All of the following are useful in monitoring ethical


Part 1 - Vivian McClain

This final exam consists of 25 multiple choice questions and covers the material in Chapters 7 through 9.

1. A high concern for people but minimal concern for performance can best describe the ________ culture.
A. caring
B. apathetic
C. exacting
D. shareholder
E. employee

2. The ________ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent.
A. 10-30-40-20
B. 20-30-30-20
C. 40-10-10-40
D. 10-40-40-10
E. 80-20

3. The ability to influence the behavior of others by offering them something desirable is best described as
A. coercive power.
B. reward power.
C. expert power.
D. legitimate power.
E. referent power.

4. Ethical concerns in centralized structures can occur because of very little
A. upward communication.
B. scapegoating.
C. downward communication.
D. communication rigidity.

5. A values-based ethics approach to ethical corporate cultures relies on a(n) ________ that defines the firm as well as how customers and employees should be treated
A. set of law
B. explicit mission statement
C. strong CEO
D. ethical audit
E. relaxed corporate culture

6. Motivation is defined as
A. a person's incentive or drive to work.

B. a force within the individual that focuses his or her behavior on achieving a goal.
C. personal ambition without regard to the impact on others.
D. a desire to be finished with a project.
E. individual goals.

7. Individuals, often from the same department, who band together for purposes that may or may not be relevant to the organization are called
A. quality circles.
B. informal groups.
C. teams.
D. work groups.
E. committees.

8. A cultural audit may be used to identify
A. unethical employees.
B. unethical organizations.
C. an organization's culture.
D. organizational structure.

9. ________ may be more inclined to engage in unethical organizational conduct because of social isolation that creates insensitivity and a lower level of motivation to regulate ethical decision making.
A. Low-level employees
B. International managers
C. Top managers
D. Government officials
E. Fortune 500 companies

10. ________ are formal statements that describe what an organization expects of its employees in terms of ethical behavior.
A. Mission statements
B. Codes of conduct
C. Policies on confidentiality
D. Environmental policies
E. The Federal Sentencing Guidelines for Organizations

11. All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except
A. observation of employees.
B. internal audits.
C. firing.
D. surveys.
E. reporting systems.

12. Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct?
A. Conduct orientation
B. Values orientation
C. Coercive orientation
D. Obedience orientation
E. Compliance orientation

13. The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is usually the
A. CEO.
B. president.
C. immediate supervisor.
D. ethics officer.
E. Chairman of the board.

14. Fostering ethical decision making within an organization requires improving the firm's ethical standards and
A. not doing business with suppliers.
B. implementing a hiring freeze.
C. training the "bad apples" so they are not bad anymore.
D. terminating ethical persons.
E. terminating the "bad apples" in the organization.

15. For an ethical compliance program to properly function,
A. consistent enforcement and disciplinary action are essential.
B. employees must be monitored using any means necessary.
C. it is not necessary to set measurable program objectives.
D. the same program should be used in all countries of operation, regardless of cultural differences.
E. the company must wait until after misconduct occurs to develop a means of preventing it.

16. At the heart of the Federal Sentencing Guidelines for Organizations is a
A. "tit-for-tat" philosophy that punishes wrongdoing.
B. Golden Rule philosophy.
C. Iron Fist philosophy severely punishes wrongdoing.
D. carrot-and-stick philosophy that rewards efforts to improve ethics.
E. utilitarian philosophy of the greatest good for the greatest number.

17. Retaliation against employees that report misconduct is a problem in ________ cultures.
A. weak ethical
B. strong ethical
C. high power distance
D. diverse
E. international

18. The process of verifying the results of an audit should involve standard procedures that control the ________ of the information.
A. completeness
B. effectiveness and efficiency
C. reliability and validity
D. independence
E. veracity

19. What should be the final step in the ethics auditing process?
A. Define the scope of the audit
B. Secure the commitment of top managers and directors
C. Collect and analyze data
D. Report the findings
E. Verify the results

20. A(n) ________ is a financial accounting firm that offers social auditing services or a nonprofit special interest group with auditing experience that verifies the results of ethics auditing data analysis
A. stakeholder
B. ethics audit consultant
C. best practices expert
D. financial consultant
E. board of directors

21. Which of the following is not a phase of escalation during an ethical disaster?
A. The firm's discovery of the misconduct
B. Ethical issue recognition
C. The firm's response to the misconduct
D. The decision to act unethically
E. The firm's decision to conduct an ethics audit

22. Which of the following is not one of the top challenges facing CEOs today?
A. Keeping pace with regulation
B. Protecting against risks
C. Managing and utilizing social media
D. Gaining adequate compensation
E. Managing reputation

23. _______ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization's success.
A. Customers
B. Employees
C. Special interest groups
D. Competitors
E. Legislators

24. Under the ________, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements
A. Sherman Antitrust Act
B. Ethical Compliance Act
C. Robinson-Patman Act
D. Sarbanes-Oxley Act
E. Sherman Antitrust Act

25. The concept of ethics auditing emerged from the movement to audit and report on companies' broader ________ initiatives.
A. product development
B. legal compliance
C. risk management
D. public relations
E. social responsibility

Part -2:

Part 2 - Vivian McClain

This final exam consists of 25 multiple choice questions and covers the material in Chapters 10 through 12.

