1.) Usually an
ethical dilemma can be resolved with a satisfactory answer to the problem.
TRUE
FALSE
2.) The first step
in resolving an ethical dilemma is to analyze the consequences.
TRUE
FALSE
3.) Due to
aggressive competitors, Joe Smith feels pressured to lie to an important
customer to keep the customer. He feels they will never discover the truth.
With this ethical dilemma, the first thing Joe must do is analyze the actions
without thinking about consequences.
TRUE
FALSE
4.) The final step
in solving an ethical dilemma is to evaluate the results of your decision.
TRUE
FALSE
5.) Arthur Dobrin
identified 15 questions you should consider when resolving an ethical dilemma.
TRUE
FALSE
6.) The process of
ethical reasoning involves looking at the available information and then
drawing conclusions based on that information in relation to our own ethical standards.
TRUE
FALSE
7.) Preconventional
is the lowest level of Lawrence Kohlberg’s stages of ethical reasoning.
TRUE
FALSE
8.) The first stage
of Lawrence Kohlberg’s stages of ethical reasoning is preconventional.
TRUE
FALSE
9.) The third stage
of Kohlberg’s stages of ethical reasoning is law and order.
TRUE
FALSE
10.) In the third
stage of Kohlberg’s stages of ethical reasoning, a person is focused on meeting
the expectations of friends and coworkers and how something will affect their
life.
TRUE
FALSE
11.) Because of the
Sarbanes-Oxley Act, today, when employees are asked to do something that
conflicts with their own personal values, seldom is the guidance from companies
a series of clichés.
TRUE
FALSE
12.) “Do what’s
legal” is an ethical cliché.
TRUE
FALSE
13.) Over the last
four decades, corporate ethics has remained in the organizational mainstream.
TRUE
FALSE
14.) In resolving a
truth versus loyalty dilemma, you must decide whether the decision will have
short-term or long-term consequences.
TRUE
FALSE
15.) In resolving a
justice versus mercy dilemma, you must answer whether you perceive the issue as
a question of dispensing justice or mercy.
TRUE
FALSE
16.) An ethical
dilemma is a situation in which there is a “right” versus
“right” answer.
TRUE
FALSE
17.) Once you have
reached a decision as to the type of conflict you are facing, the three
resolution principles are: ends-based, rules-based, and the Golden Rule.
TRUE
FALSE
18.) If you utilize
the rules-based resolution principle, you would consider which decision would
provide the greatest good for the greatest number of people.
TRUE
FALSE
19.) If you utilize
the Golden Rule resolution principle, you would utilize the principle: do unto
others as you would have them do unto you.
TRUE
FALSE
20.) Andrew Young’s
statement, “Nothing is illegal if a hundred businessmen decide to do
it” is one of the commonly held rationalizations that can lead to misconduct.
TRUE
FALSE
21.) The accounting
function is the certification of an organization’s financial statements as being
accurate.
TRUE
FALSE
22.) Internal auditors
provide counsel for improving controls, processes and procedures, performance,
and risk management.
TRUE
FALSE
23.) The accounting
profession is governed by a set of laws and established legal precedents.
TRUE
FALSE
24.) GAAP are accepted
principles utilized as standard operating procedures within the industry.
TRUE
FALSE
25.) GAAP, like any
operating standard, are open to interpretation and abuse.
TRUE
FALSE
26.) Corporations try
to manage their expansion at a steady rate of growth.
TRUE
FALSE
27.) When corporations
grow too quickly or steadily from year to year, investors may see them as in
danger of falling behind their competition.
TRUE
FALSE
28.) It is legal to
defer receipts from one quarter to the next to manage your tax liability.
TRUE
FALSE
29.) A set of accurate
financial statements that present an organization as financially stable,
operationally efficient, and positioned for strong future growth can do a great
deal to enhance the reputation and goodwill of an organization.
TRUE
FALSE
30.) When a company’s
financial statements have been certified by an objective third party to be
“clean,” that certification is meant to be for the company’s benefit.
TRUE
FALSE
31.) A situation where
one relationship or obligation places you in direct conflict with an existing
relationship or obligation refers to value chain interest.
TRUE
FALSE
32.) Ethical CSR is
the purest or most legitimate type of CSR in which organizations pursue a
clearly defined sense of social conscience in managing their financial
responsibilities to shareholders, their legal responsibilities to their local
community and society as a whole, and their ethical responsibilities to do the
right thing for all their stakeholders.
TRUE
FALSE
33.) Ethical CSR is the
purest or most legitimate type of CSR.
TRUE
FALSE
34.) Altruistic CSR is
a philanthropic approach to CSR, in which organizations underwrite specific
initiatives to give back to the company’s local community or to designated
national or international programs.
TRUE
FALSE
35.) Economic CSR is
the purest or most legitimate type of CSR.
