ETHICS Midterm Exam

True Or False Questions

1- Ethics involves a set of moral principles that distinguish between

right and wrong (T)

2- Business ethics is only concerned with teaching theoretical

concept about morality(F)

3- Bribery is considered an unethical practice regardless of its

potential benefits. (T)

4- Voluntary responsibilities of businesses focus only on reducing

government involvement. (False)

5- Scandals (newspapers) in corporate America have increased the

public's trust in business(F) decreased

6- The Federal Sentencing Guidelines for Organizations don't

encourage companies to assess and customize a program to their
key risks (F)encourage

7- Ethics auditing does not require the involvement of top

management other board. (F) Requires involvement

8- Transformational leaders focus on trust and motivation. (True)

9- Some cultures are so strong they dictate the character of the entire
organization to insiders (F) outsiders.

10- A company's history and unwritten rules are part of its

leadership (F)culture.

11- Secondary stakeholders are essential for a company’s

survival. (F) not essential
12- One reason why ethics programs are required is to help
sensitize employees to the potential legal and ethical issues (T)

13- Conflict it is not clear which goals or values take precedence

(T)

14- Ethical climate is a component of corporate culture. (T)

15- Ethical dilemmas involve vague or conflicting rules. (T)

16- A social audit is narrower in scope than an ethics audit. (F )

Broader scope

17-

18- Stakeholder orientation involves understanding and

addressing stakeholder demands. (T)

19- Social responsibility includes only ethical actions required by

law. (F) not only

20- Accountability in corporate governance aligns decisions with

strategic direction. (T)
21- Corporate citizenship includes voluntary contributions to
reputation. (T)
22- Shareholder rights are a concern in corporate governance.
(T)
23- Ethics is the set of moral principles that distinguish right from
wrong. (T)
24- Moral standards can be altered by state or social authorities.
(F)Cannot be altered
25- Legal behavior is always ethical behavior. (F) it is not
necessarily ethical behavior
26- The goal of business ethics is to promote ethical institutions.
(T)
27- The justice view of ethical behavior emphasizes fairness and
equity. (T)
28- Non-moral standards include table manners and clothing
choices. (T)
29- Moral motivation refers to reasoning correctly about what
ought to be done. (F) refers to
30- a personal commitment

31- Ethics and law are completely unrelated and never overlap.
(F)sometimes overlap
32- Economic is a level of social responsibility(T)

33- not recognizing unethical issue can be very dangerous for

business organizations(T)

34- the business is business mentality encourages considering

ethical values in decision making(F) does not encourage

35- in the game of business the smart businessman always

prioritizes ethics over profit(F) making the profits over ethics

36- Jiff Skilling of Enron was dishonest because he treated

business as a game and warfare.(T)

37- fairness means being just ,Equitable and Impartial(T)

38- remote hacking involves attempting to physical enter a

facility(F) across the interne

39- Bribery offering something in order to get illegal

advantage(T)

40- conflict of interest occurs when personal interests are kept

separate from business dealing(F) interfere

41- Laws help businesses determine what society believes at a

certain time, but laws never
 a. change(F)change

42- The Sarbanes-Oxley (SOX) Act established a system of

federal oversight of corporate accounting practices(T)

43- The Dodd-Frank Act instituted a whistle-blower bounty

program(T)

44- Most ethical issues in organizations are financial in

nature.(F)non-financial

45- Organizational Factors include work experience(F) individual

46- ethical issue intensity doesn't trigger the ethical decision

process(F) trigger

47- Democratic leaders rely on participation(T)

48- significant others, such as Peers, managers, and

subordinates, have less influence on daily decision than any other
Factor(F)more influence

49- moral philosophy guides in deciding rights and wrong(T)

50- egoism focuses on benefits for all(F) personal benefits

51- Trust and empathy are virtues that support business

transactions(T)

52- Relationships among individuals and within groups are not

an important part of the proper functioning of a business
organization. (F) an important

53- An organization's failure to monitor or manage its culture

may foster questionable behavior. (T)
 54- Understanding the factors that influence ethical decision-
making can help companies encourage immoral behavior. (F)
ethical

55- Compliance orientation uses legal terms, statutes and

contracts.(T)

56- The Ethics Program Not Always improves.(F) always

improves
57- Ethics Officers don't take action on possible violations of the
code.(F) take

58- Finding opportunities Similar to financial auditing(F) Ethics

audit

59- coworkers may want a way to benchmark their ethical

performance(F) Top management

60- Ethics audits compare an organization’s ethical performance

to its goals, values, and policies(T)

