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Chapter 1: Unethical Behaviors in Organizations and Human Nature

1. Which of the following groups or individuals are considered stakeholders in business?


a) employees
b) competitors
c) suppliers
d) consumers
e) all of the above

2. Which of the following items is not a cost associated with unethical behaviors?
a) legal costs
b) employee theft
c) reputation costs
d) investor confidence
e) monitoring costs

3. Which of the following operational areas are not confronted with ethical issues?
a) upper management
b) secretaries/administrative assistants
c) mid-level management
d) boards of directors
e) none of the above

4. Employee theft can include which of the following:


a) stealing money
b) stealing time
c) stealing products
d) all of the above
e) none of the above

5. Monitoring costs can be incurred by organizations for which of the following reasons:
a) employee surveillance
b) increased supervision costs
c) new rules and regulations
d) all of the above
e) none of the above

6. Which of the following is not a competitive advantage associated with ethical organizations?
a) employee motivation and productivity
b) employee recruitment
c) reputational equity
d) all of the above
e) none of the above

7. Which of the following views of human nature have implications for the way ethical issues are addressed by
management?
a) humans are born with prior knowledge of right and wrong
b) humans are born good
c) humans are born with inherited sin
d) humans are “blank slates”
e) all of the above
f) none of the above
8. Which of the following is not considered one of Kohlberg’s six stages of moral development?
a) social-contract orientation
b) universal ethical principles orientation
c) obedience-and-punishment orientation
d) blank slate orientation
e) none of the above

9. In Kohlberg’s theory of moral development, the post-conventional level of moral reasoning is based on
which of the following:
a) applying abstract universal principles
b) applying the laws of society
c) applying group membership standards
d) considering benefit to the individual
e) none of the above

10. In Kohlberg’s theory of moral development, the pre-conventional level of moral reasoning is based on
which of the following:
a) obedience-and-punishment orientation
b) applying abstract universal principles
c) considering the interests of others
d) considerations of pleasing others
e) none of the above

11. In Kohlberg’s theory of moral development, the conventional level of moral reasoning is based on which of
the following:
a) applying abstract universal principles
b) considering the interests of others
c) the interests of the individual
d) obedience-and-punishment orientation
e) none of the above

12. In Kohlberg’s theory of moral development, individuals in the early stages rely on ____________ for
determining right and wrong.
a) their parents’ wishes
b) their sense of justice
c) avoiding punishment
d) none of the above
e) all of the above

13. In the most developed stages of moral reasoning, individuals rely on _______________ for determining
right and wrong.
a) group norms and rules
b) universal ethical principles
c) egoism
d) none of the above
e) all of the above

14. The three levels of Kohlberg’s stages of moral development are distinguished by ___________.
a) an individual’s needs and wants
b) an individual’s relationship with him/herself
c) an individual’s universal principles
d) an individual’s relationship with society
e) none of the above
15. Cognitive dissonance occurs when an individual considers _______________________, which creates an
unpleasant state of mind.
a) punishment versus reward
b) inconsistent or contradictory attitudes and beliefs
c) the stages of moral development
d) all of the above
e) none of the above

16. ________________________ are principles compelling people to action, found in all cultures and major
world religions.
a) moral reasonings
b) cognitive dissonances
c) moral imperatives
d) individual opinions
e) individual rules

17. Which of the following are considered universal ethical principles?


a) the “Golden Rule”
b) justice
c) equality
d) all of the above
e) none of the above

18. Motivation to progress through the stages of moral development involves which of the following:
a) moral discomfort
b) moral comfort
c) moral complacency
d) all of the above
e) none of the above

19. _______________________ are defined as the deliberate pursuit of actions intended to benefit the interests
or welfare of others.
a) moral imperatives
b) altruistic behaviors
c) societal norms
d) all of the above
e) none of the above

20. Which of the following is not a typical reason why good people occasionally behave unethically?
a) a good person chose one set of values over a competing set of values
b) a good person may justify the unethical behavior based on a reason considered more compelling
c) a good person may not have intended to generate the resultant unethical outcome
d) a good person may think he/she can get away with unethical behavior
e) a good person may choose not to prevent an unethical behavior for compelling reasons such as fear of
retaliation.

21. Which of the following can lead to unintended unethical behavior?


a) misaligned management systems
b) situational ambiguity
c) insufficient knowledge
d) all of the above
e) none of the above

22. Which of the following is not cited as a reason people intentionally behave unethically?
a) avoiding punishment and seeking praise
b) feeling pressure to do so by those in authority
c) believing that the organizational culture encourages or tolerates unethical behavior
d) feeling pressure to do so by overly aggressive business objectives
e) feeling pressure to do so by moral imperatives

23. Which of the following is not one of Kidder’s ethical dilemmas based on competing values?
a) short term versus long term
b) truth versus loyalty
c) morality versus ambiguity
d) individual versus community
e) justice versus mercy

24. Managers and owners are also victims of unethical behaviors. T

25. Most organizations face no ethical challenges. F

26. An action sequence of decision-making consists of the motivation behind the act, the act itself, and the
consequences of the act, which can carry ethical weight. T

27. Small businesses generally face fewer problems with unethical behaviors than do large organizations. F

28. Research indicates that unethical behavior in organizations is an issue in areas as diverse as government
agencies, the military, construction, the law, and medical research. T

29. Legal costs are the only cost associated with unethical behaviors. F

30. The biggest source of retail industry theft is customers. F

31. Employee theft only occurs at middle- and lower-levels of organizations. F

32. Reputation management is a minor concern for most organizations. F

33. Abusive supervision of employees, including verbal abuse, is associated with absenteeism, health care
costs and lost productivity. T

34. Research indicates linkages between ethical performance and financial performance of organizations. T

35. Unethical organizations are more likely to attract higher-quality job applicants. F

36. An effective method of persuading employees of the importance of being ethical is to focus on benefits of
ethical behavior and costs of unethical behavior. T

37. If anticipated return-on-investments (ROIs) are similar, potential lenders and investors consistently choose
unethical organizations rather than ethical organizations. F

38. Human nature is universally understood to predispose us to unethical behavior. F

39. Egocentric punishment avoidance is associated with the pre-conventional level of moral development. T

40. According to the conventional level of moral reasoning, being “good” or “right” means to be in
accordance with societal rules. T
41. Applying universal ethical principles such as justice and equality is associated with the pre-conventional
level of moral development. F

42. Cognitive dissonance leads to development of the next higher stage of moral development. T

43. Moral imperatives are principles compelling people to action. T

44. According to psychological research, individuals begin to lie when they are teenagers and young adults. F

45. Unintended unethical behaviors can result from insufficient knowledge or situational ambiguity. T

46. Managers must be concerned with both unintended and intended unethical behavior. T

47. The most basic justification people provide for behaving unethically is to avoid punishment and receive
praise. T

48. Providing goods and services is the only ethical aspect of organizational operations. F

49. A stakeholder is any person or organization that is affected by, or could affect, an organization’s goal
accomplishment. T

50. A common ethical dilemma involves choosing between the competing values of truth versus loyalty. T

Essay

51. Provide at least three examples of costs associated with unethical behaviors. Provide an example, in the
business context, for each.

May include legal costs, employee theft, monitoring costs, reputation costs, abusive treatment costs,
recruitment and turnover costs.

52. Discuss the components of an action sequence in decision-making, and its relation to moral action.
Includes the act’s motivation, the act itself, and the consequences of the act. Ethical analysis takes
into account all aspects of an action sequence. “It is the motivation that led to the act, and the
consequences of the act, that carry ethical weight.”

53. Define the stakeholder conception of business ethics, and identify at least three examples of stakeholders in
business.
Ans: “Any person or organization that is affected by, or could affect, an organization’s goal
accomplishment.” May include employees, customers, suppliers, competitors, the environment, among
others.

54. Discuss Kidder’s notion of the four types of ethical dilemmas based on competing values. Provide an
example of each dilemma.
Ans: Truth vs. loyalty, individual vs. community, short term vs. long term, justice vs. mercy

55. Provide at least four examples of competitive advantages of ethical organizations.


Ans:
May include enhanced financial performance, higher levels of employee motivation and
productivity, increased consumer satisfaction and loyalty, opportunities with high - quality suppliers,
higher levels of investor satisfaction and loyalty, reputational advantages.
56. Discuss the various understandings of human nature, defined as the moral, psychological and social
characteristics of human beings, which are fundamental to managing ethics.
Ans: Should include Socratic and Platonic ideas that individuals are born with a soul that forms an
individual’s inner essence; religious faith perspectives that individuals are born in the image of God, or
with a conscience, that is good, which may also include moral intuition; individuals are born morally
imperfect, or with inherited sin that must be healed; or born morally neutral, including the Aristotelian
perspectives of the mind as an “unscribed tablet” or later “blank slate”.

57. Define the three broad stages of moral development by including at least two characteristics of each stage:
the pre-conventional level, the conventional level, and the post-conventional level.
Ans:
Preconventional: moral reasoning is based on benefit to the individual, based on personal interests, moral
determination based on needs and wants; includes obedience – and -punishment orientation and
instrumental orientation. Conventional: moral reasoning is based on social role or group member
analysis, interests of others must be considered, moral determination is based on performing good or right
roles, pleasing others, maintaining societal order; includes “good-boy” - “nice -girl” orientation and “law-and
-order” orientation. Postconventional Level: moral reasoning is based on application of universal
principles, there are principles beyond societal that matter, moral determination is based on abiding by
abstract principles applied to society; includes social-contract orientation and universal ethical principles
orientation.

58. Discuss why good people occasionally behave unethically. Provide at least three examples of unintended
unethical behaviors.
Ans: Unintended behaviors could result from i nsufficient knowledge, situational ambiguity, or a
misaligned management system. Examples may include choosing between competing values (Kidder’s
four types of ethical dilemmas), discussion of good motives leading to unethical results, the ambiguity or
complexity of ethical situations, and misaligned management systems that lead to unethical results that
are the consequence of the decision’s action sequence.

59. Discuss the reasons people cite for behaving unethically. Provide at least three examples.
Ans: The most basic justification is to avoid punishment and receive praise. Some people attribute
unethical behavior to their perceptions of organizational cultures that either encourage or tolerate
unethical behaviors. Some behave unethically as a result of feeling pressured to do so by authority
figures, pursuit of overly aggressive objectives, perceptions of loyalty or wanting to be a “team player”,
or other perceived pressures. Some believe that the end goal or “ends” justify the means of unethical
behavior.

60. Discuss the most common types of unethical behaviors in organizations. Provide at least three examples.

Ans: May include reference to the types identified in the Ethics Resource Center survey, including company
resource abuse, abusive or intimidating behavior toward employees, lying to employees, email or internet
abuse, conflicts of interest, discrimination, lying to outside stakeholders, employee benefit violations, employee
privacy breach, improper hiring practices, or falsifying time or expenses. Unethical behaviors can be
considered by extent, profession and industry, and operation areas.

Chapter 2: A Historical Perspective on Business Ethics


1. ______________ were granted by the British government to allow several people to create organizations by
pooling financial resources, which enabled riskier business projects to be undertaken.
a) pacts
b) charters
c) constitutions
d) doctrines
e) none of the above

2. Settlements in Roanoke, Jamestown and Plymouth were early examples of ________________.


a) business ventures
b) participant democracies
c) uplifting indigenous populations
d) all of the above
e) none of the above

3. The ________________, chartered by King James, searched for gold and gems and led trading in furs and
spices in the Roanoke Islands.
a) Columbus excursions
b) Jamestown settlements
c) Virginia Company of London
d) American Charters
e) none of the above

4. _____________________ were laborers who served their masters for several years in exchange for
transportation, food, clothing, lodging, and eventual freedom.
a) slaves
b) settlers
c) indentured servants
d) Pilgrims
e) none of the above

5. Among the reasons Pilgrims settled in Massachusetts were desires for:


a) religious freedoms
b) economic opportunities
c) new trade routes
d) all of the above
e) none of the above

6. The ________________ in 1773 was a major colonial incident resulting from the East India Company’s
monopolistic business practices.
a) Boston Tea Party
b) Plymouth settlement
c) Revolutionary war
d) all of the above
e) none of the above

7. The Boston Tea Party was a response to which of the following British policies?
a) monopolistic business practices
b) attempts to limit religious freedoms
c) attempts to limit the rights of indigenous people
d) all of the above
e) none of the above
8. Which of the following early leaders was not among the authors of the Declaration of Independence?
a) Thomas Jefferson
b) James Madison
c) Benjamin Franklin
d) all of the above
e) none of the above

9. Which of the following rights were not included in the Bill of Rights?
a) right to bear arms
b) freedom of the press
c) freedom from unreasonable search and seizure
d) freedom to rule the colonies
e) freedom of religion

10. The fundamental belief on which the Declaration of Independence was founded, grounded in philosophical
notions of basic human rights, was ________________.
a) the right to bear arms
b) the right to own property
c) government should be based on the consent of the governed
d) government should pursue happiness
e) none of the above

11. _____________, a Scottish philosopher, provided many of the teachings that underlie capitalist systems.
a) James Madison
b) Adam Smith
c) John Locke
d) King George III
e) none of the above

12. Fundamental notions behind Adam Smith’s concept of a fair economic system include which of the
following?
a) reason and liberty
b) freedom and religious control
c) selfishness and justice
d) all of the above
e) none of the above

13. Adam Smith argued that “wealth of nations” resulted from which of the following?
a) freedom and competition
b) economic self-interest
c) capitalist economic systems
d) all of the above
e) none of the above

14. According to its definition, capitalism as an economic system is characterized by which of the following?
a) mercantilist policies
b) democratic policies
c) freedom and competition
d) religious freedom
e) selfishness at all costs

15. Which of the following were not among the benefits early capitalists associated with a free and competitive
market economy?
a) more goods and services
b) lower prices
c) better-quality products
d) greater labor flexibility
e) higher tax revenues

16. Adam Smith argued that when self-regulating moral mechanisms fail, ________________ must serve to
protect the public from egregious immoral actions.
a) democracy
b) strong justice systems
c) individual sanctions
d) all of the above
e) none of the above

17. Prior to capitalism, key management positions were often filled based on which of the following?
a) family connections
b) political connections
c) wealth
d) all of the above
e) none of the above

18. Government intervention in the marketplace, Smith reasoned, is needed under only which of the following
conditions:
a) when contracts are violated
b) when merchants abuse their freedom by committing injustices against others
c) when the pursuit of self-interest does not generate highly desired social welfare benefits
d) all of the above
e) none of the above

19. Smith cautioned that owners who do not rely on moral sentiments when dealing with laborers could result
in which of the following problems:
a) an overabundance of labor, which could drive wages below subsistence levels
b) excessive application of piece-rate incentives, which could increase productivity in the short term but
damage the worker’s health in the long run
c) excessive application of division of labor, which could increase productivity in the short term but damage
the worker’s intellectual abilities in the long term
d) all of the above
e) none of the above

20. The period in the early 1800s marked by significant economic growth in the United States was called:
a) the Revolutionary War
b) the Industrial Revolution
c) the Declaration of Independence
d) the birth of capitalism.
e) none of the above

21. The Industrial Revolution was characterized by which of the following?


a) religious freedom
b) development of ammunitions
c) technological innovation
d) all of the above
e) none of the above

22. The Sherman Antitrust Act of 1890 outlawed which of the following?
a) monopolies
b) mercantiles
c) charters
d) all of the above
e) none of the above

23. In the late 1880s, states began to compete against one another in which of the following ways?
a) relaxing religious freedoms
b) introducing the right to bear arms
c) simplifying rules for obtaining corporate charters and eliminating tax restrictions
d) monopolizing business operations
e) none of the above

24. First developed in the late 1880s in response to increasing corporate complexity and growth, the concept of
__________________ refers to laws protecting individual shareholders from financial liability if businesses
are sued or fail.
a) antitrust legislation
b) limited liability
c) antitrust acts
d) all of the above
e) none of the above

25. _________________ is a system in which some individuals are perceived as property, and thereby capable
of being owned by other people and subject to the whims of their owners, with no provisions for eventual
freedom.
a) slavery
b) indentured servitude
c) low-wage workers
d) all of the above
e) none of the above

26. The U.S. Constitution was written without addressing the issue of slavery to:
a) recognize that slaves were fundamental to the growth of the new nation
b) appease southern states whose economies depended on slaves
c) protect the rights of paid workers
d) all of the above
e) none of the above

