question

List the six Spheres of Influence when confronted with Ethical Choices.

answer

* workplace, * family, * religion, * legal system, * community, and * profession (the level of importance of each of these influences will vary depending on how important the decision maker perceives the issue to be)

question

List the professions that are commonly viewed as unethical?

answer

* telemarketers, * car salespersons, * advertising practitioners, * stockbrokers, and * real estate brokers

question

Describe the First Step in making an Ethical Decision

answer

Recognize that an ethical issue requires that an individual or work group choose among several actions that will ultimately be evaluated as ethical or unethical by various stakeholders

question

Describe the Last Step in Ethical Decision Making.

answer

An individual's intentions and the final decision regarding what action he or she will take

question

List the factors are involved in Ethical Decision-Making Process.

answer

1. ethical-issue intensity 2. individual factors 3. organizational factors 4. opportunity (All of these interrelated factors influence the evaluations of and intentions behind the decisions that produce ethical or unethical behavior.)

question

Define: Ethical-Issue Intensity

answer

The relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization (reflects the ethical sensitivity of the individual or work group that faces the ethical decision-making process)

question

T/F: Under current law, managers can be held liable for the unethical and illegal actions of subordinates.

answer

True (under Federal Sentencing Guidelines for Organizations)

question

Define: Moral Intensity

answer

Persons perspective of social pressure and the harm it will have on others

question

T/F: Identifying the ethical issues that employees might encounter is a significant step toward developing their ability to make ethical decisions. Many ethical issues are identified by industry groups or through general information available to a firm.

answer

True

question

Describe: Individual Factors of Ethical Decision Making.

answer

factors that affect ethical awareness, judgment, intent, and behavior

question

T/F: In the workplace, personal ethical issues typically involve honesty, conflicts of interest, discrimination, nepotism, and theft of organizational resources.

answer

True

question

List the six Individual Factors that relate to Ethical Decision Making

answer

* Gender * Education * Work Experience * Nationality * Age * Locus of Control

question

Describe: Education as an Individual Factor of Ethical Decision Making

answer

the number of years spent in pursuit of academic knowledge regardless of type

question

Describe: Work Experience as an Individual Factor of Ethical Decision Making

answer

the number of years within a specific job, occupation, and/or industry

question

Describe: Nationality as an Individual Factor of Ethical Decision Making

answer

the legal relationship between a person and the country in which he/she is born (research about nationality and ethics appears to be significant in that it affects ethical decision making; however, the true effect is somewhat hard to interpret.)

question

Describe: Locus of Control as an Individual Factor of Ethical Decision Making

answer

individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements.

question

Describe: Internal Events as a Locus of Control

answer

Control yourself by own effort and skill (master of your own destiny)

question

Describe: External Events as a Locus of Control

answer

Outside forces influence (go with the flow)

question

T/F: Those who believe that their fate is in the hands of others were more ethical than those who believed that they formed their own destiny.

answer

True

question

Describe: Organizational Factors of Ethical Decision Making.

answer

factors provided by a person's workplace. (In the workplace, the organization's values often have greater influence on decisions than a person's own values.)

question

T/F: An organization's values often have greater influence on decisions than a person's own values in the workplace.

answer

True

question

Describe: Corporate Culture

answer

Set of values, beliefs, goals norms and solving problems that members of an organization share

question

Describe: Ethical Culture of a Business

answer

Whether the firm has an ethical conscience

question

T/F: Ethical culture is a function of many factors, including corporate policies on ethics, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior.

answer

True

question

Describe: Significant Others of Organizational Factors

answer

Those who have influence in a work group (They help workers on a daily basis with unfamiliar tasks and provide advice and information in both formal and informal ways.)

question

List the Significant Others of Organizational Factors

answer

* peers, * managers, * coworkers, and * subordinates

question

T/F: Numerous studies conducted over the years confirm that significant others within an organization may have more impact on a worker's decisions on a daily basis than any other factor.

answer

True

question

Describe: Obedience to Authority

answer

aspect of the influence that Significant Others can exercise (Obedience to authority helps to explain why many employees resolve business ethics issues by simply following the directives of a superior.)

question

T/F: In organizations that emphasize respect for superiors employees may feel that they are expected to carry out orders by a supervisor even if those orders are contrary to the employees' sense of right and wrong.

answer

True

question

Describe: Opportunity in Ethical Decision Making

answer

conditions in an organization that limit or permit ethical or unethical behavior.

question

T/F: Opportunity results from conditions that either provide rewards, whether internal or external, or fail to erect barriers against unethical behavior.

answer

True

question

Describe: Internal Rewards

answer

feelings of goodness and personal worth generated by performing altruistic acts

question

Describe: External Rewards.

answer

what an individual expects to receive from others in the social environment: social approval, status, and esteem

question

Describe: Immediate Job Context

answer

where they work, whom they work with, and the nature of the work.

