UWYO MGT 3110 Ethics Final

Jack Abramoff Scandal

- "Super-Lobbyist" Abramoff plead guilty to corruption charges in 2006 - Abramoff pleaded guilty to defrauding the Native American tribes that were his clients, to tax evasion and to conspiring to bribe public officials - He illegally gave gifts and made campaign donations to legislators in return for votes or support of legislation - Several federal officials were also accused and found guilty in the scandal

Five Ethical Philosophies

1. Utilitarian - max good, min harm 2. Deontology - follow the rules 3. Virtue Approach - best version of ourselves 4. Principal Approach - ethical values as guides 5. Ethical Egoism - act in best interest

What should an ethical leader do if a conflict begins to escalate?

Bring the discussion back to the core issues.

DFEI - trust

Build trust in all stakeholder relationships

Which statement about organizational ethical role models is true?

Co-workers can be ethical role models, especially when the manager is distant.

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

Coercive leadership

DFEI - rule of law

Comply with the spirit and intent of laws and regulations

DFEI - viability

Create long-term value for all relevant stakeholders

What is a potential downside of overusing the compromising style of conflict management?

Each side has to give something up.

DFEI - respect

Honor the rights, freedoms, views, and property of others

What is the best way to avoid an ethical misconduct disaster?

Identify a potential ethical issue before it snowballs into a crisis.

What does external whistle blowing often indicate about a firm's corporate culture?

Internal reporting is perceived to be ineffective.

Training employees in leadership techniques ___________

Is a form of employee empowerment

Why is the collaborating style of management most favorable to ethical conflict resolution?

Leaders desire to meet the needs of others but adhere to their own goals and values.

How can ethical leaders increase employee empowerment?

Make discussions about ethics commonplace.

What should an ethical leader do in managing an ethical dilemma

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

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

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

Why are principles and values so important to companies?

They provide guidance for employees and leaders in making ethical decisions.

As a lower-level employee, how might you be able to ethically influence new hires?

You can communicate organizational principles and values.

What does mediation involve?

an objective third party helps two parties settle their differences

An ethical leader with good interpersonal communication skills should ____________.

demonstrate both respect and firmness in communication

____________ occurs when both the communicator and receiver considers the unique worth of the other party and tries to understand what the other is communicating.

dialogue

Leaders with an avoiding conflict management style are more likely to exhibit ______________.

ethical complacency

What is the first step toward making an ethical decision?

identifying the ethical issue

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

legitimate

Separating the people from the issue in an ethical conflict situation allows the leader to approach the conflict situation with more __________.

objectivity

What is a step companies take in the recovery process?

reinforcing the firm's reputation with positive messages

Rita Crundwell

stole $54 million to maintain competitive horses and lavish lifestyle through wire fraud- lack of internal and institutional controls

Leaders who display good character________________________.

take responsibility for ethically meeting stakeholder needs.

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

time theft

Which mediation skill is important for an ethical leader to have in a conflict situation?

use of neutral language

Which of the following is an important part of an organizational culture?

values

Why are managers reluctant to engage in the discovery process?

. They fear uncovering misconduct could harm the firm's reputation.

Five Primary Conflict Managment Style

1. Competing - win at any cost 2. Avoiding - avoiding conflict 3. Accommodating - can lead to compromising values 4. Compromising - each side receives part of what it wants 5. Collaborating - working together toward a beneficial solution

DFEI - accountability

Accept responsibility for all decisions

1996 Caremark Decision

Made it so directors can be held liable if they knew laws were being broken Incentivized internal compliance protocols

What is a downside to being a variable-sum leader?

They might give in to employees making unethical decisions.

Types of Organizational Cultures (and Examples)

Apathetic - minimal concern for people (Countrywide) Caring - high concern for people, less for performance (Zappos) Exacting - high concern for performance, less for people (FedEx) Integrative - High concern for people and performance (New Belgium)

Why might listening be just as important as speaking for an ethical leader?

It can establish credibility and increase morale among employees.

What is a disadvantage of small group communication and decision making?

It can lead to excessive risk taking.

DFEI - transparency

Maintain open and truthful communications

What do zero-sum leaders believe?

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

Why is an organization characterized by workplace politics perceived negatively by employees?

Followers are rewarded based on whether they serve the leader's best interests.

An "ethical blind spot" refers to ___________________.

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

What is group polarization?

