Applied Ethics Chapters 1 - 10 Study Questions - Flashcards

Q: In what way did the \"comply or else\" Â¬approach differ from the \"comply or explain\" approach to corporate governance?

Unlike \"comply or explain\", the \"comply or else\" approach does not offer corporations an easy way to avoid conforming to its operating standards.

Q: The outside members of a company\'s board of directors:

may comprise of the company\'s creditors, suppliers, or consultants.

question

Having all the effective mechanisms listed on the corporate governance checklist in place ensures completely effective corporate governance.

answer

False

question

Corporate governance is the system by which business organizations are directed and controlled.

answer

True

question

The Cadbury report argued for a guideline of "comply or else," which required companies to abide by a set of operating standards or face stiff financial penalties.

answer

False

question

If the board of directors is to serve its purpose in setting the operational tone for an organization, it should be comprised of members who represent professional conduct in their own organizations.

answer

True

question

Permitting one individual to function as both the chief executive officer of a company and the chairperson of its board has no impact upon the power of the stockholders.

answer

False

question

Board members are not accountable to the company and its shareholders.

answer

False

question

The King II report on corporate governance:

answer

formally recognized the economic, environmental, and social aspects of a company's activities.

question

In what way did the "comply or else" ¬approach differ from the "comply or explain" approach to corporate governance?

answer

Unlike "comply or explain", the "comply or else" approach does not offer corporations an easy way to avoid conforming to its operating standards.

question

One of the flaws in the board of directors of Enron was that many of the directors were affiliated with organizations that benefited directly from Enron's operations.

answer

True

question

Independent or outside directors are not eligible to be a part of the compensation committee.

answer

False

question

The Sarbanes-Oxley Act of 2002 incorporates the "comply or else" approach to corporate governance.

answer

True

question

Which of the following is true of managers in an organization with good corporate governance?

answer

Managers should fulfill a fiduciary responsibility to the owners.

question

The King II report emphasized the need for companies to adopt an exclusive approach to corporate governance instead of an inclusive one.

answer

False

question

Which of the following is true of the "comply or explain" approach to corporate governance?

answer

It gave companies the flexibility to comply with its governance standards or justify why they didn't in their corporate documents.

question

The outside members of a company's board of directors:

answer

may comprise of the company's creditors, suppliers, or consultants.

question

Which of the following actions is a step toward running a company successfully?

answer

Evaluating risk-versus-reward scenarios frequently, regardless of the company's size.

question

The corporate governance committee is staffed by members of the board of directors and specialists.

answer

True

question

In his Harvard Business Review article, Walter Salmon recommends that a good board have three or more outside directors for every insider.

answer

True

question

The Cadbury report addressed:

answer

the financial aspects of corporate governance.

question

The _____ of 2002 incorporates the "comply or else" approach to corporate governance.

answer

Sarbanes-Oxley Act

question

"Business ethics" is sometimes considered an oxymoron because:

answer

the recent spate of financial scandals portrays organizations as fundamentally unethical.

question

Codes of ethics have matured from performance-measurement documents into cosmetic public relations documents.

answer

False

question

The standard of corporate governance:

answer

ensures that officers of an organization fulfill their obligations to their stakeholders.

question

The belief that an activity is safe because it will never be found out is a common rationalization behind an employee's unethical conduct. What can an organization do to deter unethical behavior based on this rationalization?

answer

Managers should punish the individual publicly.

question

The 2002 Sarbanes-Oxley Act introduced greater accountability for chief executive officers and boards of directors in signing off on the financial performance records of the organizations they represent.

answer

True

question

Which of the following functions does the code of ethics perform?

answer

It clarifies an organization's cornerstones to its employees, managers, and stakeholders.

question

_____ refers to a situation in which there is no obvious right or wrong decision, but rather a right or right answer.

answer

Ethical Dilemma

question

The problem with a utilitarian approach to ethics is:

answer

the idea that the ends justify the means.

question

The _____ principle for resolving an ethical dilemma considers which decision would provide the greatest good for the greatest number of people.

answer

ends-based

question

The difference between intrinsic value and instrumental value is that:

answer

instrumental value refers to the quality by which the pursuit of one value is a good way to reach another value.

question

The interests of wholesalers in an organization include accurate deliveries of quality products on time and at a reasonable cost.

