Man 3065 Mid Term Exam

Front 1

Amanda and Ross have been chosen to go to Ethiopia for their universities international student Exchange program. They read about the believes, attitudes, practices, Norm's, Traditions, Cuisine, and music of Ethiopia to better adapt to the place. Amanda and Ross are reading about the _______ aspect of Ethiopia.

Back 1

Cultural

Front 2

An ethical dilemma can be resolved with a satisfactory answer to the problem.

Back 2

False

Front 3

Charlotte works at an advertising agency. She is usually late in responding to emails. She realises this afternoon an important project , she was responsible for, was delayed due to similar behavior from her manager. Now, Charlotte replies to her emails on time. Which of the following would indicate that this change in Charlotte's Behavior was a result of adopting the Golden Rule?

Back 3

Charlotte empathized with others when she faced a similar situation

Front 4

Due to aggressive competition, Amanda feels pressured to copy an assignment from a friend and the internet to get good grades. She feels the professor will not be able to figure out what she did. With this ethical dilemma, the first thing Amanda must do is analyze her actions without thinking about consequences.

Back 4

False

Front 5

How do people arrive at the definition of what's right or wrong?

Back 5

Usually are right or wrong definition depends on the morals and teaching that we observed growing up. What might be right to me could be wrong for someone else. As time goes by and things happen to us we start to Define ourselves what we believe to be right or wrong.

Front 6

Name and discuss the three categories of ethical theories.

Back 6

The three ethical theories categories are: virtual ethics, ethics for the greater good, and Universal ethics.

Virtue ethics is according to a commitment to the achievement of a clear idea as to how the individual builds character and integrity to themselves. But the problem with a virtue ethics is that societies can place different emphasis on different virtues.

Ethics for the greater good is more focused on the outcome of your actions rather than the apparent virtue of the actions themselves. It is more focused on the greatest good for the greatest number of people.

Universal ethics argue that there are certain and Universal principles that should apply to all ethical judgement.

Front 7

Riley was granted the title of doctor of Medicine by a medical school in Ohio. His parents were extremely happy and content with his achievement. The worth attached to the feelings experienced by Riley's parents is an example of _______.

Back 7

An intrinsic value

Front 8

The difference between intrinsic value and instrumental value is that

Back 8

Instrumental value refers to the Quality by which the pursuit of one value is a good way to reach another value

Front 9

The field of ______ is the study of how people try to live their lives according to a standard of "right" or "wrong" Behavior.

Back 9

Ethics

Front 10

The field of Ethics is the study of how people try to live their lives according to a standard of "right" or "wrong" behavior.

Back 10

True

Front 11

The first step in the three step process for solving an ethical problem is to analyze the ______.

Back 11

Consequences

Front 12

The problem with utilitarian approach to ethics is

Back 12

The idea that the ends justify the means

Front 13

The problem with universal ethics is the idea that the ends justify the means.

Back 13

False

Front 14

The terms _____ and values are often used to mean the same thing, a set of personal principles by which you aim to live your life.

Back 14

Morals

Front 15

The term morals is applied to a society while the term values is used when referring to an individual.

Back 15

False

Front 16

Which of the following indicates the rules of appropriate individual Behavior?

Back 16

Alice travels to different countries for work and conducts herself according to the culture of the country she visits

Front 17

Which of the following is one of the four basic categories of ethics?

Back 17

Personal integrity

Front 18

Which of the following is true of Lawrence Kohlberg's stages of ethical reasoning?

Back 18

Stereotypical behavior is recognized, and Conformity to the behavior depends in the conventional stage of moral development

Front 19

Which of the following is true of morals and values?

Back 19

The terms morals and values are often used to mean the same thing

Front 20

Which of the following statements accurately explains the basic categories of ethics?

Back 20

Personal Integrity, a category of Ethics, looks at ethics from an external rather than an internal viewpoint

Front 21

Discuss five major changes that have taken place in the business environment over the last five decades.

Back 21

Employee voice has made individual employees more comfortable speaking out against actions of their employers that they feel to be irresponsible or unethical.

The issue of corporate social responsibility has advanced from an abstract debate to a core performance assessment issue with established legal liabilities.

Corporate ethics has moved from the domain of legal and human resource Department's into the organizational mainstream with the appointment of corporate ethics officers with clear mandates.

Code of ethics have matured from cosmetic public relations documents into performance measurement documents that an increasing number of organizations are not committing to share with all their stakeholders.

The 2002 sarbanes-oxley Act has introduced greater accountability for chief executive officers and board of directors in signing off on the financial performance records of the organizations they represent.

