Hrm 522 week 11 final exam – strayer new

HRM 522 Week 11 Final Exam – Strayer New
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Chapters 7 Through 12
Chapter 7
1. Expert power usually stems
from
a. a superior's credibility with his or her subordinates.
b. the belief that a certain person has the right to exert influence and that certain others have an
obligation to accept it.
c. a person's ability to influence the behavior of others by offering them something
desirable. d. a person's ability to penalize the actions or behavior of another.
e. a person's perceptions that his or her goals or objectives are similar to another's.
2. Which of the following statements about power is true?
a. The five bases of power are mutually exclusive.
b. People generally use only one base of power to effect change in others.
c. Expert power exists when one person takes actions that will lead that person and others to
achieve their mutual objectives.
d. Power can be used to motivate individuals ethically or
unethically. e. The use of power is unethical.

3. An organization that delegates decision-making authority as far down the chain of command as
possible and has relatively few formal rules is
a. centralized.
b.
decentralized.
c. flat.
d. tall.
e. ethical.
4. Which of the following is not a characteristic of an ethical corporate culture?
a. Management and the board demonstrate their commitment to strong controls through their
communications and actions.
b. Every employee is encouraged and required to have hands-on involvement in the internal control
system. c. Management conducts itself in a way that is not consistent with the code of conduct.
d. Employees are expected to be in the communication loop through resolutions and corrective actions.
e. Employees have the ability to report policy exceptions anonymously to any member of the
organization.

5. Although both structures can create opportunities for unethical conduct, which organizational structure
tends to be more ethical?
a. Tall
b. Flat
c. Centralized
d. Decentralized
e. All organizational structures are equally ethical.
6. The ability to influence the behavior of others by offering them something desirable is best
described as a. coercive power.
b. reward
power. c. expert
power.
d. legitimate
power. e. referent
power.

7. An advantage of the decentralized organization is
that
a. the focus is on formal rules, policies, and procedures backed up with elaborate control
systems. b. there is a high level of bureaucracy.
c. each worker knows his or her job and what is specifically expected as well as how to carry out
designated tasks.
d. it is adaptable and can quickly respond to external
change. e. there is minimal upward communication.
8. When developing an ethical culture, there has to be
a(n)
element because every organization has
employees
that will try to take advantage if there is an opportunity for
misconduct. a. rules-based
b. statement of
mission c. ethical
d.
compliance
e. punitive

9. The apathetic organizational culture exhibits
a. high concern for people but minimal concern for
performance. b. little concern for people but a high concern
for performance.
c. minimal concern for people and
performance. d. high concern for people and
performance.
e. no concern for maintaining a cohesive organizational culture.
10. The exacting organizational culture is interested in
a. performance but has little concern for
employees. b. investors' impressions of
profitability.
c. maintaining a strong corporate
culture. d. employees and
performance.
e. employees' impressions.

11. Associating with others who are unethical and who have the opportunity to act unethically can lead to a
learning process known as
a.
compliance.
b.
misconduct.
c.
opportunity.
d. differential
equations.
e. differential
association.
12. Which of the following statements about corporate culture is
false?
a. Corporate culture refers to the patterns and rules that govern the behavior of an
organization and its employees, particularly the shared values, beliefs, and customs.
b. The values and ethical beliefs that actually guide the firm's employees tend not to be the same
ones that management states as defining the firm's culture.
c. Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that
take place in an organization.
d. The culture of an organization may be explicitly stated or
unspoken.
e. Failure to monitor or manage an organization's culture may foster unethical
behavior.

13. No formal dress codes, working late, participation in extracurricular activities, gestures, and legends
represent a. a complacent workplace.
b. codes of ethics.
c. a firm's organizational chart.
d. formal expressions of an organization's culture.
e. informal expressions of an organization's culture.
14. A cultural audit may be used to
identify a. how cultured a firm's
employees are. b. unethical
employees.
c. unethical organizations.
d. an organization's
culture. e. organizational
structure.

15. The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers.
A primary concern about these new incentives is
a. they will encourage too many employees to attempt to blow the whistle on firms, even those that
have done nothing wrong.
b. people do not generally respond at all to monetary incentives.
c. whistle-blowers might be tempted to report to the SEC with their reports and not report the misconduct
to the
company’s internal compliance program.
d. people may exaggerate their claims in order to get a reward.
e. the funds paid out to whistle-blower might bankrupt companies.
16. Marcus is the top-performing development director his non-profit organization has ever had. He possesses
countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would
likely have
over new development department
staff. a. coercive power
b. group power
c. legitimate
power d. expert
power
e. democratic power

17. bring together the functional expertise of employees from several different areas of the
organization on a single project.
a. Quality circles
b. Informal
groups c. Teams
d. Work
groups e.
Committees
18. Individuals, often from the same department, who band together for purposes that may or may not be
relevant to the organization are called
a. quality circles.
b. informal
groups. c. teams.
d. work
groups. e.
committees.

19. In order for whistle-blowing to be
effective, a. financial compensation must
be very high.
b. employees must wish ill on the organization for which they work.
c. lawmakers must make an effort to force employees to discuss details about the misconduct.
d. it requires that the individual have adequate knowledge of wrongdoing that could damage
society. e. it must occur at a very large multinational corporation.
20. Which of the following statements about group norms is false?
a. Group norms define the limit on deviation from group expectations.
b. Group norms have the power to force a strong degree of conformity among group members.
c. Management must carefully monitor the norms of all the various groups within the organization, as
well as the organization's corporate culture.
d. Sanctions may be necessary to bring in line a group whose norms deviate sharply from the overall
culture. e. Group norms never conflict with the overall organization's culture.

21. Management's sense of the organization's
culture a. is always the same as employees'
perceptions. b. is usually easily adopted by
employees.
c. is always readily evident to employees.
d. may be quite different from employees'
perceptions. e. is always different from
employees' perceptions.
22. Motivation is defined as
a. a person’s incentive or drive to work.
b. a force within the individual that focuses his or her behavior on achieving
a goal. c. personal ambition without regard to the impact on others.
d. a desire to be finished with a
project. e. individual goals.

23. When a foreman orders an assembly-line employee to carry out a task, which the employee perceives as
unethical yet the employee feels compelled to complete, the foreman is exercising
a. legitimate
power. b. expert
power.
c. reward power.
d. contingent punishment power.
e. noncontingent reward behavior.
24. To motivate employees, an organization offers to employees to work toward organizational
objectives. a. punishment; force
b. peer pressure; guilt
c. incentives;
encourage d. rewards;
bribe
e. threats; frighten

25. Which of the following cultures combines high levels of concern for people and performance?
a. Apathetic
culture b. Caring
culture
c. Integrative
culture d. Exacting
culture
e. Cooperative culture
26. Ethical concerns in centralized structures can occur because of
very little a. mobility.
b. upward
communication. c.
scapegoating.
d. downward
communication. e.
communication rigidity.

