Test Bank for Human Resource Management 12th Edition Wayne Mondy 40 Test True – False Questions 10 Test Bank Free Text Questions 100 Test Bank Multiple Choice Questions The CEO of GE begins and ends each annual meeting by A) introducing the firm's senior officials B) reviewing the firm's financial details C) stating the firm's integrity principles D) asking stockholders for their opinions The strength of the relationship between what one believes and how one behaves is referred to as what type of ethics? A) Type I B) Type II C) Type III D) Type IV All of the following changes have been implemented by the SEC as a result of the Madoff scandal EXCEPT A) requiring investors to register each trade with the government B) expanding the technology budget to improve enforcement C) rewarding individuals for cooperating with investigations D) establishing five specialized enforcement units Which of the following is a strategy used by Costco? A) outsourcing all administrative tasks to reduce HR costs B) focusing on short-term profits to benefit stockholders C) offering the CEO a high salary and few stock options D) paying high wages to retain good employees The manager of a computer firm believes it is acceptable to bribe government officials, despite the fact that such actions are illegal Which type of ethics suggest that the manager is unethical? A) Type I B) Type II C) Type III D) all of the above Type I ethics is best defined as the strength of the relationship between A) an individual's moral beliefs and the individual's behavior B) morals presented by external sources and the punishment for unethical acts C) an individual's moral beliefs and the morals presented by external sources D) morals exhibited by most of society and the unethical actions of friends and role models What type of ethics is involved if a board of directors considers it wrong to pay excessive salaries to the CEO, yet pays executive salaries that are outrageous? A) Type I B) Type II C) Type III D) Type IV Which of the following was NOT included in the FSGO? A) guidelines for ethics standards B) job security for whistleblowers C) guidelines for providing ethics training D) system for anonymously reporting misconduct What federal law outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act What was the primary focus of many financial firms involved in the 2008/10 financial crisis? A) human resources B) short-term profits C) customer service D) long-range returns Generally, people are considered ethical if they possess A) either Type I or Type II ethics B) either Type II or Type III ethics C) both Type I and Type II ethics D) both Type and Type III ethics Which of the following laws was NOT enacted for the purpose of legislating business ethics? A) Federal Sentencing Guidelines for Organizations Act B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Taft-Hartley Act As a professional, what should be your primary source of ethical guidance in the workplace? A) corporate HR policies B) corporate code of ethics C) corporate mission statement D) corporate procedures What type of ethics is involved when a HR manager knows that it is wrong to discriminate but does so anyway? A) Type I B) Type II C) Type III D) Type IV What ethical breaches in business today have involved hundreds of executives and led to numerous highprofile resignations? A) stock-options-backdating B) excessive severance pay C) unethical salaries D) insider trading Type II ethics is best defined as the strength of the relationship between A) an individual's moral beliefs and the individual's behavior B) morals presented by external sources and the punishment for unethical acts C) an individual's moral beliefs and the morals presented by external sources D) morals exhibited by most of society and the unethical actions of friends and role models Which term refers to the strength of the relationship between what an individual or an organization believes to be moral and correct and what available sources of guidance suggest is morally correct? A) Type I ethics B) Type II ethics C) Type III ethics D) Type IV ethics Which law prohibits a former employee who served in certain positions on a contract in excess of $10 million from receiving compensation as an employee or consultant from that contractor for one year? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act According to the text, sources of ethical guidance and personal beliefs are the basis for A) the model of ethics B) economic modeling C) behavior modeling D) the model of philosophy What law prohibits the release of source selection and proposal information? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act What law was passed in response to reports of military contracts for $500 toilet seats? A) Federal Sentencing Guidelines for Organizations B) Sarbanes-Oxley Act C) Federal Contract Protection Act D) Procurement Integrity Act What federal law offers easier punishments for wayward corporations that have ethics programs in place? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act Bernard Madoff was most likely able to accomplish his Ponzi scheme because A) politicians protected his securities firm B) laws failed to regulate bond investments C) investors did not question his high returns D) police were unable to find sufficient evidence Which of the following would LEAST likely be a source of ethical guidance? A) holy books B) laws C) friends D) tests Which term refers to the discipline that deals with what is good and bad or right and wrong? A) morals and traditions B) social responsibility C) cultural norms D) ethics With regards to ethics, most of the 500 largest corporations in the U.S now have a code of ethics Which of the following would LEAST likely be included in the codes? A) ethics offices B) social accounting C) conduct standards D) performance appraisals What most of the 500 largest corporations in the United States have? A) social responsibility audits B) environmental audits C) codes of ethics D) podcasts In a recent survey, what percent of investors said they would move