Concept and importance of ethics in management
Easy
A.Plans for expanding business locations
B.Rules for preparing financial statements
C.Moral principles guiding business decisions
D.Methods for increasing production speed
Correct Answer: Moral principles guiding business decisions
Explanation:
Business ethics refers to moral principles that guide decisions and behavior in business.
Incorrect! Try again.
2Why is ethics important in management?
Concept and importance of ethics in management
Easy
A.It removes the need for planning
B.It builds trust among stakeholders
C.It eliminates all business risks
D.It guarantees permanent profits
Correct Answer: It builds trust among stakeholders
Explanation:
Ethical management builds trust with employees, customers, investors, and other stakeholders.
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3Which principle requires managers to be truthful in their dealings?
Concept and importance of ethics in management
Easy
A.Honesty
B.Competition
C.Secrecy
D.Profitability
Correct Answer: Honesty
Explanation:
Honesty requires managers to communicate truthfully and avoid deception.
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4What is a likely result of ethical management?
Concept and importance of ethics in management
Easy
A.A positive organizational reputation
B.An automatic increase in market share
C.A reduction in every operating cost
D.A complete absence of competition
Correct Answer: A positive organizational reputation
Explanation:
Ethical conduct can improve the organization’s reputation and public confidence.
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5Which is a responsibility of ethical management?
Responsibilities of ethical management
Easy
A.Treating stakeholders fairly
B.Favoring personal relationships
C.Hiding important information
D.Ignoring employee complaints
Correct Answer: Treating stakeholders fairly
Explanation:
Ethical managers should treat stakeholders fairly and respect their legitimate interests.
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6What should an ethical manager do when facing a conflict of interest?
Responsibilities of ethical management
Easy
A.Transfer the conflict to a coworker
B.Use the conflict for personal gain
C.Hide the conflict
D.Disclose the conflict
Correct Answer: Disclose the conflict
Explanation:
Disclosing a conflict of interest supports transparency and helps prevent biased decisions.
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7Which action shows accountability in management?
Responsibilities of ethical management
Easy
A.Blaming others for every mistake
B.Refusing to answer questions
C.Accepting responsibility for decisions
D.Avoiding records of decisions
Correct Answer: Accepting responsibility for decisions
Explanation:
Accountability means accepting responsibility for actions and their results.
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8Why should ethical managers follow organizational policies?
Responsibilities of ethical management
Easy
A.To promote consistent conduct
B.To prevent all employee creativity
C.To avoid communicating with staff
D.To increase personal authority
Correct Answer: To promote consistent conduct
Explanation:
Following ethical policies helps ensure that decisions and behavior are consistent across the organization.
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9Which is an example of unethical behavior in business?
Unethical behaviour: identification, prevention, and intervention
Easy
A.Misusing confidential information
B.Providing accurate product details
C.Respecting customer privacy
D.Following workplace safety rules
Correct Answer: Misusing confidential information
Explanation:
Using confidential information improperly violates trust and ethical standards.
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10What is a common warning sign of unethical behavior?
Unethical behaviour: identification, prevention, and intervention
Easy
A.Using approved procedures
B.Keeping promises to customers
C.Reporting accurate expenses
D.Falsifying business records
Correct Answer: Falsifying business records
Explanation:
Falsifying records is a clear warning sign because it involves deliberately providing false information.
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11Which measure can help prevent unethical behavior?
Unethical behaviour: identification, prevention, and intervention
Easy
A.A clear code of conduct
B.Unreported management decisions
C.Unclear job responsibilities
D.Limited employee training
Correct Answer: A clear code of conduct
Explanation:
A clear code of conduct explains expected behavior and helps employees recognize unacceptable actions.
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12What is whistleblowing?
Unethical behaviour: identification, prevention, and intervention
Easy
A.Preparing a sales forecast
B.Approving an employee vacation
C.Promoting a new product
D.Reporting suspected wrongdoing
Correct Answer: Reporting suspected wrongdoing
Explanation:
Whistleblowing is the reporting of suspected illegal or unethical activities.
Incorrect! Try again.
13What should an employee do after observing serious unethical conduct?
Unethical behaviour: identification, prevention, and intervention
Easy
A.Report it through proper channels
B.Join the conduct secretly
C.Share it on social media
D.Ignore it completely
Correct Answer: Report it through proper channels
Explanation:
Serious unethical conduct should be reported through an appropriate supervisor, ethics office, or reporting system.
