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Business Ethics
Q:
Transactional leaders rely on which two factors?
a. Idealized influence and individualized consideration
b. Contingent reward and management by exception
c. Intellectual stimulation and inspirational motivation
d. Intellectual stimulation and laissez-faire leadership
Q:
___________ may have good ethical compasses, but they don't know their corporation's policies. Without guidance, ethics may not even be a consideration.
a) Loose ammo
b) Loose cannons
c) Misguided cannons
d) Grenades
Q:
Which of the following is true of benevolent paternalistic leadership?
a. Considerate behavior
b. Care for employees outside of the workplace
c. Make decisions for followers
d. All of the above
Q:
According to research, what percent of the information that passes through the grapevine is accurate?
a) Between 10 to 30%
b) Between 30 to 50%
c) Between 50 to 70%
d) Between 70 to 90%
Q:
Psychological capital is made up of feelings of competence, hope, optimism and ____________.
a. humility
b. courage
c. resilience
d. emperance
Q:
All of the following about Ethics Officer is true EXCEPT:
a) The ethics officer is typically a first-line to middle-level manager.
b) The ethics officer typically reports directly to the CEO.
c) The ethics officer can be hired from inside or outside of the firm.
d) The ethics officer can also be called the "director of ethics" or "director of internal audit."
Q:
All of the following are true statements about servant leadership EXCEPT:
a. It is only practiced in the United States
b. Rests on ethical character
c. Is person-centered
d. Promotes justice
Q:
Which of the following is true?
a) Fines applied by the US Sentencing Commission have decreased on average since 1990.
b) Only the presence of a code of ethics in the organization is necessary to meet the US Sentencing Commission's idea of an effective compliance program.
c) The US Sentencing Commission allows prosecutors to assess the quality of an organization's compliance program in order to determine appropriate penalties.
d) The 1987 sentencing guidelines mandated incarceration for only the worst felony offenders.
Q:
_______________ leadership behavior serves both the organization and followers.
a. Laissez-faire
b. Derailed
c. Tyrannical
d. Constructive
Q:
Under the 2004 sentencing guidelines, the __________ are expected to oversee the compliance and ethics program while __________ is/are charged with ensuring its effectiveness within the company.
a) board of directors; top management
b) board of directors; the CEO
c) CEO; general managers
d) company's ethics officer; board of directors
Q:
All of the following are associated with servant leadership EXCEPT:
a .Building community
b. Empathy
c. Public speaking
d. Stewardship
Q:
Under the U. S. Sentencing Guidelines, the same crime can be subject to a wide range of penalties. In determining the penalty, the following will be considered:
a. Prior violations
b. Whether management reports itself
c. Whether management cooperates with authorities
d. Whether the firm has an effective program in place to prevent and detect illegal behavior
e. All of the above
Q:
Transformational leaders act as coaches and mentors to followers. This is described as:
a. Idealized influence
b. Inspirational motivation
c. Intellectual stimulation
d. Individualized consideration
Q:
The US Sentencing Guidelines use a "carrot and stick" approach to managing corporate crime. What is meant by the use of "carrot" and "stick"?
a) The carrot dangles at the end of the stick as an incentive for organizations to continue to behave ethically.
b) The carrot refers to the guidelines as "food for thought" and the stick refers to the punishment if the guidelines are not followed.
c) The carrot refers to incentives in the guidelines to behave ethically and the stick refers to the punishment if the guidelines are not followed.
d) None of the above.
Q:
Helene sits in her office and rarely interacts with her staff or provides direction. She is demonstrating which leadership dimension?
a. Contingent reward
b. Management by exception
c. Passive-avoidant
d. Careless
Q:
An increase in the number of calls on the "ethics action line" is a sign that there are more reportable problems in the company now.
Q:
Volunteering for the dirtiest job at the plant is self-sacrifice in ____________
a. the division of labor
b .the distribution of rewards
c. the exercise of power
d. the use of discretionary time
Q:
___________________ leaders are particularly skilled at manipulating others for their own gain.
a. Impulsive
b. Narcissistic
c. Extraverted
d. Machiavellian
Q:
Organizational experience suggests that an "ethics action line" is unnecessary because it promotes "tattling" on people an employee doesn't like.
Q:
Which type of bad leader only cares about her/his immediate followers?
a. Callous
b. Insular
c. Rigid
d. Evil
Q:
Command-and-control is a term frequently used to describe ethics initiatives that begin at the top of the organization and work their way down, level by level.
