Question 1

Trust in business is important because:

Accepted Answer

Trust is important in business because stakeholders, including customers, investors, and employees, need to feel confident that the organization will behave in a consistent and reliable manner. Without trust, relationships with stakeholders could break down, leading to negative impacts on the organization's reputation and bottom line. While the other options may be considerations in building trust, they are not the primary reasons trust is important in business.

Question 2

The role of a leader in an organization is to:

Accepted Answer

C

Question 3

Which of the following is NOT an underlying trait of character of an effective leader identified by Johnson?

Accepted Answer

A

Question 4

The stakeholder view emphasizes the obligations of management to:

Accepted Answer

The stakeholder view places emphasis on the fact that management has responsibilities towards not just the shareholders, but also towards all parties impacted by corporate decisions. This includes employees, customers, suppliers, and the community at large. The obligations of management go beyond just maximizing shareholder value, and take into account the impact of corporate decisions on all stakeholders. Therefore, choice C, which includes all parties impacted by corporate decisions, is the best choice.

Question 5

What are the five elements of the framework for understanding ethical decision making in business?

Accepted Answer

The five elements of the framework for understanding ethical decision making in business are ethical issue intensity, individual factors, organizational factors, opportunity, and business ethics intentions, behavior, and evaluations. Option A and B have four and six elements respectively, while option D doesn't include ethical issue intensity, which is a crucial element in ethical decision-making in business.

Question 6

The ethical dissonance model looks at the ethical fit of the organizational and individual values. The optimal fit for an individual with high individual ethics would be:

Accepted Answer

The optimal fit for an individual with high individual ethics would be high-high, where the individual and organization's values align. This would result in ethical congruence and a positive work environment. A high-low fit would result in ethical dissonance, leading to potential ethical dilemmas and conflicts. A low-high fit would also result in ethical dissonance as the individual's values are not reflected in the organization's values. A low-low fit would reflect a lack of ethical concern on both the individual and organizational levels.

Question 7

The 2013 Ethics Resource Center National Business Ethics Survey indicates each of the following results with respect to how employees view the ethics and ethical practices of organizations they work for except:

Accepted Answer

The survey indicates that ethical cultures are weaker (not stronger), misconduct at work has declined (not increased), whistleblowing percentages are unchanged (not decreasing), and falsifying expense reports is declining (not increasing).

Question 8

Which of the following is least likely to be used by a manager to set the right tone to foster ethical leadership?

Accepted Answer

The answer of Which of the following is least likely...

Question 9

Organizational ethics can be thought of as:

Accepted Answer

Organizational ethics refers to the principles and values that guide businesses to make ethically responsible decisions. While A and D are related to organizational ethics, they do not fully encapsulate the concept. C refers to legal requirements, which may not always align with ethical behavior.

Question 10

The Ethical Dissonance Model helps to evaluate:

Accepted Answer

The Ethical Dissonance Model helps to evaluate whether the organization's ethics align with individual ethics. It analyzes the gap between what an individual believes to be ethical and what the organization considers as ethical. This model is used to identify ethical dilemmas and helps in developing processes for ethical decision-making. Options A, B, and C are relevant factors in developing and maintaining an ethical organizational culture but are not evaluated through the Ethical Dissonance Model.

Question 11

In the Pinto case, Ford relied on which approaches to ethical reasoning to decide on a course of action with respect to the faulty gas tank placement:

Accepted Answer

Ethical legalism and utilitarianism are the approaches to ethical reasoning that Ford relied on to decide on a course of action with respect to the faulty gas tank placement in the Pinto case. Ethical legalism holds that the only morally correct actions are those that are in accordance with the law. Utilitarianism holds that the morally correct action is the one that produces the greatest good for the greatest number of people.

Question 12

An ethical corporate culture includes:

Accepted Answer

An explicit statement of values helps to communicate to employees and stakeholders the ethical standards and expectations of the organization. This statement can also serve as a guide for decision-making and behavior. Options A, C, and D are all contrary to an ethical corporate culture. Zero tolerance for mistakes can foster a culture of fear and discourage transparency and learning from mistakes. A focus on results over process can encourage unethical behavior if achieving results becomes the top priority at the expense of ethics. A culture of "do what I say, not what I do" encourages hypocrisy and undermines trust in leadership.

Question 13

With respect to the importance of moral issues in business, Thomas Jones posited that:

Accepted Answer

Thomas Jones posited that moral issues of high intensity are more pronounced than those of low intensity. This means that highly morally charged issues are more likely to have a greater impact on decision-making and business practices than issues that are less morally potent. This is likely because highly charged moral issues are easier to identify and evaluate, and thus carry more weight in the decision-making process.

Question 14

An ethical climate is enhanced by all of the following except:

Accepted Answer

Fear of retaliation can hinder an ethical climate by discouraging employees from speaking up about ethical concerns or reporting unethical behavior. An ethical climate is enhanced by a values-driven organization, openness and transparency, and a supportive environment where employees feel safe to raise ethical concerns without fear of negative consequences.

Question 15

Which of the following is not a component of the Framework for Understanding Ethical Decision Making in Business?

Accepted Answer

The Framework for Understanding Ethical Decision Making in Business includes ethical issue intensity, individual and organizational factors, and business ethics intentions, behaviors, and evaluations. However, internal controls are not listed as a component in the framework.

Question 16

A troubling result of the 2013 National Business Ethics Survey is:

Accepted Answer

The troubling result of the 2013 National Business Ethics Survey is that a high percentage of misconduct is conducted by management. This is particularly concerning as management sets the tone for ethical behavior in the workplace and should be held to a higher standard.

Question 17

A common ethical problem where there is an unrealistic expectation to meet expected results and the ends justifies the means can be best described as:

Accepted Answer

When there is a pressure to maintain the numbers, employees may feel compelled to cut corners or engage in unethical behavior to meet the expected results. This is often driven by a company culture or leadership style that prioritizes outcomes over ethical behavior. The idea that the ends justifies the means can lead to a disregard for ethical considerations and a willingness to engage in unethical behavior to achieve goals.

Question 18

The seven signs of a pending ethical collapse include all but:

Accepted Answer

The seven signs of a pending ethical collapse are pressure to make numbers, fear and silence, young 'uns and bigger than life CEO, weak board, conflicts of interest overlooked, innovation like no other, and goodness in some areas atones for evil in others. The presence of a whistleblowing hotline indicates that the organization is taking steps to address ethical concerns, so it would not be considered a sign of an impending collapse.

Question 19

Which of the following is not an element of an ethical corporate culture?

Accepted Answer

While having an effective external audit can provide assurance that a company's financial statements are accurate and reliable, it is not necessarily considered an element of an ethical corporate culture. The other options, setting a proper tone at the top, establishing strong internal controls, and having an effective internal audit function, are all important components of building an ethical culture within an organization.

Question 20

A unique aspect of Johnson & Johnson's Credo is that it:

Accepted Answer

The Johnson & Johnson's Credo is an aspirational statement that outlines the company's values rather than a strict code of ethics with "thou shalt not" rules. It aims to inspire employees to make ethical decisions based on the company's values rather than simply following a set of strict rules.

Quiz 3: Organizational Ethics and Corporate Governance