their account if they discovered the company was involved in unethical behavior? A) 17% B) 37% C) 67% D) 97% Jeff, a manager at Quik Electronics, believes it is acceptable to not hire minorities, despite the fact that almost everyone condemns this practice Jeff is unethical based on A) Type I ethics B) Type II ethics C) Type III ethics D) Type IV ethics What type of ethics is involved if a manager knows that it is wrong to pay bribes yet decides to pay bribes anyway? A) Type I B) Type II C) Type III D) Type IV The minimum standards of ethical behavior in a firm are based on , while higher standards are established by A) corporate policies; human resources B) co-workers; mission statements C) organizational culture; laws D) laws; corporate leadership According to the text, what are the two key elements in the model of ethics? A) moral background and cultural norms B) sources of ethical guidance and personal moral beliefs C) social awareness and cultural norms D) sources of ethical guidance and education level Which of the following firms has NOT been exposed for ethical and often illegal exploits? A) Enron B) Arthur Andersen C) WorldCom D) Charles Schwab 100 Free Test Bank for Human Resource Management 12th Edition Wayne Mondy Multiple Choice Questions - Page Julia works as a production supervisor, and she believes one of her subordinates is drinking during his lunch break Julia's employer does not have a specific rule regarding the subordinate's behavior Which of the following would most likely assist Julia with her problem in this situation? A) corporate code of ethics B) corporate vision statement C) corporate code of conduct D) federal legislation Which law prohibits bribes of foreign government officials or business executives? A) Federal and Foreign Bribery Act B) Foreign Corrupt Practices Act C) Corruption Practices Act D) Sarbanes-Oxley Act Which of the following is NOT a major provision in the SHRM code of ethics? A) professional responsibility B) cultural understanding C) professional development D) fairness and justice Lincoln Enterprises recently fired two employees who were caught stealing tools from the firm's warehouse As a result, the CEO of Lincoln wants to strengthen the firm's ethical culture and prevent future violations by requiring employees to participate in ethics training programs Which of the following best supports the CEO's idea? A) Lincoln Enterprises desires the respect of citizens in the local community B) The social contract developed by Lincoln Enterprises addresses employee concerns C) HR managers at Lincoln Enterprises provide new employees with policy handbooks D) The Sarbanes-Oxley Act requires Lincoln Enterprises to provide ethics training courses The Supreme Court ruling in Bechtel v Competitive Technologies Inc upheld which federal law? A) McCarran-Ferguson Act B) Sarbanes-Oxley Act C) Davis-Bacon Act D) Taft-Hartley Act According to the FSGO, were supposed to be responsible for the prevention of white collar crimes in an organization A) attorneys B) top executives C) common stockholders D) organizational stakeholders Which quality is emphasized more than in the past for the Baldrige National Quality Award? A) interpersonal skills B) leadership ethics C) personal motivation D) community service Lincoln Enterprises recently fired two employees who were caught stealing tools from the firm's warehouse As a result, the CEO of Lincoln wants to strengthen the firm's ethical culture and prevent future violations by requiring employees to participate in ethics training programs Which of the following most likely undermines the CEO's idea? A) Middle managers at Lincoln regularly receive reports of questionable employee behavior B) Since Lincoln Enterprises is a global firm, the training program would need to be translated C) Senior managers at Lincoln indicate that valuable work time would be lost with a training program D) Competitors of Lincoln Enterprises provide regular ethics training programs to managers and employees Which law was passed to redress accounting and financial reporting abuses in light of corporate scandals? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act Doug works at the Adolph Coors Company, and he is currently facing an ethical dilemma related to a hiring decision Which of the following ethics tools is LEAST likely to be offered by Doug's firm? A) appraisals B) decision maps B) ASTD C) HRCI D) WorldatWork Which of the following is NOT a topic included in the social responsibility audit focus? A) open communication B) treatment of employees C) leadership D) management structure Cody has earned all three certifications through the HRCI Which of the following is NOT one of Cody's certifications? A) Professional in Human Resources B) Global Professional in Human Resources C) Senior Professional in Human Resources D) National Professional in Human Resources Most professions are characterized by all of the following qualities EXCEPT A) existence of a common body of knowledge B) established procedures for certifying members C) representative organizations for sharing ideas D) standards set by external representatives With a social contract, an organization primarily has relationships with all of the following EXCEPT A) individuals B) government C) other organizations D) corporate shareholders Who usually determines a corporation's approach to social responsibility? A) government B) stockholders C) top executives D) board of directors Which of the following is expected from the quid pro quo nature of social contracts? A) a stakeholder analysis B) a coordinated code of ethics C) an exchange of information D) an appreciation of differences Which term refers to the set of written and unwritten rules and assumptions about acceptable interrelationships among the various elements of society? A) social obligation B) social contract C) social norm D) social responsibility What is the largest national professional organization for individuals involved in all areas of human resource management? A) American Society for Training and