Q:
According to Peters and Waterman, an effective leader must be the master of two ends of the spectrum: ideas at the highest level of abstraction and actions at the most mundane level of detail.
Q:
Julie must decide if she should allow one of her employees to violate company policy to go on vacation. She is faced with which type of ethical leadership challenge?
a. Challenge of deceit
b. Challenge of consistency
c. Challenge of responsibility
d. Challenge of loyalty
Q:
Research suggests that ethics only needs to be communicated in orientation materials for new employees.
Q:
Admitting our duties to followers is key to meeting which ethical leadership challenge?
a. Challenge of information
b. Challenge of responsibility
c. Challenge of loyalty
d. Challenge of consistency
Q:
Which of the following contributes to the escalation of CEO salaries?
a. Gains in stock prices
b. Boards fear losing executives to other companies
c. CEOS want to make as much as CEOS at other companies
d. All of the above
Q:
Seldom should ethics information be included in a company's external website.
Q:
Which of the following is MOST associated with the moral person dimension of ethical leadership?
a. Act as role models
b. Communicate frequently about mission and values
c. Punish unethical behavior
d. Reward ethical behavior
Q:
Depending on the organization's culture, the word "ethics" may carry a negative connotation and need to be replaced with "business conduct."
Q:
Centralized ethics offices are nearly always the best choice as these provide for greater consistency and commitment to the organization's key values.
Q:
According to ___________________ theory, followers emulate the ethics of their leaders.
a. Servant leadership
b. Transformational leadership
c. Social Learning
d. None of the above
Q:
The job of ethics officer has been called "the newest profession in American business."
Q:
People knew Ricardo cared deeply for them. He was known for putting other's needs above his own, even if it came at a cost. Ricardo's leadership style might best be described as:
a. Transactional leadership
b. Servant leadership
c. Transformational leadership
d. Authentic leadership
Q:
According to ethics and compliance officers, a respected and trusted insider who knows the company's culture and people is a preferable choice for a firm's ethics or compliance officer.
Q:
Stefanie had a way of empowering her staff. If a problem arose, Stefanie dealt with the issue head on while also inspiring those around her. Stephanie is an example of a:
a. Narcissist
b. Transformational leader
c. Transactional leader
d. All of the above
Q:
What type of leader is one who is self-centered, highly manipulative, promotes his or her self, is emotionally cold, and can engage in aggressive behavior?
a. Narcissistic
b. Impulsive
c. Machiavellian
d. Unrealistic
Q:
According to United States v. Booker, judges are no longer required to follow strictly the U. S. Sentencing Guidelines.
Q:
An organization can be convicted of a crime even if only one employee breaks the law.
Q:
Which is a TRUE statement about toxic leadership?
a. Toxic leaders can exist in every field of business and leadership
b. Toxic leaders have dysfunctional characteristics that can greatly affect employees and organizations
c. Toxic leaders behave in destructive behaviors
d. All of the above
Q:
Pursuant to the U. S. Sentencing Guidelines, an organization can be convicted even if only one employee is caught breaking the law.
Q:
Leon's boss was extremely hard working and extremely intelligent; however, he was also unyielding and unwavering on expectations of employees. The boss rarely let employees take vacation or sick time and he always expected employees to work extra hours without extra pay. Leon's boss is an example of a(n):
a. Corrupt leader
b. Incompetent leader
c. Rigid leader
d. Evil leader
Q:
In 2004 Congress created the U.S. Sentencing Commission in response to criticism of judicial discretion in sentencing and perceived disparities between sentences for "white-collar" and other types of crimes.
Q:
Rhonda was the owner of the company. She often hired family members to work the business and gave them special privileges like extra time off and higher pay. Rhonda failed to meet which challenge of leadership?
a. Challenge of Consistency
b. Challenge of Privilege
c. Challenge of Information Management
d. Challenge of Responsibility
Q:
Briefly describe and provide examples of three steps involved in changing an organization's culture.
Q:
Manager, Rachel, knows that there will be a reduction in force for the company. Her boss told her not to tell anyone until the executive leadership announces the layoffs. This is an example of:
a. Challenge of Responsibility
b. Challenge of Information Management
c. Challenge Consistency
d. Challenge of Privilege
Q:
Briefly describe what is meant by alignment of ethical culture. Provide an example of how an ethical culture might be misaligned.