Front 22

What are the three principles available to resolve an ethical dilemma? Are they always successful?

Back 22

The three principles are ends-based, rules-based, and the Golden Rule.

Ends-based depends on providing the greatest good for the greatest number of people.

Rules-based refers to what would happen if everyone made the same decision as you.

The Golden Rule refers to doing unto others as you would have them do unto you.

No, they are not always successful because it depends on the problem and situation on hand.

Front 23

Describe the three commonly held rationalizations, identified by Saul Gellerman, which can lead to misconduct.

Back 23

Saul Gellerman identify four commonly-held rationalizations that can lead to misconduct which are:

1. A belief that the activity is within reasonable ethical and legal limits that is, that is not really illegal or immoral.

2. A belief that the activity is in the individuals or the corporation's best interest that the individual would somehow be expected to undertake the activity.

3. I believe that the activity is safe because it will never be focused out or publicized the classic Crime and Punishment issued of discovery. Every unethical act that goes undiscovered reinforces this belief.

4. I believe that because the activity helps the company, the company will condone it and even protect the person who engages in it. This belief suggest some confusion over the Loyalty being demonstrated here.

Front 24

What function does an organization's code of ethics perform?

Back 24

A code of ethics serves as a dual function. As a message to an organization stakeholders, the code should represent a clear corporate commitment to the highest standards of ethical Behavior. As an internal document, the code to represent a clear guide to managers and employees in making the decisions they face everyday. A good code of ethics should be structured to liberate and Empower people to make more effective decisions with greater confidence.

Front 25

What are the perspectives from which business ethics can be approached?

Back 25

There are two distinct perspectives: descriptive and normative.

With descriptive we are simply documenting what is happening. Whereas with a normative we are more interested in recommending what should be happening.

Front 26

Companies that rely on the deterrents of _______ and spot checks make headway in discouraging unethical behavior.

Back 26

Audits

Front 27

Which of the following is true of business ethics?

Back 27

Business ethics should not be applied as a separate set of moral standards or ethical Concepts from General at ethics.

Front 28

Geo transmit, a huge multinational telecommunications company, decided to hide the extensive depth and losses it was accumulating from its investors. It's fraudulent accounting Behavior was eventually discovered, however, and the company went bankrupt. Which of the following is true of Geo transmit and its stakeholders?

Back 28

The different stakeholders of Geo transmit will be affected in different ways

Front 29

Which of the following is true of corporate governance?

Back 29

It is the system by which business corporations are directed and controlled

Front 30

The standard of corporate governance:

Back 30

Insurance that officers of an organization fulfill their obligations to their stakeholders

Front 31

Which of the following functions does the code of ethics perform?

Back 31

It clarifies an organization's cornerstones to its employees, managers, and stakeholders

Front 32

Which of the following is true of the three principles for resolving and an ethical dilemma?

Back 32

They don't offer a perfect solution or resolution for every situation

Front 33

How can companies reduce on ethical behavior in their companies?

Back 33

By creating and maintaining a corporate culture of trust

Front 34

Companies can discourage unethical behavior in their employees by:

Back 34

Conducting regular Audits and random spot checks

Front 35

The belief that an activity is safe because it will never be found out is a common rationalization behind and employees on ethical conduct. What can an organization do to deter unethical Behavior based on this rationalization?

Back 35

Managers should punish the individual publicly

Front 36

Business ethics should be applied as a separate set of moral standards or ethical Concepts from the general ethics.

Back 36

False

Front 37

Unethical corporate Behavior does not impact a company's stakeholders.

Back 37

False

Front 38

The issue of corporate social responsibility has advanced from an abstract debate to a core performance assessment issue with clearly established legal liabilities.

Back 38

True

Front 39

The notion that anything which isn't specifically labeled as wrong Must Be OK encourages ethical actions in employees prone to unethical Behavior.

Back 39

False

Front 40

An organization's code of ethics does not pertain to the everyday function of its managers and employees.

Back 40

False

Front 41

What is a value chain? Identify the key functions of a company's value chain.

Back 41

A value chain is composed of key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service. The key functions are identified as research and development, which develops and creates new product designs. Manufacturing, which sources the components and builds the product. Marketing and advertising, sales, and customer service.

Front 42

Discuss the statement that HR should be at the center of any corporate code of ethics.

