Question 1

Discuss the advantages and disadvantages of implementing an ethics program with a compliance orientation versus one with a values orientation. Is one better than the other at maintaining an ethical organization?

Accepted Answer

The answer of Discuss the advantages and disadvantages of implementing...

Question 2

What are the major features of a successful ethics training program and communication systems? Think of an example of a company with strong employee ethics training.

Accepted Answer

The answer of What are the major features of a...

Question 3

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

Accepted Answer

A)   improve their ethics programs.
B)   eliminate misconduct.
C)   fail to install a Federal Sentencing Guidelines program.
D)   fail to report ethics program activities.
E)   tolerate misconduct.

Question 4

With regard to ethics, training and communication initiatives should reflect

Accepted Answer

A)   the structure of the board of directors.
B)   the organization's stock performance.
C)   the organization's size.
D)   the unique characteristics of an organization.
E)   the self-interest of the CEO.

Question 5

Which of the following is not a main goal of successful ethics programs?

Accepted Answer

A)   Identify key risk areas that employees will face.
B)   Align employee conduct with organizational reputation and branding.
C)   Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma that they do not know how to resolve.
D)   Allow employees to solve ethical issues themselves using their best judgment.
E)   Allow a mechanism for employees to voice their concerns that is anonymous, but allows for the provision of feedback to key questions.

Question 6

____ serve as a central contact point where critical comments, dilemmas, and advice can be assigned to the person most appropriate for handling a specific case.

Accepted Answer

A)   Training programs
B)   Mission statements
C)   Codes of conduct
D)   Hotlines
E)   Boards of directors

Question 7

To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except

Accepted Answer

A)   feedback from employees across the firm.
B)   a question-and-answer section.
C)   additional resources for guidance.
D)   lengthy legal documents.
E)   checklists, illustrations, and cartoons where appropriate.

Question 8

What is not a common mistake when designing and implementing an ethics program?

Accepted Answer

A)   Failing to fully understand the goals of the program
B)   Not setting realistic or measurable goals
C)   Having top management take ownership of the ethics program
D)   Developing materials that do not address the needs of the average employee
E)   Transferring a program between countries and cultures without making adjustments

Question 9

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

Accepted Answer

A)   their observations of how their coworkers and superiors behave.
B)   how they and their family members behave at home.
C)   their conscience.
D)   their religious values.
E)   their family values.

Question 10

Organizations can become "bad barrels" not because of unethical individuals but because

Accepted Answer

A)   the pressure to succeed creates opportunities that reward unethical decisions.
B)   the pressure to succeed creates opportunities that punish unethical decisions.
C)   they lack leadership.
D)   they lack values.
E)   they have no "bad apples."

Question 11

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

Accepted Answer

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

Question 12

What is the role of an ethics officer within an organization? What are his or her duties? To whom does the FSGO guidelines recommend that the ethics officer report?

Accepted Answer

The answer of What is the role of an ethics...

Question 13

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

Accepted Answer

A)   Sarbanes-Oxley Act
B)   Robinson Patman Act
C)   Ethics Officer Responsibility Act
D)   Sherman Antitrust Act
E)   Enron Financial Responsibility Act

Question 14

Which of the following is a common mistake made in implementing an ethics program?

Accepted Answer

A)   Setting realistic and measurable program objectives
B)   Developing materials that do not address the needs of the average employee
C)   Adapting a firm's ethics program to its international operations
D)   Allowing employees to practice the skills they learn in ethics training through case studies and/or group exercises
E)   Management taking ownership of the ethics program

Question 15

For an ethical compliance program to properly function,

Accepted Answer

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

Question 16

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

Accepted Answer

A)   Bad employees
B)   An inattentive board of directors
C)   Customer pressures
D)   Financial performance pressures
E)   Inadequate ethics and compliance programs

Question 17

Fostering ethical decision making within an organization requires improving the firm's ethical standards and

Accepted Answer

A)   not doing business with suppliers.
B)   implementing a hiring freeze.
C)   training the "bad apples" so they are not bad anymore.
D)   terminating ethical persons.
E)   terminating the "bad apples" in the organization.

Question 18

Which of the following is not an advantage of having a comprehensive code of conduct?

Accepted Answer

A)   To guide employees in situations where the ethical course of action is not obvious.
B)   To help a company remain in compliance with complex government regulations.
C)   To help employees fight for satisfactory levels of compensation and benefits.
D)   To help promote constructive social change by raising awareness of the community's needs and encouraging employees and other stakeholders to help.
E)   To build public trust and enhance business reputations.

Question 19

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

Accepted Answer

A)   observation of employees.
B)   internal audits.
C)   firing.
D)   surveys.
E)   reporting systems.

Question 20

Aurico is a company that offers ethics hotline maintenance and monitoring services for organizations. Which component of the Federal Sentencing Guidelines for Organizations compliance program does this service help organizations to satisfy?

Accepted Answer

A)   Code of conduct
B)   Enforcement of standards, codes, and rules
C)   Delegation of authority to ethical persons
D)   Systems for monitoring, auditing, and reporting misconduct
E)   Ethics training

Exam 8: Developing an Effective Ethics Program

Which of the following is not a main goal of successful ethics programs?

Correct AnswerverifiedShow Answer

For an ethical compliance program to properly function,

Correct AnswerverifiedShow Answer

Fostering ethical decision making within an organization requires improving the firm's ethical standards and

Correct AnswerverifiedShow Answer

What are the major features of a successful ethics training program and communication systems? Think of an example of a company with strong employee ethics training.

Correct AnswerverifiedShow Answer

Aurico is a company that offers ethics hotline maintenance and monitoring services for organizations. Which component of the Federal Sentencing Guidelines for Organizations compliance program does this service help organizations to satisfy?

Correct AnswerverifiedShow Answer

To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

____ serve as a central contact point where critical comments, dilemmas, and advice can be assigned to the person most appropriate for handling a specific case.

Correct AnswerverifiedShow Answer

With regard to ethics, training and communication initiatives should reflect

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Organizations can become "bad barrels" not because of unethical individuals but because

Correct AnswerverifiedShow Answer

Which of the following is not an advantage of having a comprehensive code of conduct?

Correct AnswerverifiedShow Answer

What is not a common mistake when designing and implementing an ethics program?

Correct AnswerverifiedShow Answer

What is the role of an ethics officer within an organization? What are his or her duties? To whom does the FSGO guidelines recommend that the ethics officer report?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a common mistake made in implementing an ethics program?

Correct AnswerverifiedShow Answer

Discuss the advantages and disadvantages of implementing an ethics program with a compliance orientation versus one with a values orientation. Is one better than the other at maintaining an ethical organization?

Correct AnswerverifiedShow Answer

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