question

T/F: The immediate job context includes the motivational "carrots and sticks" that superiors use to influence employee behavior. Pay raises, bonuses, and public recognition act as carrots, or positive reinforcements, whereas demotions, firings, reprimands, and pay penalties act as sticks, the negative reinforcements

answer

True

question

T/F: The opportunity for unethical behavior cannot be eliminated without aggressive enforcement of codes and rules.

answer

True

question

List the two symptoms normally associated with making an unethical decision.

answer

* Guilt * Uneasiness

question

Describe: Leadership

answer

Ability or authority to guide or direct others toward achievement of a goal

question

T/F: Ethical leadership requires an understanding of the firm's vision and values, as well as the challenges of responsibility and the risk in achieving organizational objectives. Ethical leaders need both knowledge and experience to make decisions. Strong ethical leaders must have the right kind of moral integrity.

answer

True

question

Describe: Emotional Intelligence.

answer

ability to manage ourselves and our relationships effectively

question

List the six Leadership Styles based on Emotional Intelligence

answer

1. The coercive leader 2. The authoritative leader 3. The affiliative leader 4. The democratic leader 5. The pace-setting leader 6. The coaching leader

question

Describe: Coercive Leader

answer

demands instantaneous obedience and focuses on achievement, initiative, and self-control. (Although this style can be very effective during times of crisis or during a turnaround, it otherwise creates a negative climate for organizational performance.)

question

Describe: Authoritative Leader.

answer

inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate (considered to be one of the most effective styles)

question

Describe: Affliliative Leader.

answer

values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking

question

Describe: Democratic Leader.

answer

relies on participation and teamwork to reach collaborative decisions, focuses on communication and creates a positive climate for achieving results.

question

Describe: Pace-Setting Leader.

answer

sets high standards, attains quick results from highly motivated individuals who value achievement and take the initiative (can create a negative climate )

question

Describe: Coaching Leader.

answer

builds a positive climate by developing skills to foster long term success, delegates responsibility, and is skillful in issuing challenging assignments.

question

T/F: The most successful leaders do not rely on one style but alter their techniques based on the characteristics of the situation.

answer

True

question

Describe: Transactional Leader

answer

Creates employee satisfaction through bartering or negotiation for desired behavior, focus on ensuring that required conduct and procedures are implemented (Their negotiations to achieve desired outcomes result in a dynamic relationship with subordinates in which reactions, conflict, and crisis influence the relationship more than ethical concerns)

question

Describe: Transformative Leader

answer

Raise and employees level of commitment and to foster trust and motivation, communicate a sense of mission, stimulate new ways of thinking, and enhance as well as generate new learning experiences, consider employee needs and aspirations in conjunction with organizational needs, build commitment and respect for values that provide agreement on how to deal with ethical issues (they have a stronger influence on coworker support for ethical decisions and building an ethical culture than do transactional leaders)

question

List 's Seven Habits of Ethical Leaders

answer

Ethical leaders: 1. have strong personal character. 2. have a passion to do right. 3. are proactive. 4. consider stakeholders' Interests. 5. are role models for the organization's values. 6. are transparent and actively involved In organizational decision making. 7. are competent managers who take a holistic view of the firm's ethical culture.

question

List Herb Baum's Three remarkably simple principles of transparency.

answer

1. tell the whole truth, 2. build a values-based culture, and 3. hire "people people."

question

T/F: Transparent leaders will not be effective unless they are personally involved in the key decisions that have ethical ramifications.

answer

True

question

T/F: Leadership Style of an organization influences how its employees act, as well as influence many aspects of organizational behavior, including employees' acceptance of and adherence to organizational norms and values.

answer

True

question

T/F: The first step in ethical decision making is to understand the individual factors that influence the process.

answer

False (The first step is to become more aware that an ethical issue exists and to consider its relevance to the individual or work group.)

question

T/F: Opportunity describes the conditions within an organization that limit or permit ethical or unethical behavior.

answer

True (Opportunity results from conditions that provide rewards or fail to erect barriers against unethical behavior.)

question

T/F: Transactional leaders negotiate compliance and ethics.

answer

True (Transactional leaders barter or negotiate with employees.)

question

T/F: The most significant influence on ethical behavior in the organization is the opportunity to engage in (un)ethical behavior.

answer

False (Significant others have more impact on ethical decisions within an organization.)

question

T/F: Obedience to authority relates to the influence of corporate culture.

answer

False (Obedience to authority relates to the influence of significant others and supervisors.)

question

Define: Philosophy.

answer

general system of values by which people live

question

Define: Moral Philosophy

answer

principles or rules that people use to decide what is right or wrong. (guidelines for "determining how conflicts in human interests are to be settled and for optimizing mutual benefit of people living together in groups")

question

Describe: Idealism

answer

is a moral philosophy that places special value on ideas and ideals as products of the mind, in comparison with the world's view. (The term refers to efforts to account for all objects in nature and experience and assign to such representations a higher order of existence. Studies have found that there is a positive correlation between idealistic thinking and ethical decision making)

question

Describe: Realism

answer

the view that an external world exists independent of our perception of it. (Realists work under the assumption that humankind is not inherently benevolent and kind but instead is inherently self-centered and competitive. According to realists, each person is always ultimately guided by his or her own self-interest. Research shows a negative correlation between realistic thinking and ethical decision making.)