Incorrect! Try again.
14What does equal employment opportunity mean?
Ethics in HRM, marketing, advertising, and customer relationships
Easy
A.Giving managers unlimited hiring power
B.Fair treatment in employment decisions
C.Selecting employees based on friendship
D.Hiring only experienced applicants
Correct Answer: Fair treatment in employment decisions
Explanation:
Equal employment opportunity requires fairness in recruitment, promotion, pay, and other employment decisions.
Incorrect! Try again.
15Which HRM practice is unethical?
Ethics in HRM, marketing, advertising, and customer relationships
Easy
A.Using fair selection criteria
B.Protecting employee records
C.Discriminating against job applicants
D.Providing safety training
Correct Answer: Discriminating against job applicants
Explanation:
Discrimination unfairly denies opportunities based on characteristics unrelated to job performance.
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16What is ethical marketing?
Ethics in HRM, marketing, advertising, and customer relationships
Easy
A.Providing truthful product information
B.Creating false customer reviews
C.Hiding important product limitations
D.Using pressure to force purchases
Correct Answer: Providing truthful product information
Explanation:
Ethical marketing gives customers accurate and relevant information about products and services.
Incorrect! Try again.
17Which advertising practice is ethical?
Ethics in HRM, marketing, advertising, and customer relationships
Easy
A.Promising impossible results
B.Hiding additional charges
C.Using misleading product images
D.Making claims supported by evidence
Correct Answer: Making claims supported by evidence
Explanation:
Advertising claims should be truthful, clear, and supported by reliable evidence.
Incorrect! Try again.
18Why is protecting customer privacy important?
Ethics in HRM, marketing, advertising, and customer relationships
Easy
A.It removes customer choice
B.It increases unwanted messages
C.It guarantees higher prices
D.It preserves customer trust
Correct Answer: It preserves customer trust
Explanation:
Protecting personal information shows respect for customers and helps maintain their trust.
Incorrect! Try again.
19How should a company respond to a genuine customer complaint?
Ethics in HRM, marketing, advertising, and customer relationships
Easy
A.Ignore the complaint immediately
B.Listen and seek a fair solution
C.Blame the customer publicly
D.Hide the complaint from management
Correct Answer: Listen and seek a fair solution
Explanation:
Ethical customer service involves listening respectfully and taking reasonable steps to resolve the problem.
Incorrect! Try again.
20Which practice supports ethical customer relationships?
Ethics in HRM, marketing, advertising, and customer relationships
Easy
A.Using customer data without consent
B.Changing prices without notice
C.Withholding purchased goods
D.Honoring agreed terms
Correct Answer: Honoring agreed terms
Explanation:
Honoring agreed terms demonstrates fairness, reliability, and respect for customer rights.
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21A manager discovers that reporting a production delay will reduce the quarterly bonus but will allow customers to revise their plans. Which action best reflects ethical management?
Concept and importance of ethics in management
Medium
A.Describe the delay as a minor issue without changing dates
B.Report the delay only to customers who make inquiries
C.Delay disclosure until the quarterly bonus is calculated
D.Disclose the delay promptly and provide a realistic schedule
Correct Answer: Disclose the delay promptly and provide a realistic schedule
Explanation:
Ethical management emphasizes honesty, transparency, and consideration of stakeholders affected by managerial decisions.
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22A company can legally reduce waste-treatment costs by releasing emissions just below the regulatory limit, but nearby residents may still face health risks. What should an ethical manager do?
Concept and importance of ethics in management
Medium
A.Continue emissions until residents provide medical evidence
B.Use only the legal limit when evaluating the decision
C.Transfer the decision entirely to the legal department
D.Assess stakeholder harm and adopt safer controls where feasible
Correct Answer: Assess stakeholder harm and adopt safer controls where feasible
Explanation:
Ethical management goes beyond minimum legal compliance by considering preventable harm and the legitimate interests of stakeholders.
Incorrect! Try again.
23Two suppliers offer identical prices and quality. One has transparent labor practices, while the other refuses to disclose working conditions. Which selection best supports ethical management?
