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 Strategic

B Civil

C Complaint

D Managerial

Question #2

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

A negotiate with unethical employees

B fire unethical subordinates

C give and take in matters of situational ethics

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 the same

B greater

C trivial

D less

Question #4

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

A a more convenient parking space

B a higher-paying entry-level assignment

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 ethical dilemma

B ethical misdemeanor

C conflict of interest

D ethical lapse

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 victim of an unethical lapse

B disloyal employee

C chronic whiner

D whistle-blower

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

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

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

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

Question #8

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

A making a profit

B satisfying customers

C doing the right thing

D keeping employees

Question #9

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

A Tyco

B Enron

C Adelphia

D WorldCom

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

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

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 Supreme Court

D chamber of commerce

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 Adelphia

C Enron

D WorldCom

Question #13

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

A follow the expected practice unless it’s illegal.

B tell your customers what the company is doing.

C leave the organization.

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

Question #14

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

A trips of several days.

B cash gifts below $50 in value.

C attendance at paid-for business functions.

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

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

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

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

Question #16

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

A Smoot-Hawley

B Oxbow

C Whistle-Blower Buffer

D Sarbanes-Oxley

Question #17

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

A Central Intelligence

B Maritime

C Environmental Protection

D Federal Food and Drug

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 conflict of interests.

C the use of corporate funds and resources.

D protection of proprietary information.

Question #20

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

A Employees

B Communities

C Owners

D Customers

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 “Mission Statement”

B “Code of Business Ethics”

C “Statement of Business Ethics”

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 received only a 10-year sentence.

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

C tamperer was never caught.

D nationwide recall destroyed a valuable brand.

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 The supplier

C Betty

D Kari

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