Deck 4: Codes of Ethics and Codes of Conduct

Question 1

Which of the following values is among the six most commonly found in professional codes of ethics?

A) hard work
B) extroversion
C) citizenship
D) loyalty

Answer 1

C

Question 2

Which of the following statements about formal development of an ethics program is accurate?

A) A company should have an ethics office even when it is very new and small.
B) The company should have lawyers decide when to expand ethics programs to larger levels.
C) The ethics code is embodied by entry-level employees in small organizations.
D) It's a good idea to put a specific individual in charge of managing ethics in a 50-employee company.

Answer 2

D

Question 3

What effect should a code of ethics have on dialogue within an organization?

A) Help legitimize dialogue about what constitutes ethical behavior.
B) Restrict dialogue to support for ethical decision making.
C) Make employees afraid to voice concerns about their own ethical or unethical impulses.
D) Help bring legal language into conversations about ethical behavior.

Answer 3

A

Question 4

How does the text define "oath"?

A) a private code
B) a pact with oneself for ethical behavior
C) a public promise
D) a commitment to a profession's public goals and ethics

Question 5

Research has shown a positive correlation between organizations with a code of ethics and what?

A) greater tolerance for diversity
B) faster turnover
C) higher NASDAQ rating
D) greater revenue

Question 6

Which of the following is TRUE of a typical code of ethics?

A) It is often long and complicated.
B) It is unreasonable to expect the average person to abide by its principles.
C) It is typically designed by a lawyer.
D) It can help guide decisions if an ethical dilemma arises.

Question 7

Shudra is a new employee who is being pressured by her manager to do something unethical that directly violates the company's code of ethics. On what other moral support level can she rely?

A) her manager's fear of being caught
B) her coworkers' judgment about what to do
C) her industry's code of ethics
D) her manager's supervisor

Question 8

You are a member of upper management who is leading an orientation for new hires, and during your first meeting you intend to focus on business ethics. In what way should you start your meeting with the new employees?

A) Explain how the company will not tolerate failures in moral behavior.
B) Address some ethical issues specifically related to your company and industry.
C) Pass out a code of conduct and let employees have some time to read it.
D) Tell the employees not to worry about public perceptions of your industry.

Question 9

How has the adoption of codes of ethics by businesses changed over time?

A) Survival of the fittest has led fewer businesses to abide by their own codes of ethics.
B) Since the 1960s, vastly more businesses have adopted them to be more in line with public and industry expectations.
C) The rate of adoption by businesses has remained roughly the same since the 1960s.
D) The superficial adoption of codes of ethics has increased, while moral expectations of business has decreased.

Question 10

Which of the following should be avoided when writing a code of ethics?

A) descriptions of how to act
B) descriptions of how not to act
C) simple language
D) affirmative statements

Question 11

For an employee with strong moral convictions, a code of ethics would ______.

A) be his means of relating to unethical employees
B) apply only to his work life
C) apply to his work and nonwork lives
D) not be a necessary addition

Question 12

What potential formal sanction primarily prevents a lawyer or accountant from violating professional (not company) codes of ethics?

A) loss of license
B) prison time
C) loss of reputation
D) guilt

Question 13

As suggested by the text, when should a business owner or company management first begin drafting a code of ethics?

A) when the business is first conceptualized
B) when filing for a business license
C) when the first employee is hired
D) when the business reaches around 10 employees

Question 14

In which of the following ways does a code of conduct differ from a code of ethics?

A) It is explicitly written.
B) It deals with specific situations.
C) It is broader in nature.
D) It includes a values statement.

Question 15

A firm wants to be publicly listed on the NASDAQ. What is required for this from an ethics standpoint?

A) Have a code of ethics for upper management.
B) Have a publicly available code of ethics for all employees and management.
C) Publicly list the incidences and outcomes of ethics abuse lawsuits.
D) Have a publicly available code of conduct for all employees.

Question 16

Which of the following statements about the MBA oath developed by Harvard Business School students is accurate?

A) It requires the taker to reject the pursuit of personal wealth and profits.
B) It gives emphasis to the work of the individual and influence on the individual.
C) It is required of most graduates of MBA programs in the U.S.
D) It requires a promise to hold up proper laws and contracts.

Question 17

Which of the following does a code of conduct likely contain that a code of ethics would not?

A) the description of a specific law and what it means for an employee
B) a principle that states all employees should obey the law whenever possible
C) multiple statements of values
D) broad principles that suggest ideal behavior on the whole or how an ideal person would be

Question 18

Research has shown that what three value categories show up in most codes of ethics?

