Deck 6: Leadership Ethics and Social Responsibility

Question 1

An authority cited in the leadership text argues that ethics is at the center of leadership because a rational leader:

A) wants to create a positive public appearance.
B) promote conflicts of interest.
C) attempts to keep profits at a bare minimum.
D) wants everybody to benefit.

Answer 1

D
Edwin H. Locke, the goal theorist, argues that ethics is at the center of leadership because the goal of a rational leader is to merge the interests of all parties so that everyone benefits and the organization prospers. See "Principles and Practices of Ethical and Moral Leadership."

Question 2

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

Answer 2

False
The widely held belief that a CEO's primary responsibility is to maximize shareholder wealth conflicts with the principle of paying attention to all stakeholders. See "Principles and Practices of Ethical and Moral Leadership."

Question 3

Strategic leadership and social responsibility include the idea that senior managers set the tone for ethics and social responsibility throughout an organization.

Answer 3

True
The most effective route to an ethical and socially responsible organization is for senior management to provide strategic leadership in that direction. In this way, senior managers become ethics leaders. See "Leadership, Social Responsibility, and Creating an Ethical Organizational Culture."

Question 4

Bertha, a finance manager, engages in rationalization when she creates a few false invoices and then says, "I was only trying to lower the company's tax burden."

Question 5

Information technology manager George displays an ethical mind as a leader when he makes up a list of company workers who do not deserve to be protected against computer viruses.

Question 6

Ethics deals mostly with compliance to rules and regulations.

Question 7

Ethics can be considered the:

A) vehicle for putting values into action.
B) opposing force to values.
C) equivalent of organizational culture.
D) opposite of moral leadership.

Question 8

Louise, the managing director of a company, should put personal interests ahead of the company's interests to create a socially and ethically responsible company.

Question 9

A recommended way of creating a socially responsible organizational culture is for managers to lead by example.

Question 10

Ethics deals mostly with:

A) being socially responsible.
B) separating right from wrong.
C) legal versus illegal behavior.
D) an action rather than its intent.

Question 11

One of the questions included in an ethical screen is, "How does it [the decision in question] smell?"

Question 12

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

Question 13

A key part of a company's designation as the "best company to work for" is an evaluation of the company's organizational culture.

Question 14

Several psychiatrists and corporate governance experts claim that some executives are unethical because they feel they are entitled to whatever they can get away with or steal.

Question 15

Sylvie , a manager, regularly tells her team members about the importance of treating people fairly, and she also treats her employees in a fair manner. Hence, Sylvie is said to possess integrity.

Question 16

To maintain an ethical climate, many companies today create the position of whistleblower, and the person holding this job investigates potential ethical violations full time.

Question 17

Corporate social responsibility deals with a firm's impact on society more than its impact on company employees.

Question 18

Rita is a leader of high integrity. According to the technical meaning of integrity, Rita will:

A) have high morals in every facet of her life.
B) be kind to employees even if she does not like them.
C) steal only to benefit poor people.
D) stick to the principles she thinks are right.

Question 19

Rationalization can lead to unethical behavior because people will focus on the intention of the act rather than the act itself.

Question 20

According to the virtuous circle, corporate profits→good social performance→more profits→more good social performance.

Question 21

A recommended approach for promoting ethical behavior throughout an organization is to:

A) reward employees based on their seniority.
B) impose severe penalties on whistleblowers."
C) hire only those candidates who have taken a course in ethics.
D) reward people who have performed well and behaved ethically.

Question 22

Which of the following is the clearest example of socially responsible behavior on the part of a business firm?

A) Ensuring that all workers get paid
B) Focusing on profit maximization at all costs
C) Creating a pleasant workplace
D) Avoiding involvement in political causes

Question 23

An example of an executive leader helping sustain the environment would be to:

A) use as much renewable energy as possible at the company.
B) create attractive designs on packages.
C) construct new buildings rather than preserve old ones.
D) charge customers for shipping and delivery.

Question 24

Corporate social responsibility centers on a firm's:

A) contributions to charity.
B) positive contribution to society.
C) adherence to laws.
D) focus on maximizing profit.

Question 25

A recent development in corporate philanthropy is for corporate leaders to demand:

A) a good return on investment, in terms of social impact.
B) that the institutions receiving the money become good customers.
C) that all recipients of their generosity believe in capitalism.
D) respect and recognition from all recipients.

Question 26

According to the idea of entitlement, some corporate executives behave unethically because they feel they are:

A) entitled to make up for a poor childhood.
B) entitled to whatever they can get away with or steal.
C) servants of an unfair system.
D) underpaid in comparison to top professional athletes and entertainers.

