Deck 4: The Corporate Culture-Impact and Implications

Question 1

Identify a true statement about corporate cultures.

A)Corporate cultures remain unaffected even in the presence of strong business leaders.
B)Corporate cultures are static in nature.
C)Corporate cultures influence,limit,and shape the decision making within a firm.
D)Corporate cultures in a global firm differ significantly across different countries.

Answer 1

C
Explanation: Decision making within a firm is influenced,limited,shaped and,in some cases,virtually determined by the corporate culture of the firm.Individuals can be helped-or hindered-in making the "right" or "wrong" decision (according to their own values)by the expectations,values,and structure of the organization in which they live and work.

Question 2

Organizations that have a traditional approach to culture can be classified as compliance-based cultures.

Answer 2

True
Explanation: In the 1990s,a distinction came to be recognized in types of corporate culture: some firms were classified as compliance-based cultures (the traditional approach)while others were considered to be values-based or integrity-based cultures.

Question 3

A values-based culture recognizes that where rules do not apply the firm must rely on the personal integrity of its workforce during decision making.

Answer 3

True
Explanation: A values-based culture recognizes that where a rule does not apply the firm must rely on the personal integrity of its workforce when decisions need to be made.

Question 4

Due to diverse employee groups and management styles,the work culture of a large global firm in one country will differ significantly from the work culture of the same firm halfway around the world.

Question 5

The cultivation of habits,including the cultivation of ethical virtue,is greatly shaped by the culture in which one lives.

Question 6

An ethical environment,or culture,would be one in which employees are expected to act by the rules in spite of unethical conditions.

Question 7

Lack of any generally accepted fundamental values for the organization is a clear sign of a "toxic" culture.

Question 8

Differing individual perception of culture makes it easier to define the specific culture within an organization.

Question 9

No culture,in business or elsewhere,is static.

Question 10

Whistle-blowing to external groups is usually preferred over internal mechanisms for reporting wrongdoing.

Question 11

Which of the following statements is true about ethical cultures?

A)Workplace ethical cultures have no impact on decision making.
B)Subordinates are expected not to act unless directed by superior authorities.
C)Decisions are expected to be taken based on laws and not on ethical values.
D)Employees are expected to act in responsible ways,even when the law does not require it.

Question 12

In 2010,the United States Sentencing Commission (USSC)adopted amendments to the Federal Sentencing Guidelines for Organizations (FSGO)to lower the penalties for compliance violations if an organization promptly reported an offense to appropriate governmental authorities.

Question 13

Which of the following situations could result in the business culture becoming a determining factor in ethical decision making?

A)Lack of competition
B)Law providing incomplete answers
C)Lack of strong leadership
D)Stagnant or decreasing profits

Question 14

A true statement about corporate culture is that _____.

A)it provides stability that can be a benefit at one time and can be a barrier to success at another
B)it is unlikely to play any role in determining or influencing the decision making within a firm
C)it differs significantly across different countries in a global firm
D)is generally easy to modify

Question 15

The first step in the construction of a code or mission is to articulate a clear vision regarding the firm's direction.

Question 16

A firm must first determine its mission before impacting the culture through a code of conduct.

Question 17

Ethically appropriate methods of leadership are central to becoming an ethical leader.

Question 18

"Quietly ethical" executives within the confines of the top management team are likely to be perceived as ethical leaders because they have the support of the top management.

Question 19

Identify a true statement about culture.

A)The specific culture within an organization can be defined easily and objectively.
B)Culture,in business and elsewhere,is considered static in nature.
C)Attitude and behavior comprise the biggest fraction of the elements that determine culture.
D)A firm's culture can be its sustaining value,offering it direction and stability during challenging times.

Question 20

One of the most determinative elements of integration is communication.

Question 21

Identify a true statement about a compliance-based culture.

