Question 1

After many years of successful operation, a financial services firm uncovers a specific fraud in which employees were accepting personal gifts from clients for preferred treatment. Which of the following is most likely going to need revision as a result?

Accepted Answer

A)   code of conduct
B)   code of ethics
C)   vision statement
D)   mission statementE) C) and D)
F) A) and D)

Question 2

Which of the following is TRUE with respect to employees and ethical culture in organizations?

Accepted Answer

A)   Research has shown a net outflow of employees from organizations with a strong ethical culture.
B)   Employees prefer not to be a part of high-integrity organizations because of the increased scrutiny involved.
C)   Employees mostly show indifference to the ethical culture of their organization.
D)   Employees prefer to be a part of high-integrity organizations.E) None of the above
F) A) and D)

Question 3

You are a member of upper management who is leading an orientation for new hires, and during your first meeting you intend to focus on business ethics. In what way should you start your meeting with the new employees?

Accepted Answer

A)   Explain how the company will not tolerate failures in moral behavior.
B)   Address some ethical issues specifically related to your company and industry.
C)   Pass out a code of conduct and let employees have some time to read it.
D)   Tell the employees not to worry about public perceptions of your industry.E) None of the above
F) All of the above

Question 4

The word "integrity" is synonymous with which of the four core values common to all three Abrahamic religions of the world?

Accepted Answer

A)   justice
B)   mutual respect
C)   stewardship
D)   honestyE) A) and C)
F) None of the above

Question 5

An employee sends a racist joke to a coworker via their company email account. A manager discovers this, and the employee is fired. The employee sues the company for violation of privacy for monitoring his email. What will a judge most likely rule?

Accepted Answer

A)   The employee is entitled to damages but not to get his job back.
B)   The company has the right to monitor employee email.
C)   The employee has a right to private email communication.
D)   The company was within its rights but must rehire the employee.E) A) and C)
F) A) and B)

Question 6

Which of the following questions is best asked of employees during the step "gather a list of ethical behaviors from participants" in the process of making a code of ethics?

Accepted Answer

A)   "Describe a situation when you behaved very ethical toward a customer."
B)   "Describe a situation when you observed someone in the organization behave unethically toward a customer."
C)   "Describe a situation when you behaved unethically toward a customer."
D)   "Tell us what you think constitutes an ethical behavior."E) All of the above
F) B) and C)

Question 7

You are the founder and president of a small business that has just reached 10 employees, and you are preparing a code of ethics for the first time. If you have decided to create the code using a team-building process, describe what steps you should take.

Accepted Answer

Start by getting approval from a high-le...

Question 8

What are the two broad core ethical ideals of the Caux Principles for Responsible Business?

Accepted Answer

A)   human dignity and collectively seeking the common good
B)   human dignity and the worldwide implementation of just laws
C)   freedom of action and freedom of information
D)   collectively seeking the common good and worldwide implementation of just lawsE) A) and C)
F) B) and D)

Question 9

What is a particular benefit of using the "Code of Ethics Toolkit" created by the Ethics & Compliance Initiative?

Accepted Answer

A)   designing a code that will attract ethically strong employees to the business
B)   aligning an organization's code with international standards of business
C)   designing codes that make employees aware of the legal ramifications of their actions
D)   designing codes for different departments that fit well with organization-wide ethicsE) B) and C)
F) A) and D)

Question 10

An employee with strong moral character and behavior has worked at a small company for many years. The company grows large enough to implement a formal code of ethics. How is this employee likely to react to that new code?

Accepted Answer

A)   with resentment
B)   by embracing its provisions
C)   by rejecting it
D)   with indifferenceE) A) and D)
F) None of the above

Question 11

Why does the code of ethics of many large companies fail to have significance or impact?

Accepted Answer

A)   It has no employee input.
B)   It applies only to upper management.
C)   It has too much legalese.
D)   Its expectations are too high.E) None of the above
F) A) and D)

Question 12

When all the elements of a strategic plan are integrated, it should produce a(n)  ______.

Accepted Answer

A)   culture of efficiency in the organization
B)   common "cause" for employees
C)   aspirational vision for what the company will become
D)   "ideal" version of the company that does not yet existE) A) and D)
F) None of the above

Question 13

According to the 1991 Federal Sentencing Guidelines, what happens to a company that has implemented an effective code of ethics compared to one that does not?

Accepted Answer

A)   It will not be held liable when fraud lawsuits are brought against it.
B)   It may receive formal financial incentives.
C)   It is subject to reduced prison sentencing for management.
D)   There are no formal rewards, but it has an improved reputation.E) B) and C)
F) A) and D)

Question 14

Ali started an accounting firm a year ago and has just hired his tenth employee. He decides the business needs a code of ethics. How should he begin the process of creating one?

Accepted Answer

A)   He should have a legal team or lawyer draw up the basic needs of a code of ethics.
B)   He should write the initial draft and then get his CFO or vice president's input.
C)   He should make a template based on another organizations' code of ethics.
D)   He should solicit employee input into the initial needs of the code of ethics.E) A) and B)
F) A) and C)

Question 15

Which of the following is TRUE of a typical code of ethics?

