Chapter 6

d. place company interests over personal interests.

26. A practical suggestions for business leaders to behave ethically is to a. be "I" leaders. b. focus on self-interests. c. place personal interests over company interests. d. place company interests over personal interests.

c. corporate social performance and corporate financial performance feed and reinforce each other.

27. The virtuous cycle in relation to social responsibility suggests that a. recycling pays off in increased profits. b. ethical executives attract ethical employees. c. corporate social performance and corporate financial performance feed and reinforce each other. d. employee ethics runs in cycles.

b. entitled to whatever they can get away with or steal.

9. According to the idea of entitlement, some corporate executives behave unethically because they feel they are a. entitled to make up for a poor childhood. b. entitled to whatever they can get away with or steal. c. servants of an unfair system. d. underpaid in comparison to top professional athletes and entertainers.

c. aspire to good work that matters to many people.

10. Chief operations officer Joan has an ethical mind, so she has a point of view that helps workers a. figure out when stretching the truth is acceptable. b. catch expense account cheats. c. aspire to good work that matters to many people. d. fear being unethical and dishonest.

d. bookkeeper who told a journalist about fraudulent accounting in the company

25. An example of a whistleblower (in relation to ethics) would be a(n) a. security guard who sent notices to employees who drove too fast in the company parking lot. b. executive who imposed fines on employees who behaved unethically. c. company specialist conducting training programs about ethics. d. bookkeeper who told a journalist about fraudulent accounting in the company

b. rationalizing.

8. Chief financial officer Justin takes himself and his family on an Asian vacation using the company jet. He excuses his behavior by stating, "My family and I were spreading good will around the world for the company." Justin appears to be a. showing concern for stakeholders. b. rationalizing. c. outright lying. d. exercising his rights as a CFO.

b. separating right from wrong.

1. Ethics deals mostly with a. being socially responsible. b. separating right from wrong. c. legal versus illegal behavior. d. professional codes of conduct.

b. an ethics committee for reviewing complaints about ethical problems.

24. An example of a formal mechanism for dealing with ethical problems is a. leadership by example of ethical behavior. b. an ethics committee for reviewing complaints about ethical problems. c. training programs in ethics. d. accepting whistleblowers.

a. behave ethically with them.

28. An explanation offered for ethical behavior in terms of interpersonal skills is that when you are close with people, you are more likely to a. behave ethically with them. b. take advantage of them from an ethical standpoint. c. overlook their ethical flaws. d. ask them to join you in unethical deeds.

d. wants everybody to benefit.

3. An authority cited in the leadership text argues that ethics is at the center of leadership because the ethical leader a. wants to create a positive public appearance. b. promote conflicts of interest. c. attempts to keep profits at a bare minimum. d. wants everybody to benefit.

d. stick to the principles she thinks are right.

4. Rita is a leader of high integrity. According to the technical meaning of integrity, Rita will a. have high morals in every facet of her life. b. be kind to employees even if she does not like them. c. steal only to benefit poor people. d. stick to the principles she thinks are right.

c. pay attention to all stakeholders.

5. A principle of ethical and moral leadership is to a. regularly publicize moral victories. b. maximize personal returns in business transactions. c. pay attention to all stakeholders. d. seek to maximize shareholder wealth.

d. the leader's level of greed, gluttony, and avarice.

6. A major source of individual differences in ethics and morality among leaders is a. the products and services offered by the firm. b. government regulations about ethics. c. the leader's rank in the organizational hierarchy. d. the leader's level of greed, gluttony, and avarice.

a. leading by example.

22. Chief financial officer Barry turns in travel and expense reports that are 100 percent honest, and he encourages employees in his division to inspect his reports. Barry is using the ethical initiative called a. leading by example. b. open-book management. c. accepting whistleblowers. d. developing formal mechanisms for dealing with ethical problems.

c. is not obviously ethical or blatantly unethical.

11. An ethical screen is used primarily when facing a decision that a. is in opposition to the organizational culture. b. affects the majority of employees within the firm. c. is not obviously ethical or blatantly unethical. d. is widely recognized as criminal behavior.

b. What would you tell your child, sibling, or young relative to do?

12. Which one of the following questions in an ethical screen deals with the principle of reversibility? a. How does it smell? b. What would you tell your child, sibling, or young relative to do? c. Who gets hurt? d. Is it fair?

d. all of these choices.

13. A major problem noted with extreme unethical behavior in the executive suite is that such behavior has a. brought companies into bankruptcy. b. led to investor distrust in the stock market. c. led to layoffs of thousands of workers. d. all of these choices.

b. responsibility to society.

14. Corporate social responsibility centers on a firm's a. contributions to charity. b. responsibility to society. c. adherence to laws. d. adherence to ethics.

c. Creating a pleasant workplace

15. Which one of the following is the clearest example of socially responsible behavior on the part of a business firm? a. Ensuring that all workers get paid b. Safely disposing of mercury c. Creating a pleasant workplace d. Avoiding involvement in political causes

a. use as much renewable energy as possible at the company.

16. An example of an executive leader helping sustain the environment would be to a. use as much renewable energy as possible at the company. b. create attractive designs on packages. c. take a little company trash home with them after work. d. charge customers for shipping and delivery.

a. a good return on investment, in terms of social impact, for their donated money.

17. A recent development in corporate philanthropy is for corporate leaders to demand a. a good return on investment, in terms of social impact, for their donated money. b. that the causes receiving the money become good customers. c. that recipients of their generosity all believe in capitalism. d. respect and recognition from all recipients.

c. Leadership by example

18. Which one of the following is a recommended initiative for achieving an ethical and socially responsible organization? a. Establishing severe penalties for whistleblowers b. Encouraging employees to learn ethics mostly by trial and error c. Leadership by example d. Developing informal mechanisms for dealing with ethical problems

d. work with the supplier to improve working conditions.

19. When faced with a supplier who uses unsafe working conditions, a socially responsible alternative is to a. quit working with the supplier. b. impose a price cut on the supplier. c. begin a boycott against the supplier. d. work with the supplier to improve working conditions.

a. vehicle for putting values into action.

2. Ethics can be considered the a. vehicle for putting values into action. b. opposing force to values. c. equivalent of the organizational culture. d. opposite of moral leadership.

b. make public highly unethical behavior by government employees.

20. A unit of the U. S. Federal Government publishes on the Internet an Encyclopedia of Ethical Failure. The purpose of the document is to a. make elected officials look foolish. b. make public highly unethical behavior by government employees. c. make public the good deeds of government employees. d. create the case for a balanced budget.

c. senior managers become ethics leaders.

21. When senior management provides strategic leadership for ethics, a. senior managers emphasize being whistle blowers. b. marketing strategy is converted into ethical strategy. c. senior managers become ethics leaders. d. the roles of stockholders and shareholders become reversed.

d. reward people who have performed well and behaved ethically.

23. A recommended approach to promoting ethical behavior throughout the organization is to a. base rewards on seniority so people will not cut corners to perform well. b. implement a recognition program called "whistleblower of the month." c. hire only those candidates who have taken a course in ethics. d. reward people who have performed well and behaved ethically.

a. attempt to do the most good for the most people.

7. A leader at the postconventional level of moral development is likely to a. attempt to do the most good for the most people. b. maximize personal gain in most business transactions. c. falsify earnings statements to be eligible for a big bonus. d. be moral just enough to look good.