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Management
Q:
Blue Inc., a highly profitable consumer goods manufacturing company, invests in a number of social responsibility initiatives that in turn generate profit for the company. Which feature of corporate and social performance is illustrated in the given scenario?
a. Entitlement
b. Deontological theory
c. Virtuous circle
d. Whistleblowing
Q:
Which of the following examples illustrates an effort toward building a socially responsible and ethical organization?
a. Rodger, a senior executive in a company, uses the company car allotted to him for personal purposes claiming that he is eligible to do so because of his position.
b. Drive Inc., a tire manufacturing company, uses solar panels to generate electricity for running the equipment in its inspection and packaging division.
c. White Inc., a large pharmaceutical company, fires those employees who protest against unethical actions and report wrongdoings to government authorities.
d. Dave, a team manager, often justifies his unethical actions by stating that he did so for the benefit of the team and nobody stopped or questioned him.
Q:
Which of the following examples illustrates a method for creating a socially responsible and ethical organization?
a. ABC Inc., a large industrial group, encourages its senior managers to set examples for other employees by being fair and just in their actions.
b. A company immediately terminates employees who report wrongdoings of the company to government authorities and ensures they are not employed elsewhere.
c. Shine Inc., a chemical supplier, adjusts its balance sheets to show profit despite a reduction in sales in order to reinforce the confidence of its shareholders.
d. A company focuses on achieving its annual targets in terms of revenue irrespective of the impact on its employees and the environment.
Q:
A journalist questions the director of a chemical manufacturing company about the possible hazards of a recently introduced chemical for use in water purification systems. The journalist's question is based on the _____.
a. deontological theory of justice
b. universalist principle of disclosure
c. utilitarian notion of doing the greatest good for the greatest number of people
d. deontological principle of reversibility that evaluates ethics by reversing the decision maker
Q:
The employees of a company feel that management does not make fair decisions when increasing salaries or promoting people. Which ethical screen is used by the employees to question the decisions of management in the given example?
a. Justice
b. Reversibility
c. Intuition
d. Utilitarianism
Q:
Evan, a manager, strongly believes in the concept of power sharing. Therefore, Evan is most likely to _____.
a. show a consistency between word and deeds and keep promises
b. allow for group member input into decisions and listen to their suggestions
c. care about the environment in such ways as being a champion of recycling
d. be moral enough just to look good
Q:
Amanda, a business analyst, presents false research findings to her manager to prove that the desired results have been achieved and to get appreciation for her work. Which level of moral development is illustrated in the given scenario?
a. conventional level
b. postconventional level
c. preconventional level
d. nonconventional level
Q:
Martin, a senior manager in a company, bribes a government officer to secure a government contract. He justifies his actions stating that he acted in the best interests of the company and nobody stopped him. In the given scenario, Martin is justifying his actions by resorting to _____.
a. rationalization
b. whistleblowing
c. entitlement
d. power sharing
Q:
Arnold, a team manager, believes in treating all his team members equally. He adheres to his beliefs irrespective of the circumstances. Which ethical leadership behavior is Arnold demonstrating?
a. Entitlement
b. Integrity
c. Whistleblowing
d. Rationalization
Q:
Studies have shown that employees working in an ethical environment tend to:
a. deliver superior performance.
b. have low levels of motivation.
c. overlook their ethical flaws.
d. focus solely on personal gains.
Q:
The virtuous cycle in relation to social responsibility suggests that
a. recycling pays off in increased profits.
b. ethical executives attract ethical employees.
c. corporate social performance and corporate financial performance feed and reinforce each other.
d. employees disclosing organizational wrongdoing to authorities should be severely penalized.
Q:
Corporate philanthropy is most effective when:
a. large sums of money are given blindly to numerous causes.
b. records of donations are meticulously kept for tax purposes.
c. charities are trusted use the money wisely and efficiently.
d. the company seeks follow-up data to measure the maximum return in terms of social impact.
Q:
An example of a whistleblower (in relation to ethics) would be a(n):
a. security guard who sends notices to employees who drive too fast in the company parking lot.
b. executive who imposes fines on employees who behave unethically.
c. company specialist conducting training programs about ethics.
d. bookkeeper who tells a journalist about fraudulent accounting in the company.
