question

Which of the following statements is correct?

answer

The caring culture exhibits high concern for people but minimal concern for performance issues.

question

Which is NOT a characteristic of culture?

answer

Culture can be changed easily and quickly.

question

A _____ organizational structure is best for organizations in which processes are routine and the division of labor is very well-defined. These organizations have a lot of formal rules, policies, and procedures.

answer

Centralized

question

What kind of power stems from a belief that a certain person has the right to exert power over others?

answer

Legitimate Power

question

What type of culture shows little concern for individual people, but a high concern for performance?

answer

Exacting

question

What is the definition of corporate culture?

answer

The shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business.

question

Which of the following is NOT a characteristic of a centralized organization?

answer

Few and informal rules

question

Which of these powers may exist when a person believes that his/her goals are similar to another's?

answer

Referent power

question

Which type of culture shows minimal concern for either people or performance?

answer

Apathetic

question

A(n) _____ culture combines a high concern for people with a high concern for performance.

answer

Integrative

question

Unfortunately, in today's competitive world, a company's history and unwritten rules are not part of its corporate culture.

answer

False

question

Corporate culture is exhibited through the behavioral patterns, concepts, documents such as codes of ethics, and rituals that emerge in an organization.

answer

True

question

Which of the following utilizes a legalistic approach to ethics and uses laws and regulations to create its codes and requirements?

answer

Compliance

question

_____ power is essentially the opposite of reward power in that it penalizes actions or behavior instead of rewards it.

answer

Coercive

question

In which type of organization is decision making delegated as far down the chain of command as possible?

answer

Decentralized

question

To be effective, ethics training first must start with a foundation that includes

answer

A code of ethics

question

Keys to successful ethics training include all but:

answer

Leaving clear opportunities for employees to engage in unethical behaviors.

question

A common mistake that U.S.-based multinational firms make when developing an ethics and compliance program for international offices is:

answer

Transferring their "American" programs to the firm's international operations

question

Which of the following statements best describes the primary implication of "bad apple-bad barrel" theory?

answer

Organizations can influence ethical behavior by hiring people with high ethical standards and developing an ethical corporate culture.

question

What did the Sarbanes-Oxley Act put more pressure on ethics officers to monitor?

answer

Financial reporting

question

All of the following are responsibilities of an ethics officer EXCEPT:

answer

Making government laws related to business ethics

question

Fostering ethical decisions within an organization requires eliminating unethical persons and

answer

Improving the firm's ethical standards.

question

Programs designed to foster ethical behavior are more controversial today because unethical and illegal business conduct continues to occur, even in organizations that have implemented the programs.

answer

True

question

All of the following are responsibilities of ethics officers EXCEPT:

answer

Making ethical decisions on behalf of managers and the board of directors so that they do not have to think about ethical issues.

question

What do values orientation strives to develop?

answer

Shared values

question

Which of the following scenarios is unethical but not illegal?

answer

While having a latte at Starbucks, you run into a friend who works as a salesperson at a competing firm. Your friend winds up chatting about how there is going to be a change in management at her firm. When you get back to your office, you tell your supervisor what you heard.

question

Software is becoming popular in helping to prevent misconduct because it provides reports of employee concerns, complaints, or observations of misconduct that can then be tracked and managed.

answer

False

question

Codes of conduct and codes of ethics

answer

are formal statements that describe what an organization expects of its employees.

question

Companies that experience ethical misconduct disasters almost never recover from them.

answer

False

question

Which of the following is NOT an aspect of the Open Compliance Ethics Group (OCEG) framework?

answer

Customers

question

What is one of the greatest organizational benefits of conducting an ethics audit?

answer

Improved relationships with stakeholders who desire transparency.

question

What is the first step in conducting an ethics audit?

answer

Securing the commitment of the firm's top management and board of directors.

question

The Better Business Bureau's International Torch Award for Marketplace Ethics may be useful to help what type of companies with their ethics audit?

answer

Companies with fewer resources

question

Which of the following is not part of the framework for an ethics audit?

answer

Verify the results yourself or by a co-worker

question

Both ethics auditing and financial auditing employ:

answer

Objective reporting

question

When should ethics audits and financial audits be conducted?

answer

Regularly

question

Employee turnover is a useful indicator for assessing employee issues.

answer

True

question

Which of the following items do NOT have a strong impact on whether an ethics program is successful?

answer

The content of the code of ethics

question

An ethics audit is a:

answer

Systematic evaluation of an organization's ethics program and/or performance to determine its effectiveness.

question

Which of the following is a means of measuring process variations that cause defects considered unacceptable deviations from the mean or target?

answer

Six sigma

question

The strategic importance of ethics auditing includes all of the following EXCEPT

answer

Avoidance of fines in case of an infraction.

question

Which of the following reporting methods is a point of contact within an organization where employees and managers can voice their concerns and receive assistance from the most appropriate person in the firm to handle the situation?

answer

Help desk

question

What results when the middle class shrinks, leaving a nation with its wealth concentrated among the very rich and with large numbers of poor people?

answer

Bimodal wealth distribution

question

When various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole it is called:

answer

risk compartmentalization

question

Who was one of the fathers of capitalism that believed the state could stimulate economic growth and improve stability in the private sector through such measures as controlling interest rates, taxation, and public projects?

