Multiple Choice Answers

An __________ value is where a value is a good thing in itself and is pursued for its own sake.
A. intrinsic
B. extrinsic
C. instrumental
D. external
The Greek philosopher Aristotle’s belief in individual character and integrity established the concept of __________ ethics.
A. philosophical
B. virtuous
C. moral
D. societal
__________ is a theory more focused on the outcome of your actions rather than the apparent virtue of the actions themselves.
A. Ethics for the greater good
B. Normative ethics
C. Ethical relativism
D. Utilitarianism
An ethical __________ is a situation in which there is no obvious “right” or “wrong” decision, but rather a “right” or “right” answer.
A. choice
B. dilemma
C. impasse
D. preference
The second step in the three-step process for solving an ethical problem is:
A. analyze the consequences.
B. analyze the problem.
C. make a decision.
D. analyze the actions.
All of the following are questions identified by Arthur Dorbin to resolve an ethical dilemma EXCEPT for which one?
A. What do your feelings tell you?
B. What are the alternatives?
C. What are the facts?
D. What will you think of yourself if you decide one thing or another?
__________ looks at the information available to us in resolving an ethical dilemma, and drawing conclusions based on that information in relation to our own ethical standards.
A. Ethical framework
B. Philosophical logic
C. Ethical reasoning
D. Moral reasoning
The __________ stage in Lawrence Kohlberg’s stages of ethical reasoning is focused on the avoidance of punishment and deference to power and authority.
A. “good boy/nice girl” orientation
B. law and order orientation
C. principled conscience
D. obedience and punishment orientation
At the __________ stage in Lawrence Kohlberg’s stages of ethical reasoning, a person is focused on self-chosen ethical principles that are found to be comprehensive and consistent.
A. “good boy/nice girl” orientation
B. law and order orientation
C. principled conscience
D. obedience and punishment orientation
Kohlberg’s framework offers us a clearer view into the process of:
A. resolving ethical dilemmas.
B. ethical reasoning.
C. ethical relativism.
D. applied ethics.
__________ have a share or interest in a business enterprise.
A. Shareholders
B. Board of directors
C. Stakeholders
D. Employees
Employees could be negatively impacted by unethical corporate behavior by:
A. loss of stock value.
B. loss of employment.
C. poor service quality.
D. loss of principle and interest payments.
__________ governance is the system by which business corporations are directed and controlled.
A. Local
B. State
C. Federal
D. Corporate
__________ was a major ethical dilemma in the 1980’s.
A. Drug use escalates
B. Changing work ethic
C. Bribes and illegal contracting practices
D. International corruption
Question 15 of 20 5.0 Points
__________ was a business ethics development in the 1990’s.
A. Class action lawsuits
B. Federal Corrupt Practices Act
C. Defense Industry Initiative Established
D. Anticorruption efforts grow
Question 16 of 20 5.0 Points
Global expansion brought new ethical challenges in the:
A. 2000s.
B. 1960s.
C. 1980s.
D. 1990s

Question 17 of 20 5.0 Points
__________ has introduced greater accountability for chief executive officers and boards of directors in signing off on the financial performance records of the organizations they represent.
A. Global Sullivan Principals
B. Federal Corrupt Practices Act
C. 2002 Sarbanes-Oxley Act
D. False Claims Act
Question 18 of 20 5.0 Points
The issue of corporate __________ has been advanced from an abstract debate to a core performance assessment issue with clearly established legal liabilities.
A. ethics
B. social responsibility
C. donations
D. community involvement
Question 19 of 20 5.0 Points
A situation in which there is no obvious “right” or “wrong” decision, but rather a “right” or “right” answer refers to which of these?
A. Ethical dilemma
B. Moral manifestation
C. Absolute ethics
D. Unethical dilemma
Question 20 of 20 5.0 Points
The notion that anything that isn’t specifically labeled as wrong must be okay and an open invitation for the ethically challenged employer and employee – especially if there are __________ rewards for such “creativity” within those newly expanded ethical limits.
