Chapter 6

Derek uses the company car for his personal trips, as he feels his position permits him to use it whenever he wishes.

Entitlement

Though Sam was under pressure to manipulate company data, he refused to do so because he claims he is honest.

Integrity

A leader who practices fairness would ________ . not hesitate to overcharge his expense account because he works hard for his employer tweak the productivity figures of his team so that he makes a good impression on upper management avoid playing favorites with his group and treat all members equally feel it is acceptable to ignore team members who are underperforming because his superiors have not complained about them

avoid playing favorites with his group and treat all members equally

Michelle, an auditor, firmly believes in honesty and always presents the real findings of auditing processes assigned to her. She continues to be honest despite pressures from her superiors to manipulate results. Which ethical characteristic does Michelle possess? a. Integrity b. Capability c. Entitlement d. Rationalization

a. Integrity

Several terms are associated with ethical and moral leadership in the business community. _____ are accepted guidelines or behaviors for groups or institutions. AN individual's determination of right and wrong refers to one's _____, which are influenced by ______ such as fairness or honesty.

1. ethics 2. morals 3. values

Leaders who perceive themselves as highly ethical and moral are likely to focus on ________ . maximizing personal gains at the expense of others treating all interested parties affected by their decisions fairly developing a sense of entitlement to the perks of their position creating winners and losers after many decisions are made

treating all interested parties affected by their decisions fairly

When he suspects his coworkers of insider trading, Mike reports his company to the Securities and Exchange Commission, a federal authority.

Whistleblowing

Briana studies how individuals make decisions based on their moral obligations.

Ethics

As part of external engagement, _____ refers to the efforts a company makes to manage its relationship with the external world. It is the idea that firms have obligations to society and can involve the use of market-based methods to solve social problems. For example, the leaders at Weston Constructors founded Homes and Hearths, a foundation to rebuild homes that were lost in natural disasters. Thus, Weston Constructors is engaged in _____; ethically and socially responsible behavior can lead to benefits for a company, including financial gain. The relationship between social and financial performance may be a _____, meaning that corporate social performance and corporate financial performance feed and reinforce each other.

1. corporate social responsibility 2. social entrepreneurship 3. virtuous circle

A leader at the post-conventional level of moral behavior would be concerned with doing the most good for the most people, without regard for whether such behavior brought him or her recognition and fortune. Which of the following examples most likely represents a leader at the post-conventional level of moral behaviour? A resentful employee who is willing to share confidential information about his employer to outsiders and competitors A manager who freely takes credit for a subordinate's idea A senior manager who thinks it is justified to ask group members to run errands for him, such as getting his taxes filed correctly A group leader who takes time from writing an important report to coach a group member who needs help at the moment

A group leader who takes time from writing an important report to coach a group member who needs help at the moment

Joanne, a CEO, believes that retaining an ethical compass is vital to the success of her organization.

Ethical Mind

Which statement is true of corporate social responsibility? a. Company leaders should work with suppliers to improve physical and mental working conditions. b. Company leaders should impose severe penalties on whistle-blowers in order to remain ethical. c. Company leaders should focus on receiving external rewards and avoiding punishment. d. Company leaders should have a level of moral development that makes them look good.

a. Company leaders should work with suppliers to improve physical and mental working conditions.

George, a senior manager in a company, appears to be fair and reasonable when deciding on salary increases and bonuses for his employees. He tries to create an impression of being a good leader who cares for his employees. Which level of moral development is shown by George in the given example? a. Conventional level b. Preconventional level c. Post-conventional level d. Nonconventional level

a. Conventional level

Raphael, the CEO of the company, talks about the benefits offered by smartphones and tablet computers and also other outcomes of the advent of technology. As an individual with an ethical mind, which statement would be a cause of concern for you? a. Many car dealerships have laid off their instore sales reps because of the increase in Internet sales. b. The company, as an industrial leader, should play a role in getting people to use its products in a harmless manner. c. People are smarter, happier, and more productive because of the use of smartphones. d. Millions of users can access information at any time through the use of smartphones.

a. Many car dealerships have laid off their instore sales reps because of the increase in Internet sales.

Edward is the owner of a large food and beverage export company. As a social responsibility initiative, Edward decides to open a chain of convenience stores across the city. A portion of the revenue generated from these stores will be used to fund soup kitchens across the city. In this scenario, Edward is engaged in which type of initiative? a. Social entrepreneurship b. Conventional development c. Rationalization d. Philanthropy

a. Social entrepreneurship

Adam, a project coordinator at a non-profit organization, observes that funds granted to the organization by various sources are being misused by management. He feels it is unethical and reports the issue to the authorities. Which concept best describes Adam's actions? a. Whistleblowing b. Motivated blindness c. Entitlement d. Rationalization

a. Whistleblowing

Blue Pharma Inc., a large and profitable pharmaceutical company, invests in a number of social responsibility initiatives that increase the profitability of the company. What can be inferred from the given scenario? a. The relationship between social performance and profitability is always linear. b. Corporate social performance and corporate financial performance feed and reinforce each other. c. Social entrepreneurship is the only method of engaging in social responsibility initiatives. d. Corporate social responsibility is based on the "Thou Shalt Not" approach.

b. Corporate social performance and corporate financial performance feed and reinforce each other.