Question 27

Chief financial officer Justin took his family on an Asian vacation using the company jet. He excuses his behavior by stating, "My family and I were spreading goodwill around the world for the company." Therefore, Justin tries to defend his actions by:

A) showing concern for stakeholders.
B) rationalizing.
C) empathizing.
D) exercising his rights as a senior executive.

Question 28

Which one of the following questions in an ethical screen deals with the principle of reversibility?

A) How does it smell?
B) What would you tell your child to do?
C) Who gets hurt?
D) Is it fair?

Question 29

An ethical screen is used primarily when facing a situation that:

A) is in opposition to the organizational culture.
B) affects the majority of employees within a firm.
C) involves deciding if an act is ethical or unethical.
D) is widely recognized as criminal behavior.

Question 30

The approach that focuses on social responsibility by finding out better ways for leaders to make a positive contribution to society is the _____ approach .

A) whistleblowing
B) Thou Shalt
C) Thou Shalt Not
D) entitlement

Question 31

Chief financial officer Barry submits travel and expense reports that are completely genuine and encourages employees in his division toalways give accurate and correct information. Barry is using the ethical initiative called:

A) leading by example.
B) open-book management.
C) accepting whistleblowers.
D) developing formal mechanisms for dealing with ethical problems.

Question 32

A leader at the post-conventional level of moral development is likely to:

A) attempt to do the most good for the most people.
B) maximize personal gain in most business transactions.
C) falsify earnings statements to be eligible for a big bonus.
D) be moral just enough to look good.

Question 33

A principle of ethical and moral leadership is to:

A) regularly publicize moral victories.
B) maximize personal returns in business transactions.
C) pay attention to all stakeholders.
D) maximize shareholder wealth.

Question 34

Chief operations officer Joan has an ethical mind, so she has a point of view that helps workers:

A) feel entitled to whatever they can get away with or steal.
B) lose their sense of reality.
C) aspire to do good work that matters to many people.
D) focus on maximizing personal gains.

Question 35

Most unethical behaviors have:

A) resulted in a consistency between word and deed.
B) helped many young people start a business career.
C) resulted in mere accusations and allegations.
D) led to the layoffs of thousands of workers.

Question 36

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

A) leading by example.
B) having an ethics committee for reviewing complaints about ethical problems.
C) conducting training programs in ethics for organizational employees .
D) accepting whistleblowers without penalizing them .

Question 37

When senior management provides strategic leadership for ethics,

A) senior managers emphasize being whistle blowers.
B) marketing strategy is converted into ethical strategy.
C) senior managers become ethics leaders.
D) the roles of stockholders and shareholders become reversed.

Question 38

An opportunity for an organization to practice social responsibility involves:

A) developing a sense of entitlement.
B) place personal interests above company interests.
C) imposing harsh penalties on whistleblowers.
D) working with its supplier to improve working conditions.

Question 39

A major source of individual differences in ethics and morality among leaders is:

A) the products and services offered by the firm.
B) government regulations about ethics.
C) their tendency to focus on all stakeholders.
D) their level of greed, gluttony, and avarice.

Question 40

Which of the following is a recommended initiative for achieving an ethical and socially responsible organization?

A) Establish severe penalties for whistleblowers.
B) Encourage employees to learn ethics by trial and error.
C) Provide strategic leadership directed toward the goal.
D) Develop informal mechanisms for dealing with ethical problems.

Question 41

The Sarbanes-Oxley Act requires public companies to _____.

A) disclose whether they have adopted a code of ethics for senior financial officers
B) provide a list of possible penalties to be imposed on whistleblowers at all levels
C) use renewable sources of energy wherever possible
D) donate part of their profit to charitable organizations

Question 42

Which of the following examples illustrates a method for creating a socially responsible and ethical organization?

A) ABC Inc., a large industrial group, encourages its senior managers to set examples for other employees by being fair and just in their actions.
B) A company immediately terminates employees who report wrongdoings of the company to government authorities and ensures they are not employed elsewhere.
C) Shine Inc., a chemcial supplier, adjusts its balance sheets to show profit despite a reduction in sales in order to reinforce the confidence of its shareholders.
D) A company focuses on achieving its annual targets in terms of revenue irrespective of the impact on its employees and the environment.

Question 43

Evan, a manager, strongly believes in the concept of power sharing. Therefore, Evan is most likely to _____.

A) show a consistency between word and deeds and keep promises
B) allow for group member input into decisions and listen to their suggestions
C) care about the environment in such ways as being a champion of recycling
D) be moral enough just to look good

Question 44

Amanda, a business analyst, presents false research findings to her manager to prove that the desired results have been achieved and to get appreciation for her work. Which level of moral development is illustrated in the given scenario?