27. A high concern for people but minimal concern for performance can best describe the
culture.
a. caring
b.
apathetic
c. exacting
d.
shareholder
e. employee
28. The establishment of an ethics committee within an
organization a. is usually highly informal.
b. is usually organized around general business topics.
c. might raise ethical concerns or resolve ethical
dilemmas. d. usually always succeeds.
e. usually increases ethical tension.

29. Which of the following is not a form of retaliation commonly experienced by whistle-
blowers?
a. Relocation or
reassignment b. No
promotion or raises
c. The cold shoulder by
coworkers d. Exclusion from
work activities
e. Praise by supervisors for their honesty
30. are used to subdivide duties within functional areas of a
company. a. Work groups
b.
Individuals
c. Experts
d.
Consultants
e.
Committees

31. The leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement,

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33.
are satisfied by social and interpersonal relationships,
and activities.
a. Growth needs; relatedness
needs b. Personal needs; group
needs
c. Coercive needs; ethical needs
d. Relatedness needs; growth
needs e. Group needs; personal
needs
are satisfied by creative or
productive
34. Over the years, scholars have developed more than 100 definitions of culture. According to the text, all
have the following common elements:
a. Culture is shared, relatively stable, and is formed over a long period
of time. b. Culture is not shared, stable, and is formed over a long period
of time.
c. Culture is shared, not stable, and is formed over a long period of
time. d. Culture is shared, stable, and is formed over a short period
of time.
e. Culture is man-made, shared, not stable, and is formed over a short period of time.

35. Because researchers have defined culture so many different
ways, interchangeably.
a. cultural cues; management
b. cultural values;
anthropology c. cultural
values; culture
d. cultural cues; laws
e. cultural cues; management
and are often used
36. Both individual ethics and organizational ethics have an impact on an employee’s
a. productivity.
b. personal
happiness. c.
compensation.
d. fitness level.
e. ethical intention.

37. A values-based ethics approach to ethical corporate cultures relies
on a(n)
how customers and employees should be
treated a. set of laws
b. explicit mission
statement c. strong CEO
d. ethical audit
e. relaxed corporate culture
that defines the firm as well as
38. The idea that people learn ethical or unethical behavior while interacting with others who are a part of
their role-sets is referred to as
a. differential dissonance.
b. cognitive memory
dissonance. c. cognitive
association.
d. differential
association. e. casual
interaction.

39. The Sarbanes-Oxley Act
a. only applies to firms with over 50
employees. b. has institutionalized internal
whistle-blowing.
c. has placed more power under the Securities and Exchange
Commission. d. requires all organizations to make their financial
information public.
e. involves too many complicated steps for it to be feasible for most organizations.
40. The rule explains variation in employee conduct through generalizing on the percentage of
employees in any

given organization who will seek to do right versus how many will be
indifferent. a. 10-30-40-20
b. 20-30-
30-20 c.
40-10-
10-40 d.
10-40-
40-10 e.
80-20
41. Why do centralized organizations tend to be more ethical than decentralized ones? Can you think
of a situation or example in which a decentralized organization might be more ethical than a
centralized one?
42. How do societal expectations affect corporations and their ethical initiatives? Give an example
of a company that
had to alter a product or service because of society’s concerns about its health, moral, or social
impacts.
43. Describe the four organizational cultures and provide a company example of each organizational
culture.
44. Describe the different kinds of power. Are some types of power more likely to result in ethical
behavior than others?
45. How do group norms influence the ethical behavior of an organization? What happens
when the norms of a particular group conflict with the organization's corporate culture or
objectives?
Chapter 8
1. Fostering ethical decision making within an organization requires improving the firm's ethical
standards and 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.
2. Which of the following statements about codes of conduct is
false?
a. They are formal statements of what an organization expects of its
employees. b. They guarantee an ethical business climate.

c. They help employees determine what behaviors are
acceptable. d. They provide rules and guidelines for
employees to follow.
e. They should be specific enough to be reasonably capable of preventing misconduct.

3. A strong ethics program includes all of the following elements except
a. a clause promising good stock market
performance. b. a written code of conduct or
ethics.
c. formal ethics training.
d. auditing, monitoring, enforcement, and revision of
standards. e. an ethics officer to oversee the program.
4. In the absence of ethics programs, employees are likely to make decisions
based on 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.

5. are formal statements that describe what an organization expects of its employees in terms
of ethical behavior.
a. Mission
statements b. Codes
of conduct
c. Policies on
confidentiality d.
Environmental policies
e. The Federal Sentencing Guidelines for Organizations
6. What is not a common mistake when designing and implementing an ethics program?
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

7. A(n) orientation creates order by requiring that employees identify with and commit to specific
required
conduct, whereas
a(n)
a. obedience; values
b. compliance;
values c. legal;
values
d. values;
compliance
e. values; obedience
orientation strives to develop shared standards.
8. For an ethical compliance program to properly function,
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.

9. Which of the following is the most
comprehensive?
a. Code of values
b. Code of
conduct c. Code
of ethics
d. Statement of values
e. Statement of principles
10. At the heart of the Federal Sentencing Guidelines for
Organizations is a a. "tit-for-tat" philosophy that punishes
wrongdoing.
b. Golden Rule philosophy.
c. Iron Fist philosophy severely punishes wrongdoing.
d. carrot-and-stick philosophy that rewards efforts to improve
ethics. e. utilitarian philosophy of the greatest good for the
greatest number.

11. The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for
organizations that continually
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.
12. Which of the following legislation has increased the responsibilities on ethics officers and boards of
directors to monitor financial reporting?
a. Sarbanes-Oxley Act
b. Robinson Patman Act
c. Ethics Officer Responsibility
Act d. Sherman Antitrust Act
e. Enron Financial Responsibility Act

13. may be more inclined to engage in unethical organizational conduct because of social isolation
that creates insensitivity and a lower level of motivation to regulate ethical decision making.
a. Low-level employees
b. International
managers c. Top
managers
d. Government officials
e. Fortune 500 companies
14. Top managers tend to focus
on returns.
a. financial
performance b.
employee satisfaction
c. ethical performance
because their jobs and personal identity are often connected to
quarterly
d. the board of directors’ recommendations
e. adherence to the code of conduct

15. All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical
program
except
a. observation of
employees. b. internal
audits.
c. firing.
d. surveys.
e. reporting systems.
16. A code of ethics that does not address specific high-risk activities within the scope of daily
activities is a. sufficient.
b. inadequate.
c.
satisfactory.
d. acceptable as long as individual values prevent misconduct.
e. acceptable according to the Federal Sentencing Guidelines for Organizations.

