Chapter 5

It is sufficient for executive leaders to be ethical persons and make ethical decisions. Employees do as they see. True/False?

Ans. False Response: See page 166. Students are likely to say True. The point of this question is that executives must lead on the question of ethics IF their commitment to an ethical culture is to register with employees.

An ethical culture is maintained through alignment between the formal and informal systems. True/False?

Ans.: True Response: See page 153

A 2006 study found that 82 percent of Americans would prefer to be paid less but work for an ethical company than be paid more and work for an unethical company. True/False?

Ans.: True Response: See page 155

Cognitive moral development tells us that most people are looking outside of themselves for guidance on decision-making. This means that stated organizational policy can be an important source of guidance for employees in making decisions. True/False?

Ans.: True Response: See page 171

Alignment of the goals and rewards of an organization with the organization's values is essential because employees will generally do what is measured and rewarded. True/False?

Ans.: True Response: See page 174

Organization cultures are maintained through formal systems alone. True/False?

Ans: False Response: See page 153.

Loyalty is paramount in business and employees who question unethical direction or an unethical boss are doomed. True/False?

Ans: False Response: See page 176

Given the less hierarchical organizational structures that are more common place today, it is less important for to have strongly aligned ethical culture to guide employees in their independent decision-making. True/False?

Ans: False Response: See page 177

Describing the decision-making process in the language of ethics does not help individuals make more ethical decisions. True/False?

Ans: False Response: See page 186.

Because common ethical problems exist across virtually all organizations, formal programs designed for ethics work well as "one size fits all." True/False?

Ans: False Response: See page 192.

Companies that look for advice from consultants will do well to find a "spray and pray" plan. True/False?

Ans: False Response: See page 192.

Organization cultures vary widely, even within the same industry. True/False?

Ans: True Response: See page 151.

The US Sentencing Guidelines call for more attention to developing and maintaining the ethical culture of the organization. True/False?

Ans: True Response: See page 156

Unethical leaders can just as negatively affect the culture of a company as ethical leaders can affect the ethical culture. True/False?

Ans: True Response: See page 161

An ethically neutral leader is not clearly unethical, but is perceived to be more self-centered and more focused on the bottom line. True/False?

Ans: True Response: See page 163

Research has found that employees working in organizations with an enforced code of ethics report that they engage in less unethical behavior. True/False?

Ans: True Response: See page 170

The more a firm demands unquestioning obedience to authority, the more likely the firm will experience higher levels of unethical conduct among their employees. True/False?

Ans: True Response: See page 176.

Standards and guidelines that are known and widely shared by all. a) Strong organizational culture b) Weak organizational culture c) Socialization (or enculturation)

Ans: a Response: See page 151.

26. Weak organizational cultures are: a) desirable if an organization has many subcultures. b) desirable if an organization wants diversity of thought and action. c) desirable if an organization wants behavioral consistency. d) undesirable in all situations.

Ans: b Response: See page 152.

Subcultures within divisions or departments that are more likely to guide behavior. a) Strong organizational culture b) Weak organizational culture c) Socialization (or enculturation)

Ans: b Response: See page 152.

Symbolic figures who set standards of performance by modeling certain behaviors

Heroes Response: See page 181.

Symbolically tells employees what the organization wants them to do and how it expects them to do it.

Rituals Response: See page 182.

27. The "moral person" component of ethical leadership: a) Tells employees how the leader expects them to behave. b) Tells employees how the leader is likely to behave. c) Shows that ethics and values are an important part of the leader's message. d) Demonstrates a reputation for ethical leadership among employees.

Ans: b Response: See page 159

29. According to the Executive Ethical Leadership Reputation Matrix, ___________ is an executive characterized as a strong "moral person" and a strong "moral manager." a) Unethical leader b) Ethical leader c) Ethically neutral leader d) Hypocritical leader

Ans: b Response: See pages 159-160.

Which of the following is false? a) Any attempt to change an organization's ethics must consider the entire cultural system. b) A cultural system includes both formal and informal systems. c) An effective culture change may take as long as 1 to 2 years. d) New rules and values must be reinforced via training programs and reward systems.

Ans: c Response: Culture changes are not short-term and may take as much as 6 to 15 years. See page 194.

Process promoted through formal and informal transmission of norms. a) Strong organizational culture b) Weak organizational culture c) Socialization (or enculturation)

Ans: c Response: See page 152.

25. Why did the US Sentencing Commission begin to focus on the ethical culture of the organization in 2004? a) Researchers had just recently introduced the idea of an "ethical culture" in 2002. b) More and more consultants were discussing "ethical culture" in their programs. c) Prior to the change, organizations used formal programs as "window dressing". d) None of the above

Ans: c Response: See page 156.

28. According to the Executive Ethical Leadership Reputation Matrix, ___________ is an executive characterized as a weak "moral person" and a strong "moral manager." a) Unethical leader b) Ethical leader c) Ethically neutral leader d) Hypocritical leader

Ans: d Response: See pages 162-163.

Briefly describe and provide examples of three steps involved in changing an organization's culture.

Changing an organization's culture is a multi-dimensional process that must be taken seriously. The major steps include a detailed diagnosis of the current culture, implementation of the new plan, and evaluation after the plan is in motion. The implementation of the plan is probably the most difficult step because it involves the "art" of changing the informal systems as well as the informal systems.

Anecdotes about a sequence of events drawn from an organization's history.

Myths Response: See page 183.

Standards of behavior that are accepted as appropriate by members of a group.

Norms