Question 1

If top executives at Volkswagen were aware of the "defeat device" that software engineers installed on 11 million vehicles, they failed to promote ethical behaviour in which way?

Accepted Answer

If top executives were aware of the "defeat device", it suggests a lack of commitment to ethical behavior and potentially even an encouragement of unethical behavior, rather than a failure to promote it through specific measures like protecting whistle-blowers or adopting a code of ethics.

Question 2

You are a general manager for a video game company. Your newest game has several levels, each one increasingly more violent. Because the agency that rates video games tested only the first level, it rated the game as appropriate for younger audiences. Your company is happy about this because stricter ratings can hurt sales. You decide to give the ratings agency access to the more violent levels, leading them to re-rate the game for mature audiences only. Company executives are furious about the potential damage to sales, and threaten to fire you. What are the legality and ethics of your actions as a manager in this scenario?

Accepted Answer

By providing the ratings agency with access to the more violent levels, you are ensuring that the game is accurately rated, which is both legal and ethical. It aligns with the responsibility to ensure that consumers, especially younger audiences, are protected from content that is inappropriate for their age group.

Question 3

Safeway, a western Canadian grocery store chain, has signs saying that tips are not accepted, and employees are all informed of this policy. However, many of the baggers commonly accept tips from customers anyway, and they often compare to see who makes the most. Which of the following is the factor affecting the ethical behaviour of Safeway's employees?

Accepted Answer

The social factor affects the ethical behavior of Safeway's employees, as the behavior of accepting tips is influenced by the actions and norms of their peers.

Question 4

Your company has several open positions. Human Resources chooses not to advertise for the positions and instead fills them internally or through word of mouth. Which of the following describes the way your company is acting?

Accepted Answer

While it may be legal to fill positions internally or through word of mouth, it is not ethical to withhold opportunities from a diverse pool of candidates. This could lead to discrimination and limit the company's potential for growth and innovation.

Question 5

The Canadian Textile Industry Association exerts pressure on its members to comply with the ethical standards of the industry by providing information and benefits for textile companies. What does this exemplify?

Accepted Answer

The Canadian Textile Industry Association is a trade association that plays a role in encouraging ethics in its industry. They provide information and benefits to their members to promote ethical standards.

Question 6

The opportunity to be unethical will be reduced if a company deals with violations of its ethical codes in which of the following ways?

Accepted Answer

Dealing with violations of ethical codes firmly and consistently sends a clear message that unethical behavior will not be tolerated, thus reducing the opportunity for such behavior to occur. Leisurely and lightly handling violations or dealing with them on a case-by-case basis may give the impression that unethical behavior is acceptable in certain situations. Restricting action against violations to lower-level employees only can also send the message that higher-level employees are above the ethical code, or that the ethical code applies only to certain individuals within the company.

Question 7

Which of the following factors affecting ethical behaviour includes one's moral values and central attitudes?

Accepted Answer

Individual factors, such as moral values and central attitudes, are important in influencing ethical behavior. These personal beliefs and characteristics can affect how an individual perceives and responds to ethical dilemmas. Social factors, such as social norms and peer pressure, and opportunity factors, such as the potential for reward or punishment, can also play a role in ethical behavior, but the individual's personal values and attitudes are often the most influential. Moral factors are closely related to individual factors, and can be seen as a subcategory of individual factors that specifically includes one's sense of right and wrong or ethical principles.

Question 8

The Canadian government tries to encourage ethical behaviour by legislating stricter regulations like Bill 198, also known as the "Canadian Sarbanes-Oxley" Act or C-SOX. This bill regulates internal controls on financial statements and disclosures. Which of the following must comply with Bill 198?

Accepted Answer

Only public companies are required to comply with Bill 198. Private companies, individuals, and charities are not subject to the regulations outlined in the act.

Question 9

Rose walked into her office and found a large bouquet of flowers on her desk. Before she had time to read the card, her assistant said it was from Mr. Tanner at Zero Corporation. Mr. Tanner was trying to negotiate a sales deal with the company. Although Rose did not know how to respond to Mr. Tanner's gift, she thought an answer might be found in which of the following company resources?

Accepted Answer

The code of ethics could provide guidance on how to handle gifts from potential business partners in a professional and ethical manner.

Question 10

In some situations, managers must make a decision where every alternative impacts various stakeholders in unpleasant ways. What is this type of situation called?

Accepted Answer

An ethical dilemma is a situation where there is a conflict between moral principles or values, and every alternative available has negative consequences for different stakeholders. In such situations, managers have to make difficult choices that weigh the pros and cons of each option and choose the one that does the least harm to the stakeholders involved. Whistle-blowing, conflict of interest, and employee mistreatment are all separate issues that can lead to ethical dilemmas, but they are not the same as an ethical dilemma itself.

Question 11

Which of the following scenarios provides the best example of whistle-blowing?