Multiple Choice Questions

1. What is a dimension of corporate citizenship?

a) Economic performance
b) Legal obligations
c) Ethical actions
d) All of the above

2. What does stakeholder orientation involve?

a) Ignoring stakeholder demands
b) Analyzing competitors
 c) Addressing stakeholder demands
d) Focusing on profit alone

3. Which is not a level of social responsibility?

a) Economic
b) Legal
c) Ethical
d) Political

4. Who are fiduciaries in a corporation?

a) Shareholders
b) Directors and officers
c) Customers
d) Suppliers

5. Criminal laws are designed to:

a) Protect consumers from fraud

b) Ensure compliance with environmental standards
c) Penalize prohibited actions
d) Promote competition among businesses

6. What is an example of voluntary corporate citizenship?

a) Following legal regulations
b) Filing tax reports
c) Donating to community projects
d) Submitting financial audits

7. What does the study of business ethics aim to achieve?

a) Higher profits
b) Understanding financial markets
c) Promoting ethical behavior and institutions
d) Avoiding legal consequences
8. Which of the following is NOT a view of ethical behavior?
 a) Utilitarian view
b) Individualism view
c) Communal view
d) Justice view

9. What is moral sensitivity?

a) Commitment to moral action
b) Courageous persistence
c) Ability to see an ethical dilemma
d) Reasoning about what ought to be done

10. Laws regulating competition are also called:

a) Procompetitive legislation
b) Criminal laws
c) Environmental laws
d) Voluntary laws

11. Which of the following best describes the utilitarian view?

a) Acting in self-interest
b) Delivering the greatest good for the greatest number
c) Respecting fundamental rights
d) Maintaining fairness and equity

12. what's the meaning of honestly in business?

a) involves doing whatever is necessary to make money regardless of
the truth.
b) honesty is about truthfulness and Trustworthiness
c) Being just equitable, and impartial
d) Distorting the truth

13. Values orientation attempt to:

a) Develop shared values.
b) A and C.
 c) Create orders.
d) All of the above.

14. ............communicating misleading marketing information or

marketing in general
a) Consumer Fraud
b) Marketing Fraud
c) Tax Fraud
d) Corporate Fraud
15. ………the legal protection of journals, periodicals, music, books,
and movies etc.
a) Corporate intelligence
b) Trademarks
c) intellectual property
d) none of the above

16. The cost of fraud in America amounts to .... annually.

a) 40 million dollars
b) 440 million dollars
c) 400 million dollars
d) 4 million dollars

17. Fairness…….

a) equitable
b) Reciprocity
c) Impartial
d) All of the above
18. focuses on the presentation of individual rights and on the
intentions associated with a particular behavior than on its
consequences:

a) Teleology
b) Deontology
c) Categories of Teleology
d) Egoism

19. Percentage of ethical programs that were poorly implemented

a) 23 %
b) 75 %
c) 57 %
d) 86 %

20. 20-What is the main purpose of criminal law?

a) Defining certain acts as crimes and imposing penalties for them

b) Regulating relations between different countries
c) Promote and protect business activities
d) Establishing laws governing family relationships

21. which of the following is NOT an individual factor that can influence
ethical decision making?

a) Gender
b) Education
c) Race
d) Work experience

22. What is a habit of strong ethical leaders?

 a) Passive decision-making
b) Proactivity
c) Ignoring stakeholders
d) Focus on financial outcomes
23. which of the following is a component of the ethical climate in an
organization?

a) National Laws
b) corporate culture
c) annual leave
d) company size

24. Which factor does NOT influence ethical decision-making?

a) Locus of control
b) Corporate profit
c) Work experience
d) Gender

25. which leadership style is known for relying on friendship to

influence others?

a) Coercive leaders
b) authoritative leaders
c) pacesetting leaders
d) Affiliative leaders

26. which type of leadership focuses on creating employee satisfaction

through negotiation and bartering for desired behaviors?
a) transformational leaders
b) transactional leaders
c) ethical leaders
d) none of the above
27. ……….: is moral philosophy focuses on evaluating ethicalness
based on fairness.

a) Egoism
b) Virtue Ethics
c) Justice perspectives
d) Utilitarianism

28. which of the following perspectives defines ethical Behavior based

on the experiences of individuals and groups acknowledging different
views?

a) Deontology
b) relativist perspective
c) virtue ethics
d) ethical philosophy

29. which of the following is NOT considered a virtue that support

business transactions?

a) Trust
b) Self-control
c) Lying
d) Empathy

30. Corporate culture is significant factor in:

a) factor questionable behavior.
b) ethical decision making
c) coordinating people skills
d) organization pressure