17. Organizational can contribute to diminished employee trust and increased employee
turnover. a. leadership succession
b. compensation
policies c. ethics
programs
d. rules
e. misconduct
18. Most executives feel that which of the following is the primary reason for much of the unchecked
misconduct in business?
a. Bad employees
b. An inattentive board of
directors c. Customer pressures
d. Financial performance pressures
e. Inadequate ethics and compliance programs

19. Which of the following is an advantage of a values-based ethics program over a compliance-based one?
a. Employees learn to make decisions based on values such as fairness, compassion, respect, and
transparency. b. Diverse employees have differing values.
c. It requires employees to identify with and commit to specific required conduct.
d. A values orientation uses legal terms, statutes, and contracts that teach employees the rules and
penalties for noncompliance.
e. Values and compliance programs both take basically the same approach.
20. Which of the following is a common mistake made in implementing an ethics program?
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

21. 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?
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
22. Organizations can become "bad barrels" not because of unethical individuals but
because 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.”

23. Which of the following statements about training is false?
a. It can educate employees about the firm's policies and expectations, as well as about relevant
laws and regulations and general social standards.
b. It can dictate personal ethics on the job.
c. It can make employees aware of available resources, support systems, and designated personnel
who can assist them with ethical and legal advice.
d. It can empower employees to ask tough questions and make ethical decisions.
e. It can affect the influence of organizational culture, coworkers and superiors, and opportunity.
24. Which of the following is not an advantage of having a comprehensive code of conduct?
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.

25. A generates an ethical program that creates order by requiring that employees identify with and
commit to
specific required conduct using legal terms and
statutes. a. values orientation
b. code of conduct
c. statement of
values d. code of
ethics
e. compliance orientation
26. In the long run,
a(n)
orientation may be better for companies, perhaps because it increases
employees’
awareness of ethics issues at
work. a. code
b. obedience
c.
compliance
d. values
e. individual

27. Which of the following is not a main goal of successful ethics
programs?
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.
28. The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is
usually the a. CEO.
b. president.
c. immediate
supervisor. d. ethics
officer.
e. Chairman of the board.

29. To ensure that an ethics program addresses the needs of the average employee, it should include all of the
following
except
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.
30. 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.
a. Training
programs b. Mission
statements c. Codes
of conduct
d. Hotlines
e. Boards of directors

31. One of the main reasons employees do not report observed
misconduct is a. apathy.
b. most employees do not observe any
misconduct. c. fear of retaliation.
d. laws and regulations protect the employee committing the
misconduct. e. hotlines do not work well.
32. 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
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.

33. Which of the following strives to create order by requiring that employees identify with and commit
to specific required conduct?
a. Conduct
orientation b. Values
orientation
c. Coercive orientation
d. Obedience
orientation e.
Compliance orientation
34. Because top managers may be more insensitive to ethical issues due to their focus on financial
performance, the
FSGO guidelines suggest that ethics officers report to the
instead. a. stock market
b. board of
directors c. middle
managers d.
customers
e. stakeholders

35. With regard to ethics, training and communication initiatives should
reflect 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.
36. What are some of the ways that organizations can develop effective ethics programs?
ANSWER: Refer to Table 8-1, Minimum Requirements for Ethics and Compliance
Programs.
1. Standards and procedures, such as codes of ethics, that are reasonably
capable of detecting and preventing misconduct
2. High-level personnel who are responsible for an ethics and compliance
program
3. No substantial discretionary authority given to individuals with a
propensity for misconduct
4. Standards and procedures communicated effectively via ethics training
programs
5. Systems to monitor, audit, and report misconduct
6. Consistent enforcement of standards, codes, and punishment
7. Continuous improvement of the ethics and compliance program

37. How can ethical dilemmas and behavioral simulations help employees make more ethical decisions?
ANSWER: Many feel “hands on” training when employees are forced to confront actual or
hypothetical ethical dilemmas helps them understand how their organization
would like them to deal with potential problems. Lockheed Martin, for example,
developed training games that include dilemmas that can be resolved in teams.
Each team member offers his or her perspective, thereby helping other team
members fully understand the ramifications of a decision for coworkers and the
organization.
38. 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.

39. 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?
40. 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?
Chapter 9
1. Which of the following does not have a significant impact on the success of an ethics program?
a. Senior management’s ability to successfully incorporate ethics into the organization
b. The quality of
communication c. The size of
the company
d. The content of the company’s code of ethics
e. The frequency of communication regarding the ethical code and program
2. Which of the following statements about ethics audits is false?
a. They provide an opportunity to measure conformity to the firm's desired ethical standards.
b. Social audits and ethics audits perform basically the same function, so organizations can
use them interchangeably.
c. They provide an objective method for demonstrating a company's commitment to improving strategic
planning, including its compliance with legal and ethical standards and social responsibility.
d. They can be a component of social audits.
e. They are systematic evaluations of an organization's ethics program and performance to determine
whether it is effective.

3. Which of the following is a possible unintended consequence of an organization’s focusing more on ethics
planning
than on implementation?
a. Unethical conduct is viewed as acceptable
behavior. b. The government implements its own
audits.
c. The ethics program is poorly
designed. d. Employees become
annoyed.
e. The implementation process incurs large costs for the organization.
4. A(n) is a tool that companies can employ to identify and measure their ethical commitment to
stakeholders. a. ethics audit
b. social audit
c. financial audit
d. performance
audit e. external
audit

5. Which of the following is not a step in the ethics auditing
process?
a. Secure commitment of top executives and directors.
b. Review organizational mission, goals, values and policies, and define ethical
priorities. c. Report the results to the U.S. Sentencing Commission.
d. Collect and analyze relevant
information. e. Verify the results.
6. Which of the following is a statement that attests that the financial statements made in an audit are
fairly stated, without limitations?
a. Adverse
opinion b.
Qualified opinion
c. Unqualified
opinion d. Favorable
opinion
e. Disclaimer of opinion

7. Under the
statements
.
, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading
financial
a. Sherman Antitrust
Act b. Ethical
Compliance Act c.
Robinson-Patman Act
d. Sarbanes-Oxley Act
e. Sherman Antitrust Act
8. During which of the following steps of the ethics auditing process does an organization identify the tools or
methods
for measuring progress in improving employees’ ethical decisions and conduct?
a. Secure commitment of top managers and
directors b. Establish a committee to oversee the
audit
c. Define the scope of the audit
d. Collect and analyze relevant
information e. Verify the results

9. Any attempt to verify outcomes and to compare them with standards can be
considered a(n)
although many smaller firms do not use this
word. a. ethical
b.
auditing
c. formal
d. informal
e. accounting
activity,
10. are a primary stakeholder group and should be included in the ethics auditing process because
their loyalty determines an organization's success.
a.
Customers
b.
Employees
c. Special interest
groups d. Competitors
e. Legislators

11. The concept of ethics auditing emerged from the movement to audit and report on companies'
broader initiatives.
a. product
development b. legal
compliance
c. risk
management d.
public relations
e. social responsibility
12. Which of the following is probably the best way for a manager to provide good ethics leadership?
a. Hire an ethics officer
b. Write a code of
conduct c. Conduct
ethics audits
d. Set a good example
e. Only hire good employees

13. Which of the following is not a benefit of ethics
auditing? a. It can improve a firm's performance and
effectiveness. b. It can increase a firm’s
attractiveness to investors.
c. It can identify potential risks.
d. It can harm relationships with stakeholders.
e. It can reduce the risks associated with misconduct.
14. The
word
implies a balanced organization that makes ethical financial decisions and also is ethical
in more
subjective matters of corporate
culture. a. compliance
b. integrity
c. financial
management d.
corporate culture
e. transparency

15. Which of the following is not a measure of ethical climate?
a. Collective skill
b. Collective ethical
sensitivity c. Collective
character
d. Collective judgment
e. Collective moral motivation
16. During which step of the auditing process should a firm examine all documents that make explicit
commitments to ethical, legal, or social responsibility?
a. Secure commitment of top managers and
directors. b. Establish a committee to oversee the
audit.
c. Define the scope of the audit process.
d. Review organizational mission, goals, values, and
policies. e. Verify the results.

