavorable comment s directed toward the police?

A) 14
B) 41
C) 115
D) 1,600

Question 5

An effective ethics training program provides other benefits for the firm. Which of the following is not one such benefit?

A) Allow companies to maintain a moral course regardless of the economic conditions.
B) Develop strong employee growth and vision.
C) Improve employee promotion prospects
D) Help integrate ethical values in the day-to-day decisions of management.

Question 6

According to the research study conducted by PricewaterhouseCoopers in the 2014 Global Economic Crime Survey, which of the following regions experienced the highest growth in the level of economic crime?

A) Africa
B) North America
C) Eastern Europe
D) Emerging Eight

Question 7

The goals of an ethics training program do not include

A) Providing the necessary tools need by employees to understand the ethical decision-making process
B) Explaining the procedure used when employees violate ethical standards
C) Giving pay rises to all employees
D) Creating a strong ethical work climate

Question 8

In the opening vignette, the Hillsborough accident occurred in ______.

A) Liverpool
B) Nottingham
C) Sheffield
D) London

Question 9

Internal communication ethical tools such as an ethics hotline would be considered too impersonal and not appropriate for a(n) ______________ based culture.

A) Individualism
B) Collectivism
C) High uncertainty avoidance
D) Low uncertainty avoidance

Question 10

The International Association of Business Communicators found that ______% of respondents had not received any formal ethics training.

A) 24%
B) 95%
C) 17%
D) 65%

Question 11

In the opening vignette __________________were accused of being intoxicated, arriving late, and stealing.

A) Police
B) Liverpool fans
C) Nottingham Forest fans
D) Firefighters

Question 12

Which of the following is not one of the elements in increasing employee awareness of ethical programs?

A) Write codes of conduct in simple terms
B) Ensure ethical policies are not one sided
C) Enable general organizational gripe sessions
D) Ensure relevancy, genuineness, and reality

Question 13

Which of the following is not one of the three Rs in admitting mistakes?

A) Assume responsibility
B) Remove the evidence
C) Demonstrate regret
D) Offer a remedy to fix the problem

Question 14

In a(n) ______________, the presentation of ethics codes and formal procedures would be perceived as irrelevant and, therefore, most likely ignored by the audience.

A) High-context
B) Low-context
C) High uncertainty avoidance
D) Low uncertainty avoidance

Question 15

Nonpunitive ethics programs would be more effective for which of the following types of cultures?

A) Feminine
B) Masculine
C) Low context
D) High context

Question 16

When establishing a global ethics training program, Jackson recommends all of the following elements, except

A) Ensure morally sensitive cultural education
B) Provide education on international human rights
C) Implement a program based on the company's home ethics and culture
D) Consider global cultural dimensions

Question 17

The ethics officer has a number of specific roles. Which of the following is not one?

A) Creating an ethics program.
B) Maintaining oversight of the program
C) Evaluating and investigating ethical charges
D) Having the final say in all ethics matters

Question 18

According to the research study conducted by PricewaterhouseCoopers 2014 Global Economic Crime Survey, when fraud was committed by someone external to the company ______% were dismissed by their employer.

A) 17%
B) 5%
C) 23%
D) 79%

Question 19

What is the key question for the corporate ethics officer to ask when considering aspects of universality?

A) How much information is needed to make an informed decision?
B) Are all the stakeholders treated fairly with this decision?
C) Would this decision be acceptable as a "universal law" that applies to all?
D) Could we defend this decision if our actions became public knowledge?

Question 20

What is not one of the role challenges of the Corporate Ethics Officer?

A) Conflict
B) Ambiguity
C) Complexity
D) tolerance

Question 21

Which of the following points is the starting point for the model discussed in this chapter?

A) Duty to the stakeholder
B) Ethics training programs
C) Requirement of the board
D) Reflection stage

Question 22

As multinational corporations approach the issue of ethics training programs, the level of complexity increases due to the intricacies of doing business in a global environment.

Question 23

Ethics training programs by incorporating global issues serve the utilitarian need of doing the greatest good for the greatest number. Which of the following are not global issues?

A) Human rights
B) Environmental sustainability
C) Salary and financial benefits
D) Economic development

Question 24

To be effective, an ethical hotline should_________________.

A) Be available in a single language
B) Be staffed 24 hours per day
C) Be charged at premium rates
D) Be controlled by the CEO

Question 25

Ethics hotlines can take a number of organizational forms. Which is not one?

A) In-house
B) Outsourced
C) Hybrid
D) Customer service department based

Question 26

All of the following are examples of types of stakeholders except

A) Government
B) Suppliers
C) Competitors
D) Customers

Question 27

_____________ can be defined as the regular comprehensive evaluation of the compliance of the firm's ethical policies and procedures.

A) Social auditing
B) Cultural auditing
C) Ethical auditing
D) Fiscal auditing

Question 28

The ____________ has the authority to enforce the whistle-blower section of the Sarbanes-Oxley Act.

A) Federal Trade Commission
B) Occupational Safety and Health Administration
C) Federal Communications Commission
D) Securities Exchange Commission

Question 29

Individualists will comply with ethical standards if they are based on the ethical norms of the group.