answer

John Maynard Keynes

question

Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?

answer

Global Compact

question

Laissez-faire capitalism occurs when various profit centers within corporations are unaware of the consequences of their actions on the firm as a whole.

answer

False

question

Of the following statements, which is correct?

answer

When companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping.

question

The unconscious reference to one's own cultural values, experiences, and knowledge is called:

answer

Self-reference criterion.

question

Which of the following brings together people with different cultures, values, laws, and ethical standards?

answer

Global business

question

Which of the following is the international coordinator of regulatory policy for the world and makes short-term loans to member countries with deficits and provides foreign currencies to its members?

answer

International monetary fund.

question

Companies such as Coca-Cola, Hewlett-Packard, and Walmart support a globally based resource system called __________, which tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools.

answer

Business for social responsibility

question

Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?

answer

Global Compact

question

All of the following are major global ethical risks EXCEPT:

answer

Increasingly global affluence and consumer desire for quality products.

question

Who was one of the fathers of capitalism that believed the state could stimulate economic growth and improve stability in the private sector through such measures as controlling interest rates, taxation, and public projects?

answer

John Maynard Keynes

question

Which organization was established in 1995 at the Uruguay round of negotiations?

answer

WTO

question

Which of the following is based on the assumption that people are predictable and will seek to maximize the utility of their choices relative to their needs and wants?

answer

Rational economics

question

Wal-Mart's annual revenues are greater than the GDPs of most of the countries in the world.

answer

True

question

The ability or authority to guide and direct others toward a goal is called:

answer

Leadership

question

Ethical leadership is possible without effective communication.

answer

False

question

With regards to leadership styles that influence ethical decisions, the challenge for leaders is _______________________, which is essential if organizational leaders are to steer their companies toward success.

answer

Gain trust and commitment of organizational members.

question

_________ provide a blueprint for what a firm's corporate culture should be.

answer

Top management.

question

All of the following represent steps in the RADAR model EXCEPT:

answer

Realize.

question

Many of the day-to-day decisions in a firm are made by:

answer

Employees.

question

Organizational culture emerges whether or not there is effective leadership.

answer

True

question

Which type of leader inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate? This type of leader is considered to be the most effective.

answer

The authoritative leader

question

With regards to benefits of ethical leadership, which statement is incorrect?

answer

Working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity

question

Ethical leaders generally adopt one of two approaches to leadership: a _________-based approach or a(n) ________-based approach

answer

Compliance, integrity.

question

_____________occurs when the leaders and followers share the same vision, ethical expectations, and objectives for the company.

answer

Leader-follower congruence.

question

Ethical leaders need both knowledge and ___________ to make the right decisions.

answer

Experience

question

With regards to benefits of ethical leadership, which statement is incorrect?

answer

working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity.

question

Traits of strong leaders include all of the following EXCEPT:

answer

Authority

question

Conflict management styles include all of the following EXCEPT:

answer

Guarding

question

Which of the following is not a category of communication?

answer

Coercive communication

question

With regards to strategic approaches to environmental issues, all of the following relate to firms having a high commitment except which statement?

answer

Deals with issues that could cause public relations problems.

question

One attempt at addressing global warming was _______, created in 1997. It was an international treaty meant to curb global greenhouse gas emissions by having countries voluntarily reduce national outputs.

answer

Kyoto Protocol

question

In 2010, most of the world's nations agreed to a package of climate initiatives called ________. This agreement called for industrialized countries to cut their greenhouse gas emissions and pay into a $100 billion a year green fund to help poorer countries.

answer

Cancun package

question

With regards to sustainability, which of the following is not a common question asked of companies?

answer

All of these are common questions asked of companies.

question

____ is one of the biggest contributors to illnesses in developing countries.

answer

Water pollution

question

Alternative sources of energy include all of the following EXCEPT:

answer

Gas power.

question

With regards to strategic approaches to environmental issues, all of the following relate to firms having a high commitment except which statement?

answer

Deals with issues that could cause public relations problems

question

All of the following are sustainable business practices that show social commitment EXCEPT:

answer

Reducing alternative energy sources.

question

Which is not a benefit of a firm "going green"?

answer

Firms can focus more upon their own efforts as a distinct unit rather than on the entire supply chain

question

The _______ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use. Practices include recycling, source reduction, sustainable agriculture, and other practices that increase efficiency in the use of energy, water, or other natural resources and protect resources through conservation.

answer

Pollution Prevention Act

question

Environmental advocates ensure that shoppers are adequately informed about the environmental impact of the products they buy.

answer

False

question

__________ involves misleading a consumer into thinking that a product or service is more environmentally friendly than it really is. It can range from making environmental claims that are required by law and are therefore irrelevant (CFC-free) to puffery, or exaggerating environmental claims, to fraud.

answer

Greenwashing

question

___________ includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment.

answer

Sustainability

question

____________ is the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse.

answer

Recycling

question

Alternative energy sources have significantly increased the carbon footprint of communities, cities, and even countries.

answer

False

question

The most controversial form of alternative energy is:

answer

Biofuels

Business Ethics Practice Quizzes (7-12) – Flashcards

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