27. Dependency on slave labor ________________ during the Industrial Revolution.


a) increased
b) decreased
c) stayed the same
d) was outlawed
e) was eliminated

28. A(n) _________________ is an association of employees that advances its members interests, including
wages, benefits, work rules and other conditions of employment, through collective bargaining with an
employer.
a) oligopoly
b) strike
c) labor union
d) all of the above
e) none of the above

29. Philosophers including ___________________ and Friedrich Engels disputed Adam Smith’s assumptions
about the moral sentiments of business people, and inspired some union organizers.
a) Karl Marx
b) Samuel Gompers
c) Milton Friedman
d) all of the above
e) none of the above

30. The establishment of __________________ was an early victory for labor unions, resulting from strikes
across the nation in 1886.
a) fair wages
b) the eight-hour work day
c) equal pay for all workers
d) all of the above
e) none of the above

31. The 1935 passage of which law legally obligated employers to negotiate with duly elected unions and
codified regulations governing the process for forming a union?
a) the National Labor Relations Act (NLRA)
b) the Sherman Antitrust Act (SAA)
c) the Taft Hartley Act (TFA)
d) the National Strike Act (NSA)
e) none of the above

32. U.S.-born _______________ unionized immigrant farm workers in California and led a 10-year
nationwide boycott against grapes picked by nonunion workers.
a) Che Guevera
b) Cesar Chavez
c) Samuel Gompers
d) Taft Hartley
e) none of the above

33. _________________’s emphasis on liberty has increased national wealth more than any other economic
system.
a) socialism
b) communism
c) capitalism
d) feudalism
e) none of the above

34. Education is ______________ correlated with wealth, with a slight decline occurring at the doctoral level.
a) positively
b) negatively
c) equally
d) inversely
e) none of the above

35. The minimum wage, the lowest wage an employee can legally pay an employee, an amount higher than
what the market would otherwise establish, was federally mandated by which of the following pieces of
legislation?
a) the Fair Labor Standards Act
b) the National Labor Relations Act
c) the Great Depression Act
d) the Living Wage Act
e) none of the above
36. In 2009, the federal government tried to determine “fair compensation” for top executives that accepted
federal bailout funds by:
a) limiting the total amount of compensation
b) regulating stock options
c) mandating lump sum payments
d) requiring cash bonuses
e) none of the above

37. One method that may assist in more equitable levels of executive pay that limits incentives for stock price
manipulation is:
a) extended payout periods for stock options
b) lump-sum stock option payouts
c) elimination of stock options
d) all of the above
e) none of the above

38. The Reagan Administration of the 1980s began a process of deregulation, or __________________, which
continued under the Clinton and Bush administrations.
a) lifting government restrictions on market activity
b) tightening government restrictions on market activity
c) ensuring equitable stock options
d) ensuring consumer protections
e) none of the above

39. The Federal Sentencing Guidelines, issued in 1991, were an attempt by the government to:
a) mandate policies and procedures that reinforce ethical behavior
b) require widespread consumer protections
c) require widespread worker protections
d) encourage managers to implement policies and procedures that reinforce ethical behavior
e) none of the above

40. A B Corporation is distinct from the typical C Corporation designation because the B Corporation
certification focuses on:
a) maximizing shareholder wealth
b) limiting worker compensation
c) ethics, sustainability and social responsibility
d) all of the above
e) none of the above

41. Which of the following best practices are consistent with the Optimal Ethics Systems Model:
a) hiring ethical people
b) codes of ethics and codes of conduct
c) environmental management
d) all of the above
e) none of the above

42. It is important to consider the historical perspective to appreciate the evolution of the current economic and
regulatory systems. T

43. Capitalism was chosen as the economic system for the newly formed United States because it was the
easiest way to become competitive with Britain. F
44. Christopher Columbus’s voyage from Europe was motivated by a desire to discover resources in other
areas of the world. T
45. Many indigenous populations were harmed by early European exploration. T

46. Early charters hindered groups of people from creating organizations by pooling financial resources, which
enabled riskier business projects to be undertaken. F

47. Early settlements by English colonists were often marked by warfare with indigenous peoples. T

48. The Pilgrim settlement at modern-day Plymouth, Massachusetts, was a business venture established as a
trading colony. T

49. All groups at Plymouth were required to observe the Pilgrims’ strict religious lifestyle. F

50. Peaceful relations between indigenous tribes and the Pilgrims ended when the indigenous tribes violated
fur trading pacts and land agreements. F

51. On July 4, 1776, colonial leaders declared political independence from Britain, an act of treason punishable
by death. T

52. The Bill of Rights was the original introduction to the Declaration of Independence. F

53. The Bill of Rights outlined rights including freedom of speech, freedom of the press, and freedom from
unreasonable search and seizure. T

54. Victory in the Revolutionary War meant abandoning England’s government-controlled mercantilist system
in favor of commercial laws that encouraged and protected liberty in the business sector. T

55. Adam Smith asserted that laborers must be tightly controlled to preserve economic growth. F

56. Mercantilist policies discouraged monopolies, avoided quotas on imports, and promoted freedom for
tradesmen. F

57. Adam Smith’s notions of selfishness and self-interest are identical. F

58. Capitalism was touted by Adam Smith and his followers as ethically superior to government-controlled
mercantilism due to its emphasis on individual freedom and competition. T

59. Adam Smith’s writings did not address the moral elements of capitalism. F

60. Adam Smith and early proponents of capitalism believed a strong system of justice is essential to punish
those who do not appropriately self-regulate their behaviors, and to reinforce contracts. T

61. Adam Smith promoted self-interest as the primary motivation for individual behavior. T

62. Adam Smith argued that free people naturally disregard the interests of others. F

63. Smith argued that laborers benefit from capitalism because economic growth generates jobs and more
choice among occupations. T

64. Living in an expanding economy hinders jobs and disposable income. F

65. Huge population growth through illegal immigration, primarily from Europe, characterized the Industrial
Revolution. F
67. U.S. capitalism, by definition, avoids ethical dilemmas arising from exploitation of laborers. F

68. The founders of the United States addressed the obvious contradiction between slavery and liberty in the
Constitution. F

69. The U.S. founders renounced slavery and refused to own slaves. F

70. Labor unions were originally intended to reduce power imbalances between owners and laborers. T

71. Though many union organizers have lived sacrificial lives for the well-being of others and emphasized
non-violence, some union activity has been hampered by the stigmas of violence and corruption. T

72. Income inequality is unique to capitalist societies. F

73. Discuss the key components of Adam Smith’s conception of capitalism, including his justification of the
ethics of capitalism.

74. Identify and define at least four major issues surrounding labor rights in the U.S. capitalist economy, from
the founding of the United States through recent history including the 2009 federal bailout.

75. Define and provide an overview of the Optimal Ethics Systems Model.

Chapter 3: Hiring Ethical People


1. The most important factor for developing and reinforcing a high-integrity work culture is:
a) hiring ethical job applicants
b) effective codes of conduct
c) swift justice policies
d) ensuring fair pay
e) none of the above

2. The first step in hiring ethical employees is:


a) determining their work history
b) ensuring they meet all qualifications
c) designing a job notification that attracts ethical job candidates
d) reviewing resumes
e) none of the above

3. Which of the following is not a component of the Six-Step Ethics Job Screen Process?
a) informing potential applicants about the organization’s ethics job screen
b) gather information that may include information on the applicant’s age or disability
c) obtain information on personality traits and other characteristics using assessment tools
d) interview finalists on their experiences with ethical dilemmas
e) none of the above

4. Which legislation protects job applicants from discrimination based on race, color, religion, gender or
national origin?
a) Title VII of the Civil Rights Act of 1964
b) The Equal Employment Opportunity Commission
c) The Worker Protection Act of 1959
d) all of the above
e) none of the above

5. Three major exemptions to Title VII of the Civil Rights Act include:
a) small businesses (under 15 employees) are exempted so as not to overwhelm them with regulatory
compliance burdens
b) organizations that serve religious purposes
c) preference for certain occupational qualifications that are related to the essence or central mission of the
business
d) all of the above
e) none of the above

6. _______________ job discrimination occurs when members of protected classes are excluded from the job
candidate pool.
a) back end
b) mission-related
c) front end
d) subtle
e) none of the above

7. The Equal Employment Opportunity Commission (EEOC) recommends applying a ___________ rule to
determine whether an apparently nondiscriminatory selection process may result in disparate impacts.
a) two-thirds
b) four-fifths
c) half-and-half
d) civil rights
e) none of the above
8. Over time, Title VII of the Civil Rights Act of 1964 has been supplemented with legislation prohibiting
discrimination based on which of the following characteristics?
a) age
b) pregnancy
c) disability
d) all of the above
e) none of the above

9. Experts estimate that _______________ of the 47 million Latinos living in the United States are
undocumented.
a) 90 percent
b) 75 percent
c) 50 percent
d) 25 percent
e) none of the above

10. The best predictor of future performance is/are __________________, encapsulated on tools such as
resumes.
a) behavioral test scores
b) reference checks
c) past performance
d) age
e) none of the above

11. Research indicates what percentage of all resumes contain dishonesty?


a) more than one in two
b) more than one in five
c) more than three-fourths
d) one quarter
e) none of the above

12. If an employer finds false information or inconsistencies on a resume or job application, he/she is
encouraged to:
a) notify the candidate and immediately discontinue consideration of him/her
b) notify the candidate and ask for an explanation, correct and forgive minor mistakes, and closely
monitor the new hire
c) determine that minor mistakes are understandable given the highly competitive job market, and disregard
them
d) notify legal authorities
e) none of the above

13. If, during a reference check, a former employer or supervisor will only verify dates of employment, an
employer is encouraged to ask the following question to learn more about the candidate:
a) “Would you hire this person again?”
b) “Is this candidate a qualified worker?”
c) “Did you give this candidate positive evaluations?”
d) all of the above
e) none of the above

14. Which of the following sources of information are fair and available to employers when making hiring
decisions, if job-related?
a) criminal records
b) motor vehicle reports
c) credit checks
d) all of the above
e) none of the above

15. Which of the following characteristics cannot be measured by personality tests?


a) tendencies toward conscientiousness
b) tendencies toward citizenship behavior
c) tendencies toward social dominance orientation
d) mental disabilities
e) none of the above

16. It is helpful to provide job finalists with ________________, an honest description of daily work activities
that highlights both exciting and tedious aspects of the job, to avoid “entry shock” for new employees.
a) lie detector tests
b) working interviews
c) realistic job previews
d) all of the above
e) none of the above

17. Workplace substance abuse is associated with which of the following?


a) discrimination
b) productivity and safety costs
c) civil rights violations
d) all of the above
e) none of the above

18. Credit checks are increasingly part of the job-screening process, in part because research indicates that key
indicators of employee involvement in fraud include:
a) criminal records
b) living beyond his/her means and difficulty meeting financial obligations
c) difficulty passing personality and behavioral tests
d) all of the above
e) none of the above

19. Integrity tests are useful tools, which can provide which of the following?
a) direct admission of performing an illegal or questionable activity
b) opinions regarding illegal or questionable behavior
c) personality traits related to dishonesty
d) all of the above
e) none of the above

20. Of the hundreds of possibility personality measures, ____________________ is the best predictor of ethics
and job performance.
a) obedience
b) conscientiousness
c) integrity
d) all of the above
e) none of the above

21.Conscientiousness is associated with which of the following character traits:


a) trustworthiness
b) integrity
c) ethical behavior
d) all of the above
e) none of the above
22. _____________________ refers to work-related helping behaviors that go beyond normal job
requirements, such as aiding others with job-related problems.
a) conscientiousness
b) civil rights behavior
c) organizational citizenship behavior
d) integrity
e) none of the above

23. Which of the following is not a factor of organizational citizenship behavior?


a) helping behavior
b) organizational loyalty
c) organizational compliance
d) legal behavior
e) civic virtue

24. Because ethics demands sincere, open-minded and respectful interactions with a wide variety of people,
________________ can be helpful in determining propensity toward ethical behavior in the workplace.
a) social dominance orientation surveys
b) integrity surveys
c) citizenship behavior surveys
d) all of the above
e) none of the above

25. The most frequently used instrument for diagnosing personality disorders, is called the:
a) Social Dominance Orientation survey (SDO)
b) Minnesota Multiphasic Personality Inventory (MMPI)
c) Organizational Citizenship Behavior survey (OCB)
d) polygraph or lie detector test
e) none of the above

26. Unlawful discrimination can occur in which of the following situations?


a) the front end, by excluding candidates from the hiring pool
b) the back end, by intentional or unintentional choices at the hiring stage
c) during employment, in retention and promotion processes
d) all of the above
e) none of the above

27. The “four-fifths rule” is intended to ensure:


a) avoidance of disparate impacts
b) civil rights violations
c) the percentage of ethical employees
d) all of the above
e) none of the above

28. Under which of the following scenarios might an organization implement an affirmative action plan?
a) if its gender ratio is exactly equal
b) if its racial bias is intentional
c) if its gender or racial profile does not reflect the gender or racial profile of people living in the same
region, qualified to perform the job task
d) all of the above
e) none of the above
29. Disparate impacts occur when members of a protected class rarely make it through all the job-screening
filters, suggesting that one of the decision rules could be unintentionally discriminatory. T

30. The Equal Employment Opportunity Commission (EEOC) was created in 1965 to oversee provisions of
the Civil Rights Act. T

31. Notifying potential job candidates about an organization’s ethics screen doesn’t seem to have an effect on
whether ethical people apply for the position, but can lead to better hiring decisions. F

32. Ethical problems can often be characterized as occurring on a slippery slope, whereby relatively minor
issues can be compounded into major violations. T

33. Employers must rely on instinct, not methodical tools, to determine whether a job candidate is ethical. F

34. In order to ensure an ethical candidate is being hired, in some cases employers may need to ask questions
that violate the Civil Rights Act of 1964. F

35. It is appropriate to ask job finalists about their responses to ethical dilemmas experienced at previous
workplaces, and how they would respond to dilemmas experienced by current employees. T

36. Where appropriate, a final step in the ethics job screen process may include drug and polygraph tests. T

37. People who behave unethically won’t be deterred by notifications that job screens for ethics are part of the
hiring process. F

38. Though they are an invasion of privacy, ethics screens for job candidates are worth it. F

39. Innovative companies like Ben & Jerry’s broadcast the organization’s progressive social mission
throughout its website in hopes of attracting like-minded people. T

40. An organization’s gender, racial, and ethnic employee profile should reflect the profile of people living in
the geographical region qualified to perform the job task. T

41. Some personality tests and background checks may result in disparate impacts, eliminating highly
qualified job applicants from further consideration because their non-job-related traits or previous life
experiences differ from those making the hiring decisions. T

42. Attempts to avoid litigation based on discrimination by implementing protected class quota systems, rather
than more proactive attempts to increase diversity, often set protected class quota recipients up for failure,
reinforce negative stereotyping, and damage employee morale. T

43. Employers may ask employees about being an alcoholic, because alcoholism is not characterized as a
disability. F

44. To avoid discriminating based on national origin, employers are encouraged to ask all job applicants if
they are legally authorized to work in the United States on a full time basis, rather than asking only Latino job
applicants if they are illegal immigrants. T

45. To avoid discrimination, job candidates are allowed to falsify responses to job-related questions on
application forms and submitted materials such as resumes. F

46. Minor exaggeration on resumes is a necessary step in this hyper-competitive economy. F

47. It is a violation of a job candidate’s civil rights to require reference checks. F


48. In today’s litigious environment, some former employers will only verify dates of employment, which may
be a sign of negative employee appraisal, rather than provide detailed feedback on a job candidate’s
employment history. T

49. Employment references are legally protected from a defamation lawsuit as long as the information being
conveyed is truthful. T

50. Background checks are becoming less common in the hiring process, as more information about job
candidates is available online. F

51. Integrity checks, also referred to as honesty tests, are notoriously unreliable measures of a job candidate’s
ethics. F

52. For legal reasons, tests that measure general personality traits can be combined with those that diagnose
personality disorders or mental disabilities. F

53. It is legal to ask job applicants whether they have been treated for any mental health conditions or certain
diseases. F

54. A person with mental health disabilities is more likely to behave unethically, whether or not they are
receiving proper medical treatment. F

