Business Ethics Midterm Exam

What contributed to a flawed culture at Countrywide Financial?

A flawed incentive system

Similarity they share contributes to their firm's ethical cultures?

Ability to align employees behind a common vision

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 constitutes a conflict of interest?

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

Zappos CEO leadership style?

Charismatic Leadership

One of the biggest ethical risks that companies face?

Compliance

Benefits of ethical leadership?

Employees are more willing to work for ethical companies

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

Ethical Diversity

Ethical decision-making of leaders?

Ethical leaders must often take trade-offs regarding stakeholder demands

Steve jobs had:

Expert Power

True about ethical leadership (Howard Schultz)

Finding a way between profit and social consciousness

First step organizations must take to meet needs of stakeholders?

Gather data on the company's stakeholders

What is not a mistake that 5 ethically challenged CEOs?

Giving employees more decision-making authority

Difference between 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 sorely on an individual's personal ethics?

Individual personal values differ significantly and can result in unethical conduct

Organizational Ethical Leadership

Influencing others to ethically achieve company goals

"just following orders" reflects on what part of the leader?

Legitimate power

Fate of ethically-challenged CEOs?

Often face computational damage

Least likely to influence an individual's personal ethics?

Regulatory guidance

Organizational Ethics

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

A values orientation should possess

Strong communication systems

Why would it be a mistake to ignore secondary stakeholders?

They can be an ally or a threat to an organization

What tends to be the most observed misconduct in the workplace?

Time theft

SAM WALTON THE FOUNDER OF WALMART IS A

Transformational leader

Ethics

Unethical conduct is not always black and white

an "ethical blind spot" refers to ________

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

Unlike ethical issue, in an ethical dilemma _________

all the decisions have negative consequences

Compliance orientation and values-based orientation

both orientations can increase ethical awareness among employees

Enron, lowest 20 percent of performers were systematically fired:

coercive power

True about aftermath of financial crisis

consumer trust of business hit a low point

Which word best describes a compliance orientation?

contractual

One way ethical leaders can empower employees?

create open communication environment

About to influence of ethical decision making factors in an organization?

employee decision making is often affected more by organizational relationships

Expert Power

followers are able to trust the leader's expertise and credibility

Ethics mistake actually improve an organization in the long run?

give a firm an opportunity to learn from mistakes

Definition of Ethical Issue Intensity

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

Ethical Issue

identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical

How should ethical leaders perceive stakeholders?

leaders view stakeholders as important co-contributors of firm value

Organizations that reward high performance without considering how results were achieved are:

more likely to have employees engage in unethical behavior

Authentic leadership is

people who are passionate about company goals, display corporate values in the workplace, and long-term relationships with stakeholders

True about ethical leaders?

place company interests above their own

Why are principles and values so important to companies?

provide guidance in making ethical decisions

Leaders who display good character______________

take responsibility for ethically meeting stakeholder needs

Those with an internal locus of control believe____

they have control over events in their lives

A transactional leader _______

tries to create employee satisfaction by negotiating for levels of performance

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

universal; subjective

Def. of group-think

when people in a group go along with the group decision

How should companies approach principles?

zero tolerance for employees to violate them

Which of these stakeholders is a secondary stakeholder?

Special-Interest Groups