31. What is corporate culture?

A company's profit margin

A set of shared values, beliefs, and problem-solving
 methods
An organization's legal framework
The company's marketing strategies

32. Which factor can eliminate unethical behavior?

a) Informal rules
b) Formal codes and policies
c) Workgroup dynamics
d) Corporate values
33. What is the role of leadership in corporate culture?

a) Setting marketing goals

b) Managing stock investments
c) Guiding and directing others towards achieving a goal
d) Limiting employee engagement

34. Is the ability or authority to guide and direct others towards

achievement of a goal:

a) Power
b) Leadership
c) Motivation
d) Culture
35. The framework of organizational culture typologies includes:

a) Caring
b) Exacting
c) Integrative
d) All of the above
36. Whistle-blowing refers to:

a) Sharing company information with competitors

b) Exposing an employer's wrongdoing to outsiders
c) Rewarding unethical behavior
 d) Manipulating performance data

37. What is the first step in ethical decision-making?

a) Implementation
b) Recognition of an ethical issue
c) Evaluation
d) Establishing policies
38. Which type of leader focuses on fostering trust and motivation?

a) Transactional leader
b) Transformational leader
c) Coercive leader
d) Expert leader

39. How can ethics audit results be verified?

a) By using an independent auditing firm

b) By relying solely on management’s opinion
c) By excluding external parties from the process
d) By ignoring the audit findings

40. What type of organizational structure has decision making

authority concentrated at the top?

a) Centralized
b) Decentralized
c) Flexible
d) Linear

41. What term describes the process of learning the values and
behavior patterns of an organization?
 a) Differential association
b) Whistle-blowing
c) Socialization
d) Conflict management

42. Companies that act to prevent organizational misconduct may

receive a:

a) carrot
b) stick
c) sanctions
d) profits

43. Who has the most influence on daily ethical decisions?

a) Managers
b) Significant others
c) External stakeholders
d) Top leadership

44. Which one is the recommendation to the CEO' s for building trust:

a) Making customers the top priority

b) Handling crisis more honestly.
c) A and B
d) legal terms and contracts.

45. Values orientation attempts to:

a) develop legal terms

b) develop shared values
c) Establish audits
d) address the needs of the average employee.
46. Statement of values serves the general public and addresses:

a) shared values
b) Company profits.
c) stakeholder interests
d) organizational values

47. Most comprehensive document consisting of general statements

that:
a) serve as principles and the basis for the rules of conduct.
b) Review and modify the program to improve effectiveness.
c) Consistent enforcement critical.
d) Non-of the above.

48. Ethics Officers are responsible for:

a) Use statutes and contracts.
b) Help ensure that all employees understand the organizations’
values.
c) Handling crises more honestly.
d) Make sure the company is in compliance with government
regulation.

49. What is one of the main purposes of an ethics audit?

a) To improve organizational performance

b) To reduce production costs
c) To enhance product quality only
d) To increase profits directly

50. One of them "Focuses more on an abstract core of ideals such as

respect and responsibility":
a) Compliance orientation.
b) Values orientation.
c) sanctions orientation.
 d) monetary orientation.

51. ……………… Systematic evaluation of an organization’s ethics

program and performance to determine whether it is effective.

a) Social auditing
b) Ethics audit
c) financial audit
d) management audit

52. Ethics audit gives the ……to measure conformity to the firm’s
ethical standards.

a) Opportunity
b) report
c) schooling
d) investigation

53. ………… Challenges of measuring non-financial performance.

a) Benefit of auditing
b) Benefit of opportunity
c) Benefit of management
d) Benefit of marketing

54. It can help identify potential risks and ……….and improve

compliance with the law.

a) assets
b) liabilities
c) owner’s equity
d) profit
55. Ethics audits may …………ethical problems that a company
cannot immediately remedy.

a) cover
b) uncover
c) help
d) unread
56. What do pacesetting leaders rely on?

a) Standards and rules

b) Friendship
c) Trust and delegation
d) Negotiation
57. Which leadership style relies on participation?

a) Coercive
b) Democratic
c) Pacesetting
d) Affiliative
58. What is ethical issue intensity?

a) The perceived importance of an ethical issue

b) The decision to follow policies
c) Obedience to authority
d) Personal values
59. One of them not power of leaders.

a) Whistle blowing
b) Expert
c) Coercive
d) Legitimate
60. Report the findings to: Audit committee, …………., and
stakeholders.

a) managers
b) auditors
 c) accountants
d) board of directors

Direct questions

1- What are the four levels of social responsibility?

