Apathetic Culture
Has minimal concern for either people or performance
Caring Culture
Shows high concern for people but minimal one for performance
Exacting Culture
Displays little concern for people, but high concern for performance.
Integrative Culture
Combines high concern for both people and performance.
Value-based ethics culture
Relies on an explicit mission statement that defines a firm's core values.
Compliance Culture
Uses laws and regulations to create codes of ethics
Expert power usually stems from
A superior's credibility with his or her subordinates.
Which of the Following statements about power is true?
A. People generally use only one base of power to effect change in others.
B. The five bases of power are mutually exclusive.
C. Power can be used to motivate individuals ethically or unethically.
D.
C. Power can be used to motivate individuals ethically or unethically
An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is
a. decentralized.
b. unethical.
c. centralized.
d. ethical.
e. tall.
a. decentralized
When considering centralized and decentralized structures, which one tends to be more ethical and why?
A. Decentralized because they give employees more decision making authority
B. Centralized because it is easier to uproot unethical activities
C. Both t
E. Centralized because of the strict formalization and implementation of ethics policies and procedures
The ability to influence the behavior of others by offering them something desirable is best described as
a. coercive power.
b. referent power.
c. expert power.
d. legitimate power.
e. reward power.
e. reward Power
An advantage of the decentralized organization is that
A. each worker knows his or her job and what is specifically expected as well as how to carry out designated tasks.
B. the focus is on formal rules, policies, and procedures backed up with elaborate c
D. it is adaptable and can quickly respond to external change.
Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as
a. compliance.
b. opportunity.
c. differential equations.
d. misconduct.
e. differential association
e. differential association.
Which of the following statements about corporate culture is false?
a. Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in an organization.
b. Corporate culture refers to the patterns and rules
c. The values and ethical beliefs that actually guide the firm's employees tend not to be the same ones that management states as defining the firm's culture.
Marcus is the best performing development director his non-profit organization has ever had. He possesses countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have _____ over new development
a. expert power
Individuals, often from the same department, who have a common interest but not an explicit organizational structure are known as
a. committees
b. teams
c. work groups
d. informal groups
e. quality circles
d. informal groups.
In order for whistle-blowing to be effective,
a. employees must wish ill on the organization for which they work.
b. it requires that the individual have adequate knowledge of wrongdoing that could damage society.
c. lawmakers must make an effort to force
b. it requires that the individual have adequate knowledge of wrongdoing that could damage society.
Management's sense of the organization's culture
a. may be quite different from employees' perceptions.
b. is more accurate than employees' perceptions.
c. is usually easily adopted by employees.
d. is readily evident to employees.
e. is always different
a. may be quite different from employees' perceptions.
Motivation is defined as
a. personal ambition without regard to the impact on others.
b. individual goals.
c. a force within the individual that focuses his or her behavior on achieving a goal.
d. a desire to be finished with a project.
e. the reason why
force within the individual that focuses his or her behavior on achieving a goal
Which of the following cultures combines high levels of concern for people and performance?
a. Caring culture
b. Cooperative culture
c. Exacting culture
d. Apathetic culture
e. Integrative culture
e. Integrative culture
The _____ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control.
a. coercive
b. affiliative
c. coaching
d. democratic
e. pacesetting
a. coercive
The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent.
a. 20-30-30-20
b. 10-30-40-20
c. 80-20
d. 10-40-40-10
e. 40-1
d. 10-40-40-10
In the "bad apple-bad barrel" analogy, the bad barrel refers to
a. indifferent management.
b. a corrupt society.
c. an unethical corporate culture.
d. a criminal organization.
e. unethical employees.
c. an unethical corporate culture.
Which of the following statements about codes of conduct is false?
a. They help employees determine what behaviors are acceptable.
b. They should be specific enough to be reasonably capable of preventing misconduct.
c. They provide rules and guidelines fo
d. They address every ethical issue that an employee may face.
A strong ethics program includes all of the following elements except
a. a written code of conduct or ethics.
b. formal ethics training.
c. a clause promising good stock market performance.
d. auditing, monitoring, enforcement, and revision of standards.
c. a clause promising good stock market performance.
In the absence of ethics programs, employees are likely to make decisions based on
a. their educational backgrounds.
b. how they and their family members behave at home.
c. whatever they can get away with.
d. their observations of how their coworkers and
d. their observations of how their coworkers and superiors behave.
