BESCR 테스트뱅크

File: Chapter 1, Introducing Straight Talk about Managing Business Ethics: Where we’re Going
and Why
True/False
1. The interest in business ethics is just a fad that has only recently been created by popular
scandals (i.e., Enron, WorldCom, etc.) reported in the news.
Ans: False
Response: See page 2.
Difficulty: Easy
2. Discarding the few “bad apples” will usually solve all of the ethical problems within an
organization.
Ans: False
Difficulty: Easy
3. Good character is the main factor determining whether an individual acts ethically within an
organization.
Ans: False
Difficulty: Moderate
4. Federal laws define what is ethical. Therefore, all unethical behavior is considered unlawful.
Ans: False
Response: See page 21. Some unethical behavior is not covered by law (for example, lying to a
manager about the reason for taking a sick day).
Difficulty: Difficult
5. Both characteristics of the environment and the individual contribute to unethical behavior.
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Ans: True
Difficulty: Easy
6. When employees come to an organization, they have already developed into “good” or “bad”
apples. Therefore, there is little a manager can do to impact an employee’s ethical behavior.
Ans: False
7. According to the authors, most people are guided by a strict internal moral compass and will
not be swayed by organization factors.
Ans: False
8. By ignoring the topic of ethical behavior, an organization may actually be encouraging

unethical behavior through benign neglect.
Ans: True
Difficulty: Easy
9. It is unethical for managers to “control” employees’ ethical behavior through direct

management and the organization’s formal and informal cultural systems.
Ans: False
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10. For individuals, values can be defined as “one’s core beliefs about what is important, what is
valued, and how one should behave across a wide variety of situations.”.
Ans: True
Multiple Choice
11. Which of these is Adam Smith’s first book?
a) Wealth of Nations
b) The Theory of Moral Sentiments
c) The Corporation
d) The Moral Dimension
Ans: b
12. The implosion of the financial markets in 2008 was largely the result of:
a) illegal behavior
b) the Federal government intervention
c) government regulation
d) unethical activities in that they ultimately produced great harm
Ans: d
13. According to the authors, all of these are factors that laid the groundwork for the disaster in
the United States in 2008 EXCEPT:
a) borrowing was expensive

b) real estate became the investment of choice
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c) mortgage originators peddled “Liar Loans”
d) banks securitized the poison and spread it around
Ans: a
Response: See page 4-9.
14. According to the 2012 Edelman Trust Barometer, only _____ percent of Americans surveyed
trust banks to be ethical—a _____-point drop since 2008
a) 60; 20
b) 20; 40
c) 35; 34
d) 15; 28
Ans: c
15. The Ethics Resource Center’s 2011 National Business Ethics Survey found that only _____
percent of employees of for-profit enterprises report feeling pressured to compromise their
ethical standards.
a) 7
b) 13
c) 19
d) 23
Ans: b
16. Ethical behavior can be influenced by:
a) an individual’s religion
b) an organization’s culture
c) ethical training
d) an individual’s personality
e) all of the above
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Ans: e
Response: Pp. 14-16. Ethical behavior is influenced by both individual factors (such as
personality, upbringing, etc.) and organization factors (such as culture, leadership, etc.).
Difficulty: Easy
17. Which of the following statements is true?
a) “Bad apples” are just a few individuals who spoil it for the rest of us.
b) Employees’ good behavior can be spoiled by a “bad barrel.”
c) Ethics cannot be taught because individuals come into an organization already as a “bad
apple.”
d) “Bad barrels” are caused by “bad apples” in an organization.
Ans: b
18. _________ students may need more ethics training because research has found that they rank
lower in moral reasoning than other students.
a) Philosophy
b) Political science
c) Business
d) Medicine
Ans: c
Difficulty: Easy
19. Definition of ethics—“the principles, norms, and standards of conduct governing an

individual or group”—focuses on _______.
a) organization
b) society
c) business
d) conduct
Ans: d
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Difficulty: Easy
20. According to the authors, ethical behavior is defined as:
a) a set of moral principles or values that guide an individual

b) rules of behavior set by the Federal government
c) principles, norms, and standards agreed upon by society
d) none of the above
Ans: c
21. In this book, the authors focus on _____________ factors because ____________:
a) individual; these factors are the main determinant of unethical behavior

b) organization; these factors can be directly controlled by managers
c) individual; a few “bad apples” spoil it for the rest of us
d) organization; these factors are particularly important in unambiguous situations
Ans: b
22. According to a national opinion survey, identify the goal that employees did not rank in the
top five?
a) Honest company communications

b) Good pay
c) Respectful treatment
d) Ethical corporate behavior
Ans: b
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23. The U.S. Chamber of Commerce estimates that workplace theft costs U.S. businesses
between $20 billion and $40 billion each year, and ______ are thought to be responsible for
much of it.
a) employees
b) customers
c) community members
d) government agencies
Ans: b
24. Parties who are affected by the business and its actions and who have an interest in what the
business does and how it performs are called _______.
a) stakeholders
b) large customers
c) community committees
d) government parties
Ans: a
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File: Chapter 2, Deciding What’s Right: A Prescriptive Approach
True/False
1. An ethical dilemma is defined as a situation where two or more “right” values are in conflict.
Ans. : True
Response: See page 39
Difficulty: Easy
2. A challenge involved in using a strictly consequentialist approach is that it is often difficult to

obtain the information required to evaluate all of the consequences for all stakeholders who may
be directly or indirectly affected by an action or decision.
Ans.: True
Difficulty: Medium
3. The consequentialist approach protects the rights of the minority.
Ans.: False
4. Business managers generally rely on the consequentialist approach.
Ans.: True
5. A major challenge of deontological approaches is deciding which duty, obligation, right, or

principle takes precedence because ethical dilemma often pit these against each other.
Ans. : True
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6. A virtue ethics perspective considers the actor’s character, motivations, and intentions.
Ans. : True
Response : See page 46
Difficulty: Easy
7. A virtue ethics perspective requires a moral actor to look to the community that will hold the
moral actor to the highest ethical standard and support the moral actor’s intention to be a virtuous
person.
Ans.: True
Difficulty: Medium
8. Ethical dilemmas represent conflicts in values.
Ans: True
Difficulty: Medium
9. According to Lawrence Kohlberg, developer of a key theory of moral reasoning, role taking is
useless as nothing is gained by putting yourself in the shoes of others.
Ans.: False
10. In business, concerning yourself with how your decision making affects stakeholders is
useless given the number of stakeholders and their different interests.
Ans.: False
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11. Despite the disclosure rule, making decisions in private to avoid negative reaction is
generally best for a business as it safeguards your firm’s reputation and keeps competitive
information away from your competitors.
Ans.: False
12. Creativity and thinking out of the box are just a scoundrel’s way of saying that coming up
with alternatives in solving how you handle ethical issues are valuable skills to keep you from
getting caught.
Ans.: False
Response: See pages 57-58
13. An appearance of a conflict of interest can be as damaging as an actual conflict.
Ans.: True
14. If you are asked to make hastily a decision that you believe raises potential ethical issues you
should be a good team player and proceed with the decision.
Ans.: False
15. It is good advice to go with your gut.
Ans.: False
Response: See page 57-58
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16. Most business managers rely on a deontological approach.
Ans: False
Response: Most managers rely on a utilitarian (or teleological) approach. See page 42.
17. Utilitarianism is the best known example of a consequential theory.
Ans: True
Difficulty: Easy
18. Although all of the philosophical approaches have limitations, an individual must choose one
approach and follow its guidance in every situation.
Ans: False
19. Generally, ethical dilemmas are not routine. Therefore, there is no way that an individual can
be prepared or informed for a problem ahead of time.
Ans: False
Response: It is important that you do your homework and understand how to protect yourself and
your employer. This will give you a “head’s up” when you face potential ethical dilemmas. See
page 58-59.
Difficulty: Easy
Multiple Choice
20. A _______________ is any person or group with a stake in the issue at hand.
a) stakeholder
b) large customer
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c) community committee
d) government party
Ans: a
Response: page 40.
Difficulty: Easy
21. The ___________ approach to ethical decision making focuses on how people actually make
ethical decisions.
a) prescriptive
b) descriptive
c) illustrative
d) regulatory
Ans: b
Difficulty: Easy
22. The ___________ approach to ethical decision making focuses on what decision an
individual should make.
a) prescriptive
b) descriptive
c) illustrative
d) regulatory
Ans: a
Difficulty: Easy
23. The prescriptive approach is to ____________ as the descriptive approach is to

_____________.
a) psychology; philosophy
b) philosophy; psychology
c) would; does
d) none of the above
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Ans: b
Response: See pages 38-39.
24. ______ is probably the best-known consequentialist theory.
a) Utilitarianism
b) The disclosure rule
c) Deontological
d) Principle of value
Ans: a
25. The ___________ states that an ethical decision should maximize benefits to society and
minimize harms.
a) principle of value
b) theory of cost-benefit analysis
c) principle of efficacy
d) principle of utility
Ans: d
26. A ________ focuses on doing what is “right” (based on moral principles or values such as
honesty), whereas a _________ focuses on doing what will maximize societal welfare.
a) utilitarian; virtue follower

b) deontologist; consequentialist
c) virtue follower; utilitarian
d) consequentialist; deontologist
Ans: b
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27. A major challenge of _____ approaches is deciding which duty, obligation, right, or principle
takes precedence because, as we said earlier, ethical dilemmas often pit these against each other.
a) utilitarian
b) deontological
c) teleological
d) consequentialist
Ans: b
28. The _____ approach focuses more on the integrity of the moral actor (the person) than on the
moral act itself (the decision or behavior).
a) utilitarian
b) deontological
c) teleological
d) virtue ethics
Ans: d
29. The __________ challenges one to ask, “how would you feel if your behavior appeared in
The Wall Street Journal?”
a) veil of ignorance
b) categorical imperative
c) disclosure rule
d) confession constraint
Ans: c
30. Which of these is the first step in the sound ethical decision making in business?
a) Define the ethical issues

b) Gather the facts
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c) Identify the affected parties
d) Check your gut
Ans: b
31. Which of these is the final step in the sound ethical decision making in business?
a) Define the ethical issues