Q:
An example of a formal mechanism for dealing with ethical problems is:
a. leading by example.
b. having an ethics committee for reviewing complaints about ethical problems.
c. conducting training programs in ethics for organizational employees .
d. accepting whistleblowers without penalizing them.
Q:
A recommended approach for promoting ethical behavior throughout an organization is to:
a. reward employees based on their seniority.
b. impose severe penalties on whistleblowers.
c. hire only those candidates who have taken a course in ethics.
d. reward people who have performed well and behaved ethically.
Q:
Chief financial officer Barry submits travel and expense reports that are completely genuine and encourages employees in his division to always give accurate and correct information. Barry is using the ethical initiative called:
a. leading by example.
b. open-book management.
c. accepting whistleblowers.
d. developing formal mechanisms for dealing with ethical problems.
Q:
When senior management provides strategic leadership for ethics:
a. senior managers emphasize being whistle blowers.
b. marketing strategy is converted into ethical strategy.
c. senior managers become ethics leaders.
d. the roles of stockholders and shareholders become reversed.
Q:
The approach that focuses on social responsibility by finding out better ways for leaders to make a positive contribution to society is known as the _____ approach.
a. whistleblowing
b. Thou Shalt
c. Thou Shalt Not
d. entitlement
Q:
An opportunity for an organization to practice social responsibility involves:
a. developing a sense of entitlement.
b. placing personal interests above company interests.
c. imposing harsh penalties on whistleblowers.
d. working with its supplier to improve working conditions.
Q:
Which of the following is a recommended initiative for achieving an ethical and socially responsible organization?
a. Establish severe penalties for whistleblowers.
b. Encourage employees to learn ethics by trial and error.
c. Provide strategic leadership directed toward the goal.
d. Develop informal mechanisms for dealing with ethical problems.
Q:
A recent development in corporate philanthropy is for corporate leaders to demand:
a. a good return on investment, in terms of social impact.
b. that the institutions receiving the money become good customers.
c. that all recipients of their generosity believe in capitalism.
d. respect and recognition from all recipients.
Q:
An example of an executive leader helping sustain the environment would be to:
a. use as much renewable energy as possible at the company.
b. create attractive designs on packages.
c. construct new buildings rather than preserve old ones.
d. charge customers for shipping and delivery.
Q:
Which of the following is the clearest example of socially responsible behavior on the part of a business firm?
a. Ensuring that all workers get paid
b. Focusing on profit maximization at all costs
c. Creating a pleasant workplace
d. Avoiding involvement in political causes
Q:
Corporate social responsibility centers on a firm's:
a. contributions to charity.
b. positive contribution to society.
c. adherence to laws.
d. focus on maximizing profit.
Q:
Many unethical behaviors at the leadership level have:
a. resulted in a consistency between word and deed.
b. helped many young people start a business career.
c. resulted in mere accusations and allegations.
d. led to the layoffs of thousands of workers.
Q:
Which one of the following questions in an ethical screen deals with the philosophical principle of reversibility?
a. How does it smell?
b. What would you tell your child to do?
c. Who gets hurt?
d. Is it fair?
Q:
An ethical screen is used primarily when facing a situation that:
a. is in opposition to the organizational culture.
b. affects the majority of employees within a firm.
c. involves deciding if an act is ethical or unethical.
d. is widely recognized as criminal behavior.
Q:
Chief operations officer Joan has an ethical mind, so she has a point of view that helps workers:
a. feel entitled to whatever they can get away with or steal.
b. lose their sense of reality.
c. aspire to do good work that matters to many people.
d. focus on maximizing personal gains.
Q:
According to the idea of entitlement, some corporate executives behave unethically because they feel they are:
a. entitled to make up for a poor childhood.
b. entitled to whatever they can get away with or steal.
c. servants of an unfair system.
d. underpaid in comparison to top professional athletes and entertainers.
Q:
Chief financial officer Justin took his family on an Asian vacation using the company jet. He excuses his behavior by stating, "My family and I were spreading goodwill around the world for the company." Therefore, Justin tries to defend his actions by:
a. showing concern for stakeholders.
b. rationalizing.
c. empathizing.
d. exercising his rights as a senior executive.
