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business
organizational behavior

Questions and Answers of Organizational Behavior

Divide into two groups and prepare arguments for and against the following behavior: You have been sent to investigate a fraud claim made against your company by the Customs [department] in one of
1. Does TOMS buy-one-give-one-away model make it a more ethical company than a traditional shoe manufacturer donating money to a charity? Why?2. Why would customers pay such a high price for a simple
1. Will Foxconn’s response be sufficient to stop any future suicide attempts? Why or why not?2. If the company has operated on “wafer-thin margins,” how should it deal with the increased labor
1. Identify three factors that are driving pharmaceutical companies to host clinical drug trials overseas.2. What regulations are in place to oversee the professional and ethical management of these
You have been asked to join a team as the representative of your department. The team has been tasked with the development of an ethics training program to support the company’s new code of ethics.
Your company wrote its code of ethics in 1986. You have been assigned to a team that has been tasked with updating the code to make it more representative of current business ethics issues like the
Does the role of an ethics officer bring real value to an organization, or is it just “window dressing” to make the company look good?
Do you think you could be an ethics officer? Why or why not?
When you go shopping, do you pay attention to how transparent the company is in its business practices? Why or why not?
Would organizational integrity make a difference in your loyalty to a company? Why or why not?
1. Which ethical theories could be applied here?2. The administrator of the BP compensation fund argues that everyone should be compensated according to his or her loss in the disaster. Those with an
Divide into two teams. One team must defend the actions of the board of directors at Hewlett-Packard in demanding the resignation of Chairman and CEO Mark Herd. The other team must critique the
Divide into groups of three or four. Each group develops a charter that documents its company’s commitment to ethical behavior. What industry is your company in? What does ethical behavior look
1. When you consider Milton Friedman’s position on corporate responsibility in Chapter 4, is it possible to defend DPS’s demand for lower hourly wages?2. IS DPS considering the interests of all
1. What evidence is there in this case that BP simply addresses fines “as a cost of doing business”?2. BP chief executive Tony Hayward argued that “changing the culture of a 100,000 person
1. What were the perceived conflicts of interest in Wakefield’s research activities?2. If Wakefield had disclosed the source of the funding of his study and his interest in the experimental
Why have concerns over pollution become so important for management and Directors?
Why is an ethical corporate culture important?
Why might ethical corporate behavior lead to higher profitability?
Why is it important for the clients of professional accountants to be ethical?
How can corporations ensure that their employees behave ethically?
Why are the expectations of a corporation’s stakeholders important to the reputation of the corporation and to its profitability?
How can conflicts of interest between stakeholders be resolved by a corporation’s management?
Why are philosophical approaches to ethical decision making relevant to modern corporations and professional accountants?
Is a professional accountant a businessperson pursuing a profit or a fiduciary that is to act in the public interest?
Why is it important for a professional accountant to understand the ethical trends discussed in this chapter?
Why should a professional accountant be aware of the Ethics Code of the International Federation of Accountants (IFAC)?
1. What are the responsibilities of employees who become aware of unethical behavior by their superiors?2. What actions should be taken by corporate leaders when they receive reports of sexual abuse?
1. Football is big business, raising millions and millions of dollars for American universities. Numerous administrators and officials at Pennsylvania State University put a higher value on college
1. Do you find it interesting that most of the critics were women and the media, but those who considered the app to be funny were young men?2. The target market of AMP Energy is males between the
1. If the porn service was legal, very profitable, and readily available elsewhere, was Telus right in shutting their service down. Why or why not?2. Given such legal and profitable opportunities,
1. The Strip2Clothe campaign may have been in questionable taste, but it did raise tens of thousands of pieces of clothing for the homeless. Does the end justify the means?2. Virgin Mobile has a
1. Did Goldman Sachs do anything wrong legally or ethically? Explain your answer.2. Would it make a difference if other investment bankers were also providing such services?3. What subsequent
1. Why did MSO’s stock price decline due to Martha Stewart’s loss of reputation?2. Who is Martha Stewart’s target market?3. What qualities were associated with the Martha Stewart brand, before
1. When it began operations in China in 2006, Google had agreed to have the search engine Google.cn censor information. Did Google have an ethical right to renege on its agreement in 2010 by
1. Given strong profit growth, has there been any damage to Baidu.com’s reputation?2. What would future reputational damage affect, and how could it be measured?3. What steps could Baidu.com take
1. What are the ethical issues raised by this case? Assessing blame: the role of government, whose laws should apply? Profit vs. safety Can unethical behavior go unnoticed? Aside from loss of life
1. Should Ecuadorians be able to sue Texaco in U.S. courts?2. If an oil spill was caused by an act of God, an earthquake, should Texaco be held responsible?3. Do you find Texaco’s arguments against
1. If you were an executive of Mega Brands, what concerns would you express to the CEO about the Magnetix Toy issues noted above?2. If the CEO didn’t pay any attention, what would you do?3. Should
Do you think that the events recorded in this chapter are isolated instances of business malfeasance, or are they systemic through the business world?
