20 MCQ'S

1.  Which of the following would most likely involve ethical concerns?
A. Overstating an expense report.
B. Forecasting sales for the next year.
C. Developing the marketing plan for the next year.
D. Improving working conditions.

2.  Jake recently invested in a Hottie Potatee franchised business that serves potatoes with all the trimmings. The business needs lots of employees in order to operate effectively. He told you that if he calls the business once each day and tells the employees that he is on his way there, they will be on their best behavior. As he tells it, “It’s okay if I really don’t make it there, after all, I’m the owner and the business should be able to run without micromanagement.” As a recent student of business ethics, you remind Jake that:
A. he should post a code of ethics that stipulates how each employee should work and how each employee should treat the customers.
B. he should create a survey for customers to respond to, and then he will always know if his employees are productive.
C. employees usually take-on the behavior of their leaders. If integrity is not important to the owner, it may not be important to employees.
D. “No good deed goes unpunished.” Even though he may think he is doing a good thing, his employees will not appreciate the fact that he is working very hard on his business, off-site. Their expectations are that he should be there, working side by side with them.

3.  A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.
A. legal
B. corporate responsibility
C. compliance
D. integrity

4.  Which of the following terms describes someone who reports illegal or unethical behavior?
A. whistleblower
B. horn blower
C. watch tower sentinel
D. integrity watchdog

1.  A(n) ________-based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability among employees.
A. social
B. corporate responsibility
C. compliance
D. integrity

2.  To improve America’s business ethics:
A. Congress must pass an ethics bill.
B. ethics must be taught in every business school around the globe.
C. a company’s suppliers must be thoroughly investigated for ethical violations.
D. company leaders should adopt and support a corporate code of ethics.

3.  After developing a code of ethics, it should be communicated to:
A. everyone with whom the business has dealings.
B. the Attorney General in jurisdictions where the business has operations.
C. all levels of management.
D. stockholders.

4.  Which of the following is a characteristic of an effective ethics officer?
A. (S)he has a background in human resource management.
B. (S)he is exceptionally organized.
C. (S)he has a capacity to serve as a counselor and an investigator.
D. (S)he communicates primarily via email.

1.  Compliance based ethics codes typically:
A. rely on laws and regulations outside the firm for guidance.
B. have a strong affinity for shared accountability among employees.
C. promote a “do-it-right” climate.
D. enable responsible employee conduct.
Compliance-based ethics codes prevent unlawful behavior by increasing control and by penalizing wrongdoers.

2.  What is the benefit of employing an ethics officer?
A. This professional serves as a law-enforcement officer, with the authority to arrest employees who do not abide by the ethics code.
B. This individual writes the ethics code and keeps this document current. He has sole authority to change the document as he sees fit.
C. This professional has the responsibility to make certain that the ethics code remains a private company document; however, since the position has very little authority, it becomes a token job with high turnover.
D. This individual’s job is dedicated to objectively investigating ethics breaches. If necessary, employees feel comfortable with communicating confidentially to this professional.

3.  While speaking with his sales force, the director of sales explains, “Anyone caught violating a sales law will be fired.” After studying business ethics, you recognize this remark as a reference to the firm’s __________ ethics.
A. technology-based
B. personal responsibility-based
C. compliance-based
D. integrity-based

4.  In an effort to promote the importance of a valuable education, the faculty and staff at the local community college are trained to ask each student about their career preferences, rather than suggest courses that may not benefit the student’s future goals. Although it would be tempting to suggest courses just to increase the College’s enrollment, employees know that it is more important to serve each student well, even if it means suggesting courses and/or degrees offered at other institutions. This approach is consistent with:
A. an integrity-based ethics code.
B. a compliance-based ethics code.
C. a response to a government mandate.
D. a personal responsibility commitment.

1.  A phone call to a government official by an employee of the Enron Corporation disclosed the deception and dishonesty of the firm’s accounting records. This employee played the role of a:
A. whistleblower.
B. horn blower.
C. cheerleader.
D. moral policeman.

2.  Zach spent several months developing a good relationship with a business client. The client is now buying a significant amount of product from Zach’s company, resulting in high commissions for Zach, personally. After checking the sales records for the past six months, Ben (a sales colleague of Zach’s) started visiting the same client in the hopes of capturing some of the client’s business too. Although he considers it “legal and fair game”, sales reps in his firm have begun to avoid him because they consider it a violation of:
A. company-based ethics.
B. compliance-based ethics.
C. integrity-based ethics.
D. whistle blowing-based ethics.

3.  John was recently hired by Backstreet Books, an eclectic bookstore in a large college town. At the beginning of the first day on the job, his store manager handed him a small booklet consisting of company rules. He was asked to read it and sign and submit the last page, before starting work. Among other things, the rules explicitly discussed reprimands for grievous behavior and dismissal if the firm could prove that the employee was stealing product from the store. This booklet represented the ___________ of the store.
A. company-based ethics
B. compliance-based ethics
C. integrity-based ethics
D. whistle blowing-based ethics

4.  Corporate social responsibility describes the firm’s:
A. exclusive responsibility to its stockholders.
B. ability to plan for the unexpected.
C. commitment to a management training program.
D. concern for the welfare of society.

1.  All else held equal, socially responsible firms:
A. are viewed more favorably by consumers.
B. enjoy significantly higher profits.
C. often experience customer loyalty problems.
D. fail to earn sufficient profits for their owners.

2.  We describe charitable donations by corporations to nonprofit organizations as __________.
A. corporate philanthropy
B. corporate responsibility
C. corporate strategy
D. structural commitment

3.  The position a firm takes on issues that affect the corporation as well as society is known as its:
A. political philanthropy.
B. corporate policy.
C. target posturing.
D. structural positioning.

4.  In recent years, progressive firms have embarked upon ____________, where they will commit company resources and expertise toward helping-out in emergency type situations.
A. corporate philanthropy
B. corporate social activism
C. social civility
D. corporate social initiatives

 

 
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