Q:
A leader at the postconventional level of moral development is likely to:
a. attempt to do the most good for the most people.
b. maximize personal gain in most business transactions.
c. falsify earnings statements to be eligible for a big bonus.
d. be moral just enough to look good.
Q:
A major source of individual differences in ethics and morality among leaders is:
a. the products and services offered by the firm.
b. government regulations about ethics.
c. their tendency to focus on all stakeholders.
d. their level of greed, gluttony, and avarice.
Q:
A principle of ethical and moral leadership is to:
a. regularly publicize moral victories.
b. maximize personal returns in business transactions.
c. pay attention to all stakeholders.
d. maximize shareholder wealth.
Q:
Rita is a leader of high integrity. According to the technical meaning of integrity, Rita will:
a. have high morals in every facet of her life.
b. be kind to employees even if she does not like them.
c. steal only to benefit poor people.
d. stick to the principles she thinks are right.
Q:
An authority cited in the leadership text argues that ethics is at the center of leadership because a rational leader:
a. wants to create a positive public appearance.
b. promote conflicts of interest.
c. attempts to keep profits at a bare minimum.
d. wants everybody to benefit.
Q:
Ethics can be considered the:
a. vehicle for putting values into action.
b. opposing force to values.
c. equivalent of organizational culture.
d. opposite of moral leadership.
Q:
Ethics deals mostly with:
a. being socially responsible.
b. separating right from wrong.
c. legal versus illegal behavior.
d. an action rather than its intent.
Q:
According to the virtuous circle, corporate profits→good social performance→more profits→more good social performance.
a. True
b. False
Q:
Louise, the managing director of a company, should put personal interests ahead of the company's interests to create a socially and ethically responsible company.
a. True
b. False
Q:
To maintain an ethical climate, many companies today create the position of whistleblower, and the person holding this job investigates potential ethical violations full time.
a. True
b. False
Q:
A recommended way of creating a socially responsible organizational culture is for managers to lead by example.
a. True
b. False
Q:
Strategic leadership and social responsibility include the idea that senior managers set the tone for ethics and social responsibility throughout an organization.
a. True
b. False
Q:
A key part of a company's designation as the "best company to work for" is an evaluation of the company's organizational culture.
a. True
b. False
Q:
Corporate social responsibility deals with a firm's impact on society more than its impact on company employees.
a. True
b. False
Q:
One of the questions included in an ethical screen is, "How does it [the decision in question] smell?"
a. True
b. False
Q:
Information technology manager George displays an ethical mind as a leader when he makes up a list of company workers who do not deserve to be protected against computer viruses.
a. True
b. False
Q:
Several psychiatrists and corporate governance experts claim that some executives are unethical because they feel they are entitled to whatever they can get away with or steal.
a. True
b. False
Q:
Bertha, a finance manager, engages in rationalization when she creates a few false invoices and then says, "I was only trying to lower the company's tax burden."
a. True
b. False
Q:
Rationalization can lead to unethical behavior because people will focus on the intention of the act rather than the act itself.
a. True
b. False
Q:
A leader who focuses on maximizing shareholder wealth will automatically behave ethically from the standpoint of the principle "pay attention to all stakeholders."
a. True
b. False
Q:
Sylvie, a manager, regularly tells her team members about the importance of treating people fairly, and she also treats her employees in a fair manner. Hence, Sylvie is said to possess integrity.
a. True
b. False
Q:
An important goal of a rational leader is to merge the interests of all parties so that everyone benefits and the organization becomes prosperous.
a. True
b. False
Q:
Ethics deals only with compliance to rules and regulations.
a. True
b. False
Q:
In path-goal theory, the participative leader is best suited for improving the morale of:
a. well-motivated employees who perform repetitive tasks.
b. well-motivated employees who perform nonrepetitive tasks.
c. poorly-motivated employees who perform repetitive tasks.
d. poorly-motivated employees who perform nonrepetitive tasks.
Q:
In path-goal theory, the directive leader improves morale when:
a. group members perform repetitive tasks.
b. group members are highly motivated.
c. there is ample time for task completion.
d. the task is unclear and vague.
