Individual ethics and organizational ethics have an impact on an employee’s

HRM 522 FINAL EXAM PART 1. TWO VERSIONS POSTED MAKING 50 QUESTIONS FOR PART 1 ONLY

Question 1

Both individual ethics and organizational ethics have an impact on an employee’s
Answer

productivity.

personal happiness.

compensation.

fitness level.

ethical intention.

Question 2

Which of the following is not a form of retaliation commonly experienced by whistle-blowers?
Answer

Relocation or reassignment

No promotion or raises

The cold shoulder by coworkers

Exclusion from work activities

Praise by supervisors for their honesty

Question 3

Motivation is defined as
Answer

a person’s incentive or drive to work.

a force within the individual that focuses his or her behavior on achieving a goal.

personal ambition without regard to the impact on others.

a desire to be finished with a project.

individual goals.

Question 4

The ability to influence the behavior of others by offering them something desirable is best described as
Answer

coercive power.

reward power.

expert power.

legitimate power.

referent power.

Question 5

The exacting organizational culture is interested in
Answer

performance but has little concern for employees.

investors’ impressions of profitability.

maintaining a strong corporate culture.

employees and performance.

employees’ impressions

Question 6

The ________ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control.
Answer

democratic

coaching

affiliative

coercive

pacesetting

Question 7

To motivate employees, an organization offers ________ to ________ employees to work toward organizational objectives.
Answer

punishment; force

peer pressure; guilt

incentives; encourage

rewards; bribe

threats; frighten

Question 8

A cultural audit may be used to identify
Answer

how cultured a firm’s employees are.

unethical employees.

unethical organizations.

an organization’s culture.

organizational structure.

Question 9

The ultimate “stick” associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company’s ethical compliance efforts, and
Answer

reporting to the U.S. Sentencing Commission on the company’s progress in avoiding misconduct.

installation of an ethics hotline.

payment of any penalties levied.

appointment of an appropriate high-level manager to oversee the company’s program.

divestiture of all assets.

Question 10

Organizational ________ can contribute to diminished employee trust and increased employee turnover.
Answer

leadership succession

compensation policies

ethics programs

rules

misconduct

Question 11

Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct?
Answer

Conduct orientation

Values orientation

Coercive orientation

Obedience orientation

Compliance orientation

Question 12

In the absence of ethics programs, employees are likely to make decisions based on
Answer

their observations of how their coworkers and superiors behave.

how they and their family members behave at home.

their conscience.

their religious values.

their family values

Question 13

A strong ethics program includes all of the following elements except
Answer

a clause promising good stock market performance.

a written code of conduct or ethics.

formal ethics training.

auditing, monitoring, enforcement, and revision of standards.

an ethics officer to oversee the program

Question 14

For an ethical compliance program to properly function,
Answer

consistent enforcement and disciplinary action are essential.

employees must be monitored using any means necessary.

it is not necessary to set measurable program objectives.

the same program should be used in all countries of operation, regardless of cultural differences.

the company must wait until after misconduct occurs to develop a means of preventing

Question 15

In the long run, a(n) ________ orientation may be better for companies, perhaps because it increases employees’ awareness of ethics issues at work.
Answer

code

obedience

compliance

values

individual

Question 16

A(n) ________ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) ________ orientation strives to develop shared standards.
Answer

obedience; values

compliance; values

legal; values

values; compliance

values; obedience

Question 17

Which of the following is probably the best way for a manager to provide good ethics leadership?
Answer

Hire an ethics officer

Write a code of conduct

Conduct ethics audits

Set a good example

Only hire good employees

Question 18

________ is an independent assessment of the quality, accuracy, and completeness of a company’s social or ethics report.
Answer

Publication

Verification

Auditing

Analysis

Validation

Question 19

Which of the following does not have a significant impact on the success of an ethics program?
Answer

Senior management’s ability to successfully incorporate ethics into the organization

The quality of communication

The size of the company

The content of the company’s code of ethics

The frequency of communication regarding the ethical code and program

Question 20

Retaliation against employees that report misconduct is a problem in ________ cultures.
Answer

weak ethical

strong ethical

high power distance

diverse

international

Question 21

Ethics audits can help companies identify potential ________ so they can implement plans to eliminate or reduce them before they reach crisis dimensions.
Answer

competitive advantages

risks and liabilities

productivity issues

technological glitches

market opportunities

Question 22

Which of the following is not a benefit of ethics auditing?
Answer

It can improve a firm’s performance and effectiveness.

It can increase a firm’s attractiveness to investors.

It can identify potential risks.

It can harm relationships with stakeholders.

It can reduce the risks associated with misconduct.

Question 23

Which of the following is not a step in the ethics auditing process?
Answer

Secure commitment of top executives and directors.

Review organizational mission, goals, values and policies, and define ethical priorities.

Report the results to the U.S. Sentencing Commission.

Collect and analyze relevant information.

Verify the results.

