Culture Matters Full Test Bank Godfrey Chapter 6

Package Title: Godfrey Test Bank

Course Title: Ethics and Business WileyPLUS

Chapter Number 6

Question type: Multiple-Choice

1) Which one of the following statements best defines the term corporate culture?

a) a set of shared assumptions about how the world works and how people act

b) the characteristics of a population, such as age, race, and income

c) socioeconomic characteristics of a population used to identify consumer preferences

d) the emotional state one experiences when exposed to a new way of life or different attitudes

Title: Chapter 6 Test Bank, Question 01

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: The term culture captures common assumptions and beliefs about how the world works, how people frame and solve problems, and how they act.

2) Everyone understands that Adam was fired for his poor performance. When management says he left “to pursue other opportunities,” they are employing

a) a social cocoon

b) euphemistic language

c) incrementalism

d) cultural misinformation

Title: Chapter 6 Test Bank, Question 02

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Euphemistic language shades the truth, making something painful appear painless, or something ethically questionable seem all right.

3) Anand, Ashforth, and Joshi identified all of the following as ways to justify unethical business behavior, EXCEPT

a) denial of responsibility

b) denial of injury

c) social cocoon

d) appeal to higher loyalties

Title: Chapter 6 Test Bank, Question 03

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Scholars Vikas Anand, Blake Ashforth, and Mahendra Joshi identified three ways in which shared beliefs and assumptions can justify (and encourage) unethical behavior by members of a business: denial of responsibility, denial of injury, and appeal to higher loyalties.

4) According to the Ethical Behavior Continuum, which one of the following choices best describes most people who join an organization?

a) They always behave ethically.

b) They act unethically as much as possible.

c) They want to change the corporate culture.

d) They adopt the corporate culture.

Title: Chapter 6 Test Bank, Question 04

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Most people who join an organization will come to adopt the worldview and culture of the organization.

5) Abjit and Chang are discussing the concept of corporate culture at their company, Veggie Fruit Food Market. Which one of the following statements best communicates an important element of corporate culture?

a) It is taken for granted, not questioned.

b) It involves only invisible elements.

c) It is an optional concept for most businesses.

d) It often openly encourages unethical behavior.

Title: Chapter 6 Test Bank, Question 05

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: An important aspect of culture is its “taken-for-granted” nature.

6) Bruno began his landscaping design business, Big Green Team, with a plan to target a select group of suburban clients who want unique designs. Bruno envisioned a casual, calm office setting that encouraged work–life balance among his employees. To date, every employee in the office works six days each week. They often arrive early in the morning and leave well into the evening to accommodate as many customers as possible. Which of the following choices has had the most effect on the corporate culture?

a) Bruno’s entrepreneurial vision

b) the employees’ experiences

c) customer expectations

d) employee preferences for work schedules

Title: Chapter 6 Test Bank, Question 06

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Culture arises from the shared experiences of people who work together and solve problems.

7) Throughout her life, Courtney has been taught to behave with integrity and to care for others. Courtney has acted ethically at every part-time job she has had, even when others bent and broke rules, and she continues this attitude in her new career position. In terms of the Ethical Behavior Continuum, Courtney best represents which one of the following choices?

a) the peak of the curve

b) the majority of employees

c) one of the “tails”

d) both of the “tails”

Title: Chapter 6 Test Bank, Question 07

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: In any distribution of people, there is one “tail” that believes that honesty, integrity, and caring for others is the way to success. Those people will behave in ethical ways in any organization.

8) Darius works for his family’s construction business. He expresses concern about what he believes is bribery. His manager assures Darius that, in this instance, offering money to city council members in exchange for contract awards is standard industry practice. Which justification method is Darius’s manager using?

a) appeal to higher loyalties

b) incrementalism

c) denial of injury

d) denial of responsibility

Title: Chapter 6 Test Bank, Question 08

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: The first way cultures justify unethical behavior is through a reference to industry practices, or the rules of the game. This is known as denial of responsibility.