17. A(n) is a financial accounting firm that offers social auditing services or a nonprofit special
interest group
with auditing experience that verifies the results of ethics auditing data
analysis a. stakeholder
b. ethics audit
consultant c. best
practices expert d.
financial consultant
e. board of directors
18. The process of verifying the results of an audit should involve standard procedures that
control the information.
a. completeness
b. effectiveness and
efficiency c. reliability and
validity
d. independence
e. veracity
of the

19. Which of the following is not one of the top challenges facing CEOs
today? . a. Keeping pace with regulation
b. Protecting against risks
c. Managing and utilizing social
media d. Gaining adequate
compensation
e. Managing reputation
20. Two useful indicators for assessing employee
issues are a. staff turnover and stock price.
b. staff turnover and employee
satisfaction. c. staff turnover and
honesty.
d. employee satisfaction and
attendance. e. employee satisfaction
and productivity.
21. At which stage of the ethics auditing process would a hospital conduct focus groups with management,
doctors, nurses, related health professionals, support staff, and patients?
a. Collect and analyze relevant information
b. Review organizational mission, goals, values, and
policies c. Identify stakeholders
d. Report the
results e. Verify
the results

22. While ideally the board of directors financial audit committee conducts ethics audits, in most firms
they are conducted by
a. managers or ethics
officers. b. executive
officers.
c. the CEO.
d. outside consultants.
e. secondary stakeholders.
23. Because ethics and social audits
are
, there are few standards that a company can apply with
regard to
reporting frequency, disclosure requirements, and remedial actions that it should take in response
to results. a. not necessary
b. expensive
c. required by
law d.
mandatory
e. voluntary

24. What are the three Triple Bottom Line factors incorporated into the Global Reporting Initiative
framework?
a. Economic, social, personal indicators
b. Political, social, and environmental indicators
c. Economic, social, and environmental indicators
d. Political, individual, and environmental
indicators e. Political, individual, and personal
indicators
25. What should be the first step in the auditing
process?
a. Secure the commitment of top executives and
directors b. Define the scope of the audit
c. Establish a committee to oversee the
audit d. Collect and analyze data
e. Review organizational mission, goals, values, and policies

26. Retaliation against employees that report misconduct is a problem in
cultures.
a. weak ethical
b. strong ethical
c. high power
distance d. diverse
e. international
27. Which of the following is not a phase of escalation during an ethical disaster?
a. The firm's discovery of the
misconduct b. Ethical issue recognition
c. The firm's response to the
misconduct d. The decision to act
unethically
e. The firm's decision to conduct an ethics audit

28. Which of the following is not a technique for collecting evidence during the ethics
audit?
a. Ratio analysis
b. Observing the data-collection
process c. Publishing the results of
the audit
d. Examining internal and external documents
e. Confirming information in the firm's accounting records
29.
report.
is an independent assessment of the quality, accuracy, and completeness of a company's social
or ethics
a. Publication
b.
Verification
c. Auditing
d. Analysis
e. Validation

30. What should be the final step in the ethics auditing process?
a. Define the scope of the audit
b. Secure the commitment of top managers and
directors c. Collect and analyze data
d. Report the
findings e. Verify
the results
31. Ethics audits can help companies identify
potential before they reach crisis dimensions.
a. competitive
advantages b. risks and
liabilities
c. productivity issues
d. technological
glitches e. market
opportunities
so they can implement plans to eliminate or reduce
them

32. During the data-collection phase of the audit, the primary objective is to generate a variety of opinions
about how the company is perceived and whether it is
a. fulfilling employee benefits
commitments. b. bringing in new
customers.
c. meeting profit projections.
d. meeting earnings projections.
e. fulfilling stakeholders' expectations.
33. Independent verification of the ethics audit is important because it lends the
report a. credibility and formality.
b. credibility and
reliability. c. credibility
and objectivity. d.
objectivity and civility.
e. objectivity and reliability.

34. When The Gap posts the results of its ethics audit on its web site, it is engaged in which of the following
steps of the ethics auditing process?
a. Submit the results to the U.S. Sentencing
Commission b. Define the scope of the audit
c. Collect and analyze relevant
information d. Verify the results
e. Report the results
35. While social reports often discuss issues related to a firm's performance in the four dimensions of social
responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower
focus on assessing and reporting on a firm's performance in terms of
a. ethical and legal conduct.
b. environmental
performance. c. financial
performance.
d. customer
satisfaction. e. ethical
misconduct.
36. Compare and contrast ethics auditing and financial auditing. How can the tools of financial auditing be
applied to ethics audits?

37. Explain the benefits and risks of ethics auditing.
38. How can companies secure stakeholder input during an ethics audit? Why is it important to do so?
39. Describe the process of conducting an ethics audit in detail.
40. What is the Global Reporting Initiative? What is its goal? Why has it grown in importance?
Chapter 10
1. identified four cultural dimensions that can have a profound impact on the business
environment:
individualism/collectivism, power distance, uncertainty avoidance, and
masculinity/femininity. a. Milton Friedman
b. Abraham
Maslow c. Adam
Smith
d. Geert Hofstede
e. John Maynard Keynes
2. products encourage consumers to return and buy more. This approach is also known as
planned obsolescence.
a. Laissez-
faire b.
Dumping
c. Collectivistic
d. Made-to-
break e.
Multinational

3. is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems
that keep
commerce in equilibrium. It is also known as the “invisible
hand.”
a.
Consumerism
b. Cultural
relativism c. Social
democracy d.
Laissez-fair
e. Bimodal wealth
distribution
4. assumes that humans may not act rationally because of genetics, learned behavior, and rules of
thumb. a. Rational economics
b. Socialism
c. Cultural
relativism d.
National culture
e. Behavioral economics

5. Which of the following statements about multinational corporations (MNCs) is false?
a. MNCs are corporate organizations that operate on a global scale without significant ties to any one
nation or region.
b. MNCs are inherently unethical and always do harm in the countries in which they operate.
c. MNCs are characterized by a global strategy of focusing on opportunities throughout the world.
d. Some MNCs are so large and powerful that their revenues are greater than the gross domestic
products of many countries.
e. Because of their size and power, MNCs have been the subject of much criticism and the source of a
number of ethical issues.
6. Increasing the wealth gap between nations and misusing and misallocating scarce resources are
ethical issue accusations related to
a. cultural differences.
b. multinational
corporations. c.
consumerism.
d. legal differences.
e. international negotiations.