55. Ethics questions about previous work experiences must be job-related to avoid protected class biases. T

56. In some situations, final determination of whether to extend a job offer can depend on the results of drug or
polygraph tests. T

57. Reference checks always protect the employer from hiring unethical employees. F

58. Discuss the methods employers can use to help determine the ethics of job candidates.

59. Discuss the personality factors that are most relevant for understanding a job candidate’s ethics.

60. Identify and define three examples of legislation intended to protect job candidates from discrimination.
Chapter 4: Codes of Ethics and Codes of Conduct

1. Ethical dilemmas typically arise because _______________.


a) employees are inherently dishonest
b) situations are ambiguous
c) employers are unfair
d) all of the above
e) none of the above

2. Which of the following statements is correct?


a) a Code of Ethics describes acceptable behaviors for specific situations that are likely to arise
b) a Code of Conduct briefly describes broad ethical aspirations
c) a Code of Ethics briefly describes broad ethical aspirations
d) all of the above
e) none of the above

3. An organization’s Code of Ethics and Code of Conduct can minimize ethical ambiguities because they:
a) provide the rules for morality
b) communicate the broad ethical aspirations of the organization
c) communicate clear ethical guidelines for making decisions
d) provide the consequences of unethical behavior
e) none of the above

4. A Code of Conduct is characterized by which of the following?


a) often developed by an employee with legal expertise
b) provides substance to the Code of Ethics
c) describes specific situations and behaviors
d) all of the above
e) none of the above

5. A good first step to formalize an organization’s ethics program is to:


a) develop a Code of Ethics
b) develop a mission statement
c) develop an employee handbook
d) all of the above
e) none of the above

6. The extent of an organization’s ethics program is often related to its ____________.


a) success
b) size
c) ownership
d) integrity
e) none of the above

7. Which of the following purposes will Codes of Ethics and Codes of Conduct not fulfill?
a) demonstrating managerial concern for ethics
b) ensuring integrity of management
c) convey a particular set of values and obligations
d) meet legal requirements and industry trends
e) positively impact employee behaviors

8. Codes of Ethics articulate and reinforce a _____________, rather than just one person’s opinion, and
legitimize dialogue about ethical issues when challenging situations arise.
a) religious perspective
b) personal value
c) moral consensus
d) all of the above
e) none of the above

9. Following high-profile corporate scandals including Enron and WorldCom, Congress passed a set of
legislations known as _________________, which requires the disclosure of the presence or absence of a Code
of Ethics for senior financial officers.
a) the Sarbanes-Oxley Act
b) the Corporate Code of Conduct
c) the Federal Sentencing Guidelines
d) the Human Resource Management Code
e) none of the above

10. Which of the following are not among the six values continually expressed in corporate Codes of Ethics?
a) caring
b) respect
c) fairness
d) all of the above
e) none of the above

11. A ____________ is typically defined as providing someone with a monetary incentive or object of value to
do something contrary to his/her job description.
a) bribe
b) facilitating payment
c) temptation
d) competitive advantage
e) none of the above

12. A _______________, which is legal, expedites performance of “routine governmental action,” such as
obtaining permits, processing paperwork, loading and unloading cargo, and scheduling inspections to transit
goods across borders.
a) bribe
b) facilitating payment
c) temptation
d) competitive advantage
e) none of the above

13. A collaborative effort advocating socially responsible free market capitalism developed by an international
network of business leaders is known as:
a) the Caux Principles for Responsible Business
b) the United Nations
c) the Foreign Corrupt Practices Act
d) the Sarbanes-Oxley Act
e) none of the above

14. A useful approach to developing a Code of Ethics includes:


a) copying another organization’s code
b) asking employees to construct the code
c) ensuring management develops the code
d) copying legal obligations into a code
e) none of the above
15. _______________ integrates an organization’s mission with its vision and provides clear direction on how
the organization will progress from its current situation to a highly desired future situation.
a) Ethics coding
b) Financial planning
c) Strategic planning
d) Ethics strategy
e) none of the above

16. An organization’s ___________ describes what an organization does and for whom.
a) Code of Conduct
b) Code of Ethics
c) vision statement
d) strategic plan
e) mission statement

17. An organization’s ___________ describes what an organization aspires to become in the future.
a) Code of Conduct
b) Code of Ethics
c) vision statement
d) strategic plan
e) mission statement

18. Effective strategic messages must be _____________.


a) cause-based
b) uniquely structured
c) management-driven
d) all of the above
e) none of the above

19. An organization’s cause-based mission and vision are associated with:


a) increased customer satisfaction
b) increased revenue
c) highly motivated employees
d) all of the above
e) none of the above

20. Creating a Code of Conduct involves input from which of the following groups?
a) top-level management
b) corporate lawyers
c) human resource personnel
d) all of the above
e) none of the above

21. Which of the following can influence Codes of Conduct?


a) shifting legal obligations
b) changing moral expectations
c) new technologies
d) all of the above
e) none of the above

22. A business __________ is a present, gift, hospitality or favor for which fair market value is not paid by the
recipient.
a) bribe
b) gratuity
c) temptation
d) provision
e) none of the above

23. Generally, a bribe is distinguished from a business gratuity by whether:


a) the object of value unduly influences buying decisions
b) it is given by a salesperson or a supplier
c) it is given early or late in the relationship
d) all of the above
e) none of the above

24. Approximately ___________ of all organizations monitor email use by employees.


a) three-fourths
b) one-half
c) one-fourth
d) one hundred percent
e) none of the above

25. ______________ is/are defined as the gap between an organization’s formal ethical proclamations and its
actual behavior.
a) Enron’s case
b) Strategic ethics
c) Ethical standards
d) Ethical hypocrisy
e) none of the above

26. _________________ can be a major obstacle to code effectiveness, which suggests communication and
integration of the codes is key.
a) social pressure
b) management adoption
c) written policies
d) all of the above
e) none of the above

27. Codes can be used as effective __________________.


a) organizational assessment tools
b) strategic plans
c) mission statements
d) vision statements
e) none of the above

28. The terms “Code of Ethics” and “Code of Conduct” can be used interchangeably in the workplace. F

29. A Code of Conduct is sometimes referred to as a Values Statement. F

30. In small organizations, a formal ethics code is unnecessary because employees witness the role modeling
of the owner and interact with one another regularly. F

31. If the Code of Ethics and Code of Conduct are visible in the organization, it is not necessary to discuss
them with new employees. F

32. Though most corporations use them, in reality, codes are ineffective in signaling that employees will be
held personally accountable for their ethical choices, and in providing an additional safeguard against
pressures from managers, peers or external constituents to behave unethically. F
33. Employees are obligated to follow internal codes of conduct, as well as external “codes” or legislation. T

34. To ensure codes are consistent with legal standards, they should include high levels of professional jargon.
F

35. Codes of Ethics tend to be more useful when they emphasize things employees should not do, rather than
how they should act. F

36. The Foreign Corrupt Practices Act (FCPA) makes no distinction between “bribes” and “facilitating
payments”. F

37. It is prudent to apply the philosophy of “When in Rome, do as the Romans” to avoid imposing U.S. moral
values on other nations. F

38. Tools such as the “Code of Ethics Toolkit” are readily available for large and small organizations to guide
development of their own codes. T

39. An organization’s Codes of Conduct should be the same across all business units, work functions and
stakeholders. F

40. Codes of Conduct should not be modified as new issues arise. F

41. It is always ethical for professors and their students to be “friends” on Facebook, as long as the student is
currently enrolled in the teacher’s class. F

42. Employees can rely on a reasonable expectation of privacy in regard to keeping their workplace email
confidential. F

43. Because managers are responsible for protecting organizational assets, resources and investments, their
right to monitor email communications on company-owned computers and networks supersedes employee
privacy rights. T

44. As long as they are well written, Codes of Ethics and Conduct are effective regardless of how they are
communicated to employees. F

45. Ethical hazards and risks increase as organizations grow in complexity. T

46. The number of companies that incorporate Codes of Ethics has decreased with the advent of more
government regulation. F

47. Employees are typically unaware of the moral behavior of their employer. F

48. Typically employees should consider one set of ethical standards outside the workplace and another at
work. F

49. In cases of wrongdoing, judges can reduce fines if an organization has implemented a Code of Ethics. T

In cases of wrongdoing, judges can reduce fines if an organization has implemented a Code of Conduct. T

50. In practice, Codes of Ethics seem to have little effect on employee behaviors. F

51. Respect is not a commonly identified value contained in corporate Codes of Ethics. F
52. Legal understanding of bribery is consistent across the international community. F

53. Regardless of an organization’s size, all employees should be directly involved in writing a corporate Code
of Ethics. F

54. An effective Code of Ethics will align with industry standards. T

55. Connecting an organization’s codes to its strategic plan is not necessary if the codes are effectively
communicated to employees. F

56. The terms “mission statement” and “vision statement” should be used interchangeably in the workplace. F

57. “We will treat everyone fairly” is an effective statement to be included in a Code of Conduct. F

58. Confidentiality is an issue that is outside of the area of concern for a Code of Conduct. F

59. Discuss the steps of creating a Code of Ethics that an organization can utilize as a team-building exercise.

60. What purposes do Codes of Ethics and Codes of Conduct fulfill in an organization?

61. Discuss the relationship between Codes of Ethics and organizational assessment.

Chapter 5: Ethical Decision Making


1. Ethical behavior models provide which of the following:
a) rationalizations for questionable decision making
b) frameworks for decision making based on rational principles
c) fail-safe solutions to moral dilemmas
d) all of the above
e) none of the above

2. Ethical dilemmas typically involve trade-offs based on _______________.


a) right versus wrong
b) competing values and interests
c) moral versus immoral choices
d) correct versus incorrect decisions
e) none of the above

3. James Rest’s four-component model is a useful tool for exploring __________________.


a) stages of moral development,
b) ethical decision making
c) moral versus immoral actions
d) all of the above
e) none of the above

4. The four-component model indicates that individuals are likely to behave morally if which of the following
conditions are present?
a) awareness of an ethical dilemma and formation of a moral judgment
b) development of motivation to address the moral dilemma
c) the individual is a person of high moral character
d) all of the above
e) none of the above

5. Which step is missing in the sequence of moral behavior?


Ethical belief, _________________, ethical action
a) ethical intent
b) ethical understanding
c) ethical behavior
d) all of the above
e) none of the above

6. Individual characteristics that are associated with ethical beliefs, sensitivities, intentions and behaviors
include which of the following?
a) more education
b) more work experience
c) religion
d) all of the above
e) none of the above

7. A ____________ is a mental state that guides behaviors.


a) opinion
b) belief
c) moral
d) sensitivity
e) none of the above

8. Ethical _________________ refers to an individual’s awareness that a particular situation raises ethical
concerns.
a) opinion
b) belief
c) moral
d) sensitivity
e) none of the above

9. A quick insight independent of any reasoning process of right and wrong is known as:
a) ethical sensitivity
b) ethical judgment
c) ethical intuition
d) all of the above
e) none of the above

10. “Gut reactions” that characterize how many ethical decisions are made typically derive from:
a) moral reasoning
b) personal value systems
c) ethical sensitivity
d) all of the above
e) none of the above

11. Individuals whose beliefs are consistent with a conservative political persuasion tend to focus on which of
the following value sets?
a) ingroup/loyalty
b) authority/respect
c) purity/sanctity
d) all of the above
e) none of the above

12. Individuals whose beliefs are consistent with a liberal political persuasion tend to focus on which of the
following value sets?
a) ingroup/loyalty
b) fairness/reciprocity
c) authority/respect
d) all of the above
e) none of the above

13. According to Ajzen’s theory of __________________, formulating an intention to act ethically is a


function of a person’s attitudes toward the behavior, subjective norms, and perceived behavioral control.
a) moral development
b) ethical sensitivity
c) planned behavior
d) moral reasoning
e) none of the above

14. ________, which is likely to determine the magnitude of a person’s moral approval or disapproval, is
dependent on issue-related factors, rather than individual or organizational factors.
a) moral sensitivity
b) moral intention
c) moral intensity
d) all of the above
e) none of the above

15. According to theorist Tom Jones, an issue’s moral intensity is likely to vary based on which of the
following factors?
a) magnitude of consequences
b) social consensus
c) probability of effect
d) all of the above
e) none of the above

16. ________________ refers to the degree of social agreement that an act is good or bad.
a) Social norms
b) Social consensus
c) Social pressure
d) Social dilemmas
e) none of the above

17. ______________ refers to the length of time between an act and the onset of consequences associated with
the act.
a) Probability of effect
b) Magnitude of consequences
c) Temporal immediacy
d) Proximity
e) none of the above

18. Harmful acts concentrated in a particular area and characterized by ______________, or nearness of an act
to its victims and beneficiaries, have high moral intensity.
a) temporal immediacy
b) concentration of effect
c) proximity
d) all of the above
e) none of the above

19. Among the organizational characteristics associated with ethical behaviors are which of the following?
a) codes of ethics
b) ethical climate/culture
c) organization size
d) all of the above
e) none of the above

20. Ethical ______________ is determining mentally to take some action that is believed to be morally
appropriate.
a) behavior
b) intention
c) sensitivity
d) action
e) none of the above

21. Obstacles that divert someone from not act acting on ethical intention include which of the following:
a) second doubts
b) weakness of will
c) lack of moral courage
d) old habits
e) all of the above

22. Rotary International’s Four-Way Test provides a simple framework for decision-making that asks us to
consider of the things we think, say, or do; the Four-Way Test includes which of the following questions:
a) is it the Truth?
b) is it ethically sensitive?
c) is it morally appropriate?
d) all of the above
e) none of the above

23. The process of ethical reasoning can be compared with which of the following?
a) any other managerial problem-solving process
b) only those managerial processes that involve ethical dilemmas
c) helpful lists of questions such as the Rotary’s Four-Way Test and Raytheon’s ACTION model
d) all of the above
e) none of the above

24. Systematic rational ethical decision-making frameworks can help management:


a) reveal the ethical dimensions of any decision being made
b) justify unethical behaviors in the face of conflicting pressures
c) explain why moral decisions are all relative
d) all of the above
e) none of the above

25. The approach that is consistent with the belief that right actions are beneficial to the greatest number of
people is called ____________.
a) deontology
b) utilitarianism
c) virtue
d) social group relativism
e) none of the above

26. Deontology asserts that actions must treat _______________ with respect and dignity in all situations, and
that good actions are those that everyone should do.
a) the immediate stakeholders
b) an individual’s self-interest
c) all stakeholders
d) the greatest number
e) none of the above

27. The notion that right actions strengthen moral character is consistent with ____________ ethics.
a) virtue
b) deontological
c) utilitarian
d) social group
e) none of the above

28. The ethical approach that equates moral actions with those that promote an individual’s self-interest is
known as _____________.
a) utilitarianism
b) egoism
c) cultural relativism
d) virtue ethics
e) none of the above

29. Adam Smith emphasized that individuals are, by nature, ______________.


a) egoists
b) deontologists
c) capitalists
d) virtuous
e) none of the above

30. A novelist whose writings are consistent with the egoist perspective, ____________, argues that the best
thing for the common good is to become an individual of high integrity willing to pursue self-interest at all
costs.
a) Adam Smith
b) Ayn Rand
c) Thomas Jefferson
d) Aristotle
e) none of the above

31. Social group and cultural relativism ask the individual to consider _______________ when making
decisions.
a) norms and standards
b) universal principles
c) self-interest
d) all of the above
e) none of the above

32. A concern with the deontological approach to ethical decision-making involves acknowledging:
a) universal principles are relative
b) it may prove impossible, impractical or undesirable in practice
c) managers must make decisions motivated only by virtue
d) all of the above
e) none of the above

33. While utilitarianism is “ends-based” and deontology is “rules-based,” _____________, considered to be a


higher stage of moral reasoning, is based on achieving excellence in morals by practicing morally valued
character traits.
a) relativism
b) egoism
c) virtue
d) fundamentalism
e) none of the above

34. ___________ represent(s) either or lack of virtue or an excess of virtue.


a) egoism
b) vices
c) deontology
d) self-interest
e) none of the above

35. When consideration of the various ethical approaches results in conflicting conclusions, the decision maker
should:
a) select one of the options randomly because all carry equal ethical certitude
b) respect everyone and do what a virtuous person would do
c) do nothing, because consensus has not been achieved
d) all of the above
e) none of the above

