When developing an ethical culture, there has to be



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.


statement of mission




2 points 


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.

2 points


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.

2 points 


1. A cultural audit may be used to identify

how cultured a firm’s employees are.

unethical employees

unethical organizations

an organization’s culture

organizational structure

2 points


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

2 points


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.

coercive power

group power

legitimate power

expert power

democratic power

2 points


1. _____ bring together the functional expertise of employees from several different areas of the organization on a single project.

Quality circles

Informal groups


Work groups


2 points


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

2 points


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

2 points 


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.

individual goals.

2 points


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.

2 points


1. _____ are formal statements that describe what an organization expects of its employees in terms of ethical behavior.

Mission statements

Codes of conduct

Policies on confidentiality

Environmental policies

The Federal Sentencing Guidelines for Organizations

2 points


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.

2 points


1. Which of the following is the most comprehensive?

Code of values.

Code of conduct.

Code of ethics.

Statement of values.

Statement of principles

2 points 


1. The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually

improve their ethics programs.

eliminate misconduct.

fail to install a Federal Sentencing Guidelines program.

fail to report ethics program activities.

tolerate misconduct.

2 points


1. Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting?

Sarbanes-Oxley Act

Robinson Patman Act

Ethics Officer Responsibility Act

Sherman Antitrust Act

Enron Financial Responsibility Act

2 points


1. Individuals, often from the same department, who band together for purposes that may or may not be relevant to the organization are called

Quality circles

informal groups


work groups


2 points


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

legitimate power

expert power

reward power

contingent punishment power

non contingent reward behavior

2 points


1. To motivate employees, an organization offers _____ to _____ employees to work toward organizational objectives.

punishment; force

peer pressure; guilt

incentives; encourage

rewards; bribe

threats; frighten

2 points


1. Which of the following cultures combines high levels of concern for people and performance?

Apathetic culture

Caring culture

Integrative culture

Exacting culture

Cooperative culture

2 points


1. Ethical concerns in centralized structures can occur because of very little


upward communication         


downward communication

communication rigidity

2 points


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

2 points 


1. All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except

observation of employees

internal audits



reporting systems

2 points


1. Most executives feel that which of the following is the primary reason for much of the unchecked misconduct in business?

Bad employees

An inattentive board of directors

Customer pressures

Financial performance pressures

inadequate ethics and compliance programs

2 points 


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.




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