This document contains 44 multiple choice questions about business ethics. The questions cover topics such as ethical decision making processes, organizational culture and compliance, cultural differences in business ethics, and the roles and responsibilities of ethics officers. Answer choices are provided for each question.

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1) Which of the following statements is FALSE?
A. Interest in business ethics began in the 1960s as researchers surveyed managers’ attitudes toward
business ethics.
B. The proliferation of unethical behavior is a problem primarily in American business organizations.
C. When entering a new job, most students believe they need to check their ethics at the door.
D. The majority of companies now offer ethics training
2) Which of the following are correct steps and order of steps in the ethical decision-making process?
A. Moral consideration, moral decision, and moral behavior.
B. Moral awareness, moral judgement, and moral behavior.
C. Moral awareness, more cognition, and moral behavior.
D. Moral judgement, moral awareness, and moral behavior.
3) Which of the following statements is TRUE:
A. “Bad barrels” are caused by “bad apples” in an organization.
B. Ethics cannot be taught because individuals come into an organization already as “bad apples.”
C. Employees’ good behavior can be spoiled by a “bad barrel.”
D. “Bad apples” are just a few individuals who spoil it for the rest of us.
4) According to cognitive moral development theory, the actual moral decision is not as important as the
reasoning process used to arrive at it.
A. True
B. False
5) The type of language used when describing a situation affects moral awareness
A. True
B. False
6) If an individual does not recognize that he or she is facing an ethical dilemma, then moral judgement is
likely to occur.
A. True
B. False
7) The ____________ challenges one to ask “how would you feel if your behavior appeared on The Wall
Street Journal?”
A. Confession constraint
B. Disclosure rule
C. Categorical imperative
D. Veil of ignorance
8) The _________________ states that an ethical decision should maximize benefits to society and minimize
harms.
A. Principle of utility
B. Principle of efficacy
C. Theory of cost-benefit analysis
D. Principle of value

2. 9) Generally speaking, ethical dilemmas are not routine. Therefore, there is no way that an individual can be
prepared or informed for a problem ahead of time.
A. True
B. False
10) In the ___________ perspective, social responsibility is primarily a means of avoiding economic harm
that can be imposed by multiple stakeholders.
A. Duty based
B. Geographic
C. Social
D. Economic
11) Which of the following is TRUE?
A. Only the presence of a code of ethics in the organization is necessary to meet the U.S. Sentencing
Commision’s idea of an effective compliance program.
B. The U.S. Sentencing Commision allows prosecutors to assess the quality of an organization’s compliance
program in order to determine appropriate penalties.
C. Fines applied by the U.S. Sentencing Commision have decreased on average since 1990.
D. The 1987 sentencing guidelines mandated incarceration for only the worst offenders.
12) The U.S. sentencing guidelines use a “carrot and stick” approach to managing corporate crime. What is
meant by the use of “carrot” and “stick”?
A. The carrot dangles at the end of the stick as an incentive for organizations to behave ethically.
B. The carrot refers to the guidelines as “food for thought” and the stick refers to the punishment if the
guidelines are not followed.
C. The carrot refer to incentives in the guidelines for behaving ethically and the stick refers to the
punishment if the guidelines are not followed,
D. None of the above.
13) People are rational economic actors motivated solely by self-interest.
A. True
B. False
14) Most people expect fair play in their interactions and will even forgo economic benefits in order to
maintain a fair system.
A. True
B. False
15) An organization can be convicted of a crime even if only one employee breaks the law.
A. True
B. False
16) Which of the following is TRUE?
A. Employees tend to be rewarded for engaging in specific ethical behaviors
B. Punishment is an inherently bad practice.
C. Rewards set the tone for what is expected and rewarded in the long term.
D. Rewards are better to control short-run ethical behavior.
17) The Tailhook Scandal is an example of:
A. The ethical Pygmalian effect.
B. Social learning theory.
C. Management focusing too much on the ends rather than the means.

3. D. Employees ignoring management’s clear message.
18) Which of the following is FALSE?
A. People are less likely to engage in unethical behavior if it it likely to be detected and punished.
B. Other employees are affected by punishment of just one employee.
C. The idea that punishment should be avoided is based on research on rats and small children.
D. People do not care if violators of ethical conduct are punished.
19) As a manager of ABC Corporation, you are in a tough situation. You must send an employee to work with
your new client in Europe and Sam is clearly the most qualified candidate. However, ABC Corporation is
located in an area where several people of Sam’s race have been violently attacked. You must choose to
send Sam or Tonya. What should you do?
A. Automatically send Sam to Europe because he is clearly the most qualified.
B. Ask Sam if he wants to go to Europe and discuss the situation.
C. Automatically send Tonya to Europe without telling Sam he was considered.
D. Assign Sam to a new task and send Tonya to Europe.
20) This driver of engagement, _________, refers to the fact that employees should understand the
company’s strategic direction and how their individual efforts play a role in the company’s revenue
generating enterprise.
A. Involvement
B. Information sharing
C. Line of sight
D. Rewards and recognition
21) Federal law prohibits discrimination against individuals with specific characteristics. Which of the
following characteristics is not on that list (i.e. protected under Federal law)?
A. Sex
B. Pregnancy
C. Religion
D. Mental ability
22) Research has show the best way to encourage ethical behavior is to create an organizational culture that
is built to enhance employee engagement.
A. True
B. False
23) Managers play a limited role in increasing engagement and building an ethical culture.
A. True
B. False
24) Because of a family emergency, John was unable to complete a report for his boss. Instead he asks a co-
worker to finish it for him and in the morning, John tells his boss that he did the report. Is there anything
wrong with John’s action?
A. No, because John had a family emergency and his boss didn’t need the details. The report is done.
B. Yes, because John told a lie to his boss and put his reputation on the line.
C. No, because John’s co-worker only finished what John had started.
D. Yes, because John is indebted to his co-worker now.
25) Despite a terrible disaster, ____________ demonstrated its ability to act swiftly and compassionately for
multiple shareholders affected by the chemical leak. The CEO even flew to the site one day after the incident
to lend support.

