HRM 522 Week 5 Midterm Exam Part
Question 1. Principles are
Answer
- laws and regulations that guide behavior in the world of business.
- mores, values, and customs that guide behavior in general.
- specific and pervasive boundaries for behavior that are universal and absolute.
- the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders.
- the mores, values, and customs that parents teach their children.
Question 2. Ethics is a part of decision making
Answer
- at all levels of work and management.
- primarily at the upper management levels of an organization.
- mostly for policy makers.
- that is less important than other decision making processes.
- only at that lower levels of organizational management
Question 3. Which of the following is not something a firm might do to encourage organizational ethics and compliance?
Answer
- Employee ethics training
- Hiring a compliance officer
- Ignoring potential ethical issues
- Writing a code of ethics
- Conducting an ethics and compliance audit
Question 4. During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
Answer
- Sarbanes-Oxley Act
- Federal Sentencing Guidelines for Organizations
- Dodd-Frank Wall Street Reform and Consumer Protection Act
- Foreign Corrupt Practices Act
- Global Sullivan Principles
Question 5. Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues when an individual has
Answer
- family concerns.
- an unethical boss.
- limited business experience.
- financial training.
- a marketing background
Question 6. Which of the following is generally not considered a business ethics issue?
Answer
- Harassment
- Accounting fraud
- Employee theft
- Misuse of organizational resources
- Corporate hierarchy
Question 7. Social responsibility is
Answer
- an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.
- principles and standards that guide behavior in the world of business.
- a business's responsibility not to pollute the environment.
- a business's responsibility to manufacture products that function properly.
- charitable contributions made by a business to enhance its image
Question 8. Investors are concerned about business ethics because they know that misconduct can
Answer
- foster stability.
- improve employee commitment.
- improve customer loyalty.
- lower stock value and prices.
- complicate business financial reporting
Question 9. Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
Answer
- Insurance
- Technology
- Banks
- Mortgage lenders
- Financial services
Question 10. Stakeholders' power over businesses stems from their
Answer
- ability to withdraw or withhold resources.
- ability to generate profits.
- media impact.
- political influence.
- stock ownership
Question 11. Why do critics argue that high compensation for boards of directors is a bad thing?
Answer
- It is too expensive for the organization.
- It could cause conflicts of interest between the directors and the organization.
- It is not fair to poorly compensated employees.
- High pay will render the board less complacent.
- Board of director compensation is not a major issue
Question 12. Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?
Answer
- Surveys
- Focus groups
- Internet searches
- Press reviews
- Guessing
Question 13. The degree to which a firm understands and addresses stakeholder demands can be referred to as
Answer
- a stakeholder orientation.
- a shareholder orientation.
- the stakeholder interaction model. d. a two-way street.
- e. a continuum.
Question 14. One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that _______.
Answer
- there should be no limit on what top executives can earn.
- managers should earn no more than twenty times the pay of other employees.
- top managers should make the same amount as other employees.
- employees can determine how much managers make.
- the government should determine the worth of each manager's service
Question 15. Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
Answer
- Investors
- Community
- Suppliers
- Customers
- Employees
Question 16. The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was
Answer
- Adam Smith.
- Theodore Levitt.
- Norman Bowie.
- Herman Miller
- Milton Friedman
Question 17. ________ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
Answer
- Stealing
- Lying
- Fraud
- Misappropriation
- Accounting fraud
Question 18. Among retail stores, ________ is a larger problem than customer shoplifting.
Answer
- poor stock performance
- weak leadership
- internal employee theft
- misuse of merchandise
Question 19. ________ are used to obtain or retain business and are not generally considered illegal in the U.S.
Answer
- Facilitation payments
- Bribes
- Gifts
- Coercive techniques
- Threats
Question 20. What type of fraudulent activity could involve a consumer staging an accident to seek damages?
Answer
- Whacking
- Duplicity
- Guile
- Defamation
- Collusion
Question 21. Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?
Answer
- Physical threats
- False accusations
- Being annoying
- Profanity
- Performance probation
Question 22. Which of the following is not a consequence of ethical misconduct?
Answer
- Decreased reputation
- Shaken customer loyalty
- Reduced investor confidence
- Increased sales
- Legal actions by wronged parties
Question 23. Optimization is defined as
Answer
- the quality of being just, equitable, and impartial.
- a trade-off between equity and efficiency.
- an interchange of giving and receiving in social relationships.
- how wealth or income is distributed between employees within a company.
- a lack of integrity, incomplete disclosure, and an unwillingness to tell the truth
Question 24. Which of the following is not a side-effect of being the victim of workplace bullying?
Answer
- Increased productivity
- Sleep disturbance
- Depression
- Increased sick days
- Stomach problems
Question 25. Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?
Answer
- Conflict of interest
- Honesty
- Communications
- Discrimination
- Intellectual property rights
HRM 522 Week 5 Midterm Exam Part 2
Question 1. The ________ was called "a sweeping overhaul of the financial regulatory system...on a scale not seen since the reforms that followed the Great Depression."
Answer
- Equal Pay Act
- Americans with Disabilities Act
- Dodd-Frank Wall Street Reform and Consumer Protection Act
- Age Discrimination in Employment Act
- VII of the Civil Rights Act
Question 2. ________ law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.