b) Gather the facts
c) Identify the affected parties
d) Check your gut
Ans: d
Matching Exercise I
Reference: Matching Key Terms and Descriptions (each can be used more than once)
a) Deontological approach
b) Teleological (or Consequential) approach
c) Virtue ethics approach
32. Focuses on doing what is “right” based on broad, absolute and universal moral principles or
values
Ans: a
33. “What kind of world would this be if everyone behaved this way or made this kind of
decision in this type of situation?”
Ans: a
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Difficulty: Easy
34. Focuses on the integrity of the moral actor.
Ans: c
35. The______________ approach best known as consequentialist theory is Utilitarianism.
Ans: b
Difficulty: Medium
36. For example, followers of this approach would rely on Western biblical tradition or moral
intuition for guidance.
Ans: a
Difficulty: Medium
37. A philosophical tradition that began with Aristotle and primarily considers the actor’s
character, motivations, and intentions.
Ans: c
Difficulty: Medium
38. Focuses on the results or consequences of the decision or action.
Ans: b
Difficulty: Medium
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Matching Exercise II
Reference: Matching Approach and Weakness (each can be used more than once)
a) Deontological approach
b) Teleological approach
c) Virtue ethics approach
39. This approach that stresses community standards is limited in business because in many areas
of business there is limited agreement about what the standards are.
Ans: c
40. An individual’s principles may be in conflict with what is best and causes the least amount of
harm to another individual. For example, an individual who believes that he or she should
not lie would be conflicted about telling the Nazi’s he or she is hiding Jews in the basement.
Ans: a
41. It is difficult to obtain the information required to evaluate all of the consequences for all
indirect and direct stakeholders.
Ans: b
42. The rights of a minority group can easily be sacrificed for the benefit of the majority (for
example, slavery in the United States).
Ans: b
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43. A major challenge is deciding which duty, obligation, right, or principle takes precedence.
Ans: a
Difficulty: Medium
Essay Questions
44. Discuss the disclosure rule and the ethical role model rule. When might the disclosure rule
be most helpful? When might the role model rule be most helpful?
Ans: See page 50

45. You are working with an important vendor who has offered you a “sweet” deal. However,
the vendor has made it clear that he wants a decision now and your internal warning system
(i.e. your gut) is telling you that this deal might be an ethical dilemma. Using what you have
learned from this chapter, briefly describe how you should proceed. Will you answer him
now? How will you think about the “dilemma” and respond to the vendor?
Ans: Students should recognize that they should not make potential ethical decisions
immediately without time for consideration. Students should include asking for more time to
think over the decision as well as possible rules, principles, or approaches to consider (for
example, the disclosure rule) before accepting or rejecting the deal.
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File: Chapter 3, Deciding What’s Right: A Psychological Approach
True/False
1. If an individual does not recognize that he or she is facing an ethical dilemma, then ethical
judgment is likely not to occur.
Ans: True
Difficulty: Medium
2. With the advent of technology, fewer people look to others in their social environment for
guidance in ethical dilemma situations.
Ans.: False
3. When describing a situation, the type of language used does not affect moral awareness.
Ans: False
Response: Neutral language is less likely to trigger moral awareness. See page 73.
Difficulty: Easy
4. Neutral language can be used to make an unethical action seem less problematic.
Ans.: True
Difficulty: Easy
5. Training, whether in groups, peer to peer, or using DVD to deliver the content, has been
shown to be ineffective in helping employees become ethically aware.
Ans.: False
Response: see page 74.
Difficulty: Medium
6. According to Kohlberg, as individuals move forward through the sequence of stages they are
cognitively capable of comprehending all reasoning stages below and above their own.
Ans. False
7. According to cognitive moral development theory, the actual moral decision is not as
important as the reasoning process used to arrive at it.
Ans: True
Response: See pages 76.
Difficulty: Medium
8. Kohlberg argued that the higher the reasoning stage, the more ethical the decision.
Ans: True
Difficulty: Easy
9. Ethical conflict is almost exclusively influenced by individual differences.
Ans: False
Difficulty: Medium
10. In Kohlberg’s theory, adherence to any principle qualifies as “principled” thinking.
Ans: False
Difficulty: Easy
11. There are major differences in levels of moral reasoning between men and women.
Ans: False
Difficulty: Easy
12. Managers must structure the work environment to support ethical conduct and this includes
ensuring that reward systems are aligned with the ethics of the firm.
Ans.: True
Difficulty: Medium
13. An organization led by a leader high in cognitive moral development establishes a much
stronger ethical climate in the organization.
Ans. True
Difficulty: Medium
14. In organizations, individuals high on Machiavellianism are significantly more likely to have
unethical intentions and to engage in unethical behavior including accepting kickbacks.
Ans.: True
Difficulty: Medium
15. An effective way to avoid decision-making weaknesses and biases is to become aware of
them and to incorporate steps into decision-making that are explicitly aimed at reducing their
impact.
Ans.: True
Response: see page 87
Difficulty: Medium
Matching
Reference: Matching Kohlberg’s Levels of Moral Reasoning

a) Stage 1
b) Stage 2
c) Stage 3
d) Stage 4
e) Stage 5
f) Stage 6
16. Focused on interpersonal trust and social approval.
Ans: c
Difficulty: Medium
17. Focused on avoiding punishment.
Ans: a
Difficulty: Medium
18. Focused on following the rules or laws that are designed to promote the common good.
Ans: d
Difficulty: Medium
19. “You scratch my back, I’ll scratch yours.”
Ans: b
Difficulty: Medium
20. Considers the possibility of changing the law for socially useful purposes.
Ans: e
Difficulty: Medium
Reference: Matching Key Terms and Definitions

a) confirmation bias
b) illusion of optimism
c) illusion of control
d) illusion of superiority
21. Tendency to underestimate risks because of the belief that we are in charge of what happens.
Ans: c
Difficulty: Easy
22. Unconscious distortion of information in order to maintain a positive self-image.
Ans: d
Difficulty: Easy
23. Tendency to attend to the information that endorses the decision we prefer.
Ans: a
Difficulty: Easy
24. Tendency to overestimate the likelihood of good future events.
Ans: b
Difficulty: Easy
Multiple Choice
25. Research has found that people are more likely to be ethically aware, to recognize the ethical
nature of an issue or decision, if all of these things happen EXCEPT:
a) if they believe that their peers will consider it to be ethically problematic.

b) if ethical language is used to present the situation to the decision maker.
c) if the decision is seen as having the potential to produce serious harm to others.
d) if superiors in the organization do not see it as an issue but subordinates do.
Ans: d
26. A person’s emphasis on ethical principles being dependent on the situation rather than being
applicable to all situations refers to which of these?
a) Relativism
b) Idealism
c) Locus of control
d) Machiavellianism
Ans: a
Difficulty: Medium
27. According to cognitive moral development theory, individuals move to a higher reasoning
stage:
a) Every time they encounter a more difficult ethical dilemma.

b) When there is a contradiction between his or her current moral reasoning stage and the next
higher one.
c) As they grow older.
d) None of the above. An individual’s level of moral reasoning does not change after he or she
becomes an adult.
Ans: b
Difficulty: Medium
28. Which of the following is false?
a) Lawrence Kohlberg developed the cognitive moral development theory by studying male adult
behavior.
b) The cognitive moral development theory focuses primarily on how people decide what course
of action is morally right.
c) Cognitive moral development is an individual difference that impacts the way people think
about an ethical dilemma.
d) Individuals can comprehend and use all stages of reasoning below their own.
Ans: a
Difficulty: Medium
29. At what stage of Kohlberg’s Cognitive Moral Development Model, what is right is judged in
terms of a “you scratch my back, I’ll scratch yours” reciprocal relationship?
a) Stage 3
b) Stage 5
c) Stage 2
d) Stage 4
Ans: c
30. At which stage of Kohlberg’s Cognitive Moral Development Model, the emphasis is still on
rules and laws because these represent the recognized social contract, but this stage thinker is
willing to question the law and to consider changing the law for socially useful purposes?
a) Stage 3
b) Stage 5
c) Stage 2
d) Stage 4
Ans: b
31. Most adults are at the ____________ level of cognitive moral development and their action is
____________.
a) Conventional; based on avoidance of punishment.

b) Conventional; based on what others think, say, and do.
c) Postconventional; based on the best outcome for society.
d) Postconventional; based on their religion or guiding principles.
Ans: b
a) Moral reasoning can be increased through training.

b) A more-principled individual is less likely to cheat.
c) When an organization’s leader is characterized by high moral development, the entire ethical
climate of the organization is stronger.
d) Employee satisfaction and commitment are not related to the leader’s moral development.
Ans: d
Difficulty: Medium
33. Sally attributes her success at work to luck. Sally can be characterized by:
a) high internal locus of control

b) high external locus of control
c) Stage 2 moral reasoning
d) Stage 4 moral reasoning
Ans: b
Difficulty: Medium
34. Roger believes that his success at work is primarily the result of his own efforts and hard
work. Roger can be characterized by:
a) high internal locus of control
b) high external locus of control
c) Stage 2 moral reasoning
d) Stage 4 moral reasoning
Ans: a
Difficulty: Medium
35. Which of the following is true?
a) People’s locus of control is relatively stable, but can change over time.
b) People are born with a particular locus of control.
c) People are either internal or external. Locus of control is not a continuum.
d) People with high external locus of control believe their life is a product of their own efforts.
Ans: a
Difficulty: Medium
36. Those with higher __________ are more likely to avoid pressure to violate social norms
because _____________.
a) internal locus of control; they typically act at the postconventional level of moral reasoning.
b) external locus of control; they believe in luck.
c) internal locus of control; they believe they are in charge of their own fate.
d) external locus of control; they typically act at the postconventionl level of moral reasoning.
Ans: c
37. Which of these terms is used to describe individuals who act in self-interested, opportunistic,
deceptive, and manipulative ways to win no matter what the cost or how it affects other
people?
a) Relativism
b) Idealism
c) Locus of control
d) Machiavellianism
Ans: d
Difficulty: Easy
a) Cognitive biases are the result of trying to reduce uncertainty and simplify the world.
b) Cognitive biases are an individual difference and do not affect all human beings in the same
way.
c) Business executives and students are generally reserved about their knowledge of the facts.
d) People are generally good at thinking of the consequences of their decisions outside of their
immediate family and friends.
Ans: a
Difficulty: Medium
File: Chapter 4, Addressing Individuals ‘Common Ethical Problems
Matching
Reference: Matching Ethical Type to Example