36. It is important for managers to utilize a strategic decision-making framework in order to:
a) ensure all employees agree with the manager’s decisions
b) ensure all employees are persuaded to change their minds
c) ensure all employees understand the manager’s ethical reasoning
d) ensure disagreements are handled without encouraging discussion
e) none of the above

37. The philosopher Emmanuel Kant presents the __________________ , which is a rule that applies to all
situations.
a) relativist ethic
b) virtue ethic
c) Golden Rule
d) categorical imperative
e) none of the above

38. The terms “ethical” and “moral” are commonly interchangeable. T

39. People most often agree on what ethical action “should” be done, but fewer people actually “would” do the
right thing, and even fewer actually “did” what they think they should or would do. T

40. In a given dilemma, the gap between ethical belief and ethical intent can be caused by not wanting to
create negative relationships with the other person involved in the dilemma, among other reasons. T

41. Ethical beliefs are followed by ethical intentions, which are always followed by ethical behaviors. F

42. One’s philosophical/value orientation, whether deontological or a more “relativist” orientation, does not
seem to impact his/her ability to make ethical decisions. F

43. People with less work experience tend to be better ethical decision makers, because they have less to lose.
F

44. Recognizing how much effort an employee exerts at work, and the dynamic that not working hard can
affect other workers, is an example of an ethical sensitivity. T

45. Individuals all typically possess the same level of ethical sensitivity; the difference is in ethical behaviors.
F

46. Becoming aware of how others interpret or experience our decisions and behaviors expands a person’s
ethical sensitivities. T

47. Dilemmas often arise because people usually have a very short time to respond to an ethical issue. T

48. Liberals and conservatives tend to differ in their prioritization and framing of ethical dilemmas. T

49. The term temporal immediacy refers to the dynamic that acts that immediately cause harm have lower
moral intensity. F

50. Harmful acts with severe consequences have high moral intensity. T

51. Acts with a high likelihood of causing harm have high moral intensity. T

52. Even if an intention to act ethically is solidified, an individual still may not follow through on the ethical
intention and behave ethically. T
53. A simple ethical decision-making framework that helps individuals to analyze the basis of their actions
compels the individual to ask: “How would my mother (or other individual you respect) feel if what I’m
planning to do appeared on the front page of a newspaper?” T

54. Though they provide helpful lists of questions to ask when facing an ethical dilemma, the Rotary’s Four-
Way Test and Raytheon’s Ethics Quick Test and ACTION model are not philosophically systematic. T

55. When two ethical theories such as the “Golden Rule” and individual self-interest are in conflict, self-
interest takes precedence. F

56. In the systematic rational ethical decision framework, legal actions represent the highest ethical dimension
of ethical behavior. F

57. Ethical theories such as egoism and deontology should be used interchangeably to motivate ethical
decision-making. F

58. Researchers have found strong consensus among core values, or virtues, that are common worldwide,
despite cultural differences. T

59. A useful approach managers should take when engaging employees who apply different ethical theories is
to listen carefully to the people who disagree, categorize the responses in terms of the six ethical theories, and
then reframe the analysis. T

Essay
60. Discuss the individual characteristics that impact ethical beliefs, sensitivities, intentions and behaviors.

61. Identify and define at least four major ethical theories presented in the chapter.

62. Discuss the relationship between Kohlberg’s stages of moral development and the six ethical theories
presented in the chapter by defining each stage and its associated ethical theories.

63. Reasonable individuals can disagree about what is an appropriate ethical action. Discuss the process by
which a manager can facilitate a negotiation between competing ethical perspectives.

64. Identify the ten “ethical hazard approaching” signs. How can they be managed?
Chapter 6: Ethics Training

1. A necessary characteristic of effective organizations is ____________ within the culture.


a) hierarchy
b) trust
c) whistleblowing
d) all of the above
e) none of the above

2. _______________________ refers to having a positive attitude that another member of the organization will
be fair and not take advantage of one’s vulnerability or dependency in a risky situation.
a) whistleblowing
b) organizational communication
c) ethics
d) organizational trust
e) none of the above

3. A high degree of trust in an organization is associated with which of the following:


a) economic benefits through enhanced performance
b) eliminating psychological barriers separating employers and employees
c) attracting and sustaining high-quality stakeholders
d) all of the above
e) none of the above

4. If well done, ethics training holds ______________ accountable for their ethical behaviors and provides an
opportunity for misunderstandings to be addressed.
a) employees only
b) employees and employers
c) customers
d) low-level workers
e) mid-level managers

5. Ethics training should be introduced to employees during which of the following stages of employment?
a) orientation
b) six-month review
c) one-year anniversary
d) as soon as an ethical dilemma occurs
e) none of the above

6. Which of the following is the most effective method of including web-based training in ethics training
programs?
a) as the sole source of information on ethical decision-making
b) as a complement to facilitator-guided face-to-face interactions and group activities
c) as the tool for training long-term employees, instead of group activities and facilitator-guided interactions
d) all of the above
e) none of the above

7. An effective way of presenting ethics training to employees is to frame it as a method of ___________.


a) continuous improvement in the organization
b) determining whether unethical behavior has occurred
c) ensuring appropriate consequences for unethical behavior
d) all of the above
e) none of the above
8. Ethics training known as _______________ can be useful in assessing the extent to which ethics permeates
organizational operations, including how well the organization is living up to its codes.
a) code of conduct analysis
b) ethical culture assessment
c) moral development analysis
d) work as a calling
e) none of the above

9. Because employees may be cynical about the extent to which wrongdoers actually face prescribed
consequences for their behavior, a useful tool in ethics training includes which of the following?
a) a list of prescribed behaviors and associated consequences
b) a strict Code of Conduct that outlines punishments for unethical behaviors
c) information on previous unethical behavior at the organization, and the associated consequences that
occurred
d) all of the above
e) none of the above

10. Useful “case studies” or scenario vignettes that can provide the basis for analysis through ethics training
can be derived from which of the following resources?
a) business ethics literature
b) internet websites
c) previous dilemmas at the organization
d) all of the above
e) none of the above

11. __________ refers to taking someone’s property without their permission.


a) Theft
b) Fraud
c) Embezzlement
d) all of the above
e) none of the above

12. ___________ is the use of one’s occupation for personal enrichment through the deliberate misuse or
misapplication of the employing organization’s resources or assets.
a) Theft
b) Fraud
c) Embezzlement
d) all of the above
e) none of the above

13. _____________ is a particular type of theft and fraud whereby an employee steals money from his/her
employer.
a) Theft
b) Fraud
c) Embezzlement
d) all of the above
e) none of the above

14. Fraud typically occurs in which types of organizations?


a) small businesses
b) large corporations
c) nonprofits and churches
d) all of the above
e) none of the above

15. Accounting fraud by public companies is particularly troubling for what reason(s)?
a) investors rely on auditors to convey truthful information
b) accountants must obey their client’s directives
c) accountants aren’t subject to regulations
d) all of the above
e) none of the above

16. Every job can be framed in terms of a “calling” or _________, which provides meaning to the work
experience.
a) chore
b) profession
c) vocation
d) situation
e) none of the above

17. ________________ is a systematic collection, review and use of information to determine workshop
effectiveness.
a) Training
b) Assessment
c) Metric
d) Vocation
e) none of the above

18. Participants in ethics training can be tested at the end of a workshop to ensure:
a) knowledge and techniques have been successful conveyed
b) they will behave ethically in the future
c) they will avoid ethical dilemmas in the future
d) all of the above
e) none of the above

19. Ethics training is typically most useful in which of the following types of organizations?
a) publicly traded companies
b) city governments and public organizations
c) nonprofits and other NGOs
d) all of the above
e) none of the above

20. Ethical organizations, which have high levels of trust, consistently _______________.
a) attract and sustain high-quality employees
b) face lower levels of organizational risk
c) experience higher levels of communication with stakeholders
d) all of the above
e) none of the above

21. Which of the following is not an important step to include in an ethics training session?
a) expressed support from the CEO or supervisor
b) presentation of competitive advantages for maintaining an ethical work culture
c) presentation of a current ethical dilemma the company is facing and allowing participants to
determine the solution
d) all of the above
e) none of the above
22. Research indicates that the _____________ of ethics training is associated with positive impacts on
employee attitudes and behaviors.
a) length
b) frequency
c) mandatory nature
d) all of the above
e) none of the above

23. Applying the ________________ can be a useful component of ethics training and allow participants to
explore specific steps of decision-making.
a) four-component model
b) systematic rational ethical decision-making framework
c) code of conduct
d) code of ethics
e) none of the above

24. Discussions of work as a calling can assist employees:


a) frame their daily tasks as something that has positive impacts on the lives of others
b) remind them of their original purpose for choosing a particular job or career path
c) participate in a meaningful workshop during ethics training
d) all of the above
e) none of the above

25. Personality measures can be helpful tools at which stage of the employment process?
a) hiring
b) orientation
c) ethics training
d) all of the above
e) none of the above

26. Which of the following is not among the three most common forms of embezzlement:
a) taking money from a store where one shops regularly
b) employees writing fraudulent checks that they or their friends cash
c) taking money from cash revenues
d) processing fraudulent invoices
e) none of the above

27. Which of the following is not among the issues an ethical culture assessment can explore?
a) performance based on the Code of Ethics
b) the behavior of managers
c) the organizational culture according to the employees
d) all of the above
e) none of the above

28. Ethics training is not required if organizations clearly post Codes of Conduct and Codes of Ethics
throughout the building. F

29. When organizations face tight budgets, ethics training should be eliminated to focus on more immediate
concerns, and then resumed when the organization is healthier. F

30. It is most important to provide ethical training to lower-level employees, because most ethical challenges
occur at that level of the organization. F
31. Upper-level managers establish the overall ethics tone that is then filtered throughout an organization; as
such, training can help these leaders achieve consensus on how to address difficult behaviors. T

32. Web-based training can be a simple and effective method for making employees aware of the most
common ethical issues at work. T

33. A strength of facilitator-guided face-to-face ethics training is that it allows for discussion and motivating
employees to get out of their “comfort zone”. T

34. It is always best to utilize an ethics workshop facilitator who is not a member of the organization, but
rather an expert from outside. F

35. Consistent with best practices in ethics training, at least one mandatory ethics training should be offered
annually. T

36. To ensure organizational harmony and team-building, divergent thinking and creative problem solving
should be discouraged during ethics training, in favor of a single approach to decision-making. F

37. A useful method of ethics training may include presenting actual cases of employees or people in the
industry violating a Code of Conduct and the punishments they received. T

38. If Codes of Conduct and Ethics are displayed prominently throughout the workplace, further analysis will
not be helpful in determining the extent to which employees embrace them. F

39. A useful method of ethics training can include formulation of “games” modeled after quiz shows designed
to raise awareness of ethical issues at work. T

40. Because types of ethical dilemmas vary according to who is involved, the circumstances and context, it is
not particularly helpful to explore common ethical problems experienced in the organization or its industry. F

41. Requiring a written response to ethical dilemmas is not helpful because it forces the employees to put their
opinions in writing. F

42. It is typically inappropriate to include ethics and personality measures in ethics training, because these are
personal issues. F

43. Because individuals are more likely to discuss work-related ethical issues with family and friends than
with coworkers or executives, realistically, ethics training is unlikely to be effective. T

44. Members of some professions are required to take ethics training as part of obtaining or renewing their
professional licenses to protect the public from incompetent practitioners. T

45. It is inappropriate to characterize work as a “calling” or vocation because it implies religious affiliation. F

46. It is possible to assess the “ethical culture” of an organization through use of survey instruments. T

47. Lengthy ethical cases or vignettes are more effective in soliciting meaningful feedback from employees
during ethics training. F

48. The terms fraud, theft and embezzlement can be used interchangeably. F

49. Ethics training, if well done, holds both managers and non-management employees accountable for their
ethical behaviors, and provides an opportunity for misunderstandings to be addressed. T
50. It is important to present ethics training materials in a way that targets specific employees for their
behavior to provide an example for others in the organization. F

51. It is inappropriate to examine ethical issues presented in the business ethics literature or internet websites
for the purposes of training; doing so does not allow employees to explore their own organization. F

52. A useful step in ethics training involving exploring ethical scenarios is to encourage discussion of minority
viewpoints. T

53. In order to preserve anonymity, change references to specific people and places when discussing real-life
ethical dilemmas during ethics training. T

54. Approximately 60 percent of employees have stolen from their employers. T

55. Fraud cannot occur in nonprofit or governmental organizations because there are no shareholder resources
to steal. F

56. Employee workshops on fraud detection are not effective in discouraging those who are considering
committing a fraud, nor can they realistically help detect frauds as soon as they occur. F

57. Outline the steps required for an effective ethics-training workshop.

58. Discuss the steps involved in facilitating an ethics dialogue workshop through application of the systematic
rational ethical decision-making framework.

59. Discuss the eleven personality measures/surveys associated with ethics that can be useful tools for ethics
training.

60. How would you assess the success of an ethics-training workshop?


Chapter 7: Respecting Employee Diversity

1. Diversity can be conceptualized in terms of four unique dimensions, including: permanent, evolving,
___________ and organizational.
a) racial
b) personality
c) religious
d) all of the above
e) none of the above

2. The EEOC primarily focuses on which of the following dimensions of diversity?


a) permanent
b) evolving
c) organizational
d) personality
e) none of the above

3. The ______________ dimension of diversity refers to physical attributes or inclinations people are born
with that do not naturally change over time.
a) permanent
b) evolving
c) personality
d) organizational
e) none of the above

4. The ______________ dimension of diversity includes characteristics that change, over time, including age,
height, weight, religion, education, physical ability, marital status, income level, and geographic location.
a) permanent
b) evolving
c) personality
d) organizational
e) none of the above

5. The _____________ dimension of diversity indicates that people are often categorized differently based on
their disposition.
a) permanent
b) evolving
c) personality
d) organizational
e) none of the above

6. Employees can be categorized according to their status within the place of employment, including
hierarchical status, work content, department, and seniority.
a) permanent
b) evolving
c) personality
d) organizational
e) none of the above

7. Which of the following characteristics is considered a permanent dimension of diversity?


a) race
b) ethnicity
c) gender
d) sexual orientation
e) all of the above

8. Which of the following characteristics is considered an evolving dimension of diversity?


a) race
b) ethnicity
c) gender
d) education
e) all of the above

9. Which of the following characteristics is not considered a permanent dimension of diversity?


a) race
b) age
c) gender
d) sexual orientation
e) all of the above

10. A general consensus on the “Big Five Personality Model” recognizes which of the following different
aspects of personality?
a) extraversion
b) agreeableness
c) conscientiousness
d) all of the above
e) none of the above

11. A popular personality assessment tool used by employers is called the:


a) Personality Profile (PP)
b) Myers-Briggs Type Indicator (MBTI)
c) Rational Ethical Decision Framework (REDF)
d) all of the above
e) none of the above

12. Which of the following is not a dimension of the Myers-Briggs Type Indicator?
a) where you get your energy
b) what your racial background includes
c) how you learn
d) how you make decisions
e) how you organize your time

13. The federal organization charged with monitoring illegal workplace discrimination is called the:
a) Equal Employment Opportunity Commission (EEOC)
b) Title VII Civil Rights Act
c) Department of Labor
d) Fair Labor Standards Act
e) none of the above

14. Issues of ethnic and religious diversity arose at which of the following periods in American history?
a) the Industrial Revolution, with the influx of immigrants
b) the Civil Rights Era, post-slavery
c) its inception, when Columbus arrived amid indigenous people
d) the California “Gold Rush”
e) none of the above
15. The ethical theory that recognizes preferences about right and wrong are based on the interests of a
person’s social group is called:
a) social group relativism
b) social norms
c) social networking
d) social identity
e) none of the above

16. Which of the following groups was not subject to prejudice upon arriving to the United States?
a) Africans
b) Irish
c) Asian
d) religious minorities
e) none of the above

17. The doctrine of ___________________ allowed employers and employees to end an employment
relationship for any reason, as long as it did not violate contractual agreements or federal, state and municipal
laws.
a) right to work
b) fair wages
c) employment-at-will
d) fair labor standards
e) none of the above

18. Anti-immigration sentiments are often correlated with which of the following factors?
a) the number of laborers exceeding job availability
b) insurmountable differences between ethnic groups
c) wage increases
d) all of the above
e) none of the above

