Deck 6: Culture Matters

Question 1

Which one of the following statements best defines the term corporate culture?

A) a set of shared assumptions about how the world works and how people act
B) the characteristics of a population, such as age, race, and income
C) socioeconomic characteristics of a population used to identify consumer preferences
D) the emotional state one experiences when exposed to a new way of life or different attitudes

Answer 1

a set of shared assumptions about how the world works and how people act

Question 2

Everyone understands that Adam was fired for his poor performance. When management says he left "to pursue other opportunities," they are employing

A) a social cocoon
B) euphemistic language
C) incrementalism
D) cultural misinformation

Answer 2

euphemistic language

Question 3

Anand, Ashforth, and Joshi identified all of the following as ways to justify unethical business behavior, EXCEPT

A) denial of responsibility
B) denial of injury
C) social cocoon
D) appeal to higher loyalties

Answer 3

social cocoon

Question 4

According to the Ethical Behavior Continuum, which one of the following choices best describes most people who join an organization?

A) They always behave ethically.
B) They act unethically as much as possible.
C) They want to change the corporate culture.
D) They adopt the corporate culture.

Question 5

Abjit and Chang are discussing the concept of corporate culture at their company, Veggie Fruit Food Market. Which one of the following statements best communicates an important element of corporate culture?

A) It is taken for granted, not questioned.
B) It involves only invisible elements.
C) It is an optional concept for most businesses.
D) It often openly encourages unethical behavior.

Question 6

Bruno began his landscaping design business, Big Green Team, with a plan to target a select group of suburban clients who want unique designs. Bruno envisioned a casual, calm office setting that encouraged work-life balance among his employees. To date, every employee in the office works six days each week. They often arrive early in the morning and leave well into the evening to accommodate as many customers as possible. Which of the following choices has had the most effect on the corporate culture?

A) Bruno's entrepreneurial vision
B) the employees' experiences
C) customer expectations
D) employee preferences for work schedules

Question 7

Throughout her life, Courtney has been taught to behave with integrity and to care for others. Courtney has acted ethically at every part-time job she has had, even when others bent and broke rules, and she continues this attitude in her new career position. In terms of the Ethical Behavior Continuum, Courtney best represents which one of the following choices?

A) the peak of the curve
B) the majority of employees
C) one of the "tails"
D) both of the "tails"

Question 8

Darius works for his family's construction business. He expresses concern about what he believes is bribery. His manager assures Darius that, in this instance, offering money to city council members in exchange for contract awards is standard industry practice. Which justification method is Darius's manager using?

A) appeal to higher loyalties
B) incrementalism
C) denial of injury
D) denial of responsibility

Question 9

In the early 2000s, Volkswagen marketed their diesel-powered automobiles as fuel efficient and environmentally friendly. Only a few company executives and engineers knew that these vehicles used engine-control software designed to perform well during emissions testing on laboratory treadmills. The software disabled the emission control features when the cars were driven on roads. When millions of cars were recalled, Volkswagen engineers claimed that they were following executives' orders. This scenario exemplifies which justification method?

A) denial of responsibility
B) denial of injury
C) social cocoon
D) appeal to higher loyalties

Question 10

Eden operates a resale shop for clothing and accessories. She suspects that she recently purchased some jewelry that was stolen. Eden also assumes that the rightful owner will report the loss to their insurance money and collect a payout, so no one has been disadvantaged. Which justification method is Eden using?

A) appeal to higher loyalties
B) incrementalism
C) denial of injury
D) denial of responsibility

Question 11

In 2017, Houston Astros baseball players used live video of opposing pitchers and catchers to steal their pitching signs. In later games, Astros players banged on trash cans with prearranged signals to alert their teammates to upcoming pitches. Some Astros coaches were aware of this system, which violated baseball rules. Which statement most likely explains why players and coaches allowed the sign-stealing scheme to continue through the 2017 season?

A) Sign-stealing is justified because rules are arbitrary and are made to be broken.
B) Signaling the upcoming pitch did not guarantee that a Houston Astros hitter could hit the baseball.
C) Houston Astros fans deserved to see their baseball team have a successful season.
D) The Houston Astros sign-stealing scheme protected players from being injured by stray pitches.

