Deck 5: Ethics As Organizational Culture

Question 1

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.

Answer 1

True

Question 2

Reference: Matching Key Terms and Definitions
a) Heroes
b) Norms
c) Rituals
d) Myths
Symbolically tells employees what the organization wants them to do and how it expects them to do it.

Answer 2

c

Question 3

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

Answer 3

True

Question 4

Given that executive leaders are part of formal structure, they affect culture in a formal way whereas non-executive members affect culture in an informal way.

Question 5

To complete the ethical leadership picture, executives must also act as "moral managers"- they must focus on the "leadership" part of the term ethical leadership by making ethics and values an important part of their leadership message and by shaping the firm's ethical culture.

Question 6

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

Question 7

Research has found that executive ethical leadership is critical to investors but not the employees.

Question 8

Organization cultures are maintained through formal systems alone.

Question 9

An ethical culture is maintained through alignment between the formal and informal systems.

Question 10

Reference : Matching Key Terms and Definitions
a) Strong organizational culture
b) Weak organizational culture
c) Socialization (or enculturation)
Standards and guidelines that are known and widely shared by all.

Question 11

Reference: Matching Key Terms and Definitions
a) Heroes
b) Norms
c) Rituals
d) Myths
Anecdotes about a sequence of events drawn from an organization's history.

Question 12

In a strong organizational culture, strong subcultures exist and guide behavior that differs from one subculture to another.

Question 13

Reference: Matching Key Terms and Definitions
a) Heroes
b) Norms
c) Rituals
d) Myths
Symbolic figures who set standards of performance by modeling certain behaviors.

Question 14

Organization cultures vary widely, even within the same industry.

Question 15

Once employees are on board, organizations can aim to guide employees' behavior through formal organizational value statements, mission statements, credos, policies, and formal codes of ethical conduct.

Question 16

Unethical leaders can just as negatively affect the culture of a company as ethical leaders can affect the ethical culture.

Question 17

Reference : Matching Key Terms and Definitions
a) Strong organizational culture
b) Weak organizational culture
c) Socialization (or enculturation)
Process promoted through formal and informal transmission of norms.

Question 18

Reference: Matching Key Terms and Definitions
a) Heroes
b) Norms
c) Rituals
d) Myths
Standards of behavior that are accepted as appropriate by members of a group.

Question 19

Reference : Matching Key Terms and Definitions
a) Strong organizational culture
b) Weak organizational culture
c) Socialization (or enculturation)
Subcultures within divisions or departments that are more likely to guide behavior.

Question 20

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

Question 21

At Global Coffee, which of the following would informally contribute to creating and maintaining ethical culture?

A) Policies/codes
B) Rituals
C) Orientation/training
D) Decision processes

Question 22

At Entertainments R Us International, new employees learn "the ropes" through formal training and mentoring, as well as through more informal transmission of norms of daily behavior by peers and superiors. This process of "learning the ropes" is referred to as _______.

A) socialization
B) myth-based culture
C) ritually-rich culture
D) weak culture

Question 23

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

Question 24

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

Question 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

Question 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.

Question 27

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.

Question 28

Which of these is NOT a part of formal system in an organization?

A) Performance management
B) Selection system
C) Language
D) Decision processes

Question 29

Most people, according to cognitive moral development, are looking outside of themselves for guidance on decision-making. This means that stated organizational policy can be an important source of guidance foe employees in making decisions.

Question 30

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.

Question 31

Which term defines a body of learned beliefs, traditions, and guides for behavior shared among members of a group?

A) Culture
B) Ethics
C) Norms
D) Rituals

Question 32

At ABC Manufacturing, standards and guidelines are widely shared within the organization, providing a shared sense of who we are and "how we do things around here" and a common direction for day‐to‐day behavior. This is an example of which of these?

A) Moral culture
B) Hypocritical culture
C) Strong culture
D) Weak culture

Question 33

At We Care International, which of the following would formally contribute to creating and maintaining ethical culture?

A) Norms
B) Rituals
C) Language
D) Decision processes

Question 34

With _______, individuals have adopted the external cultural standards as their own. Their behavior, though consistent with the culture, also accords with their own beliefs.

A) socialization
B) myth-based culture
C) authority-based structure
D) internalization

Question 35

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

Question 36

The organization's formal decision‐making processes are an important part of the ethical culture.

Question 37

The only way to determine if the culture is aligned to support ethical behavior is to conduct regular, comprehensive audits of all relevant cultural systems, both formal and informal.

Question 38

At Garden Tools International, strong subcultures exist and guide behavior that differs from one subculture to another. This is an example of which of these?

A) Moral culture
B) Hypocritical culture
C) Strong culture
D) Weak culture

Question 39

Today, with advances in technology, very few modern organizations are bureaucratic.

Question 40

Which of these is NOT a part of informal system in an organization?

A) Norms
B) Rituals
C) Language
D) Decision processes

Question 41

When an organization "cares" about multiple stakeholders, including employees, customers, and the broader community and public, it is said to have which of these?

A) Benevolence climate
B) Self-interest climate
C) Rule-based climate
D) Fairness climate

Question 42

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

Question 43

"The way we do things around here" addresses an organization's

A) heroes.
B) rituals.
C) norms.
D) myths.

Question 44

At Baby Toys, Susan is a top level executive who does not provide explicit leadership in the crucial area of ethics. She is perceived to be silent on this issue, and employees aren't sure what she thinks about ethics, if anything. Susan would be described as a(n) _______.

A) unethical leader
B) ethical leader
C) ethically neutral leader
D) hypocritical leader

Question 45

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

Question 46

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.

Question 47

Briefly describe what is meant by alignment of ethical culture. Provide an example of how an ethical culture might be misaligned.

Question 48

______ are symbolic figures who set standards of performance by modeling certain behaviors, and they can be the organization's formal leaders.

A) Heroes
B) First-line managers
C) Large investors in an organization
D) Hypocritical leader

Question 49

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

Question 50

At TradeTools, James is a top level executive who can be described as someone who doesn't "walk the talk" but follows a "do as I say, not as I do" approach. James would be described as a(n) _______.

A) unethical leader
B) ethical leader
C) ethically neutral leader
D) hypocritical leader

Question 51

Under which of these climates little attention is given to the social consequences of one's actions?

A) Benevolence climate
B) Self-interest climate
C) Rule-based climate
D) Fairness climate

Question 52

_____ tell people symbolically what the organization wants them to do and how it expects them to do it.

A) Heroes
B) Myths
C) Norms
D) Rituals

Question 53

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.