Accepted Answer

A)   It is often long and complicated.
B)   It is unreasonable to expect the average person to abide by its principles.
C)   It is typically designed by a lawyer.
D)   It can help guide decisions if an ethical dilemma arises.E) B) and D)
F) None of the above

Question 16

Which of the following should be integrated into an organization's strategic planning?

Accepted Answer

A)   code of ethics and employee aspirations
B)   business plan and vision statement
C)   mission statement and code of ethics
D)   mission statement, vision statement, and code of ethicsE) A) and B)
F) A) and C)

Question 17

Karen has decided to develop a code of ethics for her law firm by starting with the text of the code of ethics of a highly respected law firm of roughly the same size that operates in her state. What is the biggest problem with this action?

Accepted Answer

A)   the threat of plagiarism
B)   the missed opportunity to solicit employee input
C)   the likelihood that her managers will ignore the new code
D)   the likelihood that the other firm's code will not apply to issues relevant to her firmE) A) and B)
F) B) and C)

Question 18

How would an organization's vision statement sync with its code of ethics?

Accepted Answer

Ethical values can be written ...

Question 19

How has the adoption of codes of ethics by businesses changed over time?

Accepted Answer

A)   Survival of the fittest has led fewer businesses to abide by their own codes of ethics.
B)   Since the 1960s, vastly more businesses have adopted them to be more in line with public and industry expectations.
C)   The rate of adoption by businesses has remained roughly the same since the 1960s.
D)   The superficial adoption of codes of ethics has increased, while moral expectations of business has decreased.E) All of the above
F) None of the above

Question 20

During the "code review" step in creating a code of ethics, the draft code should go to which of the following (among others)  for review?

Accepted Answer

A)   legal counsel
B)   employees
C)   industry regulators
D)   human resources consultantsE) B) and D)
F) B) and C)

Exam 4: Codes of Ethics and Codes of Conduct

Karen has decided to develop a code of ethics for her law firm by starting with the text of the code of ethics of a highly respected law firm of roughly the same size that operates in her state. What is the biggest problem with this action?

Correct AnswerverifiedShow Answer

Ali started an accounting firm a year ago and has just hired his tenth employee. He decides the business needs a code of ethics. How should he begin the process of creating one?

Correct AnswerverifiedShow Answer

According to the 1991 Federal Sentencing Guidelines, what happens to a company that has implemented an effective code of ethics compared to one that does not?

Correct AnswerverifiedShow Answer

After many years of successful operation, a financial services firm uncovers a specific fraud in which employees were accepting personal gifts from clients for preferred treatment. Which of the following is most likely going to need revision as a result?

Correct AnswerverifiedShow Answer

Which of the following questions is best asked of employees during the step "gather a list of ethical behaviors from participants" in the process of making a code of ethics?

Correct AnswerverifiedShow Answer

Why does the code of ethics of many large companies fail to have significance or impact?

Correct AnswerverifiedShow Answer

When all the elements of a strategic plan are integrated, it should produce a(n) ______.

Correct AnswerverifiedShow Answer

How would an organization's vision statement sync with its code of ethics?

Correct AnswerverifiedEthical values can be written ...View AnswerShow Answer

How has the adoption of codes of ethics by businesses changed over time?

Correct AnswerverifiedShow Answer

Which of the following should be integrated into an organization's strategic planning?

Correct AnswerverifiedShow Answer

An employee with strong moral character and behavior has worked at a small company for many years. The company grows large enough to implement a formal code of ethics. How is this employee likely to react to that new code?

Correct AnswerverifiedShow Answer

You are the founder and president of a small business that has just reached 10 employees, and you are preparing a code of ethics for the first time. If you have decided to create the code using a team-building process, describe what steps you should take.

Correct AnswerverifiedStart by getting approval from a high-le...View AnswerShow Answer

Which of the following is TRUE with respect to employees and ethical culture in organizations?

Correct AnswerverifiedShow Answer

Which of the following is TRUE of a typical code of ethics?

Correct AnswerverifiedShow Answer

What are the two broad core ethical ideals of the Caux Principles for Responsible Business?

Correct AnswerverifiedShow Answer

You are a member of upper management who is leading an orientation for new hires, and during your first meeting you intend to focus on business ethics. In what way should you start your meeting with the new employees?

Correct AnswerverifiedShow Answer

The word "integrity" is synonymous with which of the four core values common to all three Abrahamic religions of the world?

Correct AnswerverifiedShow Answer

During the "code review" step in creating a code of ethics, the draft code should go to which of the following (among others) for review?

Correct AnswerverifiedShow Answer

An employee sends a racist joke to a coworker via their company email account. A manager discovers this, and the employee is fired. The employee sues the company for violation of privacy for monitoring his email. What will a judge most likely rule?

Correct AnswerverifiedShow Answer

What is a particular benefit of using the "Code of Ethics Toolkit" created by the Ethics & Compliance Initiative?

Correct AnswerverifiedShow Answer

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Ethical values can be written ...
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Start by getting approval from a high-le...
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