a) People issue
b) Conflict of interest
c) Customer confidence issue
d) Use of corporate resources
1. Accepting a bribe.
Ans: b
Difficulty: Easy
2. Discriminating against an employee.
Ans: a
Difficulty: Easy
3. A product is unsafe for human consumption.
Ans: c
Difficulty: Easy
4. Providing a personal reference on corporate letterhead.
Ans: d
Difficulty: Easy
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5. “How people get along.”
Ans: a
Difficulty: Easy
6. Honestly representing a product in a sales pitch.
Ans: c
Difficulty: Easy
7. Keeping a customer’s information private.
Ans: c
Difficulty: Easy
8. Sending personal mail through the company mail room.
Ans: d
Difficulty: Easy
True/False
9. With human resource issues, the most important word to remember is “fairness.”
Ans: True
Difficulty: Easy
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10. Employees do not care about the fairness of the decision making procedure as much as they
care about the fairness of the outcomes they receive.
Ans: False
Difficulty: Medium
11. If an organization has 30 employees, it is not required to have a sexual harassment policy or
train employees on these issues.
Ans: False
Difficulty: Easy
12. An employer cannot be held liable for an employee’s sexual harassment activities.
Ans: False
Response: An employer may be held liable if the employer had knowledge of the conduct and
did nothing to correct it. See page 120.
Difficulty: Easy
13. It is important to avoid romance with anyone you supervise for the following reasons: 1)
Your judgment is likely to be compromised by the relationship 2) Coworkers are likely to lose
respect for both parties and fear preferential treatment.
Ans.: True
Difficulty: Medium
14. Zachary works for Step-Up Printing Services during the day and a local diner at night. This
is a conflict of interest.
Ans: False
Difficulty: Medium
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15. Common conflicts of interest include overt or covert bribes and the trading of influence or
privileged information.
Ans.: True
Difficulty: Medium
16. Accepting discounts on personal items from a vendor is acceptable as it enriches the
relationship between the parties.
Ans.: False
Difficulty: Easy
17. Transparency is the best policy in holding more than one employment option. Thus, so long
as you tell both employers about the work you are doing, the work you perform at either firm is
not relevant.
Ans.: False
Difficulty: Medium
18. Conflicts of interest erode trust by making it look s if special favors will be extended for
special friends.
Ans.: True
Difficulty: Easy
19. You should guard your reputation as it is built slowly with countless actions but it can be
destroyed in an instant by one foolish mistake.
Ans.: True
Difficulty: Easy
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20. As a senior executive, it makes sense for you to use the firm’s corporate letterhead to write
references for employees leaving the firm who have previously served the firm well.
Ans.: False
Difficulty: Medium
21. Facebook, LinkedIn and other social networking sites are immune from ethical challenges as
that which you post on these sites is personal and may not be examined by your firm.
Ans.: False
Difficulty: Medium
Multiple Choice
22. The broad categories of typical ethical problems individuals face in the workplace include all
of the following except
a. Human resources issues

b. Conflicts of interest
c. Customer Confidence Issues
d. Use of Corporate Resources
e. Leadership concerns
Ans.: e
Difficulty: Easy
23. Identify the three components that are used to define “fairness.”
a) reciprocity, equality, and impartiality

b) reasonableness, equality, and sensitivity
c) reciprocity, equity, and impartiality
d) joint understanding, equality, and neutrality
Ans: c
Difficulty: Easy
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24. When something is divided between two people according to the worth and inputs of the two
individuals, it is said to be ___________ and represents one component of “fairness.”
a) reasonable
b) impartial
c) equitable
d) unbiased
Ans: c
Difficulty: Medium
25. ___________ refers to the fairness of exchanges: “You did this for me and I’ll do that for
you.”
a) Reciprocity
b) Equality
c) Impartiality
d) Shared resources
Ans: a
Difficulty: Medium
a) Discrimination is an intentional bias that affects behavior.

b) Discrimination occurs whenever something other than qualifications affects how an employee
is treated.
c) Discrimination is prohibited under Title VII of the Civil Rights Act of 1964 against
individuals who are under 40 years old against age discrimination.
d) Discrimination is always overt and clear.
Ans: b
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a) Sexual harassment is any unwelcome sexually oriented behavior that makes someone feel
uncomfortable.
b) Sexual harassment is objective.
c) Sexual harassment is determined from the point of view of a “reasonable” person regardless of
the harasser’s intentions.
d) Sexual harassment generally involves issues of power and not romance.
Ans: b
Difficulty: Medium
28. _____________ is a type of sexual harassment wherein an individual believes that sexual
favors are a requirement for advancement in the workplace.
a) Quid pro quo

b) Section 7 harassment
c) Hostile work environment
d) Power-relations
Ans: a
Difficulty: Medium
29. ____________ is a type of sexual harassment wherein a worker is made to feel

uncomfortable because of unwelcome actions relating to sexuality.
a) Quid pro quo

b) Section 7 harassment
c) Hostile work environment
d) Power-relations
Ans: c
Difficulty: Medium
30. Which of the following is most likely an appropriate “gift” to accept from a vendor?
a) A discount on personal items purchased from the vendor
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b) Dinner for you and your wife at Applebee’s
c) Four tickets to the Super Bowl
d) A cash gift of $1,400
Ans: b
Difficulty: Medium
31. When a statement is “off the record,” this means:
a) Anything you told the reporter before you said “off the record” cannot be used in the
reporter’s story.
b) Your identity is completely protected; no one will be able to figure out the information came
from you.
c) A reporter cannot put any of the information you provided in his or her story.
d) A reporter can use the information you provided in a story as long as the remarks are not
attributed directly to you.
Ans: d
Difficulty: Medium
32. Kathleen Reardon encourages us to think about courage at work as “calculated risk taking.”
She recommends that you do all of the following EXCEPT:
a) Ask yourself about your intentions.

b) Ignore power and influence.
c) Weigh the risks and benefits of action.
d) Think about timing.
Ans: b
Difficulty: Medium
33. Guidelines on “How to Blow the Whistle” suggest all of these EXCEPT:
a) Approach your immediate manager first if you can (your manager isn’t involved in the
problem).
b) Avoid the issue with your family.
c) Take it to the next level.
8
d) Consider going outside your chain of command.
Ans: b
Difficulty: Medium
a) If you find out that your manager is behaving unethically, you should go directly to the CEO
of the company before talking with anyone else.
b) Issues that involve employee or customer rights are not serious enough to consider “blowing
the whistle.”
c) Under the False Claims Act, you can receive 15 to 30 percent of whatever damages the federal
government recovers if you blow the whistle on government fraud.
d) Most whistle-blowing cases are not resolved until they are reported outside of the company.
Ans: c
35. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and
Exchange Commission (SEC) will pay _____ percent of the amount the government recovers
from financial fraud if the whistleblower provides original information leading to a recovery of
more than a million dollars.
a) 10 to 30
b) 40 to 50
c) 5 to 8
d) 50 to 75
Ans: c
9
File: Chapter 5, Ethics as Organizational Culture
Matching

a) Strong organizational culture
b) Weak organizational culture
c) Socialization (or enculturation)
1. Standards and guidelines that are known and widely shared by all.
Ans: a
Difficulty: Easy
2. Subcultures within divisions or departments that are more likely to guide behavior.
Ans: b
Difficulty: Easy
3. Process promoted through formal and informal transmission of norms.
Ans: c
Difficulty: Easy

a) Heroes
b) Norms
c) Rituals
d) Myths
4. Symbolically tells employees what the organization wants them to do and how it expects them
to do it.
Ans: c
Difficulty: Easy
5. Standards of behavior that are accepted as appropriate by members of a group.
Ans: b
Difficulty: Easy
6. Symbolic figures who set standards of performance by modeling certain behaviors.
Ans: a
Difficulty: Easy
7. Anecdotes about a sequence of events drawn from an organization’s history.
Ans: d
Difficulty: Easy
True/False
8. Organization cultures vary widely, even within the same industry.
Ans: True
Difficulty: Easy
9. Organization cultures are maintained through formal systems alone.
Ans: False
Difficulty: Easy
10. An ethical culture is maintained through alignment between the formal and informal systems.
Ans.: True
Difficulty: Easy
11. A 2006 study found that 82 percent of Americans would prefer to be paid less but work for
an ethical company than be paid more and work for an unethical company.
Ans.: True
Difficulty: Medium
12. The US Sentencing Guidelines call for more attention to developing and maintaining the
ethical culture of the organization.
Ans: True
Difficulty: Easy
13. Unethical leaders can just as negatively affect the culture of a company as ethical leaders can
affect the ethical culture.
Ans: True
Difficulty: Medium
14. An ethically neutral leader is not clearly unethical, but is perceived to be more self-centered
and more focused on the bottom line.
Ans: True
Difficulty: Medium
15. Research has found that executive ethical leadership is critical to investors but not the
employees.
Ans. False
16. Research has found that employees working in organizations with an enforced code of ethics
report that they engage in less unethical behavior.
Ans: True
Difficulty: Easy
17. Most people, according to cognitive moral development, are looking outside of themselves
for guidance on decision-making. This means that stated organizational policy can be an
important source of guidance foe employees in making decisions.
Ans.: True
18. Alignment of the goals and rewards of an organization with the organization’s values is
essential because employees will generally do what is measured and rewarded.
Ans.: True
19. Loyalty is paramount in business and employees who question unethical direction or an
unethical boss are doomed.
Ans: False
20. Today, with advances in technology, very few modern organizations are bureaucratic.
Ans: False
Difficulty: Medium
21. The more a firm demands unquestioning obedience to authority, the more likely the firm will
experience higher levels of unethical conduct among their employees.
Ans: True
Difficulty: Medium
22. Given the less hierarchical organizational structures that are more common place today, it is
less important for to have strongly aligned ethical culture to guide employees in their
independent decision-making.
Ans: False
23. Companies that look for advice from consultants will do well to find a “spray and pray” plan.
Ans: False
Difficulty: Easy
24. The only way to determine if the culture is aligned to support ethical behavior is to conduct
regular, comprehensive audits of all relevant cultural systems, both formal and informal.
Ans: True
Difficulty: Easy
Multiple Choice
25. Weak organizational cultures are:
a) desirable if an organization has many subcultures.

