Question 1

In integrity-based ethics programs, organizational ethics is seen as the responsibility of the employees.

Accepted Answer

In integrity-based ethics programs, organizational ethics is seen as the responsibility of management.

Question 2

Research supports that there are many potential benefits of an ethical organization, including that there is a strong and consistent relationship between ethical performance and measures of financial performance.

Accepted Answer

Positive relationships generally have been found between ethical performance and strong organizational culture, increased employee efforts, lower turnover, higher organizational commitment, and enhanced social responsibility. Research has found somewhat inconsistent results concerning the overall relationship between ethical performance and measures of financial performance.

Question 3

Ethical crises are bad for organization reputation, but they rarely have any financial consequences.

Accepted Answer

Ethical crises can be very expensive, both in terms of financial costs and in the erosion of human capital and overall firm reputation. Merely adhering to the minimum regulatory standards may not be enough to remain competitive in a world that is becoming more socially conscious.

Question 4

There can be a high-integrity organization, without high-integrity individuals.

Accepted Answer

There cannot be high-integrity organizations without high-integrity individuals; however, individual integrity is rarely self-sustaining.

Question 5

Organizational ethics is the responsibility of top management only.

Accepted Answer

Most importantly, organizational ethics is seen as the responsibility of management. A corporate counsel may play a role in designing and implementing integrity strategies, but it is managers at all levels and across all functions who are involved in the process.

Question 6

An ethical organization is characterized by its concept of ethical values and integrity that is used to unify the organization across different functions, lines of business, and employee groups.

Accepted Answer

The ethical organization is characterized by a conception of ethical values and integrity as a driving force of the enterprise. Ethical values shape the search for opportunities, the design of organizational systems, and the decision-making process used by individuals and groups. They provide a common frame of reference that serves as a unifying force across different functions, lines of business, and employee groups. Organizational ethics helps to define what a company is and what it stands for.

Question 7

In the integrity-based approach to ethics management, social actors are guided by a combination of self-interest, ideals, values, and social expectations.

Accepted Answer

In the integrity-based approach to ethics management, the behavioral assumption is that social actors are guided by a combination of self-interest, ideals, values, and social expectations.

Question 8

There is little difference between the compliance-based and integrity-based ethics program.

Accepted Answer

Compliance-based ethics programs are about building ethical organizations that have the goal of preventing, detecting, and punishing legal violations. Integrity-based ethics programs are about building ethical organizations that combine a concern for law with an emphasis on managerial responsibility for ethical behavior, including (1) enabling ethical conduct; (2) examining organization and member core guiding values, thoughts, and actions; and (3) defining the responsibilities and aspirations that constitute the organization ethical compass.

Question 9

Methods used for ethics management in a compliance-based approach include education, reduced discretion, auditing and controls, and penalties.

Accepted Answer

Methods used for ethics management in a compliance-based approach include education, reduced discretion, auditing and controls, and penalties. These are based on the fear of punishment for doing something unlawful.

Question 10

Ethics is a question of personal scruples, a confidential matter between employees and their consciences and therefore for a leader it is acceptable to assume the company should not bear any responsibility for individual misdeeds.

Accepted Answer

Ethics is as much an organizational as a personal issue. Leaders who fail to provide proper leadership to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.

Question 11

A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior.

Accepted Answer

Integrity-based ethics programs combine a concern for law with an emphasis on managerial responsibility for ethical behavior. It is broader, deeper, and more demanding than a legal compliance initiative.

Question 12

Ethics has everything to do with leadership. The character flaw of a lone actor always completely explains corporate misconduct.

Accepted Answer

Ethics has everything to do with leadership. Seldom does the character flaw of a lone actor completely explain corporate misconduct. Instead, unethical business practices typically involve the tacit, if not explicit, cooperation of others and reflect the values, attitudes, and behavior patterns that define the operating culture of the organizations.

Question 13

In a compliance-based approach to ethics management, the objective is to enable responsible conduct.

Accepted Answer

In a compliance-based approach to ethics management, the objective is to prevent criminal misconduct.

Question 14

The ethical orientation of a leader greatly affects the ethical orientation of the organization.

Accepted Answer

The ethical orientation of a leader is a key factor in promoting ethical behavior. Ethical leaders must take personal, ethical responsibility for their actions and decision making. Leaders who exhibit high ethical standards become role models for others and raise an organization's overall level of ethical behavior. Ethical behavior must start with the leader before the employees can be expected to perform accordingly.

Question 15

According to Strategy Spotlight 11.6, the example of Alliant Energy of Iowa developed a successful green-energy program called Second Nature that demonstrates how companies can capitalize on consumer desire to be socially responsible.

Accepted Answer

Alliant Energy of Iowa established a program dubbed Second Nature. Customers were told that they would support the growth of earth-friendly green power created by wind and biomass. What actually happened? More than 56 percent of expenditures went to marketing and administrative costs, not green-energy development.

Question 16

In an integrity-based approach to ethics management, ethos is concerned with conformity with externally imposed standards.

Accepted Answer

Ethos, in an integrity-based approach to ethics management, is concerned with conformity with externally imposed standards.

Question 17

There are many advantages of an ethical organization, but it generally has little to do with employee commitment and motivation to excel.

Accepted Answer

The advantages of a strong ethical orientation can have a positive effect on employee commitment and motivation to excel. This is particularly important today in knowledge-intensive organizations, where human capital is critical in creating value and competitive advantages.

Question 18

In the integrity-based approach to ethics management, behavioral assumptions include that social beings are guided by material self-interest, values, ideals, and peers.

Accepted Answer

Integrity-based approaches to ethics management are driven by a personal and organizational commitment to ethical behavior.

Question 19

Greenwashing is a type of fraud in which companies make unsubstantiated claims about how environmentally friendly their products or services really are.

Accepted Answer

Many of the power companies that are offering eco-friendly options are falling short on delivering on them. Some utilities have simply gotten off to a slow start or found it difficult to profitably offer alternative power. Others, however, are suspected of committing a new type of fraud called greenwashing. This refers to companies that make unsubstantiated claims about how environmentally friendly their products or services really are.

Question 20

Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.

Accepted Answer