Ethics in Management
Textbook Exam Questions
Course Introduction
Ethics in Management explores the principles and frameworks essential for responsible decision-making in contemporary organizations. The course examines the ethical challenges faced by managers, including issues related to corporate governance, social responsibility, workplace diversity, and sustainability. Students analyze real-world case studies, discuss moral dilemmas, and evaluate the impact of ethical leadership on organizational culture and stakeholder relations. Emphasis is placed on developing ethical reasoning skills, understanding various ethical theories, and applying them effectively to managerial situations in both local and global contexts.
Recommended Textbook
Understanding Business Ethics 3rd Edition by Peter A. Stanwick
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Page 2
Chapter 1: The Foundation of Ethical Thought
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Sample Questions
Q1) Which of the following is not one of Ross's seven guiding principles?
A) Gratitude
B) Justice
C) Self-Improvement
D) Greed Answer: D
Q2) Existentialism is based on the belief that all individuals agree to social contracts to be a member within a society.
A)True
B)False
Answer: False
Q3) Which of the following is not one of the three types of ethical examinations?
A) Descriptive
B) Constructive
C) Analytical
D) Normative
Answer: B
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Page 3
Chapter 2: The Evolving Complexities of Business Ethics
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Sample Questions
Q1) Which of the following factors do not characterize high levels of mutual trust in organizations?
A) Positive relationships between managers and subordinates
B) Delegation of decision making
C) High remuneration levels
D) Consistent and predictable behavior
Answer: C
Q2) Trust within an organization reinforces and encourages delegation of decisions, mutual concern, and whistle-blowing
A)True
B)False
Answer: False
Q3) Based on the findings of the 2011 National Business Ethics Survey, what is not a positive trait for baby boomers?
A) Hardworking
B) Idealistic
C) committed to harmony
D) Tech savvy
Answer: D
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Page 4
Chapter 3: Stakeholders and Corporate Social Responsibility
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Sample Questions
Q1) ______________ managers focus only on their own goals and the goals of the company and consider legal requirements as constants or barriers that are ignored when their corporate actions are implemented.
A) Emoral
B) Immoral
C) Amoral
D) Moral
Answer: B
Q2) Which coffee shop paid $1.26 per pound for fair trade coffee beans in the case?
A) Mountain People's Co-Op
B) Whole Foods
C) Costa Coffee
D) Starbucks
Answer: A
Q3) The common goal of most NGO campaigns is to use customer and public pressure to force the corporation to adjust its strategic focus.
A)True
B)False
Answer: True
Page 5
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Chapter 4: Ethics and Financial Reporting
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Sample Questions
Q1) Under the cookie jar system, management will build up financial reserves in profitable years and release the financial reserves into the financial statements during unprofitable years.
A)True
B)False
Q2) In a short essay, discuss how the practices of one time charges and cookie jar accounting enable managers to manipulate financial statements or manage earnings.
Q3) As a consequence of the French government investigation following receipt of eight DVDs of encrypted data, $250 to $300 million was recovered from the proceeds of A) Illegal arms sales
B) Money laundering
C) Tax evasion
D) Blood diamond extraction
Q4) Escalation of commitment occurs when the individual is hesitant to reject a biased proposal from someone else.
A)True
B)False
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6
Chapter 5: Ethical Leadership and Corporate Governance
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Q1) A(n) ______________ leader is a manager who has strong ethical traits, behaviors, and decision making of a moral person but is not able to transfer those values to other employees within the firm.
A) Unethical
B) Ethical
C) Hypocritical
D) Inconsistent
Q2) The ____________ actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions.
A) Intervening board
B) Passive board
C) Certifying board
D) Operating board
Q3) The principles of ethical power include all of the following except
A) Punishment
B) Purpose
C) Perspective
D) Patience
Q4) In a short essay, discuss corporate governance.
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Chapter 6: Strategic Planning, Corporate Culture, and Corporate Compliance
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Q1) Constance Bagley designed a _______________ process to help decision makers make the right decisions
A) Decision ladder
B) Decision tree
C) Three step
D) True false grid
Q2) The taking of money illegally from a firm or other source is called
A) Extortion
B) Bribery
C) Embezzlement
D) Fraud
Q3) The mirror test involves the decision maker's ability to look in the mirror after the decision has been made and state that he or she has made the right choice.
A)True
B)False
Q4) In a short essay, list and discuss the three levels on which corporate culture exists simultaneously within a firm.
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Chapter 7: Decision Making and Human Resource Issues
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Q1) Which of the following is not one of the elements of ethics?
A) Doing the right thing
B) Making the right choices
C) Presenting the right ideas
D) Raising the share price
Q2) ______________ is based on the background, family support system, and life experiences a person has before the moral decision is made.
