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1
As noted in "Thinking Ethically: A Framework for Moral Decision Making," selecting an approach for dealing with moral issues:
A)makes obvious the decision that must be reached.
B)tends to obfuscate the values issues involved.
C)provides a strategy for defending decisions.
D)helps identify ethical considerations.
2
According to "Thinking Ethically: A Framework for Moral Decision Making," the first step in analyzing moral issues is to:
A)determine what ethics are involved.
B)establish moral principles.
C)get the facts.
D)create a level playing field.
3
As presented in "Thinking Ethically: A Framework for Moral Decision Making," virtues are like habits--once they are acquired, they become characteristic of a person.
A)True
B)False
4
Honest behavior can be designed into an organization, as explained in "Designing Honesty into Your Organization," by establishing reward systems:
A)for highly ethical practices.
B)intended to encourage whistleblowers.
C)based on fair and properly aligned criteria.
D)that contain some punitive elements.
5
According to "Designing Honesty into Your Organization," the dishonest behavior most frequently observed by employees in a recent survey was:
A)abuse of company resources.
B)lying to employees.
C)lying to outside stakeholders.
D)falsifying time or expenses.
6
Integrity testing, as put forth in "Designing Honesty into Your Organization," is a highly effective predictor of workplace honesty.
A)True
B)False
7
Chief among the long-term costs of unfair business practices, as cited in "Fairness in Business," is the:
A)high turnover rate among employees.
B)risk of litigation.
C)damage to company reputation.
D)failure to pursue innovative strategies.
8
When Nike was found to be engaging in abusive practices in its Asian factories, as noted in "Fairness in Business," the company was subjected to widespread protests that were staged mainly at:
A)domestic factory facilities.
B)U.S. college campuses.
C)international sporting events.
D)the homes of Nike executives.
9
The reasons for engaging in fair business practices, as mentioned in "Fairness in Business," can be both practical and philosophical.
A)True
B)False
10
As concluded in "Building an Ethical Framework," the lesson of today's corporate culture is that behaviors and their outcomes are determined by:
A)employees.
B)federal legislation.
C)company rules.
D)leadership.
11
According to "Building an Ethical Framework," an organization's board of directors and senior leadership can help establish an ethics initiative by providing a reasonable budget of all of the following, except:
A)time.
B)talent.
C)whimsy.
D)money.
12
As maintained in "Building an Ethical Framework," it is much less costly to prevent an ethical dilemma or scandal than to try to fix such a problem.
A)True
B)False
13
As discussed in "Is Business Ethics Getting Better? A Historical Perspective," Adam Smith contended that enlightened self-interest is:
A)to be avoided in ethical business practice.
B)self-interest tied to the interests of others in society.
C)delayed gratification.
D)an altruistic ideal that is rarely attained in modern business practice.
14
As reported in "Is Business Ethics Getting Better? A Historical Perspective," a 1961 study asked "How Ethical are Businessmen?" and found that:
A)nearly all respondents admitted to unethical behavior in their careers.
B)very few respondents admitted to unethical behavior in their careers.
C)the majority of respondents agreed that ethical standards were very high in their fields.
D)there was no definitive answer but most thought there should be improvement in ethical business behavior.
15
As noted in "Is Business Ethics Getting Better? A Historical Perspective," moral problems and concerns have been inherent in business since ancient times.
A)True
B)False
16
As related in "Principles for Building an Ethical Organization," the Indian story of Arjuna was told at a recent ethics conference to illustrate:
A)the value of integrity-based business.
B)that women are the assets of a company.
C)how the same techniques that work in one context may not work in another.
D)how private-sector organizations can be just as ethical as non-profit organizations.
17
As recounted in "Principles for Building an Ethical Organization," an ethical culture should be instilled in a company:
A)as soon as ethical lapses have been discovered.
B)right from the very beginning of its existence.
C)once a company has reached maturity and is profitable; only then can issues such as ethics be practically addressed.
D)when federal regulations require adherence to ethical guidelines.
18
As noted in "Principles for Building an Ethical Organization," a company's ethical standards should be understandable for everyone in the company.
A)True
B)False
19
As set out in "What's at the Core of Corporate Wrongdoing?", the mindset that can lead to individual and corporate wrongdoing is characterized as:
A)lying for profit.
B)enough is never enough.
C)all's fair in love and business.
D)laissez-faire.
20
As maintained in "What's at the Core of Corporate Wrongdoing?", the responsibility for corporate culture begins with the:
A)board of directors.
B)chief executive officer.
C)division managers.
D)lowest salaried employee.
21
As stated in "What's at the Core of Corporate Wrongdoing?", wise board recruitment selects board members who can understand and balance the CEO's natural motivations.
A)True
B)False
22
As presented in "Markets and Morals," the marketization of everything means that:
A)prices of goods are decreasing slightly to a fairer level.
B)the income levels of the affluent and the middle class are becoming much closer.
C)the affluent and those of modest means are leading increasingly separate lives.
D)poverty as it existed in the twentieth century is gradually disappearing.
23
The author of "Markets and Morals" worries that Americans have recently come to rely on markets in ways that:
A)pervert the intention of the Constitution.