question

Economic Value Orientation

answer

is associated with values that can be quantified by monetary means (according to this theory, if an act produces more value than its effort, then it should be accepted as ethical)

question

Describe: Obligationalist.

answer

assess the means and motives by which actions are justified

question

Describe: Consequentialist

answer

assess the moral worth of a behavior by looking at its consequences

question

Describe Non-Consequentialist.

answer

ethics based on respect for persons.

question

List the commonly researched Moral Philosophies

answer

• Teleology • Deontology • Relativist Perspective • Virtue Ethics • Justice

question

Describe: Teleology

answer

Stipulates that acts are morally right or acceptable if they produce some desired result, such as realization of self-interest or utility (consequentialist; obligation theory - means or method; from Greek word for "end" or "purpose")

question

List the two teleological philosophies that guide decision making in individual business decisions.

answer

a. Egoism b. Utilitarianism

question

Describe: Egoism

answer

Defines right or acceptable actions as those that maximize a particular person's self-interest as defined by the individual. Egoists believe that they should make decisions that maximize their own self interest, which is defined differently by each individual. (a Teleological philosophy; typically short term oriented; "Do the act that promotes the greatest good for oneself.")

question

Describe: Enlightened Egoists

answer

take a long-range perspective and allow for the well-being of others although their own self-interest remains paramount.

question

Describe: Utilitarianism

answer

Defines right or acceptable actions as those that maximize total utility or the greatest good for the greatest number of people (a Teleological philosophy)

question

Describe: Rule Utilitarian.

answer

general rules should be followed to decide which action is best; behavior on the basis of principles, or rules, designed to promote the greatest utility rather than on an examination of each particular situation

question

Describe: Act Utilitarian.

answer

each individual action must be evaluated to determine whether it produces the greatest utility for the greatest number of people; a specific action is used to assess whether it will result in the greatest utility.

question

Describe: Deontology

answer

Focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences. (obligation theory - motives or ends; from Greek word for "ethics"; equal respect must be given to all persons)

question

T/F: Deontologists regard the nature of moral principles as permanent and stable, and they believe that compliance with these principles defines ethicalness. Deontologists believe that individuals have certain absolute rights: - Freedom of conscience - Freedom of consent - Freedom of privacy - Freedom of speech - Due process

answer

True

question

Describe: Rule Deontologists

answer

believe that conformity to general moral principles determines ethicalness; determined by the relationship between the basic rights of the individual and a set of rules governing conduct; use reason and logic to formulate rules for behavior

question

Describe: Act Deontologists

answer

hold that actions are the proper basis on which to judge morality or ethicalness; a person must use equity, fairness, and impartiality when making and enforcing decisions.

question

T/F: Teleological philosophies consider the ends associated with an action whereas deontological philosophies consider the means.

answer

True

question

Describe: Relativist Perspective

answer

Evaluates ethicalness subjectively on the basis of individual and group experiences; acknowledges that we live in a society in which people have many different views and bases from which to justify decisions as right or wrong; try to anticipate the conflicts that might arise between the different philosophies (A problem with relativism is that it places too much emphasis on peoples' differences while ignoring their basic similarities.)

question

List/Describe the three subtypes of Relativist Perspective.

answer

* Descriptive Relativists relate to observing cultures. * Metaethical Relativists understand that people naturally see situations from their own perspectives; no objective way of resolving ethical disputes between value systems and individuals * Normative Relativists assume that one person's opinion is as good as another's.

question

Describe: Virtue Ethics

answer

Assumes that what is moral in a given situation is not only what conventional morality requires but also what the mature person with a good moral character would deem appropriate

question

List the four significant points of Virtue Ethics.

answer

1. Individual virtue and integrity count 2. Virtues associated with appropriate conduct form a good person. (Role in Community) 3. Serve society's demands and the public good and to be rewarded in one's career. 4. The well-being of the community goes together with individual excellence

question

T/F: The difference between deontology, teleology, and virtue ethics is that the first two are applied deductively to problems whereas virtue ethics is applied inductively. Virtue ethics assumes that what current societal moral rules require may indeed be the moral minimum for the beginning of virtue.

answer

True

question

Describe: Justice

answer

Evaluates ethicalness on the basis of fairness: distributive, procedural, and interactional

question

Describe: Distributive Justice

answer

Based on the evaluation of outcomes or results of the business relationship

question

Describe: Procedural Justice

answer

Based on the processes and activities that produce the outcome or results.

question

Describe: Interactional Justice

answer

Based on evaluating the communication processes used in the business relationship

question

List the two concepts of Goodness.