Question 12

When caught cheating on his midterm exam, Finn says he really did not want to do it, but his parents wanted him to get good grades so he could get a high-paying job after graduation. Which one of the following justification methods is Finn using to support his decision to cheat?

A) appeal to higher loyalties
B) incrementalism
C) denial of injury
D) denial of responsibility

Question 13

In late January 1986, the launch of the Space Shuttle Challenger had been delayed by several days when Morton Thiokol mangers and engineers met with NASA to discuss the risks of a cold-weather launch. Thiokol's solid rocket boosters had never been tested during extreme cold, and some Thiokol engineers expressed concern for the astronauts' safety. NASA managers pushed for launch. When a Thiokol manager asked the engineers to "take off their engineer's hats" and "put on their manager's hats," the engineers relented and ended their objections. The next day, all seven astronauts died when the liquid fuel tank exploded, causing the Challenger to break up at high altitude. This scenario exemplifies which justification method?

A) denial of responsibility
B) incrementalism
C) social cocoon
D) appeal to higher loyalties

Question 14

What best differentiates a denial of injury justification from an appeal to higher loyalties?

A) admission of ethical error
B) admission of harm
C) usefulness in new employee socialization
D) usefulness in encouraging unethical business behavior

Question 15

Garrett has just begun working for a magazine publisher that forbids accepting gifts from vendors. One day, Garrett's supervisor tells him that it is actually okay to accept a free lunch from a vendor seeking contract awards. A few months later, Garrett decides it is also okay to accept a case of Italian wine in exchange for providing the vendor with inside information about an upcoming bid. This scenario exemplifies which justification method?

A) denial of responsibility
B) incrementalism
C) social cocoon
D) appeal to higher loyalties

Question 16

Harper, newly employed by ABC Company, is hesitant to steal information from a competitor until her colleagues tell her to act like a "team player" and join them in the "long game." This scenario exemplifies which justification method?

A) euphemistic language
B) incrementalism
C) social cocoon
D) appeal to higher loyalties

Question 17

Edina is a partner in a large law practice. Like everyone else in their office, Edina has a tendency to overestimate the number of billable hours charged to each client. Which one of the following choices best exemplifies Edina's justification method?

A) euphemistic language
B) incrementalism
C) social cocoon
D) appeal to higher loyalties

Question 18

Cassandra is leading a discussion with her team about the company's code of conduct. Which of the following statements from this discussion best exemplifies a denial of responsibility?

A) "I did exactly what my supervisor told me to do."
B) "No harm, no foul."
C) "I had to steal to pay for my spouse's medical expenses."
D) "If I didn't do it, someone else would."

Question 19

Duska is the operations manager at a facilities management firm that works in several municipal buildings. The bidding process for city contracts is the topic of conversation at a lunch meeting of the firm's management team. Which one of the following statements best exemplifies a denial of injury?

A) "White collar crimes are victimless."
B) "Without my actions, the company would be out of business."
C) "Everyone on the city council behaves the same way."
D) "It's not as if my managers were always perfect themselves."

Question 20

Which of the following statements best exemplifies an appeal to higher authorities?

A) "If you buy a purse from a street vendor, you know you're getting a fake."
B) "If I didn't do it, we never would have made payroll this month."
C) "It's just how we've always recorded our finances."
D) "I was being a team player."

Question 21

Which of the following statements most accurately describes the consequences of an unethical culture?

A) Justifications like incrementalism begin at new employee orientation.
B) Employees often use management's bad behavior to justify their major unethical behaviors.
C) When core values do not match managers' behaviors, employees become more engaged in the company's goals.
D) When values and behaviors conflict, employees become more productive to overcome their embarrassment.

Question 22

Which one of the following statements best describes why companies should use discussions of ethical behavior to help prepare employees for global assignments?

A) Ethical violations in other countries may lead to harsher punishments than they do in the United States.
B) Companies in some countries outside the United States openly encourage unethical behaviors.
C) Most U.S. companies use vague and euphemistic language in their codes of conduct.
D) Employees' legal liability for unethical behavior is the same in all countries.

Question 23

Provide relevant examples of at least two ways that corporate culture can justify unethical behavior.