A. implicit
B. explicit
C. undefined
D. large
Which of the following serves as a support line function to key functional areas in an organization’s value chain?
A. Advertising
B. Manufacturing
C. Human resources management
D. Customer service
From an ethical perspective, employees in each functional line area face ethical challenges and dilemmas that:
A. are common to the organization as a whole.
B. are unique to their departmental responsibilities.
C. are common to the industry.
D. can be both unique to their departmental responsibilities and common to the organization as a whole.
What is the real ethical dilemma faced by the R&D department?
A. Product costs
B. Product quality
C. Production time
D. Product originality
Marketers play the customer service card and therefore argue that since their customers are satisfied, the good outcome justifies the methods used to achieve that outcome no matter how misleading the messages or how unnecessary the product sold. This represents a __________ view of ethics.
A. utilitarian
B. universal ethics
C. descriptive
D. normative
The finance function of an organization can be divided into all of the following areas EXCEPT which of the following?
A. Auditing function
B. Financial transactions
C. Accounting function
D. Marketing function
The accounting profession is governed by a set of:
A. Generally Accepted Accounting Principles.
B. United States Accounting Principles.
C. International Financial Principles.
D. Corporate Ethical Principles.
Illegal accounting practices include all of the following EXCEPT which one?
A. Taking questionable deductions
B. Overvaluing assets
C. Deferring receipts from one quarter to the next to manage tax liabilities
D. Underreporting income for tax purposes
The least observed misconduct employees observed according to the NBES was:
A. misreporting of actual time worked.
B. abusive or intimidating behavior toward employees.
C. lying to employees and customers.
D. a situation that placed employee interests over organizational interests.
Corporate __________ is/are the actions of an organization that are targeted toward the achievement of a social benefit over and above maximizing profits for its shareholders and meeting all legal obligations.
A. social responsibilities
B. social obligations
C. conscience
D. citizenship
Corporate __________ implies that an organization is run with an awareness of its obligation to society.
A. social responsibility
B. social obligation
C. conscience
D. citizenship
The definition of corporate social responsibility assumes the corporation:
A. is operating in a competitive environment.
B. is committed to a retrenchment strategy.
C. complies with federal and state legal obligations.
D. is committed to a moderate growth strategy.
The __________ approach to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders.
A. shareholder
B. social contract
C. economic
D. instrumental
What approach to corporate management is considered simplistic because it assumes that there are no external consequences to the actions of the corporation?
A. Shareholder approach
B. Social contract approach
C. Economic approach
D. Instrumental approach
As early as 1969, it was recognized that corporations:
A. actions do not impact their external environment.
B. do not operate in an isolated environment.
C. can actually increase their profits by being socially responsible.
D. have a responsibility to shareholders before stakeholders.
Question 15 of 20 5.0 Points
All of the following are major trends behind the CSR phenomenon EXCEPT for which one?
A. Sustainability
B. Globalization
C. The failure of the private sector
D. Knowledge
Question 16 of 20 5.0 Points
The greatest period of reform in the U.S. produced all of the following EXCEPT for which one?
A. Unemployment laws
B. The minimum wage
C. Child labor laws
D. Sexual harassment laws
Question 17 of 20 5.0 Points
Many if not most developing countries are governed by __________ regimes.
A. dysfunctional
B. effective
C. efficient
D. controlling
Question 18 of 20 5.0 Points
Many CSR initiatives:
A. generate immediate financial gains to the organization.
B. do not generate long-term financial gains to the organization.
C. do not generate immediate financial gains to the organization.
D. generate enough financial gains to break even for the organization.
Question 19 of 20 5.0 Points
Corporations pursue operational efficiency through detailed monitoring of their botXXXXX XXXXXne in all of the following areas EXCEPT:
A. ethical activities.
B. financial performance.
C. social activities.
D. environmental activities.
Question 20 of 20 5.0 Points
A(n) __________ CSR encompasses philanthropic activities targeted toward programs that will generate the most positive publicity or goodwill for the organization.
