Deck 10: Making It Stick: Doing Whats Right in a Competitive Market

Question 1

Typical markets represent federal, state, and local officials who simplify and reduce rules and regulations, thus discouraging firms from hiring more people and paying more taxes.

Answer 1

False
Explanation: Demanding federal, state, and local officials who burden firms with more rules and regulations while encouraging them to hire more people and pay more taxes are characteristic of most markets.

Question 2

According to the Institute of Business Ethics, an organization should create an original model and not pick a well-tested model while creating a code of ethics.

Answer 2

False
Explanation: According to the Institute of Business Ethics, an organization should pick a well-tested model while creating a code of ethics.

Question 3

Hiring an ethics officer is the first stage in the process of making ethical behavior sustainable.

Answer 3

False
Explanation: The first stage in the process of making ethical behavior sustainable for an organization is to establish a code of ethics.

Question 4

Supporting the code of ethics with extensive training for every member of the organization is the first stage in making ethical behavior sustainable for an organization.

Question 5

Sustainable ethics in a culture are those that persist within the operational policies of the organization long after the latest public scandal or the latest management buzzword.

Question 6

The audience for the code of ethics of an organization includes only its employees.

Question 7

A code of ethics is a guide that covers every possible event for employees.

Question 8

The Institute of Business Ethics suggests that an organization should get an endorsement from the chairperson and the board while creating a code of ethics from scratch.

Question 9

Impatient stockholders wanting the stock price to rise each and every quarter are representative of most markets.

Question 10

The real test of any company's ethics policy comes when one of its employees is presented with a potentially unethical situation.

Question 11

A company's commitment to ethical behavior impacts only the lower level of management and those departments that deal directly with customers.

Question 12

A well-written code of ethics can capture what an organization understands ethical behavior to mean.

Question 13

Employees and stakeholders of a company are required to follow their company's code of ethics strictly.

Question 14

There is no perfect model for a code of ethics.

Question 15

Celebrating and rewarding the ethical behavior demonstrated by an organization's employees is the last stage in making ethical behavior sustainable for an organization.

Question 16

In an organization, the commitment to ethical behavior must be documented in a code of ethics, so that everyone begins from the same starting point.

Question 17

In order to make ethical behavior sustainable, an organization requires commitment solely from the top management.

Question 18

It is important to establish an extensive training program to support the published code of ethics of a company.

Question 19

A well-written code of ethics can establish a detailed guide to acceptable behavior.

Question 20

Demanding customers who want new and better products and services at lower prices represent a typical market.

Question 21

Every company's ethics policy should state that awarding prizes to employees for good ethical behavior should be avoided.

Question 22

The chief responsibility of an ethics officer is to assess an organization's corporate image amongst its competitors.

Question 23

Reactive ethical policies of a company are the policies that result when it develops a clear sense of what it stands for as an ethical organization.

Question 24

Proactive ethical policies of an organization are the policies that result when it is driven by events and/or a fear of future events.

Question 25

A company's commitment to ethical behavior affects:

A)only the operational departments that deal with customers.
B)only the strategic departments that deal with the major clients.
C)every managerial level and every department of the organization equally and increases its efficiency.
D)the employees in an adverse manner, as they are always worried about the consequences of their actions.

Question 26

A carefully "wordsmithed" document and carefully positioned press releases suggest that an organization is strictly following the policy of transparency.

Question 27

Employees in all job functions need to be familiar with the company's code of ethics.

Question 28

Which of the following is the first stage in making ethical behavior sustainable for a company?

A)Hiring an ethical officer
B)Establishing a code of ethics
C)Rewarding ethical behavior demonstrated by employees
D)Supporting the code of ethics with extensive training for every member of the organization

Question 29

Organizational integrity is a characteristic of publicly committing to the highest professional standards and sticking to that commitment.

Question 30

The role of an ethics officer is to enforce the code of ethics and provide support to any employees who witness unethical behavior.

Question 31

When an individual is looking to manage the reputation and policies of an organization, the commitment to doing the right thing becomes more about following the written ethics policy than about any sense of organizational integrity.

Question 32

A transparent organization tends to avoid open and honest communication with all its stakeholders.

Question 33

Which of the following statements is true of sustainable ethics?