Question 24

Which element of the 7S model specifically describes the plan devised to maintain and build competitive advantage?

A) strategy
B) structure
C) systems
D) staffing

Question 25

All of the following are elements of the hard triangle of the 7S model, EXCEPT

A) structure
B) skills
C) systems
D) strategy

Question 26

Which element of the 7S model is often compared to an iceberg?

A) skills
B) staffing
C) shared values
D) style

Question 27

Which element of the 7S model is considered the most important?

A) skills
B) shared principles
C) structure
D) strategy

Question 28

Which of the following statements best describes an interpersonal element of the 7S model?

A) style
B) staffing
C) skills
D) systems

Question 29

Which of the following best describes the purpose of the 7S model?

A) The 7S model provides a plan for creating an ethical culture in a new business.
B) The 7S model provides a plan for changing cultural norms in an existing business.
C) The 7S model helps one understand how culture functions inside an organization.
D) The 7S model helps one understand how an individual business compares to industry ethical standards.

Question 30

Which one of the following statements best describes why shared principles are placed at the center of the 7S model?

A) Value alignment is the goal of every organization.
B) Values underpin every other area in an organization.
C) Shared principles are required for organizational success.
D) Organizational values affect how every employee behaves.

Question 31

In the 7S model, which of the following statements best differentiates the hard triangle from the soft square?

A) effects on corporate ethics
B) their importance to the organization's overall success
C) their ability to affect corporate culture
D) management's ability to influence them directly

Question 32

In the 7S model, what statement best describes how structure is different from staffing?

A) its tangibility
B) its potential effect on ethical action
C) its intangibility
D) its placement at the model's center

Question 33

What did Tom Peters mean when he said, "Hard is soft, soft is hard"?

A) Elements in the hard triangle tend to lead to unethical actions more often than those in the soft square.
B) Elements in the hard triangle have less effect on ethical action than do elements in the soft square.
C) It is easier to change an element in the hard triangle than an element in the soft square.
D) It is easier to see and feel an element in the hard triangle than an element in the soft square.

Question 34

Theo Chocolate is an organic, fair-trade chocolate factory that strives to treat everyone well in the bean-to-bar process. This has created a competitive advantage for Theo. This exemplifies which element of the 7S model?

A) structure
B) strategy
C) staffing
D) skills

Question 35

Jing Wei owns a restaurant with little hierarchy. Servers and bussers report to shift managers who report to her. This exemplifies which element of the 7S model?

A) structure
B) staffing
C) systems
D) skills

Question 36

Consultant Kieran is using the 7S model to better understand how the current culture developed at their organization. What is the best way for Kieran to learn about their company's structure?

A) become familiar with the training programs and manuals
B) talk to the hiring manager
C) talk to a cross-section of current employees
D) study the organizational chart

Question 37

Lily notices some irregularities in a colleague's financial reports and suspects fraud. She reports her suspicions via the company's hotline. This exemplifies which element of the 7S model?

A) reactive systems
B) proactive systems
C) reactive staffing
D) proactive staffing

Question 38

Attempting to encourage employees to improve workplace safety, executives offer bonuses to department managers who report zero accidents each month. This leads to an underreporting of accidents on the job. This exemplifies a failure in which element of the 7S model?

A) reactive systems
B) proactive systems
C) reactive staffing
D) proactive staffing

Question 39

Attempting to encourage employees to improve work speed, management at a chain of automobile repair shops offered bonuses to mechanics who bill more than $200 per hour. As a result, mechanics overcharged for simple repairs and "repaired" things that were never broken. Which one of the following choices describes the best and fastest way to change this example of unethical employee behavior?

A) Post a description of corporate ethical principles in each garage.
B) Create a better screening program for new hires.
C) Eliminate the bonus.
D) Create an employee hotline or helpline.

Question 40

Human resources director Matteo routinely performs background checks and reference checks on each job candidate. In addition, during interviews, he poses ethical dilemmas and seriously considers each answer. This exemplifies which element of the 7S model?

A) skills
B) structure
C) systems
D) staffing

Question 41

Manager Narsing cannot award a performance raise unless his direct-report employee has completed all required ethics training for the year. This exemplifies which element of the 7S model?

