Question 1: One of most common fraudulent activities reported by employees about their coworkers is

• lowering quality standards to cut costs.
• discriminating in the hiring process.
• using dishonest messages in advertising campaigns.
• claiming to have worked extra hours.
• giving bribes to foreign officials.

Question 2: Which of the following statements is true about codes of conduct?

• Codes are mostly standardized throughout all industries.
• Codes are informal ideals about organizational expectations.
• Few organizations have written ethical guidelines.
• Codes are designed to resolve every ethical dilemma a company may face.
• Codes are formal statements describing organizational expectations.

Question 3: What does the Family and Medical Leave Act of 1993 (FMLA) require of certain employers?

• Provide 12 weeks of paid leave to an employee with a special family or medical circumstance.
• Allow employees up to a year of unpaid leave to attend to a family medical emergency without the loss of their jobs.
• Provide all employees with 10 weeks of job-protected leave for certain family and medical emergencies.
• Provide up to 12 weeks of unpaid, job-protected leave to eligible employees for certain family and medical reasons.
• Provide 12 weeks of leave at 50 percent of the employee's normal salary for a family or medical reason.

Question 4: Which of the following is not likely to be a benefit from an ethics training program?

• To educate employees about the firm's ethical policies and expectations
• To empower employees to ask tough questions and make ethical decisions
• To ensure that employees' personal values are in line with those of the organization
• To make employees aware of available resources
• To demonstrate the importance the organization places on ethics

Question 5: What is the psychological contract between an employee and his or her employer?

• Terms of employment, including the salary and benefits, associated with an employee's position
• The employee's perception about how the company should treat him or her
• Beliefs, perceptions, expectations, and obligations that comprise an agreement between individuals and their organizations
• Formal contract between individuals and their employer that details the beliefs and obligations of both parties
• Contract an employee signs to verify that he or she is of sound mind to serve in the capacity outlined by his or her job title

Question 6: According to the National Business Ethics Survey, ____ is a primary reason that employees do not report misconduct.

• the fear of retaliation
• a concern about safety regulations
• having poor personal moral values
• the absence of an ethics hotline
• a lack of interest

Question 7: What is the main purpose of the Occupational Safety and Health Administration?

• To conduct surprise inspections of businesses to see what laws they are violating
• To oversee the regulations intended to ensure safe and healthy working conditions for all employees
• To help employees seek restitution if they have suffered as a result of poor working conditions
• To threaten all companies with the possibility of fines and other punishment if any employees are injured or killed
• To improve the overall quality of the workforce in the United States and to increase global competitiveness

Question 8: Because it can be difficult to draw a boundary between some legal and ethical issues in the workplace, it is important to

• realize that ethical issues rarely become so important that they reach the courtroom for resolution.
• recognize that the most cost-effective way to resolve disputes is through the court system.
• have an organizational mechanism for resolving all questionable issues.
• ensure that legal issues brought by stakeholders outside of the organization are resolved within the organization.
• develop a code of conduct to cover every possible issue.

Question 9: Despite business concerns about the costs of regulations, the benefits include all of the following except

• safer workplaces.
• safer products.
• fewer consumer complaints.
• equality in the workplace.
• a cleaner natural environment.

Question 10: If a consumer staged an accident in a store and then sought damages against the store for its poor safety standards, this customer has committed which fraudulent activity?

• Shoplifting
• Guile
• Duplicity
• Collusion
• Product misuse

Question 11: What concept governed employment up until the early 1900s?

• Master-servant
• Employment at will
• Vesting
• FLSA
• Labor unions

Question 12: One of the most effective methods of ethics training is

• getting employees involved in resolving ethical dilemmas that relate to actual situations in the workplace.
• providing a video of the ethics officer.
• testing employees on the code of conduct.
• discussing cognitive moral development.
• providing a CD-ROM of material for employees to view on their own.

Question 13: Which of the following examples best aligns a company's competencies and strategic goals with philanthropic activity?

• A local gas station has a program in which its employees are partnered with disadvantaged youths as mentors.
• Ben and Jerry's Homemade ice cream company donates a percentage of its pretax profits to support peace initiatives.
• The local telephone company donates money to the Youth Soccer Foundation to help pay for the upkeep of soccer fields and equipment.
• A hair salon donates one dollar of every haircut to support the local food bank's annual holiday food drive.
• Merck uses its pharmaceutical expertise to develop a drug to combat river blindness and donates millions of doses to poor countries.

Question 14: What does cause-related marketing do?

• Links corporate resources and knowledge to address broader social, customer, employee, and supplier problems and needs
• Ties an organization's product or service directly to a social concern
• Provides an opportunity to associate a company's name and brands to a particular sports event
• Consists of purposeful marketing that provides consumers with needed product information
• Creates a link between an environmental cause and the company as a whole

Question 15: Consumers can best be described as

• those individuals who purchase many different products throughout their lives.
• customers of any given organization.
• every firm's most important stakeholder.
• those individuals who purchase, use, and dispose of products for personal and household use.
• those groups who purchase products from manufacturers and then improve the products and sell them to others.