answer

True

question

Which of the following is one of the four basic categories of ethics?

answer

Personal integrity

question

Joe feels pressured to lie to his client to keep an important contract because of intense market competition. He feels they will never discover the truth. Joe is:

answer

facing an ethical dilemma.

question

Ethical behavior should be the same both inside and outside a business situation.

answer

True

question

Moral standards are independent of religious beliefs.

answer

False

question

Which of the following is an example of simple truth?

answer

Amelia believes that murder is wrong, a view supported by most people.

question

A company's code of ethics comprises written standards of moral behavior that are designed to guide managers and employees in making the decisions and choices they face every day.

answer

True

question

The belief that an activity is safe because it will never be found out or publicized is one of the commonly held rationalizations, identified by Saul Gellerman, which can lead to unethical behavior.

answer

True

question

The basic assumption of ethical theory is that you as an individual or community are in control of all the factors that influence the choices that you make.

answer

True

question

The highest level of ethical reasoning is the postconventional level.

answer

True

question

The third stage of Kohlberg's stages of ethical reasoning is law-and-order orientation.

answer

False

question

When trying to resolve an ethical dilemma, the Golden Rule principle considers only legal aspects of the problem.

answer

False

question

A society is a closed, confined unit in which people have to follow a distinct religion.

answer

False

question

Which of the following changes has occurred in the business environment over the last five decades?

answer

Corporate social responsibility has advanced from an abstract debate to a core performance-assessment issue.

question

Arthur Dobrin identified 15 questions that one should consider when resolving an ethical dilemma.

answer

False

question

Business ethics can be approached from two different perspectives. The _____ perspective is a summation of the customs, attitudes, and rules that are observed within a business.

answer

descriptive

question

Utilizing the rules-based principle to resolve an ethical dilemma necessitates focusing exclusively on which decision would provide the greatest good for the greatest number of people.

answer

False

question

A _____ is defined as someone with a share or interest in a business enterprise.

answer

stakeholder

question

Business ethics involves the application of standards of moral behavior to business situations.

answer

True

question

An intrinsic value means that the pursuit of one value is a good way to reach another value.

answer

False

question

Individuals acquire their personal moral standards in the same way that they learn the alphabet.

answer

False

question

Over the last five decades, the issue of corporate social responsibility has advanced from an abstract debate to a core _____ issue with clearly established legal liabilities.

answer

performance-assessment

question

_____ refers to a set of personal principles formalized into a code of behavior.

answer

Value system

question

International ethics centers that serve the needs of global businesses were formed in the 1960s.

answer

False

question

Which of the following scenarios exemplifies instrumental value?

answer

Victoria possesses half a million in her bank account.

question

How can companies reduce unethical behavior in their companies?

answer

By creating and maintaining a corporate culture of trust

question

Business ethics:

answer

involves applying ethical and moral standards to business behavior.

question

Which of the following is true of ethical relativism?

answer

The idea of relativism implies some degree of flexibility as opposed to strict black-and-white rules.

question

Which of the following is true of corporate governance?

answer

It is the system by which business corporations are directed and controlled.

question

The Greek philosopher Aristotle's belief in individual character and integrity established the concept of _____.

answer

virtue ethics

question

Corporations that experiment with corporate social responsibility (CSR) initiatives run the risk of creating adverse results as:

answer

the employees feel that they are working for an insincere, uncaring organization.

question

The policy of _____ is the premise of corporate social responsibility where doing what's best for the customers translates into what's best for the company in the long run.

answer

doing well by doing good

question

The human resource function within an organization should ideally be directly involved in the creation of a career development program for the employee.

answer

True

question

ExoticCrafts Inc., a handicraft manufacturing company, has an established marketing department. Which of the following functions is the marketing department most likely to carry out?

answer

Ensuring that the products reach the hands of a satisfied customer.

question

Instrumental approach to corporate management is the perspective that a corporation has obligation to society over and above the expectations of its shareholders.

answer

False

question

According to the value chain of an organization, which of the following is a support activity?

answer

General administration

question

According to the value chain of an organization, which of the following is classified as a primary activity?

answer

Sales and marketing

question

The human resource function within an organization seldom needs to be involved in the relationship between the company and the employee.

answer

False

question

The policy of "doing well by doing good," refers to the belief that doing good for the company is just good business.

