PART 1

Question 1 : Both individual ethics and organizational ethics have an impact on an employee's

productivity.
personal happiness.
compensation.
fitness level.
ethical intention.

Question 2 : Which of the following is not a form of retaliation commonly experienced by whistle-blowers?

Relocation or reassignment
No promotion or raises
The cold shoulder by coworkers
Exclusion from work activities
Praise by supervisors for their honesty

Question 3 : 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.

Question 4 : The ability to influence the behavior of others by offering them something desirable is best described as

coercive power.
reward power.
expert power.
legitimate power.
referent power.

Question 5 : The exacting organizational culture is interested in

performance but has little concern for employees.
investors' impressions of profitability.
maintaining a strong corporate culture.
employees and performance.
employees' impressions

Question 6 : The ________ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control.

democratic
coaching
affiliative
coercive
pacesetting

Question 7 : To motivate employees, an organization offers ________ to ________ employees to work toward organizational objectives.

punishment; force
peer pressure; guilt
incentives; encourage
rewards; bribe
threats; frighten

Question 8 : 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.

Question 9 : The ultimate "stick" associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company's ethical compliance efforts, and

reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct.
installation of an ethics hotline.
payment of any penalties levied.
appointment of an appropriate high-level manager to oversee the company's program.
divestiture of all assets.

Question 10 : Organizational ________ can contribute to diminished employee trust and increased employee turnover.

leadership succession
compensation policies
ethics programs
rules
misconduct

Question 11 : Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct?

Conduct orientation
Values orientation
Coercive orientation
Obedience orientation
Compliance orientation

Question 12 : In the absence of ethics programs, employees are likely to make decisions based on

their observations of how their coworkers and superiors behave.
how they and their family members behave at home.
their conscience.
their religious values.
their family values

Question 13 : 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

Question 14 : For an ethical compliance program to properly function,

consistent enforcement and disciplinary action are essential.
employees must be monitored using any means necessary.
it is not necessary to set measurable program objectives.
the same program should be used in all countries of operation, regardless of cultural differences.
the company must wait until after misconduct occurs to develop a means of preventing

Question 15 : In the long run, a(n) ________ orientation may be better for companies, perhaps because it increases employees' awareness of ethics issues at work.

code
obedience
compliance
values
individual

Question 16 : A(n) ________ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) ________ orientation strives to develop shared standards.

obedience; values
compliance; values
legal; values
values; compliance
values; obedience

Question 17 : Which of the following is probably the best way for a manager to provide good ethics leadership?

Hire an ethics officer
Write a code of conduct
Conduct ethics audits
Set a good example
Only hire good employees

Question 18 : ________ is an independent assessment of the quality, accuracy, and completeness of a company's social or ethics report.

Publication
Verification
Auditing
Analysis
Validation

Question 19 : Which of the following does not have a significant impact on the success of an ethics program?

Senior management's ability to successfully incorporate ethics into the organization
The quality of communication
The size of the company
The content of the company's code of ethics
The frequency of communication regarding the ethical code and program

Question 20 : Retaliation against employees that report misconduct is a problem in ________ cultures.

weak ethical
strong ethical
high power distance
diverse
international

Question 21 : Ethics audits can help companies identify potential ________ so they can implement plans to eliminate or reduce them before they reach crisis dimensions.

competitive advantages
risks and liabilities
productivity issues
technological glitches
market opportunities

Question 22 : Which of the following is not a benefit of ethics auditing?

It can improve a firm's performance and effectiveness.
It can increase a firm's attractiveness to investors.
It can identify potential risks.
It can harm relationships with stakeholders.
It can reduce the risks associated with misconduct.

Question 23 : Which of the following is not a step in the ethics auditing process?

Secure commitment of top executives and directors.
Review organizational mission, goals, values and policies, and define ethical priorities.
Report the results to the U.S. Sentencing Commission.
Collect and analyze relevant information.
Verify the results.

Question 24 : What should be the first step in the auditing process?

Secure the commitment of top executives and directors
Define the scope of the audit
Establish a committee to oversee the audit
Collect and analyze data
Review organizational mission, goals, values, and policies

Question 25 : _______ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization's success.

Customers
Employees
Special interest groups
Competitors
Legislators

PART 2

Question 1 : The ________ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations.