Concept and importance of ethics in management
Medium
A.Choose the secretive supplier to avoid monitoring costs
B.Choose the transparent supplier after verifying its practices
C.Select either supplier because price and quality are identical
D.Divide the order equally without reviewing labor practices
Correct Answer: Choose the transparent supplier after verifying its practices
Explanation:
Supplier selection should account for ethical risks as well as commercial factors, especially when labor conditions may affect stakeholders.
Incorrect! Try again.
24After a pricing error, a retailer voluntarily refunds affected customers before receiving complaints. Which benefit of ethical management is most directly demonstrated?
Concept and importance of ethics in management
Medium
A.Guaranteed elimination of all future pricing errors
B.Stronger stakeholder trust and long-term reputation
C.Immediate exemption from consumer protection laws
D.Automatic reduction of every operating expense
Correct Answer: Stronger stakeholder trust and long-term reputation
Explanation:
Correcting an error voluntarily signals fairness and accountability, which can strengthen customer trust and organizational reputation.
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25A firm publishes a code of ethics, but employees are rewarded only for meeting sales targets, even when complaints increase. What is management's most important corrective responsibility?
Responsibilities of ethical management
Medium
A.Expand the code with more technical definitions
B.Ask customers to resolve complaints with sales staff
C.Remove sales targets from every employee's evaluation
D.Align incentives and evaluations with ethical conduct
Correct Answer: Align incentives and evaluations with ethical conduct
Explanation:
Managers must ensure that reward systems support stated ethical standards instead of encouraging employees to ignore them.
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26A senior executive is accused of manipulating expense reports. Which response best demonstrates consistent ethical leadership?
Responsibilities of ethical management
Medium
A.Allow the executive's supervisor to settle it privately
B.Issue a general reminder without examining the allegation
C.Postpone action because the executive performs well
D.Apply an impartial investigation and the same standards
Correct Answer: Apply an impartial investigation and the same standards
Explanation:
Ethical management requires fair procedures and consistent accountability regardless of an employee's status or performance.
Incorrect! Try again.
27Employees are uncertain whether accepting gifts from vendors creates a conflict of interest. What should management do first to address the uncertainty?
Responsibilities of ethical management
Medium
A.Ban all communication between employees and vendors
B.Let each department create unwritten rules independently
C.Establish clear guidance with examples and reporting channels
D.Permit gifts whenever no employee submits a complaint
Correct Answer: Establish clear guidance with examples and reporting channels
Explanation:
Management is responsible for communicating practical standards and providing channels through which employees can seek advice or report concerns.
Incorrect! Try again.
28A manager learns that a profitable contractor repeatedly violates workplace safety standards. Which response best balances managerial responsibilities?
Responsibilities of ethical management
Medium
A.Require corrective action and suspend work if risks continue
B.Retain the contractor because its prices benefit shareholders
C.Ignore the violations because contractors manage their workers
D.Wait for a serious accident before reviewing the agreement
Correct Answer: Require corrective action and suspend work if risks continue
Explanation:
Ethical managers must protect stakeholder welfare and enforce standards throughout business relationships, including contractor operations.
Incorrect! Try again.
29An employee consistently approves invoices from a company owned by a close relative without disclosing the relationship. What ethical issue should be identified?
Unethical behaviour: identification, prevention, and intervention
Medium
A.A lawful method of supplier diversification
B.An acceptable form of employee networking
C.A routine delegation of purchasing authority
D.An undisclosed conflict of interest
Correct Answer: An undisclosed conflict of interest
Explanation:
The employee's personal relationship may improperly influence business judgment, so it must be disclosed and independently reviewed.
Incorrect! Try again.
30Several employees avoid reporting misconduct because previous whistleblowers were excluded from projects. Which preventive measure would most directly address this problem?
Unethical behaviour: identification, prevention, and intervention
Medium
A.Reward teams only when they submit no complaints
B.Limit misconduct reports to senior management members
C.Enforce anti-retaliation rules and confidential reporting
D.Require all reports to be made publicly at meetings
Correct Answer: Enforce anti-retaliation rules and confidential reporting
Explanation:
Confidential channels and credible protection from retaliation reduce fear and make employees more willing to report suspected misconduct.
Incorrect! Try again.
31An internal audit finds that one supervisor has repeatedly altered employee overtime records. What is the most appropriate initial intervention?
