Title: Business Ethics and Corporate Social Responsibility
Course: Question Banks

Q: ________ are a set of standards that govern the conduct of a person, especially a member of a profession. A good example is the medical profession’s oath to "do no harm."
- Legal behaviors
- Mission statements
- Vision statements
- Ethics
A: Ethics

Q: Google’s statement of “don’t do evil” is an example of ________.
- legal behaviors
- social law
- a business procedure
- ethical policy
A: ethical policy

Q: While ________ beliefs are held by individuals, they can also be reflected in the values, practices and policies of decision makers in organizations.
- social
- legal
- visionary
- ethical
A: ethical

Q: ________ follow(s) the dictates of laws, which are written down and interpreted by the courts.
- Natural law
- Ethics
- Social behavior
- Legal behavior
A: Legal behavior

Q: As society evolves, what constitutes legal behavior ________.
- remains the same
- does not matter anymore
- is only followed by top leaders
- changes
A: changes

Q: Determining the legality of a course of action will include a review of:
- The company’s mission statement
- The corporate ethics code
- Individual employee behaviors
- Statutes, regulations, and codes
A: Statutes, regulations, and codes

Q: Joseph works at a local hospital in the billing department. He is processing a bill for a patient who was recently released after being hospitalized for anxiety associated with a chronic mood disorder. Joseph recognizes the name and realizes the patient is one of his son’s school teachers. Joseph can’t violate patient confidentiality by telling the school of the teacher’s illness. Which of the following considerations describes why Joseph can’t discuss what he has seen as part of his job at the hospital with his son’s school?
- ethical
- social codes
- moral codes
- legal
A: legal

Q: Kathy, in accounts receivable, receives a cash overpayment from a loyal customer. Her boss never reviews the details of accounts receivable transactions, so Kathy could easily pocket the overpayment amount. Kathy is faced with a(n) ________ dilemma.
- CPA dilemma.
- Ethical dilemma.
- Moral dilemma.
- legal dilemma.
A: legal dilemma.

Q: Fred is a realtor selling Katie’s home. Katie filled out the “Property Condition Disclosure” paperwork, and Fred is obligated to disclose present and future disclosures to potential buyers. The property is now under contract to sell to new owners. In a casual conversation however, Katie tells Fred three years ago there was a termite problem but it was eradicated. After checking the paperwork, Fred discovers no indication of this on the disclosure paperwork. Fred is now faced with a(n) ________ dilemma.
- social
- ethical
- moral
- legal
A: legal

Q: Mega Mining operates mining facilities around the world and as a result controls a large portion of the market. When they opened a new mineral extraction facility on the tiny island nation of Candyland they realized they would immediately become the largest private contributor to the nation's GDP thus giving them a great deal of power. Much to the delight of investors, Candyland’s government has enacted almost no regulations to protect the safety of workers or preserve the environment. The CEO of Mega Mining made several decisions regarding their operations in Candyland. Which of the following are examples of the company’s ethical behavior?
- Mega Mining declares that they will pay a dividend to all investors and shareholders within 6 months of opening the facility in Candyland.
- Mega Mining discovers that their parking lot will cover a native burial ground and decides to continue building the parking lot.
- Mega Mining decides to release toxic waste into a freshwater stream because it is much cheaper than disposing of it safely.
- Mega Mining installs scrubbers on the smokestacks of their smelting facility to protect the environment of Candyland.
A: Mega Mining installs scrubbers on the smokestacks of their smelting facility to protect the environment of Candyland.