The events recorded in this chapter have given rise to legislative reforms concerning how business executives, directors, and accountants are to behave. Is this a case of too little legislation being
Is there anything else that can be done to curtail this sort of egregious business behavior other than legislation?
Many cases of financial malfeasance involve misrepresentation to mislead boards of directors and/or investors. Identify the instances of misrepresentation in the Enron, Arthur Andersen, and WorldCom
Use the Jennings “Seven Signs” framework to analyze the Enron and WorldCom cases in this chapter.
Rank the three worst villains in the film Wall Street: Money Never Sleeps (2010). Explain your ranking.
In each case discussed at some length in this chapter Enron, Arthur Andersen, WorldCom, and Bernie Madoff–the problems were known to whistle-blowers. Should those whistle-blowers each have made
The lack of corporate accountability, and an increased awareness of inequities and other questionable practices by corporations, led to the Occupy Movement. Identify and comment upon additional
The new anti-bribery prosecution regime involves serious charges and penalties for bribery in foreign countries during past times when many people were bribing in the normal course of international
It seems likely that the top executives of the major banks involved in the manipulation of the LIBOR rate were unaware of the manipulations, and of the massive profits and losses caused by those
1. Enron’s directors realized that Enron’s conflict of interests policy would be violated by Fastow’s proposed SPE management and operating arrangements because they proposed alternative
1. What did Arthur Andersen contribute to the Enron disaster?2. What Arthur Andersen decisions were faulty?3. What was the prime motivation behind the decisions of Arthur Andersen’s audit partners
1. Describe the mechanisms that WorldCom’s management used to transfer profit from other time periods to inflate the current period.2. Why did Arthur Andersen go along with each of these
1. Is Madoff’s sentence too long?2. Some SEC personnel were derelict in their duty. What should happen to them?3. Are the reforms undertaken by the SEC
1. Where were Wal-Mart’s questionable payments made, and where did this result in serious damage to the company and its executives? Why?2. The “gestores” payments were made to third parties,
1. Which groups were most at fault for the LIBOR manipulations: brokers, traders, bank executives, bank boards of directors, or regulators? Why?2. Robert Diamond continues to receive his £2 million
How would you respond when someone makes a decision that adversely affects you while saying, “it’s nothing personal, it’s just business”? Is business impersonal?
Is someone who makes an ethical decision based on enlightened self-interest worthy of more or less praise than someone who makes a similar decision based solely on economic considerations?
Since happiness is extremely subjective, how do you objectively measure and assess happiness? Do you agree with J. S. Mill that arithmetic can be used to calculate happiness? Is money a good proxy
Assume that Firm A is a publicly-traded company that puts its financial statements on the web. This information can be accessed and read by anyone, even those who do not own shares of Firm A. This a
How does a business executive demonstrate virtue when dealing with a disgruntled shareholder at the annual meeting?
Commuters who have more than one passenger in the car are permitted to drive in a special lane on some highways while all the other motorists have to contend with stop-and-go traffic. Does this have
Is there any categorical imperative that you can think of that would have universal application? Isn’t there an exception to every rule?