A)An organization requires commitment only from the top management in order to administer sustainable ethics.
B)The audience for the code of ethics includes selected stakeholders.
C)An organization's commitment to ethical behavior must be documented in a code of ethics for everyone to begin from the same starting point.
D)The audience for the code of ethics excludes investors, customers, and suppliers of the organization.

Question 34

Smaller companies need to include their code of ethics as part of any strategic planning exercise to make sure it is as up to date as possible.

Question 35

_____ is ethical behavior that persists long after the latest public scandal or the latest management buzzword.

A)Universal ethics
B)Sustainable ethics
C)Virtue ethics
D)Applied ethics

Question 36

HP Chase Inc., an investment banking firm, has decided to make ethical behavior sustainable in its organization. It has set up the process of monitoring ethical behavior by establishing a code of ethics. Which of the following stages is HP Chase Inc. most likely to undertake next?

A)Reward ethical behavior demonstrated by the board of directors
B)Hire an ethics officer
C)Reward ethical behavior demonstrated by employees
D)Support the code of ethics with extensive training for every member of the organization

Question 37

Since the code of ethics cannot capture every possible example, each department of an organization should apply the code to examples that arise in its area.

Question 38

True ethical policies are proactive, and occur when a company develops a clear sense of what it stands for as an ethical organization.

Question 39

A company should avoid communicating its ethics policy to external stakeholders.

Question 40

The continued growth of technology will present new situations for ethical dilemmas, thus, a company's code of ethics needs to be rewritten on a regular basis.

Question 41

According to the documentation of a survey conducted by the Ethics and Compliance Officers Association survey, which of the following responsibilities ranks lowest in the category of the main responsibilities of an ethics officer?

A)Training design
B)Organizationwide communications
C)Oversight of hotline/guideline/internal reporting
D)Conducting investigations of wrongdoing

Question 42

Which of the following statements is most likely to be true of an organization's code of ethics?

A)There are a few perfect models for a code of ethics.
B)The audience for a code of ethics includes only the shareholders of an organization.
C)The code of ethics of an organization captures every possible event from each department.
D)The code of ethics is written for the employees of an organization, and the stakeholders are not required to follow it.

Question 43

Which of the following statements is true of the code of ethics of an organization?

A)The code of ethics is highly unlikely to be created from scratch.
B)The code of ethics is unlikely to include detailed accounts of punishments for violations of the code.
C)The code of ethics does not have a perfect model.
D)The audience for a code of ethics includes only the organization's customers.

Question 44

According to the documentation of a survey conducted by the Ethics and Compliance Officers Association, which of the following responsibilities ranks highest among the chief responsibilities of an ethics officer?

A)Establishing a loyal customer base
B)Conducting surveys with customers to improve customer service
C)Overlooking hotline/guideline/internal reporting
D)Maintaining the information systems in the organization

Question 45

Derek oversees the investigation of wrongdoings in his organization and provides additional guidance and support to the employees. He also develops training programs for every department to maintain organizational conduct. Which of the following positions does Derek most likely hold in his company?

A)Chief knowledge officer
B)Assessing officer
C)Ethics officer
D)Chief analytics officer

Question 46

Walter Warburg & Co., a new investment banking firm, has dismissed the idea of establishing a code of ethics for its employees. Which of the following consequences is most likely to take place as a result of this decision?

A)It can now clearly state policies for behavior in specific situations.
B)It can capture distinctly what the organization understands ethical behavior to mean.
C)It will not be allowed to operate, as having a written code of ethics is mandatory in every organization.
D)It cannot document punishments for the violation of ethical policies.

Question 47

In the context of the creation of a code of ethics, the Institute of Business Ethics advises companies:

A)to hire young trainees to conduct research and formulate ethical policies.
B)to put the code on the organization's website, and not to send it to all employees, suppliers, and other stakeholders.
C)to introduce practical examples of the code in all company internal (and external) training programs and induction courses.
D)not to try out the code first, as no piloting is required.

Question 48

Which of the following is most likely to be the next stage in making ethical behavior sustainable for an organization after it promotes its commitment to ethical behavior?

A)Continuously monitoring the ethical behavior of its employees as the company grows
B)Hiring an ethics officer
C)Celebrating and rewarding the ethical behavior demonstrated by its employees
D)Supporting the code of ethics with extensive training for every member of the organization

Question 49

Which of the following elements is most likely be included by an organization in its code of ethics?