Development B) Society for Human Resource Management C) American Compensation Association D) WorldatWork Businesses operate by public consent with the basic purpose of satisfying the needs of A) government B) society C) workers D) stockholders The implied, enforced, or felt obligation of managers, acting in their official capacities, to serve or protect the interests of groups other than themselves is known as A) human resource ethics B) environmental morality C) corporate social responsibility D) business centered morality Which of the following is NOT one of the types of social audits currently being utilized? A) simple inventory of activities B) analysis of social and cultural norms C) compilation of socially relevant expenditures D) determination of social impact Which of the following is a prominent professional organization in the field of human resources? A) ASTD B) SHRM C) WorldatWork D) all of the above Steve works as an HR generalist at FedEx, but he would like to become a benefits specialist Which organization would enable Steve to earn the designation of Certified Benefits Professional? A) ASTD B) SHRM C) HRCI D) WorldatWork Traditionally, a firm's obligation to society in general has been to produce and distribute goods in return for A) government protections B) financial profits C) charitable contributions D) societal praises In the traditional view of social responsibility, how did business best meet its obligations? A) pursuit of society's interests B) pursuit of government's interests C) pursuit of its own interests D) pursuit of employees' interests Which of the following would NOT be considered a sociallyoriented activity for a firm? A) ADA adherence B) minority training C) corporate giving D) pollution control Most of a social contract stems from a society's A) rules B) ethics C) customs D) government 40 Free Test Bank for Human Resource Management 12th Edition Wayne Mondy True - False Questions Compiling socially relevant expenditures is a method of developing a social contract True False Many organizations today refer to the "triple bottom line" suggesting that attention is now being paid to social and environmental concerns as well as economic issues True False Type I ethics is the strength of the relationship between what one believes and how one behaves True False According to research studies, unethical companies financially outperform ethical companies, although ethical companies are more successful with recruiting True False Surveys indicate that 25% of investors would move their account if they discovered the company was involved in unethical behavior True False The primary goal of the Society for Human Resource Management is to recognize HR professionals through a certification program that offers three different certificates True False A store manager believes it is acceptable to not hire people with disabilities despite the fact that almost everyone condemns this practice The store manager is unethical in a Type I sense True False Most of the 500 largest corporations in the U.S now have a code of ethics True False Firms such as Charles Schwab, Cisco Systems, and Southwest Airlines serve as models of ethical organizations True False The strength of the relationship between what an individual or an organization believes to be moral and correct and what available sources of guidance suggest is morally correct is Type II ethics True False Like a legal contract, the social contract often involves a quid pro quo (something exchanged for something) True False An organization's middle managers usually initiate a corporation's approach to social responsibility True False In most firms, corporate social responsibility activities are implemented by the HR department, although the marketing and public relations departments would be more suitable for the task True False The Global Compact was a United Nation's voluntary, antisweatshop initiative that attempted to improve international corporate social responsibility True False According to the model of ethics, advice from friends, Biblical selections, and laws serve as sources of ethical guidance True False Since Enron, ethical abuses are no longer a concern within corporate America True False A code of ethics establishes the rules by which the organization lives and becomes part of the organization's corporate culture True False A recent survey by SHRM found that approximately twothirds of U.S HR professionals are directly involved in CSR activities True False The stakeholder contract is the set of written and unwritten rules and assumptions about acceptable interrelationships among the various elements of society True False According to the FSGO, firms must provide ethical training to employees True False Ethics training for global firms requires accurate translations as well as localization True False Enron never developed a code of ethics True False In the 2003 case Bechtel v Competitive Technologies Inc., the Supreme Court overturned Sarbanes-Oxley's whistleblower-protection rule True False According to the Procurement Integrity Act, if a firm that has an ethics program in place is found guilty of misconduct, the firm will receive a reduced punishment True False The Sarbanes-Oxley Act was passed in response to reports of out-of-control military spending True False Employees, customers, local governments, and suppliers are organizational stakeholders for most firms True False Unethical practices are limited to Wall Street because of the money and pressure involved True False Procter & Gamble has served as a leader in corporate social responsibility by developing and implementing environment-protection technology and encourage employees to participate in civic activities True False A firm's competitors are part of the firm's social contract True False A store manager who knows that it is wrong to discriminate against minorities yet refuses to hire minorities anyway is exhibiting behavior that is unethical in a Type II sense True False The Procurement Integrity Act of 1988 was passed after reports of military