ELC Module 1
what is one of the biggest ethical risks that companies face?
complacency
What is the first step organizations must take to meet the needs of 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
Why would an organization not want to rely solely on an individual's personal ethics?
individual personal values differ significantly and can result in unethical conduct
Which definition best describes organizational ethical leadership
influencing others to ethically achieve company goals
which of these stakeholders is a secondary stakeholder?
special-interest groups
leaders who display good character__________________
take responsibility for ethically meeting stakeholder needs
what is the fate of ethically-challenged CEOs?
they often face reputational damage
which of the following differentiates ethical leaders from less ethical leaders?
how they respond to mistakes
Which of these is the least likely to influence an individual's personal ethics?
regulatory guidance
what likely contributed to the flawed corporate culture at Countrywide Financial?
a flawed incentive system
which statement is true regarding the aftermath of the financial crisis?
consumer trust of business hit a low point
according to Howard Schultz, which of the following is true about ethical leadership?
it is about finding a way to balance between profitability and social consciousness
What is organizational ethics?
right or wrong, acceptable or unacceptable conduct in an organizational environment
what constitutes a conflict of interest?
the best interests of an individual are placed above the best interests of the company
why would is be a mistake to ignore secondary stakeholders?
they can be an ally or threat to the organization
why might ethics mistakes actually improve an organization in the long-run?
they give the firm an opportunity to learn from its mistakes
what are the benefits of ethical leadership?
employees are more willing to work for ethical companies
based on observations of JP 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
which statement is true about the ethical decision-making of leaders?
ethical leaders must often make trade-offs regarding stockholder demands
what is true about ethical leaders?
ethical leaders place company interests above their own
what is one way that ethical leaders can empower employees?
creating an open communication environment
what is true about how ethical leaders should perceive stakeholders?
ethical leaders view stakeholders as important co-contributors of firm value
what similarity do ethical leaders share that contributes to their firm's ethical cultures?
they have the ability to align employees behind a common vision
Which of the following statements is true about ethics?
unethical conduct is not always black and white