BUS3001 Ethics in Organizations
Midterm Exam Review (Qns & Ans)
2025
Question 1:
Case Study: A Fortune 500 company is undergoing a
major restructuring. The CEO has introduced a new code of
ethics to guide decision‑making and set the “tone from the
top.” However, mid‑level managers are skeptical that this
new code will change old habits.
Question: Which of the following actions is most likely to
enhance the credibility and effectiveness of the new ethical
code?
A. Mandating its use only in annual evaluations
B. Incorporating ethical performance into incentive systems
and leading by example
C. Circulating the code as a one‑time email announcement
©2025
,D. Outsourcing the ethics training to an external consultant
without leadership involvement
Correct ANS: B. Incorporating ethical performance into
incentive systems and leading by example
Rationale: Embedding ethics into performance
evaluations and incentives ensures that ethical behavior is
rewarded, while visible leadership commitment (the “tone
from the top”) builds trust and drives cultural change.
---
Question 2:
Case Study: A multinational organization faces an ethical
dilemma when its regional managers in different countries
report conflicting practices. Some regions follow strict
compliance standards, while others adopt more ethically
ambiguous shortcuts to meet targets.
Question: Which ethical theory would best guide a
multinational firm in establishing a unified approach to
decision‑making?
A. Ethical Relativism
B. Utilitarianism, by weighing overall benefits
C. Kantian Deontology, by emphasizing universal principles
©2025
,D. Egoism, by promoting self‑interest
Correct ANS: C. Kantian Deontology, by emphasizing
universal principles
Rationale: Kantian ethics calls for universal moral
principles—“treat others as ends in themselves”—which can
serve as a consistent basis for behavior across varied
cultural contexts, ensuring that all regions adhere to the
same ethical standards.
---
Question 3:
Case Study: A company discovers that a mid‑level
manager has been accepting gifts from vendors in
exchange for preferential treatment. The organization has a
robust code of ethics, yet these practices persist.
Question: Which organizational factor is most likely
contributing to the ethical lapse?
A. Lack of legal regulations
B. A weak ethical culture and inadequate enforcement
mechanisms
C. Excessive financial rewards for ethical behavior
D. Overstaffing in the compliance department
©2025
, Correct ANS: B. A weak ethical culture and inadequate
enforcement mechanisms
Rationale: Even with a comprehensive code, a weak
ethical culture and lax enforcement can create an
environment where unethical behavior is tolerated.
Strengthening oversight and reinforcing cultural values is
essential.
---
Question 4:
Case Study: A technology firm is expanding rapidly and
must integrate ethics into its agile innovation process.
Senior leadership is concerned that speed and efficiency
might compromise ethical standards.
Question: Which strategy is most effective to ensure
ethics remains central amid rapid innovation?
A. Postponing ethics reviews until after product launch
B. Embedding ethics checkpoints in each stage of the
innovation process
C. Relying solely on market forces to determine ethical
outcomes
D. Limiting innovation to reduce potential risks
©2025
Midterm Exam Review (Qns & Ans)
2025
Question 1:
Case Study: A Fortune 500 company is undergoing a
major restructuring. The CEO has introduced a new code of
ethics to guide decision‑making and set the “tone from the
top.” However, mid‑level managers are skeptical that this
new code will change old habits.
Question: Which of the following actions is most likely to
enhance the credibility and effectiveness of the new ethical
code?
A. Mandating its use only in annual evaluations
B. Incorporating ethical performance into incentive systems
and leading by example
C. Circulating the code as a one‑time email announcement
©2025
,D. Outsourcing the ethics training to an external consultant
without leadership involvement
Correct ANS: B. Incorporating ethical performance into
incentive systems and leading by example
Rationale: Embedding ethics into performance
evaluations and incentives ensures that ethical behavior is
rewarded, while visible leadership commitment (the “tone
from the top”) builds trust and drives cultural change.
---
Question 2:
Case Study: A multinational organization faces an ethical
dilemma when its regional managers in different countries
report conflicting practices. Some regions follow strict
compliance standards, while others adopt more ethically
ambiguous shortcuts to meet targets.
Question: Which ethical theory would best guide a
multinational firm in establishing a unified approach to
decision‑making?
A. Ethical Relativism
B. Utilitarianism, by weighing overall benefits
C. Kantian Deontology, by emphasizing universal principles
©2025
,D. Egoism, by promoting self‑interest
Correct ANS: C. Kantian Deontology, by emphasizing
universal principles
Rationale: Kantian ethics calls for universal moral
principles—“treat others as ends in themselves”—which can
serve as a consistent basis for behavior across varied
cultural contexts, ensuring that all regions adhere to the
same ethical standards.
---
Question 3:
Case Study: A company discovers that a mid‑level
manager has been accepting gifts from vendors in
exchange for preferential treatment. The organization has a
robust code of ethics, yet these practices persist.
Question: Which organizational factor is most likely
contributing to the ethical lapse?
A. Lack of legal regulations
B. A weak ethical culture and inadequate enforcement
mechanisms
C. Excessive financial rewards for ethical behavior
D. Overstaffing in the compliance department
©2025
, Correct ANS: B. A weak ethical culture and inadequate
enforcement mechanisms
Rationale: Even with a comprehensive code, a weak
ethical culture and lax enforcement can create an
environment where unethical behavior is tolerated.
Strengthening oversight and reinforcing cultural values is
essential.
---
Question 4:
Case Study: A technology firm is expanding rapidly and
must integrate ethics into its agile innovation process.
Senior leadership is concerned that speed and efficiency
might compromise ethical standards.
Question: Which strategy is most effective to ensure
ethics remains central amid rapid innovation?
A. Postponing ethics reviews until after product launch
B. Embedding ethics checkpoints in each stage of the
innovation process
C. Relying solely on market forces to determine ethical
outcomes
D. Limiting innovation to reduce potential risks
©2025