A. Altruistic
B. Ethical
C. Economic
D. Strategic
Which of the following is NOT a key attempt at behavior modification to discourage illegal conduct with organizations since the 1970s?
A. The U.S. Federal Sentencing Guidelines for Organizations
B. The Ethics Resource Center
C. The Sarbanes-Oxley Act
D. The Foreign Corrupt Practices Act
Prior to the passing of the Foreign Corrupt Practices Act (FCPA), the illegality of this behavior was punishable only through the __________ sources of legislation.
A. primary
B. international
C. secondary
D. domestic
By passing the Foreign Corrupt Practices Act (FCPA), Congress was sending a message that U.S. companies should compete solely on the basis on __________ in overseas markets.
A. price and product quality
B. personnel and bribery
C. payments and uniqueness
D. uniqueness and government support
Which of the following is NOT considered a routine governmental action?
A. Providing permits to qualify a person to do business in a foreign country
B. Processing governmental papers
C. Providing police protection relate to the transit of goods across a country
D. Influencing a government official to obtain a government or business contract
The SEC may bring civil fines of up to __________ per violation under the FCPA.
A. $100,000
B. $50,000
C. $25,000
D. $10,000
The DII stands for the:
A. Declining Industry Initiatives.
B. Defense Industry Initiatives on Business Ethics and Conduct.
C. Domestic Industry Initiatives on Business Regulations.
D. Defending International Initiatives on Procurement Irregularities.
All of the following are principles included in the DII EXCEPT for which one?
A. Each company will have and adhere to a written code of business ethics and conduct.
B. Each company will create a free and open atmosphere that allows and encourages employees to report violations of its code to the company without fear of retribution for such reporting.
C. Each company has the responsibility to live by the standards to increase investors’ confidence in the defense industry.
D. Each company must have public accountability for its commitment to these principles.
The FSGO established a definition of an organization that was so __________ as to prompt the assessment that “no enterprise is exempt.”
A. narrow
B. broad
C. well-defined
D. contracted
Which of the following is NOT a step in calculating a fine sentenced by the FSGO?
A. The culpability score
B. The total fine amount
C. The determination of the base fine
D. The determination of the mitigating factors
The total fine sentenced by the FSGO is calculated by the base fine __________ the culpability score.
A. multiplied by
B. plus
C. minus
D. divided by
The maximum penalty that a judge can administer for FSGO violations is a:
A. 2 million dollar penalty.
B. penalty that is worth a quarter of the organization’s assets.
C. penalty that is worth half of the organization’s assets.
D. penalty that is worth the full amount of the organization’s assets.
An effective compliance program includes all of the following EXCEPT for which one?
A. Management oversight
B. Consistent discipline
C. Coercive action
D. Compliance with standards and procedures
The creation of the __________ as independent oversight body was an attempt to reestablish the perceived independence of auditing companies.
Title __________ of the Sarbanes-Oxley Act addresses issues related to corporate responsibility.
B. V
Question 15 of 20 5.0 Points
Title __________ of the Sarbanes-Oxley act addresses issues related to commission resources and authority.
B. V
Question 16 of 20 5.0 Points
Title __________ of the Sarbanes-Oxley act addresses issues related to corporate fraud and accountability.
C. X
Question 17 of 20 5.0 Points
Delegation of substantial discretionary authority is one step the __________ prescribes to organizations to create an effective compliance program to minimize the culpability score.
A. Defense Industry Initiatives (DII)
B. Foreign Corrupt Practices Act (FCPA)
C. Federal Sentencing Guidelines for Organizations (FSGO)
D. Sarbanes-Oxley Act
Question 18 of 20 5.0 Points
Section 404 of the Sarbanes-Oxley act is estimated to have generated auditing fees in the:
A. hundreds of millions of dollars.
B. hundreds of billions of dollars.
C. few million dollar range.
D. thousands of dollars.
Question 19 of 20 5.0 Points
The culpability score of an organization can be increased for all of the following reasons EXCEPT for which one?