Q: ________ regulate(s) actions and behaviors that lie beyond control from government and applies to all aspects of business conduct relevant to an entire organization and individual actions.
- Cultural bias
- An annual report
- Organizational structures
- Business ethics
A: Business ethics

Q: The Golden West pool table manufacturer marketing manager just saw that the regional online newspaper advertisement displayed incorrect information and immediately contacted the online newspaper. The regional online newspaper posted a correction with an apology for initially posting it incorrectly. This is an example of:
- legal behavior
- social responsibility
- moral behavior
- ethical behavior
A: ethical behavior

Q: The Golden Spigot hotel and casino was recently rocked by scandal with unethical gaming practices and lack of certain hotel safety disclosures. Upper management has been fired and you are brought in as the new CEO to change things around. You have called everyone to a company meeting and are starting off by defining how you will be implementing strict business ethics. Which of the following begins to change the business ethics environment best for the company?
- The Golden Spigot will now focus on specific areas within the business, specifically the service department and accounting departments to tighten up policies and reporting methods.
- The Golden Spigot will have company behavior regulated by governmental agents to enforce laws and implement controls.
- The Golden Spigot will hire a single ethics officer to immediately fire any employee who behaves unethically.
- The Golden Spigot will publish standards governing the behavior and actions of employees and actions of the business, and implement mandatory policy training for all employees.
A: The Golden Spigot will publish standards governing the behavior and actions of employees and actions of the business, and implement mandatory policy training for all employees.

Q: Althea works for the Sunnyvale Tax Department in the collections department. She knows that the owner of the vacant lot next door to her home owes almost 5 years back taxes and the property will soon be auctioned off at a bargain price. If the lot is sold and someone builds on it, she will no longer have a view of the lake. On a Monday morning, her supervisor asks her to contact the local newspaper and place the notice of sale in the weekend edition. Althea knows that once the notice goes into the paper, dozens of investors will show up to bid on the lot. If she “forgets” to put the notice in the paper, no one outside of the few people in the tax office will know the sale is occurring and she and her husband could purchase the lot for ¼ of its actual market value. In this situation, Althea is facing a decision that involves:
- a kickback
- a bribe
- insider trading
- an issue of honesty and integrity
A: an issue of honesty and integrity

Q: Often the ethical tone of a business is set by:
- policies and procedures.
- personal interactions.
- individual employees
- organizational leadership.
A: organizational leadership.

Q: According to the National Business Ethics survey, in general, if a company wants to boost or ensure ethical behavior in their organization, the accountability and enforcement should begin with:
- line employees
- middle management
- business consultants
- senior management
A: senior management

Q: A ________ tends to support a company's obligation to its’ stakeholders, rather than regulating a profession.
- code of practice
- standard of conduct
- standard of culture
- code of ethics
A: code of ethics

Q: Expulsion from membership in a professional organization could occur due to failure to comply with its’ ________.
- Code of ethics
- Role of standards
- Role of culture
- Code of practice
A: Code of practice

Q: Rick is a middle manager at a technology company. This week he is hosting a group of businesspeople who are considering a strategic partnership with the company. As the week progresses, some of the visitors ask Rick for access to sensitive information about the company’s newest technology. He knows that the partnership is of great importance to the company and if he can solidify the deal, it could lead to a VP position in the company for himself. He is now faced with a(n) ________ issue.
- civil
- policy
- legal
- ethical
A: ethical

Q: When executives set aggressive goals, it becomes more important to:
- have human resources deal with individual employees about ethics questions.
- rely on technology to catch ethics violations.
- Encourage increase competition among employees.
- openly address issues with employees.
A: openly address issues with employees.

Q: In the National Business Ethics Survey, ________ of the employees identified pressure to meet unrealistic objectives as the most likely cause for them to compromise their ethical standards.
- a few
- none
- all
- the majority
A: the majority

Q: When executives bend the rules or turn a blind eye to bad behavior, the policies ________ value and executives ________ the respect of employees.
- lose, gain
- gain, lose
- gain, gain
- lose, lose
A: lose, lose

Q: The Golden Chunk hotel and casino was recently rocked by scandal with unethical gaming practices and lack of certain hotel safety disclosures. After an investigation, it was discovered that internal business ethical behavior standards were often brushed aside for profit. What would you guess was most likely to be the main reason for these ethics breaches at the Golden Chunk?
- Its corporate code of ethics was not strict enough and was not included in employee trainings on a regular basis.
- Its corporate systems had few feedback loops to identify and report ethical inconsistencies and problems.
- Its management did not reprimand employees who acted unethically.
- Its executives and upper management were responsible for misconduct and rule breaking setting the example for company employees.
A: Its executives and upper management were responsible for misconduct and rule breaking setting the example for company employees.