b) desirable if an organization wants diversity of thought and action.
c) desirable if an organization wants behavioral consistency.
d) undesirable in all situations.
Ans: b
Difficulty: Medium
26. Which of these is NOT a part of informal system in an organization?:
a) Norms
b) Rituals
c) Language
d) Decision processes
Ans: d
Difficulty: Medium
27. Why did the US Sentencing Commission begin to focus on the ethical culture of the
organization in 2004?
a) Researchers had just recently introduced the idea of an “ethical culture” in 2002.
b) More and more consultants were discussing “ethical culture” in their programs.
c) Prior to the change, organizations used formal programs as “window dressing”.
d) None of the above
Ans: c
Difficulty: Medium
28. The “moral person” component of ethical leadership:
a) Tells employees how the leader expects them to behave.

b) Tells employees how the leader is likely to behave.
c) Shows that ethics and values are an important part of the leader’s message.
d) Demonstrates a reputation for ethical leadership among employees.
Ans: b
Difficulty: Medium
29. According to the Executive Ethical Leadership Reputation Matrix, ___________ is an

executive characterized as a weak “moral person” and a strong “moral manager.”
a) Unethical leader
b) Ethical leader
c) Ethically neutral leader
d) Hypocritical leader
Ans: d
Difficulty: Easy
30. According to the Executive Ethical Leadership Reputation Matrix, ___________ is an

executive characterized as a strong “moral person” and a strong “moral manager.”
a) Unethical leader
b) Ethical leader
c) Ethically neutral leader
Ans: b
Difficulty: Easy
31. ______ are symbolic figures who set standards of performance by modeling certain
behaviors, and they can be the organization’s formal leaders.
a) Heroes
b) First-line managers
c) Large investors in an organization
Ans: a
Difficulty: Easy
32. “The way we do things around here” addresses an organization’s
a) heroes.
b) rituals.
c) norms.
d) myths.
Ans: c
Difficulty: Medium
33. _____ tell people symbolically what the organization wants them to do and how it expects
them to do it.
a) Heroes
b) Myths
c) Norms
d) Rituals
Ans: d
Difficulty: Medium
34. When an organization “cares” about multiple stakeholders, including employees, customers,
and the broader community and public, it is said to have which of these?
a) Benevolence climate
b) Self-interest climate
c) Rule-based climate
d) Fairness climate
Ans: a
Difficulty: Medium
35. Under which of these climates little attention is given to the social consequences of one’s
actions?
a) Benevolence climate
b) Self-interest climate
c) Rule-based climate
d) Fairness climate
Ans: b
Difficulty: Medium
a) Any attempt to change an organization’s ethics must consider the entire cultural system.
b) A cultural system includes both formal and informal systems.
c) An effective culture change may take as long as 1 to 2 years.
d) New rules and values must be reinforced via training programs and reward systems.
Ans: c
Response: Culture changes are not short-term and may take as much as 6 to 15 years. See page
191.
Difficulty: Medium
Short Answer
37. Briefly describe what is meant by alignment of ethical culture. Provide an example of how
an ethical culture might be misaligned.
Ans: Students should be able to demonstrate that ethical culture consists of informal and formal
systems that must be sending the same message. Therefore, a reward system that focuses strictly
on the bottom line and makes no allowances for how a goal is met is misaligned with the
organization’s ethical culture.
Response: An ethical culture consists of both an informal and formal system of communication.
If messages from the informal and formal system differ, then the ethical culture of an
organization is out of alignment. For example, a CEO may state in speeches to the employees
that “our company cares about the environment.” However, if the reward system focuses strictly
on the bottom line and makes no allowances for how goals are met, the ethical culture is
misaligned.
38. Briefly describe and provide examples of three steps involved in changing an organization’s
culture.
Ans: Students should include steps related to diagnosis, implementation, and subsequent
evaluation.
Response: Changing an organization’s culture is a multi-dimensional process that must be taken
seriously. The major steps include a detailed diagnosis of the current culture, implementation of
the new plan, and evaluation after the plan is in motion. The implementation of the plan is
probably the most difficult step because it involves the “art” of changing the informal systems as
well as the informal systems.
File: Chapter 6, Managing Ethics and Legal Compliance
True/False
1. In 2004 Congress created the U.S. Sentencing Commission in response to criticism of

judicial discretion in sentencing and perceived disparities between sentences for “white-
collar” and other types of crimes.
Ans: False
Difficulty: Medium
2. Pursuant to the U. S. Sentencing Guidelines, an organization can be convicted even if only

one employee is caught breaking the law.
Ans.: True
Difficulty: Easy
3. An organization can be convicted of a crime even if only one employee breaks the law.
Ans: True
Difficulty: Medium
4. According to United States v. Booker, judges are no longer required to follow strictly the U.
S. Sentencing Guidelines.
Ans.: True
1
5. According to ethics and compliance officers, a respected and trusted insider who knows the
company’s culture and people is a preferable choice for a firm’s ethics or compliance officer.
Ans.: True
6. The job of ethics officer has been called “the newest profession in American business.”
Ans. True
Difficulty: Medium
7. Centralized ethics offices are nearly always the best choice as these provide for greater
consistency and commitment to the organization’s key values.
Ans.: False
Response: See page 214. Students will be tempted to say True. However, the culture of the
company and many other variables set out in pages 214-215 help students understand why this is
not the case.
8. Depending on the organization’s culture, the word “ethics” may carry a negative connotation
and need to be replaced with “business conduct.”
Ans: True
Difficulty: Medium
9. Seldom should ethics information be included in a company’s external website.
Ans. False
2
10. Research suggests that ethics only needs to be communicated in orientation materials for new
employees.
Ans: False
Difficulty: Easy
11. According to Peters and Waterman, an effective leader must be the master of two ends of the
spectrum: ideas at the highest level of abstraction and actions at the most mundane level of
detail.
Ans.: True
12. Command-and-control is a term frequently used to describe ethics initiatives that begin at the
top of the organization and work their way down, level by level.
Ans: False
Difficulty: Medium
13. Organizational experience suggests that an “ethics action line” is unnecessary because it
promotes “tattling” on people an employee doesn’t like.
Ans: False
Difficulty: Medium
14. An increase in the number of calls on the “ethics action line” is a sign that there are more
reportable problems in the company now.
Ans: False
Difficulty: Medium
3
Multiple Choice
15. The US Sentencing Guidelines use a “carrot and stick” approach to managing corporate
crime. What is meant by the use of “carrot” and “stick”?
a) The carrot dangles at the end of the stick as an incentive for organizations to continue to
behave ethically.
b) The carrot refers to the guidelines as “food for thought” and the stick refers to the punishment
if the guidelines are not followed.
c) The carrot refers to incentives in the guidelines to behave ethically and the stick refers to the
punishment if the guidelines are not followed.
d) None of the above.
Ans: c
16. Under the U. S. Sentencing Guidelines, the same crime can be subject to a wide range of
penalties. In determining the penalty, the following will be considered:
a. Prior violations
b. Whether management reports itself
c. Whether management cooperates with authorities
d. Whether the firm has an effective program in place to prevent and detect illegal behavior
e. All of the above
Ans.: e
Response: See Page 209.
17. Under the 2004 sentencing guidelines, the __________ are expected to oversee the
compliance and ethics program while __________ is/are charged with ensuring its
effectiveness within the company.
a) board of directors; top management

b) board of directors; the CEO
c) CEO; general managers
d) company’s ethics officer; board of directors
4
Ans: a
Difficulty: Medium
a) Fines applied by the US Sentencing Commission have decreased on average since 1990.
b) Only the presence of a code of ethics in the organization is necessary to meet the US
Sentencing Commission’s idea of an effective compliance program.
c) The US Sentencing Commission allows prosecutors to assess the quality of an organization’s
compliance program in order to determine appropriate penalties.
d) The 1987 sentencing guidelines mandated incarceration for only the worst felony offenders.
Ans: c
19. All of the following about Ethics Officer is true EXCEPT:
a) The ethics officer is typically a first-line to middle-level manager.

b) The ethics officer typically reports directly to the CEO.
c) The ethics officer can be hired from inside or outside of the firm.
d) The ethics officer can also be called the “director of ethics” or “director of internal audit.”
Ans: a
Difficulty: Medium
20. According to research, what percent of the information that passes through the grapevine is
accurate?
a) Between 10 to 30%
b) Between 30 to 50%
c) Between 50 to 70%
d) Between 70 to 90%
Ans: d
5
Difficulty: Medium
21. ___________ may have good ethical compasses, but they don’t know their corporation’s
policies. Without guidance, ethics may not even be a consideration.
a) Loose ammo
b) Loose cannons
c) Misguided cannons
d) Grenades
Ans: b
Difficulty: Easy
22. ___________ have their own agenda and lack any company or professional loyalty.
a) Deserters
b) Misguided cannons
c) Grenades
d) Toxic ammo
Ans: c
Difficulty: Easy
a) A mission statement describes “how we do business.”

b) Mission statements should be short and memorable.
c) Mission statements should be written by outsiders who are unbiased.
d) For some companies, mission statements are a mainstay of the corporate culture.
Ans: c
Difficulty: Medium
24. When communicating policies:
6
a) It is important to use legalese to demonstrate the formality of the document.
b) Eliminate the legalese and tell employees what the policy means.
c) Policies should be alphabetized to communicate that all policies are important.
d) Include policies from all departments so the manual is standardized.
Ans: b
Difficulty: Medium
25. When communicating a code of conduct:
a) Focus on values that should guide decision making.

b) Provide the same code of conduct to all departments regardless of its length.
c) Refrain from changing the code of conduct regularly.
d) Fewer employees will read the code if it is short.
Ans: a
Difficulty: Medium
26. Your friend, Jamira, has been selected to create a new ethics training program at work. What
advice should you give Jamira?
a) Ensure that all employees receive the same training content.

b) Focus on new employees only; the other employees already know this stuff.
c) Provide separate training depending on the needs of different groups of employees.
d) Bring in outside consultants to conduct the training.
Ans: c
Difficulty: Medium
27. ______ is a term frequently used to describe ethics initiatives that begin at the top of the
organization and work their way down, level by level.
a) Command-and-control
b) Cascading
c) Codes of conduct
d) Good soldiers
7
Ans: b
Difficulty: Medium
28. The __________ approach to formal corporate ethics initiatives is proactive and aspirational.
a) rules
b) compliance
c) competitive
d) values
Ans: d
Difficulty: Easy
29. The _________ approach to formal corporate ethics initiatives focuses on meeting required
behavior norms or obeying the letter of the law.
a) rules
b) compliance
c) principles
d) values
Ans: b
Difficulty: Easy
a) An effective approach to managing ethics has a compliance-only focus.

