1. Ethics deals only with compliance to rules and regulations.
a. True
b. False
2. 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
3. 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
4. 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
5. 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
6. 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
7. 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
8. 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
9. One of the questions included in an ethical screen is, “How does it [the decision in question] smell?”
a. True
b. False
10. Corporate social responsibility deals with a firm’s impact on society more than its impact on company employees.
a. True
b. False
11. 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
12. 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
13. A recommended way of creating a socially responsible organizational culture is for managers to lead by example.
a. True
b. False
14. 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
15. 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
16. According to the virtuous circle, corporate profits→good social performance→more profits→more good social
performance.
a. True
b. False
17. 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.
18. 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.
19. 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.
20. 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.
21. 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.
22. 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.
23. 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.
24. 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.
25. 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.
26. 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.
27. 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.
28. 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?
29. 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.
30. 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.
31. 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
32. 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.
33. 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.
34. 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.