A)A compliance-based culture recognizes that where a rule does not apply,a firm must rely on the personal integrity of its workforce when decisions need to be made.
B)A compliance-based culture is one that reinforces a particular set of values rather a particular set of rules.
C)A compliance-based culture is only as strong and as precise as the rules which workers are expected to follow.
D)A compliance-based culture is perceived to have a more flexible and far-sighted corporate environment.

Question 22

How is an ethical,effective leader different from an effective leader?

A)An ethical,effective leader takes decisions based only on a set of rules unlike an effective leader.
B)An ethical,effective leader follows a set of rules regardless of consequences unlike an effective leader.
C)An ethical,effective leader empowers the employees in decision making unlike an effective leader.
D)An ethical,effective leader achieves her or his goals through intimidation unlike an effective leader.

Question 23

Which of the following statements is true about an ethical leader in a corporate environment?

A)An ethical leader agrees to conduct that would be inconsistent with her or his own personal values.
B)An ethical leader refrains from placing her or his own ethical behavior above any other consideration.
C)An ethical leader shirks her or his duties in the corporate structure.
D)An ethical leader allocates corporate resources to support and promote ethical behavior.

Question 24

Which of the following is an essential element in establishing an ethical leadership?

A)The end or objective toward which the leader leads
B)The prevailing culture in the external environment
C)The ethical nature of the team members
D)The personality traits of the team members

Question 25

The _____ serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment.

A)annual report
B)vision statement
C)mission statement
D)income statement

Question 26

The means used to motivate others and achieve one's goals plays a key role in distinguishing between:

A)silent leaders and visible leaders.
B)effective leaders and ethical leaders.
C)informal leaders and formal leaders.
D)silent leaders and ethical leaders.

Question 27

In which of the following situations is the distinction between compliance-based and values-based corporate cultures most evident?

A)Advertising
B)Accounting and auditing
C)Packaging and labeling
D)Printing

Question 28

Which of the following statements is true about value-based cultures?

A)They emphasize obedience to the rules as the primary responsibility of ethics.
B)They are only as strong and as precise as the rules with which workers are expected to comply.
C)They reflect the traditional approach of classifying corporate culture.
D)These cultures are perceived to be more flexible and far-sighted corporate environments.

Question 29

Unlike the goals of a more evolved and inclusive ethics program,the goals of a traditional compliance-oriented program include:

A)maintaining brand and reputation.
B)minimizing the risks of litigation and indictment.
C)recruiting and retaining desirable employees.
D)helping unify a firm's global operations.

Question 30

Which of the following is a value that will impact the culture of an organization in the absence of any other established values?

A)Profit-at any cost
B)Ethical behavior
C)Legal compliance
D)Customer satisfaction

Question 31

If we judge a leader solely by the results produced,we are following the _____ ethical tradition.

A)deontological
B)virtual
C)Kantian
D)utilitarian

Question 32

The first step in constructing a personal code or mission for a firm is to:

A)articulate a clear vision regarding the firm's direction.
B)ask oneself what one stands for or what the firm stands for.
C)believe that the culture is actually possible and achievable.
D)identify clear steps as to how the cultural shift will occur.

Question 33

According to the _____ ethics tradition,people act out of habit than out of deliberations.

A)Kantian
B)virtue
C)utilitarian
D)principle-based

Question 34

Which of the following is a traditional approach to corporate culture?

A)Values-based
B)Integrity-based
C)Customer-based
D)Compliance-based

Question 35

Which of the following cultures will empower legal counsel and audit offices to mandate and to monitor conformity with the law and with internal codes?

A)A customer-based culture
B)An integrity-based culture
C)A values-based culture
D)A compliance-based culture

Question 36

Which of the following is emphasized by a compliance-based culture?

A)Reliance on personal integrity of employees for decision making
B)Use of values as the principle for decision making
C)Obedience to rules as the primary responsibility of ethics
D)Reinforcement of a set of values rather than a set of rules

Question 37

Which of the following is a necessary part of being an ethical business leader?

