Question 1

Angela wants to sell her business. Sadie has expressed an interest in purchasing it, but is worried about whether or not she will qualify a loan with the interest rates going up. Sadie is worried about a(n)

Accepted Answer

A)  economic force. 
B)  technological force. 
C)  demographic force. 
D)  political-legal force. 
E)  international force.

Question 2

Which of the following describes the system of corporate governance?

Accepted Answer

A)  governing an industry, such as the trucking industry, to protect customers 
B)  protecting citizens against unethical state and national governments 
C)  governing a company so that the interests of corporate owners and other stakeholders are protected 
D)  monitoring an industry, such as law firms, to ensure ethical practices 
E)  monitoring and limiting corporate political donations

Question 3

A(n) ________ is a formal written set of ethical standards guiding an organization's actions.

Accepted Answer

A)  moral compass 
B)  business plan 
C)  dilemma document 
D)  ethical plan 
E)  code of ethics

Question 4

________ guides the justice approach to deciding ethical dilemmas.

Accepted Answer

A)  Increasing profits and workplace diversity 
B)  Respect for the fundamental rights of human beings 
C)  Respect for impartial standards of fairness and equity 
D)  Respect for society and the environment 
E)  An individual's moral compass

Question 5

The marketing director for GForce Games, a video game company, has informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products because the distributors are part of the ________ environment for GForce Games. He believes that a stronger relationship with distributors will lead to more market share, and higher profits, for both GForce Games and its distributors.

Accepted Answer

A)  strategic 
B)  external 
C)  outlying 
D)  internal 
E)  task

Question 6

On an organization's board of directors, inside directors

Accepted Answer

A)  are supposed to be elected from outside the organization and outside directors may be members of the firm. 
B)  must work for the company and outside directors are also members of the firm. 
C)  may be members of the firm and outside directors are supposed to be elected from outside the firm. 
D)  are always retired executives and outside directors typically are employees. 
E)  must work for the organization and outside directors are paid members of the organization.

Question 7

Which of the following is an example of a green policy or action?

Accepted Answer

A)  A local factory pollutes the atmosphere via smokestacks that belch out carbon dioxide. 
B)  The owner of a sole proprietorship announces that she is taking on a business partner. 
C)  A major publisher donates 10,000 books a year to national literacy groups. 
D)  3M encourages employees to experiment with creating new products. 
E)  Coca-Cola has pledged to replenish (return to nature) all the water it uses to make its beverages.

Question 8

What mechanism is used to provide a systematic assessment of an organization's performance in implementing socially responsible programs, often based on predefined goals?

Accepted Answer

A)  sustainability program 
B)  code of ethics 
C)  diversity training program 
D)  financial audit 
E)  social audit

Question 9

Darci wants incorporate changes into her life that will make her more ethical. She has heard that people who get the right amount of sleep are less tempted by unethical behavior, so she has made a commitment to go to bed earlier, when possible. She also is going to pick up reading again, a hobby she has just not made time for lately, which will reduce her screen time especially right before bed. What else might she try to do?

Accepted Answer

A)  She might start thinking she is good at everything and can do no wrong, instilling confidence in herself. 
B)  She might start handwashing her clothes instead of using the washing machine to reduce energy costs. 
C)  She might get in the practice of turning off lights when she leaves rooms and remember to bring a reusable water bottle to work. 
D)  She might stop her cable/satellite service and instead switch to a streaming service like Netflix or Hulu. 
E)  She might begin to have her food delivered by a food service such as Hello Fresh or Blue Apron instead of eating out.

Question 10

________ are regulatory agencies, such as the SEC (Securities and Exchange Commission), that establish ground rules under which organizations may operate.

Accepted Answer

A)  Whistle-blowers 
B)  Government moderators 
C)  Government regulators 
D)  Interest groups 
E)  Watchdogs

Question 11

________ forces affect the way politics shape laws and the way laws shape the opportunities for and threats to an organization. For example, some cities in the United States (including New York and San Francisco) have set the minimum wage far above the federally mandated minimum wage.

