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Quiz
9 Chapter 10
Moral
Choices Facing Employees
MULTIPLE
CHOICE
1. Based on guidelines of employer/employee
relations, which statement is true?
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a.
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company
loyalty is an outmoded, illegitimate concept that employees today reject
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b.
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the
traditional law of agency obliges employees to act loyally and in good faith
and to carry out lawful instructions
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c.
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an
employee's work contract is irrelevant to his or her moral obligations
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d.
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no
value is more important than loyalty, whether to a person or an organization
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2. Conflicts of interest
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a.
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have
become less frequent today.
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b.
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always
involve personal financial gain.
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c.
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are
morally worrisome only when the employee acts to the detriment of the
company.
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d.
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occur
when employees' private interests are substantial enough to potentially
interfere with their job duties.
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3. According to the Supreme Court,
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a.
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there
is nothing improper about an outsider’s using information, as long as the
information is not obtained from an insider who breaches a legal duty to the corporation’s
shareholders.
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b.
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anyone
buying/selling stock based on nonpublic information is guilty of inside
trading.
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c.
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insider
trading violates the interstate commerce clause of the Constitution.
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d.
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it
should be left up to the company, not the government, to decide whether or
not to prohibit insider trading.
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36
4. A "trade secret"
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a.
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is
legally equivalent to a patent or copyright.
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b.
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need
not be treated confidentially by the company in order to be protected.
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c.
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can
become part of an employee's technical knowledge, experience, and skill.
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d.
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is a
narrow, precise concept that the law defines in great detail.
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5. The Foreign Corrupt Practices Act (FCPA)
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a.
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doesn't
apply to countries where bribery is common.
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b.
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is
alleged by its critics to put American companies at a disadvantage.
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c.
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carefully
distinguishes bribery from extortion payments.
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d.
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outlaws
"grease payments".
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6. In determining the morality of giving and
receiving gifts in a business situation, which of the following factors is
MOSTrelevant?
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a.
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the
purpose of the gift
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b.
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the
size of the business
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c.
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amount
of the cash
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d.
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whether
the company is privately held or publicly held
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7. A whistle-blower
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a.
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doesn't
have to be a past or present member of the organization.
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b.
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doesn't
have to report activity that is illegal, immoral, or harmful.
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c.
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is
any employer who spreads gossip.
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d.
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far
from being disloyal, may be acting in the best interest of the organization.
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8. The Sarbanes-Oxley Act
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a.
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makes
it easier to fire whistle blowers.
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b.
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reduces
the law's protection of employees who disclose securities fraud.
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c.
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makes
it illegal for executives to retaliate against employees who report possible
violations of federal law.
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d.
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provides
penalties for blowing the whistle illegitimately or maliciously.
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9. According to Professor Norman Bowie, which of
the following factors is relevant to determining the morality of blowing the
whistle?
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a.
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the
whistle blower's motive
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b.
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whether
internal channels have been exhausted
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c.
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whether
the whistle blowing has some chance of success
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d.
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all
of the above
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10. In discussing the case of the truck stop
cashier who is asked to write up phony chits or receipts, the text argues that
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a.
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there
is nothing wrong with writing up the chits.
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b.
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she
should resign immediately.
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c.
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she
may be justified in "going along," at least temporarily.
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d.
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morality
never requires us to sacrifice our own interests.
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11. In the 1997 case of U.S. v. Hagan, the
Supreme Court found that Hagan
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a.
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had
been discriminated against because of whistle blowing.
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b.
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was
innocent of insider trading.
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c.
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violated
the FCPA despite never having gone overseas.
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d.
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had
misappropriated confidential information.
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12. The Donald Wohlgemuth case shows that
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a.
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trade
secrets can be patented.
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b.
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trade
secrets often become an integral part of an employee's total job skills and
capabilities.
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c.
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employees
need to divest themselves of any skill acquired while handling trade secrets.
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d.
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"noncompete"
or "nondisclosure" contracts are always legally valid.
