Chapter 8

Question 1

Corporations have the same rights and responsibilities as individuals. True or false?

Answer 1

True. All employees must obey laws and regulations defining acceptable business conduct

Question 2

Name something that should be thought about when Developing/Implementing a Code of Ethics/Conduct.

Answer 2

See slide 13

Question 3

The six core values often used in Corporate Codes of Ethics are

Answer 3

• Trustworthiness
• Respect
• Responsibility
• Fairness
• Caring
• Citizenship

Question 4

True or false: the Most Common Observed

Forms of Misconduct is company resource abuse.

Answer 4

False - it’s Personal business on company time. See slide 3

Question 5

Corporate culture without values and appropriate communication about ethics can facilitate individual misconduct. True or false?

Answer 5

True.

Ethical corporate culture does not evolve, but requires ethical polices.

Implementing a corporate ethics program promotes the corporation as a moral agent

Question 6

It is nearly possible to know all relevant laws. True or False

Answer 6

False. It is nearly impossible to know all relevant laws. Ethics programs increase ethical awareness.

Question 7

Name two Components of a Strong Ethics Program.

Answer 7

A strong ethics program includes:

-Written codes of conduct
Ethics officers to oversee the program

• Careful delegation of authority
• Formal ethics training
• Rigorous auditing, monitoring, enforcement, and revision of program standards

Question 8

Define an organization that is dubbed as a “bad barrel”.

Answer 8

When pressures to succeed create opportunities rewarding unethical decisiins

Question 9

Formal statements that describe what an organization expects of its employees are

Answer 9

Codes of

Conduct.

Question 10

Name one of the Minimum Requirements for Ethics/Compliance.

Answer 10

See slide 8

Question 11

Name a benefit Of Having

An Ethics Code

Answer 11

See slide 12

Question 12

difference between the Code of Ethics and Statement of Values.

Answer 12

Code of Ethics:
Most comprehensive; consists of general statements serving as principles and the basis for the rules in a code of conduct

Statement of values:
Serves the general public and addresses stakeholder interests

Question 13

Compliance Versus Values Orientation?

Answer 13

Compliance orientation: Requires employees identify with and commit to specific conduct. Uses legal terms, statutes, and contracts to teach the rules and penalties for noncompliance

Values orientation: Strives to develop shared values; focuses on ideals, such as accountability and commitment. Is more effective at creating ethical reasoning, the foundation of an organizational ethical culture

Question 14

Name one of the goals Of Successful Ethics Training Programs.

Answer 14

See slide 17

Question 15

Office managers must communicate and enforce ethical standards. True or false?

Answer 15

False: Top executives must communicate and enforce ethical standards

Question 16

Ethics training can empower employees. True or false?

Answer 16

True. Ethics training can:

• Educate employees about policies, expectations, laws, regulations, and general social standards
• Raise awareness of resources and support systems
• Empower employees

Question 17

Reporting systems are an example of effective programs employ various methods to measure effectiveness. True or false?

Answer 17

True.

• Observing employees
• Internal audits and investigations
• Surveys
• Reporting systems
• External audits

Question 18

Define one of the Common Design and Implementation Mistakes

Answer 18

• Failure to understand and appreciate goals
• Setting unrealistic/immeasurable objectives
• Unsupportive top management
• Ineffective or incomprehensible content
• Transferring an “’American” program to a firm’s international operations
• Designing a program that is little more than a series of lectures resulting in low recall

Question 19

To improve its ethical performance, a company must maintain how it makes decisions. True or false?

Answer 19

False. To improve its ethical performance, a company may change how it makes decisions. The key is to delegate authority carefully so the organization can achieve ethical performance

Question 20

What constitutes an ethics program to be “effective”?

Answer 20

Effective ethics program ensure that all employees understand and comply with the ethical culture

Question 21

A formal statement describing what an organization expects of its employees is called a(n)

Answer 21

Employee code of conduct.

Question 22

The key is to delegate authority carefully so the organization can achieve ethical performance. True or false?

Answer 22

True according to the book. To improve its ethical performance, a company may change how it makes decisions - centralize or decentralize them