Ethics

What likely contributed to the flawed corporate culture at Countrywide Financial?

A flawed incentive system

An "ethical blind spot" refers to ___

A person's underestimation of his or her own potential to commit misconduct

Based on observations of J.P. Morgan CEO James Dimon's reaction to a crisis, what is good way to manage a crisis?

Act quickly and take responsibility for the issues

Unlike an ethical issue, in an ethical dilemma

All the decisions have negative consequences

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

Authentic leadership is characterized by leaders who

Are passionate about company goals, displaying corporate values in the workplace, and from long-term relationships with stakeholders

Which statement is true about a compliance orientation & a values-based orientation within a company?

Both orientations can increase ethical awareness among employees

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

An Enron, the lowest percent of performers were systematically fired. This could be an example of __

Coercive power

Whats is one of the biggest ethical risks that companies face ?

Complacency

Which statement is true regarding the aftermath of the financial crisis?

Consumer trust of business hit a low point

What is a benefit of ethical leadership?

Consumers are more attracted to products from companies with ethical leadership

Which word best describes a compliance orientation?

Contractual

What is one way that ethical leaders can empower employees?

Creating an open communication environment

What is true about the influence of ethical decision making factors in an organization?

Employee decision making is often affected more by organizational relationships

Employees disagreeing about the most ethical decision, for resolving an ethical dilemma is an example of:

Ethical diversity

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 interest above their own

Whats is true about how ethical leaders should perceive stakeholders?

Ethical leaders view stakeholders as important co-contributors of a firm value

If Steve Jobs was admired for his knowledge of Apple products, he displayed

Expert power

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 & credibility

What is the first step organizations must take to meet the needs o 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

Which of the following differentiates ethical leaders from less ethical leaders?

How they respond to mistakes

Ethical leaders must ___ ethical issues and risks.

Identify

Why would an organization not want to rely solely on an individual's personal ethics?

Individual personal values differ significantly ans can result in unethical conduct

Which definition best describes organizational ethical leadership

Influencing others to ethically achieve company goals

According to Howard Schultz, which of the following is true about ethical leadership?

It is about finding a way to balance between profitability & 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

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

Which of these stakeholders is a secondary stakeholder?

Special-interest groups

A values orientations should possess___

Strong communication systems

Leaders who display good character ____

Take responsibility for ethically meeting stakeholder needs

What constitutes a conflict of interest?

The best interests of an individual are placed above the best interests of the company

Based on our definition, how should companies approach principles?

There should be a zero tolerance for employees to violate them

Why would it be a mistake to ignore secondary stakeholders?

They can be an ally or a threat to an organization

Why might ethics actually improve an organization in the long-run?

They give the firm an opportunity to learn from its mistakes

Those with an internal locus of control believe __

They have control over events in their lives

We described five examples of ethical CEOs. What similarity do they share that contributes to their firm's ethical culture?

They have the ability to align employees behind a common vision

What is the fate of ethically-challenged CEOs?

They often face reputational damage.

Why are principles & values so important to companies?

They provide guidance for employees and leaders in making ethical decisions

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

A transactional leader___

Tries to create employee satisfaction by negotiating for level of performance.

Which of the following statements is true about ethics?

Unethical conduct is not always black & white

What is the definition of groupthink?

When people in a group go along with the group decision.

While principles are more ___ in nature, values are more ___ and tend to be enforced by society

universal; subjective