1. An organization’s mission statement highlights its key ethical issues and identifies the overarching values and
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principles that are important to the organization and its decision making.
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a. True
b. False
ANSWER: False f
2. Line operations personnel can be appointed as corporate ethics officers.
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a. True
b. False
ANSWER: True f
3. In a nonprofit organization, the board of directors reports to the local community that it serves.
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a. True
b. False
ANSWER: True f
4. Consistency means that shareholders, customers, suppliers, and the community know what they can expect of an
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organization—that it will behave in the future much as it has in the past.
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a. True
b. False
ANSWER: True f
5. The greater reliance of information systems in all aspects of life has decreased the risk that information technology
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will be used unethically.
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a. True
b. False
ANSWER: False f
6. Increasingly, managers are including ethical conduct as part of an employee’s performance appraisal.
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a. True
b. False
ANSWER: True f
7. Employees may suppress their tendency to act in a manner that seems ethical to them and instead act in a manner
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that will protect them against anticipated punishment.
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8. The term morality refers to social conventions about right and wrong that are so widely shared that they become the
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basis for an established consensus.
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a. True
b. False
ANSWER: True f
9. Laws can proclaim an act as legal, although many people may consider the act immoral.
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a. True
b. False
ANSWER: True f
10. Fairness and generosity are examples of virtues.
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a. True
b. False
ANSWER: True f
11. Lawrence Kohlberg found that the most crucial factor that stimulates a person’s moral development is monetary
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reward for good behavior.
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a. True
b. False
ANSWER: False f
12. Multinational and global organizations must not present a consistent face to their shareholders, customers, and
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suppliers but instead must operate with a different value system in each country they do business in.
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a. True
b. False
ANSWER: False f
13. Legal acts conform to what an individual believes to be the right thing to do.
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a. True
b. False
ANSWER: False f
14. Ethics has risen to the top of the business agenda because risks associated with inappropriate behavior have
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increased, both in their likelihood and in their potential negative impact.
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15. Setting corporate social responsibility (CSR) goals encourages an organization to achieve higher moral and ethical
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standards.
f
a. True
b. False
ANSWER: True f
16. The fairness approach to ethical decision making states that one should choose the action or policy that has the best
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overall consequences for all people who are directly or indirectly affected.
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a. True
b. False
ANSWER: False f
17. The board of directors of an organization is normally responsible for day-to-day management and operations of
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the organization.
f f
a. True
b. False
ANSWER: False f
18. An individual’s manager has very little impact on his or her ethical behavior.
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a. True
b. False
ANSWER: False f
19. In the business world, important decisions are too often left to the technical experts; general business managers
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must assume greater responsibility for these decisions.
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a. True
b. False
ANSWER: True f
20. The goal of the SarbanesOxley Act was to renew investor’s trust in corporate executives and their firm’s financial
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reports following numerous financial scandals in the early 2000s.
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a. True
b. False
ANSWER: True f
21. Individual views on what is moral are so strongly held that there is nearly universal agreement in spite of
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differences in age, cultural group, ethnic background, religion, life experience, education, and gender.
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