Week 11 Final Exam Part 1 – Vivian McClain This final exam consists of 25 multiple choice questions and covers the material in Chapters 7 through 9. 1. A high concern for people but minimal concern for performance can best describe the ________ culture. A. caring B. apathetic C. exacting D. shareholder E. employee 2. The ________ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent. A. 10-30-40-20 B. 20-30-30-20 C. 40-10-10-40 D. 10-40-40-10 E. 80-20 3. The ability to influence the behavior of others by offering them something desirable is best described as A. coercive power. B. reward power. C. expert power. D. legitimate power. E. referent power. 4. Ethical concerns in centralized structures can occur because of very little A. upward communication. B. scapegoating. C. downward communication. D. communication rigidity. 5. A values-based ethics approach to ethical corporate cultures relies on a(n) ________ that defines the firm as well as how customers and employees should be treated A. set of law B. explicit mission statement C. strong CEO D. ethical audit E. relaxed corporate culture 6. Motivation is defined as A. a person's incentive or drive to work. B. a force within the individual that focuses his or her behavior on achieving a goal. C. personal ambition without regard to the impact on others. D. a desire to be finished with a project. E. individual goals. 7. Individuals, often from the same department, who band together for purposes that may or may not be relevant to the organization are called A. quality circles. B. informal groups. C. teams. D. work groups. E. committees. 8. A cultural audit may be used to identify A. unethical employees. B. unethical organizations. C. an organization's culture. D. organizational structure. 9. ________ 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. A. Low-level employees B. International managers C. Top managers D. Government officials E. Fortune 500 companies 10. ________ are formal statements that describe what an organization expects of its employees in terms of ethical behavior. A. Mission statements B. Codes of conduct C. Policies on confidentiality D. Environmental policies E. The Federal Sentencing Guidelines for Organizations 11. All of the following are useful in monitoring ethical conduct and measuring the effectiveness of the ethical program except A. observation of employees. B. internal audits. C. firing. D. surveys. E. reporting systems. 12. Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct? A. Conduct orientation B. Values orientation C. Coercive orientation D. Obedience orientation E. Compliance orientation 13. The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is usually the A. CEO. B. president. C. immediate supervisor. D. ethics officer. E. Chairman of the board. 14. Fostering ethical decision making within an organization requires improving the firm's ethical standards and A. not doing business with suppliers. B. implementing a hiring freeze. C. training the "bad apples" so they are not bad anymore. D. terminating ethical persons. E. terminating the "bad apples" in the organization. 15. For an ethical compliance program to properly function, A. consistent enforcement and disciplinary action are essential. B. employees must be monitored using any means necessary. C. it is not necessary to set measurable program objectives. D. the same program should be used in all countries of operation, regardless of cultural differences. E. the company must wait until after misconduct occurs to develop a means of preventing it. 16. At the heart of the Federal Sentencing Guidelines for Organizations is a A. "tit-for-tat" philosophy that punishes wrongdoing. B. Golden Rule philosophy. C. Iron Fist philosophy severely punishes wrongdoing. D. carrot-and-stick philosophy that rewards efforts to improve ethics. E. utilitarian philosophy of the greatest good for the greatest number. 17. Retaliation against employees that report misconduct is a problem in ________ cultures. A. weak ethical B. strong ethical C. high power distance D. diverse E. international 18. The process of verifying the results of an audit should involve standard procedures that control the ________ of the information. A. completeness B. effectiveness and efficiency C. reliability and validity D. independence E. veracity 19. What should be the final step in the ethics auditing process? A. Define the scope of the audit B. Secure the commitment of top managers and directors C. Collect and analyze data D. Report the findings E. Verify the results 20. A(n) ________ is a financial accounting firm that offers social auditing services or a nonprofit special interest group with auditing experience that verifies the results of ethics auditing data analysis A. stakeholder B. ethics audit consultant C. best practices expert D. financial consultant E. board of directors 21. Which of the following is not a phase of escalation during an ethical disaster? A. The firm's discovery of the misconduct B. Ethical issue recognition C. The firm's response to the misconduct D. The decision to act unethically E. The firm's decision to conduct an ethics audit 22. Which of the following is not one of the top challenges facing CEOs today? A. Keeping pace with regulation B. Protecting against risks C. Managing and utilizing social media D. Gaining adequate compensation E. Managing reputation 23. _______ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization's success. A. Customers B. Employees C. Special interest groups D. Competitors E. Legislators 24. Under the ________, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements A. Sherman Antitrust Act B. Ethical Compliance Act C. Robinson-Patman Act D. Sarbanes-Oxley Act E. Sherman Antitrust Act 25. The concept of ethics auditing emerged from the movement to audit and report on companies' broader ________ initiatives. A. product development B. legal compliance C. risk management D. public relations E. social responsibility