7. Which of the following is not a criticism of or charge against multinational corporations (MNCs)?
a. They transfer jobs overseas, where wage rates are
lower b. They increase the gap between rich and poor
nations
c. They pay excessively high taxes everywhere
d. They exploit the labor markets of host countries
e. They have an unfair advantage when competing with local businesses
8. Which of the following is a measure taken by governments to curtail MNC practices that create
ethical issues?
a. Levying import taxes to lower the prices MNCs charge for their
products b. Halting the establishment of minimum wage laws
c. Avoiding the United Nations' monitoring
efforts d. Preventing the formation of labor
unions
e. Imposing export taxes to force MNCs to share more of their profits

9. occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich
and a large number of poor people with very few resources.
a.
Communism
b. Socialism
c. Bimodal wealth
distribution d. A two-class
social structure e. Laissez-
faire capitalism
10. An unconscious reference to one's own cultural values, experiences, and knowledge is referred
to as the a. cultural reference criterion.
b. unconscious cultural
criterion. c. cultural-self
criterion.
d. self-reference criterion.
e. unconscious cultural-self criterion.

11. When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in
which you are operating are rationalizations businesspeople sometimes offer for straying from their own
ethical values when doing business abroad. This practice is called
a. self-reference
criterion. b. country
cultural values. c.
consumerism.
d. cultural
relativism. e.
dumping.
12. involves transactions across national boundaries. It is a practice that brings together people
who have different cultures, values, laws, and ethical standards.
a. Global business
b. Country cultural
values c. Social
democracy
d. Cultural relativism
e. Bimodal wealth distribution

13. What concept refers to economic theories advocating the creation of a society where wealth and
power are distributed evenly, relative to the amount of work expended in production?
a. Rational
economics b.
Socialism
c. Capitalism
d. Rational
capitalism e.
Fascism
14. Risk compartmentalization occurs
when
a. companies place their most problematic employees into separate profit centers so that they cannot
influence one another to act unethically.
b. all profit centers within a corporation are aware of the code of ethics.
c. all profit centers within an organization become aware of the consequences of competitors' actions.
d. various profit centers within an organization become unaware of the consequences of their actions
on the firm as a whole.
e. ethics and compliance programs reduce the risk of misconduct.

15. has been codified in a United Nations document and is defined as an inherent dignity with
equal and inalienable rights as the foundation of freedom, justice, and peace in the world.
a. Cultural
relativism b.
Human rights
c.
Consumerism
d. Dumping
e. Health care
16. Power distance dimension refers to the “power inequality” between superiors and subordinates.
Which of the
following countries probably ranks high on the power distance scale?
a. Saudi
Arabia b.
Austria
c. England
d.
Denmark
e. Sweden

17. Who argued during the 1930s that the state could stimulate economic growth and improve stability in
the private sector?
a. Adam Smith
b. John Maynard
Keynes c. Milton
Friedman
d. Herbert
Hoover e. Geert
Hofstede
18. The practice of charging high prices for products sold in home markets while selling the same products
in foreign markets at low prices, which do not cover the costs of exporting, is known as
a. price
discrimination. b.
price gouging.
c. dumping.
d.
skimming.
e. loading.

19. assume(s) that a the market, through its own inherent mechanisms, will keep commerce in
equilibrium. a. Social democracy
b. Laissez-faire
economics c. Economics
d. Multinational
corporations e. Rational
economics
20. Those who ascribe to
consumerism
a. believe that consumers should purchase everything they can
afford. b. do not believe in taxes on locally made products.
c. believe that consumers should own the means of production.
d. believe that consumers, not producers, should dictate the economic structure of a
society. e. believe that corporations should have the freedom to do whatever they
want.
21. is based upon the assumption that people are predictable and will maximize the utility of their
choices relative to their needs and wants.
a. Rational
economics b.
Socialism
c. Capitalism
d. Behavioral
economics e.
Consumerism
22.

allows for private ownership of property and features a large government equipped to offer such
services as education and health care to its citizens
a. Democracy b.
Communism c.
Socialism
d. Capitalism
e. Social democracy.
23. assumes that economic decisions are influenced by human
behavior. a. Rational economics
b. Socialism
c.
Capitalism
d. Rational capitalism
e. Behavioral economics

24. refers to how members of a society respond to ambiguity. A high score means that a culture
tends to minimize risk-taking.
a. Rational
economics b.
National culture
c. Bimodal wealth
distribution d. Power
distance
e. Uncertainty avoidance
25. The formed in 1995 and administers its own trade agreements, facilitates future trade negotiations,
settles
trade disputes, and monitors the trade policies of member
nations a. International Monetary Fund
b. United Nations
c. World Trade Organization
d. North American Free Trade
Act e. European Union

26. What is a major role of the International Monetary Fund
(IMF)?
a. It determines the credit ratings of countries.
b. It is the lender of last resort for individuals who cannot secure other types of
loans. c. It functions as a collection agent for global banks.
d. It makes short-term loans to member countries that have deficits and provides foreign
currencies for its members.
e. It provides mortgage loans to international home buyers.
27. Which of the following organizations emerged from the Bretton Woods agreement of 1944, where a
group of international leaders decided that the primary responsibility for the regulation of monetary
relationships among national economies should rest in an extra-national body?
a. International Monetary
Fund b. United Nations
c. World Trade Organization
d. North American Free Trade
Act e. European Union

28. These values were developed by a reverend and the UN Secretary General. They express support for
universal human rights.
a. The Global Sullivan
Principles b. Sarbanes-Oxley
Act
c. FSGO
d. Global common
values e. UN Global
Compact
29. What is the purpose of the UN Global Compact?
a. To promote free trade around the world
b. To support international banking
institutions c. To uphold the principle of
consumerism
d. To provide legal representation to international corporations facing
lawsuits e. To promote human rights, sustainability, and eradicate
corruption

30. What is the AACSB?
a. A major international institution regulating banks around the
world b. An accrediting institution for organizational ethics
c. A non-political international governing body
d. An international organization that promotes a set of principles promoting the teaching of
responsible management in business schools
e. A group that promotes sustainability and environmental awareness
31. As business facilitates exchanges, consumption beyond basic needs will increase globally. The
important issues related to consumerism include all but which of the following?
a. What are the impacts of production on the environment, on society, and on individuals?
b. What are the impacts of certain forms of consumerism on the environment, on society, and on
individuals?
c. How much of what we deem necessary for consumption is influenced by corporations?
d. What are necessities and what are luxuries?
e. What are the impacts of poor countries' consumption patterns on wealthy countries?