TRUE
FALSE
36.) Altruistic CSR
takes a philanthropic approach by giving back to the local community or to
designated national or international programs.
TRUE
FALSE
37.) When Home Depot
announced a direct cash donation of $1.5 million to support the relief and
rebuilding efforts in areas devastated by Hurricane Katrina, this is an example
of Economic CSR.
TRUE
FALSE
38.) When an
organization uses strategic CSR, it faces the smallest risk of being perceived
as using self-serving behavior.
TRUE
FALSE
39.) Strategic CSR
targets programs that will generate the most positive publicity or goodwill for
the organization.
TRUE
FALSE
40.) In contrast to
the alleged immorality of altruistic CSR, critics argue that strategic CSR is
ethically commendable since these initiatives benefit stakeholders while
meeting fiduciary obligations to the company’s shareholders.
TRUE
FALSE
41.) One question in
Salmon’s 22-question checklist includes: Is there one outside director for
every insider?
TRUE
FALSE
42.) Simply having the
mechanisms in place will, in itself, guarantee good governance.
TRUE
FALSE
43.) Enron maintained
an audit committee consisting exclusively of nonexecutives.
TRUE
FALSE
44.) Enron maintained
an audit committee consisting exclusively of nonexecutives, and the independent
directors were not affiliated with organizations that benefited directly from
Enron’s operations.
TRUE
FALSE
45.) A fiduciary
responsibility is ultimately based on trust.
TRUE
FALSE
46.) A fiduciary
responsibility is not a difficult trait to test when you are hiring a manager
or enforcing, once that manager is in place.
TRUE
FALSE
47.) The base fine
will normally be the greatest of: the monetary gain to the organization from
the offense, the monetary loss from the offense caused by the organization to
the extent the loss was caused knowingly, intentionally, or recklessly, or the
amount determined by a judge based upon an FSGO table.
TRUE
FALSE
48.) The culpability
score of the FSGO is the calculation of the degree of blame or guilt used as a
multiplier of up to four times the base fine.
TRUE
FALSE
49.) One of the
factors that can increase a culpability score is an organization’s effective
program to prevent and detect violations of law.
TRUE
FALSE
50.) One of the factors
that can increase a culpability score is that an organization willfully
obstructed justice.
TRUE
FALSE
51.) In certain cases,
a judge has the discretion to impose a “death penalty,” where the
fine is set high enough to match all the organization’s assets.
TRUE
FALSE
52.) In certain cases,
a judge has the discretion to impose a “death penalty;” when this is
warranted the organization was operating primarily for a criminal purpose.
TRUE
FALSE
53.) Delegation of
substantial discretionary authority is one step the FSGO prescribes to
organizations in order to create an effective compliance program that minimizes
its culpability score.
TRUE
FALSE
54.) The FSGO has
prescribed ten steps for an effective compliance program.
TRUE
FALSE
55.) The first step of
an effective compliance program, as prescribed by the FSGO, is management
oversight.
TRUE
FALSE
56.) The three
modifications to the guidelines to change corporate compliance programs are:
requiring companies to periodically evaluate the effectiveness of their
compliance programs, requiring evidence of actively promoting ethical conduct
rather than just complying with legal obligations, and defining accountability
more clearly.
TRUE
FALSE
57.) The
Sarbanes-Oxley Act contains four sections, or title, and almost 30 subsections
covering every aspect of the financial management of businesses.
TRUE
FALSE
58.) The
Sarbanes-Oxley Act is a legislative response to the corporate accounting
scandals and covers the financial management of businesses.
TRUE
FALSE
59.) The creation of
the PCAOB as an independent oversight body was an attempt to reestablish the
perceived independence of auditing companies that faced serious questioning
after several corporate scandals.
TRUE
FALSE
60.) The
Sarbanes-Oxley Act helps an organization create an ethical corporate culture.
TRUE
FALSE
61.) Prior to 2002,
legal protection for whistleblowers did not exist.
TRUE
FALSE
62.) Since the
Sarbanes-Oxley Act of 2002, Congress has taken an integrated approach to the
matter of whistle-blowing by prohibiting retaliation against whistleblowers and
by encouraging the act of whistle-blowing itself.
TRUE
FALSE
63.) The
Sarbanes-Oxley Act of 2002 requires public companies not only to adopt a code
of business ethics, but also to set up an internal apparatus to receive,
review, and solicit employee reports concerning fraud and/or ethical
violations.
TRUE
FALSE
64.) Employees who
prevail in whistle-blower cases are entitled to damages, which include double
their back pay.
TRUE
FALSE
65.) A whistleblower
hotline can only be successful if trust exists between employees and their
employer.
TRUE
FALSE
66.) Companies should
be prompt and provide a thorough investigation of all complaints in today’s
legal environment.
TRUE
FALSE
67.) If the
investigation is perceived to be half-hearted or there is even the remotest
suggestion of a cover-up, then the hotline will definitely never ring again.
