MGT-3110 Midterm

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 a good way to manage a crisis?

Act quickly and take responsibility for the issues.

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

While these leaders do not necessarily commit misconduct, they care little for ethics in the company

Apathetic Leaders

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 and 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 20 percent of performers were systematically fired. This could be an example of __________

Coercive Power

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

Complacency

Which word best describes a compliance orientation?

Contractual

What is one way that ethical leaders can empower employees?

Creating an open communication environment.

Fairness/Justice Approach

Does action treat everyone same way, or does it show favoritism and discrimination

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

Ethical Diversity

Virtue Approach

Ethical actions "what kind of person will I become if I do that"

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

Legitimate Leader

Followers believe an individual has the right to have authority over them

Which statement best describes codes of ethics?

Formal statements describing what an organization expects of its employees

What is the first step organizations must take to meet the needs of their stakeholders?

Gather data on the company's stakeholders.

Principle Approach

General normative standard of conduct - golden rule

What is the definition of ethical issue intensity?

How important an ethical issue is perceived to be by a company or individual

Rights Approach

Individuals right to choose for him/herself

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

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

What is the purpose of a code of ethics?

It provides guidelines to help employees recognize and resolve ethical issues.

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

Core practices are ____________________________________

Not legally mandated but are considered best practices of the industry

Referent Leader

Occurs when a follower admires and identifies with a leader

Which of these is the least likely to influence an individual's personal ethics?

Regulatory guidance

Which of these stakeholders is a secondary stakeholder?

Special-interest groups

Describe leader-follower congruence

The ability to identify and work with the leader to achieve common ethical objectives

Why would it be a mistake to ignore secondary stakeholders?

They can be an ally or a threat to an organization

What similarity do they share that contributes to their firm's ethical cultures?

They have the ability to align employees behind a common vision.

Why are principles and 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

Which of the following statements is true about ethics?

Unethical conduct is not always black and white.

What is the definition of groupthink?

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

Utilitarian Approach

action that provides the most good and does the least harm

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

As a company that places employee well-being over company performance, Zappos displays a _________ culture.

caring

This approach emphasizes obedience to legal requirements.

compliance-based approach

Which of the following information does an ethics audit try to collect?

employees' perception of the firm's ethical culture

While ________ cultures do not necessarily ignore employee well-being, they tend to emphasize company performance first.

exacting

Expert Leader

expertise allows a person to influence others

Coercive Leader

influencing through threats of punishment

Principles, values, _______, and ________ form an organizational culture.

norms ; artifacts

Reward Leader

offers rewards for desired behavior

An ethics officer can do little good without ____________________

support form top management

While principles are more _________ in nature, values are more __________ and tend to be enforced by society.

universal; subjective

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

A flawed incentive system

A transactional leader _____________________________

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

Those with an internal locus of control believe __________

they have control over events in their lives

Unlike an ethical issue, in an ethical dilemma _____________.

All the decisions have negative consequences

Which statement is true about the ethical decision-making of leaders?

Ethical leaders must often make trade-offs regarding stakeholder demands

What is organizational ethics?

Right or wrong, acceptable or unacceptable conduct in an organizational environment

What is the fate of ethically-challenged CEOs?

They often face reputational damage.

Emininent Domain

ability of gov to take/buy property for school, roads, etc.