32. Which two developing countries are expected to generate some of the largest increases in
consumption in the future?
a. The United States and
Russia b. Russia and China
c. China and United
States d. Brazil and
Russia
e. China and India
33. According to the World Trade Organization, which of the following products and services are most
vulnerable to protectionism?
a. Textbooks and other school
supplies b. Travel agencies
c. Music and dance
d. Intellectual property
e. Shoes, cars, and steel

34. Which of the following is not an article in the UN Human Rights Declaration?
a. Freedom of religion
b. The right to work in favorable
conditions c. The right to electricity and
running water
d. The right to a home adequate for health and well-being
e. Mothers and children being entitled to a special level of care
35. The growth of the Internet and differing security laws between countries has led to an increase in
concern for the human right of
a. religion.
b. a secure
job. c.
healthcare.
d. privacy.
e. freedom of speech.

36. Which of the following is not a key area of global ethical risk, as outlined by the Eurasia
Group?
a. Political instability
b. Strained relations with China
c. Instability in emerging markets
d. Unequal levels of child labor laws
e. Outlook for Euro-zone countries remains weak
37. What is a living wage?
a. The minimum wage that a worker requires to meet basic
needs. b. The wage at which the average worker can live
really well.
c. It is a synonym for minimum wage.
d. The wage received by child workers in order to stay
alive. e. A wage given to workers entirely in the form
of food.

38. The benefit of healthcare is being debated as to whether it is a right or privilege. Which of the following
countries does not consider health care to be a right?
a. The United
States b. France
c. Sweden
d.
Germany
e. Canada
39. The was a result of a meeting in which international leaders decided that primary responsibility for
the
regulation of monetary relationships among nations should rest in an external
body. a. United Nations
b. North American Free Trade
Agreement c. World Trade Agreement
d. World Bank
e. International Monetary Fund

40. Which of the following has the power to enact legally binding ground rules for international commerce
and trade policy?
a. Global Sullivan
Principles b. World Trade
Organization
c. Global Sullivan
Organization d. Federal
Trade Commission
e. Global Commerce Association
41. Why are many international business ethics issues different from domestic ethical issues?
global firm cannot succeed simply by applying its domestic ethical programs to other global environments.
Although ethical issues such as honesty and integrity are common to most
countries, differences in laws, political systems, and cultures require a more
targeted approach to ethical decision making. Global ethics is not a “one size fits
all” concept.

42. How can differences in two countries' cultures create ethical issues in business?
43. Discuss the ethical issues associated with multinational
corporations.

44. What are the roles of the IMF and the WTO in encouraging, monitoring, and regulating international
trade?
45. What is dumping and why is it considered anticompetitive? Does the United States allow dumping?
Chapter 11
1. The leader demands instantaneous obedience and focuses on achievement, initiative, and
self-control. a. democratic
b.
coachi
ng c.
affiliati
ve d.
coerciv
e
e.
pacesetti
ng
2. Which of the following types of leaders attempts to create employee satisfaction through bartering or
negotiating for desired behaviors or level of performance?
a. Pacesetting
leaders b.
Coercive
leaders
c. Transactional
leaders
d. Transformational
leaders e.
Transmogrified
leaders
3. Which of the following is not a habit of ethical leaders?
a. They are primarily concerned with
themselves. b. They are proactive.
c. They have a passion to do right.
d. They are concerned with stakeholders'
interests. e. They are role models for
organizational values.

4. Which of the following leadership types has a strong influence on coworker support and building an
ethical culture through increasing employee commitment and fostering motivation?
a. Transformational
leaders b. Transactional
leaders
c. Coercive leaders
d. Pacesetting leaders
e. Authoritative
leaders

5. A coaching leader builds a positive climate by
a. valuing people, their emotions, and their needs.
b. focusing on communication across all layers of the organization.
c. inspiring employees to follow their departmental leaders without
question. d. focusing on achievement, initiative, and self-control.
e. developing skills for success, delegating responsibility, and issuing challenging assignments.
6. Which leadership type values people, their emotions, and their needs and relies on friendship and trust
to promote flexibility, innovation, and risk taking?
a. Authoritative
leadership b. Coaching
leadership
c. Pacesetting
leadership d. Coercive
leadership
e. Affiliative leadership

7. Sherry's leadership style often creates a negative working climate because of the high standards she sets.
Sherry is most likely a(n) leader.
a. autocratic
b.
democratic
c.
pacesetting
d.
empathetic
e. coercive
8. are a primary influence on employee’s ethical behavior because they are role models for the
organization’s
values.
a. Friends
b.
Parents
c. Peers
d.
Coworkers
e. Leaders

9. As one of the seven habits of strong ethical
leaders,
is “the glue that holds ethical concepts together.”
This
trait can be developed early in life or developed over time through
experience. a. adequate compensation
b. good employees
c. the passion to do
right d. charisma
e. a great education
10. The leader can create a negative climate because of the high standards that he or she sets. This
style works
best for attaining quick results from highly motivated individuals who value achievement and take
initiative. a. authoritative
b. affiliative
c.
democratic
d. coaching
e. pacesetting

11. The of an organization can influence the acceptance of, adherence to, transmittal, and
monitoring of
organizational norms, values, and codes of
ethics. a. nation of origin
b. locus of
control c.
leadership style
d. production
methods e.
opportunity
12. Ethical leadership should be based
on
a. holistic thinking that embraces the complex issues facing firms
every day. b. a strong shareholder desire for profits.
c. the opinions of a leader who defines success in terms of group
gratification. d. short-term thinking that looks at the firm’s health on a
day-to-day basis.
e. people who embrace a transactional style of leadership.

13. A fundamental problem in traditional personal character development is that specific vales are used to
teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be
respected. A solution is
a. to teach more general values to develop a set of basic beliefs.
b. to ignore moral philosophies and to train solely based on the organization’s code of conduct.
c. to teach completely different values and skills in different cultural environments.
d. to teach individuals intellectual skills that address the complexities of ethical issues in business.
e. to teach individuals the literary canons of the major philosophers from both western and eastern religions.
14. Strong ethical leaders have a passion for all of the following
except to a. do the right thing.
b. be proactive
c. consider stakeholder interests
d. be role models for the organization and its
employees. e. satisfy shareholders before other
stakeholder groups.