9) In the early 2000s, Volkswagen marketed their diesel-powered automobiles as fuel efficient and environmentally friendly. Only a few company executives and engineers knew that these vehicles used engine-control software designed to perform well during emissions testing on laboratory treadmills. The software disabled the emission control features when the cars were driven on roads. When millions of cars were recalled, Volkswagen engineers claimed that they were following executives’ orders. This scenario exemplifies which justification method?

a) denial of responsibility

b) denial of injury

c) social cocoon

d) appeal to higher loyalties

Title: Chapter 6 Test Bank, Question 09

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: The first way cultures justify unethical behavior is through a reference to industry practices, or the rules of the game. This is known as denial of responsibility.

10) Eden operates a resale shop for clothing and accessories. She suspects that she recently purchased some jewelry that was stolen. Eden also assumes that the rightful owner will report the loss to their insurance money and collect a payout, so no one has been disadvantaged. Which justification method is Eden using?

a) appeal to higher loyalties

b) incrementalism

c) denial of injury

d) denial of responsibility

Title: Chapter 6 Test Bank, Question 10

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: People deny injury when no apparent harms occurred to the other party.

11) In 2017, Houston Astros baseball players used live video of opposing pitchers and catchers to steal their pitching signs. In later games, Astros players banged on trash cans with prearranged signals to alert their teammates to upcoming pitches. Some Astros coaches were aware of this system, which violated baseball rules. Which statement most likely explains why players and coaches allowed the sign-stealing scheme to continue through the 2017 season?

a) Sign-stealing is justified because rules are arbitrary and are made to be broken.

b) Signaling the upcoming pitch did not guarantee that a Houston Astros hitter could hit the baseball.

c) Houston Astros fans deserved to see their baseball team have a successful season.

d) The Houston Astros sign-stealing scheme protected players from being injured by stray pitches.

Title: Chapter 6 Test Bank, Question 11

Difficulty: Hard

Bloomcode: Analysis

Min: 2

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: People deny injury when no apparent harms occurred to the other party.

12) When caught cheating on his midterm exam, Finn says he really did not want to do it, but his parents wanted him to get good grades so he could get a high-paying job after graduation. Which one of the following justification methods is Finn using to support his decision to cheat?

a) appeal to higher loyalties

b) incrementalism

c) denial of injury

d) denial of responsibility

Title: Chapter 6 Test Bank, Question 12

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: This justification admits ethical error, and even harm, but it claims that such harms were committed in pursuit of a higher cause.

13) In late January 1986, the launch of the Space Shuttle Challenger had been delayed by several days when Morton Thiokol mangers and engineers met with NASA to discuss the risks of a cold-weather launch. Thiokol’s solid rocket boosters had never been tested during extreme cold, and some Thiokol engineers expressed concern for the astronauts’ safety. NASA managers pushed for launch. When a Thiokol manager asked the engineers to “take off their engineer’s hats” and “put on their manager’s hats,” the engineers relented and ended their objections. The next day, all seven astronauts died when the liquid fuel tank exploded, causing the Challenger to break up at high altitude. This scenario exemplifies which justification method?

a) denial of responsibility

b) incrementalism

c) social cocoon

d) appeal to higher loyalties

Title: Chapter 6 Test Bank, Question 13

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: This justification admits ethical error, and even harm, but it claims that such harms were committed in pursuit of a higher cause.

14) What best differentiates a denial of injury justification from an appeal to higher loyalties?

a) admission of ethical error

b) admission of harm

c) usefulness in new employee socialization

d) usefulness in encouraging unethical business behavior

Title: Chapter 6 Test Bank, Question 14

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Denial of injury admits ethical errors, but it claims no one was harmed. An appeal to higher loyalties admits both ethical error and harm.

15) Garrett has just begun working for a magazine publisher that forbids accepting gifts from vendors. One day, Garrett’s supervisor tells him that it is actually okay to accept a free lunch from a vendor seeking contract awards. A few months later, Garrett decides it is also okay to accept a case of Italian wine in exchange for providing the vendor with inside information about an upcoming bid. This scenario exemplifies which justification method?

a) denial of responsibility

b) incrementalism

c) social cocoon

d) appeal to higher loyalties

Title: Chapter 6 Test Bank, Question 15

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Incrementalism represents a clear effort by those in authority to downplay the harm or evil that might have occurred. The goal of incremental language and enculturation is to turn questions of ethical “black and white” into shades of gray.

