1. The values expressed in a corporate code of ethics should be cascaded throughout the policies and procedures in each functional department and be reflected in each of the organization’s operating systems.
True_____False_____
2. Since all stakeholders have the same interests and expectations for the organization, it is not important to consider each stakeholder when developing and ethics program.
True_____False_____
3. An organization that developed an ethics program would expect that _____.
a) The public would respect and trust the organization’s goals.
b) The stakeholders would be loyal to the organization.
c) The executive leadership would be the model for the expected behaviors.
d) The code of ethics would distinguish the organization from other companies.
e) Employees would feel more trust because they are made aware of the rules and intentions.
f) Only c & e.
g) Only b, c & e.
h) Answers a, b, c, d, & e.
4. An organization develops its own cultural environment based on the mission, goals and norms of the business. In order to indicate their operating standards to employees and to the public, organization’s often implement a Code of Ethics.
True____False____
5. The Sarbanes-Oxley Act, (SOX), was instituted by the Securities Exchange Commission, (SEC), to hold public-traded companies to a strict annual report on accounting practices. It does not hold executives responsible for conducting business ethically.
True_____False_____
6. Culture change initiatives started from the bottom of the organization are less likely to be effective. The two vital ingredients that leadership must personally provide to guarantee successful change in an organization are?
Fill in a brief answer.)
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
7. Procedures and operating policies that align with the organization’s code of ethics should be the ruling documents for problem solving and decision-making for the organization.
True_____False_____
8. Since most Federal Laws concerning treatment of employees (examples: sexual harassment and hiring discrimination) apply to every business, each organization’s code of ethics can be developed using only the same values and expected behaviors as other organizations.
True_____False_____
9. Implementation for an ethic program: _____
a) Is a way of communicating the expected behaviors.
b) Needs to give a clear and consistent message to every employee.
c) Should be done at time of hire by introducing the code of ethics.
d) Should be conducted annually throughout the company.
e) Can be done using many different venues including formal training classes.
f) Can use computerized programs in order to keep everyone at the job site.
g) All of the above.
h) Only b, e, f.
i) Only c & e
10. Changing an organization’s cultural direction can be quickly accomplished by simply developing a code of ethics, which will solve all the organization’s ethics problems.
True_____False_____
11. Refresh ethics training for a public-traded organization is not necessary if the code of ethics is read and signed at the time of hiring.
True_____False_____
12. In developing an effective ethics program, a System of Inquiry can be utilized to identify the components of these three critical elements:
Element #1 is: _____________________________________________
Element #2 is: _____________________________________________
Element #3 is: _____________________________________________
13. What is the purpose of a System of Inquiry’s Element #1?
(Briefly explain.)
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
14. What is the purpose of a System of Inquiry’s Element #2?
(Briefly explain.)
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
15. What is the purpose of a System of Inquiry’s Element #3?
(Briefly explain.)
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
16. A strong ethical culture can be sustained when each employee at every level takes ____________ and ____________for their own actions.
17. Although some top executives like Bill Gates, formerly from Microsoft, are well known for their dynamic leadership and guidance, the Board of Directors of an organization, regulatory agencies and consumer groups can also influence how an organization is managed.
True____False_____
18. An organization’s leadership is not responsible for the behavior of its employees.
True_____False_____
19. Stock prices influence executive ethical decision-making.
True_____False_____
20. Using navigation terms as a metaphor, complete the three sentences with one of the following business tools.
a) Code of Ethics
b) System of Inquiry
c) Mission or Vision Statement
1) A _________________________establishes the goals (destination) of the organization.
2) A _________________________is a compass that gives directions toward achieving intended results.
3) A _________________________is the map because it details the overall ethics program and desired business environment.
21. A one-day dedicated training session that emphasizes doing the right thing will address and clarify all ethical work problems.
True_____False_____
22. An organization’s reporting system for ethical violations is usually the chain of authority. However, some companies advocate Human Resources’ early involvement so that they can monitor the process and help resolve the problems before they can escalate. Briefly explain your organization’s procedure for reporting ethical violations.
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
23. A System of Inquiry can be used for: ______
a) To define the professional values of an organization.
b) To detail the reporting system for ethical violations.
c) To identify the final authority for arbitration of discipline.
d) To develop the methods for maintaining the ethics program.
e) To develop the policies and procedures for the organization’s operation.
f) To outline the framework for an ethics program.
g) Only b, c, & e
h) Only a & d
i) Answers a, b, c, d, e & f
24. Typical employee reaction to change can take the form of procrastination. Often, discontent can be evaluated by the conflicts between employees and management and the slowdown of work processes. At other times, employees will wait to see how their boss reacts to any new rules.
True_____False_____
25. Identify three stimulants or business events that would necessitate revision of the organization’s professional values—their Code of Ethics.
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
26. Which one of the following systems and procedures does NOT belong under an ethics program? ______________________________________
Performance Appraisals
Rewards and Promotion Systems
Selection Practices
Orientation and Training Programs
Rules and Policies
Decision-making processes
The Grapevine
Performance Management Systems
Progressive Disciplinary Process
Employee Engagement
Signage
Mentors
Executive Leadership
Mission and/or Vision Statements
Ethics Officer
Whistle-Blowers
Conflict of Interest Policies
Employee surveys
Union contracts
Business Acquisitions
27. Periodic employee surveys cannot determine potential ethical problems within an organization’s culture.
True_____False_____
28. How often should a public-traded organization’s code of ethics be reviewed for possible changes? (Be specific.)
_________________________________________________________________________________________________________________________________________________________________________________
29. What three significant parts are required to build a framework for an organization’s ethics program?
_________________________________________________________________________________________________________________________________________________________________________________
30. Employees’ lack of trust in the organization’s leadership impacts shareholders’ returns.
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