HRM 522 WEEK 5 MIDTERM EXAM PART 1
NOTE: TWO VERSIONS POSTED MAKING 50 QUESTIONS
VERSION 1
Question 1
Ethics is a part of decision making
Answer
at all levels of work and management.
primarily at the upper management levels of an organization.
mostly for policy makers.
that is less important than other decision making processes.
only at that lower levels of organizational management.
Question 2
The ________ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation.
Answer
United States Sentencing Commission
Defense Industry Initiative on Business Ethics and Conduct
World Trade Organization
United Nations Global Compact
Federal Sentencing Guidelines for Organizations
Question 3
Ethical culture is defined as
Answer
rules, standards, and moral principles regarding what is right or wrong in specific situations.
the establishment and enforcement of ethical codes throughout the organization.
the development of rules and norms that are socially enforced.
the codification of laws to reward organizations for taking action to prevent misconduct.
acceptable behavior as defined by the company and industry.
Question 4
During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
Answer
Sarbanes-Oxley Act
Federal Sentencing Guidelines for Organizations
Dodd-Frank Wall Street Reform and Consumer Protection Act
Foreign Corrupt Practices Act
Global Sullivan Principles
Question 5
Which of the following is not something a firm might do to encourage organizational ethics and compliance?
Answer
Employee ethics training
Hiring a compliance officer
Ignoring potential ethical issues
Writing a code of ethics
Conducting an ethics and compliance audit.
Question 6
One of the major ethical issues President Obama’s administration focused on was
Answer
decreasing environmental legislation.
deregulation.
tax decreases.
incentives to oil companies.
health care and consumer protection
Question 7
According to the role of ethical culture in performance, all of these are drivers of profit except
Answer
trust.
investor loyalty.
employee commitment.
customer satisfaction.
opportunity for misconduct.
Question 8
Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense?
Answer
Council on Economic Priorities and Social Accountability 8000.
Sarbanes-Oxley Act.
Consumer Protection Act.
Defense Industry Initiative on Business Ethics and Conduct.
Dodd-Frank Wall Street Reform and Consumer Protection Act.
Question 9
In ascending order, Carroll’s four levels of social responsibility are
Answer
ethical, legal, economic, philanthropic.
economic, ethical philanthropic, legal.
economic, legal, ethical, philanthropic.
legal, ethical, economic, philanthropic.
ethical, legal, moral, economic.
Question 10
The term used to express how a firm meets its stakeholder expectations of its economic, legal, ethical, and philanthropic responsibilities is
Answer
reputation.
corporate citizenship.
corporate ethical audit.
ethical citizenship.
fiduciary duties
Question 11
Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
Answer
Supplies of capital and resources.
Expertise and leadership
Word-of-mouth promotion
Infrastructure
Pro-bono bookkeeping
Question 12
The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was
Answer
Adam Smith.
Theodore Levitt.
Norman Bowie.
Herman Miller
Milton Friedman.
Question 13
Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist’s theory are they following most closely with this belief?
Answer
Adam Smith.
Theodore Levitt.
Norman Bowie.
Herman Miller
Milton Friedman.
Question 14
Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
Answer
Investors
Community
Suppliers
Customers
Employees
Question 15
The idea that the mission of business is to produce goods and services at a profit, thus maximizing its contribution to society is associated with
Answer
Adam Smith.
Theodore Levitt.
Norman Bowie.
Herman Miller
Milton Friedman
Question 16
The first of the three activities that are associated with the stakeholder orientation is the
Answer
organization-wide generation of data.
organization’s responsiveness to intelligence.
set of consumer attributes identified.
organizational strategy of target markets.
human relations department’s set of priorities.
Question 17
Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?
Answer
Physical threats
False accusations
Being annoying
Profanity
Performance probation
Question 18
What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?
Answer
Channel
Integrative
Consumer
Product
Conventional
Question 19
________ involves tricking individuals into revealing their passwords or other valuable corporate information.
Answer
Shoulder surfing
Remote hacking
Social engineering
Physical hacking
Dumpster diving
Question 20
Which of the following is not a side-effect of being the victim of workplace bullying?
Answer
Increased productivity
Sleep disturbance
Depression
Increased sick days
Stomach problems
Question 21
Issues related to fairness and honesty may arise because business is sometimes regarded as a
Answer
legal case, where everything must be done to the letter of the law.
contest, with the most ethical firm “winning.”
guerilla war where anything goes in the fight for consumers’ dollars.
game governed by its own rules rather than those of society.
game governed by the rules of society.
Question 22
In marketing communications, lying causes predicaments for companies because it destroys
Answer
trust.
honor.
confidence.
integrity.
products.
Question 23
Ethical issues in business typically arise because of conflicts between individuals’ personal moral philosophies and values and the
Answer
values and attitudes of the organization in which they work.
values and attitudes of the society in which they live.
values and attitudes of the organization in which they work and the society in which they live.
laws and regulations of the country in which they live.
values and attitudes of their parents and religion
Question 24
The ethical decision-making process begins
Answer
with a conflict of interest.
when an individual experiences a conflict between his or her values and those of his or her firm.
when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.
with a conflict in values.
when an individual experiences a conflict between his or her values and those of society.
Question 25
Affirmative action programs
Answer
involve the promotion of unqualified employees.
are not imposed by federal law on employers.
are not very commonly used anymore because there is no need to protect minorities.
only involve the training of individuals.
involve the recruitment, hiring, promotion, and training of qualified individuals
VERSION 2
1. Principles are
2. Ethics is a part of decision making
3. Which of the following is not something a firm might do to encourage organizational ethics and compliance?
4. During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
5. Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues when an individual has
6. Which of the following is generally not considered a business ethics issue?
7. Social responsibility is
8. Investors are concerned about business ethics because they know that misconduct can
9. Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
10. Stakeholders’ power over businesses stems from their
11. Why do critics argue that high compensation for boards of directors is a bad thing?
12. Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?
13. The degree to which a firm understands and addresses stakeholder demands can be referred to as
14. One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that ________.
15. Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
16. The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was
17. ________ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
18. Among retail stores, ________ is a larger problem than customer shoplifting
19. ________ are used to obtain or retain business and are not generally considered illegal in the U.S.
20. What type of fraudulent activity could involve a consumer staging an accident to seek damages?
21. Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?
22. Which of the following is not a consequence of ethical misconduct?
23. Optimization is defined as
24. Which of the following is not a side-effect of being the victim of workplace bullying?
25. Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?
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