answer

1. Monism 2. Pluralism

question

T/F: Goodness Theories typically focus on the end result of actions and the goodness or happiness created by them.

answer

True

question

Describe: Monism

answer

believe that only one thing is intrinsically good

question

Describe: Hedonism

answer

one's pleasure is the ultimate intrinsic good or that the moral end, or goodness, is the greatest balance of pleasure over pain. (Hedonism defines right or acceptable behavior as that which maximizes personal pleasure)

question

Describe: Quantitative Hedonists

answer

those who believe that more pleasure is better

question

Describe: Qualitative Hedonists

answer

those who believe that it is possible to get too much of a good thing

question

Describe: Pluralism

answer

believe that two or more things are intrinsically good

question

T/F: Plato argued that the good life is a mixture of (1) moderation and fitness, (2) proportion and beauty, (3) intelligence and wisdom, (4) sciences and arts, and (5) pure pleasures of the soul.

answer

True

question

T/F: Immanuel Kant, German Philosopher believed if you feel comfortable allowing everyone in the world to see you commit an act and if your rationale for acting in a particular manner is suitable to become a universal principle guiding behavior, then committing that act is ethical.

answer

True

question

List/Describe the nine Virtues that could drive a Market Economy

answer

• Trust: The predisposition to place confidence in the behavior of others while taking the risk that the expected behavior will not be performed • Self-Control: The disposition to pass up an immediate advantage or gratification. It indicates the ability to avoid exploiting a known opportunity for self-interest • Empathy: The ability to share the feelings or emotions of others • Fairness: The disposition to deal equitably with the perceived injustices of others • Truthfulness: The disposition to provide the facts or correct information as known to the individual • Learning: The disposition to constantly acquire knowledge internal and external to the firm, whether of an industry, culture, or other societies • Gratitude: A sign of maturity that is the beginning of civility and decency • Civility: The disposition or essence of courtesy, politeness, respect, and consideration for others • Moral Leadership: Strength of character, peace of mind, heart, and happiness in life

question

T/F: The elements of virtue that are important to business transactions have been defined as trust, self-control, empathy, fairness, and truthfulness. Attributes in contrast to virtue would include lying, cheating, fraud, and corruption.

answer

True

question

T/F: Individuals use different moral philosophies depending on whether they are making a personal decision outside the work environment or making a work-related decision on the job.

answer

True

question

Describe: Instrumentalists (AKA: Pragmatists)

answer

reject the idea that: (1) ends can be separated from the means that produce them and (2) ends, purposes, or outcomes are intrinsically good in and of themselves

question

T/F: John Dewey argued that the ends-means perspective is a relative distinction, that the difference between ends and means is no difference at all but merely a matter of the individual's perspective; thus, almost any action can be an end or a means.

answer

True

question

T/F: According to Psychologist Lawrence Kohlberg's model of cognitive moral development, people make different decisions in similar ethical situations because they are in different stages of six cognitive moral development stages.

answer

True

question

List the Six stages of Cognitive Moral Development

answer

The stage of 1. punishment and obedience (stage of strict rules) 2 .individual instrumental purpose and exchange (self oriented; stage of reciprocity) 3. mutual interpersonal expectations, relationships, and conformity (other oriented; fairness to others) 4. social system and conscience maintenance. (duty to society; duty, respect for authority, and maintaining the social order) 5. prior rights, social contract, or utility (upholding the basic rights, values, and legal contracts of society) 6. universal ethical principles (right is determined by universal ethical principles; inalienable rights)

question

List Kohlberg's three levels of Ethical Concern.

answer

1. a person is concerned with his or her own immediate interests and with external rewards and punishments 2.an individual equates right with conformity to the expectations of good behavior of the larger society or some significant reference group 3.at the third, or "principled," level, an individual sees beyond the norms, laws, and authority of groups or individuals.

question

T/F: Employees at the third level of Ethical Concern make ethical decisions regardless of negative external pressures.

answer

True (research has shown that most workers' abilities to identify and resolve moral dilemmas do not reside at this third level and that their motives are often a mixture of selflessness, self-interest, and selfishness.)

question

T/F: Managers in the highest stages of the moral development process seem to be more democratic than autocratic, more likely to consider the ethical views of the other people involved in an ethical decision-making situation.

answer

True

question

Describe: White-Collar Crime (WCC)

answer

* committing an illegal act in relation to his/her employment, * who is highly educated (college), * in a position of power, trust, respectability and responsibility, * within a profit/nonprofit business or government organization, and * who abuses the trust and authority normally associated with the position for personal and/or organizational gains ("crimes of the suite" do more damage in monetary and emotional loss)

question

T/F: The increase in technology use seems to be increasing the opportunity to commit white-collar crime with less risk.

answer

True

question

Describe: Machiavellianism

answer

argues against the relevance of morality in political affairs and holds that craft and deceit are justified in pursuing and maintaining political power (Machiavelli is famous for the idea that, for a leader, it is better to be feared than to be loved.)