A) conventional level
B) post-conventional level
C) preconventional level
D) non-conventional level

Question 45

Martin, a senior manager in a company, bribes a government officer to secure a government contract. He justifies his actions stating that he acted in the best interests of the company and nobody stopped him. In the given scenario, Martin is justifying his actions by resorting to _____.

A) rationalization
B) whistleblowing
C) entitlement
D) power sharing

Question 46

A practical suggestion for business leaders to behave ethically is to:

A) reward employees based on their seniority.
B) practice rationalization.
C) impose severe penalties for whistleblowers.
D) place company interests over personal interests.

Question 47

Brian takes over as the director of a company charged with unethical practices such as presenting fraudulent sales figures to authorities and shareholders. The company suffered bankruptcy because of huge penalties imposed by government. Thousands of workers were laid off and investors developed distrust toward the company. What are the possible initiatives that Brian can consider for creating an organizational culture that encourages ethical behavior among employees?

Question 48

Arnold, a team manager, believes in treating all his team members equally. He adheres to his beliefs irrespective of the circumstances. Which ethical leadership behavior is Arnold demonstrating?

A) Entitlement
B) Integrity
C) Whistleblowing
D) Rationalization

Question 49

Studies have shown that employees working in an ethical environment tend to:

A) deliver superior peformance.
B) have low levels of motivation.
C) overlook their ethical flaws.
D) focus solely on personal gains.

Question 50

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

A) security guard who sent notices to employees who drove too fast in the company parking lot.
B) executive who imposed fines on employees who behaved unethically.
C) company specialist conducting training programs about ethics.
D) bookkeeper who told a journalist about fraudulent accounting in the company.

Question 51

A model of the relationship between corporate social performance and profits emphasizes _____.

A) rationalizing of unethical actions
B) developing a sense of entitlement
C) the role of supply and demand
D) the maximization of profits

Question 52

Edwin, an engineer in a construction material manufacturing company, always strives to give his best because he is aware that he is contributing to something larger and would be recognized for it. It can be inferred from the given scenario that _____.

A) employees who work in an ethical environment tend to be better motivated
B) putting personal interests before the company's interest builds socially responsible organizations
C) individuals tend to focus on the intent of an action rather than on the action itself
D) people are primarily concerned with receiving external rewards and avoiding punishment

Question 53

Jennifer, an entrepreneur, recently started a food processing business. She possess a strong desire for building a community and giving something back to society. Jennifer hopes to inculcate the same desires in her employees. How can Jennifer accomplish her goals?

Question 54

The employees of a company feel that management does not make fair decisions when increasing salaries or promoting people. Which ethical screen is used by the employees to question the decisions of the management in the given example?

A) Justice
B) Reversibility
C) Intuition
D) Utilitarianism

Question 55

The virtuous cycle in relation to social responsibility suggests that

A) recycling pays off in increased profits.
B) ethical executives attract ethical employees.
C) corporate social performance and corporate financial performance feed and reinforce each other.
D) employees disclosing organizational wrongdoing to authorities should be severely penalized.

Question 56

Which of the following examples illustrates an effort toward building a socially responsible and ethical organization?

A) Rodger, a senior executive in a company, uses the company car allotted to him for personal purposes claiming the he is eligible to do so because of his position.
B) Drive Inc., a tire manufacturing company, uses solar panels to generate electricity for running the equipment in its inspection and packaging division.
C) White Inc., a large pharmaceutical company, fires those employees who protest against unethical actions and report wrongdoings to government authorities.
D) Dave, a team manager, often justifies his unethical actions by stating that he did so for the benefit of the team and nobody stopped or questioned him.

Question 57

One of the approaches for achieving a socially responsible and ethical organization is to _____.

A) develop a sense of entitlement
B) engage in philanthrophy
C) dismiss whistleblowers
D) encourage rationalization

Question 58

Blue Inc., a highly profitable consumer goods manufacturing company, invests in a number of social responsibility initiatives that in turn generate profit for the company. Which feature of corporate and social performance is illustrated in the given scenario?

A) Entitlement
B) Deontological theory
C) Virtuous circle
D) Whistleblowing

Question 59

Gordon is a team leader who always aspires to do good work that matters to his team mates, other colleagues, and society in general. He always tries to make decisions by keeping in focus the best interests of his team. When faced with a situation that involves making critical decisions that can impact many people in his team, what are the factors that Gordon should consider for examining if his decisions are ethical?

Question 60

A journalist questions the director of a chemical manufacturing company about the possible hazards of a recently introduced chemical for use in water purification systems. The journalist's question is based on the _____.

A) deontological theory of justice
B) universalist principle of disclosure
C) utilitarian notion of doing the greatest good for the greatest number of people
D) deontological principle of reversibility that evaluates ethics by reversing the decision maker