Question 16: In what industry did Upton Sinclair expose atrocities, inhumane labor practices, and unsanitary conditions in his novel, The Jungle, which led the public to demand reform?

• Automobile
• Soft drink
• Textile
• Meatpacking
• Pharmaceutical

Question 17: The process of working to persuade public and/or government officials to favor a particular position in decision making is known as

• special-interest pleading.
• bribery.
• lobbying.
• influencing.
• PAC.

Question 18: Conflicts of interest exist when employees must choose whether to

• advance their own interests, those of the organization, or those of some other group.
• advance the interests of the organization or those of society.
• accept bribes.
• carry out an assignment they perceive as unethical.
• report an unethical coworker.

Question 19: Which of the following provides the best description of the community stakeholder for an organization?

• The community to be concerned with is the immediate neighborhood where most of the organization's patrons live and work.
• The entire city in which the organization operates will be affected by the organization, and therefore this defines the community stakeholder.
• The entire county in which the organization is located is the community stakeholder because the impact of the organization reaches beyond the city to the entire county.
• The community aspect of the stakeholder model includes the entire region in which the company operates.
• The community includes those members of society who are aware of, concerned by, or in some way affected by the operations and outputs of the organization.

Question 20: Which of the following is not one of the elements of Texas Instruments' Ethics Quick Test?

• Is the action legal?
• Does it comply with our values?
• If you do it, will you feel bad?
• How will it look in the newspapers?
• What will your coworkers think?

Question 21: What experiences effectively ended the loyalty and commitment-based contract that employees had developed with employers?

• Employers took steps to cut costs through workforce reduction as the demands for global competitiveness increased.
• Employers began to say that employees were not that valuable to the company's success.
• Employees' desire for job security changed, and they no longer had a psychological need for security.
• Employers began to offer work-life balance perks to lure talented workers away from their current employers, and loyalty suffered.
• Employers felt that employees were not living up to the conditions of their psychological contracts.

Question 22: Which of the following most closely describes the relationship between consumers and businesses?

• They are fundamentally connected by an economic relationship that often leads to deeper attachment.
• All consumers are closely affiliated with the ethical principles the companies they buy from represent.
• The relationships between consumers and businesses are purely economic in nature through the exchange of value.
• There really is no relationship between businesses and consumers.
• "Let the buyer beware" describes the power that businesses now have over consumers.

Question 23: What impact have information services and the Internet had on consumers and businesses?

• They have shifted the balance of power between consumers and businesses because consumers are able to compare prices, read independent rankings, and obtain greater product knowledge.
• The Internet and other information services have not had a substantial impact on consumers and businesses.
• The balance of power between consumers and businesses has remained the same because businesses have obtained greater access to information about their competitors.
• Greater information services and the Internet have shifted power back to businesses since they can now obtain more information about their customers.
• Laws and regulations represent the influence businesses have on consumers and vice versa - whether or not information is more readily available does not impact the laws governing consumers' rights.

Question 24: Why did McDonald's start displaying warning signs that its coffee is hot after the famous lawsuit?

• As a friendly reminder to customers that coffee is in fact hot
• As a form of advertising that the coffee at McDonald's is always fresh
• To try to eliminate further injury and product liability
• Because the government ordered that these signs be posted
• So that customers would not think McDonald's was serving iced coffee

Question 25: Which government agency enforces regulations designed to protect the public from unreasonable risk of injury from consumer products?

• Federal Anti-Injury Institute
• Consumer Product Safety Commission
• Consumer Information Bureau
• Deceptive Trade Practices Commission
• Privacy Protection Agency

Question 26: To whom should consumers turn first when exercising their right to seek redress?

• Federal Trade Commission
• Local Better Business Bureau
• Seller of the product/service
• Their attorney
• Consumer Protection Agency

Question 27: Lying by omission involves intentionally

• withholding material facts.
• creating "noise" within the communication that knowingly confuses or deceives the receiver.
• using highly technical language that the receiver does not understand.
• trying to not hurt someone's feelings.
• telling "white lies."

Question 28: Which of the following best describes ethics?

• Rules about how one should act in a business situation
• Balancing the ever-changing and complex needs of society with the desire for profit
• Choices and judgments about acceptable standards of conduct that guide the behavior of individuals and groups
• Guidelines that a company provides its employees with to ensure that they will act in the best interest of society
• Beliefs held by all people

Question 29: The Consumers Union tests products in its own laboratories and studies, then communicates the results

• in Good Housekeeping magazine.
• to manufacturers, who choose whether to publish the findings.
• to state and federal regulatory agencies.
• in Consumer Reports magazine.
• via weekly e-mail reports.

Question 30: The organizational function dedicated to building and maintaining relationships and trust with the community is known as
the social activity department.

• the marketing department.
• customer service.
• community relations.
• stakeholder management group.