A) deontological, utilitarian, and ethics of care
B) obeying the law, ethics of care, and fair use
C) kind/caring, socialist, and deontological
D) social good, utilitarian, and fair treatment

Question 19

According to the 1991 Federal Sentencing Guidelines, what happens to a company that has implemented an effective code of ethics compared to one that does not?

A) It will not be held liable when fraud lawsuits are brought against it.
B) It may receive formal financial incentives.
C) It is subject to reduced prison sentencing for management.
D) There are no formal rewards, but it has an improved reputation.

Question 20

What effect did the Sarbanes-Oxley Act have on codes of ethics and conduct in publicly traded companies?

A) It forced companies to have or refine a code of conduct.
B) It forced companies to have or refine a code of ethics.
C) It forced transparency about whether or not companies had a code of ethics or conduct.
D) It forced transparency into the nature of a company's ethics training system.

Question 21

Which of the following should be integrated into an organization's strategic planning?

A) code of ethics and employee aspirations
B) business plan and vision statement
C) mission statement and code of ethics
D) mission statement, vision statement, and code of ethics

Question 22

What is a particular benefit of using the "Code of Ethics Toolkit" created by the Ethics & Compliance Initiative?

A) designing a code that will attract ethically strong employees to the business
B) aligning an organization's code with international standards of business
C) designing codes that make employees aware of the legal ramifications of their actions
D) designing codes for different departments that fit well with organization-wide ethics

Question 23

Which of the following is held in common among the Christian, Muslim, and Jewish religions according to the 1994 interfaith declaration?

A) respecting shareholder needs
B) upholding justice
C) the importance of business as a driver of nations
D) celebrating individual achievement

Question 24

How does a code of ethics differ from an organization's vision statement?

A) It addresses acceptable behavior for specific situations, not general aspirations for behavior.
B) It describes aspirations for employee behavior, not future organizational aspiration.
C) It deals with organizational culture, not acceptable behavior in specific situations.
D) It articulates an organization's purpose, not its future aspirations.

Question 25

What are the two broad core ethical ideals of the Caux Principles for Responsible Business?

A) human dignity and collectively seeking the common good
B) human dignity and the worldwide implementation of just laws
C) freedom of action and freedom of information
D) collectively seeking the common good and worldwide implementation of just laws

Question 26

What is the purpose of using a round robin format in the work of the code-writing team?

A) It allows everyone to hear examples and decide on common themes.
B) It allows management to hear of unethical behaviors in their company.
C) It helps employees come clean about their worst impulses.
D) It brings an international and broad cultural perspective to the resulting code of ethics.

Question 27

What is the first step in the text's suggested 13 steps for creating a code of ethics as a team-building exercise?

A) Decide on the organization's ethical priorities.
B) Create a code writing team.
C) Obtain approval from organizational leaders.
D) Define a "code of ethics."

Question 28

Raleigh is in the process of developing a code-writing team for his accounting firm of 15 employees. Who in the company should be a part of this team?

A) himself and two or three trusted employees
B) everyone
C) himself and the HR director
D) a group of six or seven of the oldest and most-respected employees

Question 29

Why does the code of ethics of many large companies fail to have significance or impact?

A) It has no employee input.
B) It applies only to upper management.
C) It has too much legalese.
D) Its expectations are too high.

Question 30

When gathering a list of ethical behaviors from employees, the prompts should focus on ______.

A) the core ethical beliefs and philosophy of each employee
B) times when the employee behaved unethically
C) times when the employee witnessed unethical behavior
D) times when the employee behaved ethically or witnessed ethical behavior

Question 31

Musa has just finished taking and passing the bar exam. As part of the process of graduating and getting her degree, she takes an oath that all U.S. attorneys take. What should taking this oath suggest to her about the related profession?

A) Being an attorney is a calling that requires moral action in its duties.
B) The act of being an attorney has no moral rules, and so she must make an oath to bring them into the job with her.
C) The public has very little trust for attorneys, and such an oath is necessary to mollify them.
D) The legal profession is inherently corrupt, and oaths are necessary to increase moral behavior.

Question 32

Which of the following would be an example of "stewardship" as described by the 1994 interfaith declaration?

A) a coworker admitting to an unethical interaction with a customer
B) a CEO approving purchase of a technology that would help reduce pollution
C) a manager implementing sanctions against a department that violated the company's code of ethics
D) a customer reporting a corporate seller to the Better Business Bureau

Question 33

As recommended by the text, when should the last step in the code development process--code revision--occur?