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.
a. compliance; values
b. obedience; values
c. values; compliance
d.
a. compliance; values
Which of the following is the most comprehensive?
a. Code of ethics
b. Code of values
c. Code of conduct
d. Statement of principles
e. Statement of values
Code of ethics
What is one of the goals of ethics training?
a. To identify key risk areas employees will face.
b. To completely eliminate any chances of misconduct.
c. To train employees on how to address every ethical situation they encounter.
d. To comply with legal r
a. To identify key risk areas employees will face.
When measuring the effectiveness of an ethics program, it is important to
a. establish rules for compliance.
b. adopt a compliance orientation.
c. hire an ethics officer.
d. perform a financial audit.
e. get input from employees.
e. get input from employees.
Which of the following is an advantage of a values-based ethics program over a compliance-based one?
a. Diverse employees no longer have differing values.
b. Unlike values-based programs, compliance-based programs cannot prevent misconduct.
c. A values or
e. Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency.
Which of the following statements about training is false?
a. It can dictate personal ethics on the job so employees no longer have differences in beliefs.
b. It can educate employees about the firm's policies and expectations, as well as about relevant l
a. It can dictate personal ethics on the job so employees no longer have differences in beliefs
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.
a. values orientation
b. compliance orientation
c. code of ethics
d. code of conduct
b. compliance orientation
The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is usually the
a. president.
b. ethics officer.
c. immediate supervisor.
d. Chairman of the board.
e. CEO.
b. ethics officer.
Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct?
a. Conduct orientation
b. Compliance orientation
c. Coercive orientation
d. Values orientation
e. Obedience orientation
b. Compliance orientation
With regard to ethics, training and communication initiatives should reflect
a. the organization's size.
b. the unique characteristics of an organization.
c. the organization's stock performance.
d. the structure of the board of directors.
e. the self-int
b. the unique characteristics of an organization.
Because a corporation can be considered a moral agent, it is therefore
a. required to adopt moral philosophies.
b. obligated to perform philanthropic responsibilities.
c. required to have an ethics officer.
d. responsible to society for its actions.
e. wi
d. responsible to society for its actions.
For an ethics and compliance program to properly function,
a. it is not necessary to set measurable program objectives.
b. the company must wait until after misconduct occurs to develop a means of preventing it.
c. employees must be monitored using any me
d. consistent enforcement and disciplinary action are essential.
Top managers tend to focus on _____ because their jobs and personal identity are often connected to quarterly returns.
a. financial performance
b. employee satisfaction
c. the board of directors' recommendations
d. ethical performance
e. adherence to the
a. financial performance
What is one of the responsibilities of an ethics officer?
a. Conducting employee performance evaluations
b. Answering the ethics hotline
c. Signing off on financial documents
d. Monitoring and auditing ethical conduct
e. Prosecuting illegal activities
d. Monitoring and auditing ethical conduct
What is a major problem organizations tend to have when implementing organizational ethics program?
a. Top managers don't integrate codes, values, and standards into their firms' corporate cultures.
b. Wall Street investors demand that companies take ille
a. Top managers don't integrate codes, values, and standards into their firms' corporate cultures.
Which of the following is a common mistake made in implementing an ethics program?
a. Developing materials that are not understandable by the average employee
b. Adapting a firm's ethics program to its international operations
c. Setting specific program
a. Developing materials that are not understandable by the average employee
Organizations can become "bad barrels" because
?
a. the pressure to succeed creates opportunities that reward unethical decisions.
b. they do not allow employees to pursue their own individual values.
c. management does not understand complex ethical deci
a. the pressure to succeed creates opportunities that reward unethical decisions.
Check My Work
Which of the following is true about a compliance orientation?
a. A compliance orientation can aid in organizational ethical decision-making.
b. A compliance orientation is superior to a values orientation.
c. The most successful companies h
d. The use of legal terms, statutes, and contracts teach employees the rules and penalties for noncompliance.
In the long run, a(n) ______ orientation may be better for companies, perhaps because it increases employees' awareness of ethics issues at work.
a. individual
b. values
c. obedience
d. compliance
e. code
b. values
Which of the following is not a main goal of successful ethics training programs?
a. Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma that they do not know how to resolve.
b. Allow a mechanism for empl
e. Allow employees to solve ethical issues using their best
To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except
a. a question-and-answer section.
b. additional resources for guidance.
c. lengthy legal documents.
d. checklists, illustrations, a
c. lengthy legal documents.
