Chapter 8 Business Ethics

31 August 2022
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Organizations can become "bad barrels" because
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the pressure to succeed creates opportunities that reward unethical decisions.
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____ serve as a central contact point where critical comments, dilemmas, and advice can be assigned to the person most appropriate for handling a specific case.
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Hotlines
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In the absence of ethics programs, employees are likely to make decisions based on
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their observations of how their coworkers and superiors behave.
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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.
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board of directors
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In the "bad apple-bad barrel" analogy, the bad barrel refers to
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an unethical corporate culture.
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At the heart of the Federal Sentencing Guidelines for Organizations is a
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carrot-and-stick philosophy that rewards efforts to improve ethics.
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The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is usually the
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ethics officer.
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The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually
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tolerate misconduct.
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_____ are formal statements that describe what an organization expects of its employees in terms of ethical behavior.
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Codes of conduct
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Because a corporation can be considered a moral agent, it is therefore
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responsible to society for its actions.
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Which of the following is the most comprehensive?
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Code of ethics
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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?
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Systems for monitoring, auditing, and reporting misconduct
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Which of the following is true about a compliance orientation?
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A compliance orientation can aid in organizational ethical decision-making.
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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.
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compliance; values
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A strong ethics program includes all of the following elements except
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a clause promising good stock market performance.
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_____ may be more inclined to engage in unethical organizational conduct because of social isolation that creates insensitivity and a lower level of motivation to regulate ethical decision making.
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Top managers
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Which of the following is not a main goal of successful ethics training programs?
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Allow employees to solve ethical issues using their best judgment.
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Which of the following statements about training is false?
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It can dictate personal ethics on the job so employees no longer have differences in beliefs.
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One common problem found with corporate codes of ethics is that the codes were written too legalistically. ​
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True
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​The support of top management is essential to the successful effectiveness of an ethics and compliance program.
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True
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With regard to ethics, training and communication initiatives should reflect
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the unique characteristics of an organization.
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What is one of the goals of ethics training?
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To identify key risk areas employees will face.
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The best way to develop an ethical corporate culture is to provide character education to existing employees or hire employees with good character and sensitize them to ethical issues.​
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False
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What is the difference between a code of ethics and a code of conduct? ​
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​A code of ethics is more comprehensive than a code of conduct.
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Which of the following is an advantage of a values-based ethics program over a compliance-based one?
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Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency.
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Which of the following statements about codes of conduct is false?
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They address every ethical issue that an employee may face.
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One of the main reasons employees do not report observed misconduct is
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fear of retaliation.
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Which of the following is a common mistake made in implementing an ethics program?
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Developing materials that are not understandable by the average employee
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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.
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compliance orientation
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Top managers tend to focus on _____ because their jobs and personal identity are often connected to quarterly returns.
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financial performance
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In the long run, a(n) ______ orientation may be better for companies, perhaps because it increases employees' awareness of ethics issues at work.
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values
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Which document serves the general public and also addresses distinct groups such as stakeholders?​
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Statement of values
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To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except
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lengthy legal documents.
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What is a major problem organizations tend to have when implementing organizational ethics program?
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Top managers don't integrate codes, values, and standards into their firms' corporate cultures.
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Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct?
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Compliance Orientation
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For an ethics and compliance program to properly function,
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consistent enforcement and disciplinary action are essential.
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Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting?
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Sarbanes-Oxley Act
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When measuring the effectiveness of an ethics program, it is important to
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get input from employees.
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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
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reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct.
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What is one of the responsibilities of an ethics officer?
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Monitoring and auditing ethical conduct