Economic, legal, ethical, and philanthropic.

2- Name two types of stakeholders?

Primary stakeholders (employees, customers) and secondary
stakeholders (media, trade associations).

3- What does stakeholder orientation involve?

It involves generating data about stakeholders, distributing it, and
responding to it effectively.

4- What are the components of corporate governance?

Accountability, oversight, and control.

5- What are the four views of ethical behavior?

Utilitarian view, individualism view, moral-rights view, and justice
view

6- What are the moral standards?

Moral standards are principles that can harm or benefit others
and are not determined by state authorities.

7- Explain the framework of organizational culture typologies.

1) Caring: high concern for people, low concern for performance.
2) Integrative: high concern for people, high concern for
performance.

3) Apathetic: low concern for people, low concern for performance.

 4) Exacting: low concern for people, high concern for performance.

8- Explain the 3 types of justice.

a. Distributive: result of a business relationship.
b. Procedural: based on the processes and activities that
produce the result.
c. Interactional: based on an evaluation of the communication
processes used in business relationships.

9- What is the relationship between ethics and a company’s

reputation?
An ethical company is more likely to build a good reputation,
leading to long-term financial rewards.

10- What are the types of Fraud?

1-accounting fraud
2-marketing fraud
3-consumer fraud

11- Give 2 examples of lying?

1)Lying be commission- like gimmicks in advertising. 2)and
lying by omission.

12- What is the Three dimensions of

institutionalization?
1-Voluntary practices
2-Philanthropy
3-Core practices
4- Mandated boundaries

13- what does Gatekeepers mean?

Overseers of business actions Accountants, regulators, lawyers,
financial rating firms, auditors Critical in providing accurate
information to stakeholders.

14- What are the Four major benefits to society?

1- Improves communities’ quality of life
2- Reduces government involvement
3- Develops employee leadership skills
4- Helps create an ethical culture.

15- What is corporate culture?

A set of values, beliefs, goals, norms, and problem-solving

methods shared by members of an organization

16- What is the role of leadership in corporate culture?

Leadership influences organizational norms, values, and the

ethical posture of the organization

17- What are transactional leaders known for?

Creating employee satisfaction through negotiation

18- What is moral philosophy?

Principles or rules people use to decide what is right or wrong.

19- Name two categories of teleology?

Egoism and Utilitarianism.

20- What does deontology focus on?

Individual rights and intentions rather than consequences.

21- List three virtues that support business transactions?

 - Trust - Fairness - Empathy.

22- State the habits of strong ethical leaders.

a. Have strong personal character.
b. Have a passion to do right.
c. Are proactive.
d. Consider stakeholders interests.
e. Are role model for organization’s values.
f. Are transparent and actively involved in organizational
decision-making.
g. Are competent managers who take a holistic view of the
firm’s ethical culture.

23- Define Leadership.

Is the ability or authority to guide and direct others towards

achievement of a goal

24- What attributes that contrast virtue?

Lying – cheating – corruption – Fraud.

25- Corporation culture coming from upper management in the

form of

Memos – Codes – Handbook – Manuals - Forms – ceremonies.

26- What is white-collar crime?

Illegal acts committed by individuals in positions of power

and responsibility for personal or organizational gains.

27- What is the definition of code of conduct?

 It is s a formal statement that describe what an organization
expects of its employees.

28- Mention two top recommendations to CEOs for rebuilding

trust and confidence in American firms?

1- Making customers the top priority

2- Assuming personal responsibility and accountability.
3- Communicating openly and frequently with customers.
4- Handling crises more honestly.
5- Sticking to the code of business ethics no matter what.

29- Whose conduct are moral agents accountable for?

Employees – invertors – suppliers – customers.

30- what is the definition of Codes of ethics?

Most comprehensive document consisting of general
statements that serve as principles and the basis for the
rules of conduct.

31- What is the ethics audit?

Ethics audit: systematic evaluation of an organization’s

ethics program and performance to determine whether it is
effective.

32- What is the social auditing?

process of accessing and reporting a business’s

performance in fulfilling the economic, legal, ethical, and
philanthropic responsibilities.

33- Write down three benefits of auditing?

a- Ethical crisis management and recovery.
b- Challenges of measuring non-financial performance.
c- Risks and requirements in ethics auditing.
34- What are the Quality and effectiveness in ethics auditing?

- Inclusivity, Comparability, Completeness,

Evolution, Management policies & systems Information
disclosure, and Continuous improvement.

35- What should the report identify?

The report should identify the purpose and scope of the

audit, methods used.