A. The organization had a prior history of similar misconduct
B. The organization willfully obstructed justice
C. The organization self-reported the offense to appropriate governmental authorities
D. High-level personnel were involved in or tolerated the criminal activity
Question 20 of 20 5.0 Points
The __________ was/were introduced to place more effective controls over the practice of paying bribes to foreign officials and politicians by American publicly traded companies as they pursued international growth.
A. Defense Industry Initiatives (DII)
B. Foreign Corrupt Practices Act (FCPA)
C. Federal Sentencing Guidelines for Organizations (FSGO)
D. Sarbanes-Oxley Act
Who was the CEO of Enron that Sherron Watkin’s blew the whistle on?
A. Joseph Berardino
B. Jeffery Skilling
C. Bernard Ebbers
D. Kenneth Lay
When an employee discovers evidence of malpractice or misconduct in an organization, he or she faces a(n):
A. ethical dilemma.
B. cut and dry situation.
C. legal decision.
D. everyday occurrence.
A(n) __________ whistleblower is an employee who discovers corporate misconduct and brings it to the attention of his supervisor, who then follows established procedures to address the misconduct within the organization.
A. external
B. internal
C. organizational
D. governmental
A(n) __________ whistleblower is an employee discovering corporate misconduct and chooses to bring it to the attention of law enforcement agencies and/or the media.
A. external
B. internal
C. organizational
D. governmental
It may be argued that whistleblowers provide:
A. a positive image of their organization.
B. an invaluable service to their organization.
C. investors an unrealistic outlook of a company.
D. a disservice to the public.
Whistleblowers are often portrayed as __________ in the media.
A. devious
B. fraudulent
C. honorable
D. deceitful
All of the following can cause a whistleblower to lose legitimacy EXCEPT which one?
A. Motivated by financial gains
B. Motivated by media attention
C. The employee is carrying out a personal vendetta
D. The employee is trying to protect the public
The potential for financial gain in some areas of corporate whistle-blowing can be:
A. small.
B. personally devastating.
C. considerable.
D. minuscule.
Whether the motivation to speak out and reveal questionable behavior came from a personal ethical decision or the potential for a substantial financial windfall will:
A. probably never be completely verified.
B. always be verified.
C. be verified the majority of the time.
D. Always be sought after

One of the first instances of the use of the term whistleblower was in:
A. 1970.
B. 1963.
C. 1955.
D. 1941.
What year did public awareness of whistleblowers reach a peak?
A. 1998
B. 2000
C. 2002
D. 2004
Which of the following women was NOT recognized by Times magazine as their “Person of the Year.”
A. Martha Jenkins
B. Coleen Rowley
C. Sherron Watkins
Employees are becoming __________ to respond to any questionable behavior they observe in the workplace.
A. less willing
B. hesitant
C. uncooperative
D. increasingly willing
Prior to __________, legal protection for whistleblowers existed only in the form of legislation that encouraged the moral behavior of employees who felt themselves compelled to speak out, without offering any safeguards against retaliation aimed at them.
A. 2000
B. 2002
C. 2004
D. 2006
Question 15 of 20 5.0 Points
All of the following are possible damages entitled by employees who prevail in their whistleblower cases EXCEPT:
A. interest.
B. back pay.
C. all compensatory damages to make the employee whole.
D. reinstatement to a higher seniority status.
Question 16 of 20 5.0 Points
Given the new legal environment surrounding whistleblowers, all employers would be wise to put the following mechanisms in place EXCEPT:
A. a detailed report of all investigations, documenting all corporate officers involved and all actions taken.
B. a well-defined process to document how such complaints are handled.
C. an employee hotline to file such complaints.
D. a prompt and thorough investigation of serious complaints.
Question 17 of 20 5.0 Points
A(n) __________ hotline is a telephone line where employees can leave messages to alert a company of suspected misconduct without revealing their identity.