A)Achieving goals through threats,intimidation,harassment,and coercion
B)Guiding,directing,and escorting followers to their common destination,even if it means employing unfair methods
C)Refraining from placing her or his own ethical behavior above any other consideration
D)Creating a corporate culture in which employees are empowered and expected to make ethically responsible decisions

Question 38

Which of the following is true about an integrity-based culture?

A)It reinforces a particular set of rules.
B)It reinforces a particular set of values.
C)It empowers legal bodies to monitor compliance.
D)It emphasizes rules as the primary responsibility of ethics.

Question 39

When firms are effective in enacting ethics programs,_____.

A)employees are less likely to have sufficient time for reflection in order to reach responsible decisions
B)employees are more likely to believe that the culture of their firm impedes integrity
C)employees are more likely to see themselves as participants in an ethical workplace culture
D)employees are less likely to perceive the style of decision making as collaborative

Question 40

A(n)_____ provides concrete guidance for internal decision making creating a built-in risk management system.

A)code of conduct
B)organization vision
C)income statement
D)ombudsperson

Question 41

Identify a mechanism that allows employees to report wrongdoing and to create further mechanisms for follow-up and enforcement.

A)Accountability
B)Ethics hotlines
C)Mission statement
D)Code of conduct

Question 42

The Supreme Court separated the "mandatory" element of the Federal Sentencing Guidelines for Organizations from their advisory role,holding that their mandatory nature:

A)was only applicable to individuals and not to organizations.
B)provided arbitrary punishments.
C)violated the Sixth Amendment right to a jury trial.
D)encouraged internal whistle-blowing.

Question 43

Which of the following statements is true about the revised Federal Sentencing Guidelines for Organizations?

A)It included the criteria for an effective program,which is included in the guidelines' commentary.
B)It included the requirement that organizations periodically measure the effectiveness of their program.
C)It excluded the requirement that organizations assess areas of risk for ethics and compliance.
D)It excluded references to ethics and compliance programs.

Question 44

Identify a true statement about the Federal Sentencing Guidelines for Organizations.

A)They were updated in 2004 to include references to both compliance programs and "ethics and compliance" programs.
B)They are used to provide arbitrary punishments.
C)They were updated in 2004 and excluded the requirement that organizations periodically measure the effectiveness of their programs.
D)They assign most federal crimes to one of 57 "offense levels."

Question 45

Which of the following should an organization do in order to have an effective compliance and ethics program?

A)The organization should refrain from promoting and consistently enforcing its compliance and ethics program.
B)It should ensure that people who have previously engaged in unethical activities are placed in charge of programs.
C)The organization should establish standards and procedures to prevent and detect criminal conduct.
D)Low-level personnel must be assigned to have responsibility for the program.

Question 46

The final step in the development of corporate codes of conduct or mission statements is to:

A)ask oneself what one stands for or what the company stands for.
B)articulate a clear vision regarding the firm's direction.
C)identify clear steps as to how the cultural shift will occur.
D)believe that the culture is actually possible and achievable.

Question 47

A _____ environment is one in which employees act in responsible ways,even when the law does not require it.

Question 48

Which of the following statements is true about whistle-blowing?

A)It involves the disclosure of ethical activities.
B)It occurs internally when stakeholders report wrongdoing to legal authorities.
C)It can expose and end unethical activities.
D)It is safe and seldom causes any harm to the whistle-blower or the business.

Question 49

The second step in the development of guiding principles for a firm is to:

A)ask oneself what one stands for or what the company stands for.
B)articulate a clear vision regarding the firm's direction.
C)identify clear steps as to how the cultural shift will occur.
D)believe that the culture is actually possible and achievable.

Question 50

Which of the following is true about communicating unethical behavior in a corporate structure?

A)Reporting ethically suspect behavior is a simple thing to do.
B)Employees are always comfortable in raising questions against superiors.
C)Reporting individuals can face retaliation from superiors.
D)Whistle-blowing is the most preferred mechanism for communicating ethical behavior.

