Q&A Hero

Q: Only since Enron's collapse have ethicists and business professionals really been concerned about the increasing focus on "short-term" earnings.

Q: When it comes to ethics, what is a problem with many organizational reward systems? a. They are too complicated b. They reward the wrong (unethical behaviors) c. They are too expensive d. They focus too much on processes and not enough on results

Q: Because stakeholders' interests frequently do not overlap, an organization is able to focus on one stakeholder at a time.

Q: The "ladder of corruption" operates in which immoral socialization process? a. Co-optation b. Compromise c. Incrementalism d. Collaboration

Q: It's clear that the system for advertising drugs and bringing them to market poses huge ethical issues for the drug companies, many of which have been admired for their ethical reputations.

Q: One of the most common faults in ethical decision making is to ignore the long-term consequences of a decision.

Q: Rodrico tells his subordinates to make their quarterly financial goals by any means possible. His followers are likely to feel a sense of a. anomie b. freedom c. resistance to authority d. failure

Q: To be effective, ethics officers must a. Focus exclusively on their ethics duties b. Function independently c. Have high power and status d. All of the above

Q: At the turn of the last century, consumers didn't even have the right to sue a manufacturer for a defective product.

Q: Structure influences moral behavior in all of the following ways EXCEPT: a. Allocation of decision-making rights b. Creation of oral histories c. Authority relationships d. Identifying who is accountable

Q: Reference: Matching Key Stakeholders and Regulatory Agencies a) Guard rights of shareholders b) Guard rights of consumers c) Guard rights of employees d) Guard rights of the community The Federal Communication Commission (FCC)

Q: All of the following are examples of the formal socialization process EXCEPT: a. An applicant visiting a company website b. A mentor assigned to help a new employee c. A training session for new workers d. A supervisor explaining company policies

Q: Reference: Matching Key Stakeholders and Regulatory Agencies a) Guard rights of shareholders b) Guard rights of consumers c) Guard rights of employees d) Guard rights of the community The Environmental Protection Agency (EPA)

Q: Sometimes codes of ethics are used to force members to comply with organizational rules. This reflects which metaphor? a. Code as rule-book b. Code as magnifying glass c. Code as shield d. Code as club

Q: Reference: Matching Key Stakeholders and Regulatory Agencies a) Guard rights of shareholders b) Guard rights of consumers c) Guard rights of employees d) Guard rights of the community The Federal Reserve Board

Q: Which of the following accounts for the poor performance of many corporate boards? a. Members serve on too many boards b. CEOS serve on each others' boards c. Members who disagree are pressured by other board members d. All of the above

Q: Reference: Matching Key Stakeholders and Regulatory Agencies a) Guard rights of shareholders b) Guard rights of consumers c) Guard rights of employees d) Guard rights of the community The Federal Trade Commission

Q: All of the following are characteristic of effective ethics training EXCEPT: a. Integrated into the entire curriculum b. Presented in a lecture format c. Taps into the experiences of participants d. Focuses on ethical problems unique to the organization

Q: Reference: Matching Key Stakeholders and Regulatory Agencies a) Guard rights of shareholders b) Guard rights of consumers c) Guard rights of employees d) Guard rights of the community Occupational Safety and Health Administration (OSHA)

Q: _____________ outline an organization's reason for being. a. Core values b. Mission statements c. Codes of ethics d. Corporate policies

Q: Reference: Matching Key Terms and Definitionsa) Stakeholdersb) Primary stakeholderc) Secondary stakeholderOpinion formers, community, and authorities.

Q: A strong culture in which norms and values are very different from the rest of society is referred to as a: a. Social womb b. Deviant subculture c. Social cocoon d. None of the above

Q: Reference: Matching Key Terms and Definitionsa) Stakeholdersb) Primary stakeholderc) Secondary stakeholderIndividuals who have an interest/claim in what the organization does or how it performs.

Q: Reference: Matching Key Terms and Definitionsa) Stakeholdersb) Primary stakeholderc) Secondary stakeholderOwners, customers, and employees.