Unethical behaviour: identification, prevention, and intervention
Medium
A.Publicly accuse the supervisor before reviewing records
B.Delete the altered records and issue new timesheets
C.Transfer the supervisor without documenting the concern
D.Preserve evidence and begin an impartial investigation
Correct Answer: Preserve evidence and begin an impartial investigation
Explanation:
Evidence should be protected and the allegation investigated fairly before disciplinary or corrective decisions are made.
Incorrect! Try again.
32A sales team regularly records future orders as current revenue because its bonus depends on quarterly results. Which control would best prevent recurrence?
Unethical behaviour: identification, prevention, and intervention
Medium
A.Replace quarterly targets with larger monthly targets
B.Separate revenue approval from sales bonus calculations
C.Stop reviewing revenue after bonuses have been paid
D.Allow sales staff to approve their own revenue entries
Correct Answer: Separate revenue approval from sales bonus calculations
Explanation:
Separating incompatible duties reduces the opportunity and incentive for sales staff to manipulate revenue records.
Incorrect! Try again.
33A manager notices that minor policy violations are increasing, although no major misconduct has yet occurred. What is the best preventive response?
Unethical behaviour: identification, prevention, and intervention
Medium
A.Remove the policy because employees frequently violate it
B.Address the pattern through guidance, monitoring, and proportionate action
C.Dismiss the entire team without examining individual conduct
D.Ignore the pattern until a major financial loss occurs
Correct Answer: Address the pattern through guidance, monitoring, and proportionate action
Explanation:
Early, proportionate intervention can correct norms and prevent minor violations from developing into more serious misconduct.
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34A recruiter removes applicants' names, photographs, ages, and addresses before initial screening. Which ethical HRM objective does this practice primarily support?
Ethics in HRM, marketing, advertising, and customer relationships
Medium
A.Guaranteeing promotion after recruitment
B.Reducing bias in candidate evaluation
C.Eliminating the need for job criteria
D.Increasing access to applicants' personal data
Correct Answer: Reducing bias in candidate evaluation
Explanation:
Removing identity-related information can reduce the influence of irrelevant personal characteristics during initial selection.
Incorrect! Try again.
35An HR manager learns that a high-performing supervisor gives desirable shifts only to employees who socialize with them outside work. What is the most ethical response?
Ethics in HRM, marketing, advertising, and customer relationships
Medium
A.Accept the practice because team relationships affect morale
B.Review shift decisions using transparent job-related criteria
C.Give the supervisor complete control over future schedules
D.Rotate all shifts randomly without considering operational needs
Correct Answer: Review shift decisions using transparent job-related criteria
Explanation:
Employment decisions should rely on consistent, relevant criteria rather than favoritism or personal relationships.
Incorrect! Try again.
36A beverage advertisement states that the product "boosts immunity," although the company has no reliable evidence for the claim. What should the marketing manager do?
Ethics in HRM, marketing, advertising, and customer relationships
Medium
A.Use the claim only in markets with limited enforcement
B.Remove or revise the claim until evidence supports it
C.Add brighter packaging to distract from the wording
D.Keep the claim because competitors use similar wording
Correct Answer: Remove or revise the claim until evidence supports it
Explanation:
Ethical advertising requires claims to be truthful, substantiated, and unlikely to mislead consumers.
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37An online store displays a low initial price but adds unavoidable service fees only on the final payment screen. Which change best improves ethical marketing?
Ethics in HRM, marketing, advertising, and customer relationships
Medium
A.Show the fees only in the website's legal terms
B.Waive the fees only for customers who complain
C.Keep the fees hidden but shorten the payment process
D.Display the total mandatory price before checkout begins
Correct Answer: Display the total mandatory price before checkout begins
Explanation:
Showing unavoidable charges early enables informed decisions and prevents misleading price impressions.
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38A company wants to use customers' purchase histories for a new targeted advertising program that was not mentioned when the data was collected. What is the most ethical approach?
Ethics in HRM, marketing, advertising, and customer relationships
Medium
A.Sell the data after removing customers' first names
B.Launch the program and explain it after complaints
C.Obtain meaningful consent before using the data
D.Use the data because the company already stores it
Correct Answer: Obtain meaningful consent before using the data
Explanation:
Using personal data for a new purpose should involve transparency and meaningful customer choice, especially when prior consent did not cover that use.
Incorrect! Try again.