b) Abstract value statements can appear hypocritical to employees.
c) Strictly compliance-oriented programs are often viewed by employees with cynicism.
d) With a compliance-only focus, employees believe anything goes as long as there isn’t a rule
against it.
Ans: a
Difficulty: Medium
8
Short Answer
31. You are a top executive charged with evaluating the state of ethics communications in your
company. List four key questions you will need to ask as part of your evaluation. In
addition, provide an example that clarifies the meaning of each question.
Ans: (1) What kinds of ethical dilemmas are employees likely to encounter? (2) What don’t
employees know? (3) How are policies currently communicated? And (4) What communication
channels exist?
Difficulty: Medium
32. You are a top executive charged with developing a plan for the company’s formal
communication of ethics. Briefly describe three communication channels and an example of
how you would use each one.
Ans: Students can select from a variety of communication channels including recruiting
brochures, orientation materials, newsletters, magazines, company internet, and booklets.
Difficulty: Medium
9
File: Chapter 7, Managing for Ethical Conduct
True/False
1. In business, when people talk about ethics, they’re talking about behavior.
Ans: True
Difficulty: Easy
2. A statement such as “integrity is important here” is enough for subordinates to understand

expected behavior.
Ans: False
Difficulty: Easy
3. Generally, people take a single “ethical self” from situation to situation.
Ans: False
Difficulty: Medium
4. In combination with rewards, goal setting is one of the most powerful motivational tools.
Ans: True
Difficulty: Easy
5. Researchers have found that employees may be less likely to report ethical problems to
management if they are intently focused on achieving a task.
Ans.: True
Response: Page 257.
1
Difficulty: Medium
6. Workers have to be personally rewarded or punished for the message to have an impact.
Ans.: False
Response: Page 260.
Difficulty: Medium
7. Workers expect to be rewarded for behaviors that are expected of everyone—that is, for
doing the “right thing.”
Ans: False
Difficulty: Easy
8. Work roles can support either ethical or unethical behavior.
Ans: True
Difficulty: Easy
9. If punishment occurs in private, few employees will know that unethical behavior was
admonished; thus, managers should ensure that employees who behave unethically are
punished publicly so that others learn from the process.
Ans.: False
Response: Page 263.
Difficulty: Medium
10. Workers expect managers to discipline fairly, and they are morally outraged when
management doesn’t do its job.
Ans.: True
Response: Page 266.
Difficulty: Easy
2
11. Norms often arise to support behaviors that are implicitly rewarded.
Ans: True
Difficulty: Medium
12. Roles can support ethical behavior thus it makes sense to include in a Code of Conduct a
statement that calls for employees who see misconduct to report it.
Ans.: True
Response: Page 271.
Difficulty: Medium
13. People are much more likely to act ethically if they perceive themselves as personally
responsible for the outcomes of their decisions and actions.
Ans.: True
Response: Page 279.
Difficulty: Easy
14. When an employee brings up an ethical concern at work, the manager is obliged to take the
issues completely off the employee’s hands.
Ans: False
Difficulty: Medium
15. A decrease in levels in the organizational hierarchy leads to better lateral communication
among employees and makes it more difficult for employees to rationalize that higher-ups
were responsible.
Ans.: True
Response: Page 279-280
Difficulty: Medium
3
Matching

a) Integrity
b) Reinforcement theory
c) Social learning theory
d) Pygmalion effect
16. People are likely to behave in ways that are rewarded.
Ans: b
Difficulty: Easy
17. People generally live up to the expectations that are set for them—high or low.
Ans: d
Difficulty: Easy
18. That quality or state of being complete, whole, and undivided.
Ans: a
Difficulty: Easy
19. People learn from observing the rewards and punishments of others.
Ans: c
Difficulty: Easy
Multiple Choice
4
a) Attempting to achieve a task goal can decrease risky behavior.

b) Employees focus on what managers say more than what managers do.
c) Employees will not search for clues about what gets rewarded; they must be told by managers
that it is important.
d) Meeting a goal provides psychological benefits.
Ans: d
Difficulty: Medium
21. The Tailhook scandal represents an example of which of these?
a) Management focusing too much on the ends rather than the means
b) The ethical Pygmalion effect
c) Social learning theory
d) Employees ignoring management’s clear message
Ans: c
Difficulty: Medium
a) Rewards set the tone for what’s expected and rewarded in the long term.
b) Employees need to be rewarded for engaging in specific ethical behaviors.
c) Punishment is an inherently bad practice.
d) Rewards are better to control short-run ethical behavior.
Ans: a
Difficulty: Medium
a) The idea that punishment should be avoided is based on research on rats and small children.
5
b) People are less likely to engage in unethical behavior if it is likely to be detected and
punished.
c) Other employees are affected by the punishment of just one employee.
d) People do not care if violators of ethical conduct are punished.
Ans: d
Difficulty: Medium
24. Group norms can cause an “everyone is doing it” mentality. This means:
a) People are more likely to recognize issues as “ethical issues."

b) Many individuals will go along with unethical behavior because of a strong need for peer
acceptance.
c) Managers cannot blame individual employees for unethical behavior.
d) Employees are actively disengaged in groups.
Ans: b
Difficulty: Medium
25. The __________ experiment demonstrated how normal students accepted and acted on their
randomly assigned role of prisoner or guard.
a) Milgram
b) Manville
c) Zimbardo
d) My Lai
Ans: c
Difficulty: Easy
a) People enter organizations in a state of “role readiness.”

b) Roles reduce a person’s sense of individuality.
c) Managers do not have roles as much as their subordinates do.
d) Conflicting role expectations can cause increased incidences of lying.
6
Ans: c
Difficulty: Medium
27. The ___________ experiment demonstrated the power of legitimate authority. Teachers
were unwilling to question the experimenter’s authority for fear of personal embarrassment
or upsetting the status quo.
a) Milgram
b) Manville
c) Zimbardo
d) My Lai
Ans: a
Difficulty: Easy
28. The Zimbardo experiment provides insight into ___________ just as the Milgram experiment
provides insight into ____________.
a) My Lai massacre; Abu Ghraib prison scandal

b) Watergate scandal; My Lai massacre
c) Abu Ghraib prison scandal; McDonald’s case
d) My Lai massacre; Watergate scandal
Ans: c
29. Groupthink occurs when:
a) A group is working together in a cohesive, flowing manner for peak performance.

b) Group members know each other so well that they are able to anticipate each other’s ideas.
c) Group members conform to the group’s decision and are unwilling to express disagreement.
d) A group cannot make a decision because members are unwilling to compromise.
Ans: c
Difficulty: Easy
7
Short Answer
30. You are a manager in an electronics department that sells TVs. Corporate headquarters has
provided a new incentive to salespeople—they will receive higher commissions when they
sell higher priced TV models. What should you do in order to maintain high ethical integrity
in your department?
Ans: Students should discuss the importance of communicating that how a goal is achieved is
just as important as achieving the goal itself. The manager needs to let his or her workers know
that the organization cares about how the TVs are sold; he or she may also provide information
on the best way to sell the TVs.
31. As a manager, you are faced with the particularly daunting task of disciplining an employee.
You remember that punishment must be “fair.” Briefly describe what is expected of you in
order for the punishment is to be seen as “fair.”
Ans: Students should recognize that fairness has two components: (1) the punishment fits the
crime and (2) punishment is consistent across employees.
32. Briefly describe four ways in which diffusion of responsibility occurs in an organization.
Ans: Students should describe some variation of the following: (1) the manager tells the
employee to “don’t worry”; (2) decisions are made in a group; (3) individuals are just a “cog” in
a machine and can’t see the “big picture”; and (4) psychological distance from the victim
Difficulty: Medium
8
File: Chapter 8, Ethical Problems of Managers
True/False
1. In an organization, actively engaged employees help by keeping turnover and absenteeism

low, while promoting higher customer loyalty.
Ans.: True
Difficulty: Medium
2. According to research, the best way to encourage ethical behavior is to create an

organizational culture that is built to enhance employee engagement.
Ans: True
Difficulty: Easy
3. Unfortunately, given diverse activities that managers are responsible for, they play a limited
role in increasing employee engagement and building an ethical culture.
Ans: False
Difficulty: Easy
4. One of a manager’s most important responsibilities is to bring good people into the
organization.
Ans: True
Difficulty: Easy
5. Interestingly, according to a survey of executives, most respondents would rather lie to
employees about performance than confront them about performance problems.
Ans: True
Difficulty: Medium
6. Given that performance evaluations have little effect on employee performance, evaluating
employee performance once every 18 months is sufficient.
Ans.: False
Difficulty: Easy
7. Honest feedback is a two edge sword. Telling employees truthfully how they are performing
alienates the strong performers and has a negative effect on the organization’s culture.
Ans. False
Difficulty: Medium
8. Turkey farming is the fine art of placing poor performers alongside strong performers so that
the organization benefits.
Ans.: False
Difficulty: Medium
9. Discipline is important to ensure worker productivity, set standards of acceptable behaviors,

and meet the requirements of the U. S. Sentencing Guidelines.
Ans.: True
Difficulty: Medium
10. To make it easy to terminate a subordinate, ensure that you are being fair, that you deliver the
news in a way that is aligned with your organization’s values, and allow the employee to
maintain his personal dignity.
Ans.: True
Difficulty: Easy
11. Fortunately, those who survive company layoffs rarely exhibit negative behaviors (such as
decreased productivity or low morale).
Ans: False
Difficulty: Easy
12. Unfortunately, people do not want to believe that the world operates on the principles of
fairness.
Ans: False
Difficulty: Medium
13. The Equal Employment Opportunity Commission (EEOC) received more than 93,000
workplace discrimination complaints in 2011, and monetary relief for victims totaled more
than $376 million.
Ans.: False
14. Employees who perceive that they have been unfairly treated are less satisfied, less likely to
go the extra mile, and more likely to steal from the organization.
Ans.: True
Difficulty: Medium
15. Research finds that the intention of most dress codes is to restrict individuality and project
the company image.
Ans: False
Difficulty: Medium
16. Compliments are just that, compliments, and employees too sensitive to accept them should
receive sensitivity training.
Ans.: False
Difficulty: Easy
17. Managers earn their subordinates’ credibility and respect by setting clear standards,
deliberately communicating those standards, and insisting that all adhere to the standards.
Ans.: True
Difficulty: Medium
18. According to management experts, “Management by walking around” is passé in the Internet
age where managers can easily communicate with employees using technology.
Ans.: False
Difficulty: Medium
19. Framing business decisions in ethical terms goes a long way toward increasing moral
awareness, communicating your standards, and emphasizing the importance of ethical
behavior.
Ans.: True
Difficulty: Medium
20. If your manager asks you to betray your ethical standards, you should respond politely but
firmly that you will not compromise your standards.
Ans.: True
Difficulty: Easy
21. The best way to ensure that you are not going to be asked to compromise your values is to
clearly communicate what people can expect from you.
Ans: True
Difficulty: Medium
Matching
Reference: Types of Employee Engagement

