Ethical Decision Making and Ethical Leadership Answer Key

Ethical Decision Making and Ethical Leadership MULTIPLE CHOICE 1. Which of the following is the first step in the ethical decision making process? a. Being socialized into the firm's corporate culture b. Applying a personal moral philosophy in order to individualize the ethical decision making process c. Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong d. Soliciting the opinions of others in a work group or in the overall business in order to gain feedback e. Enforcing the firm's ethical standards with rewards and punishment ANS: C 2. Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue? a. Educational attainment b. Workplace c. Family d. Legal system e. Community ANS: A 3. The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and selfcontrol. a. democratic b. coaching c. affiliative d. coercive e. pacesetting ANS: D 4. The perceived relevance or importance of an ethical issue to the individual, work group, or organization is a. organizational culture. b. immediate job context. c. ethical issue intensity. d. leadership. e. locus of control. ANS: C 5. Studies have found that more than a third of the unethical situations that lower and middle-level managers face come from _____. a. b. c. d. e. stakeholder expectations and pressures. pressures to satisfy customers. pressures from the government to perform at a high level. internal pressures and ambiguity surrounding internal organizational rules. investor expectations. ANS: D 6. According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior. a. reason b. significant other c. individual factor d. opportunity e. ethical issue intensity ANS: D 7. _____ have been found to decrease unethical practices and increase positive work behavior. a. High educational attainment levels b. High levels of community involvement c. Charismatic leaders d. Strong religious beliefs e. Good personal values ANS: E 8. _____ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace. a. Obedience to authority b. Locus of control c. Opportunity d. Transactional leadership e. Immediate job context ANS: A 9. Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _____ can alter this intent. a. cognitive dissonance b. familial expectations c. religious beliefs d. the desire for financial gain e. organizational or social forces ANS: E 10. A coaching leader builds a positive climate by a. valuing people, their emotions, and their needs. b. focusing on communication across all layers of the organization. c. inspiring employees to follow their departmental leaders without question. d. focusing on achievement, initiative, and self-control. e. developing skills for success, delegating responsibility, and issuing challenging assignments. ANS: E 11. If management fails to identify and educate employees about ethical problem areas, ethical issues may not reach the critical a. awareness level. b. aptitude level. c. ethical level. d. organizational level. e. individual level. ANS: A 12. The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization. a. corporate culture b. intentions of a corporate c. ethical issue awareness d. determination of a corporation e. individual factors ANS: A 13. Which of the following would not be considered a negative reinforcement of employee behavior? a. Demotions b. Firings c. Ignoring the behavior d. Reprimands e. Pay penalties ANS: C 14. Codes, rules, and compliance are essential in organizations. However, an organization built on _____ is more likely to develop a high integrity corporate culture. a. a charismatic leader b. the preferences of the CEO c. the grapevine d. formal relationships e. informal relationships ANS: E 15. Which of the following types of leaders attempts to create employee satisfaction through bartering or negotiating for desired behaviors or level of performance? a. Pacesetting leaders b. Coercive leaders c. Transactional leaders d. Transformational leaders e. Transmogrified leaders ANS: C 16. Following the ethical directives of a superior relates to a. an internal locus of control. b. obedience to authority. c. moral intensity. d. gender. e. ethical issue intensity. ANS: B 17. Which of the following is not a habit of ethical leaders? a. They are primarily concerned with themselves. b. They are proactive. c. They have a passion to do right. d. They are concerned with stakeholders' interests. e. They are role models for organizational values. ANS: A 18. Which of the following leadership types has a strong influence on coworker support and building an ethical culture through increasing employee commitment and fostering motivation? a. Transformational leaders b. Transactional leaders c. Coercive leaders d. Pacesetting leaders e. Authoritative leaders ANS: A 19. Which of the following is not considered a significant other group in the workplace? a. Peers b. Managers c. Spouses d. Coworkers e. Subordinates ANS: C 20. Studies have shown that _____ within the organization have more impact on a worker's decisions on a daily basis than any other factor. a. significant others b. religion c. education d. chief executive officers e. ethical issues ANS: A 21. External and internal rewards relate to which part of the ethical decision-making framework? a. Individual factors b. Significant others c. Cognitive moral development d. Obedience to authority e. Opportunity ANS: E 22. Which of the following is not a major trend in business today? a. More women in leadership positions b. Increasing tendency to use social responsibility as a means of recruiting c. Making it easier to work from home d. Employees’ awareness and understanding of global issues e. More isolationist businesses ANS: E 23. Which of the following is not an issue that helps in business ethics evaluations and decisions? a. Ethical issue intensity b. Individual factors c. Organizational factors d. Personal guilt e. Opportunity ANS: D 24. _____ is the first sign that an unethical decision has occurred. a. Guilt b. Reward c. Punishment d. Cognitive dissonance e. Happiness ANS: A 25. People who believe in _____, go with the flow because they feel the events in their lives are uncontrollable. a. ethical decision making b. internal locus of control c. an ethical culture d. external locus of control e. significant others. ANS: D 26. Which of the following is not an individual factor that affects business ethics? a. Nationality b. Age c. Religion d. Significant others e. Education ANS: D 27. _____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own. a. Oversight b. Significant others c. Organizational culture d. The ethical climate e. The legal climate ANS: C 28. Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking? a. Authoritative leadership b. Coaching leadership c. Pacesetting leadership d. Coercive leadership e. Affiliative leadership ANS: E 29. An ethical corporate culture needs _____ along with _____ to establish an ethics program and monitor the complex ethical decisions being made by employees . a. individual ethics; ethical issue intensity b. ethical issue intensity; ethics training c. organizational factors; individual factors d. employee evaluations; good intentions e. shared values; proper oversight ANS: E 30. Those who have influence in a work group are referred to as significant others and include a. peers, managers, coworkers, and subordinates. b. family members, peers, and coworkers. c. spouses and friends. d. employees in similar job situations. e. employees who hold the same job. ANS: A 31. Sherry's leadership style often creates a negative working climate because of the high standards she sets. Sherry is most likely a(n) _____ leader. a. b. c. d. e. autocratic democratic pacesetting empathetic coercive ANS: C 32. _____ are a primary influence on employee’s ethical behavior because they are role models for the organization’s values. a. Friends b. Parents c. Peers d. Coworkers e. Leaders ANS: E 33. As one of the seven habits of strong ethical leaders, _____ is “the glue that holds ethical concepts together.” This trait can be developed early in life or developed over time through experience. a. adequate compensation b. good employees c. the passion to do right d. charisma e. a great education ANS: C 34. The _____ leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take initiative. a. authoritative b. affiliative c. democratic d. coaching e. pacesetting ANS: E 35. Research concerning nationality and the ability to make ethical decisions a. shows no relationship between the two. b. is hard to interpret in a business context because of cultural differences. c. suggests that organizations should be very concerned about an employee's nationality. d. suggests that corporations pay a lot of attention to such research. e. suggests that the influence of nationality on corporate culture is growing. ANS: B 36. The relationship between business ethics and age a. shows a negative correlation. b. is simple. Greater experience leads to better ethical decision making. c. is complex, although experience helps older employees make ethical decisions. d. suggests that employees with less experience have a greater ability to deal with complex industry-specific ethical issues. e. does not demonstrate a statistically significant correlation. ANS: C 37. Employees that see themselves as going with the flow because that's all they can do have a(n) a. external locus of control. b. moral intensity c. obedience to authority d. opportunity e. internal locus of control. ANS: A 38. The _____ of an organization can influence the acceptance of, adherence to, transmittal, and monitoring of organizational norms, values, and codes of ethics. a. nation of origin b. locus of control c. leadership style d. production methods e. opportunity ANS: C 39. For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt? a. I need a paycheck and can't afford to quit right now. b. Those around me are doing it so why shouldn't I? c. If I don't do this, I might not be able to get a good reference from my boss when I leave. d. If I don't do this, I might never be promoted. e. This is in keeping with my personal morals and the code of conduct, so it is okay. ANS: E 40. Ethical leadership should be based on a. holistic thinking that embraces the complex issues facing firms every day. b. a strong shareholder desire for profits. c. the opinions of a leader who defines success in terms of group gratification. d. short-term thinking that looks at the firm’s health on a day-to-day basis. e. people who embrace a transactional style of leadership. ANS: A 41. A fundamental problem in traditional personal character development is that specific vales are used to teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be respected. A solution is a. to teach more general values to develop a set of basic beliefs. b. to ignore moral philosophies and to train solely based on the organization’s code of conduct. c. to teach completely different values and skills in different cultural environments. d. to teach individuals intellectual skills that address the complexities of ethical issues in business. e. to teach individuals the literary canons of the major philosophers from both western and eastern religions. ANS: D 42. Strong ethical leaders have a passion for all of the following except to a. do the right thing. b. be proactive c. consider stakeholder interests d. be role models for the organization and its employees. e. satisfy shareholders before other stakeholder groups. ANS: E 43. Leaders whose decisions and actions are contrary to the firm's values send a signal a. that the firm's values are trivial or irrelevant. b. that they are providing a good example of what not to do. c. that the firm's corporate culture is highly important. d. that they are working toward improving the ethical culture of the firm. e. that they care about the environment. ANS: A 44. Which attribute of ethical leaders will not be effective unless the leader is personally involved in the organization’s key ethical decisions? a. Stakeholder compassion b. Proactive leadership c. Transparency d. Moral philosophy e. Compensation ANS: C 45. Which type of leader relies on participation and teamwork to reach collaborative decisions? a. Transformational b. Coercive c. Democratic d. Coaching e. Pacesetting ANS: C 46. What is not a necessity for strong ethical leaders to make good decisions? a. Complete information b. Courage c. Experience making the right decisions d. Knowledge e. The ability to coerce subordinates