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1. MGT 216 Final Exam 3
Answers are HERE!
1. “When in Rome, do as Romans do” is an example of:
a) Ethical imperialism
b) Ethical relativism
c) Cultural imperialism
d) Cultural relativism
2. Which of the following is legal according to the Foreign Corrupt Practices Act (FCPA) passed in 1977?
a) Payments to high ranking government officials
b) Grease payments to lower-level government officials
c) Bribes to political parties
d) Kickbacks to win overseas contracts
e) None of the above
3. If we understand how people think and behave in their native environment, we will understand how a
particular group will behave in relation to cultural outsiders.
A.True
B.False
4. Women working as expatriate managers are unsuccessful in some countries because they are treated
the same as women from that local culture.
A.True
B.False
5. Ethical issues are universal and do not vary from culture to culture.
A.True
B.False
6. A country’s sociopolitical environment increases the number of ethical questions a company must
deal with.

2. A.True
B.False
7. 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 is more important for non-English speakers in English-speaking
countries.
d) Cross-cultural training can help an expatriate manager better adjust to the new culture.
8. Which of the following is false?
a) Culture can be defined as “collective mental programming.”
b) Culture represents different patterns of believing.
c) Culture is used to interpret the world.
d) Individuals will interpret their experiences in a new culture in terms of that new culture.
9. ___________ define themselves in terms of their group memberships and their contributions to the
success of those groups.
a) Individualists
b) Collectivist
c) High power distance
d) Low power distance
10. ____________ reflects acceptance of inequality and respect for social status or class boundaries.
a) Individualism
b) Collectivism
c) High power distance
d) Low power distance
11. The title “ethics officer” did not exist until the early 1950s.
A.True
B.False
12. Ethics only needs to be communicated in orientation materials for new employees.
A.True

3. B.False
13. An increase in the number of calls on the “ethics action line” is a sign that there are more problems
in the company now.
A.True
B.False
14. Research has shown that between ___________ of the information that passes through the
grapevine is accurate.
a) 10 to 30%
b) 30 to 50%
c) 50 to 70%
d) 70 to 90%
15. As an important component of _________’s ethics communication approach, Agent Dewright’s
sample ethical dilemmas were e-mailed to all employees for responses. It was a great way to engage
front line employees as well as to communicate the company’s strong commitment to ethics.
a) Texas Instruments
b) Scott’s Paper Products
c) USAA
d) Southwest Airlines
16. Your friend, Sam, has been selected to create a new ethics training program at work. What advice
should you give Sam?
a) Ensure that all employees receive the same training content.
b) Focus on new employees only; the other employees already know this stuff.
c) Provide separate training depending on the needs of different groups of employees.
d) Bring in outside consultants to conduct the training.
17. The __________ approach to formal corporate ethics initiatives is proactive and inspirational.
a) Rules
b) Compliance
c) Principles
d) Values
18. The _________ approach to formal corporate ethics initiatives focuses on required behavior or
obeying the letter of the law.

4. a) Rules
b) Compliance
c) Principles
d) Values
19. Organization cultures vary widely, even within the same industry.
A.True
B.False
20. Because common ethical problems exist across virtually all organizations, formal programs designed
for ethics work well as “one size fits all.”
A.True
B.False
21. 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.
22. The “moral person” component of ethical leadership:
a) Tells employees how the leader expects them to behave.
b) Tells employees how the leader is likely to behave.
c) Shows that ethics and values are an important part of the leader’s message.
d) Demonstrates a reputation for ethical leadership among employees.
23. According to the Executive Ethical Leadership Reputation Matrix, ___________ 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) Hypocritical leader
24. Describing the decision-making process in the language of ethics does not help individuals make
more ethical decisions.
A.True

5. B.False
25. According to the Executive Ethical Leadership Reputation Matrix, ___________ is an executive
characterized as a strong “moral person” and a strong “moral manager.”
a) Unethical leader
b)Ethical leader
c) Ethically neutral leader
d) Hypocritical leader
26. 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.
27. The more a firm demands unquestioning obedience to authority, the more likely the firm will
experience higher levels of unethical conduct among employees.
A.True
B.False
28. Research has found that employees working in organizations with a code of ethics report that they
engage in less unethical behavior.
A.True
B.False
29. One of the most common faults in ethical decision making is to ignore the long-term consequences
of a decision.
A.True
B.False
30. The idea that consumers have the right to safety, right to be heard, right to choose, and right to be
informed came from ____________ in ________.
a) Theodore Roosevelt; 1930.
b) The Food and Drug Act; 1906.
c) John F. Kennedy; 1962.
d) George W. Bush; 2004.