B)will transform the financial markets.
C)deny proper rewards to those who excel.
D)undermine the fairness of American society.
24
As asserted in "Markets and Morals," for believers in market fundamentalism, laissez-faire is never optimal.
A)True
B)False
25
At the forefront of the movement to self-determining machines, as put forth in "Morals and the Machine," is:
A)medical technology.
B)the energy industry.
C)research biologists.
D)military technology.
26
According to "Morals and the Machine," as they become smarter and more widespread, autonomous machines are likely to appear to make moral judgments as they:
A)interact with individuals who do not understand the technology behind their functioning.
B)make life-or-death decisions in unpredictable situations.
C)re-invent their programming to "learn" from experience.
D)replace individuals in many workplace positions.
27
The "three laws of robotics" coined by Isaac Asimov, as presented in "Morals and the Machine," require robots to preserve themselves as the first law.
A)True
B)False
28
A recent study of Harvard MBA graduates, as described in "Ethical Leadership and the Dual Roles of Examples," found that the most important examples set by leaders in shaping the corporate culture were those that:
A)reflected concerns outside the organization.
B)involved difficult and painful decisions.
C)appeared dismissive of ethical concerns.
D)provided lower-level employees with a sense of belonging.
29
In the Penn State University sexual-abuse case, as presented in "Ethical Leadership and the Dual Roles of Examples," there were no charges filed against football head coach Joe Paterno because the district attorney determined that:
A)Paterno had fulfilled his legal obligations in reporting the alleged abuse to the athletics director.
B)there was little evidence to connect him with the crimes.
C)he had no prior knowledge of the crimes.
D)he had taken steps above and beyond what was required to see that the abuse charges were fully investigated.
30
Learning the right lessons from examples involving ethical decision making, as pointed out in "Ethical Leadership and the Dual Roles of Examples," often require overcoming common human tendencies that adversely affect the quality of thinking and decision-making.
A)True
B)False
31
Examining perks, as maintained in "Unfair Business Practices," is an ideal means of assessing the levels of fairness in an organization because perks:
A)can be given and taken away as the company sees fit.
B)rarely reflect performance.
C)are visible manifestations of how a company sets people apart.
D)do not fall under any specific legal guidelines or obligations.
32
According to "Unfair Business Practices," companies often feel obligated to try to keep up with competitors to retain top talent, which can be seen in perks as well as:
A)skyrocketing executive compensation.
B)non-compete clauses in employee contracts.
C)recent government investigations into employment practices.
D)lavish recruiting events.
33
Perks, as explained in "Unfair Business Practices," differ from benefits in that employers offer benefits to all employees equally.
A)True
B)False
34
As reported in "Under Pressure, Teachers Tamper with Test Scores," the staff at Normandy Crossing Elementary cheated by:
A)using ringer students as replacements to take tests.
B)giving students the tests to study in advance.
C)giving a study guide with questions copied from the test.
D)telling the students the answers during the tests.
35
As noted in "Under Pressure, Teachers Tamper with Test Scores," Gregory J. Cizek of the University of North Carolina contends that:
A)cheating has always been rampant among educators.
B)states have no incentive to pursue the cheating problem.
C)too much attention is paid to cheating.
D)cheating generally originates on the superintendent level.
36
As pointed out in "Under Pressure, Teachers Tamper with Test Scores," the phenomenon of teachers cheating is increasing as the stakes over standardized testing ratchet higher.
A)True
B)False
37
As claimed in "Investigation into APS (Atlanta Public Schools) Cheating Finds Unethical Behavior across Every Level," for years Atlanta schools have been meeting academic goals by:
A)increasing the efficiency of their budgets.
B)attracting well-qualified and experienced teachers.
C)erasing and correcting students' answers on standardized tests.
D)changing the curriculum to better serve their students.
38
As reported in "Investigation into APS (Atlanta Public Schools) Cheating Finds Unethical Behavior across Every Level," misconduct in Atlanta public schools was committed by:
A)teachers only.
B)teachers and principals.
C)teachers, principals, and officials in the superintendent's office.
D)teachers, principals, the superintendent's office, and the mayor's office.
39
As cited in "Investigation into APS (Atlanta Public Schools) Cheating Finds Unethical Behavior across Every Level," one of the most egregious consequences of the cheating scandal is that students who were struggling were cut off from the extra help they would have received if they had failed.
A)True
B)False
40
As related in "When You're Most Vulnerable to Fraud," Andi McNeal of the Association of Certified Fraud Examiners contends that small businesses are targets for internal fraud because they:
A)usually have fewer formal financial controls.
B)have fast cash flow.
C)concentrate on results rather than processes.
D)often employ family members.
41
As reported in "When You're Most Vulnerable to Fraud," problems that contributed to Ed Couvrette's situation included that:
A)he thought of himself as an administration expert.
B)the downturn in the economy distracted his attention.
C)he did not check references.
D)he let his guard down when he hired the chief operating officer.
42
As pointed out in "When You're Most Vulnerable to Fraud," the larger a company, the more likely that fraud is being perpetrated internally.
A)True
B)False
43
As defined in "When Good People Do Bad Things at Work," scripts are:
A)procedures the brain actively constructs when confronted with a familiar situation.