19. Which legislation, passed in 1921, placed limits on the number of immigrants admitted into the United
States?
a) Equal Employment Opportunity Commission
b) Title VII Civil Rights Act
c) Emergency Quota Act
d) Fair Labor Standards Act
e) none of the above

20. Illegal or undocumented workers account for approximately what percentage of the U.S. labor force?
a) 40%
b) 25%
c) 10%
d) 5%
e) none of the above

21. In 2010, a controversial law requiring police who stop immigrants for a traffic violation or some other
crime to ask for a driver’s license or other proof of legal status was passed in which state?
a) Arizona
b) Michigan
c) California
d) Texas
e) none of the above
22. According to _____________, individuals define themselves in relation to others based on a “self-identity”
or “social identity” factor and form binding relationships with people who categorize themselves similarly.
a) social justice theory
b) self-categorization theory
c) immigration theory
d) all of the above
e) none of the above

23. In 2009 there were more than __________ discrimination cases filed with the EEOC.
a) 1,000,000
b) 100,000
c) 10,000
d) 1,000
e) none of the above

24. Which two prominent ethical principles must guide decision making when making distinctions among
people at the workplace?
a) fairness and respect for others
b) the law and personal values
c) patience and consistency
d) all of the above
e) none of the above

25. _____________ refer(s) to making decisions according to rules not based on personal biases.
a) Fairness
b) Respect for others
c) Values
d) all of the above
e) none of the above

26. ______________ refer(s) to treating everyone with dignity.


a) Fairness
b) Respect for others
c) Values
d) all of the above
e) none of the above

27. When hiring, it is ethical and legal to discriminate based on all but which of the following characteristics?
a) previous job experience
b) potential productivity
c) national origin
d) educational level
e) none of the above

28. Some state and municipal laws include ___________ as a protected class, though federal law does not
include this provision.
a) race
b) ethnicity
c) age
d) sexual orientation
e) none of the above
29. The __________ of 1964 prohibits pay discrimination based solely on gender considerations.
a) Civil Rights Act
b) Gender Disparity Act
c) Equal Pay Act
d) Fair Wages Act
e) none of the above

30. On average, females earn approximately _________ of male salaries.


a) 99 percent
b) 89 percent
c) 79 percent
d) 69 percent
e) none of the above

31. Which of the following explanations cannot be offered to account for wage differences between men and
women?
a) career pattern choices
b) seniority factor
c) job demand choices
d) ability differences
e) none of the above

32. The Family Medical Leave Act (FMLA) extends to all but which of the following types of employers?
a) private sector firms that employ less than 50 workers
b) all state employers
c) all local employers
d) all federal employers
e) none of the above

33. The term “glass ceiling” refers to which of the following situations?
a) advancement of workers beyond a certain level of seniority is stopped due to unsatisfactory performance
b) advancement of a qualified woman or minority group member is prematurely stopped at a lower level
due to gender, racial or ethnic discrimination
c) advancement of workers is only allowed for those who are unable to see the invisible barriers to promotion
d) all of the above
e) none of the above

34. The term _______________ refers to discriminating against a dominant or majority group member in favor
of a historically disadvantaged or minority group member.
a) gender parity
b) reverse discrimination / affirmative action
c) reverse genders
d) glass ceiling
e) none of the above

35. The Age Discrimination in Employment Act (ADEA) of 1967 includes provisions for all but which of the
following situations?
a) a bona fide occupational qualification such as not rehiring an aging actor for a young role, or matters
of safety
b) job assignments for older workers
c) promotions for older workers
d) employees that are outside of the protected range of ages 40 to 65
e) none of the above
36. The factors that help determine the reasonableness of an accommodation for a worker with a disability
includes all but which of the following?
a) the nature and cost of the accommodation
b) the overall size and financial resources of the facility or business
c) whether the disability involves a wheelchair
d) all of the above
e) none of the above

39. Workplace _____________ is defined as “unwelcome conduct that is based on race, color, religion, sex
(including pregnancy), national origin, age, disability or generic information” from a supervisor,
coworker, or nonemployee, such as a customer or supplier.
a) assault
b) harassment
c) discrimination
d) accommodation
e) none of the above

OR

Workplace _____________ can be defined as “unwelcome conduct that is based on race, color, religion, sex
(including pregnancy), national origin, age, disability or generic information” from a supervisor,
coworker, or nonemployee, such as a customer or supplier
Ans.: harassment

40. Harassment becomes unlawful when the conduct is severe or pervasive enough to create a work
environment that a reasonable person would consider ___________.
a) normal
b) hostile
c) tiresome
d) unfriendly
e) none of the above

41. Sexual harassment includes which of the following unwelcomed behaviors:


a) sexual comments
b) sexual jokes
c) sexual pictures
d) all of the above
e) none of the above

42. The ___________ group refers to the diverse characteristic that is held in common by a large number of
employees, while the ___________ group refers to the diversity characteristic held by a small minority of
organizational members.
a) dominant, subordinate
b) correct, incorrect
c) ethical, unethical
d) diverse, minority
e) none of the above

43. Diversity training is susceptible to which of the following problems, which can be addressed through
careful design of the training?
a) over-emphasizing the negative characteristics of the dominant group
b) over-emphasizing employee differences to the exclusion of common ground
c) a trainer who lacks credibility with either the dominant or subordinate group
d) all of the above
e) none of the above

44. Tools that may assist with diversity training include all but which of the following?
a) the “Who Are You?” exercise
b) activities around dominant and subordinate group awareness
c) the Implicit Attitude Test (IAT)
d) confrontations between the dominant and subordinate group
e) none of the above

45. Appropriately managing diversity in the workplace leads to competitive advantages. T

46. Diversity can contribute to improving organizational performance or be the source of detrimental
prejudices and stereotypes. T

47. Characteristics such as age and race are considered dimensions of diversity, but factors that are within our
control, such as personality, are not. F

48. Dimensions of diversity that evolve, including weight, marital status and physical ability, are not important
to consider as they are irrelevant to discussions of diversity in the workplace. F

49. Individuals in the workplace are generally treated the same, regardless of age. F

50. Prejudgments about others are usually a reaction to some factor of diversity. T

51. Though factors including race and gender may lead to stereotyping and prejudging of others,
organizational factors including status and seniority are not related to diversity. F

52. Legislation including Title VII of the Civil Rights Act has made workplace discrimination obsolete. F

53. In the workplace, individuals tend to communicate, collaborate and associate with those who share some
similar feature or characteristic important to the person. T

54. People tend to form group coalitions first based on gender and then on race and ethnicity. F

55. Both men and women are subject to stereotypes about their physical and personality characteristics in the
workplace. T

56. The criterion for determining whether work being performed is considered equal is whether the same job
title is assigned to both men and women. F

57. In 1978, Congress passed the Pregnancy Discrimination Act (PDA) to protect the civil rights of pregnant
women. T

58. The Family Medical Leave Act (FMLA) of 1993 extends protections to employees needing time off to
address health-related problems of their own, or of immediate family members. T

59. Legislation requires that employers provide appropriate job accommodations for pregnant women,
regardless of undue hardship to the employer. F

60. If customers or other employees express a strong preference for a certain type of ethnicity in the
workplace, it is legal to discriminate in job assignments and promotions. F
61. Employers are expected to provide flexible scheduling for religious holidays and respect religious clothing
and grooming policies. T

62. The federal government passed the Employment Non-Discrimination Act (ENDA) to protect LGBT people
from job discrimination based on sexual orientation. F

63. By definition, males cannot be victims of sexual harassment in the workplace. F

64. If effective policies are put in place in the workplace, diversity training becomes unnecessary. F

65. Provide an overview of the competitive advantages of diversity management in the workplace.

66. Discuss the factors associated with best operational practices for managing diversity.

67. Discuss the steps required to successfully implement a diversity initiative.

68. Explain the most common types of workplace discrimination, including at least four examples.

69. Identify and define the four dimensions of diversity.


Chapter 8: Ethics Reporting Systems

1. External whistleblowing is the result of the failure of ______________ within an organization.


a) ethical values
b) internal communication systems
c) privacy
d) employee loyalty
e) none of the above

2. An employee who observes ethical misconduct at work but does not discuss the matter with the person
engaged in the misconduct or with someone else in the organization with authority is engaging in
_____________.
a) whistleblowing
b) internal communications
c) employee silence
d) loyalty
e) none of the above

3. According to recent research by the Ethics Resource Center, which percentage of respondents who observed
ethical misconduct did not report it?
a) 77%
b) 57%
c) 37%
d) 17%
e) none of the above

4. Employee silence about observed ethical conduct can be attributed to all but which of the following?
a) organizational factors such as work culture
b) observer factors such as lack of evidence
c) anticipated negative outcomes such as being viewed negatively
d) organizational factors such as the lack of an established reporting system
e) none of the above

5. Which of the following organizational factors are associated with employee silence?
a) work culture discourages dissent
b) loyalty to the organizational members is not aligned with ethics
c) no established reporting system exists
d) all of the above
e) none of the above
6. Which of the following observer factors are not associated with employee silence?
a) low moral intensity
b) lack of evidence
c) lack of empowerment
d) all of the above
e) none of the above (provjeriti)

7. Which of the following is not an anticipated negative outcome associated with employee silence?
a) being labeled or viewed negatively
b) damaging a relationship
c) retaliation or punishment
d) no corrective action will be taken
e) no established reporting system

8. Based on factors of __________________, observers are likely to remain silent about ethical misconduct if
the misconduct causes minimal consequences to the recipient or the organization, occurs in a physically distant
part of the organization, or if there is a lack of consensus in the organization that the misconduct is actually
unethical.
a) moral sensitivity
b) moral intensity
c) moral norms
d) moral diversity
e) none of the above

9. Even when the appropriate reporting systems are in place and when individual factors such as seniority and
possession of clear evidence are available, some workers still fail to speak out against unethical misconduct
due to a lack of _____________.
a) moral courage
b) reward
c) moral incentive
d) all of the above
e) none of the above

10. The best ethics reporting system is:


a) an anonymous tip line
b) weekly ethics training
c) an ethically approachable manager
d) an ombudsperson
e) none of the above

11. An approachable manager displays which of the following characteristics?


a) authoritarian leadership
b) honesty and transparency
c) discourages dissent
d) all of the above
e) none of the above

12. In general, ethically approachable managers embody _____________ behaviors.


a) dissenting
b) virtuous
c) inconsistent
d) all of the above
e) none of the above
13. The position in an organization charged with broad oversight of ethical performance is the:
a) ombudsperson
b) ethics & compliance officer
c) manager
d) CEO
e) none of the above

14. Which of the following duties is not consistent with those of the ethics and compliance officer?
a) managing internal reporting systems
b) offering guidance
c) developing and interpreting ethics policies
d) assigning all ethical issues equal standing
e) none of the above

15. Which of the following attributes should characterize an ethics and compliance officer?
a) insider status and well-networked
b) high position that exemplifies authority
c) operational experience
d) all of the above
e) none of the above

16. The ethics and compliance officer’s primary duty is to:


a) manage the organization’s internal reporting system
b) report wrongdoing to the management team
c) supervise whistleblowing within the organization
d) all of the above
e) none of the above

17. The position serving as a deterrent against managerial abuse of power and other unethical activities, a
concept which originated in government, is known as a(n) ____________.
a) ethics and compliance officer
b) whistleblower
c) ombudsperson
d) manager
e) none of the above

18. Which of the following principles is not consistent with the legal obligations of an organization’s
ombudsperson?
a) independence
b) neutrality and impartiality
c) prosecution of wrongdoing
d) confidentiality
e) informality

19. Members of a religious clergy trained in providing spiritual advice, sometimes contracted by businesses in
consulting functions, are known as ___________.
a) priests
b) ombudspersons
c) ethics officers
d) chaplains
e) none of the above
20. ________________, previously referred to as “ethics hotlines,” have long been popular with organizations
as a method of obtaining information about situations that may be unethical or illegal.
a) Assist lines
b) Asset lines
c) Answering services
d) all of the above
e) none of the above

21. Contacting someone outside the organization about potential or actual nontrivial misconduct inside the
organization is referred to as __________________.
a) reporting
b) whistleblowing
c) prosecuting
d) protecting
e) none of the above

22. Legislation that includes protections for whistleblowers includes all but which of the following?
a) the False Claims Act
b) the Sarbanes-Oxley Act
c) the Dodd-Frank Act
d) the Civil Rights Act
e) none of the above

23. The _______________ of 2002 was enacted directly following high-profile accounting scandals involving
Enron, WorldCom, Tyco and other companies that cost investors billions during the early 2000s.
a) Dodd-Frank Act
b) Sarbanes-Oxley Act
c) Civil Rights Act
d) False Claims Act
e) none of the above

24. Which of the following is not a provision of the Sarbanes-Oxley Act (SOX)?
a) protection for whistleblowers
b) creation of the Public Company Accounting Oversight Board
c) establishment of an anonymous reporting mechanism for employees to report fraud
d) auditors cannot engage in consulting work for companies they are auditing without approval from the
client’s audit committee
e) none of the above

25. Research indicates which of the following outcomes may be associated with blowing the whistle?
a) negative performance evaluations
b) demotions
c) physical, psychological and family problems
d) all of the above
e) none of the above

26. Provisions by which citizens can sue fraudulent suppliers on behalf of the government, and receive a
percentage of the financial recovery, are called __________ provisions.
a) quid-pro-quo
b) qui tam
c) tit-for-tat
d) all of the above
e) none of the above
27. The False Claims Act compels the whistleblower to consider all but which of the following?
a) he/she must have actual knowledge of the fraud
b) the fraud must be tax fraud; tax fraud is the only type of fraud the act addresses
c) federal money must be involved
d) the financial amount of the fraud must be sizable, and the entity to be sued must be able to pay back the
stolen money and associated fine
e) the evidence of the fraud cannot come from a publicly disclosed source such as a newspaper

28. Legislation developed in response to the 2008-2010 financial crisis, which includes rewards for
information about securities violations successfully enforced by the Securities and Exchange Commission, is
called the ______________.
a) Dodd-Frank Act
b) Sarbanes-Oxley Act
c) Civil Rights Act
d) False Claims Act
e) none of the above

29. Prior to the passage of Sarbanes-Oxley, the number of whistleblower reports averaged 6,400 per month;
following Sarbanes-Oxley, the monthly average changed to ____________ per month.
a) 4,000,000
b) 400,000
c) 40,000
d) 4,000
e) 400

30. Which of the following were not among reported ethical misconducts undertaken to benefit the individual,
according to a 2009 Ethics Resource Center survey?
a) improper hiring practices
b) discrimination
c) internet abuse
d) bribes
e) sexual harassment

31. Observers of ethical misconduct will often remain silent when they perceive reporting as a violation of
___________ to employees, managers, and the organization.
a) loyalty
b) whistleblowing
c) professionalism
d) silence
e) none of the above

32. The ethics and compliance officer in an organization must differentiate between which of the following
types of ethical issues?
a) discrimination and harassment
b) material and immaterial issues
c) right and wrong
d) all of the above
e) none of the above

33. Ethical misconduct at the workplace can be undertaken for the purposes of enhancing the company’s
financial performance agenda or for personal benefits for those engaging in the misconduct. T

34. People are often uncomfortable conveying negative information to organizational leaders who welcome
ethical discussions. F
35. Authoritarian leaders rule according to the saying “my way or the highway,” tend to expect absolute
loyalty, and consider taking suggestions from subordinates as a leadership weakness. T

36. Employee silence is less likely when the chain of command is the only mechanism for reporting and when
the person behaving unethically can readily identify the information source. F

37. Fear of retaliation for reporting unethical conduct from colleagues and supervisors is a realistic concern. T

38. Employees are more likely to discuss an ethical concern with a manager if these types of discussions occur
on a regular basis. T

39. An “open door” policy between supervisors and employees means the door remains open during every
conversation, to ensure an open and transparent process of discussion. F

40. Ethics-related information can come from suppliers and customers, in addition to employees. T

41. Assist lines or “ethics hotlines” can help address issues of confidentiality and false accusations in reporting
wrongdoing. T

42. Legislation including Sarbanes-Oxley Act of 2002 ensures that whistleblowers will face no negative
consequences after blowing the whistle. F

43. The False Claims Act initially passed in 1863 and strengthened in 1986 is designed to protect employers
from whistleblowers making false accusations. F

44. It is not important whether or not the ethics and compliance officer is perceived as someone with authority
in the organization. F

45. In order to be effective, the ethics and compliance officer must be someone in a dedicated position, not
someone who serves that function in addition to another role such as legal counsel. F

46. Even smaller organizations with less than 50 employees can benefit from a clearly articulated internal
reporting system for ethical issues. T

47. In order to successfully prosecute wrongdoing in the workplace, the employee who raised the concern must
identify him/herself during the investigation process.