15. Leaders whose decisions and actions are contrary to the firm's values send a
signal a. that the firm's values are trivial or irrelevant.
b. that they are providing a good example of what not
to do. c. that the firm's corporate culture is highly
important.
d. that they are working toward improving the ethical culture of the
firm. e. that they care about the environment.
16. Which attribute of ethical leaders will not be effective unless the leader is personally involved in the
organization’s
key ethical decisions?
a. Stakeholder
compassion b. Proactive
leadership
c. Transparency
d. Moral
philosophy e.
Compensation

17. Which type of leader relies on participation and teamwork to reach collaborative decisions?
a.
Transformational
b. Coercive
c.
Democratic
d. Coaching
e. Pacesetting
18. What is not a necessity for strong ethical leaders to make good decisions?
a. Complete
information b.
Courage
c. Experience making the right
decisions d. Knowledge
e. The ability to coerce subordinates

19. Which of the following is not a way to avoid groupthink in small-group decision making?
a. Express the need to examine all
alternatives. b. Assign one person to be
"Devil's advocate".
c. Discourage team members from discussing the group's ideas with people outside the
group. d. Set up a number of independent groups to work on the same issue.
e. Emphasize to each team member that he or she is a "critical evaluator" with the responsibility to
express opinions and objections freely.
20. is the ability or authority to guide and direct others toward a
goal. a. Leadership
b.
Collaboration
c. Democracy
d.
Transparency
e. Pacesetting

21. These leaders are characterized as having superficial charm, no conscience, grandiose self-worth,
little or no empathy, and enjoy flouting rules.
a. Unethical leaders
b. Psychopathic
leaders c. Apathetic
leaders
d. Ethical leaders
e. Charismatic leaders
22. This occurs when there are two or more positions on an ethical
decision. a. Ethical leadership
b. Competing
leadership c. Ethical
conflicts
d. Empowerment
e. Interpersonal communication

23. Leaders having a(n) conflict management style are highly assertive and not very
cooperative. a. Accommodating
b. Avoiding
c.
Collaborating
d. Competing
e. Compromising
24. Leaders having an accommodating conflict management
style are a. Highly assertive and not very cooperative.
b. Not effective because they avoid conflict at any costs - even if it leads to
misconduct. c. Highly cooperative but non-assertive.
d. In between the assertiveness and cooperativeness
dimensions. e. Cooperative and assertive.

25. Leaders with
a(n)
conflict management style desire to meet the needs of stakeholders and strongly
adhere to
organizational values and
principles. a. Avoiding
b. Competing
c. Compromising
d.
Accommodating
e. Collaborating
26. A -based culture encourages employees to express concerns, bring up ethical issues, and take a
proactive
approach toward resolving
conflicts. a. Values
b. Profits
c. Consumers
d.
Shareholders
e.
Stakeholders

27. and reporting are two major dimensions of ethical
communication. a. Collaboration
b.
Transparency
c. Recognition
d. Listening
e. Compromising
28. is a two-way process in which the communicator communicates with superiors and
subordinates. a. Cooperation
b. Transparency
c. Leader-follower
congruence d. Reporting
e. Collaboration

29. The four categories of communication include all of the following
except a. Reporting
b. Small group
communication c.
Nonverbal communication
d. Interpersonal
communication e. Listening
30. occurs when one or more group members feel pressured to conform to the group's decision
even if they personally disagree.
a. Group polarization
b. Leader-follower
congruence c. Groupthink
d.
Competition
e. Conflict

31. When a group is more likely to move toward a more extreme position than the group members might
have done individually, this is referred to as
a. Leader-follower
congruence b. Groupthink
c. Values-based
culture d. Ethical
leadership
e. Group polarization
32. This occurs when leaders and followers share the same vision, ethical expectations, and objectives for the
company. a. Groupthink
b. Leader-follower
congruence c. Group
polarization
d. Values-based
culture e. Ethical
leadership

33. provide(s) important guidelines for employees on how to act in different
situations. a. Leader-exchange theory
b. Small group
communication c.
Interpersonal communication
d. Codes of ethics
e. Leader-follower congruence
34. Gossip, manipulation, playing favorites, and taking credit for another's work are all examples commonly
associated with
a. Organizational
politics b. Political
skills
c.
Competitiveness
d. Groupthink
e. Ethical conflict

35. can be used to promote organizational goals and help rather than hinder other
employees. a. Office politics
b. Political skills
c. Ethical
conflict d.
Democracy
e. Coercion
36. leaders are passionate about the company, live out corporate values daily in their behavior in the
workplace, and form long-term relationships with employees and other stakeholders.
a.
Authentic
b.
Coaching
c.
Transformational
d. Transactional
e. Pacesetter

37. All of these are true about feedback
except
a. Most companies recognize the need for organizational leaders to provide feedback to employees.
b. Most companies recognize the need for organizational leaders to get feedback from their employees.
c. Feedback can occur through informal methods like a simple conversation or through more formal
systems such as employee performance evaluations.
d. Employee feedback can be generated in many different ways, including interviews, anonymous
surveys, ethical audits, and websites.
e. Negative feedback is important to inform employees of weaknesses and provide constructive
ways for improving them.
38. leaders communicate a sense of mission, stimulate new ways of thinking, and enhance as well as
generate new learning experiences.
a. Authentic
b. Democratic
c.
Transformational
d. Transactional
e. Cooperative

39. The most effective leaders possess the ability to manage themselves and their relationships with others
effectively, a skill known as
a. Conflict
management b. Group
theory
c. Collaboration
d. Emotional intelligence
e. Leader-follower theory
40. These leaders are passionate about the company, live out corporate values daily in their behavior in the
workplace, and form long-term relationships with employees and other stakeholders.
a.
Transactional b.
Compromising
c.
Transformational
d. quantitative
e. Authentic

41. The acronym RADAR stands
for
a. Recognize, Answer, Discourage, Avoid, &
Recover b. Recognize, Answer, Detect, Avoid, &
Recover
c. Recover, Answer, Discourage, Avoid, &
Recognize d. Recognize, Avoid, Detect, Answer,
& Recover
e. Recover, Avoid, Detect, Answer, & Recognize
42. From an ethical standpoint, leaders should take time during this step of the RADAR model to fix any
weaknesses in the ethics program and develop improved ways of detecting misconduct.
a. Detect
b.
Answer
c.
Recovery
d. Avoid
e. Recognize

43. This step of the RADAR model involves responding to the discovery of an ethical dilemma through
communication both internally and externally.
a. answer
b.
recover
c.
recognize
d. avoid
e. detect
44. Which two steps of the RADAR model occur when a firm is faced with an ethical conflict or
dilemma. a. recognize & avoid
b. answer &
recover c. detect &
avoid
d. answer & detect
e. recover and detect

45. Many managers are reluctant to engage in this step of the RADAR model because they fear doing so
will uncover questionable conduct that could put the firm in an unfavorable light.
a.
avoid
b.
recover
c. answer
d. detect
e.
recognize
Essay
46. Discuss the role of leadership in understanding and executing ethical decision making in organizations.
47. Describe the RADAR model, discussing key objectives needed to be obtained for each step of the model.