39A customer reports that a safety defect damaged a product but caused no injury. Which response best supports an ethical customer relationship?
Ethics in HRM, marketing, advertising, and customer relationships
Medium
A.Reject the report because no physical injury occurred
B.Investigate promptly, offer a remedy, and assess wider risk
C.Offer a discount only if the customer removes the complaint
D.Refer the customer repeatedly between service departments
Correct Answer: Investigate promptly, offer a remedy, and assess wider risk
Explanation:
An ethical response addresses the individual complaint while also checking whether the defect could harm other customers.
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40A company advertises a subscription as "cancel anytime," but cancellation requires several hidden steps and a telephone call during limited hours. Which principle is most clearly violated?
Ethics in HRM, marketing, advertising, and customer relationships
Medium
A.Fairness and transparency in customer relationships
B.Objectivity in selecting job applicants
C.Confidentiality in employee performance reviews
D.Independence in approving supplier invoices
Correct Answer: Fairness and transparency in customer relationships
Explanation:
A difficult, undisclosed cancellation process contradicts the advertised promise and obstructs customers from exercising an informed choice.
Incorrect! Try again.
41A manager must choose between a legally permissible supplier offering the lowest price and a slightly more expensive supplier whose labor and environmental practices are independently verifiable. Which decision best reflects the strategic importance of ethics in management?
Concept and importance of ethics in management
Hard
A.Delay the decision until competitors reveal their supplier choices
B.Choose either supplier because procurement decisions are ethically neutral
C.Choose the lowest-cost supplier because legality defines managerial responsibility
D.Choose the verified supplier because ethical risk can affect long-term organizational value
Correct Answer: Choose the verified supplier because ethical risk can affect long-term organizational value
Explanation:
Ethical management considers stakeholder welfare, reputational exposure, and sustainable value in addition to immediate legal and financial outcomes.
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42A company publicly claims that it values transparency, but senior managers routinely withhold unfavorable performance data from employees and investors. Which ethical principle is most directly violated?
Concept and importance of ethics in management
Hard
A.Procedural fairness
B.Organizational loyalty
C.Transparency and truthfulness
D.Managerial efficiency
Correct Answer: Transparency and truthfulness
Explanation:
The gap between stated values and selective disclosure violates the obligation to communicate material information honestly and fairly.
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43A manager faces pressure to meet quarterly targets by recognizing revenue before the customer has accepted delivery. The practice is not immediately detected and would improve the manager's bonus. What is the strongest ethical objection?
Concept and importance of ethics in management
Hard
A.It may require additional accounting documentation
B.It shifts risk and information asymmetrically to stakeholders
C.It could make the quarterly report less attractive
D.It may reduce the manager's future promotion prospects
Correct Answer: It shifts risk and information asymmetrically to stakeholders
Explanation:
Premature revenue recognition misrepresents performance and allows insiders to benefit from information that external stakeholders do not possess.
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44A board discovers that a profitable product creates a low-probability risk of severe consumer injury. Which response best satisfies ethical management responsibilities?
Responsibilities of ethical management
Hard
A.Assess the risk, disclose relevant information, and reduce preventable harm
B.Transfer liability through a stronger warranty disclaimer
C.Withdraw the product only if regulators issue a formal order
D.Continue sales because the probability of harm is small
Correct Answer: Assess the risk, disclose relevant information, and reduce preventable harm
Explanation:
Ethical management requires due care, informed stakeholder communication, and proportionate prevention rather than reliance on probability, regulation, or disclaimers alone.
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45An organization wants its ethics program to influence actual decisions rather than serve as symbolic compliance. Which design is most effective?
Responsibilities of ethical management
Hard
A.Publish a detailed code and distribute it annually
B.Align incentives, controls, leadership conduct, reporting, and accountability
C.Appoint an ethics officer without changing incentives
D.Require employees to sign a statement accepting personal responsibility
Correct Answer: Align incentives, controls, leadership conduct, reporting, and accountability
Explanation:
Ethical responsibility is reinforced when formal rules, managerial example, rewards, monitoring, and consequences consistently support the same standards.
Incorrect! Try again.
46A manager learns that a high-performing executive has harassed several employees, but the victims fear retaliation. What is the most responsible managerial action?