International Monetary Fund
United Nations
World Trade Organization
North American Free Trade Act
European Union

Question 2 : Who argued during the 1930s that the state could stimulate economic growth and improve stability in the private sector?

Adam Smith
John Maynard Keynes
Milton Friedman
Herbert Hoover
Geert Hofstede

Question 3 : Risk compartmentalization occurs when

companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically.
all profit centers within a corporation are aware of the code of ethics.
all profit centers within an organization become aware of the consequences of competitors' actions.
various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.
ethics and compliance programs reduce the risk of misconduct

Question 4 : The growth of the Internet and differing security laws between countries has led to an increase in concern for the human right of

religion.
a secure job.
healthcare.
privacy.
freedom of speech

Question 5 : When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating
are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad. This practice is called

self-reference criterion.
country cultural values.
consumerism.
cultural relativism.
dumping

Question 6 : ________ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the "invisible hand."

Consumerism
Cultural relativism
Social democracy
Laissez-fair
Bimodal wealth distribution

Question 7 : Which of the following has the power to enact legally binding ground rules for international commerce and trade policy?

Global Sullivan Principles
World Trade Organization
Global Sullivan Organization
Federal Trade Commission

Global Commerce Association

Question 8 : ________ involves transactions across national boundaries. It is a practice that brings together people who have different cultures, values, laws, and ethical standards.

Global business
Country cultural values
Social democracy
Cultural relativism
Bimodal wealth distribution

Question 9 : ________ is a two-way process in which the communicator communicates with superiors and subordinates.

Cooperation
Transparency
Leader-follower congruence
Reporting
Collaboration

Question 10 : Which type of leader relies on participation and teamwork to reach collaborative decisions?

Transformational
Coercive
Democratic
Coaching
Pacesetting

Question 11 : Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking?

Authoritative leadership
Coaching leadership
Pacesetting leadership
Coercive leadership
Affiliative leadership

Question 12 : ________ and reporting are two major dimensions of ethical communication.

Collaboration
Transparency
Recognition
Listening
Compromising

Question 13 : ________ are a primary influence on employee's ethical behavior because they are role models for the organization's values.

Friends
Parents
Peers
Coworkers
Leaders

Question 14 : These leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders.

Transactional
Compromising
Transformational
quantitative
Authentic

Question 15 : ________ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree.

Group polarization
Leader-follower congruence
Groupthink
Competition
Conflict

Question 16 : ________ leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders.

Authentic
Coaching
Transformational
Transactional
Pacesetter

Question 17 : Although limiting urban sprawl creates disadvantages for ________, many businesses can benefit from urban renewal movements that reduce sprawl.

car and oil companies
the airline industry
the railroad industry
service oriented companies
humans and animals

Question 18 : Which industry invests the most in alternative clean energy sources?

The automobile industry
The clothing industry
The airline industry
The federal government
The oil and gas industry

Question 19 : The Clean Air Act:

Allowed the EPA to track industrial chemicals
Focuses on promoting alternative forms of energy
Established national air quality standards
Provides tax benefits to consumers who purchase hybrid cars
Focuses on reducing pollution through cost-effective change

Question 20 : Which option includes the assessment and improvement of business strategies, economic ectors, work practices, technologies, and lifestyles while maintaining the natural environment?

Competitive advantage
Marketing
Sustainability
Greenwashing
Risk analysis

Question 21 : Geothermal energy provides ________ and is a more dependable energy source than some other forms of alternative energy.

heat from the sun
a radiated heat
heat from steam
a constant source of heat
a dry heat

Question 22 : Stakeholder assessment is an important part of a ________approach to environmental issues.

low-commitment
medium-commitment
high-commitment
hands-off
hands-on

Question 23 : All of these are ways of reducing pollution, except:

Designing environmentally friendly buildings
Recycling
Greenwashing
Source reduction
Sustainable agriculture

Question 24 : The ________ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use.

Pollution Prevention Act
Toxic Substances Control Act
Clean Air Act
Energy Policy Act
Oil Pollution Act

Question 25 : The Clean Water Act makes it illegal for anyone to discharge any pollutant from a point source directly into navigable waters without a .

good reason
direct order
permit
inspector present