48. The roles of the organization’s ethics and compliance officer and ombudsperson are interchangeable. F

49. It is impossible to discourage false accusations with an effective assist line. F

50. A method for preserving employee anonymity in the internal reporting system is to use an identification
number for the case and filter communications through a resource such as EthicsPoint or other telephone
services. T

51. Whistleblowers are always perceived as disgruntled employees seeking revenge against a boss or
employer. F

52. Legal advisors recommend that it is irrelevant whether or not the whistleblower has convincing,
documented evidence before moving forward with informing an external authority. F

53. Several resources including nonprofit advocacy and lobbying organizations exist to provide support to
potential or actual whistleblowers. T
54. Though increasingly viewed as a public service in the interest of society, whistleblowing does not merit
legal protections through the law. F

55. With enhancements to the internal reporting process and development of an approachable management
style, organizations can reduce the need for employee whistleblowing. T

56. Discuss the steps associated with best practices in the internal reporting process.

57. Discuss the typical duties and skills of an ethics and compliance officer.

58. Discuss the attributes of an effective ethics and compliance officer.

59. Provide at least five examples of reasons why some employees do not report ethical misconduct.

60. Describe the process a manager can undertake to engage employees in discussion of ethical misconduct.

Chapter 9: Managers as Ethical Leaders and Role Models

1. Which of the following aspects of daily organizational life significantly impact(s) an employee’s ethical
performance?
a) the behaviors of organizational leaders
b) work goals
c) employee performance appraisals
d) all of the above
e) none of the above

2. Managers can and should serve as _______________ within the organization.


a) ethical role models
b) authoritarian leaders
c) ombudspersons
d) all of the above
e) none of the above

3. Research consistently indicates that the attribute employees most want to see in their managers is:
a) freedom
b) honesty
c) passion
d) hard work
e) none of the above

4. The type of ethical role model a manager chooses to be will reflect his/her level of:
a) skill
b) leadership
c) moral development
d) authority
e) none of the above

5. According to Torbert’s management role model typology, which of the following management types is most
strongly motivated by reward and punishment?
a) opportunist
b) diplomat
c) achiever
d) strategist
e) none of the above

6. _____________ refers to the ability to act, create an effect, or wield force.


a) Leadership
b) Power
c) Strength
d) Morality
e) none of the above

7. Social psychologists French and Raven have differentiated among five types of power bases individuals can
have based on which aspect?
a) status in the organization
b) level of seniority
c) relationship to others in the organization
d) all of the above
e) none of the above

8. Power that is formally assigned to an individual, such as through a title or position, is called __________
power.
a) legitimate
b) reward
c) coercive
d) referent
e) expert

9. Power that is obtained in a way characterized by the following response is called __________ power: “I’m
going to do what that person says because I want to get a bonus and get promoted!”
a) legitimate
b) reward
c) coercive
d) referent
e) expert

10. Power obtained by enforcing punishments is called _____________ power.


a) legitimate
b) reward
c) coercive
d) referent
e) expert

11. Power obtained because people want to be like you is called _____________ power.
a) legitimate
b) reward
c) coercive
d) referent
e) expert

12. Power obtained by being a source of knowledge or skills is called _____________ power.
a) legitimate
b) reward
c) coercive
d) referent
e) expert

13. A(n) ______________ leadership style refers to demanding blind submission to someone in authority.
a) authoritarian
b) horizontal
c) referent
d) all of the above
e) none of the above

14. Proponents of “Theory X” of management subscribe to the belief that employees are inherently:
a) lazy
b) creative
c) self-directed
d) respected
e) none of the above

15. Proponents of “Theory Y” of management subscribe to the belief that employees are inherently:
a) lazy
b) bored
c) self-directed
d) tired
e) none of the above

16. Research indicates which of the following types of management systems is associated with higher levels of
employee productivity, loyalty, and motivation, all of which contributed to higher profits?
a) Theory X
b) participative
c) authoritarian
d) hierarchical
e) none of the above

17. The leadership style known as delegating is typically most useful when an employee possesses which of
the following characteristics?
a) high competence and high commitment
b) moderate to high competence and variable commitment
c) low or some competence and low commitment
d) low competence and high commitment
e) none of the above

18. According to research on ethical leadership, which of the following characteristics is/are associated with a
manager’s reputation for being an ethical leader?
a) being a moral person and moral manager
b) being a good person and a kind person
c) being an authoritarian but fair manager
d) all of the above
e) none of the above

19. The term _____________ refers to “the demonstration of normatively appropriate conduct through
personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-
way communication, reinforcement, and decision-making.”
a) moral person
b) moral manager
c) ethical leadership
d) horizontal leadership
e) none of the above

20. Ethical leadership has been shown to be associated with which of the following?
a) employee disengagement
b) employee commitment
c) employee misconduct
d) employee expenses
e) none of the above

21. Which of the following personality traits has/have been shown to be strongly associated with ethical
leadership?
a) patience and kindness
b) agreeableness and conscientiousness
c) morals and norms
d) all of the above
e) none of the above

22. A useful measure for assessing virtue ethics in ethical leaders focuses on the _____________ emphasized
by Aristotle.
a) ten commandments
b) Golden Rule
c) cardinal virtues
d) all of the above
e) none of the above

23. The approach focusing on achieving organizational results by humbly caring for and serving the needs of
superiors, colleagues and subordinates is known as ____________ leadership.
a) situational
b) servant
c) ethical
d) all of the above
e) none of the above

24.Which of the following characteristics is not associated with those representing a servant leader?
a) altruistic calling
b) emotional healing
c) wisdom
d) organizational stewardship
e) none of the above

25. The five dimensions associated with being a “Great Place to Work” as defined by the research institute
responsible for Fortune magazine’s annual listing include: credibility, respect, fairness, pride, and
___________.
a) hierarchy
b) reporting
c) camaraderie
d) fun
e) none of the above

26. Organizations that meet the “Great Place to Work” standards witness which of the following benefits?
a) more qualified job applicants
b) lower level of turnover and health care costs
c) higher levels of customer satisfaction
d) all of the above
e) none of the above

27. Two important levers for ensuring high-quality and ethical performance are:
a) work goals and employee performance appraisals
b) salary caps and incentive compensation
c) incentive compensation and bonuses
d) Codes of Conduct and Codes of Ethics
e) none of the above

28. A tool known as the ____________ can provide ethical leaders with more holistic goals and measurements
for evaluating organizational performance.
a) employee performance appraisal
b) balanced scorecard
c) 360 degree evaluation
d) “Great Place to Work” certification
e) none of the above

29. The ______________ approach advocates a holistic goal approach that takes into account an
organizational’s environmental, social and financial performance.
a) 360 degree evaluation
b) performance appraisal
c) triple bottom line
d) all of the above
e) none of the above

30. A(n) ____________ goal can be vulnerable to encouraging employee temptation toward dishonesty and to
behave unethically if that is the only way they can achieve the goal by the specified deadline.
a) incremental
b) stretch
c) foundation
d) reach
e) none of the above

31. SMART goals are specific, measurable, aligned, reachable and _______________.
a) troublesome
b) tight
c) time-bound
d) tiring
e) tried

32. __________________ is a goal-setting technique in which managers and their subordinates jointly
determine work unit and individual goals in alignment with organizational goals.
a) SMART goals
b) Management-by-objectives
c) Motivation
d) Stretch goals
e) none of the above

33. Managing employee and organizational ________________ is associated with better health, increased
productivity and ethical employee behaviors, among other benefits.
a) stress
b) compensation
c) goals
d) all of the above
e) none of the above

34. A useful tool for reducing workplace stress is _______________.


a) meditation
b) wellness programs
c) delegation training
d) all of the above
e) none of the above

35. An employee _____________ evaluates factors that are directly or indirectly related to achieving
organizational and employee goals.
a) stretch goal
b) wellness program
c) compensation structure
d) performance appraisal
e) none of the above

36. Tools that can assist with enhancing ethical behavior in the workplace can include all but which of the
following?
a) performance appraisals
b) surveying actual behaviors
c) surveying performance according to the organization’s codes
d) exploring ideal employee attitudes and behaviors
e) none of the above

37. A more holistic and authentic picture of an employee’s performance can be determined based on a(n)
_____________, which includes evaluating information from multiple perspectives.
a) ethical performance evaluation
b) 360 degree performance evaluation
c) SMART performance evaluation
d) ideal employee performance evaluation
e) none of the above

38. Violations are harm-generating behaviors that require forgiveness, which can be applied through a four-
phase model for managers including 1) uncovering phase, 2) decision phase, 3) ____________, 4) outcome
phase.
a) termination phase
b) violation phase
c) forgiveness phase
d) work phase
e) none of the above

39. Subordinates are more likely to be influenced by written and oral directions provided directly from their
supervisor, rather than by witnessing a manager’s decisions and behaviors. F

40. According to Torbert’s management typologies, professionals such as senior executives tend to be
achievers and strategists. T

41. There does not seem to be a measurable correlation between personal integrity and successful leadership in
management. F
42. It is possible for managers to operate from all five of the types of power bases when leading an
organization. T

43. “Theory X” and “Theory Y” of management ultimately lead to similar approaches to managing people. F

44. Situational leadership styles can be categorized in one of four ways, according to an employee’s level of
competence and commitment or confidence. T

45. From an ethics perspective, situational leadership sensitizes managers to focus on employee needs and
providing the style of leadership those needs dictate. T

46. A manager’s private life is irrelevant to the way employees and other key stakeholders perceive the
manager’s ethics, as long as no significant problems reach the news media. F

47. Because perceptions of a manager’s ethical leadership are subjective, assessment tools that can be used to
evaluate a specific manager are unfair. F

48. Some supervisors may resist top management efforts to inculcate ethical behaviors due to fear that ethical
behavior is a hindrance to short-term goal achievement. T

49. The extension of respect to employees through “common decencies” including calling employees by name
and remembering their names, while polite, is irrelevant to specific measures of job performance and
productivity. F

50. Being ethical, without being perceived by others as being ethical, is problematic; as such, creating
employee feedback systems is essential. T

51. Ill-conceived organizational goals, such as unreasonable profit expectations, can generate unethical
behaviors. T

52. An incremental goal is one that appears to be just a little out of the employee’s reach, and challenges
employees to perform at peak efficiency and effectiveness. F

53. Employees are more likely to pay attention to organizational and individual issues if they are included in a
performance appraisal. T

54. Including an ethics component in an employee performance appraisal can be distracting from individual
and organizational goals and should be discussed elsewhere. F

55. Poorly managed performance appraisals can be detrimental to employee development, morale, and
productivity. T

56. Ranking systems for employee performance appraisal are useful for creating healthy competition among
employees. F

57. Employees are much more receptive to negative feedback than to positive feedback, which people tend to
disregard or block out. F

58. Ethical leadership means never disciplining or firing anyone. F

59. Ethics suggests that poor performers can be given an opportunity to improve within a certain timeline prior
to dismissal, or that care and concern be extended when downsizing occurs by providing outplacement
services. T
60. It is important to constructively address minor workplace infractions because they often escalate into
bigger problems. T

61. Outline the continuum of potential punishments for managing minor workplace infractions.

62. Identify and explain three different leadership styles, including their major features.

63. Identify and define the five sources of power available to managers.

64. Identify and define Torbert’s six management role models, which are associated with the different stages of
moral development.

Chapter 10: Engaging and Empowering Ethical Employees

1. Employee ____________ is an emotional bond or attachment an employee has to the work task,
organization and its members.
a) morality
b) motivation
c) engagement
d) empowerment
e) none of the above

2. Among the most important features employees want in a job are all but which of the following?
a) job security
b) benefits
c) compensation
d) opportunities to use skills
e) none of the above

3. Developmental psychologist Abraham Maslow differentiated five categories of _______ that every
individual has.
a) management styles
b) morals
c) virtues
d) needs
e) hierarchies

4. Individuals typically prioritize __________ over social needs, according to Maslow’s hierarchy.
a) self-actualization
b) physiological
c) self-esteem
d) all of the above
e) none of the above

5. Individuals typically prioritize __________ over self-actualization needs, according to Maslow’s hierarchy.
a) physiological
b) self-esteem
c) safety
d) all of the above
e) none of the above

6. The work of which theorist complements Maslow’s hierarchy of needs, emphasizing the importance of
employees experiencing a need for affiliation and achievement, and adds the element of a need for power or
authority?
a) Jeffrey Skilling
b) David McClelland
c) Abraham Maslow
d) Frederick Herzberg
e) none of the above

8. Frederick Herzberg’s work exploring employee motivation suggests that job satisfaction can be described in
which of the following ways?
a) linear, in that the presence of some factors results in satisfaction and their lack results in dissatisfaction
b) factors contributing to satisfaction are separate and distinct from those contributing to dissatisfaction
c) motivation factors and hygiene factors contribute equally to good working environments
d) all of the above
e) none of the above

9. Job satisfaction factors, called _____________, are related to what people do at work.
a) motivation factors
b) hygiene factors
c) Maslow’s factors
d) Herzberg’s factors
e) none of the above

10. Job dissatisfaction factors, called _____________, are related to a bad working environment.
a) motivation factors
b) hygiene factors
c) Maslow’s factors
d) Herzberg’s factors
e) none of the above

11. Which of the following is not among the factors impacting job satisfaction?
a) achievement
b) recognition
c) base wage or salary
d) growth
e) none of the above

12. Which of the following is not among the factors impacting job dissatisfaction?
a) quality of supervision
b) relationship with boss
c) the work itself
d) relationship with peers
e) none of the above

13. Many managers falsely continue to assume that the best way to motivate employees is through
_____________ and the threat of disciplinary action.
a) job enrichment
b) recognition
c) achievement
d) financial rewards
e) none of the above

14. High levels of employee performance and satisfaction, according to Daniel Pink, result from employees
driven to meet basic needs including ___________ (self-direction), mastery (continually learning and creating
new things), and purpose (work is a personal cause or mission).
a) autonomy
b) hierarchy
c) authority
d) responsibility
e) none of the above

15. The most essential moral value, ____________, is positively associated with employee engagement and
occurs when employees perceive fairness in decisions associated with organizational policies, procedures and
outcomes.
a) honesty
b) justice
c) patience
d) compassion
e) none of the above

16. Scholars distinguish among four forms of organizational justice: procedural, informational, interactional
and ___________ justice.
a) fair
b) engaged
c) distributive
d) autonomous
e) none of the above

17. ___________ justice is associated with fair decision-making processes.


a) procedural
b) informational
c) interactional
d) distributive
e) none of the above

18. ___________ justice is associated with fair treatment of employees.


a) procedural
b) informational
c) interactional
d) distributive
e) none of the above

19. ___________ justice is associated with the way information is conveyed.


a) procedural
b) informational
c) interactional
d) distributive
e) none of the above

20. ___________ justice is associated with the way outcomes are allocated.
a) procedural
b) informational
c) interactional
d) distributive
e) none of the above

21. Which of the following behaviors is/are associated with employee perceptions of organizational injustice?
a) deviant and retaliatory behaviors from employees
b) de-motivation
c) disengagement
d) all of the above
e) none of the above

22.Workplace _________ is defined as repeated verbal abuse or abusive conduct that is threatening,
humiliating and intimidating and interferes with work.
a) bullying
b) sexual harassment
c) injustice
d) badgering
e) none of the above

23. ____________ work is typically defined as spending time at work to achieve something that is personally
desirable.
a) Autonomous
b) Meaningful
c) Just
d) all of the above
e) none of the above

24. According to Lips-Wiersma and Morris, the four sources of meaningful work include serving others, unity
with others, _____________, and expressing one’s full potential.
a) developing and becoming self
b) working independently
c) working diligently
d) all of the above
e) none of the above

25. Representing over 25 years of study, the Gallup Organization’s data suggests that the single most important
factor that talented employees want most from the workplace was:
a) high salary
b) family balance
c) an excellent manager
d) nice colleagues
e) none of the above

