Business Ethics

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What is the definition of an ethical audit? A) An investigation into the ethical climate of the firm B) A way of analyzing a firm's financial situation C) A program to help employees know how to act in ethical dilemmas D) Behavioral expectations that dictate appropriate behavior E) A review of your board of directors and top executives

A) An investigation into the ethical climate of the firm

Which leadership style is likely yo be ineffective at promoting ethical behavior? A) Coercive leadership B) Charismatic Leadership C) Authentic leadership D) Transactional leadership E) Transformational Leadership

A) Coercive leadership

Which of the following items tends to be the most observed misconduct in the workplace? A) wire-scale fraud B) Time theft C) Sexual harassment D) Bribery E) Stealing company secrets

B) Time theft

What does an effective ethics program require? A) A coercive corporate culture B) approval from secondary stakeholders C) support from top management and frequent communication with employees D) Obeying the existing laws and regulation E) Transactional leadership to control behavior of employees

C) support from top management and frequent communication with employees

Why would organizations prefer that employees provide their personal information when making reports? A) The accused party needs to know who made the report B) It is easier to handle a conflict situation when all parties have been identified C) The organization can retaliate against the employees D) Legally, it's impossible to take action without identifying the parties involved E) So that board memebers can know of the level and nature of the accusations

B) It is easier to handle a conflict situation when all parties have been identified

What is necessary component of an ethical corporate culture? A) elimination of counter disciplinary procedures B) an ethics program C) exacting managment D) A socially dominant leader E) rewards for financial performance

B) an ethics program

What is the first step toward making an ethical decision? A) considering alternatives B) identifying the ethical issue C)Solving the ethics D) Listening to bot sides of a conflict E) reporting the ethical issues

B) identifying the ethical issue

What is one of the disadvantages high-level executive face when overseeing an ethic climate of the organization? A) Their lack of power in the organization B) Their negative relationships with employess C) Their inability to control employees D) Their tendency to be socially isolated from employees E) Their inability to make all of the key organizational decisions

D) Their tendency to be socially isolated from employees

This approach emphasizes obedience to legal requirements? A) apathetic approach B) Values-based approach C) integrity-based approach D) compliance based approach E) caring approach

D) compliance based approach

Why might ethics mistakes actually improve an organization in the long run? A) They enable the firm to get rid of its current management B) They all a firm to increase profits from misconduct C) They give the firm an opportunity to learn from its mistakes D) They all the firm to test how far it can go before getting into trouble E) They learn how to navigate 'gray areas' in such a way as to not get penalties

C) They give the firm an opportunity to learn from its mistakes

An ethical leader with goof interpersonal communication skills should _____________. A) place employee needs over organizational needs B) gives up authority to maintain beneficial relationships C) demonstrate both respect and firmness in communication D) avoid delivering negative news E) never reprimand employees

C) demonstrate both respect and firmness in communication

According to most companies' ethics codes, what happens to whistle blowers if their reporting's are wrong? A) They are severely reprimanded B) They are promoted for speaking up C) they do not face retaliation for good faith reporting D) they are looked upon with suspicion E) They are terminated

C) they do not face retaliation for good faith reporting

Which of the following is an important part of an organizational culture? A) Values B) Economic conditions C) Moral Philosophies D) Individual beliefs E) Regulations

A) Values

An effective ethics programs should show __________________. A) intolerance of misconduct B) That it pay for itself C) Support for short-term profits D) inflexibility toward change E) less of a relationship with compliance

A) intolerance of misconduct

Leaders who display good character ___________ A) take responsibility for ethically meeting stakeholders needs B) Know how to perform most tasks within the organization C) Always achieve their goals and objectives D) Place individuals values over organizational values E) value character over competence

A) take responsibility for ethically meeting stakeholders needs

What is the problem with an accommodating style of conflict management? A) Leaders will do whatever they can to make sure the other side loses B) Leaders will seek to avoid conflict at any cost necessary C) Leaders might allow unethical employees to continue their misconduct D) Leaders are unwilling to collaborate or comprommise E) Leaders are likely to actively engage in misconduct themselves

C) Leaders might allow unethical employees to continue their misconduct

What should ethical leaders do in managing an ethical dilemma? A) Coordinate all decision making with the board of directors B) Discipline the stakeholders involved in the ethical dilemma C) Select the most desirable path in a situation in which no decision is optimal D) Minimize the dilemma so that stakeholders won't understand its significance E) Find a solution that will offer positive benefits to all stakeholders involved

C) Select the most desirable path in a situation in which no decision is optimal

What actions can teams take to aid in the ethical decision making process? A) Collectively determine whether an illegal activity should be addressed B) Have the final say on ethical decisions C) Report on a team member's lack of performance contributions D) Collectively look for ethical solutions or alternatives E) answer the public regarding ethical misconduct issues

D) Collectively look for ethical solutions or alternatives

When handling a conflict situation, it is important for a leader to realize that the other party's concerns are ______________. A) Wrong B) superior C) correct D) Legitimate E) Unproven

D)Legitimate

What should an employee do after discovering illegal conduct? A) Begin to improve the firm's ethics program B) transfer guilty employees to other positions C) Determine the best way to cover up illegal conduct D) Immediately terminate all employees involved in the misconduct E) Immediately report to you immediate supervisor

E) Immediately report to you immediate supervisor

Which statement is true about employee feedback? A) It trick employees into believing their opinions matter B) It is not as important as feedback from other employees C) It helps to eliminate the need for managers in the organization D) It trains employees in ethical conduct E) It helps leaders identify the firm's strengths and weaknesses

E) It helps leaders identify the firm's strengths and weaknesses

Which of the following is a barrier to communication between leaders and followers? A) Regulation B) disciplinary procedures C) the presence of hotlines D) Groupthink E) Power differentials

E) Power differentials

What do zero-sum leaders believe? A) Both sides of an ethical conflict can obtain a favorable outcome B) There should be zero tolerance for misconduct in the organization C) Conflict resolution is unimportant for maintaining ethical conduct D) Different approached should be adapted depending upon the situation E) There always has to be a winner and a loser in a conflict situation

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

Why are principles and values so important to companies? A) they always result in the correct ethical decision B) They are important in maintaining operational exellence C) They allow a firm to avoid costly fines from regulators D) They prevent a firm from engaging in misconduct E) They provide guidance for employees and leaders in making ethical decisions

E) They provide guidance for employees and leaders in making ethical decisions

An "ethical blind spot" refers to _________________. A) the lack of an ethical corporate culture or a formal ethics program in the workplace B) a tendency to overlook ethical misconduct in other people C) the feeling that many people have of being less ethical than their peers D) the inability of peers to recognize an ethical issue in an organizational context E) a person's underestimation of his or her own potential to commit misconduct

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


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