B)prescriptions for dealing with ethical conflicts.
C)procedures that experience tells us to use in specific situations.
D)pre-written solutions to use during ethical conflicts.
44
As mentioned in "When Good People Do Bad Things at Work," in order to prevent the potential use of scripts that precipitate unethical behavior, one Oklahoma newspaper:
A)created a seminar to educate employees on avoiding scripts.
B)implemented job rotation for most editors.
C)required employees to donate time to charitable causes.
D)required employees to interact with people who were morally excluded.
45
As noted in "When Good People Do Bad Things at Work," genuinely good people do not behave unethically.
A)True
B)False
46
As identified in "Behind the Murdoch Scandal? Scandalous Governance," a major sign that a company is in danger of succumbing to the one-man problem is when one man:
A)holds power grossly disproportionate to his economic stake in the company.
B)is in charge of the company.
C)holds more class A shares than class B shares of stock.
D)is subject only to the shareholders' will.
47
As noted in "Behind the Murdoch Scandal? Scandalous Governance," the News Corp. payment of $92,000 for "strategic advice" to Rupert Murdoch's wife Wendi is an example of:
A)the one-man problem.
B)disproportionate power.
C)family favoritism.
D)outsourcing.
48
As mentioned in "Behind the Murdoch Scandal? Scandalous Governance," the research firm Corporate Library recently praised News Corp.'s corporate governance.
A)True
B)False
49
As reported in "American Apparel and the Ethics of a Sexually Charged Workplace," American Apparel's encouragement of sexual freedom in the workplace has led to:
A)a friendlier work environment.
B)a greater-than-average rate of maternity leave for employees.
C)high employee-retention rates.
D)several lawsuits claiming that the company created a hostile work environment.
50
As outlined in "American Apparel and the Ethics of a Sexually Charged Workplace," American Apparel's Dov Charney has long championed:
A)the importance of sexual energy.
B)endorphin highs.
C)women's rights in the workplace.
D)union rights.
51
As noted in "American Apparel and the Ethics of a Sexually Charged Workplace," American Apparel's stock has been soaring despite sexual-harassment litigation.
A)True
B)False
52
As noted in "What the Wal-Mart Ruling Means for Big Business," a unanimous ruling in the Dukes v. Wal-Mart case involved:
A)commonality of the class.
B)procedures under which a suit seeking monetary compensation may be brought.
C)procedures under which a suit seeking injunctive relief may be brought.
D)proper categorization of the class-action suit.
53
As mentioned in "What the Wal-Mart Ruling Means for Big Business," the Supreme Court decided that class plaintiffs must demonstrate a high degree of commonality, meaning they:
A)have suffered the same injury and the remedy for such injury would be the same for all.
B)have all suffered a violation of the same law.
C)are all of a similar socio-economic status.
D)have all worked at the same company in similar jobs.
54
As indicated in "What the Wal-Mart Ruling Means for Big Business," Dukes v. Wal-Mart is the largest sex-discrimination class-action suit to date.
A)True
B)False
55
As reported in "Older Workers: Running to the Courthouse?", the majority of older workers:
A)have practiced age discrimination.
B)have filed an age-discrimination suit.
C)are not aware of age discrimination.
D)consider age discrimination a fact of life.
56
As noted in "Older Workers: Running to the Courthouse?", the Equal Employment Opportunity Commission:
A)has unlimited leverage in discrimination cases.
B)cannot conciliate claims.
C)cannot issue financial awards to aggrieved parties.
D)can render judgments on the merits of cases.
57
As stated in "Older Workers: Running to the Courthouse?", high-powered executives trade in the right to sue when they are hired.
A)True
B)False
58
As given in "Fighting the High Cost of 'Getting Even' at Work," one way for employers to avoid retaliation judgments is to:
A)give an employee plenty of advance notice if he or she is to be fired.
B)avoid contact with the human resources department about the employee.
C)keep human-resources staffers apprised of everything that happens concerning the employee.
D)maintain as few records as possible about the employee to be fired.
59
Among the lofty goals set at Juniper Networks last year, as described in "Values-Driven HR," was an effort to:
A)retain all employees for at least five years.
B)take the company public.
C)encourage all employees to engage in charitable works.
D)end worldwide slavery.
60
The central values of Juniper Networks, as set forth in "Values-Driven HR," include all of the following except:
A)profit.
B)collaboration.
C)authenticity.
D)trust.
61
The behavior-influencing model SCARF, as presented in "Values-Driven HR," was ineffective in demonstrating to the scientists and engineers at Juniper that changes would take place in the new performance-management process.
A)True
B)False
62
As noted in "Cost Reductions, Downsizing-Related Layoffs, and HR Practices," a firm's capacity to overcome a business downturn in the first stage will depend largely on:
A)identifying the best people to lay off.
B)immediately and resolutely modifying expenditures.
C)employee flexibility.
D)accurate predictions.
63
As reported in "Cost Reductions, Downsizing-Related Layoffs, and HR Practices," salary reductions:
A)do not prevent layoffs.
B)should be equal among all employees.
C)do not affect employee morale.
D)may cause top employees to go to competitors.