question

T/F: According to ethics consultant David Gebler, "Most unethical behavior is not done for personal gain, it's done to meet performance goals."

answer

True

question

T/F: The rewards for meeting performance goals and the corporate culture, especially for coworkers and managers, have been found to be the most important drivers of ethical decision making.

answer

True

question

T/F: Equipping employees with intellectual skills that will allow them to understand and resolve complex ethical dilemmas that they encounter in complex corporate cultures will help them make the right decisions.

answer

True

question

Describe: The West Point Model of Character Development Model.

answer

focuses on the fact that competence and character must be developed simultaneously; assumes that ethical reasoning has to be approached in the context of a specific profession. (The military has been effective in teaching skills and developing principles and values that can be used in most situations that a soldier will encounter. In a similar manner, accountants, managers, or marketers need to develop ethical reasoning in the context of their jobs.)

question

T/F: Teleology defines right or acceptable behavior in terms of consequences for the individual.

answer

False (That's egoism.)

question

T/F: A relativist looks at an ethical situation and considers the individuals and groups involved.

answer

True (Relativists look at themselves and those around them to determine ethical standards.)

question

T/F: A utilitarian is most concerned with the bottom-line benefits.

answer

True (Utilitarians look for the greatest good for the greatest number of people and use a cost-benefit approach.)

question

T/F: Act deontology requires that a person use equity, fairness, and impartiality in making decisions and evaluating actions.

answer

True (The rules serve only as guidelines, and past experience weighs more heavily than the rules.)

question

T/F: Virtues that support business transactions include trust, fairness, truthfulness, competitiveness, and focus.

answer

False (The characteristics include trust, self-control, empathy, fairness, and truthfulness—not competitiveness and focus)

question

List the common components of Corporate (Organizational) Culture

answer

* behavioral patterns, * concepts, * values, * ceremonies and * rituals

question

Describe: The Role of Corporate Culture in Ethical Decision Making

answer

gives the members of the organization meaning as well as the internal rules of behavior (Explicit statements of values, beliefs, and customs usually come from upper management. Memos, written codes of conduct, handbooks, manuals, forms, and ceremonies are all formal expressions of an organization's culture.)

question

T/F: A company's history and unwritten rules are a part of its culture. The culture of an organization may be explicitly articulated or left unspoken. Corporate culture is often expressed informally.

answer

True

question

List the two dimensions of Corporate Culture.

answer

1. concern for people; and 2. concern for performance

question

List the four Framework of Organizational Culture Typologies

answer

* apathetic, * caring, * exacting, and * integrative

question

Describe: Apathetic Culture

answer

minimal concern for either people or performance (individuals focus on their own self interests)

question

Describe: Caring Culture

answer

high concern for people but minimal concern for performance issues (From an ethical standpoint, the caring culture seems to be very appealing)

question

Describe: Exacting Culture

answer

little concern for people but a high concern for performance (focuses on the interests of the organization)

question

Describe: Integrative Culture

answer

combines high concern for people and for performance (superiors recognize that employees are more than interchangeable parts)

question

Describe: Cultural Audit

answer

assessment of the organization's values. (It is usually conducted by outside consultants but may be performed internally as well)

question

T/F: An organization's failure to monitor or manage its culture may foster questionable behavior. Management's sense of the organization's culture may be quite different from the values and ethical beliefs that are actually guiding the firm's employees.

answer

True

question

Describe: Differential Association

answer

people learn ethical or unethical behavior while interacting with others who are part of their role-sets or belong to other intimate personal groups.

question

T/F: Interpersonal conflict ensues when employees think they know the right course of action in a situation, yet their work group or company promotes or requires a different, unethical decision.

answer

True

question

Describe: Whistle-Blowing

answer

means exposing an employer's wrongdoing to outsiders (external to the company) such as the media or government regulatory agencies; internal reporting of misconduct to management (especially through anonymous reporting mechanisms)

question

List the three ways Sarbanes-Oxley Act affects Whistle-Blowing.

answer

* institutionalized internal whistle-blowing to encourage discovery of internal misconduct. (along with FSGO) * makes it illegal to "discharge, demote, suspend, threaten, harass, or in any manner discriminate against" a whistle-blower * sets penalties for executives who retaliate against whistle-blowers

question

T/F: FSGO provides rewards for companies that systematically detect and address unethical or illegal activities.

answer

True

question

List the Questions a potential Whistle-Blower should ask themselves before committing to an external report?

answer

1. Have I exhausted internal anonymous reporting opportunities within the organization? 2. Have I examined company policies and codes that outline acceptable behavior and violations of standards? 3. Is this a personal issue that should be resolved through other means? 4. Can I manage the stress that may evolve from exposing potential wrongdoing In the organization? 5. Can I deal with the consequences of resolving an ethical or legal conflict within the organization?

question

T/F: Organizational leaders use their power and influence to shape corporate culture. An individual has power over others when his or her presence causes them to behave differently.