contracts for $500 toilet seats and $5,000 hammers True False Corporate social responsibility is about deciding whether an action is good or bad and what to about it if it is bad True False Corporate social responsibility (CSR) is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves True False The Federal Sentencing Guidelines for Organizations Act contains broad employee whistle-blower protections that subject corporations to penalties for retaliating against employees who report suspected corporate wrongdoing True False A social contract is a systematic assessment of a company's activities in terms of its social impact True False The Corporate and Auditing Accountability, Responsibility and Transparency Act criminalized many corporate acts that were previously relegated to various regulatory structures and is known as the SarbanesOxley Act True False The social contract deals with relationships between an organization and individuals, government, other organizations, and society in general True False Corporate social responsibility is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation True False Surveys indicate that most companies link employee bonuses to ethical performance True False The Corporate and Auditing Accountability, Responsibility and Transparency Act requires SEC reporting banks and bank holding companies to have a code of ethics True False 10 Free Test Bank for Human Resource Management 12th Edition Wayne Mondy Free Text Questions How firms benefit from a strong ethical culture? How can HR departments foster such cultures? Answer Given By fostering a strong ethical culture, firms are better able to gain the confidence and loyalty of their employees and other stakeholders, which can result in reduced financial, legal, and reputation risks, as well as improvements in organizational performance HR professionals can help foster an ethical culture, but that means more than just hanging the ethics codes posters on walls Instead, since the HR professionals' primary job is dealing with people, they must help to instill ethical practices into the corporate culture Those values must be clearly communicated to all employees, early and often, beginning with the interviewing process, reinforced during employee orientation, and regularly recognized during performance reviews, public ceremonies, celebrations, and awards What is an organizational stakeholder? Why should a firm conduct a stakeholder analysis? Answer Given Most organizations, whether profit or not-for-profit, have a large number of stakeholders An organizational stakeholder is an individual or group whose interests are affected by organizational activities Society is increasingly holding corporate boards of directors and management accountable for putting the interest of stakeholders first However, managers may not acknowledge responsibility for all of them Protecting the diversity of stakeholder interests requires answering questions regarding how you will treat the various stakeholders Answering such questions is termed stakeholder analysis What is the difference between ethics and corporate social responsibility as each concept applies to corporations? Answer Given Ethics is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation Ethics is about deciding whether an action is good or bad and what to about it if it is bad Those in management make ethical (or unethical) decisions every day regarding hiring, safety, and compensation Corporate social responsibility (CSR) is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves When a corporation behaves as if it has a conscience, it is said to be socially responsible CSR considers the overall influence of corporations on society at large and goes beyond the interests of shareholders It is how a company as a whole behaves toward society What is the purpose of a social audit? What methods are available to firms that want to conduct social audits? Answer Given To overcome the negative publicity of corporate misdeeds and to restore trust, businesses are now conducting audits of their social responsibility activities, not just financial audits A social audit is a systematic assessment of a company's activities in terms of its social impact Three possible types of social audits are currently being used: (1) simple inventory of activities, (2) compilation of socially relevant expenditures, and (3) determination of social impact What government legislation has been passed to encourage ethical behavior by corporations? In your answer, provide recent examples of firms that have exhibited unethical behavior despite these laws Answer Given Much of the current legislation was passed because of business ethics breakdowns There have been three attempts to legislate business ethics since the late 1980s The first, the Procurement Integrity Act of 1988, prohibits the release of source selection and contractor bid or proposal information The second attempt occurred with the passage of the 1992 Federal Sentencing Guidelines for Organizations Act (FSGO), which outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations The third attempt at legislating business ethics was the Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002 (Sarbanes-Oxley Act), which criminalized many corporate acts that were previously relegated to various regulatory structures The primary focus of the Sarbanes-Oxley Act is to redress accounting and financial reporting abuses in light of corporate scandals Bernard Madoff swindled money from investors by promising quick, high returns with a $65 billion Ponzi scheme Sky Capital was accused of bilking investors out of more than $140 million over the past decade Then there is the $8 billion scheme orchestrated by Texas billionaire R Allen Stanford Companies that focused on short-term profits seemingly to the exclusion of everything else were the culprits of the 2008/10 financial crisis What is a social contract? Discuss the different relationships a corporation would have in a social contract Answer Given The social contract is the set of written and