Chapter 08: Organizational Factors: The Role of Ethical Culture and Relationships
1. An organization that delegates decision-making authority as far down the chain of command as possible and has
relatively few formal rules is referred to as _______.
a. centralized
b. decentralized
c. unethical
d. tall
e. ethical
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-3 Organizational Structure
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.03 - Assess organizational structure and its
relationship to business ethics
NATIONAL STANDA
RDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:01 AM
DATE MODIFIED: 8/17/2021 10:05 AM
2. Which of the following includes a requirement that management assess the effectiveness of an organization's internal
controls and commission audits of these controls by an external auditor in conjunction with the audit of its financial
statements?
a. An ethics audit
b. The Dodd-Frank Act
c. Sarbanes-Oxley 404
d. Title VII of the Civil Rights Act
e. The Whistle-blower Protection Act
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 8-1 Defining Corporate Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.08.01 - Understand the concept of a corporate
culture
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:06 AM
DATE MODIFIED: 8/17/2021 10:08 AM
3. When considering centralized and decentralized structures, which one tends to be more ethical, and why?
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a. Decentralized because of the clear rules that dictate appropriate behavior in business
b. Centralized because it is easier to uproot unethical activities
c. Centralized because of the strict formalization and implementation of ethics policies
and procedures
d. Decentralized because they give employees more decision-making authority
e. Both types of organizational structure are equally ethical
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-3 Organizational Structure
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.03 - Assess organizational structure and its
relationship to business ethics
NATIONAL STANDA
RDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:08 AM
DATE MODIFIED: 8/17/2021 10:10 AM
4. Which of the following is an advantage of a decentralized organization?
a. The focus is on formal rules, policies, and procedures backed up with elaborate control
systems
b. There is a high level of bureaucracy
c. Each worker knows his or her job and what is specifically expected as well as how to
carry out designated tasks
d. It is adaptable and can quickly respond to external change
e. There is minimal upward communication
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-3 Organizational Structure
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.03 - Assess organizational structure and its
relationship to business ethics
NATIONAL STANDA
RDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:10 AM
DATE MODIFIED: 8/17/2021 10:11 AM
5. Because every organization has employees that will try to take advantage if there is an opportunity for misconduct,
when developing a values-based ethical culture it must include a(n) _______ element.
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a. vision statement
b. qui tam relator
c. ethical
d. compliance
e. punitive
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:16 AM
DATE MODIFIED: 8/17/2021 10:17 AM
6. An apathetic organizational culture exhibits which of the following?
a. High concern for people but minimal concern for performance
b. Little concern for people but a high concern for performance
c. Minimal concern for people and performance
d. High concern for people and performance
e. No concern for maintaining a cohesive organizational culture
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:17 AM
DATE MODIFIED: 8/17/2021 10:19 AM
7. An exacting organizational culture is interested in which of the following?
a. Performance, but with little concern for
employees
b. Investors' impressions of profitability
c. Maintaining a strong corporate culture
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d. Employees and performance
e. Employees' impressions
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:19 AM
DATE MODIFIED: 8/17/2021 10:22 AM
8. Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning
process known as _______.
a. compliance
b. misconduct
c. opportunity
d. differential equations
e. differential association
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:22 AM
DATE MODIFIED: 8/17/2021 10:24 AM
9. Which of the following statements about corporate culture are ? (Select four)true
a. Corporate culture refers to the patterns and rules that govern the behavior of an
organization and its employees, particularly the shared values, beliefs, and customs.
b.The values and ethical beliefs that actually guide the firm's employees do not tend to
be the same ones that management states as defining the firm's culture.
c. Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and
rituals that take place in an organization.
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d.The culture of an organization may be explicitly stated or unspoken.
e. Failure to monitor or manage an organization's culture may foster unethical behavior.