Responsibilities of ethical management
Hard
A.Initiate an impartial investigation with protection against retaliation
B.Privately warn the executive and monitor future behavior
C.Move the complainants to other teams to reduce conflict
D.Wait for a formal complaint because informal reports are incomplete
Correct Answer: Initiate an impartial investigation with protection against retaliation
Explanation:
Ethical management protects vulnerable stakeholders, investigates credible concerns fairly, and prevents performance status from excusing misconduct.
Incorrect! Try again.
47A sales division repeatedly reports unusually high customer cancellations after commissions are paid. Which control would best help identify the underlying unethical behavior?
Unethical behaviour: identification, prevention, and intervention
Hard
A.Ask sales managers whether their teams follow policy
B.Compare commission timing with cancellations and customer complaints
C.Increase sales targets for the next quarter
D.Reward only employees who exceed their monthly quotas
Correct Answer: Compare commission timing with cancellations and customer complaints
Explanation:
Analyzing linked behavioral and outcome data can reveal incentive-driven misrepresentation that ordinary self-reporting may conceal.
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48Employees report that a supervisor pressures them to bypass safety checks, but the organization has no evidence of an actual accident. Which interpretation is most appropriate?
Unethical behaviour: identification, prevention, and intervention
Hard
A.Employees should resolve the matter privately before management acts
B.The pressure is an early warning requiring investigation and intervention
C.No misconduct exists until measurable harm occurs
D.The issue is only operational because safety rules are not ethical standards
Correct Answer: The pressure is an early warning requiring investigation and intervention
Explanation:
Ethical risk includes conduct that creates foreseeable danger, even when harm has not yet materialized.
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49A whistleblower submits evidence of procurement fraud but is also involved in a separate attendance violation. How should the organization respond?
Unethical behaviour: identification, prevention, and intervention
Hard
A.Discipline the whistleblower first and postpone the fraud investigation
B.Dismiss the fraud report because the whistleblower lacks credibility
C.Ignore the attendance issue to preserve the whistleblower's cooperation
D.Investigate both matters independently using consistent procedures
Correct Answer: Investigate both matters independently using consistent procedures
Explanation:
Credibility concerns do not eliminate the duty to examine evidence, and unrelated misconduct should neither immunize nor automatically discredit the reporter.
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50A compliance system receives many reports but almost no substantiated findings. Which conclusion is most defensible?
Unethical behaviour: identification, prevention, and intervention
Hard
A.The reporting system is necessarily ineffective
B.The organization should raise the evidence threshold before opening investigations
C.The organization should assess report quality, investigation standards, and deterrence effects
D.Employees are probably abusing the system
Correct Answer: The organization should assess report quality, investigation standards, and deterrence effects
Explanation:
A high volume of reports with few findings can reflect overreporting, weak investigations, strong prevention, or other factors; the data require contextual analysis.
Incorrect! Try again.
51An applicant screening tool rejects candidates from a protected group at twice the rate of other candidates, although the employer did not intend discrimination. What is the most ethical response?
Ethics in HRM
Hard
A.Retain the tool because intent determines ethical responsibility
B.Audit the model, validate job relevance, and correct unjustified disparities
C.Keep the tool confidential so applicants cannot challenge its results
D.Remove all selection criteria to eliminate potential bias
Correct Answer: Audit the model, validate job relevance, and correct unjustified disparities
Explanation:
Ethical HRM addresses discriminatory impact as well as intent and requires evidence that selection methods are relevant, reliable, and fair.
Incorrect! Try again.
52A company uses employee productivity data collected for scheduling to evaluate eligibility for promotion. What issue should HR examine first?
Ethics in HRM
Hard
A.Whether the data are stored on the newest software platform
B.Whether employees were informed about the secondary use and its consequences
C.Whether the data can increase managerial convenience
D.Whether promotion decisions can be made without interviews
Correct Answer: Whether employees were informed about the secondary use and its consequences
Explanation:
Using personal workplace data for a materially different purpose raises concerns about notice, consent, proportionality, and procedural fairness.
Incorrect! Try again.
53Two employees have comparable performance, but one receives a promotion after privately entertaining the department head. No explicit promise was made. Which ethical concern is strongest?
Ethics in HRM
Hard
A.The event matters only if the other employee files a complaint
B.The employee demonstrated superior networking ability
C.The promotion is valid because no written rule was violated
D.The decision may create favoritism and an apparent conflict of interest
Correct Answer: The decision may create favoritism and an apparent conflict of interest
Explanation:
Ethical HR decisions must be impartial and defensible; even an apparent conflict can undermine trust in merit-based advancement.