answer

False

question

Which of the following statements is true of a company's value chain?

answer

Supply chain management and operations are primary activities.

question

Nonprofit organizations do not face problems with unethical behavior.

answer

False

question

Which of the following statements is true of corporate social responsibility (CSR)?

answer

Many companies awoke to CSR only after being surprised by public responses to issues they had not previously thought were part of their business responsibilities.

question

In addition to achieving social benefits, which of the following best illustrates that a company is effectively implementing corporate social responsibility (CSR)?

answer

The company fulfills its legal obligations

question

The accounting function provides the certification, by an impartial third-party professional, that an organization's financial statements are accurate.

answer

False

question

Marketing professionals are responsible for ensuring that the right programs and policies for ethical business conduct are in place.

answer

False

question

According to the social contract approach to management, by recognizing _____ and not just shareholders, corporations must maintain a long-term perspective rather than simply delivering quarterly earnings numbers.

answer

stakeholders

question

The obligation that an auditing firm has to a paying client while owing an objective, third-party assessment of that client's financial stability to stakeholders and potential investors represents a potentially significant conflict of interest.

answer

True

question

When a company's financial statements have been certified by an objective third party to be "clean," that certification is meant to be for the public's benefit rather than the company's.

answer

True

question

Which of the following arguments made by the advocates of ethical business conduct about the human resource department is true?

answer

It should not be the sole creator of the code.

question

The research and development (R&D) department of an organization:

answer

carries the responsibility for the future growth of the organization.

question

Henry Ford II recognized the fact that corporations operate in an isolated environment.

answer

False

question

Cathy heads the R&D team of Anderson Enterprises. Which of the following R&D functions should Cathy and her team undertake in the firm to allow the organization capture and maintain a leading position in its market?

answer

Cathy and her team should make a complex set of risk assessments and technical judgments in order to deliver a product design.

question

Corporate social responsibility assumes that the corporation:

answer

is operating in a competitive environment.

question

Ethical CSR is a philanthropic approach to corporate social responsibility in which organizations underwrite specific initiatives to give back to the company's local community or to designated national or international programs.

answer

False

question

Some of the illegal financial functions include underreporting income, overvaluing assets, and taking questionable deductions.

answer

True

question

Corporate Social Responsibility (CSR) refers to the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.

answer

True

question

The advocates of ethical business conduct argue that HR should be the sole creator of any corporate code of ethics.

answer

False

question

In contrast to the alleged immorality of altruistic CSR, critics argue that strategic CSR is ethically commendable since these initiatives benefit stakeholders while meeting fiduciary obligations to the company's shareholders.

answer

True

question

There are several standard ways to measure the achievements of the triple bottom-line approach.

answer

False

question

Organizational culture can be defined as the values, beliefs, and norms shared by all the employees and competitors of that organization.

answer

False

question

Happy Times (HT) is an alcohol manufacturing brand that manufactures and sells several types of alcoholic beverages. HT uses social media for promoting the message of responsible drinking. It sponsors the FreeTaxi program for customers with HT membership on Christmas and New Year's Eve. It has also initiated several community welfare projects where a percentage of the profits go to the Hunger Relief Fund for Children. Which of the following aspects of Happy Times is illustrated in this scenario?

answer

Corporate citizenship

question

Amanda heads the human resource department in Elenear Enterprises. The management has entrusted her with certain functions. Within the organization, Amanda should be directly involved in:

answer

the recruitment and selection of the right candidates for different positions.

question

Human resource management supports each of the key functional areas in a value chain.

answer

True

question

Which of the following approaches to corporate management is considered simplistic because it assumes that there are no external consequences to the actions of a corporation?

answer

The instrumental approach

question

Bector Airlines supports relief camps in the Republic of Cadmia with donations of both money and employee-donated volunteer hours. It also provides packaged food in times of natural crises such as hurricanes, earthquakes, etc. This is an example of _____ CSR.

answer

altruistic

question

According to Joseph F. Keefe, which of the following is a major trend behind the corporate social responsibility phenomenon?

answer

Globalization

question

If an employee leaves a company, the human resource department should host an exit interview to ensure that anything that the organization can learn from the employee's departure is fed back into the company's strategic plan for future growth and development.

answer

True

question

Which of the following is a human resource function within an organization?