16) Harper, newly employed by ABC Company, is hesitant to steal information from a competitor until her colleagues tell her to act like a “team player” and join them in the “long game.” This scenario exemplifies which justification method?

a) euphemistic language

b) incrementalism

c) social cocoon

d) appeal to higher loyalties

Title: Chapter 6 Test Bank, Question 16

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Euphemistic language shades the truth, making something painful appear painless or something ethically questionable seem alright.

17) Edina is a partner in a large law practice. Like everyone else in their office, Edina has a tendency to overestimate the number of billable hours charged to each client. Which one of the following choices best exemplifies Edina’s justification method?

a) euphemistic language

b) incrementalism

c) social cocoon

d) appeal to higher loyalties

Title: Chapter 6 Test Bank, Question 17

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Many technical professions, such as accounting, engineering, and law, have their own unique language, skills, tools, and ways of doing work. It’s easy for people in these careers to become isolated from others and insulated by their professional culture such that they fail to see many ethical challenges.

18) Cassandra is leading a discussion with her team about the company’s code of conduct. Which of the following statements from this discussion best exemplifies a denial of responsibility?

a) “I did exactly what my supervisor told me to do.”

b) “No harm, no foul.”

c) “I had to steal to pay for my spouse’s medical expenses.”

d) “If I didn’t do it, someone else would.”

Title: Chapter 6 Test Bank, Question 18

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Cultures justify unethical behavior through a reference to industry practices, or the rules of the game. This is known as denial of responsibility.

19) Duska is the operations manager at a facilities management firm that works in several municipal buildings. The bidding process for city contracts is the topic of conversation at a lunch meeting of the firm’s management team. Which one of the following statements best exemplifies a denial of injury?

a) “White collar crimes are victimless.”

b) “Without my actions, the company would be out of business.”

c) “Everyone on the city council behaves the same way.”

d) “It’s not as if my managers were always perfect themselves.”

Title: Chapter 6 Test Bank, Question 19

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Denial of injury admits ethical errors, but it claims no one was harmed.

20) Which of the following statements best exemplifies an appeal to higher authorities?

a) “If you buy a purse from a street vendor, you know you’re getting a fake.”

b) “If I didn’t do it, we never would have made payroll this month.”

c) “It’s just how we’ve always recorded our finances.”

d) “I was being a team player.”

Title: Chapter 6 Test Bank, Question 20

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: This justification admits ethical error, and even harm, but it claims that such harms were committed in pursuit of a higher cause.

21) Which of the following statements most accurately describes the consequences of an unethical culture?

a) Justifications like incrementalism begin at new employee orientation.

b) Employees often use management’s bad behavior to justify their major unethical behaviors.

c) When core values do not match managers’ behaviors, employees become more engaged in the company’s goals.

d) When values and behaviors conflict, employees become more productive to overcome their embarrassment.

Title: Chapter 6 Test Bank, Question 21

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: The conflict between stated values and “the way things really work here” drives cynicism, which employees use to justify a host of unethical behaviors, from falsifying time cards and petty theft to major infractions like sexual harassment or embezzlement.

22) Which one of the following statements best describes why companies should use discussions of ethical behavior to help prepare employees for global assignments?

a) Ethical violations in other countries may lead to harsher punishments than they do in the United States.

b) Companies in some countries outside the United States openly encourage unethical behaviors.

c) Most U.S. companies use vague and euphemistic language in their codes of conduct.

d) Employees’ legal liability for unethical behavior is the same in all countries.

Title: Chapter 6 Test Bank, Question 22

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Companies have an ethical responsibility to prepare and train employees for foreign assignments—to protect the employee and the company. Some countries throw people into prison for violating regulations, which is far worse than the mere termination of employment in the United States.