Question 51

If one joins a firm with a culture that supports values other than those with which one is comfortable,there will be a _____.

Question 52

A true statement about an effective internal mechanism of whistle-blowing is that:

A)it occurs when employees report wrongdoing to legal authorities.
B)it must expose unethical behaviors to the press.
C)it should disallow confidentiality and anonymity.
D)it must strive to protect the rights of the accused party.

Question 53

What is the term used to describe a potentially damaging or ethically challenged corporate culture?

A)Caustic
B)Pyrophoric
C)Corrosive
D)Toxic

Question 54

_____ and an ongoing ethics audit allow organizations to uncover silent vulnerabilities that could pose challenges later to the firm,thus serving as a vital element in risk assessment and prevention.

A)A mission statement
B)Monitoring
C)Statements of values
D)Ombudsperson

Question 55

Identify an effective way of creating clear and successful reporting schemes.

A)Leaders empowering subordinates to take decisions without providing guidance
B)Managers ignoring the risk and taking a wait-and-see attitude
C)Reinforcing the organization's values through its compensation and reward structure
D)Discouraging running drills or rehearsals of challenging events

Question 56

Which of the following is true about the Sarbanes-Oxley Act?

A)It specifically asked for lenient penalties in sentencing recommendations.
B)It required public companies to establish a code of conduct for top executives and,if they did not have one,to explain why it did not exist.
C)Its mandatory nature violated the Sixth Amendment right to a jury trial.
D)It did not support the United States Sentencing Commission's guidelines to create both a legal and an ethical corporate environment.

Question 57

Which of the following involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing?

A)Whistle-blowing
B)Redlining
C)Gentrification
D)Flyposting

Question 58

Values-based cultures are also known as _____ cultures.

Question 59

The _____ tradition reminds us that we are as likely to act out of habit and based on character as we are to act after careful deliberations.

Question 60

Defining the specific culture within an organization is not an easy task since it is partially based on each participant's _____ of the culture.

Question 61

How are leaders responsible for supporting ethical decision making?

Question 62

What is a code of conduct? What is its role within an organization?

Question 63

What are the differences between an effective leader and an ethical leader?

Question 64

_____ involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing.

Question 65

How does a compliance-based structure work?

Question 66

How are the corporate culture and ethics related in an organization?

Question 67

What is corporate culture? How does it shape an employee?

Question 68

How is communication important for the integration of an ethical culture? What is whistle-blowing?

Question 69

Describe how a values-based culture works.

Question 70

Those perceived as ethical leaders do many of the things "traditional leaders" do (e.g. ,reinforce the conduct they are looking for,create standards for behavior,and so on),but they do that within the context of _____.
A.People perceive that the ethical leader's goal is not simply job performance,but performance that is consistent with a set of ethical values and principles.

Question 71

How does perception affect the culture within an organization?

Question 72

What is the last step in the development of guiding principles for a firm?

Question 73

United States Sentencing Commission (USSC)prescribed mandatory _____ that apply to individual and organizational defendants in the federal system,bringing some amount of uniformity and fairness to the system.

Question 74

Explain the reasoning behind the popularity of the values-based culture.

Question 75

Which traits should a leader possess so that he or she can be perceived as being ethical?
A.People perceive that the ethical leader's goal is not simply job performance,but performance that is consistent with a set of ethical values and principles.Finally,ethical leaders demonstrate caring for people (employees and external stakeholders)in the process.

Question 76

How can an ethical culture have a direct effect on the bottom line of an organization?

Question 77

Explain how corporate culture and virtue ethics are related.

Question 78

In addition to attitudes and behaviors,list the other determinants of culture within an organization.

Question 79

Improving accountability mechanisms is one of the goals of a _____ program.

Question 80

One of the key manifestations of ethical leadership is the articulation of _____ for the organization.