The Organization and the People in It

Your textbook, Moral Issues in Business, Eleventh Edition, by William H. Shaw and Vincent Barry.

1. The Sarbanes-Oxley Act of 2002 offers legal protection for employees who report _______ to the SEC.
A. sexual harassment
B. kickbacks and bribes
C. securities fraud
D. environmental violations

2. If a job supervisor makes a person's employment conditional on granting sexual favors to the supervisor, the situation is called
A. offensive personal conduct.
B. hostile work environment.
C. quid pro quo sexual harassment.
D. comparable worth discrimination.

3. In a corporate campaign, a union enlists the assistance of a company's _______ to pressure the company into negotiations over labor concerns.
A. creditors
B. suppliers
C. customers
D. advertisers

4. Jamison Brothers Concrete wants to land a contract with Owens Construction to become the primary supplier of concrete for a shopping mall project. Todd Jamison gets together with Martina Owens, and a deal is struck. Jamison will get the contract. However, for every invoice remittance to Jamison, five percent of the amount due will be deposited in a safety deposit box at Martina's bank, in cash. If Martina agrees to this inducement, she will be accepting a(n)
A. bribe.
B. insider trade.
C. trade secret.
D. kickback.

5. When a company is gathering information from job applicants, the term "_______ consent" implies that an employee would voluntarily take a personality or polygraph test and be fully aware of the consequences of taking the test.
A. qualitative
B. qualified
C. informed
D. informal

6. When you're hired to work for a company, the traditional law of _______ requires you to act loyally and to carry out all lawful instructions from your company.
A. patent
B. employment ethics
C. morality
D. agency

7. In the 1980s, President Reagan set the tone for government attitudes toward unions when he fired striking
A. steel workers.
B. U.S. Postal Service employees.
C. migrant workers.
D. air-traffic controllers.

8. Which of the following statements about the Wagner Act of 1935 is correct?
A. The act prohibited hiring discrimination based on race, creed, gender, or ethnicity.
B. The act upheld the position that unions had an inherent right to organize.
C. The act outlawed the practice of requiring workers to join a union upon being hired by a company represented by a union.
D. The act upheld the common-law standard for employee loyalty to the employer.

9. If an employer intends to follow ethical practices, salaries and wages should be established on the basis of
A. distributive justice.
B. membership or nonmembership in a union.
C. whatever an employee will accept.
D. whatever an employer wishes to pay.

10. Which of the following statements about insider trading is not correct?
A. As a rule, insider trading based on nonpublic information directly harms others.
B. Insider traders normally defend their activities as being harmless to others.
C. Insider trading can harm outside investors who don't know what the insider knows.
D. A person who doesn't personally profit from insider trading has still crossed a moral line.

11. According to the principle of _______, employers may hire, fire, promote, or demote any employee for whatever reason the employer wishes, and at any time.
A. nondiscrimination
B. motivation
C. nepotism
D. employment at will (EAW)

12. President John F. Kennedy's 1961 Executive Order 10925 became historically notable for having first used the term
A. "equal pay for equal work."
B. "age discrimination."
C. "racial desegregation."
D. "affirmative action."

13. The Hawthorne work motivation studies conducted in the 1920s determined that
A. workplace conditions and worker performance are directly related.
B. workplace conditions and worker performance have no clear relationship.
C. worker performance improved when employees felt they were getting special attention.
D. worker performance declined when employees felt they were being unfairly subjected to special attention.

14. John and George are discussing the concept of comparable worth. John says that "comparable worth" means that men and women should get the same pay for doing the same job. George says that "comparable worth" means that men and women should be paid on the same scale for any jobs that demand similar skills and responsibility, even if the jobs are different. Which of the following statements is correct?
A. Only John is correct.
B. Only George is correct.
C. Neither John nor George is correct.
D. John and George are both correct.

15. In an employment situation, the practice of showing favoritism to relatives and close friends is called
A. nepotism.
B. kickback.
C. qualification.
D. inbreeding.

16. When an employment decision is based on a person's membership in a particular group, rather than on individual merit, the situation is known as
A. sexual harassment.
B. institutional prejudice.
C. job stereotyping.
D. job discrimination.

17. Executives at Lowell Industries monitor employee phone calls, e-mails, and voice mail. However, no such monitoring of executives is permitted. Which of the following moral philosophers would consider this inequity to be a violation of a basic moral principle?
A. Immanuel Kant
B. Jeremy Bentham
C. Robert Nozick
D. Milton Friedman

18. Drug testing of employees is not considered to violate privacy when it's relevant to the
A. employment contract.
B. moral imperative.
C. greater good.
D. state law.

19. Which management style proposes that employees like work and see it as natural and rewarding?
A. Theory Y
B. Theory W
C. Theory Z
D. Theory X

20. Which of the following statements about the Foreign Corrupt Practices Act of 1977 is correct?
A. The act merely provides auditing services to companies doing business overseas.
B. The act doesn't prohibit grease payments to petty clerical or administrative officials.
C. The act fails to prohibit the creation of corporate slush funds.
D. The act is concerned with the bribery of foreign officials, but doesn't define kickbacks