ANSWER: a, c, d, e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 8-1 Defining Corporate Culture
QUESTION TYPE: Multiple Response
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:24 AM
DATE MODIFIED: 8/17/2021 10:28 AM
10. No formal dress codes, working late, and participation in extracurricular activities are representative of which of the
following?
a. A complacent workplace
b. Codes of ethics
c. A firm's organizational chart
d. Formal expressions of an organization's culture
e. Informal expressions of an organization's culture
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:28 AM
DATE MODIFIED: 8/17/2021 10:30 AM
11. A cultural audit may be used to assess which of the following?
a. How cultured a firm's employees
are
b. Unethical employees
c. Group dimensions
d. An organization's values
e. Organizational structure
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ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:54 AM
DATE MODIFIED: 8/17/2021 10:55 AM
12. Bringing together the functional expertise of employees from several different areas of the organization on a single
project defines which of the following?
a. Quality circles
b. Informal groups
c. Teams
d. Work groups
e. Committees
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-4 Group Dimensions of Corporate Structure and Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIV
ES:
BE.FERR.13.ChO.08.04 - Explore how the work group influences
ethical decisions
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 10:55 AM
DATE MODIFIED: 8/17/2021 10:57 AM
13. Individuals, often from the same department, who have a common interest but not an explicit organizational structure
are known as _______.
a. quality circles
b. informal
groups
c. teams
d. work groups
e. committees
ANSWER: b
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POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-4 Group Dimensions of Corporate Structure and Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIV
ES:
BE.FERR.13.ChO.08.04 - Explore how the work group influences
ethical decisions
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 11:12 AM
DATE MODIFIED: 8/17/2021 11:13 AM
14. In order for whistle-blowing to be effective, which of the following must be ?true
a. The whistle-blower must have indisputable proof of guilt.
b. Employees must wish ill on the organization for which they work.
c. Lawmakers must make an effort to force employees to discuss details about the
misconduct.
d. The whistle-blower must have adequate knowledge of wrongdoing that could damage
society.
e. The misconduct must have occurred at a very large multinational corporation.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 11:13 AM
DATE MODIFIED: 8/17/2021 11:15 AM
15. Which of the following are statements about group norms? (Select four)true
a. Group norms define the limit on deviation from group expectations.
b.Group norms have the power to force a strong degree of conformity among group
members.
c. Management must carefully monitor the norms of all the various groups within the
organization, as well as the organization's corporate culture.
d.Sanctions may be necessary to bring in line a group whose norms deviate sharply from
the overall culture.
e. Group norms never conflict with the overall organization's culture.
ANSWER: a, b, c, d
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POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 8-4 Group Dimensions of Corporate Structure and Culture
QUESTION TYPE: Multiple Response
HAS VARIABLES: False
LEARNING OBJECTIV
ES:
BE.FERR.13.ChO.08.04 - Explore how the work group influences
ethical decisions
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 12:12 PM
DATE MODIFIED: 8/17/2021 12:17 PM
16. When deciding whether or not to conduct a cultural audit, it is important to consider that management's sense of the
organization's culture _______.
a. is more accurate than employees' perceptions because employees come and go
b. is always accurate, so a cultural audit may be unnecessary
c. is readily evident to employees
d. may not be in line with the values and ethical beliefs that actually guide a firm’s
employees
e. is always different from employees' perceptions
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 12:30 PM
DATE MODIFIED: 8/17/2021 12:32 PM
17. Which of the following cultures combines high levels of concern for both people and performance?
a. Apathetic culture
b. Caring culture
c. Integrative culture
d. Exacting culture
e. Cooperative
culture
ANSWER: c
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 8
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 12:32 PM
DATE MODIFIED: 8/17/2021 12:33 PM
18. A high concern for people but minimal concern for performance can describe which type of culture?best
a. Caring
b. Apathetic
c. Exacting
d. Shareholde
r
e. Employee
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 12:33 PM
DATE MODIFIED: 8/17/2021 12:34 PM
19. Ethical concerns in centralized structures can occur because of very little _______.
a. mobility
b. upward communication
c. scapegoating
d. downward
communication
e. communication rigidity
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-3 Organizational Structure
Copyright Cengage Learning. Powered by Cognero. Page 9
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.03 - Assess organizational structure and its