Q:
The general thrust of path-goal theory is to specify what a leader must do to:
a. make a directive style of leadership acceptable.
b. achieve high productivity and morale in a given situation.
c. improve the work attitudes of group members.
d. make the situation more favorable.
Q:
Division manager Pedro believes strongly in the path-goal theory of leadership, so he engages in behaviors that:
a. have a high probability of winning.
b. set quite high goals for all subordinates.
c. complement subordinate characteristics and task demands.
d. follow a logical path.
Q:
Following Fiedler's contingency model, a leader can increase situational control by:
a. decreasing the task structure for group members.
b. creating conflict between himself or herself and group members.
c. increasing his or her position power.
d. increasing the demands on group members.
Q:
The general point of Fiedler's contingency theory of leadership is that the best style of leadership is determined by:
a. the leader's personality.
b. how well the leader gets along with group members.
c. a balance of task and relationship factors.
d. the situation in which a leader works.
Q:
In Fiedler's contingency theory, an important dimension for rating situation favorability is:
a. position power.
b. leader-member relations.
c. personal power.
d. task structure.
Q:
A _____ perspective is that the leader's behavior is profoundly influenced by the situation.
a. path-goal leadership
b. contingency leadership
c. normative decision model
d. middle of the road management
Q:
Contingency leadership theorists believe that in terms of shaping the leader's behavior, _____.
a. forces in the situation are much more important that the leader's personal characteristics.
b. the internal environment is more critical than the external environment.
c. the leadership situation has a negligible influence.
d. the leader's personal characteristics have a negligible influence.
Q:
Baxter, a chief operating officer, practices contingency leadership when he:
a. warns workers in advance about potential punishments.
b. maintains an optimistic, positive attitude.
c. challenges the use of new technologies.
d. discards old ideas that no longer fit the situational forces.
Q:
The contingency approach to leadership explains that leaders are most effective when they:
a. plan for emergencies before they occur.
b. attune their behavior to situational forces.
c. follow universal managerial principles when faced with contingencies.
d. create backup plans to deal with human resources problems.
Q:
When asked about leadership effectiveness, an executive said, in part, "The length of the leash varies with different people. . . ." The executive's comments support the _____ perspective on leadership.
a. contingency
b. relationship-oriented
c. task-oriented
d. universal theory
Q:
A success factor for the leader of an organization or a key organizational unit is to think strategically, including visualizing the big picture.
a. True
b. False
Q:
Branch manager Marissa uses evidence-based leadership when she accuses subordinates of wrongdoing, especially when she can heavily document her accusations.
a. True
b. False
Q:
An ineffective way to lead an organization through a crisis is to strongly defend yourself against your critics or deny wrongdoing.
a. True
b. False
Q:
An important situational factor in the normative model is the importance of commitment.
a. True
b. False
Q:
In the normative decision model, decision significance is defined as the significance of the decision to the success of the project or organization.
a. True
b. False
Q:
To influence performance and satisfaction of subordinates, it is not recommended that the leader reduce frustrating barriers to reaching goals, because overcoming obstacles is the only way to increase employee confidence long-term.
a. True
b. False
Q:
According to the path-goal theory of leadership effectiveness, it is not recommended that low-level employees should be evaluated to find ways to enhance their work satisfaction.
a. True
b. False
Q:
Situations shape not only how leaders behave, but also the consequences of leader behavior.
a. True
b. False
Q:
In the situational leadership model II, the key contingency factor is the development level of group members as determined by commitment and competence.
a. True
b. False
Q:
The achievement-oriented leadership style works well with group members working on ambiguous and nonrepetitive tasks.
a. True
b. False
Q:
According to the path-goal theory, the participative style is recommended when group members are performing repetitive tasks.
a. True
b. False
Q:
If a leader wants to practice the path-goal theory of leadership, he should be prepared to compensate for the deficiencies of subordinates.
a. True
b. False
Q:
A major proposition of the path-goal theory is that the leader should engage in behaviors that run counter to the subordinates' environment and abilities.
a. True
b. False
Q:
According to Fiedler's theory, relationship-motivated leaders perform the best in situations of low control.
a. True
b. False
Q:
According to Fiedler's theory, task-motivated leaders perform the best in situations of high control and low control.
a. True
b. False