A) a few weeks to a month after adoption
B) constantly
C) annually
D) with every ethics training workshop

Question 34

Ali started an accounting firm a year ago and has just hired his tenth employee. He decides the business needs a code of ethics. How should he begin the process of creating one?

A) He should have a legal team or lawyer draw up the basic needs of a code of ethics.
B) He should write the initial draft and then get his CFO or vice president's input.
C) He should make a template based on another organizations' code of ethics.
D) He should solicit employee input into the initial needs of the code of ethics.

Question 35

What was the core purpose of the Caux Principles for Responsible Business?

A) reducing the influence of free market capitalism in international business
B) seeking international standards in sanctions for unethical behavior
C) seeking international moral harmony in business practices
D) spreading Western business values to the developing world

Question 36

What does the government of the Netherlands require of all financial institution employees?

A) Report coworkers not abiding by an oath of integrity.
B) Show each customer and client that they have taken an oath.
C) Adopt a personal oath of moral behavior.
D) Take an oath of integrity.

Question 37

A business in a developing nation that has operated locally for many years has recently grown to a level that it is now making international deals. What is to be expected of that business?

A) change to adopt the commons standards of the three Abrahamic faiths
B) mimic the operational standards of much bigger corporations
C) remain true to its informal ways for doing business even in the international marketplace
D) change to adopt international standards for business

Question 38

Bart's company has developed a draft code for the entire accounting firm. Now having reached the step of "code alignment," they should ______.

A) compare their code to the missions and goals of each department
B) put the code up to a vote by management
C) make sure each employee's values is aligned with the code
D) compare the code to that of the larger accounting profession

Question 39

What problem do many small or medium-sized companies have with respect to codes of ethics that is less of a problem with larger companies?

A) a code of ethics that emphasizes punishment
B) a vague code of ethics
C) lacking a code of ethics
D) a "lecturing" code of ethics

Question 40

How does distribution of other organizations' codes of ethics relate to the code-writing process?

A) Distribution of others' codes of ethics should come during the development of common themes.
B) It should come at the beginning of the process to provide a good benchmark.
C) It should come after an initial draft of the code has been created to protect employee contribution.
D) Codes of other organizations should never be distributed because plagiarism is a likely result.

Question 41

A code of conduct requires input from which of the following that is not required for a code of ethics?

A) lawyers
B) employees
C) upper management
D) the president/CEO

Question 42

You are a manager of a small lumber supply company. One of your employees accepts a gratuity from a customer without being aware that it violates the company code of conduct, but after a review by managerial staff and lawyers, it is determined to have violated the code. What is the first step you should take?

A) Attempt to return the gratuity to the customer.
B) Fire the employee.
C) Ask for confidentiality from the customer.
D) Revise the code of conduct.

Question 43

What does an organization's vision statement have that its mission statement does not?

A) future aspirations for the organization
B) a description of what the organization does
C) a description of the organization's target/customers
D) a mention of ethics

Question 44

Which of the following falls under the NYSE recommended code of conduct component "Protection and Proper Use of Assets"?

A) unfair treatment of customers
B) use of corporate information for personal gain
C) employee retaliation
D) theft

Question 45

"We will earn our customers' enthusiasm through continuous improvement driven by the integrity teamwork, and innovation of GM people." This language from General Motors is part of a ______.

A) mission statement
B) vision statement
C) code of conduct
D) code of ethics

Question 46

Avani is nervous about the nature of how her employees use business gratuities. If her company is crafting a code of conduct, how should business gratuities be handled in that code?

A) Make it clear that it is never acceptable to provide or accept a gratuity.
B) Offer clear examples of when it is acceptable to provide or accept a gratuity.
C) Make it clear that exchange of gratuities should remain confidential.
D) Make it clear that gratuities and bribes are synonymous.

Question 47

Which of the following guidelines is a common baseline across companies with regard to email policy?

A) Email during work hours should be business-use only.
B) Email inside the workplace should remain confidential.
C) Managers should periodically review the content of employee email.
D) Use of your personal email address should be kept to a minimum during business hours.

Question 48

Which of the following is an important component of the NYSE's recommended inclusion of "Encouraging the Reporting of Any Illegal or Unethical Behavior"?

A) protecting nonpublic information
B) preventing retaliation
C) avoiding waste
D) implement strong sanctions against employees

Question 49

An employee sends a racist joke to a coworker via their company email account. A manager discovers this, and the employee is fired. The employee sues the company for violation of privacy for monitoring his email. What will a judge most likely rule?

