Question 1

Which of the following values is among the six most commonly found in professional codes of ethics?

Accepted Answer

Citizenship is often included in professional codes of ethics as it relates to the responsibility of individuals to contribute positively to society and the community.

Question 2

Which of the following statements about formal development of an ethics program is accurate?

Accepted Answer

Having a specific individual in charge of managing ethics in a company, regardless of its size, ensures that there is a clear point of responsibility for fostering an ethical culture and addressing ethical issues as they arise. This is particularly manageable and beneficial in a company with 50 employees, where the scale is large enough to warrant dedicated oversight but not so large as to be unmanageable for a single individual.

Question 3

What effect should a code of ethics have on dialogue within an organization?

Accepted Answer

A code of ethics should help legitimize dialogue about what constitutes ethical behavior, encouraging open discussions and understanding within the organization.

Question 4

How does the text define "oath"?

Accepted Answer

An "oath" is typically defined as a public promise, often made in a formal setting, to uphold certain principles or duties.

Question 5

Research has shown a positive correlation between organizations with a code of ethics and what?

Accepted Answer

Organizations with a code of ethics often promote greater tolerance for diversity, as ethical guidelines typically emphasize respect and inclusion.

Question 6

Which of the following is TRUE of a typical code of ethics?

Accepted Answer

A typical code of ethics is designed to help guide decisions in ethical dilemmas, providing a framework for individuals and organizations to follow when faced with difficult choices. It is not necessarily long and complicated, unreasonable for the average person to abide by, nor exclusively designed by lawyers, although legal advice might be sought in its creation.

Question 7

Shudra is a new employee who is being pressured by her manager to do something unethical that directly violates the company's code of ethics. On what other moral support level can she rely?

Accepted Answer

DShudra can rely on her industry's code of ethics, which provides a broader ethical framework beyond her company's policies. Additionally, escalating the issue to her manager's supervisor can also be a viable option, as the supervisor may take action to address the unethical request in line with the company's code of ethics.

Question 8

You are a member of upper management who is leading an orientation for new hires, and during your first meeting you intend to focus on business ethics. In what way should you start your meeting with the new employees?

Accepted Answer

Addressing specific ethical issues related to the company and industry is an effective way to start a meeting on business ethics, as it directly relates the discussion to the employees' roles and responsibilities within the context they will be operating.

Question 9

How has the adoption of codes of ethics by businesses changed over time?

Accepted Answer

Since the 1960s, there has been a significant increase in the number of businesses adopting codes of ethics. This trend reflects a growing recognition of the importance of ethical behavior in meeting public and industry expectations, as well as in fostering trust and sustainability in business practices.

Question 10

Which of the following should be avoided when writing a code of ethics?

Accepted Answer

Descriptions of how not to act should be avoided as they can be negative and prescriptive, whereas a code of ethics should focus on positive guidance and affirmative statements.

Question 11

For an employee with strong moral convictions, a code of ethics would ______.

Accepted Answer

A code of ethics often reflects an individual's moral convictions and guides their behavior in both their professional and personal lives, not just at work.

Question 12

What potential formal sanction primarily prevents a lawyer or accountant from violating professional (not company) codes of ethics?

Accepted Answer

Loss of license is a formal sanction directly related to violating professional codes of ethics for lawyers and accountants, as it is a consequence enforced by professional licensing boards.

Question 13

As suggested by the text, when should a business owner or company management first begin drafting a code of ethics?

Accepted Answer

The answer of As suggested by the text, when should...

Question 14

In which of the following ways does a code of conduct differ from a code of ethics?

Accepted Answer

A code of conduct deals with specific situations and provides guidelines for behavior, whereas a code of ethics is broader and outlines general principles and values.

Question 15

A firm wants to be publicly listed on the NASDAQ. What is required for this from an ethics standpoint?

Accepted Answer

The answer of A firm wants to be publicly listed...

Question 16

Which of the following statements about the MBA oath developed by Harvard Business School students is accurate?

Accepted Answer

The MBA oath includes a commitment to uphold laws and contracts, emphasizing ethical behavior and integrity in business practices.

Question 17

Which of the following does a code of conduct likely contain that a code of ethics would not?

Accepted Answer

A code of conduct often includes specific guidelines and rules, such as the description of specific laws and their implications for employees, which is more detailed and prescriptive than the general principles found in a code of ethics.

Question 18

Research has shown that what three value categories show up in most codes of ethics?

Accepted Answer

Deontological ethics focuses on rules, utilitarian ethics on outcomes, and ethics of care emphasizes interpersonal relationships. These three broad categories often appear in codes of ethics across various fields, reflecting a comprehensive approach to ethical considerations.

Question 19

According to the 1991 Federal Sentencing Guidelines, what happens to a company that has implemented an effective code of ethics compared to one that does not?

Accepted Answer

The 1991 Federal Sentencing Guidelines provide for the possibility of reduced penalties for companies that have implemented effective ethics and compliance programs, which can include formal financial incentives as a form of recognition for their efforts to prevent unethical or illegal conduct.

Question 20

What effect did the Sarbanes-Oxley Act have on codes of ethics and conduct in publicly traded companies?

Accepted Answer

The answer of What effect did the Sarbanes-Oxley Act have...

Quiz 4: Codes of Ethics and Codes of Conduct