Q: Which of the following is a true statement about codes of ethics? a. Guarantee moral improvement b. Have no relationship with an organization's ethical performance c. Should be part of every organization's ethical culture d. All of the above

Q: According to the Ethical Climate Questionnaire, which type of climate is MOST likely to encourage immoral behavior? a. Rules b. Law and code c. Independence d. Instrumental

Q: Referring to the Corporate Social Responsibility (CSR) pyramid, how do legal responsibilities differ from ethical responsibilities? Provide specific examples to support your distinction.

Q: Typical Codes of Conduct cover conduct described below. In the aftermath of Bhopal, the chemical industry wishing to demonstrate responsible corporate citizenship has added which additional behaviors set out below. a. Legal compliance b. Continuous improvement, communication with external stakeholders and training of suppliers on the standards c. Community awareness and emergency response d. Pollution prevention e. Safe distribution of chemicals in transit f. Employee health and safety g. Safe handling of chemicals from manufacture through disposal

Q: Which type of ritual is designed to strengthen and improve the current system? a. Rite of enhancement b. Rite of renewal c. Rite of conflict resolution d. Rite of degradation

Q: Which of the items listed is NOT a product of a "favorable corporate reputation." a. Charge more for its products and services b. Attract, Hire and keep higher quality applicants/employees c. Enhance their access to better capital markets d. Attract investors e. Ignore the Foreign Corrupt Practices Act

Q: Followers pick up on ethical priorities through what leaders measure and control. This is which cultural change mechanism? a. Reactions to critical incidents b. Role modeling c. Selection d. Attention

Q: Erika knows the right thing to do by watching her leader Ellen. Ellen is shaping the organization's ethical culture through a. Rites of passage b. Selection c. Attention d. Role modeling

Q: Interface Carpets, a stellar example of sustainability in action, lists seven fronts of Mount Sustainability. Which is NOT one of the firm's goals to meet its total sustainability status? a. Redesigning commerce b. Sensitizing stakeholders c. Using renewable energy d. Ensuring benign emissions e. Eliminating waste f. Competing through cost

Q: Which type of ritual has manifest (obvious) ethical functions? a. Rites of passage b. Rites of renewal c. Rites of conflict reduction d. Rites of integration

Q: The term __________ is sometimes used to represent harmony among three dimensions of economic, social and environmental impacts. a) philanthropic b) ethics c) bottom-line d) sustainability

Q: According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is a societal expectation that is not necessarily codified into law. a) economic b) ethical c) legal d) philanthropic

Q: Which of the following terms refers to the sense of normlessness and unease that results when rules lose their force. a. Powerlessness b. Drifting c. Despair d. Anomie

Q: According to the Corporate Social Responsibilities (CSR) pyramid, the __________ responsibility is considered to be of primary importance to organizations. a) economic b) ethical c) legal d) philanthropic

Q: An organization's core ideology is made up of a. The business plan and marketing strategy b. ore values and long-range objectives c. Core values and purpose/mission d. Code of ethics and code of conduct

Q: ______________ describes how employees gradually move up the ladder of corruption during the socialization process. a. Co-option b. Incrementalism c. Compromise d. Escalation

Q: Corporate social responsibility (CSR) consists of which four kinds of responsibilities: a) Economic, ethical, societal, and altruistic b) Economic, legal, ethical, and altruistic c) Fiscal, legal, societal, and philanthropic d) Economic, legal, ethical, and philanthropic

Q: We form impressions about possible careers during which stage of the socialization process? a. Encounter b. Organizational anticipatory socialization c. Vocational anticipatory socialization d. Metamorphosis

Q: In the __________ perspective, social responsibility is seen as appropriate because it is "the right thing to do." a) pragmatic b) economic c) ethical d) strategic

Q: The ______ reason, why corporations should care about social responsibility, is based upon the recognition that business must use its power responsibly in society or risk losing it. Corporations exist as legal entities with certain advantages (such as limited liability) because society allows them to do so, and these corporate rights and advantages can be removed from firms that are perceived to be irresponsible. a) pragmatic b) economic c) ethical d) strategic

Q: Which statement best describes "socialization"? a. A person trying to talk with all of their colleagues b. The process of being a group member c. The process of finding your way to get hired for an ethical organization d. The process an unethical person goes through to become ethical

Q: Over the long run, to be successful, firms with excellent socially responsible strategies need to worry less about their business strategies.