A. whistleblower
B. employee crisis
C. company
D. legal
Question 18 of 20 5.0 Points
The fact that an employee is left with no option but to “go public” with the information should be seen as evidence that:
A. the employee is unhappy with the organization’s decision and is seeking the media’s help to persuade the corporation.
B. the organization is trying to gauge the seriousness of the situation by pushing their employee.
C. the organization has failed to address the situation internally for the long-term betterment of the corporation.
D. the organization feels that the situation does not merit the employee’s evidence.
Question 19 of 20 5.0 Points
If an employee brings the misconduct of an organization to the attention of law-enforcement officials, this action is referred to as __________ whistleblowing.
A. external
B. organizational
C. internal
D. legal
Question 20 of 20 5.0 Points
If there is evidence that the employee is motivated by the opportunity for financial gain or media attention, the act of whistle-blowing may be:
A. difficult.
B. ignored.
C. external.
D. unethical.
__________ nations are countries that enjoy a high standard of living as measured by economic, social, and technological criteria.
A. Less-developed
B. Developing
C. Developed
D. Less-industrialized
Which of the following companies have NOT gotten into hot water over the years for relying on the assumption that “what works here, works there”?
A. E*Trade
B. Coca-Cola
C. Bacardi
D. Pepsi
International markets represent all of the following EXCEPT:
A. growth.
B. falling stock prices.
C. sources of cheaper resources.
D. cheap labor.
A company that operates across multiple national boarders in the provision and sale of products and services is referred to as a(n):
A. conglomerate.
B. international corporation.
C. multinational corporation.
D. Â transnational corporation.
For less-developed nations, the concept of globalization has __________ meaning.
A. a similar
B. a different
C. the same
D. no
__________ is where your ethical principles are defined by the traditions of your society, personal opinions, and the circumstances of the present moment.
A. Utilitarianism
B. Normative ethics
C. Descriptive ethics
D. Ethical relativism
Social and political chaos can generate a bureaucracy that:
A. bears no relation to realty.
B. is self-serving.
C. has a communistic framework.
D. will eventually self-destruct.
Globalization can be seen to have:
A. an upside.
B. a downside.
C. an upside and a downside.
D. neither an upside nor a downside.
Critics have argued that the moral temptations of global expansion have simply been:
A. sturdy.
B. feeble.
C. too weak.
D. too strong.
The __________ is a general standard of business practice that can be applied equally to all countries over and above their local customs and social norms.
A. universal accounting standards
B. global code of ethics
C. international cross border customs practices
D. generally accepted business principles
For those advocates of global ethics, this means that a(n) __________ solution has to be found.
A. inflexible
B. strict
C. flexible
D. rigid
Which of the following is NOT a guideline offered by DeGeorge?
A. Seek an economic profit without breaking local laws
B. Respect the human rights of their employees
C. Produce more good than harm for the host country
D. Do no intentional harm
DeGeorge’s guidelines present a(n):
A. business model.
B. realistic ethical framework.
C. ethical ideal.
D. ethical solution.
In the pursuit of profit and expansion, MNCs have been found guilty of all of the following EXCEPT:
A. bribery.
B. pollution.
C. the promotion of human rights.
D. questionable product quality.
Question 15 of 20 5.0 Points
Enforcing ethical behavior once they cross national boundaries is:
A. extremely difficult.
B. moderately difficult.
C. slightly difficult.
D. relatively easy.
Question 16 of 20 5.0 Points
__________ is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four key areas of concern: the environment, anticorruption, the welfare of workers around the world, and global human rights.
A. Corporate Citizenship
B. Global Compact
C. Ethical Expatriatism
D. Global Fellowship
Question 17 of 20 5.0 Points
The __________ guidelines is a governmental initiative endorsed by over 30 members and 9 nonmembers, promoting principles and standards of behavior in the following areas: human rights, information disclosure, anticorruption, taxation, labor relations, environment, competition, and consumer protection.
D. World Bank
Question 18 of 20 5.0 Points
If an organization is committed to ethical business conduct, that commitment should remain constant:
A. in developed countries.
B. in their home country.
C. wherever that business is conducted in the world.
D. in countries with similar ethical beliefs.
Question 19 of 20 5.0 Points
According to __________, ethical choices should offer the greatest good for the greatest number of people.