answer

Documentation of periodic performance reviews

question

Spark Inc. (SI), a multinational corporation, had reported large losses in the previous financial year. To overcome these losses, the company planned to take the instrumental approach to corporate management. Which of the following best illustrates this approach?

answer

SI uses its resources to enhance the productivity of employees and thus increases profits.

question

The advocates of ethical business conduct argue that HR should be at the center of any corporate code of ethics.

answer

True

question

For the R&D team, the real ethical dilemmas come when decisions are made about product quality.

answer

True

question

Which of the following illustrates a firm having a triple bottom-line (3BL) approach?

answer

Brink-T Technologies donates ten percent of its profit to charity, reduces toxic emission from its plants, and has ten percent increase in financial turnovers.

question

The Kyoto Protocol requires developed nations to reduce their greenhouse gas emissions only by modifying their domestic industries.

answer

False

question

The _____ to corporate management refers to the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.

answer

social contract approach

question

Which of the following is an example of corporate social responsibility?

answer

Dawson Inc. uses clean-fuel technology shuttle for employee conveyance.

question

The practices of making a company's operations _____, to offset damage to the environment through their greenhouse gas emissions, was initially developed as a solution for those industries that face significant challenges in reducing their emissions.

answer

carbon neutral

question

Which of the following best illustrates the social contract approach to corporate management?

answer

At Redder Enterprises, employees' wages have grown at a higher rate than inflation.

question

Ethical CSR is the purest or most legitimate type of CSR.

answer

True

question

There are four distinctive types of corporate social responsibility (CSR)—economic, ethical, altruistic, and strategic.

answer

False

question

The human resource function of an organization can be divided into two distinct areas: financial transactions and accounting function.

answer

True

question

Finance is a key function in a value chain.

answer

False

question

The _____ to corporate social responsibility assumes that there are no external consequences to the actions of the corporation and its managers.

answer

instrumental approach

question

One of the newest and increasingly questionable practices in the world of CSR is the notion of making operations "carbon neutral."

answer

True

question

Which of the following statements is true of the social contract approach to corporate management?

answer

The modern social contract approach argues that there is an obligation for the corporation to meet the demands of the society rather than just the demands of a targeted group of customers.

question

Which of the following statements is true of the financial functions of an organization?

answer

The accounting function keeps track of all those financial transactions by documenting the money coming in and money going out and balancing the accounts at the end of the period.

question

Critics have argued that, from an ethical perspective, altruistic CSR is immoral since it represents a violation of shareholder rights if they are not given the opportunity to vote on the initiatives launched in the name of corporate social responsibility.

answer

True

question

Joseph F. Keefe asserts that there are three major trends behind the corporate social responsibility phenomenon.

answer

False

question

Emissions credits are fixed for every market, and they cannot be bought or sold.

answer

False

question

With the transition to an information-based economy, consumers and investors have more information at their disposal than at any time in history.

answer

True

question

Which of the following statements is true of ethical challenges in organizations?

answer

Profit is the main reason behind bending the rules regularly in the workplace.

question

Utilitarianism refers to the theory that suggests actions are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of the situation.

answer

False

question

Research and development (R&D) professionals carry the responsibility for the future growth of the organization.

answer

True

question

If an employee leaves a company, the _____ department should host an exit interview to ensure that anything the organization can learn from the employee's departure is fed back into the company's strategic plan for future growth and development.

answer

human resource

question

Strategic CSR runs the greatest risk of being perceived as self-serving behavior on the part of the organization.

answer

True

question

Friedman's view of the corporate world supports the rights of individuals to make money with their investments.

answer

True

question

The accounting profession is governed by a set of laws and established legal precedents.

answer

False

question

Merging the roles of the chief executive officer and the chairperson of the board is inadvisable because:

answer

the power of the stockholders is minimized.

question

The board of directors of a company:

answer

oversees the governance of the organization.

question

Which of the following principles should a company follow for effective corporate governance?

answer

The board of directors and the CEO should work together when evaluating risk-versus-reward scenarios.

question

Corporate governance is concerned with how well an organization meets its obligations to its stakeholders.

answer

True

question

Studies show that a commitment to good corporate governance makes a company both more attractive to investors and lenders, and more profitable.

answer

True

question

What did the King I and King II reports have in common?

answer

They both incorporated a code of corporate practices that looked beyond corporations.