a) Actively engaged
b) Not engaged
c) Actively disengaged
22. David is willing to put in his time at work, but he exhibits no passion or no energy for what
he does.
Ans: b
Difficulty: Easy
23. Lucy is passionate and enthusiastic about her work. She is eager to go the extra mile.
Ans: a
Difficulty: Easy
24. Don is sometime willing to go the “extra mile,” but generally comes to work to do what
needs to be done and to go home.
Ans: b
Difficulty: Easy
25. Jane frequently refuses to do work that “is not her job.”
Ans: c
Difficulty: Easy
Multiple Choice
26. Employee with an attitude of “it’s not my job” fits into which of these groups?
a) Actively engaged employees

b) Actively disengaged employees
c) Not engaged employees
d) Partially engaged employees
Ans: b
Difficulty: Medium
27. Sleewalking represents characteristic of which of these groups?
a) Actively engaged employees

b) Actively disengaged employees
c) Not engaged employees
d) Partially engaged employees
Ans: c
Difficulty: Medium
28. Which of the following is false about employee engagement?
a) Employee engagement is how committed employees are to their work.

b) Actively disengaged employees have lower turnover and absenteeism.
c) Actively disengaged employees cost the US economy billions each year.
d) Engaged employees are more productive.
Ans: b
Difficulty: Medium
29. According to James Shaffer, an expert in communication and employee engagement, all of
these are drivers of engagement EXCEPT:
a) mission statement.
b) involvement.
c) information sharing.
d) rewards and recognition.
Ans: a
Difficulty: Easy
30. This driver of engagement, __________, refers to the fact that employees should understand
the company’s strategic direction and how their individual efforts play a role in the
company’s revenue-generating enterprise.
a) line of sight
b) involvement
c) information sharing
d) rewards and recognition
Ans: a
Difficulty: Easy
31. Federal law prohibits discrimination against individuals with specific characteristics. Which
of the following characteristics is not on that list (i.e. not protected under Federal law)?
a) Religion
b) Gender
c) Pregnancy
d) Mental ability
Ans: d
32. As a manager of ABC Corporation, you are in a tough situation. You must send an employee
to work with your new client in Europe and Sam is clearly the most qualified candidate.
However, ABC Corporation is located in an area where several people of Sam’s race have
been violently attacked. You must choose to send Sam or Tonya. What should you do?
a) Automatically send Tonya to Europe without telling Sam he was considered.

b) Automatically send Sam to Europe because he is clearly the most qualified.
c) Ask Sam if he wants to go to Europe and discuss the situation.
d) Assign Sam to a new task and send the Tonya to Europe.
Ans: c
33. Continuous performance evaluation is categorized under which of the four drivers of
employee engagement?
a) Line of sight
b) Involvement
c) Information sharing
d) Rewards and recognition
Ans: d
Difficulty: Easy
34. Which of the following is not an effective way to discipline employees?

a) Discipline must be constructive and done in a professional manner.
b) Discipline should be done privately.
c) Employees should be encouraged to explain their side of the story.
d) Discipline should be consistent with what other employees at the same level or position
received.
Ans: d
Response: To be effective, discipline must be consistent across all levels of employees—from
top management to factory worker. See page 296.
Difficulty: Medium
35. You are a manager forced to layoff certain employees. What is the primary objective that
should guide your treatment of these individuals?
a) To make the process as quick and painless to the company as possible.

b) To ensure the grapevine is passing truthful information.
c) To ensure layoff survivors understand why they were not chosen.
d) To allow the terminated employee to maintain personal dignity.
Ans: d
Difficulty: Medium
36. One of the higher performing employees in your group has recently had family troubles.
These personal issues caused him to be less flexible with his work schedule. For example, he
has come in late some mornings and missed several late afternoon meetings. However, he
continues to be productive when he is at work. As his manager, what should you do?
a) Reprimand the employee and put him on notice immediately.

b) Ignore the situation because he is generally a high performer and the situation is temporary.
c) Institute flexible work hours for all employees in your group and arrange meetings when
everyone can be available.
d) At the next group meeting, make an example out of him and his unethical behavior to deter
other employees’ misbehavior.
Ans: c
Difficulty: Medium
37. Because of a family emergency, John was unable to complete a report for his boss. Instead,
he asks a coworker to finish it for him and in the morning, John tells his boss that he did the
report. Is there anything wrong with John’s action?
a) No, because John’s coworker only finished what John had started.
b) No, because John had a family emergency and his boss don’t need the details. The report is
done.
c) Yes, because John told a lie to his boss and put his reputation on the line.
d) Yes, because John is indebted to his coworker now.
Ans: c
Short Answer
38. List the four drivers of engagement and briefly describe each one.
Ans: Line of sight, involvement, information sharing, and rewards and recognition.
Difficulty: Medium
39. How does culture get “baked in” to an organization?
Ans: In this era of teams and empowered employees, it is more important than ever for managers
to spell out “what they stand for” and “how things get done around here.” Ethical standards have
to be demonstrated by the manager and enforced or employees will not believe them. It is what is
meant by “walking the talk.” Employees figure out what really matters to an organization by
observing manager behavior. See page 308.
File: Chapter 9, Corporate Social Responsibility
Fill in the Blank
1. Organizations are finding that in the area of Corporate Social Responsibility (CSR), it is
becoming increasingly difficult to separate _______ organizational ethics from ______ social
responsibility.
Ans.: internal; external

Difficulty: Medium
2. CalPERS, the California Public Employees’ Retirement System pressures the companies it
invests in to engage in good corporate governance and socially responsible practices in areas
such as ______ and ______.
Ans.: human rights; environmental responsibility

Response: See p. 335
3. The three reasons that corporations should care about social responsibility are ______,
______ and ________.
Ans.: pragmatic, ethical, strategic

4. The ________ reason for corporate social responsibility argues that businesses, as part of
society, have a responsibility to behave in the right way.
Ans: ethical
Difficulty: Easy
1
5. The __________ reason for CSR offers managers a stronger basis for making decisions about
which stakeholders and social responsibility issues should garner their attention and
resources given the multitude of options available.
Ans.: strategic
Difficulty: Medium
6. The late economist ________ said that management should “make as much money as
possible while conforming to the basic rules of society, both those embodied in the law and
those embodied in ethical custom.”
Ans.: Milton Friedman

7. ______ ______ ______ (3 words) are those shareholders who clearly care about the
financial and the social bottom line of a business.
Ans.: Socially responsible investors

Difficulty: Medium
8. _____, such as environmental damage, are costs to society that are produced by companies
but not reflected in the company’s cost structure.
Ans.: Externalities
Difficulty: Medium
True or False
9. An organization that does not fulfill its philanthropic responsibilities is acting unethically.
2
Ans: False
Response: Philanthropic responsibilities are considered to be voluntary or discretionary. See
page 327
Difficulty: Medium
10. Constructive engagement of stakeholders, including critics, is replacing the “just trust us”
plea of yesteryear as executives conclude that the plea rarely works in a world of regular
corporate scandals.
Ans.: True
Difficulty: Easy
11. According to Harvard Professor Michael Porter, the strategic reason for having CSR play a
prominent role in a firm is that in evaluating the firm’s CSR, executives should begin by
scrutinizing the social impacts of the company’s value chain.
Ans. True
Difficulty: Medium
12. The most strategic CSR initiatives are those that remove the social dimension from the firm’s
overall competitive strategy.
Ans.: False
Difficulty: Medium
13. The pragmatic approach is more proactive and affirmative than the strategic approach
because it asks companies to identify and acknowledge company activities that can do harm
and encourages firms to scrutinize their practices and address potential harms by focusing on
their own value-chain activities.
Ans.: False
3
14. Even if socially responsible business practices are costly, firms must perform them anyway.
Ans.: True
Difficulty: Medium
15. The economic responsibilities of a firm involve its primary function of producing goods and
services that consumers need and want, while making an acceptable profit.
Ans. True
Difficulty: Easy
16. A firm’s financial responsibility is primary and the bedrock of corporate social responsibility
because without financial viability, the other responsibilities become moot issues.
Ans.: True
Difficulty: Easy
17. The Social Investment Forum reported that socially responsible investing grew from $40
billion in 1984 to nearly $4 trillion in 2012.
Ans.: True
Difficulty: Medium
18. Since the passage of Sarbanes-Oxley few firms have been prosecuted and fewer high level
executives have received jail terms proving convincingly that the legislation is flawed.
Ans.: False
Difficulty: Medium
19. Section 404 of the Sarbanes-Oxley Act (SOX) is credited with improving internal financial
control systems in public companies even if the cost of doing so is thought to be exorbitant
by small firms.
4
Ans.: True
Response: See pages 338
Difficulty: Medium
20. Some analysts argue that the more stringent regulatory environment resulting in the post
Sarbanes-Oxley period increases shareholder confidence in financial reporting.
Ans.: True
Difficulty: Medium
21. Over the long run, to be successful, firms with excellent socially responsible strategies need
to worry less about their business strategies.
Ans. False
Difficulty: Medium
Multiple Choice
22. The ______ reason, why corporations should care about social responsibility, is based upon
the recognition that business must use its power responsibly in society or risk losing it.
Corporations exist as legal entities with certain advantages (such as limited liability) because
society allows them to do so, and these corporate rights and advantages can be removed from
firms that are perceived to be irresponsible.
a) pragmatic
b) economic
c) ethical
d) strategic
Ans.: a
Difficulty: Medium
5
23. In the __________ perspective, social responsibility is seen as appropriate because it is “the
right thing to do.”
a) pragmatic
b) economic
c) ethical
d) strategic
Ans: c
Difficulty: Medium
24. Corporate social responsibility (CSR) consists of which four kinds of responsibilities:
a) Economic, ethical, societal, and altruistic
b) Economic, legal, ethical, and altruistic
c) Fiscal, legal, societal, and philanthropic
d) Economic, legal, ethical, and philanthropic
Ans: d
Difficulty: Easy
25. According to the Corporate Social Responsibilities (CSR) pyramid, the __________
responsibility is considered to be of primary importance to organizations.
a) economic
b) ethical
c) legal
d) philanthropic
Ans: a
Difficulty: Medium
26. According to the Corporate Social Responsibilities (CSR) pyramid, the __________
responsibility is a societal expectation that is not necessarily codified into law.
a) economic
b) ethical
c) legal
d) philanthropic
6
Ans: b
Difficulty: Medium
27. The term __________ is sometimes used to represent harmony among three dimensions of
economic, social and environmental impacts.
a) philanthropic
b) ethics
c) bottom-line
d) sustainability
Ans.: d
Difficulty: Medium
28. Interface Carpets, a stellar example of sustainability in action, lists seven fronts of Mount
Sustainability. Which is NOT one of the firm’s goals to meet its total sustainability status?
a. Redesigning commerce
b. Sensitizing stakeholders
c. Using renewable energy
d. Ensuring benign emissions
e. Eliminating waste
f. Competing through cost
Ans.: f
Response: See page 333. Check out the firm’s website at www.interfaceglobal.com
29. Which of the items listed is NOT a product of a “favorable corporate reputation.”
a. Charge more for its products and services

