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Chapter 6—Strategic Approaches to Improving Ethical Behavior
MULTIPLE CHOICE
1. In the "bad apple-bad barrel" analogy,
a.
no one has the right to label some conduct as unethical.
b.
"bad apples" refer to an unethical corporate culture.
c.
the code of conduct is used to solve all ethical dilemmas faced in the workplace.
d.
"bad apples" are people who will always do things in their own self-interest regardless of
organizational standards of conduct.
e.
a code of conduct is not taken seriously as a key component of an ethics program.
2. Which of the following statements is true about codes of conduct?
a.
Codes are mostly standardized throughout all industries.
b.
Codes are informal ideals about organizational expectations.
c.
Few organizations have written ethical guidelines.
d.
Codes are designed to resolve every ethical dilemma a company may face.
e.
Codes are formal statements describing organizational expectations.
3. Which of the following is not one of the elements of Texas Instruments' Ethics Quick Test?
a.
Is the action legal?
b.
Does it comply with our values?
c.
If you do it, will you feel bad?
d.
How will it look in the newspapers?
e.
What will your coworkers think?
4. Which of the following statements about codes of conduct is false?
a.
They are formal statements of what an organization expects in the way of ethical behavior.
b.
They guarantee an ethical business climate.
c.
They help employees determine what behaviors are acceptable.
d.
They provide rules and guidelines for employees to follow.
e.
They should be specific enough to be reasonably capable of preventing misconduct.
5. Which of the following is not a typical activity for an ethics officer?
a.
Coordinating the U.S. Sentencing Commission annual ethics audit
b.
Assessing needs and risks of the ethics program
c.
Developing, revising, and disseminating a code of ethics
d.
Developing effective training programs
e.
Monitoring and auditing ethical conduct
6. Which of the following is not likely to be a benefit from an ethics training program?
a.
To educate employees about the firm's ethical policies and expectations
b.
To empower employees to ask tough questions and make ethical decisions
c.
To ensure that employees' personal values are in line with those of the organization
d.
To make employees aware of available resources
e.
To demonstrate the importance the organization places on ethics
7. Communication is important in keeping a firm on its ethical course because
a.
centralization may reduce the opportunity for unethical conduct.
b.
top executives must enforce overall ethical standards within the organization.
c.
the moral philosophies of employees are always consistent with the moral philosophies of
top management.
d.
employees must learn when unethical behavior is appropriate to maximize profits.
e.
issues such as price collusion and bribery must be decided on a decentralized basis.
8. Which of the following is not one of the keys to successful ethics training addressed in Chapter 6?
a.
Give employees a means to address ethical issues.
b.
Make employees aware that their actions can define the company's ethical posture.
c.
Help employees understand the ambiguity inherent in ethical situations.
d.
Eliminate the belief that unethical behavior is ever justified.
e.
Provide specific evidence of punishment for an employee who committed an ethical
infraction.
9. One of the most effective methods of ethics training is
a.
getting employees involved in resolving ethical dilemmas that relate to actual situations in
the workplace.
b.
providing a video of the ethics officer.
c.
testing employees on the code of conduct.
d.
discussing cognitive moral development.
e.
providing a CD-ROM of material for employees to view on their own.
10. A behavioral simulation, or role play exercise, is a relatively new ethics training device that
a.
requires the use of technology, including video and the computer.
b.
has been found to be less effective than traditional lecture training methods.
c.
can only be used in small organizations.
d.
focuses on legal issues in the workplace and the skills that employees need to resolve legal
concerns.
e.
recreates the complexities of organizational relationships and aids the development of
analytical skills for resolving ethical issues.
11. About half of the issues raised on ethics help or assistance hotlines relate to
a.
advertising and marketing concerns.
b.
accounting and financial misrepresentations.
c.
improper quality standards.
d.
human resource issues and complaints.
e.
questions about top management's behavior.