Question type: Short Answer

23) Provide relevant examples of at least two ways that corporate culture can justify unethical behavior.

Title: Chapter 6 Test Bank, Question 23

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.1 Identify the six ways that people can use culture to rationalize unethical behavior.

Section Reference: Sec: 6.1 Corporate Culture and Ethics

Solution: Scholars Vikas Anand, Blake Ashforth, and Mahendra Joshi identified three ways in which members of a business who have shared beliefs and assumptions can justify (and encourage) unethical behavior: denial of responsibility (by referencing industry practices or rules of the game), denial of injury (by accepting that actions may have been less than ethical, but that everyone was a willing participant and knew the potential outcomes), and appeal to higher loyalties (by admitting ethical error and harm in pursuit of a higher cause).

Culture also plays a role in training and socialization in a firm that creates another set of justifications for unethical behavior. New members of an organization can accept corrupt and unethical behaviors as normal through incrementalism (wherein authority figures downplay the harm that might occur), euphemistic language (wherein mild word choices shade the truth), and a social cocoon (wherein career jobs become isolated and insulated from opinions regarding ethical challenges).

Question type: Multiple-Choice

24) Which element of the 7S model specifically describes the plan devised to maintain and build competitive advantage?

a) strategy

b) structure

c) systems

d) staffing

Title: Chapter 6 Test Bank, Question 24

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Strategy is defined as the plan devised to maintain and build competitive advantage.

25) All of the following are elements of the hard triangle of the 7S model, EXCEPT

a) structure

b) skills

c) systems

d) strategy

Title: Chapter 6 Test Bank, Question 25

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Strategy, structure, and systems are referred to as the hard triangle—the tangible elements of the 7S model.

26) Which element of the 7S model is often compared to an iceberg?

a) skills

b) staffing

c) shared values

d) style

Title: Chapter 6 Test Bank, Question 26

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Shared values and culture are often compared to an iceberg—only a small portion of corporate values are formal and visible to most people.

27) Which element of the 7S model is considered the most important?

a) skills

b) shared principles

c) structure

d) strategy

Title: Chapter 6 Test Bank, Question 27

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Strategy may be the most important S because it’s the foundation for everything the firm does or should be doing.

28) Which of the following statements best describes an interpersonal element of the 7S model?

a) style

b) staffing

c) skills

d) systems

Title: Chapter 6 Test Bank, Question 28

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Shared principles and style are interpersonal elements of the 7S model’s soft square.

29) Which of the following best describes the purpose of the 7S model?

a) The 7S model provides a plan for creating an ethical culture in a new business.

b) The 7S model provides a plan for changing cultural norms in an existing business.

c) The 7S model helps one understand how culture functions inside an organization.

d) The 7S model helps one understand how an individual business compares to industry ethical standards.

Title: Chapter 6 Test Bank, Question 39

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: The 7S model serves as an excellent framework to see how culture operates in a business and how it can be leveraged to enhance a commitment to ethics.

30) Which one of the following statements best describes why shared principles are placed at the center of the 7S model?

a) Value alignment is the goal of every organization.

b) Values underpin every other area in an organization.

c) Shared principles are required for organizational success.

d) Organizational values affect how every employee behaves.

Title: Chapter 6 Test Bank, Question 30

Difficulty: Hard

Bloomcode: Evaluation

Min: 3

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Shared principles support every element of the organization and, as such, are placed at the center of the 7S model.

31) In the 7S model, which of the following statements best differentiates the hard triangle from the soft square?

a) effects on corporate ethics

b) their importance to the organization’s overall success

c) their ability to affect corporate culture

d) management’s ability to influence them directly

Title: Chapter 6 Test Bank, Question 31

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Managers can (relatively) quickly change each of the elements of the hard triangle, but they must work long and hard to change elements in the soft square.

32) In the 7S model, what statement best describes how structure is different from staffing?

a) its tangibility

b) its potential effect on ethical action

c) its intangibility

d) its placement at the model’s center

Title: Chapter 6 Test Bank, Question 32

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Structure is part of the hard triangle, which contains tangible elements. Staffing is part of the soft square, which consists of intangible elements.