6. 31. In this example of a conflict of interest, ________ conducted a series of off-the-books partnerships
that were used to hide the organization’s debt and inflate its stock price. The partnerships were
managed by the company’s executives who stood to profit the most from the transactions.
a) Merrill Lynch
b) Enron
c) Citicorp
d) Adelphia
32. Only since Enron’s collapse have ethicists and business professionals really been concerned about
the increasing focus on “short-term” earnings.
A.True
B.False
33. In a 2002 poll, _________ ranked last on the “who do you trust scale.”
a) Lawyers
b) Politicians
c)Chief executive officers
d) Accountants
34. The real proportion of wrong-doers is probably quite small.
A.True
B.False
35. Unethical behavior is often caused by the work environment and the work environment is the
manager’s responsibility.
A.True
B.False
36. Group norms can cause an “everyone is doing it” mentality. This means:
a) People are more likely to recognize issues as “ethical issues."
b) Many individuals will go along with unethical behavior because of a strong need to be accepted.
c) Managers cannot blame individual employees for unethical behavior.
d) Employees are actively disengaged.
37. A statement such as “integrity is important here” is enough for subordinates to understand what
kind of behavior you expect from them.
A.True

7. B.False
38. Groupthink occurs when:
a) A group is working together in a cohesive, flowing manner for peak performance.
b) Group members know each other so well that they are able to anticipate the other’s ideas.
c) Group members conform to the group’s decision and are unwilling to express disagreement.
d) A group cannot make a decision because members are unwilling to compromise.
39. When an employee brings up an ethical concern at work, the manager is obliged to take the issues
completely off the employee’s hands.
A.True
B.False
40. The Tailhook scandal is an example of:
a) Management focusing too much on the ends rather than the means.
b) The ethical Pygmalion effect.
c) Social learning theory.
d) Employees ignoring management’s clear message.
41. Managers play a limited role in increasing engagement and building an ethical culture.
A.True
B.False
42. 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) Line of sight
b) Involvement
c) Information sharing
d) Rewards and recognition
43. Research has shown that the best way to encourage ethical behavior is to create an organizational
culture that is built to enhance employee engagement.
A.True
B.False
44. 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

8. 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 Tonya to Europe without telling Sam he was considered.
b) Automatically send Sam to Europe because he is clearly the most qualified.
c) Ask Sam if he wants to go to Europe and discuss the situation.
d) Assign Sam to a new task and send the Tonya to Europe.
45. According to a survey of executives, most respondents would rather lie to employees about
performance than confront them about performance problems.
A.True
B.False
46. Which of the following is not an effective way to discipline employees?
a) Discipline must be constructive and done in a professional manner.
b) Discipline should be done privately.
c) Employees should be encouraged to explain their side of the story.
d)Discipline should be consistent with what other employees at the same level or position received.
47. You are a manager forced to layoff certain employees. What is the primary objective that should
guide your treatment of these individuals?
a) To make the process as quick and painless to the company as possible.
b) To ensure the grapevine is passing truthful information.
c) To ensure layoff survivors understand why they were not chosen.
d) To allow the terminated employee to maintain personal dignity.
48. Because of a family emergency, John was unable to complete a report for his boss. Instead, he asks a
coworker 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’s coworker only finished what John had started.
b) No, because John had a family emergency and his boss don’t need the details. The report is done.
c) Yes, because John told a lie to his boss and put his reputation on the line.
d) Yes, because John is indebted to his coworker now.
49. People do not want to believe that the world operates on the principles of fairness.
A.True
B.False

9. 50. The best way to ensure that you are not going to be asked to compromise your values is to clearly
communicate what people can expect from you.
A.True
B.False