Incorrect! Try again.
54During layoffs, management selects employees using a neutral performance score that systematically disadvantages workers who took approved family leave. Which approach is most ethical?
Ethics in HRM
Hard
A.Allow each manager to select employees based on personal judgment
B.Review the metric for leave-related bias and use equitable criteria
C.Apply the score because neutral formulas are always fair
D.Exclude all performance information from the process
Correct Answer: Review the metric for leave-related bias and use equitable criteria
Explanation:
A formally neutral metric can produce unjust outcomes when it penalizes legitimate protected absences; ethical fairness requires examining both process and impact.
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55A subscription service advertises a low monthly price but places the mandatory service fee only on the final checkout screen. Which ethical principle is most clearly breached?
Ethics in marketing, advertising, and customer relationships
Hard
A.Informed customer choice
B.Internal cost efficiency
C.Product innovation
D.Competitive neutrality
Correct Answer: Informed customer choice
Explanation:
Concealing unavoidable charges prevents customers from comparing the real price and undermines transparent consent.
Incorrect! Try again.
56A food brand uses a sustainability label based on improvements in one minor ingredient while its overall supply chain remains highly polluting. What is the central ethical problem?
Ethics in marketing, advertising, and customer relationships
Hard
A.Consumers are solely responsible for verifying every claim
B.The brand is prohibited from making any environmental claim
C.The label may be technically accurate but materially misleading
D.Environmental performance has no connection to marketing ethics
Correct Answer: The label may be technically accurate but materially misleading
Explanation:
A narrow true statement can still deceive when its presentation creates a false overall impression about the product's environmental impact.
Incorrect! Try again.
57An online retailer uses browsing data to target financially distressed customers with high-cost loans at moments of urgent need. Which assessment is strongest?
Ethics in marketing, advertising, and customer relationships
Hard
A.The practice exploits vulnerability through asymmetric information and timing
B.The practice is ethical because targeting improves relevance
C.The practice is acceptable if the advertisements are factually correct
D.The practice is neutral because customers can decline the offer
Correct Answer: The practice exploits vulnerability through asymmetric information and timing
Explanation:
Ethical marketing considers power, vulnerability, and foreseeable harm, not merely whether a message is accurate or optional.
Incorrect! Try again.
58A company discovers that its chatbot routinely denies valid warranty claims because it was trained on incomplete historical decisions. What should it do first?
Ethics in marketing, advertising, and customer relationships
Hard
A.Keep the chatbot because automation reduces service costs
B.Delete historical records to prevent future model inconsistencies
C.Suspend or constrain the process, review affected claims, and provide human appeal
D.Require customers to prove that the chatbot made an error
Correct Answer: Suspend or constrain the process, review affected claims, and provide human appeal
Explanation:
Customer-facing automation must be accountable, correctable, and subject to meaningful human review when it produces systematic unfair outcomes.
Incorrect! Try again.
59A company publishes thousands of positive product reviews generated by employees who do not disclose their relationship with the company. Why is this ethically problematic?
Ethics in marketing, advertising, and customer relationships
Hard
A.The practice is acceptable if employees purchased the products themselves
B.Undisclosed advocacy creates a misleading appearance of independent customer support
C.Positive reviews are unethical whenever they increase demand
D.Employees are never allowed to discuss their employer's products
Correct Answer: Undisclosed advocacy creates a misleading appearance of independent customer support
Explanation:
The undisclosed relationship prevents audiences from properly evaluating the credibility and independence of the endorsements.
Incorrect! Try again.
60A telecom provider makes cancellation deliberately difficult while describing its service as customer-friendly. Which remedy best addresses the ethical failure?
Ethics in marketing, advertising, and customer relationships
Hard
A.Disclose that cancellation may require persistence
B.Make cancellation as accessible and clear as enrollment
C.Add more promotional messages before the cancellation page
D.Offer larger discounts to customers who remain subscribed
Correct Answer: Make cancellation as accessible and clear as enrollment
Explanation:
Customer autonomy requires that firms avoid dark patterns and provide a fair, comprehensible path to end a service relationship.
Incorrect! Try again.
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