Question 1

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

The integrity-based ethics approach emphasizes that the ethical compass of an organization should consist of the expected responsibilities and aspirations, rather than just rules or legalities. This approach values the internalization of ethical values and encourages employees to act based on their moral principles rather than just follow rules or avoid penalties. Therefore, the best choice is C, which reflects the focus of integrity-based ethics approach.

Question 2

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 3

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 4

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

The statement mentions an instruction given to employees, indicating a written standard to follow. The Baylor Mission Statement, Compliance Program, and Conflict of Interest policy all fall under the umbrella of a code of ethics, making choice C the most appropriate answer. A corporate reward or motto normally wouldn't involve instructions for employees, and a system of evaluation is not mentioned in the statement.

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

A corporate credo typically focuses on values and principles that guide the organization's behavior and decision-making. While financial benefits for stakeholders are important, they are not typically the primary goal stated in a corporate credo. The other options (B, C, D) are all common statements found in corporate credos, emphasizing the importance of employees, professional growth, and community involvement.

Question 6

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

Texas Instruments' ethics program focuses on promoting ethical behavior through values and principles, rather than simply adhering to rules and regulations (compliance-based) or conforming to societal norms (conformance-based). It emphasizes integrity and emphasizes internal monitoring of staff behavior (behavior-based).

Question 7

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

The phrase "the dark side of competition" implies negative or undesirable aspects of competition, and in this context, it refers to unethical behaviors that may occur when competition is intense. Option A is incorrect as it only mentions penalties without specifying what kind of behavior is penalized. Option C is incorrect as it suggests that competition always leads to ethical behavior, which is not necessarily true. Option D is unrelated to the meaning of the expression.

Question 8

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

Accepted Answer

The answer of What is emotional intelligence (EIand how is...

Question 9

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

The senior executive team taking pay cuts shows leadership as role models by taking responsibility for the actions of their employees and demonstrating a commitment to ethical behavior.

Question 10

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.

Question 11

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

Reward and evaluation systems are the most commonly used methods to evaluate whether a manager is acting in an ethical manner. These systems include performance evaluations, feedback systems, and recognition programs that are tied to ethical behavior. Bonuses and penalties, job descriptions, and assessments alone may not be sufficient to ensure ethical behavior.

Question 12

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

Accepted Answer

Payment plans are not necessarily indicative of an organization's ethics. However, codes of conduct, corporate credos, and role models are important elements of an ethical organization.

Question 13

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

Being consistent in both words and actions is a key characteristic of a good role model. This consistency builds trust and credibility, which are essential for effective leadership. While the other options (effective, reliable, trustworthy) are important traits for a leader, they do not fully capture the importance of consistency in demonstrating how to behave and act.

Question 14

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

Policies and procedures are logical choices for handling routine situations in a standardized and uniform manner. A is incorrect because rules and regulations may not be appropriate for every situation and cannot be applied individually. B is similar to C but policies and regulations can be redundant and not all situations require regulations to be developed. D is not appropriate because documents and credos are not equivalent to policies and procedures and are not typically used to handle routine situations.

Question 15

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 16

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

Accepted Answer

In the integrity-based approach to management, ethics is the responsibility of the management. This approach focuses on creating a culture of ethical behavior within the organization, where employees are expected to act with integrity and managers lead by example. It is the responsibility of the management to establish ethical guidelines, communicate them clearly to all employees, and monitor compliance. While shareholders and outside stakeholders may have an interest in ethical behavior, ultimate responsibility lies with the management to ensure that the organization operates in an ethical manner.

Question 17

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

The incorporation of ethical behavior as a requirement in the Leadership Assessment Instrument shows that Raytheon has a reward and evaluation system that evaluates manager ethical behavior.

Question 18

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

While enforcement and monitoring are necessary to ensure compliance with policies and procedures, threatening employees with dismissal may create fear and resentment rather than promoting adherence to the guidelines. Positive reinforcement through effective communication, recognition of good behavior, and rewards for compliance can be more effective in motivating employees to follow policies and procedures.

Question 19

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)...

Question 20

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 provides legal protection for employees of publicly traded companies who report unethical or illegal practices, known as whistleblowers. This act was passed in response to high-profile financial scandals involving companies such as Enron and WorldCom. It requires companies to establish codes of ethics, non-retaliation policies for whistleblowers, and to disclose any potential conflicts of interest among their board members and executives.

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

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

Proactive measures to prevent organizational ethics problems do not include

Compliance-based ethic programs typically are designed by

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.

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

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.

The expression the dark side of competition means that

What is emotional intelligence (EIand 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

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

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

A highly ethical organization must have all the following elements except

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

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

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

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

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.

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