1
Chapter 5—Ethical Decision Making and Ethical Leadership
MULTIPLE CHOICE
1. Which of the following is the first step in the ethical decision making process?
a.
Being socialized into the firm’s corporate culture
b.
Applying a personal moral philosophy in order to individualize the ethical decision
making process
c.
Recognizing that an issue requires an individual or work group to make a choice that
ultimately will be judged by stakeholders as right or wrong
d.
Soliciting the opinions of others in a work group or in the overall business in order to gain
feedback
e.
Enforcing the firm’s ethical standards with rewards and punishment
2. Which of the following is not one of the six “spheres of influence” to which individuals are subject
when confronted with an ethical issue?
a.
Educational attainment
b.
Workplace
c.
Family
d.
Legal system
e.
Community
3. The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and self-
control.
a.
democratic
b.
coaching
c.
affiliative
d.
coercive
e.
pacesetting
4. The perceived relevance or importance of an ethical issue to the individual, work group, or
organization is
a.
organizational culture.
b.
immediate job context.
c.
ethical issue intensity.
d.
leadership.
e.
locus of control.
5. Studies have found that more than a third of the unethical situations that lower and middle-level
managers face come from _____.
2
a.
stakeholder expectations and pressures.
b.
pressures to satisfy customers.
c.
pressures from the government to perform at a high level.
d.
internal pressures and ambiguity surrounding internal organizational rules.
e.
investor expectations.
6. According to the ethical decision-making framework, the absence of punishment provides a(n) _____
for unethical behavior.
a.
reason
b.
significant other
c.
individual factor
d.
opportunity
e.
ethical issue intensity
7. _____ have been found to decrease unethical practices and increase positive work behavior.
a.
High educational attainment levels
b.
High levels of community involvement
c.
Charismatic leaders
d.
Strong religious beliefs
e.
Good personal values
8. _____ involves subordinates simply following the directives of a superior without question. It
demonstrates the influence that significant others can exert in the workplace.
a.
Obedience to authority
b.
Locus of control
c.
Opportunity
d.
Transactional leadership
e.
Immediate job context
9. Multiple elements work on individuals to affect their behavior. While an individual may intend to do
the right thing, _____ can alter this intent.
a.
cognitive dissonance
b.
familial expectations
c.
religious beliefs
d.
the desire for financial gain
e.
organizational or social forces
10. A coaching leader builds a positive climate by
a.
valuing people, their emotions, and their needs.
b.
focusing on communication across all layers of the organization.
3
c.
inspiring employees to follow their departmental leaders without question.
d.
focusing on achievement, initiative, and self-control.
e.
developing skills for success, delegating responsibility, and issuing challenging
assignments.
11. If management fails to identify and educate employees about ethical problem areas, ethical issues may
not reach the critical
a.
awareness level.
b.
aptitude level.
c.
ethical level.
d.
organizational level.
e.
individual level.
12. The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems
shared by members of an organization.
a.
corporate culture
b.
intentions of a corporate
c.
ethical issue awareness
d.
determination of a corporation
e.
individual factors
13. Which of the following would not be considered a negative reinforcement of employee behavior?
a.
Demotions
b.
Firings
c.
Ignoring the behavior
d.
Reprimands
e.
Pay penalties
14. Codes, rules, and compliance are essential in organizations. However, an organization built on _____
is more likely to develop a high integrity corporate culture.
a.
a charismatic leader
b.
the preferences of the CEO
c.
the grapevine
d.
formal relationships
e.
informal relationships
15. Which of the following types of leaders attempts to create employee satisfaction through bartering or
negotiating for desired behaviors or level of performance?
a.
Pacesetting leaders
b.
Coercive leaders
4
c.
Transactional leaders
d.
Transformational leaders
e.
Transmogrified leaders
16. Following the ethical directives of a superior relates to
a.
an internal locus of control.
b.
obedience to authority.
c.
moral intensity.
d.
gender.
e.
ethical issue intensity.
17. Which of the following is not a habit of ethical leaders?
a.
They are primarily concerned with themselves.
b.