relationship to business ethics
NATIONAL STANDA
RDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 12:38 PM
DATE MODIFIED: 8/17/2021 12:39 PM
20. The establishment of an ethics committee within an organization _______.
a. has an informal organizational structure
b. is usually organized around general business topics
c. is a highly formalized approach for dealing with ethical
issues
d. occurs when formal work groups do not work
e. usually increases ethical tension
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-4 Group Dimensions of Corporate Structure and Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIV
ES:
BE.FERR.13.ChO.08.04 - Explore how the work group influences
ethical decisions
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 12:39 PM
DATE MODIFIED: 8/17/2021 12:41 PM
21. In bureaucratic organizations, what type of impact do new employees usually have on the basic operating rules and
procedures for getting things done?
a. Limited group
consensus
b. Significant impact
c. Consistent control
d. Strong feedback
e. Limited input
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-6 Can People Control Their Actions Within a Corporate Culture?
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 10
HAS VARIABLES: False
LEARNING OBJEC
TIVES:
BE.FERR.13.ChO.08.05 - Discuss the relationship between individual and
group ethical decision making
NATIONAL STAND
ARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 12:56 PM
DATE MODIFIED: 8/17/2021 12:58 PM
22. Which of the following are specifically used to subdivide duties within functional areas of a company?
a. Work groups
b. Individuals
c. Experts
d. Consultants
e. Committees
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-4 Group Dimensions of Corporate Structure and Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIV
ES:
BE.FERR.13.ChO.08.04 - Explore how the work group influences
ethical decisions
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 1:40 PM
DATE MODIFIED: 8/17/2021 1:41 PM
23. Cho, a well-liked executive, inspires her employees to follow a common vision, facilitates change, and creates a
strongly positive climate, all while stressing performance. In this scenario, what type of culture has Cho helped to create?
a. Authoritativ
e
b. Caring
c. Integrative
d. Apathetic
e. Affiliative
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
Copyright Cengage Learning. Powered by Cognero. Page 11
VES: business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 1:42 PM
DATE MODIFIED: 8/17/2021 1:43 PM
24. Over the years, scholars have developed more than 100 definitions of culture. According to the text, all these
definitions share which of the following common elements?
a. Culture is shared, relatively stable, and is formed over a long period of
time.
b. Culture is unique, stable, and is formed over a long period of time.
c. Culture is shared, fluctuating, and is formed over a long period of time.
d. Culture is shared, stable, and is formed over a short period of time.
e. Culture is man-made, stable, and is formed over a short period of time.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-1 Defining Corporate Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 1:43 PM
DATE MODIFIED: 8/17/2021 1:45 PM
25. Because all organizations have some type of culture, which of the following terms are often used interchangeably?
a. Cultural values; corporate culture
b. Cultural values; organizational culture
c. Organizational culture; corporate culture
d. Ethical culture; organizational culture
e. Ethical culture; corporate culture
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-1 Defining Corporate Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR United States - BUSPROG: Ethics - Ethics
Copyright Cengage Learning. Powered by Cognero. Page 12
DS:
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 1:45 PM
DATE MODIFIED: 8/17/2021 1:47 PM
26. If there is congruence between individual ethics and the organizational ethical culture, the potential for making ethical
choices in organizational decision making _______.
a. increases
b. decreases
c. stays the same
temporarily
d. is eliminated entirely
e. can never change
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-6 Can People Control Their Actions Within a Corporate Culture?
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJEC
TIVES:
BE.FERR.13.ChO.08.05 - Discuss the relationship between individual and
group ethical decision making
NATIONAL STAND
ARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 1:47 PM
DATE MODIFIED: 8/17/2021 1:48 PM
27. Which of the following defines a firm as well as how its customers and employees should be treated and is critical to a
values-based ethics culture approach?
a. Set of laws
b. Mission statement
c. Technology assessment
d. Ethical audit
e. Statement of work
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
Copyright Cengage Learning. Powered by Cognero. Page 13
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 1:48 PM
DATE MODIFIED: 8/17/2021 1:49 PM
28. The idea that people learn ethical or unethical behavior while interacting with others who are a part of their role-sets is
referred to as _______.