33) What did Tom Peters mean when he said, “Hard is soft, soft is hard”?

a) Elements in the hard triangle tend to lead to unethical actions more often than those in the soft square.

b) Elements in the hard triangle have less effect on ethical action than do elements in the soft square.

c) It is easier to change an element in the hard triangle than an element in the soft square.

d) It is easier to see and feel an element in the hard triangle than an element in the soft square.

Title: Chapter 6 Test Bank, Question 33

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Managers can (relatively) quickly change each of the elements of the hard triangle, but they must work long and hard to change elements in the soft square.

34) Theo Chocolate is an organic, fair-trade chocolate factory that strives to treat everyone well in the bean-to-bar process. This has created a competitive advantage for Theo. This exemplifies which element of the 7S model?

a) structure

b) strategy

c) staffing

d) skills

Title: Chapter 6 Test Bank, Question 34

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Strategy is about competitive advantage and leaders need to determine what role ethical behavior plays in creating and sustaining strategic advantage.

35) Jing Wei owns a restaurant with little hierarchy. Servers and bussers report to shift managers who report to her. This exemplifies which element of the 7S model?

a) structure

b) staffing

c) systems

d) skills

Title: Chapter 6 Test Bank, Question 35

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Structure is about who does what, who has authority, and who reports to whom. It is found in the organization chart.

36) Consultant Kieran is using the 7S model to better understand how the current culture developed at their organization. What is the best way for Kieran to learn about their company’s structure?

a) become familiar with the training programs and manuals

b) talk to the hiring manager

c) talk to a cross-section of current employees

d) study the organizational chart

Title: Chapter 6 Test Bank, Question 36

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution:

37) Lily notices some irregularities in a colleague’s financial reports and suspects fraud. She reports her suspicions via the company’s hotline. This exemplifies which element of the 7S model?

a) reactive systems

b) proactive systems

c) reactive staffing

d) proactive staffing

Title: Chapter 6 Test Bank, Question 37

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Reactive systems include hotlines, mandatory reporting structures, or formal compliance review processes throughout the company.

38) Attempting to encourage employees to improve workplace safety, executives offer bonuses to department managers who report zero accidents each month. This leads to an underreporting of accidents on the job. This exemplifies a failure in which element of the 7S model?

a) reactive systems

b) proactive systems

c) reactive staffing

d) proactive staffing

Title: Chapter 6 Test Bank, Question 38

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Organizations with a commitment to ethics install offensive systems in the areas of compensation and initiatives around corporate social responsibility.

39) Attempting to encourage employees to improve work speed, management at a chain of automobile repair shops offered bonuses to mechanics who bill more than $200 per hour. As a result, mechanics overcharged for simple repairs and “repaired” things that were never broken. Which one of the following choices describes the best and fastest way to change this example of unethical employee behavior?

a) Post a description of corporate ethical principles in each garage.

b) Create a better screening program for new hires.

c) Eliminate the bonus.

d) Create an employee hotline or helpline.

Title: Chapter 6 Test Bank, Question 39

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Organizations must ensure that compensation systems encourage, not stifle, ethical behavior. What people get paid for doing will determine what they do.

40) Human resources director Matteo routinely performs background checks and reference checks on each job candidate. In addition, during interviews, he poses ethical dilemmas and seriously considers each answer. This exemplifies which element of the 7S model?

a) skills

b) structure

c) systems

d) staffing

Title: Chapter 6 Test Bank, Question 40

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Staffing is about how organizations hire, train, retain, and promote human capital.

41) Manager Narsing cannot award a performance raise unless his direct-report employee has completed all required ethics training for the year. This exemplifies which element of the 7S model?

a) skills

b) staffing

c) shared principles

d) strategy

Title: Chapter 6 Test Bank, Question 41

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Staffing is about how organizations hire, train, retain, and promote human capital.