12. Toll-free hotlines that companies set up to give employees a place to report misconduct are associated
with which aspect of ethics programs?
a.
Continuously improving the program
b.
Consistently enforcing standards, codes, and punishments
c.
Communicating standards and procedures via ethics training programs
d.
Establishing systems to monitor and enforce ethical standards
e.
Establishing codes of conduct that are reasonably capable of detecting and preventing
misconduct
13. ____ expose an employer's wrongdoing to outsiders, such as the media or government regulatory
agencies.
a.
Private investigators
b.
Whistleblowers
c.
Secret shoppers
d.
Malcontents
e.
Fraud-finders
14. The implementation of an ethics program
a.
is primarily directed at training top managers and developing compensation plans that will
insure top managers are ethical.
b.
translates a plan of action into operational terms and establishes a means by which
organizational ethical performance will be monitored, controlled, and improved.
c.
starts with training and ends with the development of a code of conduct.
d.
will not be successful unless the chief executive officer (CEO) is using a transactional
leadership approach.
e.
will be the same from organization to organization, as there is little need to tailor any
aspect of the program.
15. According to the National Business Ethics Survey, ____ is a primary reason that employees do not
report misconduct.
a.
the fear of retaliation
b.
a concern about safety regulations
c.
having poor personal moral values
d.
the absence of an ethics hotline
e.
a lack of interest
16. Transactional leadership
a.
promotes workplace activities and behaviors through a shared vision and sense of mission.
b.
creates employee satisfaction by negotiating for levels of performance or "bartering" for
desired behaviors.
c.
is practiced by middle managers who are striving to become top managers.
d.
is least effective in firms with an emphasis on manufacturing and industrial products.
e.
cannot be implemented for quickly changing ethical climates or for reacting to ethical
problems or issues.
17. ____ leadership is best suited for higher levels of ethical commitment among employees and strong
stakeholder support for an ethical climate.
a.
Territorial
b.
Transactional
c.
Transcendental
d.
Tactical
e.
Transformational
18. Which of the following is not a recommended step for changing the ethical culture of an organization?
a.
Avoid the perception of hidden agendas.
b.
Implement communications and education strategies.
c.
State your position, philosophy, or belief.
d.
Avoid the use of informal systems to communicate expectations.
e.
Reinforce the policy through measurements and rewards.
19. Five bases of power, including ____, coercive, legitimate, referent, and expert power, can be used to
motivate individuals either ethically or unethically in the workplace.
a.
executive
b.
peer
c.
reward
d.
formal
e.
diverse
20. Which of the following statements best reflects a strategic approach to creating and maintaining an
ethical corporate culture?
a.
"Our code of conduct is window-dressing."
b.
"People are raised with strong personal values and should use them at work to resolve
ethical conflict."
c.
"A decentralized approach to decision making produces the most ethical corporate
culture."
d.
"Hiring and promoting good, ethical managers will automatically produce an ethical
organization."
e.
"Reducing unethical behavior is a business goal no different from increasing profits."
6-5
ESSAY
21. How can an organization develop an effective ethics program?
22. Describe the differences between a compliance orientation and a values orientation to a company's
control system.
23. Describe the importance of codes of conduct to organizations. What aspects of the Texas Instruments'
code of ethics are most useful and effective?
24. What are the key responsibilities of ethics officers? How would the employment background,
personality, and reputation of an ethics officer affect his or her performance on the job?
25. Describe the role that annual performance evaluations can play in creating a strong ethical work
climate.
26. How can an employee hotline be used to advance a company's ethics policies?
27. How does a training and communication plan assist in the implementation of an ethics program?
What are some unique ways that organizations could train and communicate about ethics?
28. Imagine you have just taken a job as CEO of a firm with a recent history of ethical transgressions.
What steps would you take to begin changing the ethical culture of the organization?
29. Describe each group in the 10-40-40-10 model of Variation in Employee Conduct. What does the
model indicate about managing the ethical culture of an organization?