Craig, a businessman, obtains confidential information on one of his rival companies. The information, if misused, could possibly destroy his rivals. Craig considers what he would advise his son to do if he was in a similar situation. In the given scenario, Craig demonstrates which ethical principle or concept? a. Principle of rationalization b. Deontological principle of reversibility c. Universalist principle of disclosure d. Utilitarian notion of doing good for the greatest number of people

b. Deontological principle of reversibility

Derek talks about the negative outcomes of smartphone usage. As an ethical CEO, what would your next step be after listening to Derek? a. Terminate Derek from the position of marketing manager. b. Examine what can be done by the company in getting people to use its products in a harmless manner. c. Blame drivers using smartphones for accidents and deaths. d. Assume that local governments and Internet service providers have more responsibility for minimizing accidents caused by smartphone users.

b. Examine what can be done by the company in getting people to use its products in a harmless manner.

Which example illustrates whistleblowing? a. Nancy always thinks about how she can do the best for all her colleagues and society in general. b. Jacob reports questionable accounting practices in his company to a government officer. c. Angela feels that she is eligible to use company resources for personal purposes because of her seniority. d. Winston adheres to his principles and beliefs irrespective of pressures from his superiors.

b. Jacob reports questionable accounting practices in his company to a government officer.

Francis, a customer service executive, always greets his customers courteously and tries to make them as comfortable as possible. Which ethical leadership behavior is Francis exhibiting? a. Paying attention to all stakeholders b. Respect for an individual c. Integrity in dealing with others d. Building community

b. Respect for an individual

Authentic leaders are like to display which characteristic? a. They tend to lay off valuable employees to reduce payroll costs. b. They have a deep commitment to their growth and also that of other stakeholders. c. They focus on the intent of an action rather than on the action itself. d. They are primarily concerned with receiving external rewards and avoiding punishment.

b. They have a deep commitment to their growth and also that of other stakeholders.

Robert, a manager, has to decide on promotions for his team members. Robert contemplates promoting one of his friends despite the team member's poor performance, but he decides against it because he feels it is unfair to his team. The question concerning the fairness of Robert's actions is based on which theory or principle? a. Deontological principle of reversibility b. Universalist principle of disclosure c. Deontological theory of justice d. Principle of rationalization

c. Deontological theory of justice

Brendon, the manager of a telemarketing team, asks his team members if they would consider a customer's inquiry about a product to be a sale. His evaluation of their responses as being ethical or unethical is likely to be based on which theory or principle? a. Utilitarian principles b. The deontological principle of reversibility c. Intuition and common sense d. An act of rationalization

c. Intuition and common sense

Which statement is true of developing an ethical mind? a. It requires a leader to focus on receiving external rewards and avoiding punishment. b. It requires employees to report wrongdoings of organizations to government officials to remain ethical. c. It begins with the belief that retaining an ethical compass is essential to the health of an organization. d. It involves focusing on the intent of an action rather than on the action itself.

c. It begins with the belief that retaining an ethical compass is essential to the health of an organization.

Sadie hires a new manager. In a couple of weeks, she receives reports that the new manager often plays favorites and does not act in a trustworthy manner. However, since Sadie was the one to hire the new manager, she overlooks these flaws because acknowledging them would reflect that she made a hiring mistake. In this scenario, Sadie's behavior reflects which concept? a. Integrity b. A sense of entitlement c. Motivated blindness d. A post-conventional level of moral development

c. Motivated blindness

Tilsiter Inc., a highly profitable industrial group with a large number of businesses, decides to start wastewater treatment plants in various locations as part of its social responsibility initiatives. The firm's management feels that this initiative would be highly profitable and also generate many employment opportunities. Which concept is illustrated in this scenario? a. Entitlement b. Rationalization c. Virtuous circle d. Preconventional development

c. Virtuous circle

After listening to Olivia and Derek, from the standpoint of corporate social responsibility and leadership ethics, what would be your next step as the company's CEO? a. Focus only on the positive aspects of the company's products. b. Blame drivers for accidents and deaths. c. Examine if there are ways to restrict technology availability to people. d. Engage in community programs to create awareness about the safe use of smartphones.

d. Engage in community programs to create awareness about the safe use of smartphones.

Adrian, the owner of a food product export company, must rebuild the image of the company because of unethical practices by some senior employees. These activities resulted in huge layoffs and loss of customers for the company. The trust of shareholders also deteriorated. Which action should Adrian avoid if he wants to make his company ethically and socially responsible? a. Create a pleasant workplace b. Engage in social entrepreneurship c. Have informal training sessions on ethical and social behaviors d. Impose penalties on whistle-blowers

d. Impose penalties on whistle-blowers

Which is an advantage of practicing high corporate social responsibility? a. Its encouragement of the practice of entitlement b. The focus on rationalization to reduce unethical activities c. Its practice of punishing whistle-blowers d. The ability to attract high-quality employees

d. The ability to attract high-quality employees