unwritten rules and assumptions about acceptable interrelationships among the various elements of society Much of the social contract is embedded in the customs of society The social contract concerns an organization's relationships with individuals, government, other organizations, and society in general To the extent that an employee's expectations, such as fair pay, are acknowledged as responsibilities by the organization, they become part of the social contract An organization is obligated to compete fairly with other firms, support charities, and repay loans Organizations are obligated to follow governmental laws Organizations are obligated to be responsible corporate citizens and satisfy the needs of society Why is a code of ethics important? What should be included in a firm's code of ethics? Answer Given A code of ethics helps foster a strong ethical culture To build and sustain an ethical culture, organizations need a comprehensive framework that encompasses communication of behavior expectations, training on ethics and compliance issues, stakeholder input, resolution of reported matters, and analysis of the entire ethics program The code of ethics helps employees know what to when there is not a rule for something The code of ethics is a statement of the values adopted by the company, its employees, and its directors, and sets the official tone of top management regarding expected behavior The code of ethics should include expectations about business conduct, fair competition, and workplace and HR issues As an HR professional, how would you benefit from joining a professional organization, such as SHRM, HRCI, or ASTD? Answer Given Professional organizations permit members to exchange ideas of mutual concern The largest national professional organization for individuals involved in all areas of human resource management is the Society for Human Resource Management (SHRM) The basic goals of the society include defining, maintaining, and improving standards of excellence in the practice of human resource management The Human Resource Certification Institute (HRCI) recognizes human resource professionals through a certification program HRCI offers three certifications for HR professionals—PHR (Professional in Human Resources), SPHR (Senior Professional in Human Resources), and GPHR (Global Professional in Human Resources) Certification encourages human resource professionals to update their knowledge and skills continuously It provides recognition to professionals who have met a stated level of training and work experience The American Society for Training and Development (ASTD) has a certification program that offers the Certified Professional in Learning and Performance (CPLP™) credential so that workplace learning and performance professionals can prove their value to employers and be confident about their knowledge of the field In a brief essay, discuss the difficulties facing U.S firms that implement ethics training programs and corporate social responsibility programs in global environments Answer Given Ethics training for global organizations is more complicated than preparing the training for U.S employees One must also train for the country in which the global company operates Experts say, "Localization is as important as the accuracy of the translation process Learners need to be able to connect in a way that is believable to them Otherwise, you don't make that strong emotional connection that allows us to facilitate an emotional change." The recession of 2008/10 had some global firms questioning the wisdom of being socially responsible Experts wonder if global firms can continue experiencing the lowest possible production costs while still being in compliance with national laws and being socially responsible Since the global economic crisis began, adherence to CSR issues has declined because firms need to focus on costs rather than CSR How can a firm implement a CSR program? Provide specific examples of CSR programs implemented by today's firms Answer Given The following steps are recommended for establishing and implementing a CSR program First, a person should be assigned the responsibility for the program and a structure should be developed Second, a review of what the company is currently doing with regard to CSR should be determined Third, shareholders' expectations and perspectives are determined Fourth, a policy statement is written covering CSR areas such as environmental, social, and community issues Fifth, a set of corporate objectives and an action plan to implement the policies should be developed Sixth, company-wide quantitative and qualitative targets and key performance indicators over a two- to five-year period, together with the necessary measurement, monitoring, and auditing mechanisms, should be created Seventh, communicate to stakeholders and fund managers the direction of CSR for the company Eighth, the progress of the CSR program should be determined Finally, the progress of the CSR program should be reported Numerous companies are also working toward becoming eco-friendly For example, Target's waste-reduction efforts have cut waste by 70 percent Home Depot attempts to make sure that wood and lumber sold in its stores come from sustainable forests McDonald's has eliminated the use of containers made with ozone-depleting chlorofluorocarbons, cut down on the amount and type of packaging it uses, and implemented a program of purchasing goods made from recycled materials ... been exposed for ethical and often illegal exploits? A) Enron B) Arthur Andersen C) WorldCom D) Charles Schwab 100 Free Test Bank for Human Resource Management 12th Edition Wayne Mondy Multiple... officer B) HR manager C) ethics officer D) safety officer 100 Free Test Bank for Human Resource Management 12th Edition Wayne Mondy Multiple Choice Questions - Page When a corporation behaves... society's A) rules B) ethics C) customs D) government 40 Free Test Bank for Human Resource Management 12th Edition Wayne Mondy True - False Questions Compiling socially relevant expenditures