a. group norms
b. cognitive memory dissonance
c. cognitive association
d. differential association
e. casual interaction
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 1:58 PM
DATE MODIFIED: 8/17/2021 2:00 PM
29. Which of the following statements is regarding the Sarbanes-Oxley Act?true
a. It only applies to firms with over 50 employees.
b. It has institutionalized internal whistle-blowing.
c. It was eventually replaced with the Dodd-Frank Act.
d. It requires all organizations to make their financial information public.
e. It involves too many complicated steps for it to be feasible for most organizations.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:19 PM
Copyright Cengage Learning. Powered by Cognero. Page 14
DATE MODIFIED: 8/17/2021 2:22 PM
30. Which rule explains variation in employee conduct through generalizing on the percentage of employees in any given
organization who will seek to do right versus how many will be indifferent?
a. 10-30-40-20
b. 20-30-30-20
c. 40-10-10-40
d. 10-40-40-10
e. 80-20
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-5 Variation in Employee Conduct
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJEC
TIVES:
BE.FERR.13.ChO.08.05 - Discuss the relationship between individual and
group ethical decision making
NATIONAL STAND
ARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:22 PM
DATE MODIFIED: 8/17/2021 2:23 PM
31. Explain why centralized organizations tend to be more ethical than decentralized ones. Include an example of a
situation where a decentralized organization might be more ethical than a centralized one?
ANSWER: Because of the strict formalization and implementation of ethics policies and
procedures in centralized organizations, they tend to be more ethical in their
practices than decentralized organizations. Centralized organizations may also
exert more influence on their employees because they have a central core of
policies and codes of ethical conduct. However, it is also true that decentralized
organizations may avoid ethical dilemmas through the use of effective codes of
conduct and ethics.
Students’ examples of ethical decentralized companies will vary, but possible
responses include Nike, Southwest Airlines, and Zappos. Zappos in particular is
often perceived as being ethical. The company strives to be an ethical corporate
citizen through its emphasis on a fun working environment, employee
empowerment, and WOW customer service.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES
:
8-3 Organizational Structure
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN Basic
Copyright Cengage Learning. Powered by Cognero. Page 15
TRY MODE:
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on business
ethics
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/17/2021 2:25 PM
DATE MODIFI
ED:
8/17/2021 2:27 PM
32. Explain why the ethical component of corporate culture is a significant factor in ethical decision making. Provide an
example of a company or an industry that had to alter a good, service, or business practice because of society’s concerns
about its health, moral, or social impacts.
ANSWER: If a firm’s culture encourages or rewards unethical behavior, its employees may
act unethically. If the culture dictates hiring people with specific, similar values
and if those values are perceived as unethical by society, society will view the
organization and its members as unethical. If a company’s primary objective is to
make as much profit as possible through whatever means, its culture may foster
behavior that conflicts with other stakeholders’ ethical values. Students’ examples
of companies that have changed their goods, services, or business practices in
light of societal expectations will vary. One good example is the fast-food
industry—many restaurants are putting healthier items in kid's meals or are
eliminating the toys historically included with them due to concerns over the
childhood obesity epidemic.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES
:
8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on business
ethics
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/17/2021 2:27 PM
DATE MODIFI
ED:
8/17/2021 2:28 PM
33. Describe the four organizational cultures and provide a specific example of a company that has implemented each
organizational culture.
ANSWER: The four types of corporate cultures are apathetic, caring, exacting, and
Copyright Cengage Learning. Powered by Cognero. Page 16
integrative. Each is based on how much concern the company has for people and
profits. An apathetic culture shows minimal concern for people or profits.
Individuals in this culture focus mainly on their own self-interests. Countrywide
might be an example of this before the recession. Employees were encouraged to
sell to borrowers, even when they could not afford the loan, going so far as to
create "liar loans" for them. This seriously jeopardized the long-term well-being
of the organization. A caring culture exhibits high concern for people over profits.
The Container Store might be a good example of this, as it views employees as its
most important stakeholder. An exacting culture shows more concern for profits
over people. UPS has an exacting culture and holds employees to high standards.