4. A. Exxon
B. Union Carbide
C. Merck
D. Manville Corporation
26) In a 2002 poll, __________ ranked last on the “who do you trust scale.” .
A. Politicians
B. Chief Executive Officers
C. Lawyers
D. Accountants
27) The idea that consumers have the right to safety, right to be heard, right to choose, and the right to be
informed came from _____________ in ____________.
A. The Food and Drug Act; 1906
B. John F. Kennedy; 1962
C. Theodore Roosevelt; 1930
D. George W. Bush; 2004
28) According to the Executive Ethical Leadership Reputation Matrix,a/an _________ is an executive
characterized as a weak “moral person” and a strong “moral manager.”
A. Unethical leader
B. Ethical leader
C. Ethically neutral leader
D. Hypocrical leader
29) Weak organizational cultures are:
A. Desirable if an organization has many subcultures.
B. Desirable if an organization wants diversity of thought and action.
C. Desirable if an organization wants behavioral consistency.
D. Undesirable in all situations.
30) Why did the U.S. Sentencing Commision begin to focus on the ethical culture of the organization in 2004?
A. Researchers had just recently introduced the idea of an “ethical culture” in 2002.
B. More and more consultants were discussing “ethical culture” in their programs.
C. Prior to the change, organizations used formal programs as “window dressing.”
D. None of these.
31) ___________ have their own agenda and lack and company or professional loyalty.
A. Deserters
B. Misguided cannons
C. Grenades
D. Toxic ammo
32) As an important component of _________’s ethics communication approach, Agent Dewright’s sample
ethical dilemmas were emailed to all employees for responses. It is a great way to engage from line
employees as well as to communication the company’s strong commitment to ethics.
A. Texas Instruments
B. Scott’s Paper Products
C. USAA
D. Southwest Airlines

5. 33) Research has shown that between ___________ of the information that passes through the grapevine is
true.
A. 10 to 30%
B. 30 to 50%
C. 50 to 70%
D. 70 to 90%
34) Fluency in a foreign language assists with verbal communication, but helps little in understanding the
culture. .
A. True
B. False
35) Ethical issues are universal and do not vary from culture to culture.
A. True
B. False
36) If we understand how people think and behave in their native environment, we will understand how a
particular group will behave in regard to cultural outsiders.
A. True
B. False
37) A country’s sociopolitical environment increases the number of ethical questions a company must deal
with.
A. True
B. False
38) The Golden Rule (“do unto others as you would have them do unto you”) appears in the teachings of
every major world religion.
A. True
B. False
39) Which of the following is FALSE?
A. Organizations are affected by the expatriate manager’s ability to adjust to the new setting.
B. Organizations are not affected by the expatriate family’s ability to adjust to the new setting.
C. Foreign language proficiency for non-English speakers in English-speaking countries.
D. Cross-cultural training can help an expatriate manager better adjust to the new cultures.
40) When dealing with an individual from a different culture,
A. Negoatiators generally adapt their negotiation style to that of the negotiating partner.
B. American negotiators are the most flexible to their negotiation partner’s behavior.
C. Canadian and Japanese negotiators are the least flexible to their negotiation partner’s behavior.
D. Negotiators generally do not adapt their negotiation behavior to that of the negotiation partner.
41) Which of the following is TRUE?
A. Collectivists tend to prefer mediation because it involves compromise
B. Collectivists tend to prefer adjudication because it is perceived as more fair
C. Collectivists tend to prefer direct manifestations of conflict
D. Collectivists tend to avoid psychological warfare
42) Which of the following is an example of a high power distance country?
A. India
B. United States
C. Israel

6. D. None of the above
43) _____________ may have good ethical compasses, but they don’t know their corporation’s policies.
Without guidance, ethics may not even be a consideration.
A. Loose cannons
B. Grenades
C. Loose ammo
D. Misguided cannons
44) Which of the following is FALSE?
A. The ethics officer typically reports directly to the CEO
B. The ethics officer can also be called “the director of ethics” or “director of internal audit.”
C. The ethics officer is typically a middle-level manager
D. The ethics officer can be hired from inside or outside the firm