Accepted Answer

Whistle-blowing refers to an employee reporting illegal or unethical behavior of the organization to an external authority. In this case, Marie is reporting unsafe practices to Health Canada, which is an external authority, making it the best example of whistle-blowing. Option A is not an example of whistle-blowing since it is a routine reporting of sales performance to higher management. Option B is not an example of whistle-blowing since Anup is informing a personal acquaintance and not an external authority. Option C is not an example of whistle-blowing since it is not related to any illegal or unethical behavior of the organization.

Question 12

As a management trainee for a rental car company, you are unsure what your company policy is regarding giving gifts at the holidays to corporate customers and dealerships that your branch does business with. Who among the following could answer questions about this ethical issue?

Accepted Answer

An ethics officer is best equipped to answer questions about ethical issues and company policies. They are responsible for ensuring that the company adheres to ethical standards, including in the area of gift-giving. A trade association representative may have knowledge about industry practices, but may not know specific company policies. A whistle-blower is someone who reports unethical behavior, and another management trainee may not have enough experience or knowledge to answer this question accurately.

Question 13

What is it called when one informs the press or government officials about unethical practices within one's organization?

Accepted Answer

Whistle-blowing refers to the act of informing the press or government officials about unethical practices within one's organization. This is a courageous step taken by individuals to expose wrongdoing and ensure transparency and accountability. Unethical behavior and company violations may be the reasons for whistle-blowing, but they are not the terms for the act itself.

Question 14

Tom stormed into the office, exclaiming, "That's the last straw! I've experienced unethical behaviour at this company one time too many. I'll be calling the press immediately." It appears that Tom is about to engage in which of the following?

Accepted Answer

Tom is about to engage in whistle-blowing by exposing unethical behavior within the company to the press.

Question 15

What are the three sets of factors that influence the standards of behaviour in an organization?

Accepted Answer

The three sets of factors that influence the standards of behaviour in an organization are opportunity, individual factors, and social factors. Opportunity refers to the chance or temptation to engage in unethical or illegal behavior, such as the availability of confidential information or the ability to commit fraud. Individual factors include personal values, attitudes, and beliefs that can affect behavior, as well as psychological factors like stress and fatigue. Social factors, such as norms, peer pressure, and socialization, can also influence behavior within an organization. Therefore, choice C is the best answer.

Question 16

Designating an ethics officer is an example of the role of which of the following in encouraging ethics?

Accepted Answer

Designating an ethics officer is an example of the role of a company in encouraging ethics. A company can take steps to promote ethical behavior within its organization by establishing codes of conduct, providing ethics training, and creating positions such as ethics officers to oversee ethical practices. The government, trade associations, and individuals may also play a role in promoting ethics, but in this scenario, a company is taking the initiative to promote ethical behavior internally.

Question 17

Arnold, a 90-year-old, was arrested after violating a city bylaw that restricted charities from feeding the homeless in public. Despite his arrest, Arnold returned a few days after his first arrest to feed the homeless hot meals. Which of the following is the factor affecting his ethical behaviour?

Accepted Answer

The factor affecting Arnold's ethical behavior is individual, as he personally feels a moral obligation to help feed the homeless, despite the risk of arrest.

Question 18

At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behaviour is Victoria's Secret seeking to control?

Accepted Answer

Victoria's Secret is seeking to control the opportunity factor affecting ethical behavior, by requiring managerial approval for employee purchases using an employee discount. This control measure prevents employees from taking advantage of the discount opportunity for personal gain or misconduct.

Question 19

Alex is a plant manager for a chemical plant in Calgary. Recently, there was a leak in a pipe from the tanks to the outdoor production area. As a result, 20,000 litres of toxic chemicals leaked into a local river. If Alex were to identify the best option from his point of view, he would likely do which of the following?

Accepted Answer

Alex should consider the option and test it against some established criteria to determine the best course of action. This will help him make an informed decision based on objective factors rather than relying solely on personal biases or opinions. By using established criteria, he can ensure that he is considering all relevant factors and making the most appropriate decision for the situation at hand. This approach will help him address the problem in a systematic and effective manner, minimizing the impact of the chemical leak on the environment and community.

Question 20

At Ledbetter Industries employees are allowed one-hour lunches, but it has become common that most employees stroll back in 15 minutes late every day. Which of the following is the factor affecting the ethical behaviour of Ledbetter's employees?

Accepted Answer

The social factor is affecting the ethical behavior of Ledbetter's employees. This is because employees are unconsciously following the behavior of their peers in coming back 15 minutes late, creating a social norm within the workplace. It is not an individual issue, as multiple employees are engaging in the behavior. It is not an opportunity issue, as the opportunity to be late has already been provided with the one-hour lunch break. And it is not a code of ethics issue, as this behavior is not directly addressed in the company's code of ethics.

Quiz 2: Being Ethical and Socially Responsible