64
As stated in "Cost Reductions, Downsizing-Related Layoffs, and HR Practices," most of the employees that Texas Instruments loaned to vendors were involved in research and development.
A)True
B)False
65
As reported in "People Have to Come before Profits, Even in a Crisis," the Fukushima Daiichi power-plant disaster involved a:
A)chemical leak like the 1984 Bhopal disaster.
B)full nuclear meltdown akin to the Chernobyl accident.
C)serious nuclear incident on the scale of the 1979 Three Mile Island accident.
D)serious oil spill similar to the 2010 BP accident in the Gulf of Mexico.
66
As detailed in "People Have to Come before Profits, Even in a Crisis," the crisis-management problem in handling the Fukushima Daiichi power-plant disaster was due to a lack of:
A)training in ethical decision-making in emergencies.
B)education on nuclear accidents among power-plant executives.
C)emergency training among power-plant executives.
D)clear ethical standards at TEPCO.
67
As noted in "People Have to Come before Profits, Even in a Crisis," it appears that much of the initial decision-making after the Fukushima Daiichi nuclear disaster was based on concern for people and not profits.
A)True
B)False
68
As mentioned in "Deep Throat's Lessons for Whistle-Blowers," Mark Felt, also known as Deep Throat, was the source who blew the whistle on:
A)Big Tobacco's cover-up of the health hazards of smoking.
B)insurance-industry kickbacks in New York.
C)Enron's shifty financial dealings.
D)the Watergate scandal.
69
As noted in "Deep Throat's Lessons for Whistle-Blowers," corporate scandals usually revolve around:
A)sexual improprieties.
B)money.
C)honor.
D)power.
70
As brought out in "Deep Throat's Lessons for Whistle-Blowers," Colleen Rowley, the FBI agent who shed light on intelligence failures preceding the September 11, 2011, terrorist attacks, is considering a run for Congress.
A)True
B)False
71
As suggested in "Whistleblowers," companies should:
A)try to show whistleblowers as vengeful or crazy.
B)investigate every whistleblower claim ferociously.
C)isolate whistleblowers from other employees.
D)always begin by denying whistleblower claims.
72
As described in "Whistleblowers," the American company currently facing a whistleblower crisis is:
A)Wal-Mart.
B)General Motors.
C)Google.
D)Caterpillar.
73
According to "Whistleblowers," there is a pervasive, even understandable, impulse within companies to ignore whistleblowers because they are so often time wasters.
A)True
B)False
74
The single-most common way that fraud is detected within U.S. corporations, as described in "The Unexpected Cost of Staying Silent," is through:
A)shareholder complaints.
B)tip-offs from whistleblowers.
C)internal controls.
D)government investigation.
75
The incidence of whistle-blowing may soon rise, as reported in "The Unexpected Cost of Staying Silent," as a result of new regulations that:
A)financially reward employees for their information.
B)will protect whistleblowers from retaliation.
C)may hold employees liable for staying silent.
D)limit liabilities for corporate fraud.
76
Data from a recent study, as cited in "The Unexpected Cost of Staying Silent," indicates that more than half of all companies internationally have uncovered a significant economic crime within the previous 12-month period.
A)True
B)False
77
As portrayed in "SEC Rule Will Let Whistle-Blowers Bypass Internal Programs," a new rule allows whistle-blowers to:
A)collect up to 30 percent of penalties when they report financial wrongdoing.
B)keep their jobs.
C)sue employers that commit financial wrongdoing.
D)report financial wrongdoing to the SEC only after they have first filed a report through their company's internal complaint system.
78
As characterized in "SEC Rule Will Let Whistle-Blowers Bypass Internal Programs," in order to qualify for bounties, whistle-blowers must:
A)file a report through their company's internal complaint system.
B)bypass their company's internal complaint system.
C)voluntarily provide information before it is requested by regulators.
D)resign from their positions.
79
As noted in "SEC Rule Will Let Whistle-Blowers Bypass Internal Programs," before the new rule took effect, the bounty system was previously limited to insider-trading cases.
A)True
B)False
80
As explained in "The Parable of the Sadhu," without leadership, an organization:
A)will have a clash of ethics.
B)will revert to anarchy.
C)may be unable to act on its values.
D)will not behave in an ethical fashion.
81
According to "The Parable of the Sadhu," the lesson of the sadhu is that in a complex corporate situation, the individual:
A)is insignificant.
B)needs the support of the group.
C)must be willing to act alone.
D)is more important than the group.
82
As discussed in "The Parable of the Sadhu," when quick decisions need to be made, corporate ethics are more often a constraint than they are a positive force.
A)True
B)False
83
As characterized in "Fact Sheet: We Can't Wait: White House Launches Ethics.gov," the overall purpose of creating the Ethics.gov web site was to:
A)prod government agencies to be more honest.
B)tarnish the image of the preceding Bush Administration.
C)make information about how the government works more accessible to the public.
D)eliminate the need for the Freedom of Information Act.
84
As detailed in "Fact Sheet: We Can't Wait: White House Launches Ethics.gov," the data bases that can be searched on the Ethics.gov web site include all of the following except:
A)White House Visitor Records.