answer

True (A superior in an authority position can put strong pressure on employees to comply, even when their personal ethical values conflict with the superior's wishes.)

question

Define: Power.

answer

the influence that leaders and managers have over the behavior and decisions of subordinates (An individual has power over others when his or her presence causes them to behave differently)

question

List the five Power Bases.

answer

1. reward power 2. coercive power 3. legitimate power 4. expert power 5. referent power

question

Describe: Reward Power

answer

a person's ability to influence the behavior of others by offering them something desirable

question

Describe: Coercive Power

answer

penalizes for bad actions or behavior (essentially the opposite of reward power)

question

Describe: Legitimate Power

answer

the right to exert influence and that certain others have an obligation to accept it. (The titles and positions of authority that organizations bestow on individuals appeal to this traditional view of power.)

question

Describe: Expert Power

answer

person's knowledge and experience (or the perception that the person possesses knowledge. Expert power usually stems from a superior's credibility with subordinates.)

question

Describe: Referent Power

answer

one person perceives that his or her goals or objectives are similar to anothers. (The second person may attempt to influence the first to take actions that will lead both to achieve their objectives. Because they share the same objective, the person influenced by the other will perceive the others use of referent power as beneficial.)

question

T/F: The five bases of power are not mutually exclusive. People typically use several power bases to effect change in others.

answer

True

question

T/F: Sometimes a leader uses power to manipulate a situation or a person's values in a way that creates a conflict with the person's value structure.

answer

True

question

Define: Motivation

answer

force within the individual that focuses his or her behavior toward achieving a goal.

question

T/F: To create motivation, an organization offers incentives to encourage employees to work toward organizational objectives. Understanding motivation is important to the effective management of people, and it also helps explain their ethical behavior.

answer

True

question

Describe: Relatedness Needs

answer

social and interpersonal relationships

question

Describe: Growth Needs

answer

creative or productive activities

question

T/F: After basic needs such as food, working conditions (existence needs), and survival are satisfied, relatedness needs and growth needs become important.

answer

True

question

Describe: Frustration-Regression

answer

to reduce anxiety, one starts focusing on an unrelated area, and not the main problem; attempts to fill needs by going back to an earlier stage in hierarchy of needs

question

List the two broad categories of organizational structures.

answer

* centralized, and * decentralized

question

Describe: Centralized Organization

answer

* decision-making authority is concentrated in the hands of top-level managers * little authority is delegated to lower levels * stress formal rules, policies, and procedures backed up with elaborate control systems.

question

Describe: Blame Shifting (Scapegoating)

answer

transferring blame for their actions to others who are not responsible

question

Describe: Decentralized Organization

answer

decision-making authority is delegated as far down the chain of command as possible. (relatively few formal rules; coordination and control are usually informal and personal; focus on increasing the flow of information.)

question

T/F: One of the main strengths of decentralized organizations is their adaptability and early recognition of external change.

answer

True

question

List two weaknesses of a Decentralized Organization.

answer

* difficulty responding quickly to changes in policy and procedures established by top management. * independent profit centers within a decentralized organization may deviate from organizational objectives

question

T/F: Due to the strict formalization and implementation of ethics policies and procedures in centralized organizations, they tend to be more ethical in their practices than decentralized organizations. Centralized organizations may also exert more influence on their employees because they have a central core of policies and codes of ethical conduct.

answer

True

question

T/F: A Decentralized Organization gives employees extensive decision-making autonomy and may are able to avoid ethical dilemmas by tailoring their decisions to the specific situations, laws, and values of a particular community.

answer

True

question

List the two types of groups that affect Corporate Structure and Culture

answer

* formal ,and * informal

question

Describe: Formal Groups

answer

assembly of individuals that has an organized structure accepted explicitly by the group

question

List the three types of Formal Groups.

answer

* Committees, * Work Groups, and * Teams

question

Describe: Committees

answer

group of individuals assigned to a specific task.

question

Describe: Work Groups

answer

used to subdivide duties within specific functional areas of a company

question

Describe: Teams.

answer

bring together the functional expertise of employees from several different areas of the organization; each member of the team has a particular role

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T/F: Work groups and teams provide the organizational structure for group decision making, where informal communication flows up, down, diagonally, and horizontally, not necessarily following the communication lines on a company's organization chart.

answer

True

question

Describe: Informal Groups.

answer

groups composed of individuals who have similar interests and band together for companionship or for purposes that may or may not be relevant to the goals of the organization. (develop informal channels of communication, sometimes called the "grapevine")

question

Group Norms

answer

standards of behavior that groups expect of their members.

question

T/F: If a person believes that his or her personal ethics severely conflict with the ethics of the work group and of superiors in an organization, that individual's only alternative may be to leave the organization.

answer

True

question

T/F: Decentralized organizations tend to put the blame for unethical behavior on lower-level personnel.

answer

False (That's more likely to occur in centralized organizations.)

question

T/F: Decentralized organizations give employees extensive decision-making autonomy.

