21.According to the What Really Works, “Integrity Tests,” overt integrity tests are more effective in predicting job performance than they are in predicting employee theft.
22.In order to ensure that a company’s ethics code will encourage ethical decision making and behavior, companies need to accomplish two objectives. The first is to communicate the codes to others both within and outside the company, and the second is to develop practical ethical standards and procedures specific to the company’s line of business.
23.Personality-based integrity tests are virtually useless for estimating a job applicant’s honesty.
24.The first step in establishing an ethical climate in a company is for managers to act ethically themselves.
25.Richard Ceballos, a California deputy district attorney, suspected that a deputy sheriff had included false statements in a search warrant affidavit. Ceballos told his supervisors and the defense attorney in the case about his suspicions. Ceballos claims he was then demoted and transferred in retaliation for speaking out on a matter of public concern. This is an example of how whistleblowing should work.
26.There is general agreement regarding what is socially responsible corporate behavior.
27.When CEO Louis Chênevert of United Technologies takes steps to reduce his company’s energy consumption, he is acting socially responsible.
28.The shareholder model and the stakeholder model are two techniques for determining to whom organizations should be socially responsible.
29.The shareholder model holds that management’s most important responsibility is long-term survival (not just maximizing profits), which is achieved by satisfying the interests of multiple corporate stakeholders (not just shareholders).
30.The stakeholder model holds that the only social responsibility that businesses have is to maximize profits.