B)Lobbying Disclosure Act Data.
C)Federal Election Commission Candidate Reports.
D)Income Tax Returns of Individuals.
85
As claimed by the White House in "Fact Sheet: We Can't Wait: White House Launches Ethics.gov," the Ethics.gov web site is a result of President Obama's commitment to an open and transparent government.
A)True
B)False
86
In "Trust in the Marketplace," total trust is defined as the belief that a company and its people:
A)will always practice the Golden Rule.
B)will never take opportunistic advantage of customer vulnerabilities.
C)would be proud if their marketing practices were made public.
D)is value-oriented, not just market-driven.
87
An investigation discussed in "Trust in the Marketplace" revealed that, in an ethical breach of trust, many unsuspecting consumers had hidden charges tacked on when purchasing a new:
A)car.
B)mortgage.
C)personal computer.
D)life insurance policy.
88
As reported in "Trust in the Marketplace," Chrysler moved promptly to notify its customers of the problem when it was discovered that a safety latch on its minivan was inadequate.
A)True
B)False
89
According to "Privacy and the Internet: Lives of Others," Peter Schaar, Germany's federal commissioner for data protection, contends that Google:
A)has no adequate privacy filters.
B)does not know where the data it collects winds up.
C)has inadvertently compromised privacy.
D)disobeyed normal rules in the development and use of software.
90
As reported in "Privacy and the Internet: Lives of Others," Facebook argues that the change in default settings on privacy controls was:
A)necessary to assure national security.
B)a reflection of a shift toward openness in society.
C)mandated by federal law.
D)aimed to attract more users.
91
As pointed out in "Privacy and the Internet: Lives of Others," leaders of Facebook are in no way concerned about complaints regarding their privacy policies.
A)True
B)False
92
Event data recorders, as put forth in "Automotive 'Black Boxes' Raise Privacy Issues," can be compared to:
A)computer security software.
B)VCRs and DVD players.
C)similar devices on airplanes.
D)highway traffic cameras.
93
Some drivers, as explained in "Automotive 'Black Boxes' Raise Privacy Issues," object to event data recorders in automobiles for all of the following reasons except that they:
A)are automatically placed in new cars.
B)cannot be turned off by drivers.
C)contain information that can be turned over to anyone with a court order.
D)become a permanent feature of an individual's driving record.
94
Event data recorders, as noted in "Automotive 'Black Boxes' Raise Privacy Issues," are now installed on virtually all new vehicles.
A)True
B)False
95
As described in "Digital-Privacy Rules Taking Shape," the Federal Trade Commission (FTC) wants legislation requiring data brokers to:
A)pay consumers for using their information.
B)allow consumers to choose their data brokers.
C)permit consumers to bar the use of their personal information.
D)give consumers the right to see and make corrections to their information.
96
As detailed in "Digital-Privacy Rules Taking Shape," the FTC and the online-advertising industry:
A)completely disagree on the definition of "Do Not Track."
B)are working towards an agreement on the meaning of "Do Not Track."
C)agree that there is little utility in having a "Do Not Track" mechanism in Web browsers.
D)want consumers to foot the bill for activating "Do Not Track."
97
As explained in "Digital-Privacy Rules Taking Shape," the FTC is the only government agency that has the authority to write new rules for privacy.
A)True
B)False
98
As explained in "The Ethics of Social Media - Part I: Adjusting to a 24/7 World," recently an executive at Pacific Gas & Electric was put on paid leave after:
A)filing false harassment claims against the company.
B)seeking to join an online group critical of the company's plan to install "smart meters."
C)posting inappropriate photos on Facebook.
D)joining an online environmental rights group.
99
As reported in "The Ethics of Social Media - Part I: Adjusting to a 24/7 World," in a recent survey about three-fourths of U.S. recruiters and H.R. professionals said their companies have formal policies that:
A)require traditional criminal-background checks.
B)require fingerprinting of candidates.
C)restrict them from researching applicants online.
D)require them to research applicants online.
100
As noted in "The Ethics of Social Media - Part I: Adjusting to a 24/7 World," a recent survey showed that percent of companies have no social media policy.
A)True
B)False
101
As noted in "The Ethics of Social Media - Part II: Playing by New Rules," the Obama Administration is drafting "Internet Policy 3.0," which addresses:
A)Internet usage policy in the federal government.
B)employees' rights to Internet usage.
C)privacy and cybersecurity.
D)libel charges on social media sites.
102
As mentioned in "The Ethics of Social Media - Part II: Playing by New Rules," the ReputationDefender product MyPrivacy offers to:
A)remove personal information from the web, monitor the Internet, and create a "do not track" list.
B)increase positive content about a person or company on the web.
C)combat false Google information about businesses.
D)record telephone conversations and voice mails on company-owned telephones.
103
As cited in "The Ethics of Social Media – Part II: Playing by New Rules," 34 percent of Americans have used social media to rant or rave about a product, company, or brand.
A)True
B)False
104
The Anglo-American governance system, as explained in "Challenges of Governing Globally," emerged from the U.K. common-law legal system originally designed to:
A)establish tax law.
B)regulate trade among colonies.
C)protect private landholders.