They are proactive.
c.
They have a passion to do right.
d.
They are concerned with stakeholders’ interests.
e.
They are role models for organizational values.
18. Which of the following leadership types has a strong influence on coworker support and building an
ethical culture through increasing employee commitment and fostering motivation?
a.
Transformational leaders
b.
Transactional leaders
c.
Coercive leaders
d.
Pacesetting leaders
e.
Authoritative leaders
19. Which of the following is not considered a significant other group in the workplace?
a.
Peers
b.
Managers
c.
Spouses
d.
Coworkers
e.
Subordinates
20. Studies have shown that _____ within the organization have more impact on a worker’s decisions on a
daily basis than any other factor.
a.
significant others
b.
religion
c.
education
5
d.
chief executive officers
e.
ethical issues
21. External and internal rewards relate to which part of the ethical decision-making framework?
a.
Individual factors
b.
Significant others
c.
Cognitive moral development
d.
Obedience to authority
e.
Opportunity
22. Which of the following is not a major trend in business today?
a.
More women in leadership positions
b.
Increasing tendency to use social responsibility as a means of recruiting
c.
Making it easier to work from home
d.
Employees’ awareness and understanding of global issues
e.
More isolationist businesses
23. Which of the following is not an issue that helps in business ethics evaluations and decisions?
a.
Ethical issue intensity
b.
Individual factors
c.
Organizational factors
d.
Personal guilt
e.
Opportunity
24. _____ is the first sign that an unethical decision has occurred.
a.
Guilt
b.
Reward
c.
Punishment
d.
Cognitive dissonance
e.
Happiness
25. People who believe in _____, go with the flow because they feel the events in their lives are
uncontrollable.
a.
ethical decision making
b.
internal locus of control
c.
an ethical culture
d.
external locus of control
6
e.
significant others.
26. Which of the following is not an individual factor that affects business ethics?
a.
Nationality
b.
Age
c.
Religion
d.
Significant others
e.
Education
27. _____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders
begin to see the company as like a living organism with a mind and will of its own.
a.
Oversight
b.
Significant others
c.
Organizational culture
d.
The ethical climate
e.
The legal climate
28. Which leadership type values people, their emotions, and their needs and relies on friendship and trust
to promote flexibility, innovation, and risk taking?
a.
Authoritative leadership
b.
Coaching leadership
c.
Pacesetting leadership
d.
Coercive leadership
e.
Affiliative leadership
29. An ethical corporate culture needs _____ along with _____ to establish an ethics program and monitor
the complex ethical decisions being made by employees .
a.
individual ethics; ethical issue intensity
b.
ethical issue intensity; ethics training
c.
organizational factors; individual factors
d.
employee evaluations; good intentions
e.
shared values; proper oversight
30. Those who have influence in a work group are referred to as significant others and include
a.
peers, managers, coworkers, and subordinates.
b.
family members, peers, and coworkers.
c.
spouses and friends.
d.
employees in similar job situations.
e.
employees who hold the same job.
7
31. Sherry’s leadership style often creates a negative working climate because of the high standards she
sets. Sherry is most likely a(n) _____ leader.
a.
autocratic
b.
democratic
c.
pacesetting
d.
empathetic
e.
coercive
32. _____ are a primary influence on employee’s ethical behavior because they are role models for the
organization’s values.
a.
Friends
b.
Parents
c.
Peers
d.
Coworkers
e.
Leaders
33. As one of the seven habits of strong ethical leaders, _____ is “the glue that holds ethical concepts
together.” This trait can be developed early in life or developed over time through experience.
a.
adequate compensation
b.
good employees
c.
the passion to do right
d.
charisma
e.
a great education
34. The _____ leader can create a negative climate because of the high standards that he or she sets. This
style works best for attaining quick results from highly motivated individuals who value achievement
and take initiative.
a.
authoritative
b.
affiliative
c.
democratic
d.
coaching
e.
pacesetting
35. Research concerning nationality and the ability to make ethical decisions
a.
shows no relationship between the two.
b.
is hard to interpret in a business context because of cultural differences.
c.
suggests that organizations should be very concerned about an employee’s nationality.
d.
suggests that corporations pay a lot of attention to such research.
e.
suggests that the influence of nationality on corporate culture is growing.
