Question 1

Companies that cultivate cultures of experimentation and curiosity make sure that ________ is not to be avoided at all costs.
A) experimentation
B) failure
C) authority
D) risk taking

Accepted Answer

Companies that cultivate cultures of experimentation and curiosity make sure that failure is not, in essence, an obscene word. They encourage mistakes as a key part of their competitive advantage.

Question 2

Which of the following positive relationships is not supported with consistent results?
A) between ethical performance and measures of financial performance
B) between ethical performance and strong organizational culture
C) between ethical performance and increased employee efforts
D) between ethical performance and enhanced social responsibility

Accepted Answer

Research has found somewhat inconsistent results concerning the overall relationship between ethical performance and measures of financial performance. However, positive relationships have generally been found between ethical performance and strong organizational culture, increased employee efforts, lower turnover, higher organizational commitment, and enhanced social responsibility.

Question 3

Effective learning organizations must redistribute ________,________,and ________ in order to assure that there is a common body of knowledge.
A) rewards; training; handbooks
B) training; knowledge; pay raises
C) knowledge; financial rewards; intangible rewards
D) information; knowledge; rewards

Accepted Answer

Effective organizations must redistribute information, knowledge (skills to act on the information), and rewards. To do so, firms need to develop a culture that:(1) encourages employees to offer ideas, ask questions, and express concerns; (2) encourages widespread sharing of information from various sources; (3) identifies opportunities and makes it safe to experiment; (4) encourages collaborative decision making and the sharing of best practices; and (5) utilizes technology to facilitate both the gathering and sharing of information.

Question 4

Empowering individuals by soliciting their input helps an organization to enjoy better employee
A) retention.
B) performance.
C) morale.
D) communication.

Accepted Answer

Empowering individuals by soliciting their input helps an organization to enjoy better employee morale. It also helps create a culture in which middle- and lower-level employees feel that their ideas and initiatives will be valued and enhance firm performance.

Question 5

An ethically sound organization,drawing on the concepts of stakeholder management,can also strengthen its bonds among its ________,________,and ________.
A) policies; procedures; values
B) values; organizational design; employees
C) suppliers; customers; governmental agencies
D) current employees; potential employees; future employees

Accepted Answer

Positive, constructive relationships among individuals (i.e., social capital) are vital in leveraging human capital and other resources in an organization. Drawing on the concept of stakeholder management, an ethically sound organization can also strengthen its bonds among its suppliers, customers, and governmental agencies.

Question 6

In the compliance-based approach to ethics management,the objective is to
A) conform with externally imposed standards.
B) prevent criminal misconduct.
C) enable responsible conduct.
D) reduce discretion, training, controls, audits, and penalties.

Accepted Answer

According to Exhibit 11.5 on the approaches to ethics management, the objective of the compliance-based approach is to prevent criminal misconduct.

Question 7

Creating an ethical framework and developing organizational capabilities to make it operational is the responsibility of
A) employees.
B) shareholders.
C) the law.
D) leadership.

Accepted Answer

An important responsibility of leadership is to create this ethical framework and develop the organizational capabilities to make it operational.

Question 8

________ is rarely self-sustaining in an organization.
A) High-integrity
B) Integrity
C) Individual integrity
D) Leader integrity

Accepted Answer

There cannot be high-integrity organizations without high-integrity individuals. However, individual integrity is rarely self-sustaining. Even good people can lose their bearings when faced with pressures, temptations, and heightened performance expectations in the absence of organizational support systems and ethical boundaries.

Question 9

Unethical business practices typically involve the ________ cooperation of others and reflect the values,attitudes,and behavior patterns that define the operating culture of the organization.
A) select
B) complete
C) explicit
D) tacit

Accepted Answer

Unethical business practices typically involve the tacit, if not explicit, cooperation of others and reflect the values, attitudes, and behavior patterns that define an organization's operating culture.

Question 10

The chance of ethical crises occurring is enhanced if
A) the leader defines the corporate culture.
B) the organization has a weak ethical culture.
C) the shareholders have no confidence in the CEO.
D) employees follow the direction of the leader.

Accepted Answer

Without a strong ethical culture, the chance of ethical crises occurring is enhanced.

Question 11

Which of the following is not a source for acquiring external environmental information for the firm mentioned in the text?
A) alliance partners
B) equity analysts
C) suppliers
D) scientific community

Accepted Answer

Firms can tap into knowledge from alliance partners, suppliers, competitors, and the scientific community. For example, in the pharmaceutical and biotechnology industries, participation in networks and alliances is increasingly common and critical to knowledge diffusion and learning. To gain up-to-date information on particular rivals, firms can monitor the direct communications from rival firms and their executives, such as press releases and quarterly-earnings calls. These communications can provide insight on the rival actions and intended actions. It may also be valuable to follow rival-firm employee online postings, on Twitter and other platforms, to gain insights on rival investments and actions.

Question 12

The central key to empowerment is effective leadership.Leading-edge organizations recognize the need for ________,________,and ________ at all levels instead of the extensive and cumbersome rules and regulations inherent in hierarchical control.
A) trust; cultural control; expertise
B) training; finances; expertise
C) respect; finances; trust
D) control, order, finances

Accepted Answer

The central key to empowerment is effective leadership. Empowerment cannot occur in a leadership vacuum. Leading-edge organizations recognize the need for trust, cultural control, and expertise at all levels instead of the extensive and cumbersome rules and regulations inherent in hierarchical control. Some commentators have argued that too often organizations fall prey to the heroes-and-drones syndrome, wherein the value of those in powerful positions is exalted and the value of those who fail to achieve top rank is diminished. Such an attitude is implicit in phrases such as:"Lead, follow or get out of the way," or "Unless you are the lead horse, the view never changes." Few will ever reach the top hierarchical positions in organizations, but in the information economy, the strongest organizations are those that effectively use the talents of all the players on the team.