D)ensure voting rights.
105
Examples of countries with communitarian governance systems, as set forth in "Challenges of Governing Globally," include all of the following except:
A)Germany.
B)Canada.
C)Japan.
D)Sweden.
106
As asserted in "Challenges of Governing Globally," not all corporate-governance failures involve financial fraud.
A)True
B)False
107
As reported in "Ethics Must Be Global, Not Local," the Foreign Corrupt Practices Act:
A)criminalized foreign corruption in the United States.
B)criminalized the act of making payments outside the United States in pursuit of contracts.
C)regulated the foreign online presence of U.S. corporations.
D)restricted foreign companies convicted of corruption from doing business in the United States.
108
According to "Ethics Must Be Global, Not Local," the author states that in order to build a great global company one should:
A)have a single global standard of business practices.
B)adapt to local customs and practices.
C)accept bribery as an unfortunate cost of doing business in some regions.
D)delegate ethics compliance responsibilities to managers who are familiar with the various regions and customs.
109
As noted in "Ethics Must Be Global, Not Local," the CEO of Siemens resigned in 2007 after the company admitted to paying $2 billion in bribes.
A)True
B)False
110
As asserted in "Conceptualizing a Framework for Global Business Ethics," literature on global ethics in the 1960s through the 1980s:
A)focused on ethical issues in global marketing.
B)examined the problem of ethical tension when home-country values conflicted with those of the host country.
C)introduced and described ethical concepts and theories.
D)tended to be more scholarly and theoretical than earlier work in the field.
111
As reported in "Conceptualizing a Framework for Global Business Ethics," Toys R Us has sought to combat ethical problems in working conditions by:
A)requesting that suppliers seek SA 8000 certification.
B)requiring suppliers to take company-specific ethics training.
C)moving all production facilities to the United States.
D)requiring suppliers to pay workers double the host country's minimum wage.
112
As noted in "Conceptualizing a Framework for Global Business Ethics," employees feel better about a firm and are more productive when they sense ethical behavior is a part of its culture.
A)True
B)False
113
As described in "Revisiting the Global Business Ethics Question," an example of a situation where the home country violated ethical standards and human rights was during:
A)Shell's involvement in Nigeria.
B)Britain's perpetration of the opium trade in India and China.
C)the Sudan crisis.
D)the U.S. involvement in Mexico.
114
As explained in "Revisiting the Global Business Ethics Question," the primary motivator of individual human behavior is:
A)public interest.
B)private interest.
C)individual interest.
D)interest for the collective.
115
As detailed in "Revisiting the Global Business Ethics Question," some people around the world see piracy of intellectual property as a reflection of the cultural sentiment that knowledge is public property.
A)True
B)False
116
As portrayed in "Taking Your Code to China," China has had strong economic growth since:
A)Mao's Cultural Revolution.
B)the Gang of Four trials.
C)the Opium Wars.
D)Deng Xiaoping's 1978 policies.
117
As reported in "Taking Your Code to China," evidence of a growing civil society in China has presented itself in the form of:
A)public philanthropy and scrutiny of powerful companies and government officials.
B)stricter standards of business for Chinese multinational corporations.
C)new government regulations promoting business ethics.
D)a new social movement to end corruption.
118
As indicated in "Taking Your Code to China," gift giving is a custom in China that most businesses follow.
A)True
B)False
119
According to "Moral Hazard," the purpose of the Foreign Corrupt Practices Act is to:
A)keep foreign companies from committing illegal acts in the United States.
B)bring moral fiber into the global economy.
C)prevent U.S. firms from bribing government officials around the world to win business.
D)force foreign businesses to measure up to American business practices.
120
As presented in "Moral Hazard," public companies like Wal-Mart almost never fight back in court against the government because the:
A)risks of losing are far too great.
B)companies fear publicity about wrong-doing.
C)legal costs are too high.
D)federal government invariably has iron-clad evidence against them.
121
As stated in "Moral Hazard," under the Obama Administration, the bright line between what is acceptable business behavior and what is not has become muddled.
A)True
B)False
122
The main charge of corruption in Wal-Mart's operations in Mexico, as put forth in "Wal-Mart Hushed Up a Vast Mexican Bribery Case," involve bribes to:
A)avoid taxes.
B)avoid import duties.
C)skimp on employee benefits.
D)obtain building permits.
123
After conducting an internal investigation that confirmed allegations of widespread bribery in Wal-Mart's operations in Mexico, as asserted in "Wal-Mart Hushed Up a Vast Mexican Bribery Case," the company decided to:
A)hire an outside auditing firm.
B)shut down the investigation.
C)seek the help of Mexican authorities.
D)press criminal charges against some executives.
124
The chief executive of Wal-Mart de Mexico, as maintained in "Wal-Mart Hushed Up a Vast Mexican Bribery Case," has been exonerated of any involvement in the systematic corruption that seems to have taken over the company's Mexican operations.
A)True
B)False
125
As reported in "What Really Drives Value in Corporate Responsibility?", corporate leaders can increase the likelihood that stakeholders will interpret corporate-responsibility initiatives more positively through all of following except:
A)not hiding market motives.
B)trade-marking new procedures.