answer

True (This is known as empowerment)

question

T/F: Corporate culture provides rules for behaving within the organization.

answer

True (Values, beliefs, customs, and ceremonies represent what is acceptable and unacceptable in the organization.)

question

T/F: An integrative culture shows high concern for performance and little concern for people.

answer

False (That's an exacting culture. An integrative culture combines high concern for people and production.)

question

T/F: Coercive power works in the same manner as reward power.

answer

False (Coercive power is the opposite of reward power. One offers rewards and the other punishment to encourage appropriate behavior.)

question

Describe: Moral Agent

answer

accountable for their conduct to their employees, investors, suppliers, and customers; required to obey the laws and regulations that define acceptable business conduct; responsible to society for its actions

question

T/F: Because corporations are chartered as citizens of a state and/or nation, they generally have the same rights and responsibilities as individuals.

answer

True (Some corporate outcomes cannot be tied to one individual or even a group, and misconduct can be the result of a collective pattern of decisions supported by a corporate culture.)

question

List the five top recommendations to CEOs for rebuilding trust and confidence in American firms.

answer

• making customers the top priority, • assuming personal responsibility and accountability, • communicating openly and frequently with customers, • handling crises more honestly, and • sticking to the code of business ethics no matter what.

question

T/F: To promote legal and ethical conduct, an organization should develop an organizational ethics program by establishing, communicating, and monitoring the ethical values and legal requirements that characterize its history, culture, industry, and operating environment.

answer

True

question

compliance orientation

answer

creates order by requiring that employees identify with and commit to specific required conduct. It uses legal terms, statutes, and contracts that teach employees the rules and penalties for noncompliance.

question

values orientation

answer

strives to develop shared values. Although penalties are attached, the focus is more on an abstract core of ideals such as respect and responsibility. Instead of relying on coercion, the company's values are seen as something to which people willingly aspire.

question

List the minimum requirements for an ethics program?

answer

1 . Standards and procedures, such as codes of ethics, that are reasonably capable of detecting and preventing misconduct 2. High-level personnel who are responsible for an ethics and compliance program 3. No substantial discretionary authority given to individuals with a propensity for misconduct 4. Standards and procedures communicated effectively via ethics training programs 5. Establishment of systems to monitor, audit, and report misconduct 6. Consistent enforcement of standards, codes, and punishment 7. Continuous improvement of the ethics and compliance program

question

T/F: An ethics program can help a firm avoid civil liability, but the company still bears the burden of proving that it has an effective program.

answer

True

question

T/F: An organization's compliance program should be deemed effective if it addresses the seven minimum requirements for ethical and compliance programs.

answer

False (An effective compliance program has the seven elements of a compliance program in place and goes beyond those minimum requirements to determine what will work in the particular organization.)

question

List the two type of control systems for an Ethics and Compliance program

answer

* Compliance Orientation * Values Orientation

question

Describe: Compliance Orientation.

answer

requires that employees identify with and commit to specific required conduct. (uses legal terms, statutes, and contracts that teach employees the rules and penalties for noncompliance)

question

Describe: Values Orientation.

answer

develop shared values; creates ethical reasoning among employees (A values-based program may be better for companies in the long run.)

question

Describe: Codes of Conduct

answer

formal statements that describe what an organization expects of its employees (A code of conduct is a written document that may contain some inspirational statements but usually specifies acceptable or unacceptable types of behavior. A code of conduct is more akin to a regulatory set of rules and, as such, tends to elicit less debate about specific actions.)

question

List the three forms of the formal statements related to Codes of Conduct formal statements.

answer

* Code of Ethics * Code of Conduct * Statement of Values

question

Describe: Code of Ethics as a formal statement.

answer

most comprehensive and consists of general statements, sometimes altruistic or inspirational, that serve as principles and the basis for rules of conduct (A code of ethics generally specifies methods for reporting violations, disciplinary action for violations, and a structure of due process.)

question

Describe: Code of Conduct as a formal statement.

answer

written document that may contain some inspirational statements but usually specifies acceptable or unacceptable types of behavior. (A code of conduct is more akin to a regulatory set of rules and, as such, tends to elicit less debate about specific actions.)

question

Describe: Statement of Values as a formal statement.

answer

documentation of a set of organizational values which serves the general public; also addresses distinct groups such as stake-holders. (Values statements are conceived by management and are fully developed with input from all stakeholders.)

question

T/F: The development of a code of ethics should involve the President, Board of Directors, and Chief Executive Officers who will be implementing the code. Legal staff should also be called on to ensure that the code has correctly assessed key areas of risk and that it provides buffers for potential legal problems.

answer

True

question

List the six cores values common in Corporate Codes of Ethics.

answer

1. trustworthiness, 2. respect, 3. responsibility, 4. fairness, 5. caring, and 6. citizenship.

question

List the six steps for developing and implementing a Code of Ethics.