Back 42

Many argue that HR should be at the center of any corporate code of ethics since it is a document that should represent the entire organization as a voice of reason in ensuring that all the critical areas are addressed. HR professionals must have helped ensure that ethics is a top organizational priority, HR must ensure that the leadership selection and development processes include and ethical component, HR is responsible for ensuring that the right programs and policies are in place, HR must stay abreast of Ethics issues and in particular the changing legislation and sentencing guidelines for unethical conduct.

Front 43

Discuss conflict of interest with an example.

Back 43

A conflict of interest is a situation in which one relationship or obligation places you in direct conflict with an existing relationship or obligation. For example, Selling a product that has the potential to be harmful to the environment and customers represent a significant conflict of interest.

Front 44

Discuss the potential ethical dilemmas associated with Manufacturing.

Back 44

The pressures in manufacturing are very similar to those in the R&D function as manufacturers face the ethical question, "do you want to build fast, or do you want to build right?" From an organizational perspective, The Firm would want both, especially if it knows that its biggest competitor also is racing to put a new product on the market. The Firm also faces the ethical challenges inherent in arriving at a compromise- which corners can be cut and by how much.

Front 45

Discuss the pressure placed on an organization's accounting department to maintain creative bookkeeping techniques.

Back 45

Corporations try to manage their expansion at a steady rate of growth. If they grow too slowly or two erratically from year to year, investors may see these groups as unstable or in danger of falling behind the competition. If corporations grow too quickly, investors May develop unrealistic expectations of future growth. This inflated Outlook can have a devastating effect on a corporation's stock price of quarterly numbers are not meant. Investors have shown a pattern of over-reacting too bad news by dumping their stock.

It is legal to defer receipts from one quarter to the next to maintain tax liability. However, accountants face ethical challenges when requests are made for far more illegal practices, such as falsifying accounts, Under reporting income, overvaluing assets, and taking questionable deductions.

Front 46

For the R&D team, the real ethical dilemmas come when decisions are made about ______.

Back 46

Product quality

Front 47

Which of the following statements is true of organizational culture?

Back 47

Organizational culture includes the values, believe, and Norms shared by all employees of that organization

Front 48

Ethical choices that offer the greatest good for the greatest number of people refer to the theory of ______.

Back 48

Utilitarianism

Front 49

A company is of the view that what is best for its shareholders, may not be best for its employees and the community. It also believes that the most efficient means to achieve increased profits its to close its Factory and move production overseas. This is an example of _____.

Back 49

A conflict of interest

Front 50

Anderson Enterprises endorses low-power distance which implies that the firm lays emphasis on a list consultative or Democratic work structure. Subordinates work on important assignments and managers often socialize with them. Which of the following concepts is being reflected in the above scenario?

Back 50

Organizational culture

Front 51

Which of the following statements is true of ethical challenges in organizations?

Back 51

Profit is the main reason behind bending the rules regularly in the workplace

Front 52

Which of the following arguments made by The Advocates of ethical business conduct about the human resource department is true?

Back 52

It should not be the sole creator of the code

Front 53

Which of the following refers to the actions that are taken out of Duty and obligation to a purely moral ideal, rather than based on the needs of the situation, since the principles are seem to apply to everyone, everywhere, and all of the time?

Back 53

Universal ethics

Front 54

A situation where one relationship or obligation places the individual or firm in direct dispute with an existing relationship or obligation defines a _____.

Back 54

Conflict of interest

Front 55

Walter's Inc., a cement manufacturing firm, fails to meet the client deadline for delivering 500 kg of cement to QuickConstruct Inc. The officer responsible for distribution and sale at Walter Inc. bribes the officer in charge of receiving the consignment at QuickConstruct Inc. to alter the date of delivery in the original contract. Which of the following concepts is best Illustrated in the above scenario?

Back 55

Ethical transgression

Front 56

A value chain is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service.

Back 56

True

Front 57

Universal ethics refers to ethical choices that offer the greatest good for the greatest number of people.

Back 57

False

Front 58

If an employee needs a company, the human resource department should host an exit interview to ensure that anything that the organization can learn from the employees department is fed back into the company's strategic plan for future growth and development.

Back 58

True

Front 59

Some of the Legal Financial functions include Under reporting income, overvaluing assets, and taking questionable deductions.

Back 59

True

Front 60

Selling a product that has the potential to be harmful to its first customers represent a significant conflict of interest.

Back 60

True true

Front 61

Differentiate between the instrumental approach and the social contract approach to corporate management.

Back 61

The instrumental approach argue that a corporation's only obligation is to maximize profits for its shareholders by providing goods and services that meet the needs of its customers. The social contract approach, on the other hand, argues that a corporation has an obligation to society over and above the expectations of its shareholders.