TRUE
FALSE
68.) In today’s
environment, experts highly recommended that becoming a whistleblower and
taking your story public should be a first resort.
TRUE
FALSE
69.) After blowing the
whistle on fraud, 90 percent of the whistle-blowers were fired or demoted.
TR(E
FALSE
70.) After blowing the
whistle on fraud, most of the whistle-blowers said they wouldn’t blow the
whistle again.
TRUE
FALSE
71.) If an employee
receives formal notification that the company will monitor all e-mail and Web
activity, and that notification makes clear that his/her continued employment
with the company depends on the employee’s agreement to abide by that
monitoring, then the employee has given thick consent.
TRUE
FALSE
72.) When jobs are
plentiful and an employee would have no difficulty finding another position,
then the consent given to the monitoring policy is thin consent.
TRUE
FALSE
73.) Though employees
may resent the availability of technology that allows employers to monitor
every key stroke on their computers, it is often the documents written on their
machines that do the most harm.
TRUE
FALSE
74.) Parties charged
with vicarious liability are generally in a supervisory role over the person or
parties personally responsible for the injury or damage.
TRUE
FALSE
75.) Implied liability
is a legal concept that a party may be held responsible for injury or damage,
even if that party was not actively involved in the incident.
TRUE
FALSE
76.) Cyber-liability
applies to the existing legal concept of liability to a new world—computers.
TRUE
FALSE
77.) There are many
parallels between George Orwell’s novel, 1984, and the current debate over the
right to privacy in the workplace.
TRUE
FALSE
78.) The liability
argument and the recent availability of capable technology may be driving this
move towards an Orwellian work environment.
TRUE
FALSE
79.) “Thou shalt
not use a computer to monitor employees” is one of the ten commandments of
computer ethics.
TRUE
FALSE
80.) “Contribute
to the host country’s development” and “Respect the human rights of
your employees” are two of the guidelines for organizations offered by
Richard DeGeorge.
TRUE
FALSE
81.) Richard
DeGeorge’s guidelines present something of an ethical ideal that reveal some of
the most severe transgressions which have brought negative attention to the
ethical behavior of MNCs.
TRUE
FALSE
82.) In the pursuit of
profit and continued expansion, MNCs have been guilty of bribery, pollution,
false advertising, and questionable product quality.
TRUE
FALSE
83.) At this time, only
a handful of global companies are large enough to have a dramatic impact on
trade levels just with their own internal transactions.
TRUE
FALSE
1/100
84.) Enforcing ethical
behavior, once it crosses national boundaries, becomes extremely difficult.
TRUE
FALSE
85.) Enforcing a
global ethical standard would require the United Nations to set acceptable standards
of behavior and appropriate consequences for failing to abide by those
standards.
TRUE
FALSE
86.) In 1999 the UN
Global Compact became operational.
TRUE
FALSE
87.) The UN Global
Compact is a voluntary corporate citizenship initiative endorsing 10 key
principles that focus on four key areas of concern: the environment,
anticorruption, the welfare of workers around the world, and global human rights.
TRUE
FALSE
88.) The UN Global
Compact is a voluntary corporate citizenship initiative endorsing 12 key
principles that focus on five key areas of concern.
TRUE
FALSE
89.) The Global
Compact is a regulatory instrument, which is relied upon to police, enforce,
and measure the behavior or actions of companies.
TRUE
FALSE
90.) Global
Citizenship represents a commitment to promote good corporate citizenship, with
a focus on four key areas.
TRUE
FALSE
91.) An ethics policy
commits a company to doing the right thing for all of its stakeholders; so a
company must share that message with all of its stakeholders.
TRUE
FALSE
92.) In order to build
a reputation of trust and commitment to customers, a company should seldom
share the message of doing the right thing for all of its stakeholders with some
of its stakeholders outside the company.
TRUE
FALSE
93.) Any organization’s
commitment to ethical performance must be watched constantly
TRUE
FALSE
94.) The continued
growth of technology will present new situations for ethical dilemmas.
TRUE
FALSE
95.) Typically, it is
difficult for the code of ethics to become taken for granted, so other business
issues normally do not to take priority over the code.
TRUE
FALSE
96.) Smaller companies
need to include their code of ethics as part of any strategic planning exercise
to make sure it is as up to date as possible.
TRUE
FALSE
97.) Many
organizations have been prompted to introduce or modify their code of ethics
after witnessing other CEOs public embarrassment.
TRUE
FALSE
98.) A transparent
organization tends to avoid open and honest communication with all
stakeholders.
TRUE
FALSE
99.) True ethical
policies are proactive when the company develops a clear sense of what it
stands for as an ethical organization, the extent of the actions it will take
to get there, and what ethics means to that company and its stakeholders.
TRUE
FALSE
100.) The student of
ethics who has gotten this far deserves much praise!
TRUE
FALSE