Better Business Bureau's Torch Award Criteria for Management Practices
A mission describing the business's commitment to exceptional standards
Examples of sound environmental policies
Better Business Bureau's Torch Award Criteria for Community/Investors Stakeholder Relations
Complimentary feedback from customers
Examples of pro bono work
Better Business Bureau's Torch Award Criteria for Communications and Marketing Practices
Descriptions of methods to ensure sales are truthful and accurate
Sales training policies to ensure transactions are tranparent
Industry Reputation
Awards and recognition from within the industry
Media coverage reflecting the business as trustworthy
Which of the following has a significant impact on the success of an ethics program?
a. Legal constraints
b. The size of the company
c. A statement of values
d. The types of ethical decisions
e. The quality of communication
e. The quality of communication
Which of the following statements about ethics audits is false?
a. The terms ethics audits and social audits can be used interchangeably.
b. They provide an opportunity to measure conformity to the firm's desired ethical standards.
c. They can be a compon
a. The terms ethics audits and social audits can be used interchangeably
Which of the following is not a step in the ethics auditing process?
a. Collect and analyze relevant information.
b. Secure commitment of top executives and directors.
c. Review organizational mission, goals, values and policies, and define ethical priori
d. Report the results to the U.S. Sentencing Commission.
Which of the following is a statement that attests that the financial statements made in an audit are fairly stated, without limitations?
a. Unqualified opinion
b. Qualified opinion
c. Disclaimer of opinion
d. Favorable opinion
a. Unqualified opinion
Any attempt to verify outcomes and to compare them with standards can be considered a(n) _____ activity, although many smaller firms do not use this word.
a. informal
b. auditing
c. formal
d. ethical
e. accounting
b. auditing
__________ is a management system that focuses on all of the elements that contribute to organizational performance and success.
a. Six Sigma
b. The Balanced Scorecard
c. The Global Reporting Initiative
d. Process controls
e. The triple bottom line
b. The Balanced Scorecard
The word _____ implies a balanced organization that makes ethical financial decisions and also is ethical in more subjective matters of corporate culture.
a. corporate culture
b. integrity
c. financial management
d. transparency
e. compliance
b. integrity
During which step of the auditing process should a firm examine all documents that make explicit commitments to ethical, legal, or social responsibility?
a. Review organizational mission, goals, values, and policies.
b. Secure commitment of top managers a
a. Review organizational mission, goals, values, and policies.
Two useful indicators for assessing employee issues are
a. employee satisfaction and productivity.
b. staff turnover and stock price.
c. staff turnover and honesty.
d. employee satisfaction and attendance.
e. staff turnover and employee satisfaction.
e. staff turnover and employee satisfaction.
Because ethics and social audits are _____, there are few standards that a company can apply with regard to reporting frequency, disclosure requirements, and remedial actions that it should take in response to results.
a. not necessary
b. mandatory
c. req
e. voluntary
What should be the first step in the auditing process?
a. Collect and analyze data
b. Review organizational mission, goals, values, and policies
c. Secure the commitment of top executives and directors
d. Establish a committee to oversee the audit
e. Defi
c. Secure the commitment of top executives and directors
Which of the following is not a phase of escalation during an ethical disaster?
a. The firm's discovery of the misconduct
b. The firm's response to the misconduct
c. The decision to act unethically
d. Ethical issue recognition
e. The firm's decision to co
e. The firm's decision to conduct an ethics audit
_____ is an independent assessment of the quality, accuracy, and completeness of a company's social or ethics report.
a. Publication
b. Verification
c. Auditing
d. Validation
b. Verification
What should be the final step in the ethics auditing process?
a. Secure the commitment of top managers and directors
b. Report the findings
c. Define the scope of the audit
d. Collect and analyze data
e. Verify the results
b. Report the findings
Ethics audits can help companies identify potential _____ so they can implement plans to eliminate or reduce them before they reach crisis dimensions.
a. risks and liabilities
b. technological glitches
c. productivity issues
d. market opportunities
e. com
a. risks and liabilities
During the data-collection phase of the audit, the primary objective is to generate a variety of opinions about how the company is perceived and whether it is
a. meeting profit projections.
b. fulfilling stakeholders' expectations.
c. fulfilling employee
b. fulfilling stakeholders' expectations.
Independent verification of the ethics audit is important because it lends the report
a. objectivity and formality.
b. credibility and formality.
c. credibility and civility.
d. credibility and objectivity.
e. objectivity and civility.
d. credibility and objectivity
When The Gap posts the results of its ethics audit on its website, it is engaged in which of the following steps of the ethics auditing process?
a. Verify the results
b. Define the scope of the audit
c. Collect and analyze relevant information
d. Submit t
e. Report the results
While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a
d. ethical and legal conduct.
Which of the following compares standards with actual behavior??
a. ?Formal controls
b. ?Ethics audits
c. ?Process controls
d. ?Output controls
e. ?Shared values
d. ?Output controls