b. Attract, Hire and keep higher quality applicants/employees
c. Enhance their access to better capital markets
d. Attract investors
e. Ignore the Foreign Corrupt Practices Act
Ans.: e
7
Difficulty: Medium
30. Typical Codes of Conduct cover conduct described below. In the aftermath of Bhopal, the
chemical industry wishing to demonstrate responsible corporate citizenship has added which
additional behaviors set out below.
a. Legal compliance
b. Continuous improvement, communication with external stakeholders and training of
suppliers on the standards
c. Community awareness and emergency response
d. Pollution prevention
e. Safe distribution of chemicals in transit
f. Employee health and safety
g. Safe handling of chemicals from manufacture through disposal
Ans.: b
Short Essay
31. Referring to the Corporate Social Responsibility (CSR) pyramid, how do legal
responsibilities differ from ethical responsibilities? Provide specific examples to support
your distinction.
Ans: Legal responsibilities refer to carrying out work in accordance with the law and government
regulations. However, because not every societal expectation has been codified into law, ethical
responsibilities refer to a more general responsibility of doing what’s right and avoiding harm.
For example, government regulations may only require an auto manufacturer to meet a specific
emissions test (i.e. legal responsibility). However, recognizing the importance of avoiding
harmful gases, an auto manufacturer may voluntarily set a higher standard for its products (i.e.
ethical responsibility).
Difficulty: Medium
32. Discuss the pro and cons for a firm of discussing its philanthropic activities internally and
externally.
8
Difficulty: Medium
9
File: Chapter 10, Ethical Problems of Organizations
Matching

a) Stakeholders
b) Primary stakeholder
c) Secondary stakeholder
1. Owners, customers, and employees.
Ans: b
Difficulty: Easy
2. Individuals who have an interest/claim in what the organization does or how it performs.
Ans: a
Difficulty: Easy
3. Opinion formers, community, and authorities.
Ans: c
Difficulty: Easy
Reference: Matching Key Stakeholders and Regulatory Agencies

a) Guard rights of shareholders
b) Guard rights of consumers
c) Guard rights of employees
d) Guard rights of the community
1
4. Occupational Safety and Health Administration (OSHA)
Ans: c
Difficulty: Easy
5. The Federal Trade Commission
Ans: b
Difficulty: Easy
6. The Federal Reserve Board
Ans: a
Difficulty: Easy
7. The Environmental Protection Agency (EPA)
Ans: d
Difficulty: Easy
8. The Federal Communication Commission (FCC)
Ans: b
Difficulty: Easy
True/False
2
9. At the turn of the last century, consumers didn’t even have the right to sue a manufacturer for
a defective product.
Ans: True
Difficulty: Easy
10. One of the most common faults in ethical decision making is to ignore the long-term
consequences of a decision.
Ans: True
Difficulty: Medium
11. It’s clear that the system for advertising drugs and bringing them to market poses huge
ethical issues for the drug companies, many of which have been admired for their ethical
reputations.
Ans: True
Difficulty: Medium
12. Because stakeholders’ interests frequently do not overlap, an organization is able to focus on
one stakeholder at a time.
Ans: False
Difficulty: Easy
13. Only since Enron’s collapse have ethicists and business professionals really been concerned
about the increasing focus on “short-term” earnings.
Ans: False
Difficulty: Medium
3
14. The real proportion of wrong-doers is probably quite small.
Ans: True
Difficulty: Easy
15. Ethical disasters in corporations often start as small issues and it is either denial or
mismanagement that causes seemingly minor situations to mushroom into huge legal, ethical,
and public relations nightmares.
Ans.: True
Difficulty: Medium
16. Conflicts involving organizations are more damaging than those who involve individuals.
Ans. True
Difficulty: Easy
17. The definition of conflict for an organization is similar to that for an individual ; that is, if a
stakeholder thinks that an organization’s judgment is biased because of a relationship it has
with another firm, a conflict could exist.
Ans.: True
Difficulty: Easy
18. Despite Johnson & Johnson’s best efforts to respond to its customers by pulling Tylenol off
shelves, the product has never regained its market share.
Ans.: False
Difficulty: Medium
4
19. Toyota, like Johnson & Johnson, halted production in response to its concerns for its
customers.
Ans. False
Difficulty: Medium
20. In ethical decision-making and particularly in cases dealing with product safety, firms are
best served when they consider the long-term consequences of a decision.
Ans.: True
Difficulty: Medium
21. The pharmaceutical industry has found that advertising directly to the consumer minimizes
problems experienced earlier with consumers regarding their confidence in products.
Ans.: False
Multiple Choice
22. Which of these is not a secondary stakeholder?
a) Opinion formers
b) Community
c) Authorities
d) Employees
Ans: d
Difficulty: Easy
23. Which of these is not a primary stakeholder?
a) Owners
b) Community
5
c) Customers
d) Employees
Ans: b
Difficulty: Easy
24. The idea that consumers have the right to safety, right to be heard, right to choose, and right
to be informed came from ____________ in ________.
a) Theodore Roosevelt; 1930.

b) The Food and Drug Act; 1906.
c) John F. Kennedy; 1962.
d) George W. Bush; 2004.
Ans: c
Difficulty: Medium
25. In this example of a conflict of interest, ________ conducted a series of off-the-books

partnerships that were used to hide the organization’s debt and inflate its stock price. The
partnerships were managed by the company’s executives who stood to profit the most from
the transactions.
a) Merrill Lynch
b) Enron
c) Citicorp
d) Adelphia
Ans: b
Difficulty: Medium
26. In a classic example of failing to protect its employees, ___________ knew asbestos caused
cancer as early as 1930. However, the company lied to its employees and used several tactics
to cover-up the product’s effects.
a) Johnson & Johnson

b) A.H. Robbins
c) Manville Corporation
d) McWane, Inc.
6
Ans: c
Difficulty: Medium
27. In this classic example of a company treating its employees responsibly, ____________ was
the first company to offer company-paid vacations, stock ownership plans, employee
suggestion program, and the guaranteed employment plan. This company has not laid off
employees in the United States since 1948.
a) McWane, Inc.
b) Lincoln Electric
c) Scott Paper Company
d) Manville Corporation
Ans: b
Difficulty: Medium
28. In a 2012 survey, _____ were in a dead heat as the least trusted institutions in the U.S., and
public confidence in them could be measured in single digits.
a) lawyers and accountants
b) CEOs and Board of directors
c) Wall Street and Congress
d) White House and Congress
Ans: c
Difficulty: Medium
29. Organizations have many ethical obligations to their employees including
a. right to privacy, right to a safe workplace, right to promotional opportunities

b. right to privacy, right to a safe workplace, right to freedom of speech
c. right to a safe workplace, right to freedom of speech, right to promotional opportunities
d. right to a safe workplace, right to freedom of speech, right to three weeks vacation
e. right to fair treatment, right of privacy, right to c-level opportunities if they earned their MBA
Ans.: b
7
Difficulté: Difficult
30. For the public, the top three factors in corporate reputation are :
a. transparent and honest practices, trustworthiness, and high-quality products and services
b. transparent and honest practices, community philanthropy, and high quality products and
services
c. trustworthiness, high-quality products, and a no-layoff policy
d. trustworthiness, high-quality products, and a 90-day customer return policy
Ans.: a
Difficulty : Medium
31. The due care theory involves at least the elements set out below.
a. products and services meet all government regulations and specifications