42) Employees at a regional hospital meet once per quarter to share their best practices with those in other business units. Doing so has increased employee satisfaction and the quality of patient care. This exemplifies which element of the 7S model?

a) skills

b) staffing

c) shared principles

d) strategy

Title: Chapter 6 Test Bank, Question 42

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: Skills outline the critical KSAs (knowledge, skills, and abilities) that lead to organizational success. Knowledge sharing between business units or with other best practice leaders in ethics and compliance improves the core KSAs of the entire business.

Question type: Short Answer

43) Compare and contrast the hard triangle and soft square of the 7S model.

Title: Chapter 6 Test Bank, Question 43

Difficulty: Medium

Bloomcode: Analysis

Min: 5

AACSB: Ethics

Learning Objective: LO 6.2 Describe how the 7S organizational elements create and sustain an organization’s ethical culture.

Section Reference: Sec: 6.2 Using Culture to Enhance Ethics

Solution: The 7S model serves as an excellent framework to see how culture operates in a business and how it can be leveraged to enhance a commitment to ethics. Strategy, structure, and systems are referred to as the hard triangle—tangible elements, or things people can see and feel. Managers can (relatively) quickly change each of these elements. The remaining four elements, staffing, skills, shared principles, and style, constitute the soft square—intangible elements that are difficult to see—and are the major drivers of culture. Managers must work long and hard to change elements in the soft square.

Question type: Multiple-Choice

44) Which one of the following best represents a symbolic tool that can be used to change an organization’s culture?

a) mission statement

b) stories

c) legends

d) daily activities

Title: Chapter 6 Test Bank, Question 44

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Symbols and artifacts like the mission statement, vision statement, formal commitments to social involvement, employee awards, and other visible elements communicate the core principles that guide the organization.

45) Which one of the following statements best represents a substantive tool that can be used to change an organization’s culture?

a) vision statement

b) stories and legends

c) financial reporting

d) formal rewards

Title: Chapter 6 Test Bank, Question 45

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Substantive actions are the daily activities and interactions that people have around ethics and compliance. These include the informal stories and legends that are told every day about what happens to people who are either ethical or unethical.

46) Symbolic actions are often compared to which one of the following options?

a) unwritten rules

b) the dangers lurking beneath the ocean

c) the tip of an iceberg

d) a chicken

Title: Chapter 6 Test Bank, Question 46

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Like an iceberg, symbols and artifacts of culture represent the visible, but smaller, part of an organization’s living culture, the part that an outsider can easily see.

47) Substantive actions represent

a) mostly tangible transactions

b) mostly formal transactions

c) the way an organization hopes to be seen

d) the way things “really are” in an organization

Title: Chapter 6 Test Bank, Question 47

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Substantive actions represent the way ethics and compliance “really are” inside the organization.

48) Which one of the following statements best describes the similarity between symbolic and substantive actions?

a) their usefulness for encouraging ethical behavior in organizations

b) their intangibility

c) their tangibility

d) their usefulness in understanding the daily activities of employees

Title: Chapter 6 Test Bank, Question 48

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Management can leverage the “umbrella” elements of culture—symbols and substance—to encourage ethics.

49) Which best differentiates symbolic actions from substantive actions?

a) their ability to affect ethical actions

b) their formality

c) their focus on sustainability and philanthropy

d) their impact on organizational strategy

Title: Chapter 6 Test Bank, Question 49

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Symbolic actions represent visible, formal parts of an organization’s culture. Substantive actions mostly are the informal interactions among people in an organization.

50) Which of the following best exemplifies a symbolic action?

a) Piper is aware of her manager’s efforts to create a safe working environment.

b) Rachael knows that her colleagues include charges for alcoholic beverages on their expense accounts, though policy prohibits it.

c) Sebastian receives a bonus for completing his projects on time and on budget.

d) Tomas tells his coworkers about the time Vivian was fired for stealing office supplies.

Title: Chapter 6 Test Bank, Question 50

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Symbols and artifacts like the mission statement, vision statement, formal commitments to social involvement, employee awards, and other visible elements communicate the core principles that guide the organization.

