Question 1

The support of top management is essential to the successful effectiveness of an ethics and compliance program.

Accepted Answer

A) True 
 B)False  True

Question 2

The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is usually the

Accepted Answer

A)  CEO.
B)  president.
C)  immediate supervisor.
D)  ethics officer.
E)  Chairman of the board. D

Question 3

What are the major features of a successful ethics training program and communication systems? Think of an example of a company with strong employee ethics training.

Accepted Answer

Refer to Table 8-5,page 228,Key Goals of Successful Ethics Training Programs.1.Identify key risk areas employees will face.2.Provide experience in dealing with hypothetical or disguised ethical issues within the industry through mini-cases,online challenges,DVDs,or other experiential learning opportunities.3.Let employees know wrongdoing will never be supported in the organization and employee evaluations will take their conduct in this area into consideration.4.Let employees know they are individually accountable for their behavior.5.Align employee conduct with organizational reputation and branding.6.Provide ongoing feedback to employees about how they are handling ethical issues.7.Allow a mechanism for employees to voice their concerns that is anonymous,but provides answers to key questions (24-hour hotlines).8.Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma they do not know how to resolve.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Aurico is a company that offers ethics hotline maintenance for organizations.Which component of the Federal Sentencing Guidelines for Organizations compliance program does this service help organizations to satisfy?

Accepted Answer

A)  Code of conduct
B)  Enforcement of standards, codes, and rules
C)  Delegation of authority to ethical persons
D)  Systems for monitoring, auditing, and reporting misconduct
E)  Ethics training

Question 6

The ultimate "stick" associated with the FSGO is fines or probation,which involves on-site observation by consultants,monitoring of the company's ethical compliance efforts,and

Accepted Answer

A)  reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct.
B)  installation of an ethics hotline.
C)  payment of any penalties levied.
D)  appointment of an appropriate high-level manager to oversee the company's program.
E)  divestiture of all assets.

Question 7

Discuss the advantages and disadvantages of implementing an ethics program with a compliance orientation versus one with a values orientation.Is one better than the other at maintaining an ethical organization?

Accepted Answer

The answer of Discuss the advantages and disadvantages of implementing...

Question 8

A _____ generates an ethical program that creates order by requiring that employees identify with and commit to specific required conduct using legal terms and statutes.

Accepted Answer

A)  values orientation
B)  code of conduct
C)  statement of values
D)  code of ethics
E)  compliance orientation

Question 9

What is one of the goals of ethics training?

Accepted Answer

A)  To completely eliminate any chances of misconduct.
B)  To identify key risk areas employees will face.
C)  To make the company look good to stakeholders.
D)  To comply with legal requirements.
E)  To train employees on how to address every ethical situation they encounter.

Question 10

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

Accepted Answer

A)  stock market
B)  board of directors
C)  middle managers
D)  customers
E)  stakeholders

Question 11

Which of the following is true about a compliance orientation?

Accepted Answer

A)  Employees are more likely to accept a compliance orienation over a values orientation.
B)  A compliance orientation is superior to a values orientation.
C)  A compliance orientation can aid in organizational ethical decision-making.
D)  The most successful companies have adopted a compliance orientation. 
E)  The use of legal terms, statutes, and contracts builds trust and shared values.

Question 12

Which of the following statements about training is false?

Accepted Answer

A)  It can educate employees about the firm's policies and expectations, as well as about relevant laws and regulations and general social standards.
B)  It can dictate personal ethics on the job so employees no longer have differences in beliefs.
C)  It can make employees aware of available resources, support systems, and designated personnel who can assist them with ethical and legal advice.
D)  It can empower employees to ask tough questions and make ethical decisions.
E)  It can affect the influence of organizational culture, coworkers and superiors, and opportunity.

Question 13

Which of the following is an advantage of a values-based ethics program over a compliance-based one?

Accepted Answer

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.

Question 14

In the "bad apple-bad barrel" analogy,the bad barrel refers to

Accepted Answer

A)  unethical employees.
B)  a corrupt society.
C)  a criminal organization.
D)  indifferent management.
E)  an unethical corporate culture.

Question 15

With regard to ethics,training and communication initiatives should reflect

Accepted Answer

A)  the structure of the board of directors.
B)  the organization's stock performance.
C)  the organization's size.
D)  the unique characteristics of an organization.
E)  the self-interest of the CEO.

Question 16

Companies should model their ethics training and communication initiatives after those of their competitors'.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements about codes of conduct is false?

Accepted Answer

A)  They are formal statements of what an organization expects of its employees.
B)  They address every ethical issue that an employee may face.
C)  They help employees determine what behaviors are acceptable.
D)  They provide rules and guidelines for employees to follow.
E)  They should be specific enough to be reasonably capable of preventing misconduct.

Question 18

One of the main reasons employees do not report observed misconduct is

Accepted Answer

A)  apathy.
B)  most employees do not observe any misconduct.
C)  fear of retaliation.
D)  laws and regulations do not protect employees.
E)  hotlines do not work well.

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

For an ethics and compliance program to properly function,

Accepted Answer

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.

Exam 8: Developing an Effective Ethics Program

The support of top management is essential to the successful effectiveness of an ethics and compliance program.

The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is usually the

What are the major features of a successful ethics training program and communication systems? Think of an example of a company with strong employee ethics training.

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

Aurico is a company that offers ethics hotline maintenance for organizations.Which component of the Federal Sentencing Guidelines for Organizations compliance program does this service help organizations to satisfy?

The ultimate "stick" associated with the FSGO is fines or probation,which involves on-site observation by consultants,monitoring of the company's ethical compliance efforts,and

Discuss the advantages and disadvantages of implementing an ethics program with a compliance orientation versus one with a values orientation.Is one better than the other at maintaining an ethical organization?

A _____ generates an ethical program that creates order by requiring that employees identify with and commit to specific required conduct using legal terms and statutes.

What is one of the goals of ethics training?

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

Which of the following is true about a compliance orientation?

Which of the following statements about training is false?

Which of the following is an advantage of a values-based ethics program over a compliance-based one?

In the "bad apple-bad barrel" analogy,the bad barrel refers to

With regard to ethics,training and communication initiatives should reflect

Companies should model their ethics training and communication initiatives after those of their competitors'.

Which of the following statements about codes of conduct is false?

One of the main reasons employees do not report observed misconduct is

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.

For an ethics and compliance program to properly function,