A) skills
B) staffing
C) shared principles
D) strategy

Question 42

Employees at a regional hospital meet once per quarter to share their best practices with those in other business units. Doing so has increased employee satisfaction and the quality of patient care. This exemplifies which element of the 7S model?

A) skills
B) staffing
C) shared principles
D) strategy

Question 43

Compare and contrast the hard triangle and soft square of the 7S model.

Question 44

Which one of the following best represents a symbolic tool that can be used to change an organization's culture?

A) mission statement
B) stories
C) legends
D) daily activities

Question 45

Which one of the following statements best represents a substantive tool that can be used to change an organization's culture?

A) vision statement
B) stories and legends
C) financial reporting
D) formal rewards

Question 46

Symbolic actions are often compared to which one of the following options?

A) unwritten rules
B) the dangers lurking beneath the ocean
C) the tip of an iceberg
D) a chicken

Question 47

Substantive actions represent

A) mostly tangible transactions
B) mostly formal transactions
C) the way an organization hopes to be seen
D) the way things "really are" in an organization

Question 48

Which one of the following statements best describes the similarity between symbolic and substantive actions?

A) their usefulness for encouraging ethical behavior in organizations
B) their intangibility
C) their tangibility
D) their usefulness in understanding the daily activities of employees

Question 49

Which best differentiates symbolic actions from substantive actions?

A) their ability to affect ethical actions
B) their formality
C) their focus on sustainability and philanthropy
D) their impact on organizational strategy

Question 50

Which of the following best exemplifies a symbolic action?

A) Piper is aware of her manager's efforts to create a safe working environment.
B) Rachael knows that her colleagues include charges for alcoholic beverages on their expense accounts, though policy prohibits it.
C) Sebastian receives a bonus for completing his projects on time and on budget.
D) Tomas tells his coworkers about the time Vivian was fired for stealing office supplies.

Question 51

Which one of the following statements best exemplifies a substantive action?

A) Walt rereads the company mission statement to help make a decision about a potential venture.
B) Xia completes the necessary paperwork for the bank's regulatory filings.
C) Yuri receives an award for his department's outstanding safety record.
D) Ziggy knows that his company fails to process year-end returns to inflate its sales numbers.

Question 52

Which one of the following statements most accurately describes a symbolic action?

A) It is the most visible part of an organization's culture.
B) Few of these actions are formal.
C) It represents the largest part of an organization's living culture.
D) It includes the stories coworkers tell each other about what happens when ethics are violated.

Question 53

Which of the following most accurately describes a substantive action?

A) It is the smallest part of an organization's living culture.
B) Few of these actions are informal.
C) Obedience to rules and norms is the largest of these actions.
D) It is the most visible part of an organization's culture.

Question 54

A large corporation discovers that several of its executive assistants have been using their corporate credit cards for pay for non-work-related goods and services. This violates the corporate code of conduct and is considered theft. An investigation proves that one of these assistants stole nearly $500,000 over the course of several years. The company terminated the assistants involved and filed criminal charges. It also created a new method for reporting and approving credit card expenses. Which of the following represents your best recommendation for creating a more ethical culture?

A) Management should reassess the visible symbols to ensure that they are consistent with corporate principles and intended behaviors. Management should also diligently obey the newly created reporting system and allow the story of these assistants to become a legendary/cautionary tale.
B) Since management has taken symbolic action with a new reporting system, it needs to focus on ensuring that daily employee interactions are ethical. This may be best done by prohibiting gossip about the assistants to spread throughout the company.
C) Company management has done all it can to affect corporate culture with the addition of a new reporting system. All other cultural changes require efforts from other company employees.
D) Management should recognize each employee who has behaved in an ethical manner during this time of misconduct.

Question 55

Compare and contrast symbolic and substantive actions and their effects on ethical performance.

Question 56

Which of the following most accurately describes the phrase "tone at the top" as it refers to ethical leadership?

A) Company leaders have a special responsibility for modeling ethical behavior for all employees below them.
B) Company leaders are responsible for monitoring the behaviors of employees below them.
C) Those in the C-suite often seek additional guidance from personal religious traditions.
D) Those in the C-suite often are strongly influenced by the behaviors of the employees below them.

