MGT-3110 Midterm
An "ethical blind spot" refers to ___________________.
A person's underestimation of his or her own potential to commit misconduct
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 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
While these leaders do not necessarily commit misconduct, they care little for ethics in the company
Apathetic Leaders
Authentic leadership is characterized by leaders who _______________________________
Are passionate about company goals, displaying corporate values in the workplace, and from long-term relationships with stakeholders
Which statement is true about a compliance orientation and a values-based orientation within a company?
Both orientations can increase ethical awareness among employees
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
An Enron, the lowest 20 percent of performers were systematically fired. This could be an example of __________
Coercive Power
What is one of the biggest ethical risks that companies face?
Complacency
Which word best describes a compliance orientation?
Contractual
What is one way that ethical leaders can empower employees?
Creating an open communication environment.
Fairness/Justice Approach
Does action treat everyone same way, or does it show favoritism and discrimination
Employees disagreeing about the most ethical decision, for resolving an ethical dilemma, is an example of:
Ethical Diversity
Virtue Approach
Ethical actions "what kind of person will I become if I do that"
What is true about how ethical leaders should perceive stakeholders?
Ethical leaders view stakeholders as important co-contributors of firm value.
If Steve Jobs was admired for his knowledge of Apple products, he displayed _________
Expert Power
Legitimate Leader
Followers believe an individual has the right to have authority over them
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.
Principle Approach
General normative standard of conduct - golden rule
What is the definition of ethical issue intensity?
How important an ethical issue is perceived to be by a company or individual
Rights Approach
Individuals right to choose for him/herself
Which definition best describes organizational ethical leadership
Influencing others to ethically achieve company goals.
Why is shared leadership important?
It establishes checks and balances on every member of the organization
According to Howard Schultz, which of the following is true about ethical leadership?
It is about finding a way to balance between profitability & social consciousness
What is the purpose of a code of ethics?
It provides guidelines to help employees recognize and resolve ethical issues.
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
Core practices are ____________________________________
Not legally mandated but are considered best practices of the industry
Referent Leader
Occurs when a follower admires and identifies with a leader
Which of these is the least likely to influence an individual's personal ethics?
Regulatory guidance
Which of these stakeholders is a secondary stakeholder?
Special-interest groups
Describe leader-follower congruence
The ability to identify and work with the leader to achieve common ethical objectives
Why would it be a mistake to ignore secondary stakeholders?
They can be an ally or a threat to an organization
What similarity do they share that contributes to their firm's ethical cultures?
They have the ability to align employees behind a common vision.
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
Which of the following statements is true about ethics?
Unethical conduct is not always black and white.
What is the definition of groupthink?
When people in a group go along with the group decision.
Utilitarian Approach
action that provides the most good and does the least harm
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
As a company that places employee well-being over company performance, Zappos displays a _________ culture.
caring
This approach emphasizes obedience to legal requirements.
compliance-based approach
Which of the following information does an ethics audit try to collect?
employees' perception of the firm's ethical culture
While ________ cultures do not necessarily ignore employee well-being, they tend to emphasize company performance first.
exacting
Expert Leader
expertise allows a person to influence others
Coercive Leader
influencing through threats of punishment
Principles, values, _______, and ________ form an organizational culture.
norms ; artifacts
Reward Leader
offers rewards for desired behavior
An ethics officer can do little good without ____________________
support form top management
While principles are more _________ in nature, values are more __________ and tend to be enforced by society.
universal; subjective
What likely contributed to the flawed corporate culture at Countrywide Financial?
A flawed incentive system
A transactional leader _____________________________
Tries to create employee satisfaction by negotiating for level of performance.
Those with an internal locus of control believe __________
they have control over events in their lives
Unlike an ethical issue, in an ethical dilemma _____________.
All the decisions have negative consequences
Which statement is true about the ethical decision-making of leaders?
Ethical leaders must often make trade-offs regarding stakeholder demands
What is organizational ethics?
Right or wrong, acceptable or unacceptable conduct in an organizational environment
What is the fate of ethically-challenged CEOs?
They often face reputational damage.
Emininent Domain
ability of gov to take/buy property for school, roads, etc.