When the group moves toward a more extreme position than what each member would have done individually.

Why is external whistle blowing a serious decision?

Whistle blowers have been fired for reporting.

Which of the following is part of the discovery process?

assessment

DFEI - fairness

Engage in fair competition and create equitable and just relationships

In a rigid hierarchical organization, communication generally consists of ______________.

one-way communication

Ethical leaders should consider their employees to be ____________ in contributing to the firm's values.

partners

What should an employee do after discovering illegal conduct?

Immediately report to your immediate supervisor.

Why might ethical conflicts be important to an ethical culture?

Ethical conflicts can be used to identify ethical issues.

What might be true of leaders who adopt a competing style of conflict management?

They score high on assertiveness.

why do people make unethical decisions

poor moral education ignorance cognitive bias

RADAR Model

- Recognize - Avoid - Discover - Answer - Recover

Which situation demonstrates reciprocity?

In response to co-workers help making a deadline, you assist them with a similar crisis

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

Leaders might allow unethical employees to continue their misconduct.

Why are leaders important even in a democratic organization?

Leaders often make the final call on major decisions.

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

power differentials

Creating a culture of doing the right thing

- Find the company purpose - Set and communicate principles - Leaders commit and remain accountable - Give employees ways to express concerns - hire for character, evaluate on character - reward for adherence to principles - measure culture w/ surveys and interviews - invest in employees

DFEI - integrity

Act with honesty in all situations

How should ethical leaders manage their employees?

Demonstrate ethical values through role modeling

mission of northwestern mutual

Inspiring people to align their actions with intentions to enjoy financially secure lives

This approach emphasizes obedience to legal requirements.

compliance-based approach

Good communication skills __________.

promote leader-follower congruence

An effective team should possess which characteristic?

diversity

An effective ethics program should show _____________________.

intolerance of misconduct

According to the information shared in this section, ________ might provide a solution to a disagreement, but it is unlikely that both parties will be happy with the decision.

litigation

Which of the following is important in catching misconduct internally before it becomes a major issue?

Employee feedback

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

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

To help prevent misconduct, ethical leaders should:

Develop and manage systems to maintain an ethical culture

What do all effective ethical leaders share in common?

Good communication skills

What is a necessary component of an ethical corporate culture?

an ethics program

Which of the following factors impact the length of time it takes for companies to recover from ethical misconduct?

ALl: C. How the company responds after discovering the misconduct D. How stakeholders perceive the company's response E. The length of time it takes for the company to resolve the issues

What is the definition of an ethics audit?

An investigation into the ethical climate of the firm

What actions can teams take to aid in the ethical decision making process?

Collectively look for ethical solutions or alternatives

Compliance profession

Has seen a recent increase in companies due to regulations from scandals throughout the late 20th century

Giving Voice to Values

If i were going to act on my values, what would I say and do and how could I be most effective? Seven Pillars - Values - Choice - Normalization - Purpose - Self-Knowledge Alignment - Voice - Reasons and Rationalizations

Why is the mixed-motive conflict management style considered to be the most effective?

It bases decisions on the goals and values of the firm.

Which statement is true about employee feedback?

It helps leaders identify the firm's strengths and weaknesses

Why would organizations prefer that employees provide their personal information when making reports?

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

__________ occurs when ethical leaders observe and identify ethical risk areas.

Recognizing

What is organizational ethics?

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

How might a comprehensive code of conduct prove ineffective in curbing misconduct?

The code of conduct is not effectively communicated to employees.

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

Their tendency to be socially isolated from employees

Which of the following statements is true regarding organizational conflict?

Conflicts provide an opportunity to listen to the other party's viewpoints.

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.

Which statement best describes how autocratic leaders communicate?

They limit communication to need-to-know information.

According to Ethics Consultant, David Gebler, most unethical behavior is committed ______________.

To meet performance goals

When might a zero-sum conflict approach be necessary?

When compromise would break a law.

In order to promote an open communication culture, leaders should ____________________.

adopt more of a democratic process toward ethical decision making

Ethical Decision Making Process

1. Identify the Issue 2. Determine relevant facts 3. Identify relevant stakeholders 4. Evaluate with ethical philosophies 5. Arrive at the ethical solution

What does an effective ethics program require?

Support from top management and frequent communication with employees.

Which characteristic best describes a mixed-motive approach to handling conflict?

collaborating