Q:
Responsible leaders:
a. Acknowledge and try to correct ethical problems
b. Admit their duties to followers
c. Hold themselves to the same standards as their followers
d. All of the above
Q:
Which of the following is false?
a) Any attempt to change an organization's ethics must consider the entire cultural system.
b) A cultural system includes both formal and informal systems.
c) An effective culture change may take as long as 1 to 2 years.
d) New rules and values must be reinforced via training programs and reward systems.
Q:
What is a negative outcome of leaders having too much power?
a. Too much focus
b. Possible corruption
c. Minimal trust in self
d. A meek personality
Q:
Under which of these climates little attention is given to the social consequences of one's actions?
a) Benevolence climate
b) Self-interest climate
c) Rule-based climate
d) Fairness climate
Q:
How does minority opinion benefit a small group?
Q:
When an organization "cares" about multiple stakeholders, including employees, customers, and the broader community and public, it is said to have which of these?
a) Benevolence climate
b) Self-interest climate
c) Rule-based climate
d) Fairness climate
Q:
Why do groups often exert more over their members than do managers?
Q:
_____ tell people symbolically what the organization wants them to do and how it expects them to do it.
a) Heroes
b) Myths
c) Norms
d) Rituals
Q:
Describe how groups imprison their own members.
Q:
"The way we do things around here" addresses an organization's
a) heroes.
b) rituals.
c) norms.
d) myths.
Q:
What is your greatest fear of standing alone?
Q:
______ are symbolic figures who set standards of performance by modeling certain behaviors, and they can be the organization's formal leaders.
a) Heroes
b) First-line managers
c) Large investors in an organization
d) Hypocritical leader
Q:
How do you know if a group is caught in the Abilene Paradox?
Q:
According to the Executive Ethical Leadership Reputation Matrix, ___________ is an executive characterized as a strong "moral person" and a strong "moral manager."
a) Unethical leader
b) Ethical leader
c) Ethically neutral leader
d) Hypocritical leader
Q:
Identify and explain the five psychological factors that contribute to mismanaged agreement (the Abilene Paradox).
Q:
According to the Executive Ethical Leadership Reputation Matrix, ___________ is an executive characterized as a weak "moral person" and a strong "moral manager."
a) Unethical leader
b) Ethical leader
c) Ethically neutral leader
d) Hypocritical leader
Q:
Why is it hard to get organizational subgroups to cooperate?
Q:
The "moral person" component of ethical leadership:
a) Tells employees how the leader expects them to behave.
b) Tells employees how the leader is likely to behave.
c) Shows that ethics and values are an important part of the leader's message.
d) Demonstrates a reputation for ethical leadership among employees.
Q:
Bringing in outsiders is one way to stop the escalation of commitment.a. Trueb. False
Q:
Why did the US Sentencing Commission begin to focus on the ethical culture of the organization in 2004?
a) Researchers had just recently introduced the idea of an "ethical culture" in 2002.
b) More and more consultants were discussing "ethical culture" in their programs.
c) Prior to the change, organizations used formal programs as "window dressing".
d) None of the above
Q:
Member of virtual teams are more likely to loaf than in face-to-face teams.
a. True
b. False
Q:
Which of these is NOT a part of informal system in an organization?:
a) Norms
b) Rituals
c) Language
d) Decision processes
Q:
In groupthink, putting pressure on dissenters is a sign of closed-mindedness.
a. True
b. False
Q:
Weak organizational cultures are:
a) desirable if an organization has many subcultures.
b) desirable if an organization wants diversity of thought and action.
c) desirable if an organization wants behavioral consistency.
d) undesirable in all situations.
Q:
As a leader, state your position on an issue early in the group's discussion.
a. True
b. False
Q:
The only way to determine if the culture is aligned to support ethical behavior is to conduct regular, comprehensive audits of all relevant cultural systems, both formal and informal.
Q:
Groups have the tendency to take more risks than individuals.
a. True
b. False
Q:
Companies that look for advice from consultants will do well to find a "spray and pray" plan.
Q:
Concertive control (unobtrusive control) often goes unrecognized.
a. True
b. False
Q:
Given the less hierarchical organizational structures that are more common place today, it is less important for to have strongly aligned ethical culture to guide employees in their independent decision-making.
Q:
Minority opinion improves group decision making effectiveness only if the group changes its collective mind.
a. True
b. False
Q:
The more a firm demands unquestioning obedience to authority, the more likely the firm will experience higher levels of unethical conduct among their employees.
Q:
Valence refers to the desirability of group outcomes for individual members.
a. True
b. False
Q:
Today, with advances in technology, very few modern organizations are bureaucratic.