However, even an exacting culture should show concern for people if it wants to
be successful. An integrative culture shows high concern for both people and
profits. Starbucks is an example of an integrative culture, characterized by the
fact that employees see themselves as important to meeting the firm's
performance criteria.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES
:
8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on business
ethics
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/17/2021 2:28 PM
DATE MODIFI
ED:
8/17/2021 2:29 PM
34. Discuss how group norms influence the ethical behavior of an organization. What happens when the norms of a
particular group conflict with the organization's corporate culture or objectives?
ANSWER: Group norms are standards of behavior groups expect of their members. Just as
corporate culture establishes behavior guidelines for an organization’s members,
group norms help define acceptable and unacceptable behavior within a group. In
particular, group norms define the limit allowed on deviations from group
expectations. Norms also provide explicit ethical directions. They have the power
to enforce a strong degree of conformity among group members. At the same
time, they define the different roles for various positions within the organization.
Sometimes group norms conflict with the values and rules prescribed by the
organization’s culture. If this happens, it often results in a culture that is
inconsistent with its purported rules and values. In this case, management should
take corrective action and continually monitor not only the corporate culture but
also the norms of all the various groups in the organization.
POINTS: 1
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DIFFICULTY: Easy
REFERENCES
:
8-4 Group Dimensions of Corporate Structure and Culture
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.08.05 - Discuss the relationship between individual and group
ethical decision making
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/17/2021 2:29 PM
DATE MODIFI
ED:
8/17/2021 2:30 PM
35. Which of the following is an informal channel of communication?
a. Team communication
b. The grapevine
c. Performance
evaluations
d. Reports
e. Presentations
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-4 Group Dimensions of Corporate Structure and Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIV
ES:
BE.FERR.13.ChO.08.04 - Explore how the work group influences
ethical decisions
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:30 PM
DATE MODIFIED: 8/17/2021 2:32 PM
36. Most employees are not concerned about retribution when making the decision to report potential misconduct
externally.
a. True
b. Fals
e
Copyright Cengage Learning. Powered by Cognero. Page 18
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:32 PM
DATE MODIFIED: 8/17/2021 2:33 PM
37. Non-profit organizations, corporations, and government agencies all have their own organizational cultures.
a. True
b. Fals
e
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-1 Defining Corporate Culture
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.08.01 - Understand the concept of a corporate
culture
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:33 PM
DATE MODIFIED: 8/17/2021 2:34 PM
38. A cultural audit can be performed internally within the organization.
a. True
b. Fals
e
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 8-2 The Role of Corporate Culture in Ethical Decision Making
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.02 - Examine the influence of corporate culture on
business ethics
Copyright Cengage Learning. Powered by Cognero. Page 19
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:54 PM
DATE MODIFIED: 8/17/2021 2:54 PM
39. Committees, work groups, and teams are all types of formal groups.
a. True
b. Fals
e
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-4 Group Dimensions of Corporate Structure and Culture
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIV
ES:
BE.FERR.13.ChO.08.04 - Explore how the work group influences
ethical decisions
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:54 PM
DATE MODIFIED: 8/17/2021 2:55 PM
40. In the past 50 years, scholars developed and attempted to measure at least 164 distinct definitions of culture with
recent reviews indicating that the number of definitions has been increasing. While these definitions of culture vary
greatly, they share common elements, including which of the following? (Select three)
a. Culture is shared among individuals belonging to a group or society.
b. Culture is formed over a relatively short period of time.
c. Culture is volatile and always in flux.
d. Culture is relatively stable.
e. Culture is formed over a relatively long period of time.
