Ethics
What likely contributed to the flawed corporate culture at Countrywide Financial?
A flawed incentive system
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 good way to manage a crisis?
Act quickly and take responsibility for the issues
Unlike an ethical issue, in an ethical dilemma
All the decisions have negative consequences
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
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 & 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 percent of performers were systematically fired. This could be an example of __
Coercive power
Whats is one of the biggest ethical risks that companies face ?
Complacency
Which statement is true regarding the aftermath of the financial crisis?
Consumer trust of business hit a low point
What is a benefit of ethical leadership?
Consumers are more attracted to products from companies with ethical leadership
Which word best describes a compliance orientation?
Contractual
What is one way that ethical leaders can empower employees?
Creating an open communication environment
What is true about the influence of ethical decision making factors in an organization?
Employee decision making is often affected more by organizational relationships
Employees disagreeing about the most ethical decision, for resolving an ethical dilemma is an example of:
Ethical diversity
Which statement is true about the ethical decision-making of leaders?
Ethical leaders must often make trade-offs regarding stakeholder demands
What is true about ethical leaders?
Ethical leaders place company interest above their own
Whats is true about how ethical leaders should perceive stakeholders?
Ethical leaders view stakeholders as important co-contributors of a firm value
If Steve Jobs was admired for his knowledge of Apple products, he displayed
Expert power
Why is expert power one of the more effective forms of power a leader can demonstrate>
Followers are able to trust the leader's expertise & credibility
What is the first step organizations must take to meet the needs o their stakeholders?
Gather data on the company's stakeholders
In this module, we described five examples of ethically-challenged CEOs. What is not one of the mistakes they made?
Giving employees more decision-making authority
What is the definition of ethical issue intensity?
How important an ethical issue is perceived to be by a company or individual
Which of the following differentiates 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 solely on an individual's personal ethics?
Individual personal values differ significantly ans can result in unethical conduct
Which definition best describes organizational ethical leadership
Influencing others to ethically achieve company goals
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
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
Organizations that reward high performance without considering how the results were achieved are:
More likely to have employees engage in unethical behavior
Which of these is the least likely to influence an individual's personal ethics?
Regulatory guidance
What is organizational ethics?
Right or wrong, acceptable or unacceptable conduct in an organizational environment
Which of these stakeholders is a secondary stakeholder?
Special-interest groups
A values orientations should possess___
Strong communication systems
Leaders who display good character ____
Take responsibility for ethically meeting stakeholder needs
What constitutes a conflict of interest?
The best interests of an individual are placed above the best interests of the company
Based on our definition, how should companies approach principles?
There should be a zero tolerance for employees to violate them
Why would it be a mistake to ignore secondary stakeholders?
They can be an ally or a threat to an organization
Why might ethics actually improve an organization in the long-run?
They give the firm an opportunity to learn from its mistakes
Those with an internal locus of control believe __
They have control over events in their lives
We described five examples of ethical CEOs. What similarity do they share that contributes to their firm's ethical culture?
They have the ability to align employees behind a common vision
What is the fate of ethically-challenged CEOs?
They often face reputational damage.
Why are principles & 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
A transactional leader___
Tries to create employee satisfaction by negotiating for level of performance.
Which of the following statements is true about ethics?
Unethical conduct is not always black & white
What is the definition of groupthink?
When people in a group go along with the group decision.
While principles are more ___ in nature, values are more ___ and tend to be enforced by society
universal; subjective