Question 57

At a large company, all of the following choices would be responsible for setting the "tone at the top," EXCEPT

A) chief executive officer
B) comptroller
C) chief information officer
D) chief marketing officer

Question 58

Which one of the following statements best describes the most common remedy that a board could use when dealing with a C-suite executive who behaves unethically and thus sets a bad tone at the top?

A) additional training
B) counseling
C) termination
D) transfer to another department or division

Question 59

According to a recent study of human resource leaders, what should be at the forefront of an organization's communication strategy?

A) its sales goals
B) its strategic objectives
C) its culture
D) its mission and principles

Question 60

According to a recent study, what do 68 percent of human resource leaders say is the best way to build workplace culture?

A) Include mission and principles in onboarding.
B) Build culture into work processes.
C) Hire employees for cultural fit.
D) Include culture as part of the employee review process.

Question 61

At XYZ Company, managers are publicly praised for their efforts, and employees are often encouraged to emulate these managers. Recently, a group of department managers began leaving the office every Thursday afternoon to play a round of golf. Soon after, many of their direct reports begin to disappear for long stretches of time during the workday to engage in various non-work-related activities. To excuse their actions, the direct reports are most likely using which one of the following logical thoughts?

A) "Since we make such little money, the time off is really a well-deserved perk."
B) "We deserve the break more than the mangers do."
C) "If it's okay for them to do it, it's okay for us."
D) "Why should we be the ones to set a good example for the rest of the office?"

Question 62

Abigail is a member of the board of directors at a large insurance firm. A strong believer in Aristotelian ethics, Abigail tells you she thinks that people typically will do the right thing without need for supervision or oversight. What is your best response?

A) As a member of the board, Abigail should task a lower-level employee with managerial monitoring and the guarding of shareholder interest.
B) As a member of the board, Abigail is required to monitor managerial behavior to fill her fiduciary duty to guard shareholder interests.
C) Abigail's philosophical ideals are similar to those of the Federal Sentencing Guidelines for Organizations, so she should proceed as planned.
D) Abigail should reconsider her philosophical ideals because they are in direct opposition to a business's compliance efforts.

Question 63

Chief human resources officer Brady was terminated for discriminating against certain candidates for employment. The company replaced him with Caroline, someone with a track record of diverse hiring. In this example, how does the company benefit substantively?

A) The company likely will attract a more diverse workforce.
B) Caroline likely will create its first policies and procedures surrounding ethical hiring.
C) The company powerfully signals to employees its need for an ethical culture.
D) The unethical behavior should stop, especially with a new CHRO known for ethical action.

Question 64

Deepika is the chief marketing officer (CMO) at a consumer products firm. Reporting to her is Evan, the director of advertising. Deepika discovers that over the last three years, Evan has been accepting money from vendors in exchange for contract awards. Based on this information alone, which one of the following statements is your best recommendation for moving forward?

A) Evan should be terminated. To lead the repair, the company should hire a replacement director with a strong reputation and track record for ethical behavior.
B) Evan should be terminated. Deepika should step in as temporary director of advertising to lead the repair.
C) Evan should be retrained on the process of contract bidding and awarding. While he does so, Deepika should step in as temporary director of advertising to lead the repair.
D) Deepika should be terminated. To lead the repair, the company should hire a replacement CMO with a strong reputation and track record for ethical behavior.

Question 65

Faith supervises a group of customer service representatives. Often, these employees seek out Gage, a long-term and knowledgeable customer service rep, for advice or information about their work. In this example, which one of the following choices best describes the person(s) responsible for setting the "tone at the top?"

A) Faith alone is responsible because she is the formal supervisor.
B) All customer service employees are responsible.
C) Gage alone is responsible because the group seeks his wisdom.
D) Both Faith and Gage are responsible because they are the informal and informal leaders of the group.

Question 66

As a Muslim, Izaan distinguishes between what is halal (right or ethical) and what is haram (wrong or unethical). His ultimate goal is to develop Adab, or right conduct. In terms of the six specific actions of ethical leadership, Izaan is

A) defining ethical behavior for others
B) living by a code of ethics
C) measuring ethical performance
D) rewarding ethical behaviors

Question 67

Johanna is a nursing supervisor who recently fired an employee for discriminatory behavior. When Kent, a new employee, approaches Johanna for guidance, she tells Kent not to worry about the terminated employee's misdeeds. Johanna instructs Kent to "use his head" and "follow his heart." Which one of the following statements best describes how Johanna has failed to properly advise Kent?