C)serving stakeholders' true needs.
D)testing the progress of initiatives.
126
As cited in "What Really Drives Value in Corporate Responsibility?", the social and environmental footprints of business are receiving increasing attention from corporate stakeholders, which include all but:
A)employees.
B)consumers.
C)government watchdogs.
D)investors.
127
As maintained in "What Really Drives Value in Corporate Responsibility?", companies with low product quality can reap negative returns from their corporate-responsibility activities.
A)True
B)False
128
Businesses of all shapes and sizes are now seen in an unfavorable light, as pointed out in "Doing More Good," as today's economic climate has forced many to undertake all of the following steps except:
A)reduce spending.
B)cut benefits.
C)release workers.
D)raise fees to consumers.
129
The first efforts at corporate responsibility, as explained in "Doing More Good," arose out of reports of:
A)abusive international labor practices.
B)executive fraud.
C)excessive executive compensation.
D)widespread avoidance of corporate-tax laws.
130
Since the onset of the recession in 2007, as noted in "Doing More Good," the Committee Encouraging Corporate Philanthropy (CECP) has found that one out of every two businesses had increased the amount of funds contributed to charity or community organizations.
A)True
B)False
131
In general, as put forth in "Necessary but Not Sufficient," one of the main problems with most corporate responsibility (CR) programs is that:
A)they lack long-term planning.
B)they are intended primarily to avoid criticisms.
C)it is unclear how far the responsibility to address these issues extends.
D)organizations are reluctant to fund programs that could make significant impacts.
132
Making a company "greener," as maintained in "Necessary but Not Sufficient," is an inadequate approach to sustainability because:
A)public interest in greening is fleeting.
B)this generally only accomplishes simple, superficial tasks.
C)the sustainability focus is inward looking, instead of outward.
D)few stakeholders will be aware of these efforts.
133
Most corporate social responsibility (CSR) efforts, as noted in "Necessary but Not Sufficient," fail to provide a clear means for striking a balance between obligation and opportunity.
A)True
B)False
134
Most people in the United States, as maintained in "Cause for Concern," are unlikely to think about conserving water because:
A)water is still a very inexpensive resource.
B)people do not realize the importance of water to health.
C)most have never experienced a true water shortage.
D)water has become a heavily marketed product.
135
Water, as explained in "Cause for Concern," is going to become the top environmental issue for North America and the rest of the world because while population is increasing:
A)there are no efforts to regulate per-capita water consumption.
B)water is still not seen as an endangered, vital resource.
C)international laws do not adequately regulate water supplies and transfers.
D)infrastructure concerning water has not kept up.
136
Consumers around the world, as stated in "Cause for Concern," are generally unaware of their own water consumption and have a general lack of knowledge about water-management issues.
A)True
B)False
137
As stated in "Honest Innovation," innovation teams are willing to push ideas forward because:
A)they are held accountable.
B)achievement bears greater fruit than activity.
C)they often function in a laissez-faire atmosphere.
D)intentions are more important than results.
138
In discussing the launch of the Apple Newton, the author of "Honest Innovation" points out that:
A)it was at the urging of Apple loyalists.
B)CEO John Scully was opposed to the launch.
C)the Apple board was aware of the problems.
D)there were many documented problems with the product.
139
As noted in "Honest Innovation," Pontiac research before the launch verified that the Aztec was an ugly car.
A)True
B)False
140
As suggested in "Serving Unfair Customers," to answer the question "When does a customer's bad judgment (or, when do bad manners) cross the line to unfairness?," it is particularly useful to consider three concepts, including all of the following, except:
A)the severity of the harm the customer causes.
B)the frequency of the customer's problematic behavior.
C)intentionality.
D)potential retaliation.
141
As reported in "Serving Unfair Customers," research shows that customer injustice contributes to employee stress and turnover when it is allowed to increase the employee's effort in what is termed:
A)performance equilibrium.
B)the employer expectation factor.
C)ethical compromise.
D)emotional labor.
142
As stated in "Serving Unfair Customers," blamers are those who bring misery primarily to customer-contact employees, but with verbal abusers, "the company is always wrong."
A)True
B)False
143
As given in "First, Make Money. Also, Do Good," the shared-value concept is:
A)based upon the concept of "profits before people."
B)a business philosophy championed by Milton Friedman.
C)based upon corporate self-interest as well as social concerns.
D)a business philosophy popular during the 1960s.
144
As noted in "First, Make Money. Also, Do Good," under shared value, companies will still look after their own self-interest in the form of:
A)promoting sustainability.
B)lobbying for less regulation.
C)impact investing.
D)championing the triple bottom line.
145
As mentioned in "First, Make Money. Also, Do Good," Milton Friedman once compared social-responsibility programs to "hypocritical window-dressing."
A)True
B)False
146
As given in "Doing Good to Do Well," increasingly, large companies send small teams of employees to developing countries to:
A)provide free consulting services to nonprofits and other organizations.
B)identify the strong points of local industries.
C)learn foreign languages.
D)enjoy low-cost vacations.
147
As discussed in "Doing Good to Do Well," the benefits to U.S. corporations of sending volunteer teams to developing countries include all of the following except:
A)creating good public relations.