51) Which one of the following statements best exemplifies a substantive action?

a) Walt rereads the company mission statement to help make a decision about a potential venture.

b) Xia completes the necessary paperwork for the bank’s regulatory filings.

c) Yuri receives an award for his department’s outstanding safety record.

d) Ziggy knows that his company fails to process year-end returns to inflate its sales numbers.

Title: Chapter 6 Test Bank, Question 51

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Substantive actions are the daily activities and interactions that people have around ethics and compliance. These include the informal stories and legends that are told every day about what happens to people who are either ethical or unethical.

52) Which one of the following statements most accurately describes a symbolic action?

a) It is the most visible part of an organization’s culture.

b) Few of these actions are formal.

c) It represents the largest part of an organization’s living culture.

d) It includes the stories coworkers tell each other about what happens when ethics are violated.

Title: Chapter 6 Test Bank, Question 52

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Symbols and artifacts of culture represent the visible, but smaller, part of an organization’s living culture, the part that an outsider can easily see.

53) Which of the following most accurately describes a substantive action?

a) It is the smallest part of an organization’s living culture.

b) Few of these actions are informal.

c) Obedience to rules and norms is the largest of these actions.

d) It is the most visible part of an organization’s culture.

Title: Chapter 6 Test Bank, Question 53

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Obedience to rules and norms by people at all levels is the largest substantive element of culture.

54) A large corporation discovers that several of its executive assistants have been using their corporate credit cards for pay for non-work-related goods and services. This violates the corporate code of conduct and is considered theft. An investigation proves that one of these assistants stole nearly $500,000 over the course of several years. The company terminated the assistants involved and filed criminal charges. It also created a new method for reporting and approving credit card expenses. Which of the following represents your best recommendation for creating a more ethical culture?

a) Management should reassess the visible symbols to ensure that they are consistent with corporate principles and intended behaviors. Management should also diligently obey the newly created reporting system and allow the story of these assistants to become a legendary/cautionary tale.

b) Since management has taken symbolic action with a new reporting system, it needs to focus on ensuring that daily employee interactions are ethical. This may be best done by prohibiting gossip about the assistants to spread throughout the company.

c) Company management has done all it can to affect corporate culture with the addition of a new reporting system. All other cultural changes require efforts from other company employees.

d) Management should recognize each employee who has behaved in an ethical manner during this time of misconduct.

Title: Chapter 6 Test Bank, Question 54

Difficulty: Hard

Bloomcode: Evaluation

Min: 2

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: As organizational leaders begin to change the culture, they’ll employ both symbolic tools, like policies and procedures, and substantive tools like stories and legends.

Question type: Short Answer

55) Compare and contrast symbolic and substantive actions and their effects on ethical performance.

Title: Chapter 6 Test Bank, Question 55

Difficulty: Medium

Bloomcode: Analysis

Min: 5

AACSB: Ethics

Learning Objective: LO 6.3 Differentiate between symbolic and substantive elements of culture and their effects on ethical performance.

Section Reference: Sec: 6.3 Building an Ethical Culture: Symbolic and Substantive Actions

Solution: Symbols and artifacts represent the visible, but smaller, part of an organization’s living culture. These include mission statements, vision statements, formal commitments to social involvement, employee awards, and other visible elements that communicate the core principles guiding the organization. When leaders work to create a more ethical culture and climate, these symbols matter, and wise leaders pay significant attention to detail.

Substantive actions are the daily, mostly informal interactions around ethics and compliance. They include the stories and legends told every day about what happens to people who are either ethical or unethical. It is important that people at all corporate levels obey the rules and norms; employees are aware of managers who do not “walk the talk.”

Question type: Multiple-Choice

56) Which of the following most accurately describes the phrase “tone at the top” as it refers to ethical leadership?

a) Company leaders have a special responsibility for modeling ethical behavior for all employees below them.

b) Company leaders are responsible for monitoring the behaviors of employees below them.

c) Those in the C-suite often seek additional guidance from personal religious traditions.

d) Those in the C-suite often are strongly influenced by the behaviors of the employees below them.

