business ethihcs exam 1 terms
What is one of the biggest ethical risks that companies face?
Complacency
In this section, ___________ was identified as the best way to identify misconduct in an organization.
Employee reporting
Why might a company not want to investigate reports of misconduct?
An investigation is often time-consuming and expensive.
Leaders who display good character__________
take responsibility for ethically meeting stakeholder needs.
What likely contributed to the flawed corporate culture at Countrywide Financial?
A flawed incentive system
Based on observations of J. P. Morgan CEO James Dimon's reaction to a crisis, what is a good way to manage a crisis?
Act quickly and take responsibility for the issues.
What is a necessary component of an ethical corporate culture?
an ethics program
By being highly persuasive and skilled at getting employees to adhere to a common goal or mission, Zappos CEO Tony Hsieh displays what kind of leadership style?
Charismatic leadership
Employees disagreeing about the most ethical decision, for resolving an ethical dilemma, is an example of:
Ethical diversity
Describe the purpose of ethics training.
It allows employees to prepare themselves for issues they might encounter in the workplace.
Organizations that reward high performance without considering how the results were achieved are:
More likely to have employees engage in unethical behavior
Which of these is the least likely to influence an individual's personal ethics?
Regulatory guidance
What is organizational ethics?
Right or wrong, acceptable or unacceptable conduct in an organizational environment
Countrywide Financial did not appear to care for employees' well-being or the long-term well-being of the firm. It can best be described as having a(n) __________ culture.
apathetic
Which of the following information does an ethics audit try to collect?
employees' perception of the firm's ethical culture
This approach emphasizes obedience to legal requirements.
compliance based
Which word best describes a compliance orientation?
contractual
Ethical leaders must ____________ ethical issues and risks.
identify
Principles, values, _______, and ________ form an organizational culture.
norms; artifacts
A values orientation should possess _________________.
strong communication systems
An ethics officer can do little good without
support from top management and board members
Which of the following differentiates ethical leaders from less ethical leaders?
How they respond to mistakes
Describe leader-follower congruence.
The ability to identify and work with the leader to achieve common ethical objectives
What constitutes a conflict of interest?
The best interests of an individual are placed above the best interests of the company.
Which of the following statements is true about ethics?
Unethical conduct is not always black and white.
Why is expert power one of the more effective forms of power a leader can demonstrate?
Followers are able to trust the leader's expertise and credibility.
Which statement best describes codes of ethics?
Formal statements describing what an organization expects of its employees
As a company that places employee well-being over company performance, Zappos displays a _________ culture.
caring
Which definition describes an ethical issue?
An identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical
What is the definition of an ethics audit?
An investigation into the ethical climate of the firm
Unlike an ethical issue, in an ethical dilemma _____________.
all the decisions have negative consequences
While these leaders do not necessarily commit misconduct, they care little for ethics in the company.
apathetic leaders
Why would an organization not want to rely solely on an individual's personal ethics?
Individual personal values differ significantly and can result in unethical conduct.
Which definition best describes organizational ethical leadership
Influencing others to ethically achieve company goals.
Why is shared leadership important?
It establishes checks and balances on every member of the organization.
An "ethical blind spot" refers to ___________________.
a person's underestimation of his or her own potential to commit misconduct
Which statement is true regarding the aftermath of the financial crisis
Consumer trust of business hit a low point.
Why are hotlines useful in a firm?
Because they allow the caller to remain anonymous.
Which statement is true about a compliance orientation and a values-based orientation within a company?
Both orientations can increase ethical awareness among employees.
An Enron, the lowest 20 percent of performers were systematically fired. This could be an example of
Coercive power
Based on our definition, how should companies approach principles?
There should be zero tolerance for employees to violate them.
Why might ethics mistakes actually improve an organization in the long-run?
They give the firm an opportunity to learn from its mistakes.
What is true about the influence of ethical decision making factors in an organization?
Employee decision making is often affected more by organizational relationships.
What is the purpose of a code of ethics?
It provides guidelines to help employees recognize and resolve ethical issues.
Why are principles and values so important to companies?
They provide guidance for employees and leaders in making ethical decisions.
Authentic leadership
are passionate about company goals, display corporate values in the workplace, and form long-term relationships with stakeholders
Core practices are
not legally mandated but are considered best practices of the industry.
While principles are more _________ in nature, values are more __________ and tend to be enforced by society.
universal; subjective
Those with an internal locus of control believe __________.
they have control over events in their lives
While ________ cultures do not necessarily ignore employee well-being, they tend to emphasize company performance first. Your Answer
exacting
A transactional leader
tries to create employee satisfaction by negotiating for levels of performance
What is one way that ethical leaders can empower employees?
Creating an open communication environment.
What are the benefits of ethical leadership?
Employees are more willing to work for ethical companies.
Which statement is true about the ethical decision-making of leaders?
Ethical leaders must often make trade-offs regarding stakeholder demands.
What is true about ethical leaders?
Ethical leaders place company interests above their own.
What is true about how ethical leaders should perceive stakeholders?
Ethical leaders view stakeholders as important co-contributors of firm value.
If Steve Jobs was admired for his knowledge of Apple products, he displayed
Expert power
What is the first step organizations must take to meet the needs of their stakeholders?
Gather data on the company's stakeholders.
In this module, we described five examples of ethically-challenged CEOs. What is not one of the mistakes they made?
Giving employees more decision-making authority
What is the definition of ethical issue intensity?
How important an ethical issue is perceived to be by a company or individual
What occurs when an ethical decision goes wrong
How important an ethical issue is perceived to be by a company or individual
According to Howard Schultz, which of the following is true about ethical leadership?
It is about finding a way to balance between profitability and social consciousness.
Many individuals caught in misconduct claim that they were "just following orders" from their superiors. What type of power might this reflect on the part of the leader?
Legitimate power
Which of these stakeholders is a secondary stakeholder?
Special-interest groups
Why would it be a mistake to ignore secondary stakeholders?
They can be an ally or a threat to an organization.
What is a characteristic of an ethical leader?
They have a passion to do the right thing
What similarity do they share that contributes to their firm's ethical cultures?
They have the ability to align employees behind a common vision.
What is the fate of ethically-challenged CEOs?
They often face reputational damage.
Which tends to be the most observed misconduct in the workplace?
Time theft
Sam Walton, founder of Wal-Mart, would often travel to different stores across the nation to personally meet employees and praise them for their hard work. By actively promoting a shared vision among employees, Sam Walton was a
Transformational leader
groupthink
When people in a group go along with the group decision.