8
36. The relationship between business ethics and age
a.
shows a negative correlation.
b.
is simple. Greater experience leads to better ethical decision making.
c.
is complex, although experience helps older employees make ethical decisions.
d.
suggests that employees with less experience have a greater ability to deal with complex
industry-specific ethical issues.
e.
does not demonstrate a statistically significant correlation.
37. Employees that see themselves as going with the flow because that’s all they can do have a(n)
a.
external locus of control.
b.
moral intensity
c.
obedience to authority
d.
opportunity
e.
internal locus of control.
38. The _____ of an organization can influence the acceptance of, adherence to, transmittal, and
monitoring of organizational norms, values, and codes of ethics.
a.
nation of origin
b.
locus of control
c.
leadership style
d.
production methods
e.
opportunity
39. For people who begin the value shift that leads to unethical decisions, which of the following is not a
usual justification to reduce and eliminate guilt?
a.
I need a paycheck and can’t afford to quit right now.
b.
Those around me are doing it so why shouldn’t I?
c.
If I don’t do this, I might not be able to get a good reference from my boss when I leave.
d.
If I don’t do this, I might never be promoted.
e.
This is in keeping with my personal morals and the code of conduct, so it is okay.
40. Ethical leadership should be based on
a.
holistic thinking that embraces the complex issues facing firms every day.
b.
a strong shareholder desire for profits.
c.
the opinions of a leader who defines success in terms of group gratification.
d.
short-term thinking that looks at the firm’s health on a day–to–day basis.
e.
people who embrace a transactional style of leadership.
9
41. A fundamental problem in traditional personal character development is that specific vales are used to
teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be
respected. A solution is
a.
to teach more general values to develop a set of basic beliefs.
b.
to ignore moral philosophies and to train solely based on the organization’s code of
conduct.
c.
to teach completely different values and skills in different cultural environments.
d.
to teach individuals intellectual skills that address the complexities of ethical issues in
business.
e.
to teach individuals the literary canons of the major philosophers from both western and
eastern religions.
42. Strong ethical leaders have a passion for all of the following except to
a.
do the right thing.
b.
be proactive
c.
consider stakeholder interests
d.
be role models for the organization and its employees.
e.
satisfy shareholders before other stakeholder groups.
43. Leaders whose decisions and actions are contrary to the firm’s values send a signal
a.
that the firm’s values are trivial or irrelevant.
b.
that they are providing a good example of what not to do.
c.
that the firm’s corporate culture is highly important.
d.
that they are working toward improving the ethical culture of the firm.
e.
that they care about the environment.
44. Which attribute of ethical leaders will not be effective unless the leader is personally involved in the
organization’s key ethical decisions?
a.
Stakeholder compassion
b.
Proactive leadership
c.
Transparency
d.
Moral philosophy
e.
Compensation
45. Which type of leader relies on participation and teamwork to reach collaborative decisions?
a.
Transformational
b.
Coercive
c.
Democratic
d.
Coaching
e.
Pacesetting
10
46. What is not a necessity for strong ethical leaders to make good decisions?
a.
Complete information
b.
Courage
c.
Experience making the right decisions
d.
Knowledge
e.
The ability to coerce subordinates
ESSAY
47. The ethical decision-making framework includes the concepts of ethical issue intensity, individual
factors, organizational factors, and opportunity. Discuss how these concepts influence the ethical
decision-making process.
11
48. Trace the ethical decision-making process. You may find it helpful to apply the model to a real
business situation or to a hypothetical ethical issue you develop yourself.
49. Based on your own decision-making experiences and the material you have read in previous chapters,
attempt to develop your own model, or framework, to describe the ethical decision-making process.
Or, if you prefer, analyze and evaluate the synthesis model of ethical decision making.
50. Discuss the role of leadership in understanding and executing ethical decision making in
organizations.