Ethics Exam

Which statement about organizational ethical role models is true?

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

What are the benefits of ethical leadership?

Employees are more willing to work for ethical companies.

What is the purpose of a code of ethics?

It provides guidelines to help employees recognize and resolve ethical issues.

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.

Which of these stakeholders is a secondary stakeholder?

Special-interest groups

What is a necessary component of an ethical corporate culture?

an ethics program

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

collaborating

This approach emphasizes obedience to legal requirements.

compliance-based approach

An ethical leader with good interpersonal communication skills should ____________.

demonstrate both respect and firmness in communication

Which of the following information does an ethics audit try to collect?

employees' perception of the firm's ethical culture

Ethical leaders must ____________ ethical issues and risks.

identify

Principles, values, _______, and ________ form an organizational culture.

norms; artifacts

A values orientation should possess _________________.

strong communication systems

An ethics officer can do little good without _____________________.

support from top management and board members

What likely contributed to the flawed corporate culture at Countrywide Financial?

A flawed incentive system

What is a characteristic of an ethical leader?

They have a passion to do the right thing

What is group polarization?

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

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

It can lead to excessive risk taking.

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 does an effective ethics program require?

Support from top management and frequent communication with employees

Describe leader-follower congruence.

The ability to identify and work with the leader to achieve common ethical objectives

What similarity do they share that contributes to their firm's ethical cultures?

They have the ability to align employees behind a common vision.

Those with an internal locus of control believe __________.

they have control over events in their lives

Based on observations of 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.

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

All three answer options impact the length of time it takes for companies to recover

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

What is the definition of an ethics audit?

An investigation into the ethical climate of the firm

Which of the following statements is true regarding organizational conflict?

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

Which statement is true regarding the aftermath of the financial crisis

Consumer trust of business hit a low point.

What is one way that ethical leaders can empower employees?

Creating an open communication environment.

How should ethical leaders manage their employees?

Demonstrate ethical values through role modeling

What is true about ethical leaders?

Ethical leaders place company interests above their own.

What is true about how ethical leaders should perceive stakeholders?

Ethical leaders view stakeholders as important co-contributors of firm value.

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 and credibility.

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.

Which statement best describes codes of ethics?

Formal statements describing what an organization expects of its employees

What is the first step organizations must take to meet the needs of their stakeholders?

Gather data on the company's stakeholders.

Which situation demonstrates reciprocity?

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

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.

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.

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

Power differentials

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

The code of conduct is not effectively communicated to employees.

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.

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

They score high on assertiveness.

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

Values

When might a zero-sum conflict approach be necessary?

When compromise would break a law.

An "ethical blind spot" refers to ___________________.

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

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

adopt more of a democratic process toward ethical decision making

Unlike an ethical issue, in an ethical dilemma _____________.

all the decisions have negative consequences

What does mediation involve?

an objective third party helps two parties settle their differences

Countrywide Financial did not appear to care for employees' well-being or the long-term well-being of the firm. It can best be described as having a(n) __________ culture.

apathetic

While these leaders do not necessarily commit misconduct, they care little for ethics in the company.

apathetic leaders

As a company that places employee well-being over company performance, Zappos displays a _________ culture.

caring

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

ethical complacency

While ________ cultures do not necessarily ignore employee well-being, they tend to emphasize company performance first.

exacting

What is the first step toward making an ethical decision?

identifying the ethical issue

An effective ethics program should show _____________________.

intolerance of misconduct

Training employees in leadership techniques _________________.

is a form of employee empowerment

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

legitimate

Core practices are ____________________________________.

not legally mandated but are considered best practices of the industry.

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

partners

Good communication skills __________.

promote leader-follower congruence

Which of the following is a step companies take in the recovery process?

reinforcing the firm's reputation with positive messages

Leaders who display good character________________________

take responsibility for ethically meeting stakeholder needs.

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

If Steve Jobs was admired for his knowledge of Apple products, he displayed _________.

Expert power

Why are hotlines useful in a firm?

Because they allow the caller to remain anonymous.

Which statement is true about a compliance orientation and a values-based orientation within a company?

Both orientations can increase ethical awareness among employees.

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

Bring the discussion back to the core issues

Which statement is true about the ethical decision-making of leaders?

Ethical leaders must often make trade-offs regarding stakeholder demands.

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

It can establish credibility and increase morale among employees.

What constitutes a conflict of interest?

The best interests of an individual are placed above the best interests of the company.

What is one of the biggest ethical risks that companies face?

Complacency

What is true about the influence of ethical decision making factors in an organization?

Employee decision making is often affected more by organizational relationships.

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

Employee feedback

In this section, ___________ was identified as the best way to identify misconduct in an organization.

Employee reporting

Why might ethical conflicts be important to an ethical culture?

Ethical conflicts can be used to identify ethical issues.

What should an employee do after discovering illegal conduct?

Immediately report to your immediate supervisor.

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

Internal reporting is perceived to be ineffective.

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.

Why is shared leadership important?

It establishes checks and balances on every member of the organization.

Which statement is true about employee feedback?

It helps leaders identify the firm's strengths and weaknesses.

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

You can communicate organizational principles and values.

Which of the following is part of the discovery process?

assessment

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

____________ 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

Which of the following statements about nonverbal communication is false?

It is less trustworthy than verbal communication.

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

Leaders might allow unethical employees to continue their misconduct.

Based on our definition, how should companies approach principles?

There should be zero tolerance for employees to violate them.

Why are leaders important even in a democratic organization?

Leaders often make the final call on major decisions.

Authentic leadership is characterized by leaders who _______________________________.

are passionate about company goals, display corporate values in the workplace, and form long-term relationships with stakeholders

How can ethical leaders increase employee empowerment?

Make discussions about ethics commonplace.

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

Each side has to give something up.

Which of the following is true about dissent in organizations?

Ethical cultures are likely to have strong internal dissent mechanisms.

Employees disagreeing about the most ethical decision, for resolving an ethical dilemma, is an example of:

Ethical diversity

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 do all effective ethical leaders share in common?

Good communication skills

What is the definition of ethical issue intensity?

How important an ethical issue is perceived to be by a company or individual

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

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

What do zero-sum leaders believe?

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

Why would it be a mistake to ignore secondary stakeholders?

They can be an ally or a threat to an organization.

Why are managers reluctant to engage in the discovery process?

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

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

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

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

one-way communication

Which statement best describes how autocratic leaders communicate?

They limit communication to need-to-know information.

Why are principles and 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

An effective team should possess which characteristic?

Diversity

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

They might give in to employees making unethical decisions.

Why might a company not want to investigate reports of misconduct?

An investigation is often time-consuming and expensive.

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

Coercive leadership

An Enron, the lowest 20 percent of performers were systematically fired. This could be an example of __________.

Coercive power

To help prevent misconduct, ethical leaders should:

Develop and manage systems to maintain an ethical culture

Which of the following differentiates ethical leaders from less ethical leaders?

How they respond to mistakes

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

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

Describe the purpose of ethics training.

It allows employees to prepare themselves for issues they might encounter in the workplace.

Organizations that reward high performance without considering how the results were achieved are:

More likely to have employees engage in unethical behavior

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

Recognizing

What is the fate of ethically-challenged CEOs?

They often face reputational damage.

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

To meet performance goals

What is the definition of groupthink?

When people in a group go along with the group decision.

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

objectivity

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

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

Collectively look for ethical solutions or alternatives

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

use of neutral language

Why is external whistle blowing a serious decision?

Whistle blowers have been fired for reporting.

Which word best describes a compliance orientation?

Contractual