Question 1

At XYZ Company, managers are publicly praised for their efforts, and employees are often encouraged to emulate these managers. Recently, a group of department managers began leaving the office every Thursday afternoon to play a round of golf. Soon after, many of their direct reports begin to disappear for long stretches of time during the workday to engage in various non-work-related activities. To excuse their actions, the direct reports are most likely using which one of the following logical thoughts?

Accepted Answer

When management feels that their position exempts them from following the policies of a company, everyone who works for that person will soon believe the same thing. The logic of "If it's good enough for the CEO, it's good enough for me" will become the excuse that others use to skirt rules.

Question 2

Abigail is a member of the board of directors at a large insurance firm. A strong believer in Aristotelian ethics, Abigail tells you she thinks that people typically will do the right thing without need for supervision or oversight. What is your best response?

Accepted Answer

The board has a fiduciary duty to guard shareholder interests and monitor the behavior of the people in the C-suite.

Question 3

Chief human resources officer Brady was terminated for discriminating against certain candidates for employment. The company replaced him with Caroline, someone with a track record of diverse hiring. In this example, how does the company benefit substantively?

Accepted Answer

When the board removes an offending executive for ethical lapses, the company benefits substantively- the offending manager is removed and that means that poor behavior should cease, particularly when the new occupant of the position is brought in with a reputation for strong ethics.

Question 4

Deepika is the chief marketing officer (CMO) at a consumer products firm. Reporting to her is Evan, the director of advertising. Deepika discovers that over the last three years, Evan has been accepting money from vendors in exchange for contract awards. Based on this information alone, which one of the following statements is your best recommendation for moving forward?

Accepted Answer

Termination is the most common remedy for a bad tone at the top. Common sense dictates that a manager who presided over a major ethical breach or compliance failure should not be the person to lead the repair.

Question 5

Faith supervises a group of customer service representatives. Often, these employees seek out Gage, a long-term and knowledgeable customer service rep, for advice or information about their work. In this example, which one of the following choices best describes the person(s) responsible for setting the "tone at the top?"

Accepted Answer

Everyone in a leadership role-either formal or informal-contributes to the "tone at the top" of their own team, work group, or division.

Question 6

As a Muslim, Izaan distinguishes between what is halal (right or ethical) and what is haram (wrong or unethical). His ultimate goal is to develop Adab, or right conduct. In terms of the six specific actions of ethical leadership, Izaan is

Accepted Answer

When leaders live by a code of ethics, they often draw from religious tradition, philosophical study, or their own experiences.

Question 7

Johanna is a nursing supervisor who recently fired an employee for discriminatory behavior. When Kent, a new employee, approaches Johanna for guidance, she tells Kent not to worry about the terminated employee's misdeeds. Johanna instructs Kent to "use his head" and "follow his heart." Which one of the following statements best describes how Johanna has failed to properly advise Kent?

Accepted Answer

Leaders clearly define what ethical behavior means in their sphere of authority. They don't use phrases like "Just do the right thing."

Question 8

When composing a memo to his direct reports about a new procedure, Lyle includes a few comments about ethical compliance. When he hears interesting stories about ethical situations in the news, Lyle engages his employees in conversation. Which one of the following statements best describes what Lyle is attempting to accomplish?

Accepted Answer

The best leaders use every possible interaction, from formal memos to informal conversations, to help their teams understand what's right and wrong.

Question 9

Which of the following statements is the best example of an informal method that leaders could use to communicate their expectations for ethical behavior?

Accepted Answer

The best ethical leaders use both formal and informal methods to communicate their expectations. Formal methods include training, performance reviews, and settings such as staff meetings or retreats. Informal methods include "ethical management by walking around," which includes the opportunity to observe people in action and reinforce expectations.

Question 10

Several times throughout the year, Regan uses training sessions and staff meetings to communicate her ethical expectations to her direct reports. She also walks the production line several times each day to observe and, hopefully, reinforce employee behaviors. Regan is known for ending each meeting and casual conversation by saying, "Doing the right thing is important. I just hope you can actually do it." In this example, Regan has failed to

Accepted Answer

Along with expectations (backed up by clear definitions and training), leaders communicate to their associates a clear confidence that they can live up to those expectations.

Question 11

Which of the following best represents a formal method for measuring ethical performance?

Accepted Answer

As with the other elements of ethical leadership, some measures will be formal and others informal. Formal measures include mandatory training, attendance at conferences or events, or formal ethics and compliance reviews. The most effective informal methods are conversations and debriefs of both ethically challenging situations and ethically easy situations.

Question 12

Wren is new to her leadership position and wants to foster an ethical working environment. She says to you, "I just don't understand why I need to measure ethical performance. Isn't it just a yes-or-no situation?" What is your best response?

Accepted Answer

Any behavior that we measure will improve. We all want targets to shoot for; no one wants to be the one who falls below the performance standard.

Question 13

Which one of the following options is the best way to reward ethical behavior to promote its continuation?

Accepted Answer

Smart leaders use more frequent and informal rewards to encourage ethical behaviors. These rewards range from highlighting exemplary actions in staff meetings to simple but heartfelt expressions of thanks and admiration. These small rewards often mean more than larger ones.

Question 14

In 2011, Wells Fargo Financial Services attempted to gain competitive advantage in the marketplace by "cross-selling" banking services to its existing customers. It created an employee sales program wherein financial rewards were offered to sales representatives who met or exceeded sales goals. In 2016, the Consumer Financial Protection Bureau found that more than two million bank accounts or credit cards were opened without customers' knowledge or consent. In the end, more than 5,000 employees were terminated. Wells Fargo's CEO John Stumpf rebuffed suggestions that he resign, saying, "I think the best thing I could do right now is lead this company, and lead this company forward." Were CEO Stumpf's comments an example of appropriate leadership in this instance?

Accepted Answer

In widespread ethical failures, removal of top leadership is an appropriate solution to send a message to employees and the market and to restore ethical confidence.

Question 15

Present and discuss two examples that describe how ethical leadership can positively influence culture.

Accepted Answer

The answer of Present and discuss two examples that describe...

Quiz 6: Culture Matters