A) The employee is entitled to damages but not to get his job back.
B) The company has the right to monitor employee email.
C) The employee has a right to private email communication.
D) The company was within its rights but must rehire the employee.

Question 50

Which of the following NYSE code of conduct recommendations specifically deals with customer relations?

A) compliance with laws, rules, and regulations
B) conflict of interest
C) corporate opportunities
D) fair dealing

Question 51

How should a code of conduct characterize a company's right to monitor employee emails sent on company computers?

A) no right to monitor
B) limited to emergency or criminal situations
C) right to monitor if it does not violate privacy
D) total right to monitor

Question 52

How do bribes differ from business gratuities?

A) In a bribe, the exchange is preceded by an articulation of a quid pro quo arrangement.
B) In a bribe, the object of value unduly influences a business decision.
C) In a bribe, the object of value has a high monetary value.
D) In a bribe, the object of value is material, not a hospitality.

Question 53

How does the text define "business gratuity"?

A) "a present, gift, hospitality, or favor for which fair market value is not paid by the recipient"
B) "a present, gift, hospitality, or favor specifically given by a non-employee for preferred treatment from an employee"
C) "a non-contractual compensation by a nonemployee in expression of gratitude for well-performed services or superior products"
D) "profits incurred by employees that are not a part of the regular commerce of an organization"

Question 54

The Society for Human Resource Management lists which of the following as inappropriate use of company email?

A) cross-department messages
B) expressing discontent of working conditions
C) Title VII violations
D) email from a work account to the employee's personal email account

Question 55

As described in the text, William George, the former chairman and CEO of Medtronic, has outlined a connection between his company's mission and values and what?

A) a strong vision statement
B) employee retention
C) ethical organizational culture
D) profits and shareholder value

Question 56

Which of the following statements about business gratuities is accurate?

A) Rules involving business gratuities are rarely included in codes of conduct.
B) They are essentially the same thing as bribes.
C) They can only be received by customers from suppliers.
D) They can be given from suppliers to customers.

Question 57

After many years of successful operation, a financial services firm uncovers a specific fraud in which employees were accepting personal gifts from clients for preferred treatment. Which of the following is most likely going to need revision as a result?

A) code of conduct
B) code of ethics
C) vision statement
D) mission statement

Question 58

What point is the text trying to make by illustrating the legal ruling in Florida that stated judges and lawyers cannot be "friends" on Facebook?

A) Codes of conduct should remain somewhat vague to encompass changing situations.
B) New societal or environmental conditions may require changes to a code of conduct.
C) Conflicts of interest should be addressed in codes of conduct.
D) Codes of ethics are often better at handling complex situations than codes of conduct.

Question 59

In which of the following ways should a company's code of ethics differ from its mission statement or vision statement?

A) It should be less subject to fluctuation with environmental changes.
B) It should have more input from management.
C) It should be less aspirational and more in line with present circumstances.
D) It should carry a greater reflection of industry expectations.

Question 60

When all the elements of a strategic plan are integrated, it should produce a(n) ______.

A) culture of efficiency in the organization
B) common "cause" for employees
C) aspirational vision for what the company will become
D) "ideal" version of the company that does not yet exist

Question 61

An employee with strong moral character and behavior has worked at a small company for many years. The company grows large enough to implement a formal code of ethics. How is this employee likely to react to that new code?

A) with resentment
B) by embracing its provisions
C) by rejecting it
D) with indifference

Question 62

Why has there likely been so little evidence of a correlation between the presence of a code of ethics and better ethical performance?

A) too many remaining opportunities for unethical behavior
B) a culture of corruption in U.S. business
C) too much legal language in codes
D) failure to communicate the code to employees

Question 63

What should an employee expect from their company's code of ethics?

A) general guidance on behavior
B) instructions on how to react to specific scenarios
C) a list of sanctions for unethical behavior
D) a description of what constitutes unethical behavior

Question 64

Which of the following accurately describes a trend related to codes of ethics in business?

A) A majority of employees now truly believe in the stated aspirations of their code of ethics.
B) Regulatory pressure is less and less a primary motivation for adopting a code of ethics.
C) There are fewer businesses with a written code of ethics, but those businesses that do have such a code have improved performance.
D) Fewer companies are demonstrating ethical issues with employees whether they have a code or not.

Question 65

After much trial and error, Morgan's financial services company finally has a written code of ethics. What should be her first step in communicating the company code of ethics to employees?