B)adding substantially to the companies' bottom lines.
C)gaining local name recognition.
D)helping to recruit in-demand talent and retain valued employees.
148
As mentioned in "Doing Good to Do Well," most corporate volunteers in developing countries serve without pay.
A)True
B)False
149
According to "Creating an Ethical Culture," the majority of perpetrators in corporate criminal behavior are:
A)seasoned white-collar criminals who are skilled at defrauding corporations.
B)small-time thieves who find themselves in easy-money situations too tempting to ignore.
C)good people who are pressured by higher-ups or corporate expectations to break the law.
D)low-level employees who are not smart enough to understand that their actions are illegal.
150
As claimed in "Creating an Ethical Culture," in order to prevent criminal activity in the workplace, a corporation must focus on creating:
A)a written code of ethics.
B)steps for employees to report misconduct.
C)antifraud screening tools to evaluate new hires.
D)a workplace culture of ethics and honesty.
151
As noted in "Creating an Ethical Culture," Enron did not have a written code of ethics or any formal compliance programs in place during the time that the company was engaged in criminal activities.
A)True
B)False
152
As profiled in "Outside-the-Box Ethics," the company used by the author to illustrate how to create and sustain an ethical culture is:
A)Intel.
B)Microsoft.
C)Cisco.
D)Verizon.
153
As described in "Outside-the-Box Ethics," the animated ethics training that featured action-packed visuals and witty songs to illustrate its points was a parody of the popular television show:
A)Lost.
B)American Idol.
C)Glee.
D)South Park.
154
As mentioned in "Outside-the-Box Ethics," the list of 100 Best Corporate Citizens is published annually by Forbes magazine.
A)True
B)False
155
The person who most readily came to mind as a business person who consistently places integrity even over ability in making hiring decisions, as explained in "Hiring Character," was:
A)Warren Buffett.
B)Bill Gates.
C)Jack Welch.
D)Sam Walton.
156
The collection of managers who work for Berkshire Hathaway, as maintained in "Hiring Character," are unusual in a number of ways, including that they:
A)are often self-educated.
B)work for lower salaries than most other executives.
C)are likely to be independently wealthy.
D)were trained in areas apart from those with which they are now involved.
157
Warren Buffett, as noted in "Hiring Character," did not display any aptitude for business or money until well into middle age.
A)True
B)False
158
As claimed in "Strategic Organizational Diversity," the major problem encountered in pursuing diversity in an organization is the:
A)difficulty in finding diverse, yet qualified, workers.
B)lack of agreement on a definition of diversity.
C)lack of investment in the concept of diversity by corporate management.
D)difficulty in directing a diverse population toward one goal.
159
According to "Strategic Organizational Diversity," an organization's quest for diversity should be guided by the organization's:
A)commitment to social responsibility.
B)desire to be a good corporate citizen.
C)drive to comply with the law.
D)specific goals and needs.
160
As noted in "Strategic Organizational Diversity," creating diversity within an organization should be seen as an end in itself.
A)True
B)False
161
As brought out in "Fiduciary Principles: Corporate Responsibilities to Stakeholders," one who has a duty to act primarily for another person's benefit is also known as a:
A)director.
B)fiduciary.
C)corporation.
D)limited liability partnership.
162
As noted in "Fiduciary Principles: Corporate Responsibilities to Stakeholders," corporate officers and directors owe fiduciary duties to:
A)shareholders.
B)employees.
C)vendors and suppliers.
D)customers.
163
As described in "Fiduciary Principles: Corporate Responsibilities to Stakeholders," violations of the fiduciary duty of good faith could remove directors' and officers' protections from liability.
A)True
B)False
164
As set out in "United Technologies' $1 Billion Employee College Plan," the benefits of the plan to UTC are all of the following except:
A)upgraded employee skills.
B)lower pension costs.
C)an educated workforce.
D)laid-off employees could find a job more easily.
165
As revealed in "United Technologies' $1 Billion Employee College Plan," in 2010 the company trimmed the plan by:
A)restricting it to married employees.
B)requiring 10 years of service for program eligibility.
C)eliminating the stock bonus for degree completion.
D)limiting grants to graduate-school degree programs.
166
As claimed in "United Technologies' $1 Billion Employee College Plan," the college plan currently enrolls about 10,000 employees
A)True
B)False
167
As described in "A Time for Ethical Self-Assessment," Siemens recently agreed to pay $1.6 billion to U.S. and European authorities due to charges that it:
A)routinely falsified documents to swindle investors.
B)ran a Ponzi scheme that defrauded thousands.
C)used bribes and kickbacks to secure public-works contracts.
D)frequently used payoffs to quiet internal whistle-blowers.
168
As noted in "A Time for Ethical Self-Assessment," when Enron higher-ups wished to move forward with certain dubious financial dealings they:
A)sought an exemption from the company's ethics policy.
B)ignored the company's ethics policy.
C)falsified documents to make it seem as though they were following the company's ethics policy.
D)re-wrote the company's ethics policy.
169
As claimed in "A Time for Ethical Self-Assessment," the "mirror test" is also known as "The Ethics of Prudence."
A)True
B)False





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