Business Ethics midterm (mod. 3)

Describe the purpose of ethics training. A. It provides employees with the chance to become ethics officers. B. To provide a system of reporting for employees. C. It is a formal document that provides guidelines to help employees resolve ethical issues. D. It allows employees to prepare themselves for issues they might encounter in the workplace. E. To gain support from key stakeholders.

D. It allows employees to prepare themselves for issues they might encounter in the workplace.

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

C. an ethics program

Why is shared leadership important? A. It establishes checks and balances on every member of the organization. B. It empowers leaders to make ethical decisions C. It prevents the firm from hiring employees with bad character. D. It keeps leaders from corrupting employees. E. It removes some of the responsibility of board members.

A. It establishes checks and balances on every member of the organization.

While ________ cultures do not necessarily ignore employee well-being, they tend to emphasize company performance first. A. caring B. integrative C. apathetic D. exacting E. coercive

D. exacting

Principles, values, _______, and ________ form an organizational culture. A. norms; artifacts B. policies; ethics programs C. hotlines; continuous improvement D. ethics codes; ethics training E. artifacts; ethics codes

A. norms; artifacts

An ethics officer can do little good without _____________________. A. support from top management and board members B. formal approval by government officials C. high compensation and adequate training D. a culture that stresses high performance E. a global supplier code of conduct

A. support from top management and board members

While these leaders do not necessarily commit misconduct, they care little for ethics in the company. A. authentic leaders B. apathetic leaders C. integrative leaders D. caring leaders E. immoral leader

B. apathetic leaders

Describe leader-follower congruence. A. The ability of followers to become as powerful as the leader B. When followers are forced to follow an organizational leader C. The ability to identify and work with the leader to achieve common ethical objectives D. The power to provide rewards or punish unethical behavior E. The legitimate authority an ethical leader wields over his or her employees

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

What is a characteristic of an ethical leader? A. They consider customers to be the most important stakeholder. B. They make all of the company's ethical decisions. C. They have a passion to do the right thing. D. They consider performance to be the most important factor. E. They micro-manage every facet of a company's operations.

C. They have a passion to do the right thing.

As a company that places employee well-being over company performance, Zappos displays a _________ culture. A. exacting B. integrative C. caring D. coercive E. apathetic

C. caring

This approach emphasizes obedience to legal requirements. A. integrity-based approach B. apathetic approach C. compliance-based approach D. values-based approach E. caring approach

C. compliance-based approach

Why might a company not want to investigate reports of misconduct? A. Investigating would conflict with the firm's code of conduct. B. To maintain a positive reputation. C. Companies want to avoid hiring an ethics officer. D. An investigation is often time-consuming and expensive. E. Leaders would rather have the report analyzed by legal authorities.

D. An investigation is often time-consuming and expensive.

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. A. exactiny B. integrative C. caring D. apathetic E. coercive

D. apathetic

Core practices are ____________________________________. A. voluntary boundaries that are established by management. B. an open communication environment in which managers help deal with ethical issues. C. selected by an organization and translated into norms. D. not legally mandated but are considered best practices of the industry. E. those that are externally enforced, such as laws and regulations.

D. not legally mandated but are considered best practices of the industry.

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

E. An investigation into the ethical climate of the firm

Why are hotlines useful in a firm? A. Because the firm doesn't have an open-door policy. B. Because they are useful for punishing reporters of misconduct. C. Because most managers are not willing to listen to employees. D. Because they are the most direct way to report misconduct. E. Because they allow the caller to remain anonymous.

E. Because they allow the caller to remain anonymous.

In this section, ___________ was identified as the best way to identify misconduct in an organization. A. Installing hidden video cameras B. Tapping employee phone lines C. Sifting through employee emails D. Assigning employees to spy on each other E. Employee reporting

E. Employee reporting

Which statement best describes codes of ethics? A. Behavioral expectations that dictate appropriate behavior B. Certification that all company documentation is accurate C. Ethical values that an employee must follow D. Legal documents that specify a detailed list of regulations E. Formal statements describing what an organization expects of its employees

E. Formal statements describing what an organization expects of its employees

What is the purpose of a code of ethics? A. It provides instructions on how to handle every ethical dilemma in the industry. B. It allows employees to discipline their co-workers for inappropriate conduct. C. It provides a way for employees to defend themselves against misconduct accusations. D. It allows employees to integrate their values into the organizational culture. E. It provides guidelines to help employees recognize and resolve ethical issues.

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