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

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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 8

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

Question 9

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

Question 10

When creating a code of ethics from scratch,the Institute of Business Ethics suggests that an organization should create an original model rather than picking a well-tested model.

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

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.

Question 13

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

Question 14

There is no perfect model for a code of ethics.

Question 15

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 16

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

Question 17

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 18

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

Question 19

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

Question 20

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 21

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

Question 22

Which of the following is a characteristic of demanding creditors?

A) demanding the firm to pay loans on time
B) demanding the firm to introduce new and better products and services at lower prices
C) demanding the firm to pay more taxes
D) demanding the firm's stock prices to rise every quarter

Question 23

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

Question 24

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 25

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 26

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

Question 27

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

Question 28

Which of the following statements is true of sustainable ethics?

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

Question 29

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

Question 30

_____ 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 31

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

Question 32

The chief responsibility of an ethics officer is to assess competitors' strengths and weaknesses.

Question 33

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

Question 34

Proactive ethical policies are policies that result when organizations are driven by events and/or a fear of future events.

Question 35

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

Question 36

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 37

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

Question 38

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

Question 39

A company's commitment to ethical behavior impacts:

A) only the lower managerial level and those departments that deal directly with customers.
B) only the middle managerial level and those departments that deal directly with customers.
C) every managerial level and every department of the organization.
D) the top managerial level and the HR department of the organization exclusively.

Question 40

The Ethics and Compliance Officers Association is a professional group of ethics and compliance officers with over 1,000 members.

Question 41

After hiring an ethics officer,which of the following is the immediate next stage in making ethical behavior sustainable for a company?

A) Monitoring the ethical behavior of employees continuously as the company grows
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 42

Downerz Enterprises (DE)was in the news for misappropriation of pension funds by one its directors.In wake of the recent scandals,the trustees of DE appointed a new director who established a code of ethics.He announced extensive training for every member of the organization.An ethics officer was also hired by DE.Which of the following is most likely the immediate next step that the new director should take to maintain ethical behavior?

A) Monitor the ethical behavior of employees
B) Promote DE's commitment to ethical behavior
C) Reward ethical behavior demonstrated by employees
D) Support the code of ethics with extensive training for senior management

Question 43

Which of the following is an accurate statement about 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 captures every possible event from each department of an organization.
D) The code of ethics is written for the employees to follow,and the stakeholders aren't required to follow it.

Question 44

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

A) The code of ethics cannot be created from scratch.
B) The audience for a code of ethics includes only the shareholders of an organization.
C) There is no perfect model for a code of ethics.
D) The audience for a code of ethics does not include investors,customers,and suppliers of an organization.

Question 45

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

A) moderators
B) stakeholders
C) mediators
D) statutory auditors

Question 46

Altra Partners (AP)believes that a company's commitment to ethical behavior impacts every managerial level and every department of the organization.It has recently established a code of ethics and started an extensive training for every member of the organization.Which of the following steps is most likely to be undertaken by AP next?

A) Hire an ethics officer
B) Promote ethical behavior among shareholders
C) Reward ethical behavior demonstrated by employees
D) Monitor ethical behavior of the employees

Question 47

Derek oversees the investigations 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 48

Walter Warburg & Co.,a new investment banking firm,has dismissed the idea of establishing a code of ethics for its workplace.Which of the following is the most likely consequence?

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 49

After promoting an organization's commitment to ethical behavior,which of the following should be the immediate next stage in making ethical behavior sustainable for the company?

A) Continuously monitor the ethical behavior of employees as the company grows
B) Establish a code of ethics
C) Reward the ethical behavior demonstrated by its employees
D) Support the code of ethics with extensive training for every member of the organization

Question 50

For creating a code of ethics,the Institute of Business Ethics advises companies:

A) not to pick a well-tested model.
B) to put the code on the organization's website rather than sending it to all employees,suppliers,and others.
C) to introduce practical examples of the code in all company internal (and external)training programs.
D) not to try out the code first as no piloting is required.

Question 51

According to the Ethics and Compliance Officers Association survey,which of the following is ranked 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 52

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 fulfillment of ethical policies.

Question 53

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

A) Get endorsement from the chairperson and the board.
B) Put the code on the organizations website rather than sending it to all employees,suppliers,and others.
C) Do not pick a well-tested model.
D) Do not try out the code first as no piloting is required for a company's code of conduct.

Question 54

Arthur and Nicole are having an argument over the creation of a code of ethics for an organization.Arthur is of the view that it would be good for organizations to follow advice from the Institute of Business Ethics before creating a code of ethics,while Nicole disagrees with him.Which of the following advices would an organization follow 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 the organization's 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 endorsement from the board for the code of ethics.
D) The organization would determine the topics on which employees require guidance.

Question 55

HP Chase Inc.,an investment banking firm,has decided to make ethical behavior sustainable for the organization.It has established the process of monitoring and enforcement of ethical behavior by establishing a code of ethics.Which of the following is the step that HP Chase Inc.is 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 56

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

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

Question 57

Which of the following statements is true of an ethics officer?

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

Question 58

Which of the following topics would be elaborated in a company's code of ethics?

A) Salaries and performance incentives for employees
B) Policies for behavior in specific situations
C) Policies for claiming medical benefits
D) Leave policies for employees

Question 59

According to the Ethics and Compliance Officers Association,which of the following is most likely the chief responsibility of an ethics officer?

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

Question 60

Edmund has been appointed as the executive in-charge of the code of conduct for Elmer Enterprises.He enforces the code of conduct among employees and oversees the investigations of wrong doings in the organization.He also provides additional guidance and support to employees.Edmund is a(n)_____.

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

Question 61

A(n)_____ is a senior executive responsible for monitoring an organization's ethical performance both internally and externally.

Question 62

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 63

An ethics policy commits a company to doing the right thing for all those who are affected by it; therefore,a company must share the message with all of its _____ -both inside and outside the company.

Question 64

Aragon Enterprises (AE)and Brenner Inc.(BI)are formulating their company's ethics policy with the goal of increasing employee loyalty and improving customer satisfaction.In order to meet these goals,AE and BI should ensure that:

A) the policy includes threats of punishments balanced with rewards.
B) the policy avoids making promises for rewards to employees.
C) the policy solely includes the internal stakeholders.
D) the policy avoids celebrating particular instances of good ethical behavior.

Question 65

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

Question 66

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

Question 67

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

Question 68

Which of the following should an organization avoid doing with respect to a company's ethics policy?

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

Question 69

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

Question 70

Policies that result when organizations are driven by events and/or a fear of future events are called _____.

Question 71

The difference between reactive and proactive policies is that:

A) unlike reactive policies,proactive policies ignore the actions the firm 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 72

Policies that result when a company develops a clear sense of what it stands for as an ethical organization are called _____.

A) distributive policies
B) reactive policies
C) constituent policies
D) proactive policies

Question 73

Policies that result when organizations are driven by events and/or a fear of future events are called _____.

A) distributive policies
B) reactive policies
C) constituent policies
D) passive policies

Question 74

For an ethical culture to be _____,it has to persist within the operational policies of the organization long after the latest public scandal or the latest management buzzword.

Question 75

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 communications.Also,BI clearly states the terms and conditions of the contracts to its clients.Which of the following organizational characteristics is illustrated by BI in this scenario?

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

Question 76

_____ is a characteristic of an organization that maintains open and honest communications with all its stakeholders.

Question 77

Some of the employees,including top managers and 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 did the firm fail to demonstrate?

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

Question 78

_____ 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

Question 79

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

Question 80

_____ describes the characteristic of public commitment 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