PART 1

Question 1

 Both individual ethics and organizational ethics have an impact on an employee’s

 Answer

 productivity.

 personal happiness.

 compensation.

 fitness level.

 ethical intention.

 Question 2

 Which of the following is not a form of retaliation commonly experienced by whistle-blowers?

 Answer

 Relocation or reassignment

 No promotion or raises

 The cold shoulder by coworkers

 Exclusion from work activities

 Praise by supervisors for their honesty

 Question 3

 Motivation is defined as

 Answer

 a person’s incentive or drive to work.

 a force within the individual that focuses his or her behavior on achieving a goal.

 personal ambition without regard to the impact on others.

 a desire to be finished with a project.

 individual goals.

 Question 4

 The ability to influence the behavior of others by offering them something desirable is best described as

 Answer

 coercive power.

 reward power.

 expert power.

 legitimate power.

 referent power.

Question 5

The exacting organizational culture is interested in

Answer

performance but has little concern for employees.

investors’ impressions of profitability.

maintaining a strong corporate culture.

employees and performance.

employees’ impressions

Question 6

The ________ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control.

Answer

democratic

coaching

affiliative

coercive

pacesetting

Question 7

To motivate employees, an organization offers ________ to ________ employees to work toward organizational objectives.

Answer

punishment; force

peer pressure; guilt

incentives; encourage

rewards; bribe

threats; frighten

Question 8

A cultural audit may be used to identify

Answer

how cultured a firm’s employees are.

unethical employees.

unethical organizations.

an organization’s culture.

organizational structure.

Question 9

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

Answer

reporting to the U.S. Sentencing Commission on the company’s progress in avoiding misconduct.

installation of an ethics hotline.

payment of any penalties levied.

appointment of an appropriate high-level manager to oversee the company’s program.

divestiture of all assets.

Question 10

Organizational ________ can contribute to diminished employee trust and increased employee turnover.

Answer

leadership succession

compensation policies

ethics programs

rules

misconduct

Question 11

Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct?

Answer

Conduct orientation

Values orientation

Coercive orientation

Obedience orientation

Compliance orientation

Question 12

In the absence of ethics programs, employees are likely to make decisions based on

Answer

their observations of how their coworkers and superiors behave.

how they and their family members behave at home.

their conscience.

their religious values.

 their family values

Question 13

A strong ethics program includes all of the following elements except

Answer

a clause promising good stock market performance.

a written code of conduct or ethics.

formal ethics training.

auditing, monitoring, enforcement, and revision of standards.

an ethics officer to oversee the program

Question 14

For an ethical compliance program to properly function,

Answer

consistent enforcement and disciplinary action are essential.

employees must be monitored using any means necessary.

it is not necessary to set measurable program objectives.

the same program should be used in all countries of operation, regardless of cultural differences.

the company must wait until after misconduct occurs to develop a means of preventing

Question 15

In the long run, a(n) ________ orientation may be better for companies, perhaps because it increases employees’ awareness of ethics issues at work.

Answer

code

obedience

compliance

values

individual

Question 16

A(n) ________ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) ________ orientation strives to develop shared standards.

Answer

obedience; values

compliance; values

legal; values

values; compliance

values; obedience

Question 17

Which of the following is probably the best way for a manager to provide good ethics leadership?

Answer

Hire an ethics officer

Write a code of conduct

Conduct ethics audits

Set a good example

Only hire good employees

Question 18

________ is an independent assessment of the quality, accuracy, and completeness of a company’s social or ethics report.

Answer

Publication

Verification

Auditing

Analysis

Validation

Question 19

Which of the following does not have a significant impact on the success of an ethics program?

Answer

Senior management’s ability to successfully incorporate ethics into the organization

The quality of communication

The size of the company

The content of the company’s code of ethics

The frequency of communication regarding the ethical code and program

Question 20

Retaliation against employees that report misconduct is a problem in ________ cultures.

Answer

weak ethical

strong ethical

high power distance

diverse

international

Question 21

Ethics audits can help companies identify potential ________ so they can implement plans to eliminate or reduce them before they reach crisis dimensions.

Answer

competitive advantages

risks and liabilities

productivity issues

technological glitches

market opportunities

Question 22

Which of the following is not a benefit of ethics auditing?

Answer

It can improve a firm’s performance and effectiveness.

It can increase a firm’s attractiveness to investors.

It can identify potential risks.

It can harm relationships with stakeholders.

It can reduce the risks associated with misconduct.

Question 23

Which of the following is not a step in the ethics auditing process?

Answer

Secure commitment of top executives and directors.

Review organizational mission, goals, values and policies, and define ethical priorities.

Report the results to the U.S. Sentencing Commission.

Collect and analyze relevant information.

Verify the results.

Question 24

What should be the first step in the auditing process?