Question 30

The three categories of classification determining how fraud is detected are corporate control, corporate culture, and beyond the influence of management.

Question 31

Which of the following types of cultures would be less likely to change or provide input to their supervisors?

A) Low uncertainty avoidance
B) High uncertainty avoidance
C) Low power distance
D) High power distance

Question 32

______________ was the key whistle-blower in disclosing consumers being misled about the addictive nature of nicotine.

A) Cynthia Cooper
B) Coleen Rowley
C) Sherron Watkins
D) Jeffrey Wigand

Question 33

An ethics training program that just focuses on a masculine-based view of the firm will not give due consideration to which of the following?

A) Strong control mechanisms
B) Individual punishment sanctions
C) Comprehensive ethics training
D) Nonpunitive ethics programs

Question 34

Once the standards of an organization's code of ethics are agreed on, the firm must implement its strategic ethical vision in the ______________.

A) Implementation stage
B) Inspiration stage
C) Commercialization stage
D) Reflection stage

Question 35

The process is which an employee informs another responsible party in the company about potentially unethical behavior is called _____________.

A) Whistle-blowing
B) Phishing
C) Strategic reciprocity
D) Kettle-blowing

Question 36

Establishing an ethics program is a challenge only for large publicly traded companies.

Question 37

The Integrity Helpline (Deloitte and Touche USA LLP) sets out a number of circumstances in which the hotline should be contacted by employees. Which is not one of them? •

A) If you believe that ethics and compliance issues are not being resolved •
B) If you don't feel comfortable reporting through normal channels •
C) If the IT systems break down
D) If you wish to remain anonymous when filing a report

Question 38

The Government Accountability Project identified 10 elements for whistle blowers to consider before deciding to pursue the matter. Which of the following is not one of those factors?

A) Establish credibility
B) Identify problems early
C) Impact on the whistleblower
D) Extend broad coverage

Question 39

The ____________ was amended in 1986.

A) False Claims Act
B) Sarbanes-Oxley Act
C) Occupational Safety and Health Administration
D) US Foreign Corrupt Practices Act

Question 40

Enforcing the ethics policy is a fairly simple challenge to address in the ethics arena.

Question 41

In a short essay, list four specific goals that would enhance the employees' knowledge of ethical issues, develop skills to support a strong ethical climate, and ensure proper ethical decision making by the employees.

Question 42

In a short essay, discuss the role of ethics officers.
Corporate ethics officers will help with the evaluation of the ethical decision-making process that may be already established in the company, or the ethics officer may be charged with creating an ethics program for the company. These officers may be charged with communicating the ethics program to employees, setting up effective reporting mechanisms, and maintaining the oversight the program established. Most importantly, the ethics officer will be charged with evaluating and investigating ethical charges.

Question 43

In the United States, the role of a corporate ethics officer moved to the forefront in the decision-making process of firms when the Federal Sentencing Guidelines for Organizations Act was passed in 1991.

Question 44

Low uncertainty avoidance not only accepts risk and ambiguity but embraces it.

Question 45

For low power distance cultures, accountability and blame should be distributed on the actual job responsibilities of the employees.

Question 46

In low-context cultures, the presentation of ethics codes and formal procedures would be perceived as irrelevant and, therefore, most likely ignored by the audience.

Question 47

Many corporations are finding themselves appointing ethics officers.

Question 48

In a short essay, list and discuss the different cultural dimensions, according to Geert Hofstede, that can impact both the message of the ethics training program and how the message is presented to its employees around the world.

Question 49

Many companies find that setting up hotlines and other reporting mechanisms for reporting environmental programs is quite difficult to accomplish.

Question 50

Whistle-blowing is the process in which an employee informs another responsible party in the company about potentially unethical behavior.

Question 51

The ethical auditing process is an evaluation tool used by management to ensure that the ethical conduct described in the code of ethics is enforced throughout the organization.

Question 52

Ethical auditing can be defined as the regular comprehensive evaluation of the compliance of the firm's ethical policies and procedures.

Question 53

In a short essay, explain whistle-blowing and list the four-step process that must take place before a firm is notified by a whistle-blower of potentially unethical behavior.
Whistle-blowing is the process in which an employee informs another responsible party in the company about potentially unethical behavior. The four-step process includes the following questions:
Question 1: Did the individual observe behavior that was illegal, immoral, or illegitimate? If yes, move to question 2.
Question 2: Should the activity be reported? If yes, move to question 3.
Question 3: Should the questioned activity be halted by the firm? If yes, move to question 4.
Question 4: What should be done concerning the whistle-blower?

Question 54

Feminine cultures focus on material goods, status, accomplishment, and reward for ambition.

Question 55

In a short essay, describe the concept of ethical auditing.
Ethical auditing can be defined as the regular comprehensive evaluation of the compliance of the firm's ethical policies and procedures. Ethical auditing attempts to look at an organization's faithfulness to its ethics program. This includes the mission in conjunction with the ethics code. Most important, an ethics audit will help an organization recognize risks relates to questionable practices in the organization. The ethical auditing process is an evaluation tool used by management to ensure that the ethical conduct described in the code of ethics is enforced throughout the organization.