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13. Some writers deny that employees have any
obligation of loyalty to the company, because
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a.
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companies
are not the kind of things that are properly objects of loyalty.
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b.
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you
cannot trust anyone.
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c.
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it’s
every man for himself.
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d.
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companies
just aren’t the same any more.
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14. When an employee’s interests are likely to
interfere with the employee’s ability to exercise proper judgment on behalf of
the organization, what exists?
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a.
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a
golden opportunity
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c.
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a
balance of power
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b.
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a
conflict of interest
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d.
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a
disaster
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15. Insider trading is
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a.
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the
buying or selling of stocks (or other financial securities) by business
“insiders” on the basis of information that has not yet been made public and
is likely to affect the price of the stock.
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b.
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a
corporate merger.
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c.
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knowing
when to make the best buy.
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d.
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giving
great advice on a deal.
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16. Inside traders ordinarily defend their
actions by claiming that they don’t injure
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a.
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the
boss.
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b.
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their
family.
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c.
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the
President.
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d.
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anyone.
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17. Shaw and Barry mention three arguments for
legally protecting trade secrets. Which of these is one of them?
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a.
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Trade
secrets are the intellectual property of the employee who developed them.
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b.
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Employees
who disclose trade secrets
violate
the confidentiality owed to their employers
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c.
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Trade
secrets are patented.
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d.
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Trade
secrets are trademarked.
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18. U.S. companies have a history of paying off
foreign officials for business favors. Such acts were declared illegal by
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a.
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the
U.S. Customs department.
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b.
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the
Vice President.
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c.
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the
Foreign Corrupt Practices Act (FCPA) of 1977.
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d.
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the
United Nations.
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19. To resolve difficult moral dilemmas, the better we understand the exact ramifications
of the
alternatives—the
more likely we are
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a.
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to
make a sound moral decision.
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c.
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to
be a success.
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b.
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to
drive the boss crazy.
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d.
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to
go to jail.
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20. Whistle-blowing involves exposing activities
that are
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a.
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sports
related.
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c.
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too
close to call.
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b.
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immoral
or illegal.
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d.
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boring
and need some excitement.
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21. Whistle-blowers are only human beings, not
saints, and they sometimes have their own
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a.
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salary.
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c.
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bandwagon.
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b.
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self-serving
agenda.
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d.
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office.
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22. Which act provides sweeping new legal protection
for employees who report possible securities fraud, making it unlawful for
companies to “discharge, demote, suspend, threaten, harass, or in any other
manner discriminate against” them?
|
a.
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Sarbanes-Oxley
Act of 2002
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c.
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Economic
Espionage Act
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b.
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Foreign
Corruption Act
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d.
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U.S.
vs. O’Hagan
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23. Conflicts of interest may exist when
employees have financial investments
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a.
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in
suppliers, customers, or distributors with whom their organizations do
business.
|
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b.
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in
sports teams.
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c.
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and
question the wisdom of the deal.
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d.
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that
lead to office romance.
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24. The use of one’s official position for what
always raises moral concerns and questions?
|
a.
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power
trips
|
c.
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stepping
stones to success
|
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b.
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egos
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d.
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personal
gain
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25. Experimental studies suggest that when
informed that the advice they’re receiving may be biased because of a conflict
of interest,
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a.
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those
who disclose a conflict of interest rarely end up giving more biased advice
than those who do not disclose
|
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b.
|
those
who disclose a conflict of interest always end up giving more biased advice
than those who do not disclose
|
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c.
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People
tend to fail to discount the advice as much as they should.
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d.
|
people
tend to discount the advice as much as they should.
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TRUE/FALSE
1. An employee can have a conflict of interest
even if he or she doesn't act to the detriment of the organization.
2. Insider trading is the buying or selling of
stocks by insiders on the basis of information attained by an “insider” that
has not yet been made public and is likely to affect the price of the stock.
3. The law precisely defines the concept of a
trade secret, just as it does patents and copyrights.