Front 62

Explain Corporate social responsibility and the Assumption on which it operates.

Back 62

Corporate social responsibility are the actions of an organization targeted towards achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations. Also known as corporate citizenship and corporate conscience.

This definition assumes that the corporation is operating in a competitive environment and that the managers of the corporation are committed to an aggressive growth strategy while complying with federal, state, and local legal obligations.

Front 63

Explain the practice of making a company's operations "carbon neutral."

Back 63

One of the newest and increasingly questionable practices in the world of CSR is the notion of making business operations carbon neutral in such a way as to offset whatever damage is being done to the environment through greenhouse gas emissions by purchasing credits from carbon positive projects to balance out the emissions. Initially developed as a solution for those industries that face significant challenges in reducing their emissions , the concept has quickly spawned a diverse collection of vendors that can assist in achieving carbon neutrality, along with a few markets in which emissions credits can now be bought and sold.

Front 64

Discuss the difference between ethical, altruistic, and strategic types of corporate social responsibility (CSR).

Back 64

Ethical CSR pursues a clearly defined sense of social conscience in managing a company's financial responsibilities to shareholders, it's legal responsibilities to its local community and society as a whole, and it's at the core responsibilities to do the right thing for all of its shareholders. Altruistic CSR takes a philanthropic approached by underwriting specific initiatives to give back to the company's local community or two designated national or International programs. Strategic CSR include philanthropic activities targeted toward programs that generate the most positive publicity or Goodwill for the organization.

Front 65

Depending on the actions taken by a corporation, some stakeholders will be positively affected and others will be negatively affected. Explain.

Back 65

Corporations actions impact their customers, their employees, their suppliers, and the communities in which they produce and deliver their goods and services. Depending on the actions taken by the corporation, some of these groups will be positively affected and others will be negatively affected. For example, if a corporation is operating on unprofitably in a very competitive market, it is unlikely that it will raise prices to increase profits.

Front 66

In addition to achieving social benefits, which of the following best illustrates that a company is effectively implementing Corporate social responsibility (CSR)?

Back 66

The company fulfills its legal obligations

Front 67

Which of the following illustrates that a company has failed at implementing Corporate social responsibility (CSR)?

Back 67

The company does not pay all taxes related to the profitable business operations

Front 68

Which of the following statements is true of corporate social responsibility (CSR)?

Back 68

Many companies a walk to CSR only after being surprised by public responses to issues they had not previously thought were part of their business responsibilities

Front 69

Spark Inc. (SI), a multinational corporation, had reported large losses in the previous Financial year. To overcome these losses, the company planned to take the instrumental approach to corporate management. Which of the following best illustrates this approach?

Back 69

SI uses its resources to enhance the productivity of employees and does increase its profits

Front 70

Which of the following statements is true of the social contract approach to corporate management?

Back 70

The modern social contract approach argues that there is an obligation for the corporation to meet the demands of the society rather than just the demands of a targeted group of customers

Front 71

According to Henry Ford II, which of the following is true of Corporations?

Back 71

He recognized that corporations do not operate in an isolated environment

Front 72

Corporations that experiment with Corporate social responsibility initiatives run the risk of creating adverse results as

Back 72

The employees feel that they are working for an insincere, uncaring organization

Front 73

Bector Airlines supports relief campus in the Republic of Cadmia with donations of both money and employee donated volunteer hours. It also provides packaged food in times of natural crisis such as hurricanes, earthquakes, Etc. This is an example of ______ CSR.

Back 73

Altruistic

Front 74

Corporate social responsibility initiatives

Back 74

Do not always generate immediate financial gains to the organization

Front 75

The policy of ______ is the premise of corporate social responsibility were doing what's best for the customers translates into what's best for the company in the long run.

Back 75

Doing well by doing good

Front 76

Globalization represents a new stage of capitalist development, this time with public institutions in place to protect Society by balancing private corporate interests against broader public interest

Back 76

False

Front 77

In contrast to aligned immorality of altruistic CSR, critics argue that strategic CSR is ethically commendable since these initiatives benefits stakeholders while meeting fiduciary obligations to the company's shareholders.

Back 77

True

Front 78

Critics have argued that, from an ethical perspective, altruistic CSR is a moral sense it represents a violation of shareholder rights if they are not given the opportunity to vote on the initiatives launched in the name of corporate social responsibility.

Back 78

True

Front 79

Corporations merely experimenting with corporate social responsibility initiatives run the risk of creating adverse results as the public sees little more than a token action that is concerned with publicity rather than community.