answer

1. Consider areas of risk and state the values as well as conduct necessary to comply with laws and regulations. Values are an Important buffer In preventing serious misconduct. 2. Identify values that specifically address current ethical Issues. 3. Consider values that link the organization to a stakeholder orientation. Attempt to find overlaps In organizational and stakeholder values. 4. Make the code understandable by providing examples that reflect values. 5. Communicate the code frequently and In language that employees can understand. 6. Revise the code every year with Input from organizational members and stakeholders.

question

Describe: Ethics Officers

answer

are responsible for managing their organizations' ethics and legal compliance programs. (Ethics officers are also responsible for knowing thousands of pages of relevant regulations as well as communicating and reinforcing values that build an ethical corporate culture.)

question

List the eight areas of concern (responsibilities) of an Ethics Officer.

answer

1. assessing the needs and risks that an organization-wide ethics program must address, 2. developing and distributing a code of conduct or ethics, 3. conducting training programs for employees, 4. establishing and maintaining a confidential service to answer employees' questions about ethical issues, 5. making sure that the company is in compliance with government regulation, 6. monitoring and auditing ethical conduct, 7. taking action on possible violations of the company's code, & 8. reviewing and updating the code.

question

T/F: Ethics Officers can also be called Chief Compliance Officers or Ethics & Business Conduct Professionals.

answer

True

question

List the three benefits of Ethics Program Training in an organization.

answer

Everyone in the organization can: 1. recognize situations that might require ethical decision making, 2. understand the values and culture of the organization, and 3. evaluate the impact of ethical decisions on the company in the light of its value structure. (Most experts agree that one of the most effective methods of ethics training is exercise in resolving ethical dilemmas that relate to actual situations that employees may face in their jobs.)

question

T/F: If ethics training is to be effective, it must start with a foundation, a code of ethics, a procedure for airing ethical concerns, line and staff involvements, and executive priorities on ethics that are communicated to employees.

answer

True

question

Describe: Behavioral Simulation.

answer

training device which gives participants a short, hypothetical ethical-issue situation to review

question

List the six resources that monitor ethical conduct and measure the program's effectiveness.

answer

• Observing employees, • internal audits, • surveys, (questionnaires) • external audit and review of company activities • reporting systems, and • investigations

question

T/F: Efforts to deter unethical behavior are important for companies' long-term relationships with their employees, customers, and community. If the code of ethics is aggressively enforced and becomes part of the corporate culture, it can effectively improve ethical behavior within the organization.

answer

True

question

T/F: Implementation translates a plan for action into operational terms and establishes a means by which an organization's ethical performance will be monitored, controlled, and improved.

answer

True

question

List the six common mistakes made by organizations in Designing and Implementing an Ethics Program.

answer

1. failure to understand and appreciate program goals 2. not setting realistic and measurable program objectives 3. senior management's failure to take ownership 4. developing program materials that do not address the needs of the average employee 5. transferring an "American" program to a firm's international operations 6. designing an ethics program that is little more than a series of lectures

question

T/F: The main objective of the Federal Sentencing Guidelines for Organizations (FSGO) is to encourage companies to assess risk and then self-monitor and aggressively work to deter unethical acts and punish unethical employees.

answer

True

question

1. T/F: A compliance program should be deemed effective if it addresses the seven minimum requirements for ethical compliance programs.

answer

False (An effective compliance program has the seven elements of a compliance program in place and goes beyond those minimum requirements to determine what will work in a particular organization.)

question

2. T/F: The accountability and responsibility for appropriate business conduct rest with top management.

answer

True (Executives in the organization determine the culture and initiatives that support ethical behavior.)

question

3. T/F: Ethical compliance can be measured by observing employees as well as through investigating and reporting mechanisms.

answer

True (Sometimes external monitoring is necessary, but internal monitoring and evaluation are the norm.)

question

4. T/F: The key goal of ethics training is to help employees identify ethical issues.

answer

False (It is much more than that—it involves not only recognition but also an understanding of the values, culture, and rules in the organization as well as the impact of ethical decisions on the company.)

question

5. T/F: An ethical compliance audit is designed to determine the effectiveness of ethics initiatives.

answer

True (It helps in establishing the code and in making program improvements.)

question

Multiple Choice: Research has shown that the least important motivation for managers in behaving ethically is: a. they want to feel good about themselves. b. they want to feel good about the decisions they make. c. they value their reputation. d. profitability.

answer

a

question

Multiple Choice: Unethical behavior in an organization can create: a. a cynical workforce. b. a resentful workforce. c. an unproductive workforce. d. All of the above.

answer

d

question

Multiple Choice: E-presto, Inc. has established an EthicsLine. EthicsLine is a toll-free phone number that employees can call any time of the day, any day of the week to discuss ethics and report suspected unethical or improper conduct. Why would E-presto establish the EthicsLine? a. Ethical behavior improves productivity. b. Ethical behavior increases job stability. c. Unethical behavior can destroy a business. d. All of the above are reasons that would justify establishing an EthicsLine

answer

d

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