Answer
- Civil
- Criminal
- Competitive
- Administrative
- Regulatory
Question 3. ________ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.
Answer
- Social responsibility
- Business ethics
- Corporate philanthropy
- Strategic philanthropy
- Cause-related marketing
Question 4. The ________ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.
Answer
- institutionalization
- rationalization
- commercialization
- mobilization
- enforcement
Question 5. The ________ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.
Answer
- World Trade Organization
- Consumer Financial Protection Agency
- Department of Justice
- Environmental Protection Agency
- The Food and Drug Administration
Question 6. Which is not one of the four sources of criminal and civil laws?
Answer
- Judicial law
- Common law
- Constitutional law
- Administrative law
- Statutory law
Question 7. Title VII of the Civil Rights Act of 1964
Answer
- prohibits discrimination on the basis of race, color, sex, religion, or national origin.
- penalizes the top executives in an organization for misconduct.
- is basically the same as the Sarbanes-Oxley Act.
- discourages whistle-blowers from reporting misconduct.
- prohibits pay discrimination on the basis of gender
Question 8. Companies that ________ will most likely be found in violation of procompetitive legislation.
Answer
- pollute waterways
- knowingly harm consumers
- contract with sweatshops
- establish monopolies
- help consumers
Question 9. The ________can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization.
Answer
- corporate culture
- intentions of a corporate
- ethical issue awareness
- determination of a corporation
- individual factors
Question 10. Which of the following is not considered a significant other group in the workplace?
Answer
- Peers
- Managers
- Spouses
- Coworkers
- Subordinates
Question 11. ______ have been found to decrease unethical practices and increase positive work behavior.
Answer
- High educational attainment levels
- High levels of community involvement
- Charismatic leaders
- Strong religious beliefs
- Good personal values
Question 12. For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?
Answer
- I need a paycheck and can't afford to quit right now.
- Those around me are doing it so why shouldn't I?
- If I don't do this, I might not be able to get a good reference from my boss when I leave.
- If I don't do this, I might never be promoted.
- This is in keeping with my personal morals and the code of conduct, so it is okay.
Question 13. Which of the following is the first step in the ethical decision making process?
Answer
- Being socialized into the firm's corporate culture
- Applying a personal moral philosophy in order to individualize the ethical decision making process
- Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong
- Soliciting the opinions of others in a work group or in the overall business in order to gain feedback
- Enforcing the firm's ethical standards with rewards and punishment
Question 14. The ________ includes the motivational "carrots and sticks" superiors use to influence employee behavior.
Answer
- Obedience to authority
- Immediate job context
- Locus of control
- Normative approach
- Descriptive approach
Question 15. Employees that see themselves as going with the flow because that's all they can do have a(n)
Answer
- external locus of control.
- moral intensity
- obedience to authority
- opportunity
- internal locus of control
Question 16. ________ is the ability to perceive whether a situation or decision has an ethical dimension.
Answer
- Ethical issue intensity
- Locus of control
- Ethical awareness
- Moral intensity
- Opportunity
Question 17. ________ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more committed to completing projects and more dedicated to group values and objectives.
Answer
- Relativists
- Hedonists
- Pragmatists
- Deontologists
- Teleologists
Question 18. Enlightened egoism
Answer
- is when an individual puts spiritual feelings above all others.
- centers completely on the short-term well-being of others.
- centers on one's short-term self-interest.
- centers on one's long-term self-interest but takes others' well-being into account.
- centers on the long-term well-being of others
Question 19. ________ believe that no one thing is intrinsically good.
Answer
- Hedonists
- Pluralists
- Relativists
- Deontologists
- Teleologists
Question 20. An individual who emphasizes others rather than himself or herself in making decisions is in which of the following of Kohlberg's stages of development?
Answer
- Universal ethical principles (6th stage)
- Mutual interpersonal expectations, relationships, and conformity (3rd stage)
- Social system and conscience maintenance (4th stage)
- Punishment and obedience (1st stage)
- Prior rights, social contract, or utility (5th stage
Question 21. Which moral philosophy evaluates the morality of an action on the basis of its conformity to general moral principles and respect for individual rights?
Answer
- The relativist perspective
- Act utilitarianism
- Rule utilitarianism
- Act deontology
- Rule deontology
Question 22. Which is the last of Kohlberg's stages of cognitive moral development?
Answer
- Individual instrumental purpose and exchange
- Need achievement
- Social system and conscience maintenance
- Punishment and obedience
- Universal ethical principles
Question 23. An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a(n)
Answer
- utilitarian.
- relativist.
- teleologist.
- deontologist.
- egoist.
Question 24. ________ justice considers the processes and activities that produce the outcome or results.
Answer
- Disruptive
- Procedural
- Interactional
- Communications
- Evaluative
Question 25. According to Kohlberg's model, as a person progresses through the stages of moral development, and with time, education, and experience, he/she
Answer
- is unlikely to change his/her values and ethical behavior.
- may change his/her values and ethical behavior.
- will likely be promoted.
- will depend more on the input of significant others in ethical decision making.
- will experience less opportunity to behave unethically.