NASBA ELCP comprehensive exam

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What is the definition of an ethics audit?

An investigation into the ethical climate of the firm

What should an ethical leader do in managing an ethical dilemma?

INCORRECT ANSWER: Discipline the stakeholders involved in the ethical dilemma.

What is the problem with an accommodating style of conflict management?

INCORRECT ANSWER: Leaders might allow unethical employees to continue their misconduct.

What is one of the disadvantages higher-level executives face when overseeing an ethical climate of the organization?

INCORRECT ANSWER: Their tendency to be socially isolated from employees

Why are principles and values so important to companies?

INCORRECT ANSWER: They allow a firm to avoid costly fines from regulators.

Which leadership style is likely to be ineffective at promoting ethical conduct?

INCORRECT ANSWER: transnational leadership

What should an employee do after discovering illegal conduct?

Immediately report to supervisor

Which statement is true about employee feedback?

It helps leaders identify the firm's strengths and weaknesses.

When handling a conflict situation, it is important for a leader to realize that the other party's concerns are _________.

Legitimate

What is organizational ethics?

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

What do zero-sum leaders believe?

There always has to be a winner and a loser in a conflict situation.

According to most companies' ethics codes, what happens to whistle blowers if their reportings are wrong?

They do not face retaliation for good faith reporting

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

They give the firm an opportunity to learn from its mistakes.

Which of the following items tends to be the most observed misconduct in the workplace?

Time Theft

An "ethical blind spot" refers to ___________________.

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

What is a necessary component of an ethical corporate culture?

an ethics program

This approach emphasizes obedience to legal requirements.

compliance based approach

An ethical leader with good interpersonal communication skills should ____________.

demonstrates both respect and firmness

Which of the following is a barrier to communication between leaders and followers?

power differentials

Leaders who display good character________________________.

take responsibility for ethically meeting stakeholders needs


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