1. When developing an ethical culture, there has to be a(n)_______element because every organization has employees that will try to take advantage if there is an opportunity for misconduct.
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statement of mission
1. The apathetic organizational culture exhibits
high concern for people but minimal concern for performance.
little concern for people but a high concern for performance.
minimal concern for people and performance
high concern for people and performance.
no concern for maintaining a cohesive organizational culture.
1. Which of the following statements about corporate culture is false?
Corporate culture refers to the patterns and rules that govern the behavior of an organization and its employees, particularly the shared values, beliefs, and customs.
The values and ethical beliefs that actually guide a firm’s employees tend not to be the same ones that management states as defining the firm’s culture.
Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in an organization.
The culture of an organization may be explicitly stated or unspoken.
Failure to monitor or manage an organization’s culture may foster unethical behavior.
1. A cultural audit may be used to identify
how cultured a firm’s employees are.
an organization’s culture
1. The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary concern about these new incentives is:
they will encourage too many employees to attempt to blow the whistle on firms, even those that have done nothing wrong
people do not generally respond at all to monetary incentives
whistle-blowers might be tempted to report to the SEC with their reports and not report the misconduct to the company’s internal compliance program.
people may exaggerate their claims in order to get a reward.
the funds paid out to whistle-blower might bankrupt companies
1. Marcus is the top-performing development director his non-profit organization has ever had. He possesses countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have _____ over new development department staff.
1. _____ bring together the functional expertise of employees from several different areas of the organization on a single project.
1. In order for whistle-blowing to be effective,
financial compensation must be very high
employees must wish ill on the organization for which they work.
lawmakers must make an effort to force employees to discuss details about the misconduct.
it requires that the individual have adequate knowledge of wrongdoing that could damage society.
it must occur at a very large multinational corporation
1. Which of the following statements about group norms is false?
Group norms define the limit on deviation from group expectations
Group norms have the power to force a strong degree of conformity among group members
Management must carefully monitor the norms of all the various groups within the organization, as well as the organization’s corporate culture
Sanctions may be necessary to bring in line a group whose norms deviate sharply from the overall culture
Group norms never conflict with the overall organization’s culture
1. Motivation is defined as
a person’s incentive or drive to work
a force within the individual that focuses his or her behavior on achieving a goal.
personal ambition without regard to the impact on others
a desire to be finished with a project.
1. A strong ethics program includes all of the following elements except
a clause promising good stock market performance.
a written code of conduct or ethics.
formal ethics training.
auditing, monitoring, enforcement, and revision of standards.
an ethics officer to oversee the program.
1. _____ are formal statements that describe what an organization expects of its employees in terms of ethical behavior.
Codes of conduct
Policies on confidentiality
The Federal Sentencing Guidelines for Organizations
1. What is not a common mistake when designing and implementing an ethics program?
Failing to fully understand the goals of the program.
Not setting realistic or measurable goals.
Having top management take ownership of the ethics program.
Developing materials that do not address the needs of the average employee.
Transferring a program between countries and cultures without making adjustments.
1. Which of the following is the most comprehensive?
Code of values.
Code of conduct.
Code of ethics.
Statement of values.
Statement of principles
1. The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually
improve their ethics programs.
fail to install a Federal Sentencing Guidelines program.
fail to report ethics program activities.
1. Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting?
Robinson Patman Act
Ethics Officer Responsibility Act
Sherman Antitrust Act
Enron Financial Responsibility Act
1. Individuals, often from the same department, who band together for purposes that may or may not be relevant to the organization are called
1. When a foreman orders an assembly-line employee to carry out a task, which the employee perceives as unethical yet the employee feels compelled to complete, the foreman is exercising
contingent punishment power
non contingent reward behavior
1. To motivate employees, an organization offers _____ to _____ employees to work toward organizational objectives.
peer pressure; guilt
1. Which of the following cultures combines high levels of concern for people and performance?
1. Ethical concerns in centralized structures can occur because of very little
1. A code of ethics that does not address specific high-risk activities within the scope of daily activities is
acceptable as long as individual values prevent misconduct
acceptable according to the Federal Sentencing Guidelines for Organizations
1. All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except
observation of employees
1. Most executives feel that which of the following is the primary reason for much of the unchecked misconduct in business?
An inattentive board of directors
Financial performance pressures
inadequate ethics and compliance programs
1. Which of the following is an advantage of a values-based ethics program over a compliance-based one?
Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency
Diverse employees have differing values.
It requires employees to identify with and commit to specific required conduct.
A values orientation uses legal terms, statutes, and contracts that teach employees the rules and penalties for noncompliance.
Values and compliance programs both take basically the same approach.