Question 1

Which of the following are used to evaluate whether a manager is acting in an ethical manner?
A)bonuses and penalties
B)job descriptions
C)assessment and penalties
D)reward and evaluation systems

Accepted Answer

Many companies have developed reward and evaluation systems that evaluate whether a manager is acting in an ethical manner.

Question 2

Compliance-based ethic programs typically are designed by
A)management.
B)employees.
C)shareholders.
D)corporate counsel.

Accepted Answer

Faced with the prospect of litigation,several organizations reactively implement compliance-based ethics programs.Such programs are typically designed by a corporate counsel with the goal of preventing,detecting,and punishing legal violations.

Question 3

This legal act provides considerable legal protection to employees of publicly traded companies who report unethical or illegal practices.
A)Taft-Hartley Act
B)National Labor Relations Act
C)Sarbanes-Oxley Act
D)Norris-La Guardia Act

Accepted Answer

The Sarbanes-Oxley Act of 2002 provides considerable legal protection to employees of publicly traded companies who report unethical or illegal practices.

Question 4

In the integrity-based approach to management,ethics is the responsibility of the
A)shareholders.
B)outside stakeholders.
C)management.
D)employees.

Accepted Answer

An integrity-based ethics program combines a concern for law with an emphasis on managerial responsibility for ethical behavior.Most importantly,organizational ethics is seen as the responsibility of management.

Question 5

Which of the following statements would least likely be found in a corporate credo?
A)Maximize financial benefits for stakeholders as the primary goal of the organization.
B)Provide secure and stable employment for employees.
C)Establish an environment that enhances professional growth.
D)Support community organizations and projects.

Accepted Answer

Corporate credos and codes of conduct are mechanisms that provide statements of norms and beliefs as well as guidelines for decision making.They provide employees with a clear understanding of organization policies and ethical position.Financial maximization is least likely to be included in such statements.

Question 6

Many situations that a firm faces have regular,identifiable patterns.Leaders tend to handle such routines by establishing ________ or ________ to be followed that can be applied ________ to each occurrence.
A)rules;regulations;individually
B)policies;regulations;uniformly
C)a policy;a procedure;uniformly
D)documents;credos;uniquely

Accepted Answer

Many situations that a firm faces have regular,identifiable patterns.Leaders tend to handle such routines by establishing a policy or procedure to be followed that can be applied uniformly to each occurrence.

Question 7

Explain why the leadership activities of (1)setting a direction,(2)designing the organization,and (3)nurturing a culture dedicated to excellence and ethical behavior are independent.

Accepted Answer

The answer of Explain why the leadership activities of (1)setting...

Question 8

Texas Instruments teaches ethics to its employees.They include all levels of the organization in the exchange of knowledge and auditing of behaviors.This is a good example of a(n)________ ethics program.
A)compliance-based
B)integrity-based
C)conformance-based
D)behavioral-based

Accepted Answer

In teaching ethics to its employees,Texas Instruments,the 13 billion USD chip and electronics manufacturer,asks them to run an issue through the following steps: Is it legal? Is it consistent with the company's stated values? Will the employee feel bad doing it? What will the public think if the action is reported in the press? Does the employee think it is wrong? If the employees are not sure of the ethicality of the issue,they are encouraged to ask someone until they are clear about it.In the process,employees can approach high-level personnel and even the company's lawyers.At TI,the question of ethics goes much beyond merely being legal.This is an example of an integrity-based ethics program.

Question 9

Leaders as good role models must walk the talk.This means they must be ________ in their words and actions.
A)effective
B)reliable
C)consistent
D)trust-worthy

Accepted Answer

Clearly,leaders must walk the talk;they must be consistent in their words and deeds.The values as well as the character of leaders become transparent to the employees of the organization through their behaviors.

Question 10

Houston-based Baylor College of Medicine has a ________ that instructs all employees to follow the Baylor Mission Statement,Compliance Program and Conflict of Interest policy.
A)corporate reward
B)corporate motto
C)code of ethics
D)system of evaluation

Accepted Answer

Codes of conduct are mechanisms that provide statements of norms and beliefs as well as guidelines for decision making.They provide employees with a clear understanding of the organization's policies and ethical position.Such guidelines also provide the basis for employees to refuse to commit unethical acts and help to make them aware of issues before they are faced with the situation.For such codes to be truly effective,organization members must be aware of them and what behavioral guidelines they contain.The Baylor College of Medicine,in Houston,has a short code of ethics that sets out basic rules.The code instructs all employees to follow the Baylor Mission Statement,Compliance Program,and Conflict of Interest policy.The code includes basic guidelines for how employees should handle business conduct,financial and medical records,confidentiality,Baylor property,the workplace environment,and contact with the government.

Question 11

Raytheon,a 24 billion USD defense contractor,incorporated into its Leadership Assessment Instrument the requirement of managers to maintain unequivocal commitment to honesty,truth and ethics in every facet of behavior and to conform with the letter and intent of company policies while working to affect any necessary policy change.This is an example of a
A)360-degree evaluation.
B)leadership training program.
C)reward and evaluation system that evaluates manager ethical behavior.
D)reward system that evaluates bottom line performance.