Back 79

True

Front 80

Apart from achieving a social benefit over and above maximizing profits for its shareholders, Corporate social responsibility also requires an organization to meet all its legal obligations.

Back 80

True

Front 81

What is corporate governance? Why is it important?

Back 81

Corporate governance is the process by which organizations are directed and controlled. It is concerned with how well or going to stations meet their obligations to their stakeholders. It ensures the accountability of the managers to board members, and in turn, the accountability of board members to share holders. Good corporate governance plays a vital role in underpinning the integrity and effect fish in sea or financial markets. Poor corporate governance weakns a company's potential and at wrost can pave the way for financial difficulties and even fraud. If companies are well governed, they will usually outperform other companies and will be able to attract investors whose support in finance further growth.

Front 82

Explain the comply or explain guideline. Why did the comply or else policy come into Force?

Back 82

The comply or explain guideline gave companies the flexibility to comply with a set of governance operating standards or explain why they chose not to in their corporate documents. The vagueness of what would constitute an acceptable explanation for not complying, raised concerns that comply or explain really wouldn't do much for corporate governance.

The string of financial scandals that followed the report led many critics to argue that comply or explain obviously offered no real deterrent to corporations. The answer, they argued, was to move to a more aggressive approach of comply or else, where failure to comply results in stiff Financial penalties. The sarbanes-oxley act of 2002 came into force in Incorporated this approach.

Front 83

Does a commitment to good corporate governance affect a company's profitability?

Back 83

A commitment to good corporate governance makes a company both more attractive to investors and lenders, and more profitable. A Deutsche Bank study of Standard & Poor's 500 firms show that companies with strong or improving corporate governance outperform those with poor or deteriorating governance practices.

Front 84

What roles do the audit committee and compensation Committee of an organization play in ensuring good governance?

Back 84

The audit committee is staffed by members of the board of directors plus independent or outside directors. The primary responsibilities of audit committee or to oversee the financial reporting process, monitor internal controls, monitor the choices of accounting policies and procedures, and oversee the hiring and performance of external additions in reducing the company's financial statements.

The compensation committee is also stopped by the members of the board of directors plus independent or outside directors. The primary responsibility of the compensation committee is to oversee compensation packages for the senior Executives of the corporation. The committee is responsible for setting the compensation for the CEO and other senior executives. Typically, this compensation will consist of a base salary, performance bonus, stock options, and other perks.

Front 85

Corporate governance is the process by which

Back 85

Corporations are directed and controlled

Front 86

Setting up a governance system that allows organizations to be directed and controlled

Back 86

Leads to underpinning the integrity and efficiency of financial markets

Front 87

Poor corporate governance

Back 87

Weakens a company's potential and makes it less attractive to investors

Front 88

One of the responsibilities of the audit Committee of a company is to

Back 88

Monitor the company's accounting policies and procedures

Front 89

Why was the comply or explain approach to corporate governance problematic?

Back 89

It's definition of what constitutes an acceptable explanation for not complying was vague

Front 90

Which of the following is an effect of merging the roles of chief executive officer and the chairperson of the board?

Back 90

The independence of the board is compromised

Front 91

Which of the following is true of the crafted principles of government?

Back 91

It recommends creating a culture of consistency, accountability, and responsibility

Front 92

Which of the following is true of ethical misconduct?

Back 92

It can occur even with all the checks governing the board of directors in place

Front 93

Which of the following is true of managers in an organization with good corporate governance?

Back 93

Managers should fulfill a fiduciary responsibility to the owners

Front 94

A commitment to good corporate governance

Back 94

Makes a company more attractive to investors

Front 95

Which of the following checks, when in place, reduces the risk of fraud or unethical behavior in a corporation?

Back 95

The participants of the governance process must be made accountable effectively

Front 96

By permitting one individual to function as both the Chief Executive Officer of a company and the chairperson of its board, the board is giving the benefit of leadership from someone who is in touch with the inner workings of the organization.

Back 96

True

Front 97

If the board of directors is to serve its purpose in setting the operational tone for an organization, it should be comprised of members who represent professional conduct in their own organizations.

Back 97

True

Front 98

Studies show that a commitment to good corporate governance makes a company bought more attractive to investors and lenders, and more profitable.

Back 98

True

Front 99

Having all the effective mechanisms listed on the corporate governance checklist in place ensures completely effective corporate governance.

Back 99

False

Front 100

Ethical misconduct as possible even if the board of directors passes all the criteria established by Walter Salmon.

Back 100

True