question

The "comply or explain" methodology refers to the set of guidelines that requires companies to abide by a set of operating standards or face stiff financial penalties.

answer

False

question

The corporate governance committee of a company oversees compliance with the company's internal code of ethics as well as any federal and state regulations on corporate conduct.

answer

True

question

Which of the following is true of the King I report?

answer

It considered corporations' impact on the larger community.

question

In what way did the "comply or else" approach differ from the "comply or explain" approach to corporate governance?

answer

Unlike "comply or explain", the "comply or else" approach does not offer corporations an easy way to avoid conforming to its operating standards.

question

The King II report formally recognized the need to move the stakeholder model forward and to consider a triple bottom line instead of a single bottom line of profitability.

answer

True

question

Poor corporate governance:

answer

weakens a company's potential and makes it less attractive to investors.

question

Why was the "comply or explain" approach to corporate governance problematic?

answer

Its definition of what constitutes an acceptable explanation for not complying was vague.

question

The "comply or else" guideline gave companies the flexibility to comply with governance standards or explain their noncompliance in their corporate documents.

answer

False

question

By merging the roles of the chief executive officer and the chairperson of the board, the oversight provided by the board of directors is magnified.

answer

False

question

The ethical conduct of a business can be influenced by the individual personalities involved.

answer

True

question

Do unto others as you would have them do unto you explains the _____.

answer

golden rule

question

The process of ethical reasoning involves looking at the available information and then drawing conclusions based on that information in relation to our own ethical standards.

answer

True

question

Alison Anderson, the CEO of Anderson Inc., laid the foundation for an apt professional behavior in her workplace. She was honest, aware, and sensitive and is considered a role model by young entrepreneurs. Which of the following basic categories of ethics is depicted in this scenario?

answer

Personal integrity

question

The positive outcome of the awareness generated by unethical behavior in the business world has been increased attention to the need for third-party guarantees of ethical conduct and active commitments from the rest of the business world.

answer

True

question

Corporate governance is the system by which businesses are directed and controlled.

answer

True

question

_____ is the system that directs and controls business organizations.

answer

Corporate governance

question

Which of the following is the lowest level of moral development in Lawrence Kohlberg's stages of ethical reasoning?

answer

Preconventional

question

The Ethics Resource Center defines a code of ethics as a central guide to support day-to-day decision making at work.

answer

True

question

An organization's code of ethics has no relevance to its employees.

answer

False

question

The problem with utilitarianism is the focus on doing the most good for a select few, such as Adolf Hitler and his idea of launching a national genocide against Jews on the ethical grounds of restoring the Aryan race.

answer

False

question

According to Kohlberg's framework, an individual can jump beyond the next stage of his or her six stages.

answer

False

question

Which of the following statements accurately explains the basic categories of ethics?

answer

Personal integrity, a category of ethics, looks at ethics from an external rather than an internal viewpoint.

question

The problem with virtue ethics is that:

answer

societies can place different emphasis on different virtues.

question

Which of the following is true of corporate ethics?

answer

It has moved from the domain of legal departments into the organizational mainstream.

question

Ethics for the greater good is also referred to as utilitarianism.

answer

True

question

The basic assumption of ethical theory is that:

answer

a person as an individual or community is in control of all the factors that influence the choices they make.

question

The three principles by which ethical dilemmas are resolved are successful in all situations.

answer

False

question

The terms morals is applied to a society while the term values is used when referring to an individual.

answer

False

question

Which of the following is true of business ethics?

answer

Business ethics should not be applied as a separate set of moral standards or ethical concepts from general ethics.

question

Which of the following will most likely influence the moral standards of an individual?

answer

A strict family upbringing

question

Which of the following is a problem with the universal ethics approach?

answer

The problem with this approach is the reverse of the weakness in ethics for the greater good.

question

Preconventional is the lowest level of Lawrence Kohlberg's stages of ethical reasoning.

answer

True

question

Utilizing the ends-based principle to resolve an ethical dilemma necessitates focusing solely on the decisions that other people in your situation would arrive at.

answer

False

question

Which of the following is true of stakeholders?

answer

Not every stakeholder is relevant in every business situation.

question

An organization's code of ethics has no relevance to its stakeholders.

answer

False

question

Ethical dilemmas are the study of how ethical theories are put into practice.