Answer

Secure the commitment of top executives and directors

Define the scope of the audit

Establish a committee to oversee the audit

Collect and analyze data

Review organizational mission, goals, values, and policies

Question 25

_______ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization’s success.

Answer

Customers

Employees

Special interest groups

Competitors

Legislators

PART 2

Question 1

The ________ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations.

Answer

International Monetary Fund

United Nations

World Trade Organization

North American Free Trade Act

European Union

Question 2

Who argued during the 1930s that the state could stimulate economic growth and improve stability in the private sector?

Answer

Adam Smith

John Maynard Keynes

Milton Friedman

Herbert Hoover

Geert Hofstede

Question 3

Risk compartmentalization occurs when

Answer

companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically.

all profit centers within a corporation are aware of the code of ethics.

all profit centers within an organization become aware of the consequences of competitors’ actions.

various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.

ethics and compliance programs reduce the risk of misconduct

Question 4

The growth of the Internet and differing security laws between countries has led to an increase in concern for the human right of

Answer

religion.

a secure job.

healthcare.

privacy.

freedom of speech

Question 5

When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating

are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad. This practice is called

Answer

self-reference criterion.

country cultural values.

consumerism.

cultural relativism.

dumping

Question 6

________ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the “invisible hand.”

Answer

Consumerism

Cultural relativism

Social democracy

Laissez-fair

Bimodal wealth distribution

Question 7

Which of the following has the power to enact legally binding ground rules for international commerce and trade policy?

Answer

Global Sullivan Principles

World Trade Organization

Global Sullivan Organization

Federal Trade Commission

 

Global Commerce Association

Question 8

________ involves transactions across national boundaries. It is a practice that brings together people who have different cultures, values, laws, and ethical standards.

Answer

Global business

Country cultural values

Social democracy

Cultural relativism

Bimodal wealth distribution

Question 9

________ is a two-way process in which the communicator communicates with superiors and subordinates.

Answer

Cooperation

Transparency

Leader-follower congruence

Reporting

Collaboration

Question 10

Which type of leader relies on participation and teamwork to reach collaborative decisions?

Answer

Transformational

Coercive

Democratic

Coaching

Pacesetting

Question 11

Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking?

Answer

Authoritative leadership

Coaching leadership

Pacesetting leadership

Coercive leadership

Affiliative leadership

Question 12

________ and reporting are two major dimensions of ethical communication.

Answer

Collaboration

Transparency

Recognition

Listening

Compromising

Question 13

________ are a primary influence on employee’s ethical behavior because they are role models for the organization’s values.

Answer

Friends

Parents

Peers

Coworkers

Leaders

Question 14

These leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders.

Answer

Transactional

Compromising

Transformational

quantitative

Authentic

Question 15

________ occurs when one or more group members feel pressured to conform to the group’s decision even if they personally disagree.

Answer

Group polarization

Leader-follower congruence

Groupthink

Competition

Conflict

Question 16

________ leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders.

Answer

Authentic

Coaching

Transformational

Transactional

Pacesetter

Question 17

Although limiting urban sprawl creates disadvantages for ________, many businesses can benefit from urban renewal movements that reduce sprawl.

Answer

car and oil companies

the airline industry

the railroad industry

service oriented companies

humans and animals

Question 18

Which industry invests the most in alternative clean energy sources?

Answer

The automobile industry

The clothing industry

The airline industry

The federal government

The oil and gas industry

Question 19

The Clean Air Act:

Answer

Allowed the EPA to track industrial chemicals

Focuses on promoting alternative forms of energy

Established national air quality standards

Provides tax benefits to consumers who purchase hybrid cars

Focuses on reducing pollution through cost-effective change

Question 20

Which option includes the assessment and improvement of business strategies, economic ectors, work practices, technologies, and lifestyles while maintaining the natural environment?

Answer

Competitive advantage

Marketing

Sustainability

Greenwashing

Risk analysis

Question 21

Geothermal energy provides ________ and is a more dependable energy source than some other forms of alternative energy.

Answer

heat from the sun

a radiated heat

heat from steam

a constant source of heat

a dry heat

Question 22

Stakeholder assessment is an important part of a ________approach to environmental issues.

Answer

low-commitment

medium-commitment

high-commitment

hands-off

hands-on

Question 23

All of these are ways of reducing pollution, except:

Answer

Designing environmentally friendly buildings

Recycling

Greenwashing

Source reduction

Sustainable agriculture

Question 24

The ________ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use.

Answer

Pollution Prevention Act

Toxic Substances Control Act

Clean Air Act

Energy Policy Act

Oil Pollution Act

Question 25

The Clean Water Act makes it illegal for anyone to discharge any pollutant from a point source directly into navigable waters without a          .

Answer

good reason

direct order

permit

inspector present

limit