Q: To assist you in distinguishing the difference between a gift and a bribe you should:
- accept gifts that are offered in the course of your business dealings without questioning the intent of the gift giver.
- assume the giver does not have expectations of you.
- assume the majority of givers intend to bride you.
- refer to company policy regarding the acceptance of gifts.
A: refer to company policy regarding the acceptance of gifts.

Q: A framework that helps establish guidelines for keeping business gifting above board includes consideration of:
- Rank of the recipient
- Frequency of the event
- The cost of the gift
- Context, content, culture
A: Context, content, culture

Q: Bribery, conflict of interest, honesty and integrity, whistle-blowing are:
- Legalities
- Cultural behaviors
- Defined by government entities
- Common business ethical challenges
A: Common business ethical challenges

Q: Kickback is a form of bribery distinguished on the basis of:
- The recipient receiving cash.
- The giver working for the government.
- The giver is a family member of the receiver.
- A negotiated agreement among both the giver and receiver.
A: A negotiated agreement among both the giver and receiver.

Q: A healthcare service company delivering in-home treatment to the elderly receives referrals from a Medicare authorized provider for a fee. This activity becomes an illegal kickback scheme when:
- both parties agree to the arrangement.
- medicare pays for the service.
- patients are aware that the healthcare service company receives a fee when they are referred.
- the provider makes unnecessary treatment referrals and gets paid for them by Medicare
A: the provider makes unnecessary treatment referrals and gets paid for them by Medicare

Q: Golf outings, meals, entertainment, and vehicles have been used in lieu of cash to pay purchasing agents in exchange for business deals. This type of payment is known as:
- nepotism
- commission
- self-dealing
- Bribery
A: Bribery

Q: You work for a company that manages apartment buildings. The company did not renew their contract with a local landscaping company and are now looking for a new landscaping services provider for the apartment complex. You are asked by management to locate a new landscaping company. Your son runs his own lawn care business. If he gets the contract for the apartment complex you will no longer need to make his car payments and he might even start paying you rent. This situation brings up a potential ________ for you.
- bribery scenario
- whistle-blowing situation
- legal dilemma
- conflict of interest
A: conflict of interest

Q: As a business owner, you also serve on the City Council of the location of your business. When city contracts are awarded, your business is in the running to win the bid. Concerned citizens claim you are unethical citing:
- Nepotism
- Bribery
- Insider trading
- Conflict of Interest and Self Dealing.
A: Conflict of Interest and Self Dealing.

Q: You are the Chief Purchasing Officer for an established business. Your daughter (a recent college grad with a business degree) applies for a job with your company. If hired, your family relationship could constitute concerns of:
- Bribery
- Self dealing
- Insider trading
- Nepotism
A: Nepotism

Q: Whistleblower laws in the United States are designed to protect:
- Employers
- The general public
- Government agencies
- Employees
A: Employees

Q: A company wishing to reinforce its commitment to ethical behavior could institute:
- A suggestion box
- Monthly paid lunches
- A performance-based pay system
- A Whistleblower program
A: A Whistleblower program

Q: An example of an effective whistleblower case in the pharmaceutical industry is:
- The legalization of marijuana.
- Edward Snowden and the NSA.
- Revealing government wiretapping.
- Exposing the use of contaminated ingredients in the drug manufacturing.
A: Exposing the use of contaminated ingredients in the drug manufacturing.

Q: As a real estate agent, you learn that the home you are trying to sell resides in a low-lying frequently flooded area. The seller has not disclosed the information, and the buyer has only seen the property on “dry” days. Choose your best ethical choice:
- You call up the home inspector behind the seller’s back and have him disclose the information to the potential buyer.
- You let the sales process proceed because the seller needs to sell the home in order to purchase their new home, and you stand to gain the commission on both sales.
- You give the new home owners contact information to a flood insurance agent who will contact the new homeowner after the sale is finalized.
- You disclose the information to the potential buyer and inform the seller of your action. You are risking the sale of the property.
A: You disclose the information to the potential buyer and inform the seller of your action. You are risking the sale of the property.

