Quiz 1

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Question #1

When companies find that responding to public needs gives them a competitive edge and enhances long-term success, they have moved to which stage of corporate responsibility?

A Managerial

B Strategic

C Complaint

D Civil

Question #2

Organizational leaders must be willing to _____ and take appropriate action.

A negotiate with unethical employees

B give and take in matters of situational ethics

C fire unethical subordinates

D hold employees accountable for their conduct

Question #3

Because the conspiracy of fraud was brought to an end with Cynthia Cooper’s intervention, WorldCom investor and employee losses were _____.

A greater

B trivial

C the same

D less

Question #4

A man newly hired at the same time as a woman will often get _____.

A a higher-paying entry-level assignment

B a more convenient parking space

C equal responsibility and pay

D all of the above

Question #5

Executives at Big Book Inc. had uncovered an internal problem involving embezzlement in the royalty department. In having to decide whether to go to the police or handle the problem themselves, they were faced with the possibility of a(n) _____.

A conflict of interest

B ethical lapse

C ethical dilemma

D ethical misdemeanor

Question #6

Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company’s regular suppliers. The products were sent only to one restaurant and Herb and Betty weren’t aware of the problem until two customers became ill. Why hadn’t the chef reported the tainted food? He didn’t see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn’t take responsibility for their chef’s actions. If Kari reports the owners to the health department because they refuse admit to disclose what happened, she’d be called a _____.

A whistle-blower

B chronic whiner

C victim of an unethical lapse

D disloyal employee

Question #7

Over a recent three-year period, the once admired company Johnson & Johnson experienced 24 product recalls of defective products. When company executives learned that yet another product, Motrin, was defective and needed to be recalled, they:

A immediately notified the public and instructed retailers to remove the defective Motrin from the shelves.

B ignored the advice of their quality control people and continued to sell the Motrin without warning customers.

C instructed retailers to continue selling the Motrin but told them to post a notice warning customers that taking the Motrin could be harmful.

D hired contractors to go into stores that sold the product and secretly buy every pack of Motrin on the shelves.

Question #8

In many companies, _____ is a key motivator in maintaining ethical conduct in business dealings.

A satisfying customers

B keeping employees

C doing the right thing

D making a profit

Question #9

Which of the following companies was charged with $11 billion in the largest fraud in U.S. history?

A WorldCom

B Tyco

C Adelphia

D Enron

Question #10

“How can I change my behavior so that I can move up a notch by ethical standards?” If you find that question hard to answer, perhaps you could rephrase it as _____

A “How would I like to be treated in a given situation?”

B “What advice can I get from my personal mission statement?”

C “What is my set of core values?”

D “How can I cultivate an ethical personality?”

Question #11

The federal minimum wage is set by the _____.

A U.S. government

B EEOC

C chamber of commerce

D Supreme Court

Question #12

In the fall of 2001, a company called _____ admitted to fraudulent accounting practices concocted to overstate its income over a four-year period.

A Tyco

B WorldCom

C Adelphia

D Enron

Question #13

If you work for a company that expects you to deceive customers about the quality of your product, you should:

A leave the organization.

B follow the expected practice unless it’s illegal.

C go along with the practice because it’s in the company’s best interests.

D tell your customers what the company is doing.

Question #14

According to J.C. Penney’s “Statement of Business Ethics” all of the following are acceptable except:

A attendance at paid-for business functions.

B trips of several days.

C cash gifts below $50 in value.

D sports events and golf outings if practical for employees to reciprocate.

Question #15

When McDonald’s was first criticized for serving unhealthy food that contributed to a national epidemic of obesity, what was its response?

A Its management said, “We offer healthy choices. It is up to individuals to set limits and to be informed.”

B The company improved its Happy Meal by letting kids substitute apple slices and low-fat milk for the usual fries and soda.

C The company immediately announced that it was eliminating its super-size meal.

D It enlisted the cooperation of other fast food companies in encouraging children and adults to eat healthier foods.

Question #16

In 2002, a federal law known as the _____ Act was created to protect whistle-blowers.

A Smoot-Hawley

B Whistle-Blower Buffer

C Oxbow

D Sarbanes-Oxley

Question #17

The _____ Agency has been a major force in cleaning up U.S. waters.

A Environmental Protection

B Federal Food and Drug

C Central Intelligence

D Maritime

Question #18

Pembroke Native Flower Seeds has a unique _____ or ways of doing things that evolve through shared values and beliefs.

A corporate rulebook

B ethical standard

C code of behavior

D culture

Question #19

The Hershey code of conduct covers all of the following except;

A executive behavior in the event of fraud.

B protection of proprietary information.

C conflict of interests.

D the use of corporate funds and resources.

Question #20

When companies give employees time off to do volunteer work, which stakeholders are they being responsible to?

A Owners

B Customers

C Employees

D Communities

Question #21

J.C. Penney’s _____ states that employees cannot accept any cash gifts or any noncash gifts except those which have a value below $50.

A “Code of Business Ethics”

B “Statement of Business Ethics”

C “Mission Statement”

D “Statement of Ethical Conduct”

Question #22

According to Johnson & Johnson CEO James Burke, his only regret in the wake of the Tylenol tampering tragedy was the fact that the:

A tamperer was never caught.

B nationwide recall destroyed a valuable brand.

C tamperer received only a 10-year sentence.

D cost of tamper-resistant bottles cost hundreds of jobs at J&J.

Question #23

Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company’s regular suppliers. The products were sent only to one restaurant and Herb and Betty weren’t aware of the problem until two customers became ill. Why hadn’t the chef reported the tainted food? He didn’t see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn’t take responsibility for their chef’s actions. Of all the people involved in this business, who most needs ethics counseling?

A The chef

B Kari

C The supplier

D Betty

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