Question 13

According to the former CEO of Hanover Insurance,learning organizations require that everyone feels and supports a compelling purpose.What is the most difficult aspect of creating this learning organization?
A) Communicating an image of the future that draws people in and speaks to them
B) Putting systems in place for training
C) Find the resources for the necessary educational training
D) Getting the shareholders to agree with the CEO

Accepted Answer

A critical requirement of all learning organizations is that everyone feels and supports a compelling purpose. The former CEO of Hanover Insurance discovered that people have a real need to feel that they are part of an enabling mission. Successful learning organizations create a proactive, creative approach to the unknown, actively solicit the involvement of employees at all levels, and enable all employees to use their intelligence and apply their imagination.

Question 14

Which of the following statements about ethics is false?
A) Ethics may be defined as a system of right and wrong.
B) Ethics assists individuals in deciding when an act is moral or immoral.
C) Ethics can be assessed by the legality of an action.
D) Business ethics is the application of ethical standards to commercial enterprises.

Accepted Answer

Ethics may be defined as a system of right and wrong. Ethics assists individuals in deciding when an act is moral or immoral, socially desirable or not. Business ethics is the application of ethical standards to commercial enterprise.

Question 15

As a manager,when faced with ethical crises you should
A) focus on issues most relevant to stockholders.
B) wait for the other party to make the first move.
C) take the initiative to address the problem.
D) cover up as much as possible.

Accepted Answer

Ethical leaders must take personal, ethical responsibility for their actions and decision making. Leaders who exhibit high ethical standards become role models for others and raise overall organization level of ethical behavior.

Question 16

A strong ethical orientation can have ________ on employee commitment and motivation to excel.
A) mitigating results
B) a positive effect
C) a negative impact
D) an expensive outcome

Accepted Answer

The advantages of a strong ethical orientation can have a positive effect on employee commitment and motivation to excel. This is particularly important today in knowledge-intensive organizations, where human capital is critical in creating value and competitive advantages.

Question 17

Less than 18 percent of voluntary customer contributions in a recent year went to renewable energy development in the Duke Power of Indiana program called GoGreen Power.This is an example of
A) a benefit of an ethical organization.
B) eco-friendly program development.
C) greenwashing.
D) a successful ethical marketing campaign.

Accepted Answer

Some utilities have simply gotten off to a slow start or found it difficult to profitably offer alternative power. Others, however, are suspected of committing a new type of fraud called greenwashing. This refers to companies that make unsubstantiated claims about how environmentally friendly their products or services really are. In the case of many power companies, their claims of green power are empty promises. Instead of actually generating additional renewable energy, most of the premiums are going for marketing costs.

Question 18

In the compliance-based approach to ethics management,the methods used include
A) education, leadership, accountability, decision processes, auditing, and penalties.
B) reduced discretion, training, controls, audits, and penalties.
C) self-governance.
D) conformity with externally imposed standards.

Accepted Answer

According to Exhibit 11.5 on the approaches to ethics management, the methods used in the compliance-based approach include reduced discretion, training, controls, audits, and penalties.

Question 19

In organizations,ethical behavior must start with ________ before ________ can be expected to perform accordingly.
A) the employees; the shareholders
B) the shareholders; the leader
C) the leader; the employees
D) the leader; the shareholders

Accepted Answer

Ethical behavior must start with the leader before the employees can be expected to perform accordingly.

Question 20

In the integrity-based approach to ethics management,the objective is to
A) conform with externally imposed standards.
B) prevent criminal misconduct.
C) enable responsible conduct.
D) reduce discretion, training, controls, audits, and penalties.

Accepted Answer

According to Exhibit 11.5 on the approaches to ethics management, the objective of the integrity-based approach is to enable responsible conduct.

Quiz 11: Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Companies that cultivate cultures of experimentation and curiosity make sure that ________ is not to be avoided at all costs.

Which of the following positive relationships is not supported with consistent results?

Effective learning organizations must redistribute ,,and in order to assure that there is a common body of knowledge.

Empowering individuals by soliciting their input helps an organization to enjoy better employee

An ethically sound organization,drawing on the concepts of stakeholder management,can also strengthen its bonds among its ,,and .

In the compliance-based approach to ethics management,the objective is to

Creating an ethical framework and developing organizational capabilities to make it operational is the responsibility of

________ is rarely self-sustaining in an organization.

Unethical business practices typically involve the ________ cooperation of others and reflect the values,attitudes,and behavior patterns that define the operating culture of the organization.

The chance of ethical crises occurring is enhanced if

Which of the following is not a source for acquiring external environmental information for the firm mentioned in the text?

The central key to empowerment is effective leadership.Leading-edge organizations recognize the need for ,,and at all levels instead of the extensive and cumbersome rules and regulations inherent in hierarchical control.

According to the former CEO of Hanover Insurance,learning organizations require that everyone feels and supports a compelling purpose.What is the most difficult aspect of creating this learning organization?

Which of the following statements about ethics is false?

As a manager,when faced with ethical crises you should

A strong ethical orientation can have ________ on employee commitment and motivation to excel.

Less than 18 percent of voluntary customer contributions in a recent year went to renewable energy development in the Duke Power of Indiana program called GoGreen Power.This is an example of

In the compliance-based approach to ethics management,the methods used include

In organizations,ethical behavior must start with before can be expected to perform accordingly.

In the integrity-based approach to ethics management,the objective is to