Q: The CEO of Wells Fargo resigned in October 2016 due to the scandal surrounding the bank’s:
- Aggressive sales tactics used by bank employees.
- Interest rates charged to customers on loans.
- Overly competitive culture.
- Practice of forcing employees to open new customer accounts without the customer’s permission.
A: Practice of forcing employees to open new customer accounts without the customer’s permission.

Q: In 2015, the German automaker Volkswagen revealed that it had installed software on millions of cars in order to trick the Environmental Protection Agency’s emissions testers into thinking that the cars were more environmentally friendly than they were. This action was:
- Illegal according to the International Monetary Fund laws
- Against the North American Treaty Organization rules
- Illegal according to the Interstate Commerce Act
- Non-compliant with environmental regulations
A: Non-compliant with environmental regulations

Q: Companies today are held to higher standards than ever before. Consumer and other groups consider not only the quality and price of a company's products but also its ________.
- marketing accuracy
- production process
- organizational structure
- commitment to environmental and social concerns
A: commitment to environmental and social concerns

Q: Corporate Social Responsibility strategies encourage:
- an increase in the profit margin of a corporation.
- actions which capitalize on the latest social trends to boost sales.
- a competitive pay structure.
- a positive impact on the environment and stakeholders.
A: a positive impact on the environment and stakeholders.

Q: The purpose of aligning corporate ethics and social responsibility is to:
- make people responsible for their actions and foster open communication
- teach others how to fit into society and interpret social cues
- encourage employees to be more responsible citizens
- build trust and create community between employees and stakeholders across all levels
A: build trust and create community between employees and stakeholders across all levels

Q: Consumers wishing to encourage corporate social and environmental responsibility can:
- Shop at WalMart.
- Encourage their family members to shop local.
- Only purchase products from large corporations.
- Vote with their wallet
A: Vote with their wallet

Q: Stock prices may be impacted by a company’s social responsibility performance, when:
- Their P&L statement changes.
- Foreign investment increases.
- Investors disagree with a company’s social responsibility efforts.
- Poor performance drives stock prices down.
A: Poor performance drives stock prices down.

Q: Companies who provide services and/or component products to another company are necessarily included in corporate social responsibility programs. These outside companies are known as:
- Railroads
- Investment advisors
- Distributors
- The supply chain
A: The supply chain

Q: Examples of approaches to Corporate Social Responsibility include:
- Product, Price, Promotion, Placement
- Facebook, Twitter, LinkedIn
- Double-book accounting, low-risk investing, acquisitions of startups
- Corporate Philanthropy, Cause-related Marketing, Sustainability
A: Corporate Philanthropy, Cause-related Marketing, Sustainability

Q: Companies that use the pink ribbon symbol for Breast Cancer awareness on their product packaging are practicing:
- A direct reduction in incidences of breast cancer.
- The Feminist movement
- Sustainability efforts
- Cause-related marketing
A: Cause-related marketing

Q: Google.org made a $2.4 million grant to GiveDirectly, a nonprofit that provides direct cash aid to the poor. This example of Corporate Social Responsibility is known as:
- Sustainability
- Social Initiatives
- Cause-related marketing
- Corporate Philanthropy
A: Corporate Philanthropy

Q: Facts supporting the importance and nature of corporate social responsibility include:
- Schools and corporations are not adopting CSR strategies.
- Boasting about false claims.
- Most executives believe CSR does not yield any business benefits.
- Most large corporations spend money on lobbying.
A: Most large corporations spend money on lobbying.

Q: In spite of the controversial nature of Corporate Social Responsibility corporations are adopting programs because:
- Laws are forcing them to develop programs.
- They disagree with government on many of its policies.
- The media is pressuring them to implement programs.
- Profit related benefits, recruiting and keeping the best employees, risk management.
A: Profit related benefits, recruiting and keeping the best employees, risk management.

Q: Overstating the impact of environmental actions to promote “eco-friendly” products is known as:
- Bribery
- Nepotism
- Lobbying
- Greenwashing
A: Greenwashing