A)The key performance indicators to be used in appraisals
B)The policies for behavior in specific situations
C)The criteria for claiming fringe benefits
D)The policies related to the number of permissible leaves

Question 50

The _____ of an organization is the senior executive responsible for monitoring its moral standards both internally and externally.

A)ethics officer
B)assessing officer
C)chief knowledge officer
D)chief analytics officer

Question 51

Which of the following statements is true of ethics officers?

A)They must be hired from outside the organization.
B)Their chief responsibility is to compare the code of ethics of different companies.
C)Their role is never developed as a separate department in an organization.
D)They monitor the ethical performance of the organization both internally and externally.

Question 52

Edmund has been recently appointed as executive in-charge of the code of conduct for Elmer Enterprises. He administers the code of conduct among the organization's employees and oversees the investigations of wrongdoings in the organization. He also provides additional guidance and support to the employees. Edmund is most likely to be the _____ of the organization.

A)chief operations officer
B)ethics officer
C)guidance officer
D)chief investigating officer

Question 53

Altra Partners (AP) believes in maintaining sustainable ethics. It has recently established a code of ethics and organized comprehensive training sessions for all its members. Which of the following steps is most likely to be undertaken next by AP?

A)Hiring an ethics officer
B)Promoting ethical behavior among its stakeholders
C)Celebrating and rewarding the ethical behavior demonstrated by its employees
D)Monitoring the ethical behavior of its employees

Question 54

Which of the following steps is the immediate next stage in making ethical behavior sustainable for a company after it hires an ethics officer?

A)Monitoring the ethical behavior of its employees continuously as the company grows
B)Producing and distributing a company code of conduct among its employees
C)Celebrating and rewarding the ethical behavior demonstrated by its employees
D)Supporting the code of ethics with extensive training for every member of the organization

Question 55

Arthur and Nicole are arguing over the creation of a code of ethics for an organization. Arthur believes that it would be good for organizations to follow the advice from the Institute of Business Ethics before creating the code of ethics, while Nicole disagrees with him. Which of the following actions would an organization take if it agrees with Arthur?

A)The organization would develop its own model rather than picking a well-tested model.
B)The organization would put the code on its website rather than sending it to all employees, suppliers, and others.
C)The organization would conduct an extensive survey involving every employee rather than getting an endorsement from the board.
D)The organization would determine the topics on which employees require guidance.

Question 56

Which of the following statements is a piece of advice from the Institute of Business Ethics for creating a code of ethics?

A)The company's competitors should be completely ignored when framing the code of ethics.
B)The involvement of external parties should be avoided during the creation of drafts.
C)The code should be publicly shared on platforms associated with the company.
D)The code should be tested on a sample consisting solely of top managerial employees.

Question 57

Which of the following statements is advice from the Institute of Business Ethics for creating a code of ethics from scratch?

A)Get an endorsement from the chairperson and the board.
B)Put the code on the organization's website rather than sending it to all stakeholders individually.
C)Use a framework that includes the customers, but not the competitors.
D)Pilot-test the code solely on lower-level, operational employees.

Question 58

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 the fulfillment of ethical policies.

Question 59

Downerz Enterprises (DE) has been in the news for fraud by one its directors. As a result, the trustees of DE have appointed a new director who has established a strict code of ethics. He has announced extensive training for every member of the organization. An ethics officer has also been hired by DE. Which of the following steps is most likely to be taken next by the new director to maintain ethical behavior in the organization?

A)Publish the code of conduct and send it to all its stakeholders.
B)Promote DE's commitment to ethical behavior.
C)Celebrate and reward the ethical behavior demonstrated by its employees.
D)Support the code of ethics with extensive training for the senior managers of the organization.

Question 60

The audience for the code of ethics of an organization should include the:

A)competitors of the organization who copy their code of ethics.
B)investors of the organization.
C)external agencies of the organization who assist in framing the code of ethics.
D)past employees of the organization.

Question 61

Brenner Inc. (BI) is formulating its ethics policy with the goal of increasing employee loyalty and improving customer satisfaction. In order to meet these goals, BI should ensure that its policy:

A)includes threats of punishments balanced with rewards.
B)excludes low-performing departments from sharing their experiences.
C)includes only the internal stakeholders.
D)excludes awarding trainees in order to avoid upsetting the senior members of the organization.