Accepted Answer

A)  Political-legal 
B)  Demographic 
C)  Economic 
D)  Sociocultural 
E)  Technological

Question 12

Despite recent pressure from stockholders to increase profits, Global Oil., a global petroleum organization, has maintained a practice of consistently acting ethically by being a good global corporate citizen, taking host-country and global standards into consideration when making decisions, and obeying the laws of host countries as well as international law. Global Oil. provides an example of a company acting in a socially responsible way.

Accepted Answer

A) True 
 B)False

Question 13

With recent reports of identity theft, Mr. Adams, the CEO of a construction company, is concerned about his employees' privacy, and because of recent accidents on the job, he is also worried about the safety of his workers. Mr. Adams' concerns with privacy and health and safety are key elements in the ________ approach to deciding ethical dilemmas.

Accepted Answer

A)  individual rights 
B)  procedural justice 
C)  impartial 
D)  utilitarian 
E)  moral-rights

Question 14

Outside directors are supposed to be elected yet many are handpicked by the CEO, creating the directors' lack of

Accepted Answer

A)  interest in company matters. 
B)  corporate social responsibility. 
C)  focus on profits. 
D)  independence from the CEO. 
E)  a written ethical code.

Question 15

"Good" boards have balanced gender representation.

Accepted Answer

A) True 
 B)False

Question 16

The Sarbanes-Oxley Act of 2002 established requirements for ________. Noncompliance can result in penalties of

Accepted Answer

A)  proper financial record keeping for private companies; as much as 20 years in prison. 
B)  proper financial record keeping for government organizations; as much as 25 years in prison. 
C)  codes of ethics guidelines for organizations; as much as $2 million. 
D)  proper financial record keeping for public companies; as much as 25 years in prison. 
E)  all corporate financial records to be made public; as much as $5 million.

Question 17

Roberto was recently promoted, and his salary increase includes retirement investment options, so he has decided to take part in an ESOP. This means that Roberto

Accepted Answer

A)  will soon be added to the company's board of directors. 
B)  will participate in an Externship Supervisors' Oversight Plan. 
C)  will be buying or receiving shares of his company's stock. 
D)  is now one of the company's external stakeholders. 
E)  is in charge of an investment group.

Question 18

Olympia Marketing has instituted new policies around misappropriation of assets, conflicts of interests, and kickbacks. Also with the local elections just around the corner, management sent out reminders about political contributions and confidentiality of company information. All of these policies can be found in Olympia Marketing's

Accepted Answer

A)  employee handbook. 
B)  policies and procedures manual. 
C)  moral rights approach. 
D)  code of ethics. 
E)  value system.

Question 19

Randy, a small café owner, is facing possible bankruptcy due to a severe decrease in business in his restaurant. Evelyn, a friend of Randy, approached him about hiring illegal immigrants because Randy can pay those workers a lower pay rate and save on payroll. Discuss some of the legal and ethical issues involved in this situation. How should Randy respond to his ethical dilemma-should he hire the illegal immigrants or not? Explain your answer.

Accepted Answer

The answer of Randy, a small café owner, is facing...

Question 20

Cara has discovered that due to a time crunch, her boss has let the latest round of prescription medications be sent to pharmacies without the final check. She claims that there has never been an issue with this particular drug in the past and if patients weren't able to get their medications on time, the story would definitely be in the newspaper. Her boss is willing to take the risk. After all what could possibly go wrong? What do you think Cara should do?

Accepted Answer

A)  Report her boss for an ethical violation. 
B)  Agree with her boss and do nothing. 
C)  Agree with her boss, but document her objections, just in case. 
D)  Report her boss to the newspaper. 
E)  Disagree with her boss and ask HR to reassign her.

Exam 3: The Managers Changing Work Environment and Ethical Responsibilities: Doing the Right Thing