4. A kickback is a kind of bribe.
5. By definition, whistle-blowing can only be
done by a past or present member of the organization.
6. Prudential reasons are reasons that refer to
the interests of others and the demands of morality.
7. All gifts are bribes.
8. According to Norman Bowie, whistle blowing
can never be justified because it involves violating one's duties to the
organization.
9. A bribe is remuneration for the performance
of an act that's inconsistent with the work contract or the nature of the work
one has been hired to perform.
10. The Supreme Court has rejected the idea that
inside trading involves "misappropriating" confidential information.
11. A conflict of interest arises when an
employee has private interests that are substantial enough to potentially
interfere with his or her job duties.
12. The Foreign Corrupt Practices Act (FCPA)
outlaws grease payments.
13. A common argument against the Foreign Corrupt
Practices Act is that it illegitimately imposes parochial American standards on
foreign countries.
14. Employees have no obligations to people with
whom they have no business relations.
15. As a general rule, if the contents of the
work agreement that exists between the employee and the employer are legal and
if the employee freely consents to them, then the employee is under an
obligation to fulfill the terms of the agreement.
16. Sometimes companies require employees to sign
contracts restricting their ability to get a job with, or start, a competing
company. Because they can conflict with freedom of employment, not all such
“noncompete” or “nondisclosure” contracts are legally valid.
17. Justice Ginsberg and Arthur Levitt suggest
that allowing insider trading could lead to a widespread perception that “the
game is rigged.”
18. The Foreign Corrupt Practices Act of 1977
forbids companies to pay kickbacks in the United States, but permits them to
pay kickbacks to companies outside the United States.
19. Employees have certain general duties to
their employers, and because of the specific business, professional, or
organizational responsibilities they have assumed, they may have other more
precise role-based obligations.
20. When faced with a moral decision, employees
should follow the two-step procedure of identifying the relevant obligations,
ideals, and effects; and then decide where the emphasis should lie among these
considerations.
21. According to one expert's definition, whistle
blowing is conceptually restricted to reporting on activities that are harmful
to third parties, violations of human rights, or contrary to the public purpose
and legitimate goals of the organization.
22. According to Norman Bowie, a discussion of
whistle blowing in the 1990s parallels the discussion of civil disobedience in
the 1960s.
23. Prudential reasons are those moral reasons
that are separate from self-interest.
24. According to Jennifer Moore the real reason
insider trading should be prohibited is that it undermines the fiduciary
relationship that is at the heart of business management.
25. The Sarbanes-Oxley Act weakened legal
protections for whistle blowers.
SHORT
ANSWER
1. When does a conflict of interest arise?
2. What is insider trading?
3. Name an argument that's given against
legalizing insider trading?
4. How do trade secrets differ from information
that is patented or copyrighted?
5. What are the main features of the 1977
Foreign Corrupt Practices Act (FCPA)?
6. Name an argument given against foreign forms
of bribery.
7. There are at least seven factors to take into
consideration in determining the morality of giving and receiving gifts in a
business situation. Explain three of them.
8. What is whistle-blowing, and what motivates
whistle-blowers?
9. According to Norman Bowie, whistle-blowing is
morally justified only if five criteria are met. What are these five criteria?
10. What is a key lesson to be learned from the
example of the cashier at a truck stop who is asked by her manager to provide
the truckers with phony chits so they can get a larger reimbursement from their
companies?
ESSAY
1. How do we know when whistle-blowing is
morally right or wrong? Justify your
answer.
2. Consider Coleen Rowley who blew the whistle
against the FBI. How could we justify
the fact that she did the right thing?
Consider at least two different moral theories.
3. When, if ever, are employees overly disloyal
for getting a job for a competing organization?
Justify your answer.
4. If all the other businesses in a foreign
country are providing a “grease payment” for border patrol. Is it all right and ethical to do that? State and defend your answer.
5. Provide an example of an abuse of an official
position. Justify your answer.
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