48. Discuss the differences between the five styles of conflict management and provide an example for each
conflict management style.
49. Discuss the differences between groupthink and group polarization, providing examples of each.
50. Describe and differentiate between a compliance-based approach and an integrity-based approach to
leadership.
Which approach is preferred, justify your response.
Chapter 12
1. All of the following are facts about water pollution, except:
a. Projected increases in fertilizer use suggest there will be a 10% - 20% global increase in
nitrogen water contamination.
b. Up to 90% of wastewater in developing countries flow untreated into rivers, lakes, and
coastal zones. c. In developing countries, 70% of industrial waste is dumped untreated into
water sources.
d. Every day, 2 million tons of untreated human waste is put into some water
source. e. Water use is projected to decrease by 50% within 20 years.
2. Trying to pinpoint who is responsible for environmental degradation is not always easy, especially when it
involves
__________ .
a. different
countries b. several
managers
c. more than one CEO
d. differing regulatory agencies
e. both federal and local governments

3. One of the biggest factors in land pollution is the dumping of waste into
landfills.
world’s biggest wasters.
a.
European
b. Chinese
c. Russian
d.
American
e. Canadian
consumers are by far
the
4. The world’s forests are being destroyed at a rate of nearly 50,000 square miles annually. The reasons for
this wide-
scale destruction are varied and include all except:
a. The boom in biofuels
b. The soil is great for
farming c. Logging profits
d. Cycle of poverty
e. Converting land to other use

5. Although limiting urban sprawl creates
disadvantages for renewal movements that reduce
sprawl.
a. car and oil
companies b. the
airline industry
c. the railroad industry
d. service oriented
companies e. humans and
animals
, many businesses can benefit from
urban
6. Because genetically modified seeds
are
, farmers cannot keep any of the seed themselves but must
purchase seeds each year from companies such as
Monsanto. a. so small
b. worthless
c.
uncollectable
d. invisible
e. patented

7. The first Earth Day, increasing stakeholder awareness of environmental concerns and the creation of
the
Environmental Protection Agency brought to the
forefront. a. corporate social responsibility
b. alternative energy
sources c. diversity
d.
sustainability
e. competition
8. All of the following are goals of the Environmental Protection Agency, except:
a. Focus on the activities of
business b. Protecting America’s
water
c. Cleaning up communities and advancing sustainable
development d. Taking action on climate change and
improving air quality
e. Ensuring the safety of chemicals and preventing pollution

9. The Clean Air Act:
a. Allowed the EPA to track industrial
chemicals
b. Focuses on promoting alternative forms of
energy c. Established national air quality
standards
d. Provides tax benefits to consumers who purchase hybrid
cars e. Focuses on reducing pollution through cost-effective
change
10. The Clean Water Act makes it illegal for anyone to discharge any pollutant from a point source
directly into navigable waters without a .
a. good
reason b.
direct order c.
permit
d. inspector
present e. limit

11. The
raw materials
use.
focuses on reducing pollution through cost-effective changes in production,
operation, and
a. Pollution Prevention Act
b. Toxic Substances Control
Act c. Clean Air Act
d. Energy Policy
Act e. Oil Pollution
Act
12. All of these are ways of reducing pollution, except:
a. Designing environmentally friendly
buildings b. Recycling
c. Greenwashing
d. Source reduction
e. Sustainable agriculture

13. Congress passed
the
to empower the EPA with the ability to track the 75,000 industrial
chemicals
currently produced or imported into the United
States. a. Federal Water Pollution Control Act
b. Federal Insecticide, Fungicide and Rodenticide
Act c. Safe Drinking Water Act
d. Toxic Substances Control
Act e. Food Quality
Protection Act
14. Wind power holds great promise for the United States because
of the energy could meet as much as 20 percent of the nation’s
energy needs. a. Rocky Mountains
b. Everglades
c. Great
Lakes d.
Pacific Rim
e. Great Plains
, and experts believe
wind

15. Geothermal energy
provides alternative
energy.
a. heat from the
sun b. a radiated
heat
c. heat from steam
d. a constant source of
heat e. a dry heat
and is a more dependable energy source than some other
forms of
16. Critics of nuclear power are concerned about all of the following, except:
a. Reduced
emissions b.
Worker safety
c. The transport of nuclear waste
d. Damage to plants from natural
disasters e. Nuclear meltdowns

17. Perhaps the most controversial form of alternative energy after nuclear power is .
a. hydopower
b. geothermal
power c. solar
power
d. wind
power e.
ethanol
18. in the United
States,
provides only 7% of total output but provides 19% of total electricity
production worldwide, making it the largest form of renewable
energy. a. wind power
b. geothermal power
c. hydroelectric
power d. solar power
e. nuclear power

19. Many businesses responded to sustainability by adopting a triple-bottom line approach; taking into
consideration social and environmental performance variables in addition to .
a. managerial
performance b.
economic performance
c. board of directors
performance d. customer focus
e. stakeholder focus
20. A business attempts to avoid dealing with environmental issues and hopes nothing bad
happens or no
one ever finds out about an environmental accident or
abuse. a. newly established
b. socially
responsible c. low-
commitment
d. bankrupt
e. law-abiding

21. is one of the country’s greatest sustainability success stories.
a. Water
conservation b.
Pollution control
c.
Manufacturing
d. Composting
e. Recycling
22. Stakeholder assessment is an important part of a approach to environmental
issues. a. low-commitment
b. medium-
commitment c. high-
commitment
d. hands-
off e.
hands-on

23.
Through
, it is possible to quantify the trade-offs to determine whether to accept or
reject
environmentally-related activities and
programs. a. risk management
b. management
voting c. board
directives
d. legal
requirements e.
customer input
24. Organizations highly committed to environmental responsibility may conduct an audit of their efforts and
report the results to all interested .
a.
agencies
b.
countries
c.
stakeholders
d. individuals
e. suppliers

25. Which option includes the assessment and improvement of business strategies, economic ectors, work
practices, technologies, and lifestyles while maintaining the natural environment?
a. Competitive
advantage b. Marketing
c. Sustainability
d.
Greenwashing
e. Risk analysis
26. Sustainability is the long-term well-being of the natural environment and the mutually beneficial
interactions among
_____.
a. customers, investors, managers, and policies
b. board members, presidents, managers, and nonprofit
organizations c. investors, creditors, suppliers, and the
marketing department
d. nature, individuals, organizations, and business
strategies e. managers, boards, CEO's, and
stakeholder strategies

27. Which industry invests the most in alternative clean energy
sources?
a. The automobile
industry b. The clothing
industry
c. The airline
industry
d. The federal
government e. The oil
and gas industry
28. All of these are examples of social responsibility concerns,
except:
a. Product
price
b. Consumer
protection c.
Employee well-being
d. Sustainability
e. Legal
responsibilities

29. The protection of air, water, land, biodiversity, and emerged as a major issue in the twentieth
century. a. employee relations
b. renewable natural resources
c. environmental legal
regulations d. consumer
protection
e. air pollution
30. can cause markedly shorter life spans, along with chronic respiratory problems in humans and
animals. a. Water pollution
b. Air pollution
c. Global
warming d.
Deforestation
e. Acid rain

31. The Kyoto Protocol created in 1997 is an international treaty meant to curb global
.
a. natural resource use
b. greenwashing
activities c. water
pollution
d. greenhouse gas
emissions e. competition
Essay
32. How does sustainability relate to ethical decision making and social responsibility?

33. Discuss the benefits of green marketing and the long-term pitfalls of
greenwashing.
34. Why is the Environmental Protection Agency (EPA) said to be the most
influential regulatory agency?

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