Question 24

What should be the first step in the auditing process?
Answer

Secure the commitment of top executives and directors

Define the scope of the audit

Establish a committee to oversee the audit

Collect and analyze data

Review organizational mission, goals, values, and policies

Question 25

________ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization’s success.
Answer

Customers

Employees

Special interest groups

Competitors

Legislators

VERSION 2
Question 1

________ are used to subdivide duties within functional areas of a company.
Answer

Work groups

Individuals

Experts

Consultants

Committees
Question 2

Which of the following is not a form of retaliation commonly experienced by whistle-blowers?
Answer

Relocation or reassignment

No promotion or raises

The cold shoulder by coworkers

Exclusion from work activities

Praise by supervisors for their honesty
Question 3

Ethical concerns in centralized structures can occur because of very little
Answer

mobility.

upward communication.

scapegoating.

downward communication.

communication rigidity
Question 4

A cultural audit may be used to identify
Answer

how cultured a firm’s employees are.

unethical employees.

unethical organizations.

an organization’s culture.

organizational structure
Question 5

The ________ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control.
Answer

democratic

coaching

affiliative

coercive

pacesetting
Question 6

Because researchers have defined culture so many different ways, ________ and ________ are often used interchangeably.
Answer

cultural cues; management

cultural values; anthropology

cultural values; culture

cultural cues; laws

cultural cues; management
Question 7

An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is
Answer

centralized.

decentralized.

flat.

tall.

ethical.
Question 8

The ability to influence the behavior of others by offering them something desirable is best described as
Answer

coercive power.

reward power.

expert power.

legitimate power.

referent power
Question 9

The ultimate “stick” associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company’s ethical compliance efforts, and
Answer

reporting to the U.S. Sentencing Commission on the company’s progress in avoiding misconduct.

installation of an ethics hotline.

payment of any penalties levied.

appointment of an appropriate high-level manager to oversee the company’s program.

divestiture of all assets.
Question 10

Organizations can become “bad barrels” not because of unethical individuals but because
Answer

the pressure to succeed creates opportunities that reward unethical decisions.

the pressure to succeed creates opportunities that punish unethical decisions.

they lack leadership.

they lack values.

they have no “bad apples
Question 11

With regard to ethics, training and communication initiatives should reflect
Answer

the structure of the board of directors.

the organization’s stock performance.

the organization’s size.

the unique characteristics of an organization.

the self-interest of the CEO
Question 12

At the heart of the Federal Sentencing Guidelines for Organizations is a
Answer

“tit-for-tat” philosophy that punishes wrongdoing.

Golden Rule philosophy.

Iron Fist philosophy severely punishes wrongdoing.

carrot-and-stick philosophy that rewards efforts to improve ethics.

utilitarian philosophy of the greatest good for the greatest number
Question 13

________ are formal statements that describe what an organization expects of its employees in terms of ethical behavior.
Answer

Mission statements

Codes of conduct

Policies on confidentiality

Environmental policies

The Federal Sentencing Guidelines for Organizations
Question 14

________ may be more inclined to engage in unethical organizational conduct because of social isolation that creates insensitivity and a lower level of motivation to regulate ethical decision making.
Answer

Low-level employees

International managers

Top managers

Government officials

Fortune 500 companies

Question 15

The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually
Answer

improve their ethics programs.

eliminate misconduct.

fail to install a Federal Sentencing Guidelines program.

fail to report ethics program activities.

tolerate misconduct.
Question 16

All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except
Answer

observation of employees.

internal audits.

firing.

surveys.

reporting systems.
Question 17

Under the ________, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements.
Answer

Sherman Antitrust Act

Ethical Compliance Act

Robinson-Patman Act

Sarbanes-Oxley Act

Sherman Antitrust Act
Question 18

________ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization’s success.
Answer

Customers

Employees

Special interest groups

Competitors

Legislators
Question 19

During the data-collection phase of the audit, the primary objective is to generate a variety of opinions about how the company is perceived and whether it is
Answer

fulfilling employee benefits commitments.

bringing in new customers.

meeting profit projections.

meeting earnings projections.

fulfilling stakeholders’ expectations
Question 20

While ideally the board of directors financial audit committee conducts ethics audits, in most firms they are conducted by
Answer

managers or ethics officers.

executive officers.

the CEO.

outside consultants.

secondary stakeholders
Question 21

What should be the first step in the auditing process?
Answer

Secure the commitment of top executives and directors

Define the scope of the audit

Establish a committee to oversee the audit

Collect and analyze data

Review organizational mission, goals, values, and policies
Question 22

While social reports often discuss issues related to a firm’s performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a firm’s performance in terms of
Answer

ethical and legal conduct.

environmental performance.

financial performance.

customer satisfaction.

ethical misconduct
Question 23

The process of verifying the results of an audit should involve standard procedures that control the ________ of the information.
Answer

completeness

effectiveness and efficiency

reliability and validity

independence

veracity
Question 24

The concept of ethics auditing emerged from the movement to audit and report on companies’ broader ________ initiatives.
Answer

product development

legal compliance

risk management

public relations

social responsibility
Question 25

Which of the following is a statement that attests that the financial statements made in an audit are fairly stated, without limitations?
Answer

Adverse opinion

Qualified opinion

Unqualified opinion

Favorable opinion

Disclaimer of opinion


 

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