Accepted Answer

Many companies have developed reward and evaluation systems that evaluate whether a manager is acting in an ethical manner.For example,Raytheon,a 24 billion USD defense contractor,incorporated the following items in its Leadership Assessment Instrument: Maintains unequivocal commitment to honesty,truth,and ethics in every facet of behavior and conforms with the letter and intent of company policies while working to affect any necessary policy changes.

Question 12

Proactive measures to prevent organizational ethics problems do not include
A)instituting a reward system which considers outcomes as its primary criterion.
B)using leaders as role models of ethical behavior.
C)issuing statements describing organization commitment to certain standards of behavior.
D)using organization information systems as a control system.

Accepted Answer

A flaw in the organization reward structure may inadvertently cause individuals to act in an inappropriate manner if rewards are seen as being distributed on the basis of outcomes rather than the means by which goals and objectives are achieved.

Question 13

A highly ethical organization must have all the following elements except
A)codes of conduct.
B)corporate credos.
C)payment plans.
D)role models.

Accepted Answer

Integrity-based approaches are driven by a personal and organizational commitment to ethical behavior.A firm must have several key elements to become a highly ethical organization: role models,corporate credos and codes of conduct,reward and evaluation systems,and policies and procedures.

Question 14

The expression the dark side of competition means that
A)illegal behaviors result in penalties.
B)unethical behaviors are more like to take place when competition is intense.
C)competition encourages ethical behavior.
D)good competition is costly.

Accepted Answer

Generally speaking,unethical (or illegal)behaviors are also more likely to take place when competition is intense.Some researchers have called this the dark side of competition.

Question 15

While carefully developed policies and procedures guide behavior,they need to be reinforced with all the following except
A)effective communication.
B)enforcement.
C)monitoring.
D)threats of dismissal.

Accepted Answer

Carefully developed policies and procedures guide behavior so that all employees will be encouraged to behave in an ethical manner.However,they must be reinforced with effective communication,enforcement,and monitoring,as well as sound corporate governance practices.

Question 16

Explain how the five barriers to change that leaders often encounter can prevent a leader from transforming an organization.

Accepted Answer

The answer of Explain how the five barriers to change...

Question 17

What is emotional intelligence (EI)and how is it different from traits such as purely technical skills and cognitive abilities?

Accepted Answer

The answer of What is emotional intelligence (EI)and how is...

Question 18

The senior executive team at AES,a 14 billion USD energy company,agreed to take pay cuts because several employees of the firm lied to the EPA about water quality at an AES owned water treatment plant in Oklahoma.This is an example of
A)employees passing the responsibility to management.
B)leadership shirking responsibility.
C)leadership as role models.
D)a regulatory solution.

Accepted Answer

For good or for bad,leaders are role models in their organizations.Being an effective leader often includes taking responsibility for ethical lapses within the organization,even though the executives themselves are not directly involved.

Question 19

The ethical compass of an organization,in the integrity-based ethics approach to management,consists of the expected ________ and ________.
A)obligations;rules
B)behaviors;penalties
C)responsibilities;aspirations
D)legalities;penalties

Accepted Answer

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

Question 20

In the compliance-based approach to ethics management,leadership is driven by
A)management with input from functional staff.
B)management with input from shareholders.
C)the legal office.
D)the government.

Accepted Answer

According to Exhibit 11.5 on the approaches to ethics management,leadership in the compliance-based approach is driven by the legal office.

Quiz 11: Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Which of the following are used to evaluate whether a manager is acting in an ethical manner?

Compliance-based ethic programs typically are designed by

This legal act provides considerable legal protection to employees of publicly traded companies who report unethical or illegal practices.

In the integrity-based approach to management,ethics is the responsibility of the

Which of the following statements would least likely be found in a corporate credo?

Many situations that a firm faces have regular,identifiable patterns.Leaders tend to handle such routines by establishing or to be followed that can be applied to each occurrence.

Explain why the leadership activities of (1)setting a direction,(2)designing the organization,and (3)nurturing a culture dedicated to excellence and ethical behavior are independent.

Texas Instruments teaches ethics to its employees.They include all levels of the organization in the exchange of knowledge and auditing of behaviors.This is a good example of a(n) ________ ethics program.

Leaders as good role models must walk the talk.This means they must be ________ in their words and actions.

Houston-based Baylor College of Medicine has a ________ that instructs all employees to follow the Baylor Mission Statement,Compliance Program and Conflict of Interest policy.

Proactive measures to prevent organizational ethics problems do not include

A highly ethical organization must have all the following elements except

The expression the dark side of competition means that

While carefully developed policies and procedures guide behavior,they need to be reinforced with all the following except

Explain how the five barriers to change that leaders often encounter can prevent a leader from transforming an organization.

What is emotional intelligence (EI)and how is it different from traits such as purely technical skills and cognitive abilities?

The senior executive team at AES,a 14 billion USD energy company,agreed to take pay cuts because several employees of the firm lied to the EPA about water quality at an AES owned water treatment plant in Oklahoma.This is an example of

The ethical compass of an organization,in the integrity-based ethics approach to management,consists of the expected and .

In the compliance-based approach to ethics management,leadership is driven by