A) Resultant luck
B) Circumstantial luck
C) Constitutive luck
D) Virtual luck
Q3) In a short essay, compare and contrast the roles of power and influence in ethical decisions.
Q4) In a short essay, list and discuss the three categories of moral luck.
Q5) Which is not a trait of the perfect leader according to Machiavelli?
A) Ability to manipulate
B) Bold in action
C) Stealthy when needed
D) Negotiating in an ethical manner
Q6) In a short essay, list and discuss the elements involved in employee monitoring.
Page 9
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Chapter 8: Ethics and the Environment
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Q1) Ramus argues that employees are key stakeholders in the implementation of environmental commitment. _____________ is a key barrier to gaining their commitment?
A) Strategic auditing
B) Intrinsic personal awards
C) Extrinsic personal awards
D) lack of support by line managers
Q2) Firms with an ecobranding strategic focus do not aim to generate a higher profit margin for its products and services.
A)True
B)False
Q3) In a short essay, list and discuss the five types of risks a firm encounters due to the impact of climate change.
Q4) _____________, as defined by the EPA, is a periodic, objective, and documented assessment of an organization's operations compared to the audit criteria.
A) Strategic auditing
B) Operational auditing
C) Ethical auditing
D) Environmental auditing
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Chapter 9: Ethics and Information Technology
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Sample Questions
Q1) Cookies are a form of monitoring customers and potential customers.
A)True
B)False
Q2) Which of the following is not one of the consumer protection tools recommended by the Federal Trade Commission?
A) Protect your private information
B) Pay attention
C) Use your common sense
D) Share passwords
Q3) An effective data policy needs to address issues of all of the following except
A) Privacy
B) Accuracy
C) Ownership
D) Profitability
Q4) In a short essay, explain the USA PATRIOT Act.
Q5) As access and accumulation of information become easier within a firm, so does the probability that information becomes more accurate.
A)True
B)False
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Chapter 10: Ethics and Information Technology
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Q1) In a short essay, list the seven steps to developing a customer relationship management model.
Q2) Interorganizational relationships refer to the personal dynamics between the purchasing individual and the supplier salesperson.
A)True
B)False
Q3) Which of the following is NOT one of the four factors that are able to predict whether a consumer would participate in a boycott?
A) Desire to make a difference
B) Scope of self-enhancement
C) Counterarguments that inhibit boycotting
D) Value system of the boycotter
Q4) ______________ is based on who has the bargaining power between the purchaser and the supplier.
A) Intercultural power
B) Interorganizational power
C) Interorganizational relationships
D) Interpersonal relationships
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Chapter 11: Ethical Issues in the Developing World
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Q1) Which of the following is NOT one of the companies that joined forces in 2003 to help lead a corporate response to human rights issues by developing the Business Leaders Initiative on Human Rights?
A) Barclays PLC
B) MTV Networks Europe
C) The Body Shop International
D) Microsoft
Q2) The purpose of the United Nations Millennium Summit was to establish global goals to address human development challenges.
A)True
B)False
Q3) What is not a strategic focus for firms who concentrate on bottom of the pyramid customers?
A) Large volume low profit margins
B) Transactions taking place in an informal market
C) Long term view of the project
D) Products based on normal market conditions
Q4) In a short essay, list and discuss the root causes of hunger.
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Page 13
Chapter 12: Establishing a Code of Ethics and Ethical Guidelines
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Q1) In a short essay, list and discuss the four types of statements that a corporation may adopt to communicate the corporation's view of the subject of ethics.
Q2) All of the following are ethical values a firm should consider when developing and/or modifying a code of ethics except
A) Integrity
B) Justice
C) Reciprocity
D) Utility
Q3) The annual report of the firm is an element of the Living Code of Ethics.
A)True
B)False
Q4) General Electric in 2010 published its Citizenship Report titled ______.
A) Financial Growth
B) Sustainable Growth
C) Sustainable Development
D) Financial Development
Q5) The three major stages of the TRM system are unfreezing, moving, and refreezing.
A)True
B)False
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Chapter 13: Evaluating Corporate Ethics
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Sample Questions
Q1) When was the Federal Sentencing Guidelines for Organizations Act passed?
A) 1957
B) 1989
C) 1991
D) 1997
Q2) The ____________ has the authority to enforce the whistle-blower section of the Sarbanes-Oxley Act.
A) Federal Trade Commission
B) Occupational Safety and Health Administration
C) Federal Communications Commission
D) Securities Exchange Commission
Q3) Many corporations are finding themselves appointing ethics officers.
A)True
B)False
Q4) Low uncertainty avoidance not only accepts risk and ambiguity but embraces it.
A)True
B)False
Q5) In a short essay, discuss the role of ethics officers.
Q6) In a short essay, describe the concept of ethical auditing.
Page 15
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