Chapter 2

Question 1

Discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation

Answer 1

Ethics**

Question 2

Establishes the rules that the organization lives by

Answer 2

Code of Ethics**

Question 3

Application of ethical principles to human resource relationships and activities

Answer 3

Human Resource Ethics

Question 4

Implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves

Answer 4

Corporate Social Responsibility

Question 5

Concerns with possible future impact of an organization on society, including social welfare, the economy, and the environment

Answer 5

Corporate Sustainability**

Question 6

Systemic assessment of a company’s activities in terms of its social impact

Answer 6

Social Audit

Question 7

Prohibits the release of source selection and contractor bid or proposal information. Passed after reports of military contracts for $500 toilet seats

Answer 7

Procurement Integrity Act of 1988

Question 8

Outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations

Answer 8

Federal Sentencing Guidelines for Organizations of 1992

Question 9

The primary focus of the Act is to redress accounting and financial reporting abuses in light of recent corporate scandals.

Answer 9

Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002
Sarbanes Oxley Act**

Question 10

Congress believed that award programs are an effective method to encourage people with
information regarding violations of the law to come forward with the information to responsible law enforcement officials. The Act requires the SEC to provide an award to a qualifying whistleblower of no less than 10 percent, and no greater than 30 percent, of any sanction imposed against a violator of any securities laws

Answer 10

Whistleblower Protection**

They are always protected

Question 11

Passed in 2010, the Act has provisions relating to
executive compensation and corporate governance that directly and significantly impacts the executives, directors, and shareholders of publicly traded companies and continues the increased federal regulation of corporate governance and
executive compensation matters.

Answer 11

Dodd-Frank Wall Street Reform and Consumer Protection Act**

Question 12

A systematic, independent, and documented process for obtaining evidence regarding the status of an organizations ethical culture

Answer 12

Ethics Audit***

Question 13

What are the five common ways that companies may lead good employees to make unethical choices

Answer 13

1. Unsafe to speak up
2. Pressure to reach unrealistic performance targets
3. Conflicting goals provoke a unfairness
4. Ethical behavior is not part of routine conversation
5. Positive example isn’t set

Question 14

Three fundamental factors in handling ethics issues

Answer 14

1. Provide multiple channels for raising alarms
2. Eliminate fear of retaliation for those who raise questions
3. Ensure consistent investigation and resolution of all matters reported

Question 15

Regarding business ethics, what does “what you reward is what you get mean?”

Answer 15

A problem exists in regard to compensation because most companies do not link pay to ethical behavior

Question 16

Organizations with strong ethical cultures take steps to ensure that these are widely accessible, promoted, and followed by company leaders and employees?

Answer 16

Ethical Standards***

Question 17

Larger firms appoint these individuals
Keeps code on the front burner for employees
Ethics committees often established

Answer 17

Ethics Officer***

Question 18

The FSGO Act outlined an effective program

to educate employees on the company’s standards and procedures

Answer 18

Ethics Training**

Question 19

What are the tiers in Carroll’s Pyramid?

Answer 19

Philanthropic Responsibilities: (The top layer)
The responsibility is to proactively seek opportunities to make a positive contribution to society beyond profitability, compliance, and business ethics.

Ethical responsibilities: (The second from top)
Requires organizations to consider social and
environmental impacts of their operations and, to do no harm while pursuing business interests.

Legal responsibilities: (The third from top)
requires that organizations operate within the law at all
locations in which they do business.

Economic responsibilities: (The fourth from top)
Deliver an acceptable return for shareholders
(while contributing to local and global economies through their core business).**

Question 20

What piece of legislation was the first to provide corporate whistleblower protections that penalize corporations and their management personnel for retaliation?

Answer 20

Sarbanes Oxley Act**

Question 21

When corporations behave as if it has a conscience, how as a whole they behaved toward society.

Answer 21

Socially Responsible***