ANSWER: a, d, e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-1 Defining Corporate Culture
QUESTION TYPE: Multiple Response
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.08.01 - Understand the concept of a corporate
culture
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:55 PM
Copyright Cengage Learning. Powered by Cognero. Page 20
DATE MODIFIED: 8/17/2021 2:57 PM
41. Which of the following includes shared values, norms, and artifacts that influence employees and determine behavior?
a. Corporate compliance
b. Differential association
c. Organizational culture
d. Ethical culture
e. Apathetic culture
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 8-1 Defining Corporate Culture
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.08.01 - Understand the concept of a corporate
culture
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:57 PM
DATE MODIFIED: 8/17/2021 2:58 PM
42. How is an ethical corporate culture measured? (Select four)
a. Management and the board demonstrate their commitment to integrity, core values,
and ethics codes through their communications and actions.
b.Every employee is encouraged and required to have hands-on involvement in
compliance, especially internal control systems and reporting systems.
c. Ethical leadership starts with the tone at the bottom.
d.Employees are expected to receive communication through resolutions and corrective
actions related to ethical issues.
e. Employees have the ability to report policy exceptions anonymously to any member of
the organization, including the CEO, other members of management, and the board of
directors.
ANSWER: a, b, d, e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 8-1 Defining Corporate Culture
QUESTION TYPE: Multiple Response
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.08.01 - Understand the concept of a corporate
culture
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 2:58 PM
Copyright Cengage Learning. Powered by Cognero. Page 21
DATE MODIFIED: 8/17/2021 2:59 PM
43. Which organizational structure is characterized by low flexibility, low adaptability, and low problem recognition?
a. Mobility
structure
b. Centralized
c. Decentralized
d. Holacracy
e. Delegated
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 8-3 Organizational Structure
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.08.03 - Assess organizational structure and its
relationship to business ethics
NATIONAL STANDA
RDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/17/2021 3:00 PM
DATE MODIFIED: 8/17/2021 3:01 PM
44. Compare and contrast a centralized organizational structure and a decentralized organizational structure. Which one is
more ethical?
ANSWER: In a centralized organization, decision-making authority is concentrated in the
hands of top-level managers, and little authority is delegated to lower levels. In
contrast, in a decentralized organization, decision-making authority is delegated
as far down the chain of command as possible. Because of the strict formalization
and implementation of ethics policies and procedures in centralized
organizations, they tend to be more ethical in their practices than decentralized
organizations. Centralized organizations may also exert more influence on their
employees because they have a central core of policies and codes of ethical
conduct. Decentralized organizations, on the other hand, give employees
extensive decision-making autonomy because management empowers the
employees. However, it is also true that decentralized organizations may avoid
ethical dilemmas through the use of effective codes of conduct and ethics.
Unethical behavior is possible in centralized or decentralized structures when
specific corporate cultures permit or encourage workers to deviate from accepted
standards or ignore corporate legal and ethical responsibilities. Centralized firms
may have a more difficult time uprooting unethical activity than decentralized
organizations as the latter has a more fluid structure in which changes may affect
only a small portion of the company. Often, when a centralized firm uncovers
unethical activity and it appears to be pervasive, the leadership is removed so the
old unethical culture is uprooted and replaced with a more ethical one.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES 8-3 Organizational Structure
Copyright Cengage Learning. Powered by Cognero. Page 22
:
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.08.03 - Assess organizational structure and its relationship to
business ethics
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/17/2021 3:01 PM
DATE MODIFI
ED:
8/17/2021 3:02 PM
45. Explain variation in employee conduct as described by the 10-40-40-10 rule.
ANSWER: Approximately 10 percent of employees take advantage of situations to further
their own personal interests. These individuals are more likely to manipulate,
cheat, or act in a self-serving manner when the benefits gained from doing so are
greater than the penalties for the misconduct. About 40 percent of workers go
along with the work group on most matters. These employees are most concerned
about the social implications of their actions and want to fit into the organization.
Another 40 percent of a company’s employees always try to follow company
policies and rules. These workers not only have a strong grasp of their corporate
culture’s definition of acceptable behavior but also attempt to comply with codes
of ethics, ethics training, and other communications about appropriate conduct.
The final 10 percent of employees try to maintain formal ethical standards that
focus on rights, duties, and rules. They embrace values that assert certain
inalienable rights and actions, which they perceive to be always ethically correct.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES
:
8-5 Variation in Employee Conduct
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.08.05 - Discuss the relationship between individual and group
ethical decision making
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT 8/17/2021 3:02 PM
Copyright Cengage Learning. Powered by Cognero. Page 23
