Title: Corporate Ethics
Course: Demo 1

Q: Brenda loves animals. She works for a company that makes dog food. She started working in the customer service department a month ago and is fresh out of training. She follows the company’s official training policies and scripts on her customer service calls. One day she notices that the quality of ingredients in the food is very poor. She then sees that her phone script avoids mentioning this, and if a customer questions the quality she is directed to follow a script that lies about the ingredients. She is now in a position where she has a(n) ________.
- whistle-blowing opportunity
- issue of honesty and integrity
- issue with a bribe
A: whistle-blowing opportunity; issue of honesty and integrity

Q: A(n) ________ is an individual who exposes illegal or unethical behavior in an organization.
- employee
- executive
- whistle-blower
A: whistle-blower

Q: What rationalizations do some people use to justify their unethical conduct?
- The action is in everyone's best interest.
- No one will find out what I’ve done.
- The behavior really isn’t illegal or immoral.
A: The action is in everyone's best interest.; No one will find out what I’ve done.; The behavior really isn’t illegal or immoral.

Q: Max is a loan processor for a large mortgage company where his job is to verify the information home buyers enter on their loan applications. The mortgage business is very competitive and Max is eager to do a good job and advance in the company. Max’s boss comes to him with several applications Max has recommended be rejected and asks him to “adjust” the statements of income on the applications saying, “these people really deserve a home, don’t they?” The following month, Max’s boss asks him to make the “adjustment” to the income for all of the applicants who have low incomes. Max is not really comfortable with the idea of falsifying the incomes, but he rationalizes that his boss knows what he is doing and in the end the company will protect him because he is just following his boss’s instructions. The following year an audit of the mortgage company’s loan portfolio uncovers the fraud, and when confronted his boss denies knowing anything about it and in the end Max is fired. Instead of rationalizing the original decision to follow his boss’s instructions, what should Max have done?
- Follow his own personal code of conduct about avoiding things that seem improper or wrong.
- Maintain a policy of honesty with customers, his employer and other stakeholders.
- Fulfill his boss’s instructions to falsify statements, but only after receiving the instructions them in writing.
A: Follow his own personal code of conduct about avoiding things that seem improper or wrong.; Maintain a policy of honesty with customers, his employer and other stakeholders.

Q: Ethics are a matter of an individual’s or employee’s personal values; however, they are also influenced by ________.
- business or organizational culture
- organizational behavior
- other members of the organization
A: business or organizational culture; organizational behavior; other members of the organization

Q: An organization’s culture is strongly influenced by ________.
- entry level employees
- retired employees
- top managers
A: top managers

Q: You are in a leadership position at your company. You know that as a leader, you are able to promote an ethical culture within the organization by ________
- communicate with employees about the company’s expectations regarding ethical behavior
- always do what’s best for the financial welfare of the company
- be a visible, positive role model
A: be a visible, positive role model

Q: You are a upper level manager at your company. In order to foster a culture of ethical actions you should________.
- hold subordinates accountable for their conduct and take appropriate action
- hold yourself accountable for mistakes and make appropriate changes
- identify unethical conduct but do not dismiss or reprimand employees for the behavior if it benefits the company
A: hold subordinates accountable for their conduct and take appropriate action; hold yourself accountable for mistakes and make appropriate changes

Q: A ________ is a formalized guide that describes the principles and guidelines that all members must follow in the course of job-related activities.
- business plan
- balance sheet
- code of conduct
A: code of conduct