1. Discuss the pros and cons of altering the catalogue using:a. Deontology,b. Utilitarianism, andc. Virtue ethics.2. Should a company alter its marketing campaigns to reflect biases that might be
1. From a utilitarian point of view, who do you think should be in the priority group? From a justice as fairness perspective, who should be in the priority group?2. Should people who make society
1. Do you consider it to be unethical for insurance companies to charge high-risk people a higher premium than low-risk people?2. Are insurance companies acting responsibly when they require
1. Should Alex join the Board of directors of Consolidated Mines International Inc.?2. If Alex joins the Board, should he vote in favor of continuing to make the payments to the United Peoples
1. Ignoring any legal issues, was Cesar ethically obligated to inform his partner, George, of his criminal past?2. Did George have a right to know about Cesar’s criminal past?In 1984, when he was
1. Discuss why an entrepreneur might become overly committed to the entrepreneur’s business, to the point of intentionally engaging in an illegal activity.2. What philosophical principles did Chris
Why should directors, executives, and accountants understand consequentialism, deontology, and virtue ethics?
If a framework for ethical decision making is to be employed, why is it essential to incorporate all four considerations of well-offness, fairness, individual rights and duties, and virtues expected?
Is the modified 5-question approach to ethical decision making superior to the modified moral standards or modified Past in approach?
Under what circumstances would it be best to use each of the following frameworks: the philosophical set of consequentialism, deontology, and virtue ethics; the modified question; the modified moral
How would you convince a CEO not to treat the environment as a cost-free commons?
How can a decision to downsize be made as ethically as possible by treating everyone equally?
List the companies that have faced ethical tragedies due the following failings in their ethical culture:
Before the recent financial scandals and governance reforms, few corporate leaders were selected for their “virtues” other than their ability to make profits. Has this changed, and if so, why?
Is it wise for a decision maker to take into account more than profit when making decisions that have a significant social impact? Why?
From a virtue ethics perspective, why would it be logical to put in place a manufacturing process beyond legal requirements?
Give an example of behavior that might be unethical even though ‘‘everyone is doing it’’.
1. What are the costs to other stakeholders in society beyond those that Reuters included? How would these costs be estimated?2. Has the cost of lost reputation been included by Reuters? If no, how
1. Who was really to blame for the lax procedures found?2. How should this situation be remedied?3. How could the job done by the FDA be improved?4. J & J had lived under a positive halo due to
1. Utilizing the information provided and available from web sources, use the ethical decision-making techniques discussed in the chapter to form an opinion about whether Merck’s decisions
What should Ron consider in making his decision?The discussion between Don Chambers, the CEO, and Ron Smith, the CFO, was getting heated. Sales and margins were below expectations, and the stock
1. What does an ethical analysis add to Viscusi`s actuarial analysis?2. Would an ethical analysis change the conclusion reached? Why?Antismoking advocates cheered in the summer of 1997 when the U.S.
1. Was the decision not to install the rubber bladder appropriate? Use the 5-question framework to support your analysis.2. What faults can you identify in Ford’s cost–benefit analysis?3. Should
1. Who are the stakeholders involved, and what are their interests?2. Which stakeholders and interests are the most important? Why?3. What was wrong with the quality of the board of directors’
What is the role of a board of directors from an ethical governance standpoint?
Explain why corporations are legally responsible to shareholders but are strategically responsible to other stakeholders as well.
How can a company control and manage conflicts of interest?
What is the role of an ethical culture and who is responsible for it?
How could you monitor compliance with a code of conduct in a corporation?
How can a corporation integrate ethical behavior into their reward and remuneration schemes?
Is the SOX-driven effort being made to check on the effectiveness of internal control systems worth the cost? Why, and why not?
Why should an effective whistle-blower mechanism be considered a “failsafe mechanism” in SOX Section 404 compliance programs?
Why is it suspected that corporate psychopaths gravitate to certain industries, and what should corporations within those industries do about it?
Descriptive commentary about corporate social performance is sometimes included in annual reports. Is this indicative of good performance, or is it just window dressing? How can the credibility of
Should professional accountants push for the development of a comprehensive framework for the reporting of corporate social performance? Why?
Do professional accountants have the expertise to audit corporate social performance reports?
When should an employee satisfy his or her self-interest rather than the interest of his or her employer?
Are one or more of the fundamental principles found in codes of conduct more important than the rest? Why?

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