26. Employee _________ refers to an emotional connection to the job task, work unit, or organization.
a) empowerment
b) engagement
c) virtue
d) flow
e) none of the above

27. Employee _________ refers to giving employees decision-making authority, which can be further
solidified with an ownership stake in the organization.
a) empowerment
b) engagement
c) virtue
d) flow
e) none of the above

28. The type of worker known as a “go-getter” is characterized by which of the following traits?
a) task-oriented
b) a job is a job
c) meet performance expectations
d) managers are ignorant
e) none of the above

29. The type of worker known as a “fence-sitter” is characterized by which of the following traits?
a) can-do attitude
b) meets performance expectations
c) work is a nuisance
d) managers are ignorant
e) none of the above

30. The type of worker known as an “adversarial” is characterized by which of the following traits?
a) task oriented
b) enjoy working
c) a job is a job
d) meet performance expectations
e) none of the above

31. Which of the following is/are not among the strategies for managing “go-getter” employees?
a) empowerment
b) assigning independent work or work with other go-getters
c) close supervision
d) all of the above
e) none of the above

32. The best way to manage adversarial employees includes ____________ supervision.
a) hands-off
b) close
c) inconsistent
d) harsh
e) none of the above

33. Empowerment techniques include all but which of the following, along with providing employees the
authority to make decisions?
a) delegating specific tasks
b) providing access to relevant information
c) consistently close supervision
d) allocating appropriate resources and funds
e) none of the above

34. Every work unit is a team or small ____________, which has implications for the way its members work
together.
a) community
b) department
c) division
d) function
e) none of the above

35. Which of the following is/are not among the characteristics of members of effective teams?
a) trust one another
b) engage in constructive conflict
c) always agree
d) personally commit to goal accomplishment
4) are accountable for their behaviors

36. The factor that serves as the foundation for effective team performance is:
a) trust
b) fair pay
c) hierarchy
d) diversity
e) none of the above

37. The __________ technique is a useful tool for preventing team conflicts from escalating, and involves a
10-step planned reconciliation process.
a) constructive conflict
b) pinch theory
c) solution theory
d) conflict resolution
e) none of the above

38. The team ___________ process described in the chapter helps access each member’s unique knowledge
and helps generate solutions with the highest likelihood of achieving superior performance.
a) pinch theory
b) constructive conflict
c) problem-solving
d) strategic planning
e) none of the above

39. Open book management is a technique whereby managers share __________________:


a) pay levels for all employees to ensure transparency
b) conflict resolution to ensure effective teamwork
c) financial and operational information to allow employees to make better informed decisions
d) their office space to ensure they are approachable
e) none of the above

40. The technique known as _________ is a particularly powerful team-based management method for
aligning different types of employees and uncovering employee and organizational strengths.
a) open book management
b) appreciative inquiry
c) strategic planning
d) problem-solving
e) none of the above

41. Plans involving ____________, like the Scanlon-type plans, delegate institutional responsibility and
accountability for improving operations to employee teams.
a) gainsharing
b) conflict resolution
c) team-building
d) salary caps
e) none of the above
42. Profit sharing has been shown to be associated with all but which of the following?
a) employee cooperation
b) turnover
c) productivity
d) wage disparity
e) profits

43. Employee _________ give employees the right to purchase a specific number of company shares at a fixed
price by a particular future date, typically ten years.
a) profit sharings
b) stock options
c) pensions
d) all of the above
e) none of the above

44. Producer, consumer, and employee _________ are an alternative communal way to govern a business and
raise capital, and involve pooling capital and resources for mutual benefit.
a) profit sharings
b) ESOPs
c) cooperatives
d) pensions
e) none of the above

45. Research indicates that top-down, one-way communication and decision-making processes discourage
employees from being passive and reactive, rather than proactive. F

46. Engaged employees are less likely to report ethical misconduct, because they have a strong sense of loyalty
to their coworkers. F

47. The relationship between job satisfaction is quite simple – happy employees always work hard in order to
maintain their position. F

48. Employers must first meet low-level, basic needs before they can address higher-level needs associated
with employee engagement. T

49. Generally, employees with a high need for achievement are motivated by challenging work. T

50. Generally, employees with a high need for power are motivated by collegial work environments. F

51. Higher wages always lead to a more satisfied workplace. F

52. Better wages motivate employees to work harder and smarter over an extended period of time. F

53. Correcting low wages is ethical and helps to eliminate job dissatisfaction. T

54. Employees are more willing to help coworkers who have heavy workloads or are struggling with work-
related problems when they themselves have been treated unfairly and without integrity. F

55. The phenomenon Mihaly Csikszentmihalyi refers to as “flow” describes the idea that work can engage
one’s entire self – mind, body, emotion and spirit. T

56. In the name of fairness, systems designed to control performance should be imposed in the same way
throughout the organization. F
57. Empowering all types of employees, “go-getters,” “fence-sitters,” and “adversarials,” is helpful to ensure
employee engagement across the organization. F

58. Adversarial employees have leadership skills, which if redirected away from the wrong ends, can allow
them to become go-getters. T

59. Though employee empowerment is important, it is unwise to delegate any managerial responsibilities and
accountabilities. F

60. Harmony must be preserved for teams to function effectively, even if it is artificial. F

61. Daily performance reflections among empowered team members typically lead to redundancy and fatigue.
F

62. In successful organizations, profit sharing can replace base pay. F

63. Describe the different techniques for managing go-getters, fence sitters, and adversarials.

64. Discuss the steps and advantages involved in the team problem-solving process.

65. Describe the categories included in Maslow’s hierarchy of needs, and provide an example from the
organizational context at each level.

66. Discuss the factors research consistently finds as most important to employees when considering what they
want out of their work.
Chapter 11: Environmental Management

1. The approach known as the _______________ assesses organizational performance according to three
factors: economic, social and environmental performance.
a) green scale
b) transparency index
c) triple bottom line
d) organizational index
e) none of the above

2. Which of the following are among the competitive advantages of environmental management?
a) cost savings
b) reputational enhancement
c) attracting and retaining quality employees
d) all of the above
e) none of the above

3. Rapidly industrializing ____________ has now surpassed the United States as the world’s largest emitter of
greenhouse gases.
a) India
b) China
c) Russia
d) all of the above
e) none of the above

4. The type of energy a nation uses to fuel its economy is primarily a ____________ decision.
a) cost-benefit analysis
b) political
c) thoughtful
d) impossible
e) uncontroversial

5. The United States, with just 5 percent of the world’s population, accounts for __________ of worldwide
carbon dioxide emissions, the greatest contributor to greenhouse gas.
a) five
b) ten
c) fifteen
d) twenty
e) none of the above

5. Greenhouse gas emission is clearly associated with the level of ______________ in a given country.
a) industrialization
b) population
c) solar energy
d) all of the above
e) none of the above

6. Population growth can be considered in terms of _____________ units of analysis, or groups of 350 million
people living an American lifestyle.
a) Americum
b) climate change
c) globalized
d) Americanized
e) none of the above
7. The movement, identified with essayist Ralph Waldo Emerson and Henry David Thoreau, called
________________, emphasized the importance of individualism, and that an ideal spiritual state transcended
physical existence.
a) anthropologism
b) transcendentalism
c) environmentalism
d) pacifism
e) none of the above

8. Rachel Carson’s book ______________ is often given credit for being an early, accessible look at how
insecticides and pesticides, particularly DDT, could cause long-term harm to fish, wildlife and humans.
a) Walden
b) A Sand County Almanac
c) Silent Spring
d) Americums
e) none of the above

9. On April 22, 1970, the first ___________ was held, designed to educate students and others about the need
to preserve natural resources and unite environmental organizations around a common cause.
a) Transcendentalist Day
b) Earth Day
c) Walden Movement
d) all of the above
e) none of the above

10. Which of the following regulations, passed during the Nixon era, did not address environmental concerns?
a) Clean Air Act
b) Environmental Protection Agency
c) Clean Water Act
d) Endangered Species Act
e) none of the above

11. The federal agency charged with protecting human health and safeguarding the natural environment, which
also offers compliance assistance websites for business, is known as the _______________.
a) Environmental Protection Agency (EPA)
b) Clean Air Act (CAA)
c) Triple Bottom Line (TBL)
d) all of the above
e) none of the above

12. The 1980s, under the Reagan administration, was characterized by which of the following approaches to
environmental management?
a) “proactive” regulation emphasizing innovation
b) “cooperative” regulation emphasizing free market solutions
c) “adversarial” regulation emphasizing consequences for noncompliance
d) all of the above
e) none of the above

13. In 1987, President Reagan signed the _____________, an international agreement to phase out
chlorofluorocarbons (CFCs) that erode the ozone.
a) Clean Air Act
b) Endangered Species Act
c) Montreal Protocol
d) Kyoto Protocol
e) none of the above

14. A landmark climate change conference, held in 1997, produced the _____________, which established a
goal of reducing worldwide greenhouse gas emissions.
a) Clean Air Act
b) Endangered Species Act
c) Montreal Protocol
d) Kyoto Protocol
e) none of the above

15. Emissions trading systems known as _______________ involve federal controls that limit the amount of
pollution permitted combined with a market in which businesses can trade licenses to pollute.
a) Cap and Trade
b) Chicago Climate Exchange
c) Kyoto Protocol
d) all of the above
e) none of the above

16. In 1990, Congress passed Clean Air Act amendments to address the problem of __________, associated
with destruction caused by fossil fuels originating from coal-fired power plants.
a) acid rain
b) Cap and Trade
c) CFCs
d) carbon dioxide
e) none of the above

17. The program called the ________________, created in 2003 as a national market to manage a voluntary,
yet legally binding program for greenhouse gas emissions, closed in 2010 when participants withdrew their
support because Congress failed to pass anticipated regulation.
a) Cap and Trade
b) Chicago Climate Exchange
c) European Climate Exchange
d) Kyoto Protocol
e) none of the above

18. The ______________, which has more than 100 members, is now the leading emissions trading market in
the world.
a) Chicago Climate Exchange
b) European Climate Exchange
c) Cap and Trade
d) Kyoto Protocol
e) none of the above

19. Wisconsin’s innovative __________, created in 2006, provides numerous benefits including regulatory
flexibility, permit streamlining, and other incentives for businesses that implement an Environmental
Management System.
a) Cap and Trade
b) Mayors Agreement
c) Green Tier program
d) Climate Exchange
e) none of the above

20. The _________________________ was created in 1999 as a way to track the financial performance of
leading sustainability-driven companies.
a) Cap and Trade
b) S&P Index
c) Dow Jones Sustainability Index
d) New York Sustainable Stock Exchange
e) none of the above

21. The U.S. company long disparaged by community activists for poor environmental and social policies,
now among the leading corporations to capitalize on the link between eco-friendliness and profits, is:
a) Green Mountain Coffee
b) Seventh Generation
c) Whole Foods
d) Walmart
e) none of the above

22. Which company is now the nation’s largest seller of organic products?
a) Green Mountain Coffee
b) Seventh Generation
c) Whole Foods
d) Walmart
e) none of the above

23. A central theme of eco-friendliness, emphasizing the cyclical goals of environmentalism, is


_______________.
a) waste equals food
b) haste makes waste
c) waste equals recycling
d) all of the above
e) none of the above

24. The University of Wisconsin-Madison’s “Green Masters Program Checklist”, which focuses on actions
organizations can take to be more environmentally friendly, includes all but which of the following categories?
a) energy
b) climate change
c) water
d) waste
e) none of the above

25. Which of the following is not included in the list of “simple steps for greening your lifestyle”?
a) stopping receipt of unwanted catalogues
b) using warm water for washing clothes
c) repairing old or poorly fitting toilet flapper valves
d) using reusable bags made of cotton or nylon
e) none of the above

26. Which of the following is not included among the aspects of the environmental change process within
organizations?
a) assign a manager to be accountable for environmental initiatives
b) obtain vocal and visible support from CEO, COO and other executives
c) involve employees, suppliers, customers, competitors, shareholders and community members
d) integrate sustainability into normal business functions
e) none of the above

27. Some organizations create a(n) ______________ that clearly articulates its relationship with the natural
environment.
a) Code of Conduct
b) Code of Ethics
c) Environmental mission statement
d) LEED certification
e) none of the above

28. Products can be certified as ___________ products, which ensures that they are energy efficient.
a) LEED-certified
b) Energy Star
c) Green
d) all of the above
e) none of the above

29. Hitchcock and Willard have developed a(n) ____________ that organizations can use for comparative
evaluation purposes when deciding which product to purchase.
a) LEED checklist
b) Energy Start checklist
c) sustainable products checklist
d) Cap and Trade checklist
e) none of the above

30. The International Organization for Standardization (ISO), an NGO, has worked with industries, technical
experts and other stakeholders to develop a(n) ___________________ plan for achieving superior
environmental performance.
a) Environmental Management System (EMS)
b) LEED certification (LEED)
c) Energy Star System (ESS)
d) all of the above
e) none of the above

31. A key aspect of environmental management is managing ____________; failure to do so can significantly
disrupt organizational operations, an example of which can be seen in the case of Sony’s failure to examine its
PlayStation cables for illegal cadmium.
a) science
b) risk
c) regulations
d) innovations
d) none of the above

32. Identifying environmental risks in an organization involves exploring which of the following phases of the
value chain?
a) suppliers
b) company operations
c) customers
d) all of the above
e) none of the above

33. A useful framework, used by communities and business around the world, emphasizing environmental
analysis and action plan development is known as:
a) LEED certification
b) The Natural Step
c) Greening
d) Cap and Trade
e) none of the above

34. The European Union’s Packaging and Packaging Waste Directive of 1994 mandates that all businesses
operating within the EU are now responsible for:
a) directly recovering and recycling product packaging
b) creating no waste
c) eliminating product packaging
d) using recyclable materials
e) none of the above

35. A concept employed by Walmart, among other organizations, involving recovering or recycling packaging
materials at a rate equivalent to the amount of packaging used by products on the shelves is referred to as
_____________, often measured by a “scorecard”.
a) Cap and Trade
b) carbon neutral
c) packaging neutral
d) LEED certified
e) none of the above

36. The United States Green Building Council’s _____________________ rating system provides eco-friendly
measurement standards for certifying building construction and remodeling.
a) Cap and Trade (CAT)
b) Leadership in Energy and Environmental Design (LEED)
c) Global Reporting Initiative (GRI)
d) The Natural Step (TNS)
e) none of the above

37. LEED certification involves four levels of assessment related to categories including sustainable sites,
water efficiency, energy and atmosphere, _____________, indoor environmental quality, innovation in design,
and regional priority.
a) neutral packaging
b) recycling
c) materials and resources
d) all of the above
e) none of the above

38. An international multi-stakeholder coalition providing general guidelines for sustainability reporting that
allow for some environmental performance comparisons between organizations is known as the
______________.
a) Cap and Trade (CAT)
b) Leadership in Energy and Environmental Design (LEED)
c) Global Reporting Initiative (GRI)
d) The Natural Step (TNS)
e) none of the above

39. Some organizations reduce the carbon waste on Earth by purchasing ______________ equivalent to their
carbon footprint.
a) green philanthropy
b) Cap and Trades
c) carbon calculators
d) carbon offsets
e) none of the above

40. Companies can also contribute and enhance their commitment to environmental management by
participating in ____________ efforts such as “One Percent for the Planet,” which involves companies
donating 1 percent of annual sales revenue to environmental groups.
a) green philanthropy
b) Cap and Trades
c) carbon calculators
d) carbon offsets
e) none of the above

41. The United States consumes more oil than all other industrialized nations in the world. T

42. The U.S. consumes a greater percentage of bio-fuels including hydro, geothermal and solar energy, than all
other industrialized nations in the world. F

43. Strong scientific consensus supports that climate change is occurring, characterized by gradual warming of
the Earth’s temperature, among other changes. T

44. All organizations are in compliance with environmental laws in the United States. F

45. Strong national consensus can be found in the United States supporting Cap and Trade programs. F

46. More than 850 mayors representing 80 million citizens have signed the U.S. Conference of Mayors
Climate Protection Agreement, committing them to strive to meet or beat the Kyoto Protocol targets in their
own communities. T

47. The Obama administration’s Economic Stimulus Act of 2009 included provisions supporting companies
that are generating renewable energy sources, developing clean energy technologies, and creating jobs
retrofitting homes to conserve energy. T

48. Changes in organizational operations that truly improve environmental performance never entail expensive
start-up costs. F

49. Green business parks can be an effective tactic of reducing waste by encouraging occupants toward a cycle
of waste from one organization serving as input for another. T

50. Managers must “practice what they preach” and adopt eco-friendly behaviors in their own lifestyles if they
would like to inspire subordinates to engage in eco-friendly activities at work. T

51. Buying bottled water, if you plan to recycle, is as environmentally friendly as using reusable water bottles
made from materials such as stainless steel or aluminum. F

52. Becoming an eco-friendly organization requires leadership from the CEO or president and a values-based
organizational culture that emphasizes focusing only on compliance with regulations. F

53. Environmental management is best implemented within one dedicated department or business unit that can
devote time to becoming eco-friendly. F

54. Because they operate outside of an organization’s direct supervision, the actions of suppliers are not a
focus of environmental management. F
55. Walmart has attempted to ensure that its supplier operations meet high environmental standards by
implementing a Supplier Sustainability Index – a universal rating system for assessing sustainability records.