A. globalization
B. relativism
C. utilitarianism
D. human rights
Question 20 of 20 5.0 Points
The UN Global Compact is a voluntary corporate initiative endorsing 10 key principles that focuses on four key areas of concern. Which of the following is NOT one of those areas of concern?
A. Anticorruption
B. Economic growth
C. The environment
D. Human rights
Which of the following is NOT a characteristic of the market?
A. Aggressive Competitors
B. Demanding Creditors
C. Patient Stockholders
D. Aggressive Vendors
When you are operating a business in the current environment, holding on to your promise to run an ethical business can be:
A. very challenging.
B. impossible.
C. easy.
D. relatively easy.
For an ethical culture to be __________, it has to persist within the operational policies of the organization long after the public scandal or the latest management buzzword.
A. rememberable
B. sustainable
C. effective
D. efficient
Which of the following is NOT a stage in creating a long lasting ethical culture?
A. Follow the competitors
B. Establish a code of ethics
C. Hire an ethics officer
D. Promote your organizations commitment to ethical behavior
There is __________ perfect models for a code of ethics.
A. several
B. numerous
C. a few
D. no
Which of the following is NOT a consideration in creating a code of ethics from scratch?
A. Get endorsement from management from various levels
B. Find a champion
C. Pick a well-tested model
D. Try it out first
Even though your code of ethics is written for employees to follow, your __________ aren’t required to follow it.
A. shareholders
B. vendors
C. stakeholders
D. creditors
Which of the following is NOT an objective of departmental ethics training?
A. Recognizing the ethical issue
B. Discussing options for an appropriate response
C. Selecting the best option for the organization
D. Comparing the ethical issue to the code of ethics
The hiring of a(n) __________ represents a formal commitment to the management and leadership of an organizations ethics program.
A. chief operations officer
B. ethics officer
C. conduct officer
D. organizational officer
__________ is the chief responsibility of an ethics officer.
A. Establishing company policies and procedures
B. Overseeing investigations of wrong doing
C. Oversight of hotline/guideline/internal reporting
D. Training design
With standards of behavior specified in the code of ethics, along with the punishment served for failing to follow those standards, your ethics program can quickly become:
A. very harsh.
B. rigid.
C. stagnant.
D. flexible.
The threats of punishment must be:
A. delivered fairly.
B. congruent with the company’s ethics.
C. balanced with promised rewards for successful behavior.
D. delivered equally.
An ethics policy commits you to doing the right thing for all your stakeholders, therefore the message must be shared with all your:
A. shareholders.
B. customers.
C. stakeholders.
D. government.
Any organizations commitment to ethical performance must be watched:
A. annually.
B. quarterly.
C. periodically.
D. constantly.
Question 15 of 20 5.0 Points
__________ organization policies refers to organizations that maintains open and honest communications with all stakeholders.
A. Transparent
B. Opaque
C. Open
D. Closed
Question 16 of 20 5.0 Points
When a company develops a clear sign of what they stand for as an ethical organization, this is known as __________ ethical policies.
A. responsive
B. reactive
C. receptive
D. proactive
Question 17 of 20 5.0 Points
When a company is driven by events and/or a fear of future events, this refers to __________ ethical policies.
A. transparent
B. reactive
C. proactive
D. passive
Question 18 of 20 5.0 Points
Recognizing the concept of business ethics allows us to categorize behavior as unethical, but when you are looking to manage the reputation and policies of an organization, the commitment to doing the right thing becomes more about __________ than any sense of a written ethics policy.
A. perception
B. culture
C. integrity
D. management
Question 19 of 20 5.0 Points
True ethical policies are __________, where the company develops a clear sense of what they stand for as an ethical organization – not only what ethics means to them and their stakeholders, but also the extent of the actions they will take (and the necessary punishments they will enforce to get there).
A. integrated
B. transparent
C. proactive
D. reactive
Question 20 of 20 5.0 Points
Organizational __________ describes where an organization commits to the highest professional standards.
A. code of conduct
B. transparency
C. integrity
D. commitment