Business Ethics Midterm Exam
What contributed to a flawed culture at Countrywide Financial?
A flawed incentive system
Similarity they share contributes to their firm's ethical cultures?
Ability to align employees behind a common vision
J. P. Morgan CEO James Dimon's reaction to a crisis, what is a good way to manage a crisis?
Act quickly and take responsibility for the issues
What constitutes a conflict of interest?
Best interests of an individual are placed above the best interests of the company
Zappos CEO leadership style?
Charismatic Leadership
One of the biggest ethical risks that companies face?
Compliance
Benefits of ethical leadership?
Employees are more willing to work for ethical companies
Employees disagreeing about an ethical decision, resolving an ethical dilemma is an example of:
Ethical Diversity
Ethical decision-making of leaders?
Ethical leaders must often take trade-offs regarding stakeholder demands
Steve jobs had:
Expert Power
True about ethical leadership (Howard Schultz)
Finding a way between profit and social consciousness
First step organizations must take to meet needs of stakeholders?
Gather data on the company's stakeholders
What is not a mistake that 5 ethically challenged CEOs?
Giving employees more decision-making authority
Difference between 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 sorely on an individual's personal ethics?
Individual personal values differ significantly and can result in unethical conduct
Organizational Ethical Leadership
Influencing others to ethically achieve company goals
"just following orders" reflects on what part of the leader?
Legitimate power
Fate of ethically-challenged CEOs?
Often face computational damage
Least likely to influence an individual's personal ethics?
Regulatory guidance
Organizational Ethics
Right or Wrong, acceptable or unacceptable conduct in an organizational environment
A values orientation should possess
Strong communication systems
Why would it be a mistake to ignore secondary stakeholders?
They can be an ally or a threat to an organization
What tends to be the most observed misconduct in the workplace?
Time theft
SAM WALTON THE FOUNDER OF WALMART IS A
Transformational leader
Ethics
Unethical conduct is not always black and white
an "ethical blind spot" refers to ________
a person's underestimation of his or her own potential to commit misconduct
Unlike ethical issue, in an ethical dilemma _________
all the decisions have negative consequences
Compliance orientation and values-based orientation
both orientations can increase ethical awareness among employees
Enron, lowest 20 percent of performers were systematically fired:
coercive power
True about aftermath of financial crisis
consumer trust of business hit a low point
Which word best describes a compliance orientation?
contractual
One way ethical leaders can empower employees?
create open communication environment
About to influence of ethical decision making factors in an organization?
employee decision making is often affected more by organizational relationships
Expert Power
followers are able to trust the leader's expertise and credibility
Ethics mistake actually improve an organization in the long run?
give a firm an opportunity to learn from mistakes
Definition of Ethical Issue Intensity
how important an ethical issue is perceived to be by a company or individual
Ethical Issue
identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical
How should ethical leaders perceive stakeholders?
leaders view stakeholders as important co-contributors of firm value
Organizations that reward high performance without considering how results were achieved are:
more likely to have employees engage in unethical behavior
Authentic leadership is
people who are passionate about company goals, display corporate values in the workplace, and long-term relationships with stakeholders
True about ethical leaders?
place company interests above their own
Why are principles and values so important to companies?
provide guidance in making ethical decisions
Leaders who display good character______________
take responsibility for ethically meeting stakeholder needs
Those with an internal locus of control believe____
they have control over events in their lives
A transactional leader _______
tries to create employee satisfaction by negotiating for levels of performance
While principles are more _____ in nature, values are more ________ and tend to be enforced by society
universal; subjective
Def. of group-think
when people in a group go along with the group decision
How should companies approach principles?
zero tolerance for employees to violate them
Which of these stakeholders is a secondary stakeholder?
Special-Interest Groups