56. ISO 14001 certification, a competitive advantage in a marketplace in which more organizations are using a
green “screen” to choose suppliers, is a self-regulatory system and includes an Energy Management System
(EMS) as its basic component. T

57. A useful early strategy in environmental action within an organization is to identify “low-hanging fruit” to
encourage success in achieving goals, which will help employees gain confidence for implementing more
complicated solutions. T

58. Organizations can purchase Cap and Trades, which are equivalent to their carbon footprint as a way of
reducing carbon waste on earth. F

59. LEED certification ensures that a building exceeds all recommendations for seven levels of new
construction and major renovations. F

60. Green buildings can signal organizational values, improve employee health, reduce energy costs and limit
detrimental environmental impacts. T

61. Discuss the competitive advantages to an organization for becoming eco-friendly.

62. Outline the key features of an Environmental Management System.

63. Highlight at least ten of the “15 Simple Steps for Greening Your Lifestyle,” a tool for individuals to
implement in their own lifestyles.

64. Outline the ten aspects of the organizational environmental change process, beginning with the importance
of one environmental manager held accountable for initiatives.
Chapter 12: Community Outreach and Respect

1. The Nobel Prize-winning economist Milton Friedman famously articulated the viewpoint that the social
responsibility for business is to:
a) maximize profits within the law
b) engage in activities that broadly support the organization’s mission
c) aspire to be model citizens
d) pursue profit at any cost
e) none of the above

2. The tactic of some corporations legally not paying taxes is called:


a) tax evasion
b) tax avoidance
c) tax credits
d) all of the above
e) none of the above

3. The question of whether it is appropriate for corporations to avoid taxes by operating subsidiaries in nations
and territories which allow them to move their income into tax-free accounts is primarily a question of
__________ responsibility.
a) legal and allowable
b) civic and ethical
c) national and international
d) all of the above
e) none of the above

4. Which of the following ethical theories can be used to support a more proactive approach to corporate
responsibility, for example, purchasing an inexpensive new technology that could significantly reduce
pollution?
a) utilitarian
b) deontology
c) virtue
d) all of the above
e) none of the above

OR

a) utilitarian
b) Kant’s categorical imperative
c) virtue
d) all of the above
e) none of the above

5. Archie Carroll’s conceptualization of social responsibility includes all but which of the following
components?
a) economic responsibilities
b) legal responsibilities
c) ethical responsibilities
d) philanthropic responsibilities
e) none of the above
6. The relationship between corporate philanthropy and financial performance can be described as:
a) positive – the more philanthropic behavior, the better the firm’s financial performance
b) negative – the more philanthropic behavior, the worse the firm’s financial performance
c) inverse U-shaped – up to a point, philanthropy and performance increase together; at a certain point,
the relationship levels off and then declines
d) U-shaped – up to a point, philanthropy and performance decline together; at a certain point, the relationship
levels off and then increases
e) none of the above

7. The concept of ______________ refers to achieving the appropriate balance between time spent working
and one’s personal life.
a) philanthropy
b) work-life balance
c) telecommuting
d) flex time
e) none of the above

8. Aristotle’s Nicomachean Ethics concludes that ___________ “is the meaning and the purpose of life, the
whole aim and end of human existence.”
a) money
b) success
c) hard work
d) happiness
e) none of the above

9. Aristotle professes that the path to individual and community happiness requires development of all but
which of the following factors:
a) health
b) wealth
c) intellectual virtue
d) moral virtue
e) none of the above

10. On average, Americans work ____________ their European counterparts.


a) nine full weeks more than
b) nine full weeks less than
c) comparably equal to
d) considerably less than
e) none of the above

11. The extent to which a business meets its economic, legal, ethical and philanthropic responsibilities in the
community, or communities, in which it operates by creating a higher standard of living and quality of life is
called _______________.
a) legal compliance
b) corporate citizenship
c) green philanthropy
d) community relations
e) none of the above

12. The market for __________________, or funds which screen companies for financial and social
performance, is huge and growing.
a) socially responsible investment (SRI)
b) LEED certification
c) The Natural Step
d) corporate compliance (CC)
e) none of the above

13.Which of the following conditions will render an organization ineligible for conclusion on the FTSE KLD
400 Social Index?
a) significant organizational size
b) employee participation
c) significant holdings in alcohol and tobacco
d) presence of social screens
e) none of the above

14. The double standard problem of international corporate citizenship refers to which of the following
concepts?
a) one set of behaviors that meets high expectations in the U.S. and a different set that meets low
expectations in underdeveloped and developing nations
b) the relativist imperative that organizations must operate according to the norms of the given society in
which they are operating
c) the idea the corporate citizenship and legal compliance are doubly problematic for corporations around the
world
d) all of the above
e) none of the above

15. Sweatshops are often defended on _____________ grounds, indicating that they do allow thousands of
peasants to earn a local living wage.
a) deontological
b) utilitarian
c) just
d) virtue ethics
e) none of the above

16. The ______________________, developed in 1999, provides guiding principles for conducting business
anywhere in the world.
a) United Nations Global Compact
b) LEED
c) Natural Step
d) utilitarian method
e) none of the above

17. Which of the following is not among a key feature of the Global Compact?
a) human rights
b) labor
c) environment
d) mandatory participation
e) anticorruption

18. The model known as the _______________________ Model segments human activities into four major
subsystems: government, business, nonprofits and personal-communal, each with its own purpose.
a) Venn Diagram
b) Circular systems
c) Interpenetrating Systems
d) Global Compact
e) none of the above
19. Organizations are often held accountable by all but which of the following stakeholder groups:
a) activists
b) the media
c) NGOs
d) government agencies
e) none of the above

20. The Interpenetrating Systems Model area where all four subsystems overlap is typically one of
__________ interest, reflecting that changes can come from any person or group in any subsystem.
a) individual
b) organizational
c) regulatory
d) judicial
e) none of the above

21. _______________ are those who have an economic relationship with the organization.
a) Primary stakeholders
b) Secondary stakeholders
c) Tertiary stakeholders
d) all of the above
e) none of the above

22. _______________ are those who indirectly affect or are affected by the company’s activities.
a) Primary stakeholders
b) Secondary stakeholders
c) Tertiary stakeholders
d) all of the above
e) none of the above

23. Which of the following individuals or groups is/are considered primary stakeholders in an organization?
a) community members
b) nonprofits
c) the media
d) suppliers
e) none of the above

24. Which of the following individuals or groups is/are considered secondary stakeholders in an organization?
a) owners
b) employees
c) the environment
d) customers
e) none of the above

25. Mitchel, Agle and Wood developed a typology of stakeholder characteristics that categorize stakeholders
and issues based on three attributes: power, ____________, and urgency.
a) primary
b) legitimacy
c) interpenetration
d) all of the above
e) none of the above

26. ______________ refers to the ability of a stakeholder to impose its will on the business; it can be
transitory.
a) Power
b) Legitimacy
c) Urgency
d) Primary
e) none of the above

27. ____________ refers to the stakeholder’s standing in society or to the claim being made.
a) Power
b) Legitimacy
c) Urgency
d) Primary
e) none of the above

28. _______________ refers to the immediacy of the issues being raised.


a) Power
b) Legitimacy
c) Urgency
d) Primary
e) none of the above

29. Managers can pursue different strategies for stakeholder management, including ________, or waiting
until problems arise, _________, or anticipating problems and implementing plans before the problems arise,
or __________, engaging with key stakeholders and jointly determining action.
a) reactive, proactive, interactive
b) proactive, interactive, reactive
c) primary, secondary, tertiary
d) all of the above
e) none of the above

30. _________ is the donation of money or property to assist a nonprofit organization or people in need.
a) Giving
b) Philanthropy
c) Volunteerism
d) Citizenship
e) none of the above

31. _________ is the donation of time to assist a nonprofit organization or people in need.
a) Giving
b) Philanthropy
c) Volunteerism
d) Citizenship
e) none of the above

32. The idea of _____________ purports that the wealthy are obligated to exercise the virtue of generosity.
a) when in Rome, do as the Romans
b) corporate citizenship
c) noblesse oblige
d) do unto others as you’d have them do unto you
e) none of the above

33. Systematic giving at an organization addresses all but which of the areas of nonprofit needs?
a) money
b) products or services
c) skills
d) job opportunities
e) none of the above

34. Invoking the three “C’s” of engagement is helpful when corporations form long-term volunteer
partnerships, including all but which of the following:
a) compatibility
b) commitment
c) communication
d) cash donations
e) none of the above

35. A retention policy that can assist with confronting burnout among employees with high-stress jobs is leave
policies, or ___________.
a) volunteerism
b) retreats
c) sabbaticals
d) charity
e) none of the above

36. The approach known as ______________ involves using business principles to directly meet basic human
needs.
a) corporate citizenship
b) corporate philanthropy
c) social entrepreneurship
d) social work
e) none of the above

37. An approach to community giving that integrates three aspects, most likely to situate a company as a
community leader and enhance employee satisfaction, involves ______________, or giving resources to
support local nonprofits and causes that are meaningful to employees and community members, in response to
immediate needs.
a) reactive giving
b) outsource giving
c) strategic philanthropy
d) corporate citizenship
e) none of the above.

37. One approach to community giving, most likely to situate a company as a community leader and enhance
employee satisfaction, is ______________, or supporting the United Way or other highly credible intermediary
organizations that select and monitor donation recipients.
a) reactive giving
b) outsource giving
c) strategic philanthropy
d) corporate citizenship
e) none of the above.

38. One approach to community giving, most likely to situate a company as a community leader and enhance
employee satisfaction, is ______________, or setting aside some community giving resources for partnerships
aligned with the company’s mission.
a) reactive giving
b) outsource giving
c) strategic philanthropy
d) corporate citizenship
e) none of the above.
39. Porter and Kramer differentiate three social issue categories that may impact business operations, including
all but which of the following categories:
a) generic social issues
b) value chain social impacts
c) reactive giving
d) competitive context social dimensions
e) none of the above

40. A win-win strategic partnership whereby nonprofits benefit by revenue generated through the sales of the
donor’s product or service is called ______________.
a) cause-related marketing
b) corporate philanthropy
c) green marketing
d) strategic marketing
e) none of the above

41. According to Friedman’s conceptualization of corporate responsibility, sneaker manufacturers fulfill their
social responsibilities by efficiently and effectively meeting consumers’ sneaker needs without violating any
laws. T

42. Tax evasion and tax avoidance are terms that can be used interchangeably when considering corporate
conduct. F

43. Legal compliance and corporate social responsibility are terms that can be used interchangeably when
considering corporate conduct. F

44. Employees who experience enjoyable and essential work are always able to successfully avoid burnout. F

45. Organizations implementing the Optimal Ethics Systems Model will likely enhance their reputation within
a community. T

46. Organizations with corporate citizenship tend to have problems attracting younger professionals, who tend
to consider social responsibility outside the realm of work. F

47. Investors tend not to consider social responsibility when evaluating a company, provided the company has
a strong bottom line. F

48. All firms with strong financial performance are eligible for inclusion on socially responsible investment
indices, because strong performance is positively correlated with social responsibility. F

49. A solid ethical argument exists supporting the relativist approach to international corporate citizenship,
particularly around issues such as sweatshops. F

50. Sweatshops in developing nations always operate in clear violation of U.S. labor laws and of the labor laws
of their host countries. F

51. The United Nations Global Compact recognizes that working toward anticorruption standards would
violate the freedoms of developing nations. F

52. According to the Interpenetrating Systems Model, the subsystems of human activities, none of which is
monolithic, impact one another. T

53. With careful attention, managers can address all stakeholder demands. F
54. Corporate philanthropy shouldn’t be framed as part of an organization’s public relations strategy nor
should it be linked with strategy. F

55. Research indicates that philanthropy can help mitigate the negative effects when things go wrong in an
organization. T

56. Milton Friedman’s “The Gospel of Wealth” argued that wealthy individuals, particularly the self-made
rich, had a moral responsibility to invest their fortunes for the well being of society. F

57. One method of encouraging philanthropy is to arrange for employees to donate money through payroll
deductions. T

58. Employers can give back to the community quite directly by providing jobs to people in need, including
groups most in need, such as ex-convicts. T

59. Community involvement provides an opportunity for team building, leadership training, and teaching
project management, all of which directly impact a company’s daily operations. T

60. Community involvement should not be used as a mechanism for networking, as that dampens the spirit of
the philanthropic activities. F

61. Assessing key constituents to determine whether an important intended benefit of community involvement
– namely, a better reputation -- is being accomplished is a strategy that will backfire and ensure that the
company seems insincere. F

62. The Global Reporting Initiative (GRI) offers a standardized framework for community impact reporting, in
addition to environmental performance. T

63. Cite some of the specific examples of family-friendly and community-friendly policies suggested in the
chapter, primarily provided by the annual Working Mother magazine’s listing.

64. Discuss the business case for community involvement, including the four areas of primary benefit.

65. Discuss the key features organizations should include when questioning their suppliers about their labor
and health and safety practices.

66. Provide an overview of the six phases of issues-driven multi-stakeholder dialogues.

67. The process of determining a nonprofit strategic partner for corporate philanthropic activities includes
exploring which three questions?

68. Identify the steps required in the Community Involvement Management Process.

Honesty tests are useful tools which can provide which of the following?
Select one:
a. direct admission of performing an illegal or questionable activity
b. opinions regarding illegal or questionable behavior
c. personality traits related to dishonesty
d. all of the above
e. none of the above
The ethics and compliance audit officer’s primary duty is to:
Select one:

a. manage the organization’s internal reporting system


b. report wrongdoing to the management team
c. supervise whistleblowing within the organization
d. all of the above
e. none of the above

Which of the following statements is correct?

Select one:
a. a Code of Conduct describes acceptable behaviors for specific situations that are likely to
arise
b. a Code of Conduct briefly describes specific ethical rules
c. a Code of Conduct briefly describes broad ethical aspirations
d. all of the above
e. none of the above

Which of the following organizational factors is not associated with whistle-blowing?


Select one:

a. work culture discourages dissent


b. loyalty to the organizational members is not aligned with ethics
c. no established reporting system exists
d. all of the above
e. none of the above

Where appropriate, a final step in the job screening process may include drug and polygraph tests.
Select one:

True
False

If Codes of Conduct are displayed prominently throughout the workplace, further analysis will not be
helpful in determining the extent to which employees embrace them.
Select one:
True
False

_________ is the donation of time or resources to assist a nonprofit organization or people in need.
Select one:
a. Giving
b. Philanthropy
c. Volunteerism
d. Citizenship
e. none of the above

Feedback
The correct answer is: Volunteerism

Kant’s categorical imperative asserts that actions must treat _______________ with respect and
dignity in all situations, and that good actions are those that everyone should do.
Select one:
a. the immediate stakeholders
b. an individual’s self-interest

c. all stakeholders
d. the greatest number
e. none of the above

Which of the following characteristics is considered a discrimination-relevant dimension of workplace


diversity?
a. race
b. ethnicity
c. gender
d. sexual orientation
e. all of the above

Research finds that with the declining economic situation, employees only value financial types of rewards,
such as pay, which are designed to assist in maintaining employee commitment. F

Intrinsic rewards include money, promotions and benefits. F


An example of an extrinsic reward is an assigned parking space with an employee’s name clearly painted
underneath the "Reserved" sign. T

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