answer

False

question

Kohlberg stated that it would be impossible for a person to comprehend the moral issues and dilemmas at a level so far beyond his or her life experience and education.

answer

True

question

Once the type of ethical conflict has been determined, there are two principles by which it can be resolved: Volcker's Rule and Campbell's Rule.

answer

False

question

An oxymoron is the combination of two facts that mirror and support each other.

answer

False

question

Which of the following is the final step of the three-step process for solving an ethical problem?

answer

Make a decision

question

The code of ethics adapted by the _____ speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system."

answer

American Marketing Association

question

Prior to the passing of the Foreign Corrupt Practices Act, unethical corporate behavior was regulated by the _____, which required full disclosure of funds that were taken out of or brought into the United States.

answer

Bank Secrecy Act

question

Under the Foreign Corrupt Practices Act, facilitation payments are payments that are acceptable (legal), provided they expedite or secure the performance of a routine governmental action.

answer

True

question

Title III of the Sarbanes-Oxley Act requires senior auditors to rotate off an account every five years, and junior auditors every seven years.

answer

False

question

Why was the Foreign Corrupt Practices Act criticized?

answer

The act formally recognizes the facilitation payments, which would otherwise be acknowledged as bribes.

question

Which of the following is true of the Federal Sentencing Guidelines for Organizations (FSGO)?

answer

The FSGO includes an exhaustive list of covered business crimes.

question

In what way do bribes differ from grease payments under the FCPA?

answer

Unlike grease payments, bribes induce officials to act in violation of their lawful duty.

question

Which of the following is true of the penalties under the Foreign Corrupt Practices Act?

answer

Officers, directors, stockholders, employees, and agents are subject to a fine of up to $250,000 per violation and imprisonment for up to five years.

question

The _____ is a government agency within the Federal Reserve that oversees financial products and services.

answer

Consumer Financial Protection Bureau

question

The _____ refers to the legislation that was promoted as the "fix" for the extreme mismanagement of risk in the financial sector that led to a global financial crisis in 2008-2010.

answer

Dodd-Frank Wall Street Reform and Consumer Protection Act

question

Title VIII of the Sarbanes-Oxley Act imposes fines on employees for lying to other employees regarding company benefits and pay.

answer

False

question

Under no circumstances can the culpability score be increased or decreased.

answer

False

question

The processing of governmental papers, such as visas, is an example of a routine governmental action.

answer

True

question

Under the FGSO, the death penalty:

answer

holds businesses liable for the criminal acts of their employees and agents.

question

The _____ is a government agency established to prevent banks from failing and otherwise threatening the stability of the U.S. economy.

answer

Financial Stability Oversight Council

question

Which of the following is one of the key pieces of U.S. legislation designed to discourage, if not prevent, illegal conduct within businesses?

answer

The U.S. Federal Sentencing Guidelines for Organizations

question

The culpability score, according to the Federal Sentencing Guidelines for Organizations, is the calculation of the organization's degree of blame or guilt and is a multiplier of the base fine up to 40 times.

answer

False

question

Title IX of the Sarbanes-Oxley Act requires CEOs and CFOs to certify their periodic reports and imposes penalties for certifying a misleading or fraudulent report.

answer

True

question

Under the Federal Sentencing Guidelines for Organizations, a judge has the discretion to impose the "death penalty" upon an organization, where the fine matches all the organization's assets.

answer

True

question

The Financial Stability Oversight Council is led by the Treasury secretary and is made up of top financial regulators.

answer

True

question

Tracking the history of internal whistle-blowing is easier than tracking the history of external whistle-blowing.

answer

False

question

Keystroke loggers can only capture information that is not deleted.

answer

False

question

The primary reason for the enactment of the Civil False Claims Act was to:

answer

protect the government from fraudulent defense contractors.

question

If an employee's personal value system prompts him or her to speak up about the misconduct of the organization he or she works for, the employee takes on the role of a whistle-blower.

answer

True

question

Which of the following is a difference between internal and external whistle-blowing?

answer

Unlike external whistle-blowing, the history of internal whistle-blowing is more difficult to track.

question

The Whistleblower Protection Act of 1989 is also known as the Corporate and Criminal Fraud Accountability Act.

answer

False

question

Before the Whistleblower Protection Act of 1989 was passed, whistle-blowers weren't entitled to any sort of monetary reward from the government.

