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MGT216 Final Exam 1
1) 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 judgement, moral awareness, and moral behavior.
C.Moral awareness, more cognition, and moral behavior.
D.Moral awareness, moral judgement, and moral behavior.
2) Discarding the few “bad apples” will solve all the ethical problems within an organization.
A.False
B.True
3) 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 majority of companies now offer ethics training
C.When entering a new job, most students believe they need to check their ethics at the door.
D.The proliferation of unethical behavior is a problem primarily in American business organizations.
4) According to cognitive moral development theory, individuals move to a higher moral development stage.
A.An individual’s level of moral reasoning does not change after he or she becomes an adult.
B.Every time they encounter a more difficult ethical dilemma.
C.When there is a contradiction between his or her current moral reasoning stage and the next higher one.
D.As they grow older.
5) The type of language used when describing a situation affects moral awareness
A.True
B.False
6) Ethical conflict is almost exclusively influenced by individual differences.
A.True
B.False
7) The _________________ states that an ethical decision should maximize benefits to society and minimize harms.
A.Principle of utility
B.Principle of value
C.Theory of cost-benefit analysis
D.Principle of efficacy
8) The _______________ approach to ethical decision making focuses on how people actually make decisions.
A.Regulatory
B.Prescriptive
C.Descriptive
D.Illustrative
10) According to a national opinion survey, identify the goal that employees did NOT rank among the top five.
A.Ethical corporate behavior
B.Honest company communications

2. C.Good pay
D.Respectful treatment
11) 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.
12) In the ___________ perspective, social responsibility is primarily a means of avoiding economic harm that can be
imposed by multiple stakeholders.
A.Duty based
B.Economic
C.Social
D.Geographic
13) People are rational economic actors motivated solely by self-interest.
A.True
B.False
14) An organization can be convicted of a crime even if only one employee breaks the law.
A.True
B.False
15) Unlike managers, employees are generally not concerned about the ethical behavior of the organization they
work for.
A.True
B.False
16) Which of the following is TRUE?
A.Employees tend to be rewarded for engaging in specific ethical behaviors
B.Rewards are better to control short-run ethical behavior.
C.Rewards set the tone for what is expected and rewarded in the long term.
D.Punishment is an inherently bad practice.
17) Which of the following is FALSE?
A.Roles reduce a person’s sense of individuality.
B.Conflicting role expectations can cause increased incidences of lying.
C.People enter organizations in a state of “role readiness.”
D.Managers do not have roles as much as their subordinates do.
18) The Tailhook Scandal is an example of:
A.The ethical Pygmalian effect.
B.Employees ignoring management’s clear message.
C.Management focusing too much on the ends rather than the means.
D.Social learning theory.
19) Which of the following is FALSE?
A.Actively disengaged employees have lower turnover and absenteeism.
B.Engaged employees are more productive.

3. C.Employee engagement is how committed employees are to their work.
D.Actively disengaged employees cost the U.S. economy billions each year.
20) 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.Mental ability
C.Religion
D.Pregnancy
21) 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.Assign Sam to a new task and send Tonya to Europe.
C.Automatically send Tonya to Europe without telling Sam he was considered.
D.Ask Sam if he wants to go to Europe and discuss the situation.
22) One of the higher performing employees in your group has recently had family troubles. These personal issues
caused him to be less flexible in his work schedule. For example, he has come in late some mornings and missed
several late afternoon meetings. However, he continues to be productive when he is at work. As his manager, what
should you do?
A.Ignore the situation because he is generally a high performer and the situation is temporary.
B.At the group meeting, make an example out of him and his unethical behavior to deter other employee’s
misbehavior.
C.Reprimand the employee and put him on notice immediately.
D.Institute flexible work hours for all employees in your group and arrange meetings when everyone can be available.
23) According to a survey of executives, most respondents would rather lie to an employee about performance than
confront them about performance problems.
A.True
B.False
24) One of a manager’s most important responsibilities is to bring good people into an organization.
A.True
B.False
25) In this classic example of failing to protect itsemployees, __________ knew asbestos caused cancer as early as
1930. However, the company lied to itsemployees and used several tactics to cover-up the product’s effects.
A.A.H. Robbins
B.McWane, Inc.
C.Johnson & Johnson
D.Manville Corporation
26) 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.
A.Exxon
B.Manville Corporation
C.Merck
D.Union Carbide

4. 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.George W. Bush; 2004
C.Theodore Roosevelt; 1930
D.John F. Kennedy; 1962
28) The “moral person” component of ethical leadership:
A.Tells employees how the leader is likely to behave.
B.Demonstrates a reputation for ethical leadership among employees.
C.Tells employees how the leader expects them to behave.
D.Shows that ethics and values are an important part of a leader’s message.
29) Weak organizational cultures are:
A.Desirable if an organization wants diversity of thought and action.
B.Undesirable in all situations.
C.Desirable if an organization has few subcultures.
D.Desirable if an organization wants behavioral consistency.
30) According to the Executive Ethical Leadership Reputation Matrix,a/an _________ is an executive characterized
as a strong “moral person” and a strong “moral manager.”
A.Ethical leader
B.Hypocritical leader
C.Unethical leader
D.Ethically neutral leader
31) 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
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 lineemployees as well as to
communication the company’s strong commitment to ethics.
A.Scott’s Paper Products
B.Southwest Airlines
C.Texas Instruments
D.USAA
33) Research has shown that between ___________ of the information that passes through the grapevine is true.
A.70 to 90%
B.30 to 50%
C.10 to 30%
D.50 to 70%
34) Visitors to another culture will notice things that are important at home but may not be important in the target
culture.
A.True
B.False
35) Spouses of high-level expatriate managers generally serve in a corporate “ambassador” role.

5. A.True
B.False
36) Ethical issues are universal and do not vary from culture to culture.
A.True
B.False
37) Which of the following is FALSE?
A.Cross-cultural training can help an expatriate manager better adjust to the new cultures.
B.Organizations are not affected by the expatriate family’s ability to adjust to the new setting.
C.Organizations are affected by the expatriate manager’s ability to adjust to the new setting.
D.Foreign language proficiency for non-English speakers in English-speaking countries.
38) Justice and fairness are universal human values. Therefore, specific beliefs and preferences about what is a fair
allocation are also universal.
A.False
B.True
39) A country’s sociopolitical environment increases the number of ethical questions a company must deal with.
A.True
B.False
40) _________ reflects acceptance of inequality and respect for social status and class boundaries
A.Low power distance
B.Collectivism
C.Individualism
D.High power distance
41) Which of the following is legal according to the Foreign Corrupt Practices Act (FCPA) passed in 1977?
A.Kickbacks to win overseas contracts
B.Grease payments to lower-level government officials
C.Payments to high ranking government officials
D.Bribes to political parties
42) Which of the following is an example of a high power distance country?
A.India
B.United States
C.Israel
D.None of the above