b. ability to return the product if dissatisfied for any reason
c. products should be inspected regularly for quality
d. manufacturers should institute a system to recall products that prove dangerous after
distribution
e. a & b
f. a, c, & d
g. all of the above
Ans.: f
Short Answer
32. Companies face a myriad of stakeholders that often have conflicting interests. Briefly
describe a company or an incident that demonstrates how stakeholders’ conflicting interests
can lead to unethical behavior.
Ans: For example, students may describe how shareholders and stock analysts demand strong
performance and can punish a company severely who does not meet these expectations. On the
other hand, to meet the shareholder’s expectations, a company may need to sacrifice other
stakeholders’ rights (such as product safety, truth in advertising, etc.).
8
Response: see pages 353-355
9
File: Chapter 11, Managing for Ethics and Social Responsibility in a Global Environment
True/False
1. Because of the expatriate manager’s and the manager’s family’s inability to adjust to the
foreign work environment, many overseas assignments end early and unsuccessfully.
Ans.: True
Difficulty: Easy
2. The term emotional intelligence (EQ) has been used to describe an individual’s ability to be
effective in cross-cultural situations.
Ans.: False
Difficulty: Medium
3. Spouses of high level expatriate managers generally serve in a corporate “ambassador” role.
Ans: True
Difficulty: Easy
4. Unfortunately, fluency in a foreign language assists with verbal communication, but helps
little in understanding the culture.
Ans: False
Difficulty: Medium
5. Because of the cultural differences in Asia and Latin America, “help lines” are more
effective when they are oriented more toward reporting misconduct.
1
Ans. False
6. Given the larger distance, workers in a culture of high power distance are more willing to
question the boss’s authority or even blow the whistle on an unethical manager.
Ans.: False
Difficulty: Medium
7. Visitors to another culture will notice things that are important at home but that may not be
important in the target culture.
Ans: True
Difficulty: Easy
8. Research suggests that if we understand how people think and behave in their native
environment, we will understand how a particular group will behave in relation to cultural
outsiders.
Ans: False
Difficulty: Medium
9. Behavior is difficult to predict because people adapt their behaviors to what they believe
others expect of them.
Ans.: True
Difficulty: Easy
2
10. Research finds that successful international business persons are inflexible when it comes to
cultural aspects with little or no tolerance for ambiguity.
Ans.: False
Response: See page 405. Characteristics of successful international business persons are open,
flexible, and tolerant of ambiguity.
11. If a company official is abducted by Somali pirates and held for ransom, the Foreign Corrupt
Practices act (FCPA) calls for the company to forego negotiating for the employee’s release
and to not pay a ransom.
Ans. False
12. Although bribes are an accepted part of commercial transactions in many Asian, African,
Latin American, and Middle Eastern countries, it is usually against the law in these very
same countries.
Ans: True
Difficulty: Medium
13. The additional cost of corruption to international projects is less than 5% on average making
it practical to include corruption as a cost of doing business.
Ans. False
Difficulty: Medium
14. In its Bribe Payers Index (BPI) of 2008, Transparency International (TI) cited Russia, China,
Mexico, and India for having particularly high levels of perceived bribery.
Ans. False
3
15. Interestingly, ethical issues are universal and do not vary from culture to culture.
Ans: False
Difficulty: Easy
16. The Golden Rule (“do unto others as you would have them do unto you”) appears in the
teachings of every major world religion.
Ans: True
Difficulty: Easy
17. Justice and fairness are universal human values. Therefore, specific beliefs and preferences
about what is a fair allocation are also universally interdependent.
Ans: False
Difficulty: Medium
18. A country’s sociopolitical environment increases the number of ethical questions with a
company must deal.
Ans: True
Difficulty: Medium
19. Unfortunately, corporate citizenship has no influences on consumers buying habits.
Ans.: False
Difficulty: Medium
4
20. According to researchers at Harvard, in developing their firm’s codes of conduct,
multinational firms would be wise to stick with the eight principles identified by their
research as the core of global standards of conduct and to not deviate or supplement the
principles with values unique to their respective firms.
Ans.: False
Difficulty: Medium
Multiple Choices
21. Civil society refers to:
a) Countries with a certain type of governance structure.

b) Groups interested in business ethics (such as the media, not-for-profit organizations, academic
institutions, and religious and political groups).
c) Government agencies in foreign countries.
d) Countries that share the same culture, customs, and norms.
Ans: b
Difficulty: Medium
a) Organizations are affected by the expatriate manager’s ability to adjust to the new setting.
b) Organizations are not affected by the expatriate family’s ability to adjust to the new setting.
c) Foreign language proficiency is more important for non-English speakers in English-speaking
countries.
d) Cross-cultural training can help an expatriate manager better adjust to the new culture.
Ans: b
Difficulty: Easy
23. Which of the following is false about culture?
a) Culture can be defined as “collective mental programming.”
5
b) Culture represents different patterns of believing.
c) Culture is used to interpret the world.
d) Cultures new to an individual will impact his/her interpretation of experience.
Ans: d
Difficulty: Medium
24. ___________ defines themselves in terms of their group memberships and their contributions
to the success of those groups.
a) Individualists
b) Collectivists
c) High power distance
d) Low power distance
Ans: b
Difficulty: Easy
25. ____________ reflects acceptance of inequality and respect for social status or class
boundaries.
a) Individualism
b) Collectivism
c) High power distance
d) Low power distance
Ans: c
Difficulty: Easy
26. Which of the following is an example of a high power distance country?
a) India
b) United States
c) Israel
d) None of the above
Ans: a
6
Difficulty: Medium
27. The “psychic distance paradox” causes performance failures because:
a) Negotiators who are working in a similar culture to their own perceive the two cultures as
being significantly different.
b) When doing business in cultures that are perceived to be similar, managers prepare less and do
not realize the cultures are actually quite different.
c) Expatriate managers are unable to connect with the local culture after moving from a similar
culture.
d) Managers do not understand the culture’s behavior despite language proficiency.
Ans: b
Difficulty: Medium
28. When dealing with an individual from a different culture,
a) Negotiators generally adapt their negotiation behavior to that of the negotiation partner.
b) American negotiators are the most flexible to their negotiation partner’s behavior.
c) Canadian and Japanese negotiators are the least flexible to their negotiation partner’s behavior.
d) Negotiators generally do not adapt their negotiation behavior to that of the negotiation partner.
Ans: a
Difficulty: Medium
29. Which of the following is true about collectivists? Collectivists tend to
a) prefer mediation because it involves compromise.

b) prefer adjudication because it is perceived to be fairer.
c) prefer direct manifestations of conflict.
d) avoid psychological warfare.
Ans: a
Difficulty: Medium
7
30. Which of the following is legal according to the Foreign Corrupt Practices Act (FCPA)
passed in 1977?
a) Payments to high ranking government officials

b) Grease payments to lower-level government officials
c) Bribes to political parties
d) Kickbacks to win overseas contracts
Ans: b
Difficulty: Easy
31. According to the 2012 Corruption Perception Index (CPI), which country would be the least
corrupt?
a) United States
b) Haiti
c) Bangladesh
d) New Zealand
Ans: d
Difficulty: Medium
32. “When in Rome, do as Romans do” is an example of:
a) Ethical imperialism
b) Ethical relativism
c) Cultural imperialism
d) Corporate relativism
Ans: b
Difficulty: Medium
33. ____________ assumes absolute truths that would require exactly the same standard and
behavior in every culture.
a) Ethical imperialism
8
b) Ethical relativism
c) Cultural imperialism
d) Cultural relativism
Ans: a
Difficulty: Easy
34. Social Accountability International developed a standard called Social Accountability 8000
(SA 8000) to help organizations in workplace conditions including but not limited to
a. Child labor
b. Forced labor
c. Health and safety
d. Discrimination
e. All of the above
Ans.: e
Difficulty: Medium
35. Of the following statements about the Organization for Economic Cooperation and
Development (OECD) Anti-Bribery Convention (the “Convention”) which are untrue.
a. Participating countries include countries in Western Europe and North America

b. The Convention requires signatories to make it a crime to bribe foreign public officials
c. The Convention includes the application of criminal penalties
d. The Convention bans gifts to political parties
e. The Convention outlaws tax deductibility for bribes
f. All are statements are true
g. Statements d and e are untrue
Ans.: g
Short Answer
9
36. Reebok Corporation has made human rights a hallmark of its corporate strategy, culture, and
identity. Briefly describe at least two of the ways in which the company addresses
international human rights issues.
Ans: For example, students should be able to describe Reebok’s policy for children labor (i.e.
children are still paid but go to school instead), its membership to the Fair Labor Association (i.e.
provides external auditors), or its commitment to help factories that are not meeting Reebok’s
Code requirements come up to standards.
Difficulty: Medium
10

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File: Chapter 1, Introducing Straight Talk about Managing Business Ethics: Where we’re Going

8. By ignoring the topic of ethical behavior, an organization may actually be encouraging

9. It is unethical for managers to “control” employees’ ethical behavior through direct

11. Which of these is Adam Smith’s first book?

a) borrowing was expensive

16. Ethical behavior can be influenced by:

17. Which of the following statements is true?

19. Definition of ethics—“the principles, norms, and standards of conduct governing an

20. According to the authors, ethical behavior is defined as:

a) a set of moral principles or values that guide an individual

a) individual; these factors are the main determinant of unethical behavior

a) Honest company communications

2. A challenge involved in using a strictly consequentialist approach is that it is often difficult to

3. The consequentialist approach protects the rights of the minority.

4. Business managers generally rely on the consequentialist approach.

5. A major challenge of deontological approaches is deciding which duty, obligation, right, or

8. Ethical dilemmas represent conflicts in values.

13. An appearance of a conflict of interest can be as damaging as an actual conflict.

15. It is good advice to go with your gut.

17. Utilitarianism is the best known example of a consequential theory.

23. The prescriptive approach is to ____________ as the descriptive approach is to

24. ______ is probably the best-known consequentialist theory.

a) utilitarian; virtue follower

a) Define the ethical issues

a) Define the ethical issues

34. Focuses on the integrity of the moral actor.

35. The______________ approach best known as consequentialist theory is Utilitarianism.

38. Focuses on the results or consequences of the decision or action.

Ans: See page 50

9. Ethical conflict is almost exclusively influenced by individual differences.

10. In Kohlberg’s theory, adherence to any principle qualifies as “principled” thinking.

Reference: Matching Kohlberg’s Levels of Moral Reasoning

16. Focused on interpersonal trust and social approval.

17. Focused on avoiding punishment.

19. “You scratch my back, I’ll scratch yours.”

Reference: Matching Key Terms and Definitions

22. Unconscious distortion of information in order to maintain a positive self-image.

24. Tendency to overestimate the likelihood of good future events.

a) if they believe that their peers will consider it to be ethically problematic.

a) Every time they encounter a more difficult ethical dilemma.

28. Which of the following is false?

a) Conventional; based on avoidance of punishment.

32. Which of the following is false?

a) Moral reasoning can be increased through training.

a) high internal locus of control

35. Which of the following is true?

38. Which of the following is true?

Reference: Matching Ethical Type to Example

2. Discriminating against an employee.

3. A product is unsafe for human consumption.

4. Providing a personal reference on corporate letterhead.

6. Honestly representing a product in a sales pitch.

7. Keeping a customer’s information private.

8. Sending personal mail through the company mail room.

a. Human resources issues

a) reciprocity, equality, and impartiality

26. Which of the following is true?

a) Discrimination is an intentional bias that affects behavior.

a) Quid pro quo