answer

False

question

Which of the following is a disadvantage of technological advances in a workplace?

answer

Loss of privacy

question

The argument over privacy at work has traditionally centered on:

answer

the amount of time that employees were on-site.

question

Telecommuting does not allow employees any degree of flexibility in terms of the location from which they work.

answer

False

question

Emily, a website designer, is hired by an organization to create an internal website that contains information meant to be accessed solely by employees. This website is the company's _____.

answer

intranet

question

According to Adam Moore, consent given by employees with little choice is referred to as thick consent.

answer

False

question

The Sarbanes-Oxley Act of 2002 is also known as:

answer

the Corporate and Criminal Fraud Accountability Act.

question

One of the ways in which multinational corporations lower their expenses is by shipping work to countries with lower labor costs.

answer

True

question

Which of the following is an argument against creating a "locked-down" work environment?

answer

Employees who resent being constrained might leave the company.

question

Under the federal Civil False Claims Act, whistle-blowers are referred to as "relators."

answer

True

question

Cyberliability applies the existing legal concept of liability to the field of computers.

answer

True

question

The Whistleblower Protection Act of 1989 introduced a new reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

answer

False

question

_____ whistle-blowing involves an employee bringing the organization's misconduct to the attention of his or her manager or supervisor.

answer

Internal

question

Whistle-blowing is not considered ethical under any circumstances.

answer

False

question

Customer service calls and computer tech support are examples of services that cannot be outsourced to another country.

answer

False

question

Becoming a whistle-blower and taking the story public should be seen as the first resort rather than the last.

answer

False

question

The _____ of 1989 guaranteed the anonymity of federal employees, but not that of other employees.

answer

Whistleblower Protection Act

question

The abbreviation "qui tam" establishes a whistle-blower as a deputized petitioner for the government in cases that expose fraudulent behavior of companies.

answer

True

question

A whistle-blower is an individual who discovers corporate misconduct and chooses not to do anything about it.

answer

False

question

Which of the following explains why employers are in favor of monitoring and restricting the actions of their employees?

answer

The implications of vicarious liability for employers

question

If there is evidence that the employee is motivated by the opportunity for financial gain, the legitimacy of his or her whistle-blowing should be questioned.

answer

True

question

If there is evidence that the employee is carrying out an individual vendetta against the company, the legitimacy of his or her whistle-blowing should be questioned.

answer

True

question

It is argued that the actions of whistle-blowers are not always motivated by their integrity, but by money or by their egos.

answer

True

question

Under the Dodd-Frank Wall Street Reform and Protection Act of 2010, a whistle-blower is penalized stiffly for acting against the Commodity Futures Trading Commission.

answer

False

question

Sending digitized information across fiber-optic wires raises no ethical questions.

answer

False

question

Which of the following is true of telecommuting?

answer

It allows employees a certain degree of flexibility in terms of their work hours.

question

Technological advances over the last two decades have made it more difficult to pass the personal data of customers from one place to another.

answer

False

question

A whistle-blower hotline is a telephone line where employees can leave messages to alert the _____ of suspected corporate misconduct without revealing their identity.

answer

company

question

According to the legal concept of cyberliability, employers can be held liable for the actions of their employees through Internet communications to the same degree as if they had written those communications on company letterhead.

answer

True

question

Which of the following is true of the False Claims Act of 1863?

answer

It was designed to prevent profiteering from the Civil War.

question

Under federal law, video surveillance is legal only if:

answer

the camera focuses on publicly accessible areas.

question

Which of the following is a benefit of telecommuting?

answer

Employees have the flexibility of taking care of their personal needs during work hours.

question

Packet-sniffing software can be used to monitor employees' private accounts, as long as they are accessed on workplace networks or phone lines.

answer

True

question

The availability of ongoing technological advancements has made it easier to determine precisely where work ends and personal life begins.

answer

False

question

Derek oversees the investigations of wrongdoings in his organization and provides additional guidance and support to the employees. He also develops training programs for every department to maintain organizational conduct. Which of the following positions does Derek most likely hold in his company?

answer

Ethics officer

question

The guidelines set down by the Organization for Economic Cooperation and Development are legally binding.

answer

False

question

Which of the following is a characteristic of demanding creditors?