1. Risk compartmentalization occurs when
A. companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically.
B. all profit centers within a corporation are aware of the code of ethics.
C. all profit centers within an organization become aware of the consequences of competitors' actions.
D. various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.
E. ethics and compliance programs reduce the risk of misconduct.

2. ________ has been codified in a United Nations document and is defined as an inherent dignity with equal and inalienable rights as the foundation of freedom, justice, and peace in the world.
A. Cultural relativism
B. Human rights
C. Consumerism
D. Dumping
E. Health care

3. ________ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the "invisible hand."
A. Consumerism
B. Cultural relativism
C. Social democracy
D. Laissez-fair
E. Bimodal wealth distribution

4. ________ assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb.
A. Rational economics
B. Socialism
C. Cultural relativism
D. National culture
E. Behavioral economics

5. ________ occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources.
A. Communism
B. Socialism
C. Bimodal wealth distribution
D. A two-class social structure
E. Laissez-faire capitalism

6. The ________ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations.
A. International Monetary Fund
B. United Nations
C. World Trade Organization
D. North American Free Trade Act
E. European Union

7. What is the purpose of the UN Global Compact?
A. To promote free trade around the world
B. To support international banking institutions
C. To uphold the principle of consumerism
D. To provide legal representation to international corporations facing lawsuits
E. To promote human rights, sustainability, and eradicate corruption

8. When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating
are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad. This practice is called
A. self-reference criterion
B. country cultural values
C. consumerism
D. cultural relativism
E. dumping

9. A coaching leader builds a positive climate by
A. valuing people, their emotions, and their needs.
B. focusing on communication across all layers of the organization.
C. inspiring employees to follow their departmental leaders without question.
D. focusing on achievement, initiative, and self-control.
E. developing skills for success, delegating responsibility, and issuing challenging assignments.

10. The ________ of an organization can influence the acceptance of, adherence to, transmittal, and monitoring of organizational norms, values, and codes of ethics.
A. nation of origin
B. locus of control
C. leadership style
D. production methods
E. opportunity

11. When a group is more likely to move toward a more extreme position than the group members might have done individually, this is referred to as
A. Leader-follower congruence
B. Groupthink
C. Values-based culture
D. Ethical leadership
E. Group polarization

12. Leaders whose decisions and actions are contrary to the firm's values send a signal
A. that the firm's values are trivial or irrelevant.
B. that they are providing a good example of what not to do.
C. that the firm's corporate culture is highly important.
D. that they are working toward improving the ethical culture of the firm.
E. that they care about the environment.

13. Leaders having a(n) ________ conflict management style are highly assertive and not very cooperative.
A. Avoiding
B. Competing
C. Compromising
D. Accommodating
E. Collaborating

14. ________ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree.
A. Group polarization
B. Leader-follower congruence
C. Groupthink
D. Competition
E. Conflict

15. Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking?
A. Authoritative leadership
B. Coaching leadership
C. Pacesetting leadership
D. Coercive leadership
E. Affiliative leadership

16. The most effective leaders possess the ability to manage themselves and their relationships with others effectively, a skill known as
A. Conflict management
B. Group theory
C. Collaboration
D. Emotional intelligence
E. Leader-follower theory

17. The Clean Water Act makes it illegal for anyone to discharge any pollutant from a point source directly into navigable waters without a
A. good reason
B. direct order
C. permit
D. inspector present
E. limit

18. The protection of air, water, land, biodiversity, and ________ emerged as a major issue in the twentieth century.
A. employee relations
B. renewable natural resources
C. environmental legal regulations
D. consumer protection
E. air pollution

19. All of these are ways of reducing pollution, except:
A. Designing environmentally friendly buildings
B. Recycling
C. Greenwashing
D. Source reduction
E. Sustainable agriculture

20. Wind power holds great promise for the United States because of the ________, and experts believe wind energy could meet as much as 20 percent of the nation's energy needs.
A. Rocky Mountains
B. Everglades
C. Great Lakes
D. Pacific Rim
E. Great Plains

21. The first Earth Day, increasing stakeholder awareness of environmental concerns, and the creation of the Environmental Protection Agency brought ________ to the forefront.
A. corporate social responsibility
B. alternative energy sources
C. diversity
D. sustainability
E. competition

22. One of the biggest factors in land pollution is the dumping of waste into landfills. ________ consumers are by far the world's biggest wasters.
A. European
B. Chinese
C. Russian
D. American
E. Canadian

23. Geothermal energy provides ________ and is a more dependable energy source than some other forms of alternative energy.
A. heat from the sun
B. a radiated heat
C. heat from steam
D. a constant source of heat
E. a dry heat

24. Sustainability is the long-term well-being of the natural environment and the mutually beneficial interactions among ________.
A. customers, investors, managers, and policies
B. board members, presidents, managers, and nonprofit organizations
C. investors, creditors, suppliers, and the marketing department
D. nature, individuals, organizations, and business strategies
E. managers, boards, CEO's, and stakeholder strategies

25. ________ is one of the country's greatest sustainability success stories.
A. Water conservation
B. Pollution control
C. Manufacturing
D. Composting
E. Recycling

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