Q: If Emma wanted to change some of the ethical cultural climate around her office, what is a way she could provide ethical leadership? a. Pay attention to her ethical priorities and act on it b. Role model ethical behavior c. Reallocate funds and resources toward desired ethical standards d. All of the above

Q: Some analysts argue that the more stringent regulatory environment resulting in the post Sarbanes-Oxley period increases shareholder confidence in financial reporting.

Q: Tim knew his office culture well. The phrase "Customers first" was frequently used in conversations and people were described as "partners." Which informal element of ethics is described above? a. Language b. Norms c. Rituals d. Stories

Q: Which best describes a mission statement's purpose? a. Communicates the central identity and purpose of an organization b. Communicates core values to inform organizational decision-making c. Reflects the ideals of its members d. All of the above

Q: Section 404 of the Sarbanes-Oxley Act (SOX) is credited with improving internal financial control systems in public companies even if the cost of doing so is thought to be exorbitant by small firms.

Q: Since the passage of Sarbanes-Oxley few firms have been prosecuted and fewer high level executives have received jail terms proving convincingly that the legislation is flawed.

Q: Which is NOT an element of informal ethics? a. Boards of directors b. Language c. Stories d. Rituals

Q: The Social Investment Forum reported that socially responsible investing grew from $40 billion in 1984 to nearly $4 trillion in 2012.

Q: Which is NOT a formal element of ethics culture for an organization? a. Core values b. Ethics officers c. Norms d. Structure

Q: A firm's financial responsibility is primary and the bedrock of corporate social responsibility because without financial viability, the other responsibilities become moot issues.

Q: At Carol's company, employees routinely talk about the ethical consequences of their decisions. This suggests that Carol is working for which kind of organization? a. Ethically decoupled b. Ethically transformed c. Missional d. Insular

Q: Which is NOT a characteristic of ethically decoupled organizations? a. Invest little in building a positive ethical climate b. Exhibit low-level moral reasoning c. Show high concern for the organization d. Give power away

Q: The economic responsibilities of a firm involve its primary function of producing goods and services that consumers need and want, while making an acceptable profit.

Q: Which is NOT a characteristic of an ethically transformed organization? a. Reacts to destructive behavior b. Exceeds legal requirements c. Swiftly punishes misbehavior d. Seeks to prevent destructive behaviors

Q: Even if socially responsible business practices are costly, firms must perform them anyway.

Q: The pragmatic approach is more proactive and affirmative than the strategic approach because it asks companies to identify and acknowledge company activities that can do harm and encourages firms to scrutinize their practices and address potential harms by focusing on their own value-chain activities.

Q: Name and describe the five types of follower courage.

Q: What three factors should whistle-blowers consider before going public with their concerns?

Q: The most strategic CSR initiatives are those that remove the social dimension from the firm's overall competitive strategy.

Q: According to Harvard Professor Michael Porter, the strategic reason for having CSR play a prominent role in a firm is that in evaluating the firm's CSR, executives should begin by scrutinizing the social impacts of the company's value chain.

Q: Identify and explain the components of psychological ownership.

Q: Constructive engagement of stakeholders, including critics, is replacing the "just trust us" plea of yesteryear as executives conclude that the plea rarely works in a world of regular corporate scandals.

Q: Name and explain the five behavior patterns of exemplary leaders. Identify the five strategies that can keep you from becoming a toxic follower.

Q: An organization that does not fulfill its philanthropic responsibilities is acting unethically.

Q: Contrast managing up with leading up.

Q: Explain the difference between conforming and colluding followers

Q: _____, such as environmental damage, are costs to society that are produced by companies but not reflected in the company's cost structure.

Q: ______ ______ ______ (3 words) are those shareholders who clearly care about the financial and the social bottom line of a business.

Q: Why is cynicism damaging to followers and their organizations?

Q: The late economist ________ said that management should "make as much money as possible while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical custom."

Q: Whenever possible, let individuals self-select themselves for leadership positions. a. True b. False

Q: Highly engaged followers are always ethical followers. a. True b. False

Q: The __________ reason for CSR offers managers a stronger basis for making decisions about which stakeholders and social responsibility issues should garner their attention and resources given the multitude of options available.

Q: The ________ reason for corporate social responsibility argues that businesses, as part of society, have a responsibility to behave in the right way.