A) Live by a code of ethics.
B) Expect ethical behavior from others.
C) Define ethical behavior for others.
D) Reward ethical behaviors.

Question 68

When composing a memo to his direct reports about a new procedure, Lyle includes a few comments about ethical compliance. When he hears interesting stories about ethical situations in the news, Lyle engages his employees in conversation. Which one of the following statements best describes what Lyle is attempting to accomplish?

A) Lyle is teaching ethical action to his team.
B) His direct reports should live by a code of ethics.
C) Lyle wants to measure ethical performance.
D) Lyle plans to reward ethical behaviors.

Question 69

Which of the following statements is the best example of an informal method that leaders could use to communicate their expectations for ethical behavior?

A) Madison holds formal training sessions to discuss the importance of integrity in action.
B) Nigel takes his employees on a two-day retreat to discuss what it means to live authentically.
C) Otto walks by each employee's work space a few times each day and comments on behavior when warranted.
D) Priya routinely discusses ethics in each employee's performance review.

Question 70

Several times throughout the year, Regan uses training sessions and staff meetings to communicate her ethical expectations to her direct reports. She also walks the production line several times each day to observe and, hopefully, reinforce employee behaviors. Regan is known for ending each meeting and casual conversation by saying, "Doing the right thing is important. I just hope you can actually do it." In this example, Regan has failed to

A) define her expectations for ethical behavior in others
B) communicate confidence in her employees' abilities to live up to her expectations
C) live by a code of ethics herself
D) expect ethical behavior from those who work for her

Question 71

Which of the following best represents a formal method for measuring ethical performance?

A) Simone engages her employees in a discussion of a news story about a challenging ethical situation.
B) In a staff meeting, Tabitha mentions a current situation where the ethical issue is minor and easy for all to understand.
C) Urban converses with another manager about an ethical issue his team grappled with last month.
D) Vito monitors employee attendance at conferences or events on compliance.

Question 72

Wren is new to her leadership position and wants to foster an ethical working environment. She says to you, "I just don't understand why I need to measure ethical performance. Isn't it just a yes-or-no situation?" What is your best response?

A) People like targets to aim for, so any behaviors that we measure will improve.
B) If we do not measure ethical performance, we have nothing on which to base our training processes.
C) Having a clear performance standard helps the company set financial goals.
D) Taking measurements is the only way to create an ethical culture.

Question 73

Which one of the following options is the best way to reward ethical behavior to promote its continuation?

A) frequently and formally
B) frequently and informally
C) infrequently and formally
D) infrequently and informally

Question 74

In 2011, Wells Fargo Financial Services attempted to gain competitive advantage in the marketplace by "cross-selling" banking services to its existing customers. It created an employee sales program wherein financial rewards were offered to sales representatives who met or exceeded sales goals. In 2016, the Consumer Financial Protection Bureau found that more than two million bank accounts or credit cards were opened without customers' knowledge or consent. In the end, more than 5,000 employees were terminated. Wells Fargo's CEO John Stumpf rebuffed suggestions that he resign, saying, "I think the best thing I could do right now is lead this company, and lead this company forward." Were CEO Stumpf's comments an example of appropriate leadership in this instance?

A) When a company is performing profitably, the need for continuity of leadership is important. A leader's or board's decision to change leadership is not an appropriate response when it is employees who are responsible for ethical issues.
B) In this example, the CEO acted as a real leader by refusing to resign and continuing to lead the company in the face of the fake accounts scandal.
C) The tone at the top is an important aspect of a company's ethical tone. The company's financially competitive culture and the leadership team's failure to discover and remedy the problem and cause involving the incentive compensation program meant there was a need for new leadership at the top to send an ethical message.
D) A harsh penalty of resignation or dismissal of CEO Stumpf would send the wrong message to employees and customers.

Question 75

Present and discuss two examples that describe how ethical leadership can positively influence culture.