A) Have upper management memorize the code so they can serve as role models for subordinates.
B) Develop a testing system by which each employee can be quizzed about the code online.
C) Publish the code and have it distributed to every employee.
D) Choose an individual who is closely related to the code to take charge of the strategy for communication.

Question 66

Karen has decided to develop a code of ethics for her law firm by starting with the text of the code of ethics of a highly respected law firm of roughly the same size that operates in her state. What is the biggest problem with this action?

A) the threat of plagiarism
B) the missed opportunity to solicit employee input
C) the likelihood that her managers will ignore the new code
D) the likelihood that the other firm's code will not apply to issues relevant to her firm

Question 67

What can be surmised from the existence of the Sarbanes-Oxley Act?

A) There are sometimes legal requirements with respect to having a code of ethics.
B) Companies without codes of ethics are bound to violate the law.
C) Federal law requires that every company have a written code of ethics.
D) The federal government has dictated the content of codes of ethics for many companies.

Question 68

What point is the text making when it mentions Enron's 60-page Code of Conduct?

A) Having too long a code of conduct increases the chances it will be ignored by employees.
B) Having a code of conduct is meaningless unless it is matched by action.
C) Failing to have a lawyer vet or contribute to the development of the code opens the door to lax enforcement.
D) Once implemented, a solid code of conduct can reduce incidences of corporate malfeasance.

Question 69

Which of the following questions is best asked of employees during the step "gather a list of ethical behaviors from participants" in the process of making a code of ethics?

A) "Describe a situation when you behaved very ethical toward a customer."
B) "Describe a situation when you observed someone in the organization behave unethically toward a customer."
C) "Describe a situation when you behaved unethically toward a customer."
D) "Tell us what you think constitutes an ethical behavior."

Question 70

Sharod witnesses a coworker accepting a particularly lavish lunch at the expense of a client, which is a code of conduct violation. Which of the following conditions would make Sharod the most likely to report the violation to superiors?

A) Sharod knows this person has never been warned before for ethics violations.
B) Sharod knows that most of his coworkers are not aware of the specific provisions of the code.
C) Sharod knows that many coworkers would retaliate against him for reporting violations.
D) Sharod knows most of his coworkers disapprove of this kind of violation.

Question 71

Which of the following is TRUE with respect to employees and ethical culture in organizations?

A) Research has shown a net outflow of employees from organizations with a strong ethical culture.
B) Employees prefer not to be a part of high-integrity organizations because of the increased scrutiny involved.
C) Employees mostly show indifference to the ethical culture of their organization.
D) Employees prefer to be a part of high-integrity organizations.

Question 72

Which of the following is TRUE of the impact of codes of ethics on employees?

A) Employees are far more worried about their legal implications than ethical implications.
B) They are essentially useless without a high-integrity work culture.
C) They have the most impact on the behavior of employees with low moral identity.
D) They have the most impact on the behavior of already morally strong employees.

Question 73

"Employees will not accept business gratuities, meals, or gifts in excess of $15 from any client, customer, or supplier." This statement would most likely appear in a ______.

A) values statement
B) mission statement
C) code of ethics
D) code of conduct

Question 74

Which of the following is a situation or condition that would make codes of ethics and conduct particularly important?

A) a market crash that sends the company into a rough patch
B) a prolonged period of financial success
C) the hiring of a new CEO with a strong reputation for ethical leadership
D) a period during which no ethical violations have been reported

Question 75

The word "integrity" is synonymous with which of the four core values common to all three Abrahamic religions of the world?

A) justice
B) mutual respect
C) stewardship
D) honesty

Question 76

What is the last phase of the implementation of a code of ethics?

A) Use the code as a periodic assessment tool.
B) Train new employees using the code.
C) Have the code disseminated to clients and customers.
D) Have a third party evaluate the company's culture.

Question 77

A 2016 Gallup poll showed that how many employees believe in their company's stated values?

A) 11 percent
B) 27 percent
C) 42 percent
D) 68 percent

Question 78

During the "code review" step in creating a code of ethics, the draft code should go to which of the following (among others) for review?

A) legal counsel
B) employees
C) industry regulators
D) human resources consultants

Question 79

What is the best input for changing and improving a code of ethics over time?

A) industry standards
B) employee feedback
C) legal advice
D) CEO or president leadership style

Question 80

At what size should a company consider or begin to create a formal internal ethics office, according to advice by the text?

A) at 200 employees
B) at 1,000 employees
C) at 5,000 employees
D) at 10,000 employees