Question 1

The virtuous cycle in relation to social responsibility suggests that

Accepted Answer

The virtuous cycle in relation to social responsibility suggests that corporate social performance and corporate financial performance feed and reinforce each other. When a company demonstrates social responsibility, such as by adopting sustainable practices or giving back to the community, it can positively impact its reputation and brand image, which can lead to increased customer loyalty and sales. This, in turn, can boost financial performance. As financial performance improves, a company may be able to invest more in social responsibility initiatives, further strengthening its reputation and financial performance in a positive feedback loop.

Question 2

Ethics deals mostly with complying with rules and regulations.

Accepted Answer

Ethics involves not only following rules and regulations, but also considering moral principles, values, and standards in decision making and actions.

Question 3

When senior management provides strategic leadership for ethics,

Accepted Answer

When senior management provides strategic leadership for ethics, they become ethics leaders by setting the tone for ethical behavior within the organization. This involves creating a culture of ethical behavior and ensuring that ethical decision-making is a fundamental part of business operations. Emphasizing being whistle blowers (A) is only a small part of creating an ethical culture and marketing strategy (B) should align with ethical strategy, but does not necessarily convert into it. The roles of stockholders and shareholders (D) are not directly impacted by senior management providing strategic leadership for ethics.

Question 4

To build community, a leader should search for goals compatible to all the constituents.

Accepted Answer

Building a community requires finding common goals that are compatible with the interests and perspectives of all members. A leader who can identify and pursue such goals can foster a sense of unity among constituents and promote cooperation and collaboration. It is important to recognize and respect diversity, but also to identify shared values and aspirations that can unite people around a common purpose.

Question 5

An example of a whistleblower (in relation to ethics) would be a(n)

Accepted Answer

A whistleblower is someone who exposes unethical or illegal activities within an organization. The bookkeeper in this scenario is exposing fraudulent accounting, which is an unethical and potentially illegal activity. The other choices do not involve whistleblowing, as they are either enforcing ethical behavior or educating on ethics.

Question 6

An explanation offered for ethical behavior in terms of interpersonal skills is that when you are close with people, you are more likely to

Accepted Answer

When you have close relationships with people, you are more likely to value and respect them, which can lead to behaving ethically with them.

Question 7

Whether or not the leader has done the right thing is based on the perception by a consensus of reasonable people.

Accepted Answer

The perception of whether a leader has done the right thing is subjective and varies from person to person, but if a consensus of reasonable people agrees that the leader's actions were appropriate, then it can be considered the right thing to do.

Question 8

A practical suggestions for business leaders to behave ethically is to

Accepted Answer

Business leaders should place company interests over personal interests to behave ethically. This means prioritizing the well-being of the organization and its stakeholders over individual gain or self-interest. By doing so, leaders demonstrate a commitment to the company's values and the importance of ethical decision-making in achieving long-term success.

Question 9

A major factor contributing to differences in ethical behavior among executives is their level of greed, gluttony, and avarice.

Accepted Answer

Greed, gluttony, and avarice can contribute to unethical behavior, as they may cause individuals to prioritize their own interests over ethical considerations. However, it is important to note that there are many other factors that can influence ethical decision-making and behavior among executives, such as personal values, organizational culture, and external pressures.

Question 10

Middle manager Sylvie regularly tells her group members about the importance of treating people fairly, and she is fair with her employees.Sylvie therefore has integrity.

Accepted Answer

Sylvie's actions align with her beliefs and values, demonstrating integrity.

Question 11

A recommended approach to promoting ethical behavior throughout the organization is to

Accepted Answer

Rewarding people who have performed well and behaved ethically sends a strong message that ethical behavior is valued and recognized within the organization. It also encourages others to adopt similar behavior and creates a positive organizational culture. Basing rewards on seniority or implementing a whistleblower recognition program may be counterproductive and discourage employees from reporting ethical violations or behaving ethically if they feel like they are not being recognized or rewarded for their efforts. Hiring candidates who have taken a course in ethics may be beneficial, but it does not guarantee that they will behave ethically in the workplace.

Question 12

An example of a formal mechanism for dealing with ethical problems is

Accepted Answer

An ethics committee specifically established to review and address complaints about ethical problems provides a formal and organized way to deal with ethical issues. This mechanism promotes transparency and accountability in addressing ethical problems within an organization. Leadership by example, training programs, and accepting whistleblowers are also important aspects of promoting ethical behavior, but they may not provide the same level of formality and rigor in addressing ethical problems as a dedicated ethics committee.

Question 13

The results of a survey with over 1,200 workers indicated that these workers perceived top-level managers to be more honest and have more integrity than their immediate boss.

Accepted Answer

Surveys often show that workers perceive their immediate bosses as more honest and having more integrity than top-level managers, due to closer working relationships and more direct interactions.

Question 14

An important goal of a rational leader is to merge the interests of all parties so that everyone benefits and the organization becomes prosperous.

Accepted Answer

A rational leader seeks to find a solution that benefits all parties involved, leading to success and prosperity for the organization.

Question 15

According to an ethics specialist cited in the text, the moral leader will attempt to squeeze all the publicity possible out of his or her moral initiatives.

Accepted Answer

According to ethical principles, a moral leader will not seek publicity or personal gain from their moral initiatives. Instead, they will act with humility and genuine concern for the well-being of others.

Question 16

A survey indicated that a majority of U.S.workers would be willing to work for less pay if they could work for an ethical employer.

Accepted Answer

According to a survey conducted by BetterUp, 87% of workers in the US would be willing to take a pay cut to work for an ethical company.

Question 17

A leader who focuses on maximizing shareholder wealth will automatically behave ethically from the standpoint of the principle "pay attention to all stakeholders."

Accepted Answer

A leader who focuses solely on maximizing shareholder wealth may not necessarily consider the needs and interests of all stakeholders, such as employees, customers, and the community. This could lead to unethical behavior, such as prioritizing profits over employee well-being or environmental impact.

Question 18

Chief financial officer Barry turns in travel and expense reports that are 100 percent honest, and he encourages employees in his division to inspect his reports.Barry is using the ethical initiative called

Accepted Answer

Barry is leading by example by turning in honest travel and expense reports and encouraging his employees to inspect them.

Question 19

When faced with a supplier who uses unsafe working conditions, a socially responsible alternative is to

Accepted Answer

Working with the supplier to improve working conditions is the socially responsible alternative as it is essential to promote social and ethical standards in the supply chain by establishing partnerships with suppliers. This approach helps to address the issue rather than abandoning the supplier, imposing a price cut, or beginning a boycott that may lead to negative impacts on the supplier's business and instead establish better supplier relationships that benefit both parties in the long run.

Question 20

A unit of the U.S.Federal Government publishes on the Internet an Encyclopedia of Ethical Failure.The purpose of the document is to

Accepted Answer

The purpose of the Encyclopedia of Ethical Failure is to make public highly unethical behavior by government employees. This is meant to increase transparency and accountability within the government and prevent similar unethical behavior from happening in the future.

Quiz 6: Leadership Ethics and Social Responsibility