Question 62

Which of the following actions is most likely to lead to the promotion of an organization's commitment to ethical behavior?

A)Sharing the organization's success stories exclusively with its employees
B)Responding to errors related to transactions after the clients approach the organization
C)Limiting the participation in Ethics Day celebrations solely to the employees
D)Allowing employees to visit client sites to talk about the organization's code of ethics

Question 63

Some of the employees, including the top managers and the board of directors, of Warburges Inc. have been in the news lately for accepting bribes and using corporate resources for personal expenses. Which of the following characteristics did the firm fail to demonstrate?

A)Vicarious liability
B)Ethical relativism
C)Organizational integrity
D)Corporate governance

Question 64

Which of the following factors is likely to make companies revise and rewrite their codes of ethics from time to time?

A)A continuous change in the technology used by the company
B)An increase in costs due to certain codes of ethics being maintained
C)An increase in conflicts within the organization due to the implementation of the codes of ethics
D)A decline in the employees' productivity due to strict codes of ethics

Question 65

The difference between reactive and proactive policies of an organization is that:

A)unlike reactive policies, proactive policies ignore the actions the organization will most likely take to be recognized as an ethical organization.
B)reactive policies are driven by events and/or a fear of future events, whereas proactive policies are driven by a clear sense of what is construed as ethical for the organization.
C)proactive policies help monitor the ethical performance of the organization only externally, whereas reactive policies monitor the organization both internally and externally.
D)unlike proactive policies, reactive policies are true ethical policies.

Question 66

A policy that results when an organization is driven by events and/or a fear of future events is known as a _____.

A)distributive ethical policy
B)reactive ethical policy
C)secure ethical policy
D)defensive ethical policy

Question 67

A policy that results when a company develops a clear sense of what it stands for as an ethical organization is known as a _____.

A)secure ethical policy
B)reactive ethical policy
C)defensive ethical policy
D)proactive ethical policy

Question 68

_____ describes the characteristic of publicly committing to the highest level of professional standards and then sticking to that commitment.

A)Organizational integrity
B)Vicarious liability
C)Corporate governance
D)Ethical relativism

Question 69

Which of the following risks is most likely to occur as a result of organizational transparency?

A)Loss of market advantage through corporate espionage
B)Loss of trust among employees
C)Rise in costs due to maintenance of transparency
D)Decline of productivity of employees

Question 70

Making ethical behavior _____ requires the involvement of every member of the organization in committing to a formal structure to support an ongoing process of monitoring and enforcement.

Question 71

The hiring of a _____ represents a formal commitment to the management and leadership of an organization's ethics program.

Question 72

The audience for the code of ethics would be every _____ of the organization.

Question 73

Bretton Inc. (BI), a multinational corporation, releases detailed financial statements at the end of every quarter of a year. It is open and honest with its clients in all communication and clearly states the terms and conditions of its contracts. In this scenario, which of the following organizational characteristics is best illustrated by BI?

A)Conformity
B)Transparency
C)Organizational integrity
D)Vicarious liability

Question 74

The first stage in the process of making ethical behavior sustainable for an organization is to establish a _____.

Question 75

In the context of a company's ethics policy, which of the following actions should an organization avoid taking?

A)Awarding prizes for ethical behavior
B)Declaring an Ethics Day and allowing every department to share its success stories
C)Communicating only to internal stakeholders
D)Recognizing employees who represent the standards of behavior to which the company is committed

Question 76

An ethical culture is deemed to be _____ if it persists within the operational policies of the organization long after the latest public scandal or the latest management buzzword.

Question 77

Which of the following statements is true of transparency?

A)It provides avenues to increase organizational efficiency.
B)It helps organizations save on taxes and other costs.
C)It is a rare trait even in ethically driven organizations.
D)It does not pose any risk to confidential intellectual property.

Question 78

A well-written _____ establishes a detailed guide to acceptable behavior in an organization.

Question 79

_____ refers to ethical behavior that persists long after the latest public scandal or the latest management buzzword.

Question 80

_____ in business means that stakeholders have visibility deep into the processes and information of an organization.

A)Transparency
B)Conformity
C)Vicarious liability
D)Organizational integrity