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Leaders whose decisions and actions are contrary to the firm's values send a signal


A) that the firm's values are trivial or irrelevant.
B) that they are providing a good example of what not to do.
C) that the firm's corporate culture is highly important.
D) that they are working toward improving the ethical culture of the firm.
E) that they care about the environment.

F) C) and E)
G) A) and C)

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Codes, rules, and compliance are essential in organizations. However, an organization built on _____ is more likely to develop a high integrity corporate culture.


A) a charismatic leader
B) the preferences of the CEO
C) the grapevine
D) formal relationships
E) informal relationships

F) B) and C)
G) All of the above

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Which of the following is not a major trend in business today?


A) More women in leadership positions
B) Increasing tendency to use social responsibility as a means of recruiting
C) Making it easier to work from home
D) Employees' awareness and understanding of global issues
E) More isolationist businesses

F) A) and C)
G) B) and E)

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A coaching leader builds a positive climate by


A) valuing people, their emotions, and their needs.
B) focusing on communication across all layers of the organization.
C) inspiring employees to follow their departmental leaders without question.
D) focusing on achievement, initiative, and self-control.
E) developing skills for success, delegating responsibility, and issuing challenging assignments.

F) A) and B)
G) A) and C)

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_____ are a primary influence on employee's ethical behavior because they are role models for the organization's values.


A) Friends
B) Parents
C) Peers
D) Coworkers
E) Leaders

F) B) and C)
G) A) and E)

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As one of the seven habits of strong ethical leaders, _____ is "the glue that holds ethical concepts together." This trait can be developed early in life or developed over time through experience.


A) adequate compensation
B) good employees
C) the passion to do right
D) charisma
E) a great education

F) B) and D)
G) A) and B)

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_____ is the first sign that an unethical decision has occurred.


A) Guilt
B) Reward
C) Punishment
D) Cognitive dissonance
E) Happiness

F) D) and E)
G) C) and E)

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Which of the following is not an individual factor that affects business ethics?


A) Nationality
B) Age
C) Religion
D) Significant others
E) Education

F) All of the above
G) B) and D)

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Trace the ethical decision-making process. You may find it helpful to apply the model to a real business situation or to a hypothetical ethical issue you develop yourself.

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Which of the following is not considered a significant other group in the workplace?


A) Peers
B) Managers
C) Spouses
D) Coworkers
E) Subordinates

F) B) and D)
G) A) and B)

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Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _____ can alter this intent.


A) cognitive dissonance
B) familial expectations
C) religious beliefs
D) the desire for financial gain
E) organizational or social forces

F) None of the above
G) D) and E)

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Those who have influence in a work group are referred to as significant others and include


A) peers, managers, coworkers, and subordinates.
B) family members, peers, and coworkers.
C) spouses and friends.
D) employees in similar job situations.
E) employees who hold the same job.

F) All of the above
G) A) and B)

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According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior.


A) reason
B) significant other
C) individual factor
D) opportunity
E) ethical issue intensity

F) B) and E)
G) None of the above

Correct Answer

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The _____ of an organization can influence the acceptance of, adherence to, transmittal, and monitoring of organizational norms, values, and codes of ethics.


A) nation of origin
B) locus of control
C) leadership style
D) production methods
E) opportunity

F) C) and D)
G) B) and E)

Correct Answer

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Studies have shown that _____ within the organization have more impact on a worker's decisions on a daily basis than any other factor.


A) significant others
B) religion
C) education
D) chief executive officers
E) ethical issues

F) A) and B)
G) A) and C)

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Ethical leadership should be based on


A) holistic thinking that embraces the complex issues facing firms every day.
B) a strong shareholder desire for profits.
C) the opinions of a leader who defines success in terms of group gratification.
D) short-term thinking that looks at the firm's health on a day-to-day basis.
E) people who embrace a transactional style of leadership.

F) C) and E)
G) B) and C)

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Which of the following would not be considered a negative reinforcement of employee behavior?


A) Demotions
B) Firings
C) Ignoring the behavior
D) Reprimands
E) Pay penalties

F) C) and D)
G) A) and C)

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_____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own.


A) Oversight
B) Significant others
C) Organizational culture
D) The ethical climate
E) The legal climate

F) None of the above
G) A) and D)

Correct Answer

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The ethical decision-making framework includes the concepts of ethical issue intensity, individual factors, organizational factors, and opportunity. Discuss how these concepts influence the ethical decision-making process.

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The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and self-control.


A) democratic
B) coaching
C) affiliative
D) coercive
E) pacesetting

F) C) and D)
G) B) and C)

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