answer

demanding the firm to pay loans on time

question

Typical markets represent federal, state, and local officials who simplify and reduce rules and regulations, thus discouraging firms from hiring more people and paying more taxes.

answer

False

question

The UN Global Compact, which encourages organizations to make a voluntary commitment to corporate citizenship, is widely recognized as the world's largest initiative of its kind.

answer

True

question

A developed nation is a country that enjoys a high standard of living as measured by economic, social, and technological criteria.

answer

True

question

Which of the following is true of utilitarianism?

answer

It leads to situations in which there is no accountability for individual actions.

question

After hiring an ethics officer, which of the following is the immediate next stage in making ethical behavior sustainable for a company?

answer

Rewarding ethical behavior demonstrated by employees

question

Multinational corporations are also known as intranational corporations.

answer

False

question

Which of the following is true of the UN Global Compact?

answer

It serves as a guideline for transparency and public accountability.

question

Which of the following statements is true of an ethics officer?

answer

An ethics officer monitors the ethical performance of the organization both internally and externally.

question

According to the Ethics and Compliance Officers Association survey, which of the following is ranked lowest in the category of the main responsibilities of an ethics officer?

answer

Conducting investigations of wrongdoing

question

Multinational corporations include those corporations that generate products and/or services in multiple countries and implement operational policies (marketing, staffing, and production) that go beyond national boundaries.

answer

True

question

The UN Global Compact deals exclusively with two key areas of concern: fair pricing and customer satisfaction.

answer

False

question

A multinational corporation is a company that provides and sells products and services across multiple national borders.

answer

True

question

It is important to establish an extensive training program to support the published code of ethics of a company.

answer

True

question

Globalization raises concerns about the:

answer

ethical behavior of economically advanced nations toward developing ones.

question

Utilitarianism refers to:

answer

ethical choices that consider the greatest good for the greatest number of people.

question

A company should avoid communicating its ethics policy to external stakeholders.

answer

False

question

Ethical Relativism refers to the gray area in which ethical principles are defined by the traditions of society, personal opinions, and the circumstances of the present moment.

answer

True

question

As per the labor standards of the UN Global Compact, businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

answer

True

question

In what way has globalization affected the economy?

answer

National markets are being overtaken by regional trade blocs.

question

A carefully "wordsmithed" document and carefully positioned press releases suggest that an organization is strictly following the policy of transparency.

answer

False

question

How can an organization move its ethical commitment to a global scale successfully?

answer

By creating an ethical standard that respects the local customs of the other countries.

question

The role of an ethics officer is to enforce the code of ethics and provide support to any employees who witness unethical behavior.

answer

True

question

The audience for the code of ethics of an organization includes only its employees.

answer

False

question

Which of the following is true of the guidelines offered by Richard DeGeorge for organizations doing business in other countries?

answer

His guidelines represented an ethical ideal that, at best, provided a conceptual foundation.

question

A code of ethics is a guide for employees that covers every possible event.

answer

False

question

The UN Global Compact:

answer

is the largest initiative of its kind in the world.

question

The term "globalization" has applications in commercial, economic, social, and political environments.

answer

True

question

Which of the following is a disadvantage of globalization?

answer

Multinational corporations are depleting the natural resources of less-developed countries.

question

What is the UN Global Compact?

answer

It is a voluntary corporate initiative that addresses the main concerns of globalization.

question

Which of the following concepts is illustrated by a company which, when doing business abroad, takes advantage of the local customs to justify an action that is illegal in its home country?

answer

Ethical relativism

question

A transparent organization tends to avoid open and honest communication with all its stakeholders.

answer

False

question

Globalization refers to the expansion of international trade to a point where, across the globe, regional trade blocs have overtaken national markets.

answer

True

question

The difference between reactive and proactive policies is that:

answer

reactive policies are driven by events and/or a fear of future events, whereas proactive policies are driven by a clear sense of what is construed as ethical for the organization.

question

The principles and standards of organizational behavior set down by the UN Global Compact cover more issues than the OECD Guidelines for Multinational Enterprises.

answer

False

question

The European Economic Community is an example of a regional trade bloc.

answer

True

question

Which of the following is recommended by the OECD?

answer

Companies should contribute to the innovative capacities of host countries.

question

There is no perfect model for a code of ethics.

answer

True

Applied Ethics Chapters 1 – 10 Study Questions – Flashcards

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