Title: Chapter 6 Test Bank, Question 56

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: Managers, particularly those in the C-suite, have a responsibility to set the “tone at the top” of the organization (or work group) and to exhibit ethical and moral leadership.

57) At a large company, all of the following choices would be responsible for setting the “tone at the top,” EXCEPT

a) chief executive officer

b) comptroller

c) chief information officer

d) chief marketing officer

Title: Chapter 6 Test Bank, Question 57

Difficulty: Medium

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: Typically, C-suite executives are responsible for setting the “tone at the top.”

58) Which one of the following statements best describes the most common remedy that a board could use when dealing with a C-suite executive who behaves unethically and thus sets a bad tone at the top?

a) additional training

b) counseling

c) termination

d) transfer to another department or division

Title: Chapter 6 Test Bank, Question 58

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: The most common remedy for a bad tone at the top is “getting rid of the bad apples.”

59) According to a recent study of human resource leaders, what should be at the forefront of an organization’s communication strategy?

a) its sales goals

b) its strategic objectives

c) its culture

d) its mission and principles

Title: Chapter 6 Test Bank, Question 59

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: In a recent survey, 67 percent of human resource leaders said that mission and principles should be at the forefront of an organization’s communication strategy.

60) According to a recent study, what do 68 percent of human resource leaders say is the best way to build workplace culture?

a) Include mission and principles in onboarding.

b) Build culture into work processes.

c) Hire employees for cultural fit.

d) Include culture as part of the employee review process.

Title: Chapter 6 Test Bank, Question 60

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: In a recent survey, 68 percent of human resource leaders said that including mission and principles statements in onboarding was the best way to build workplace culture.

61) 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?

a) “Since we make such little money, the time off is really a well-deserved perk.”

b) “We deserve the break more than the mangers do.”

c) “If it’s okay for them to do it, it’s okay for us.”

d) “Why should we be the ones to set a good example for the rest of the office?”

Title: Chapter 6 Test Bank, Question 61

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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.

62) 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?

a) As a member of the board, Abigail should task a lower-level employee with managerial monitoring and the guarding of shareholder interest.

b) As a member of the board, Abigail is required to monitor managerial behavior to fill her fiduciary duty to guard shareholder interests.

c) Abigail’s philosophical ideals are similar to those of the Federal Sentencing Guidelines for Organizations, so she should proceed as planned.

d) Abigail should reconsider her philosophical ideals because they are in direct opposition to a business’s compliance efforts.

Title: Chapter 6 Test Bank, Question 62

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

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

63) 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?

a) The company likely will attract a more diverse workforce.

b) Caroline likely will create its first policies and procedures surrounding ethical hiring.

c) The company powerfully signals to employees its need for an ethical culture.

d) The unethical behavior should stop, especially with a new CHRO known for ethical action.

Title: Chapter 6 Test Bank, Question 63

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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.

64) 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?

a) Evan should be terminated. To lead the repair, the company should hire a replacement director with a strong reputation and track record for ethical behavior.

b) Evan should be terminated. Deepika should step in as temporary director of advertising to lead the repair.

c) Evan should be retrained on the process of contract bidding and awarding. While he does so, Deepika should step in as temporary director of advertising to lead the repair.

d) Deepika should be terminated. To lead the repair, the company should hire a replacement CMO with a strong reputation and track record for ethical behavior.

Title: Chapter 6 Test Bank, Question 64

Difficulty: Hard

Bloomcode: Evaluation

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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.

65) 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?”

a) Faith alone is responsible because she is the formal supervisor.

b) All customer service employees are responsible.

c) Gage alone is responsible because the group seeks his wisdom.

d) Both Faith and Gage are responsible because they are the informal and informal leaders of the group.

Title: Chapter 6 Test Bank, Question 65

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: Everyone in a leadership role—either formal or informal—contributes to the “tone at the top” of their own team, work group, or division.

66) 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

a) defining ethical behavior for others

b) living by a code of ethics

c) measuring ethical performance

d) rewarding ethical behaviors

Title: Chapter 6 Test Bank, Question 66

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

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

67) 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?

a) Live by a code of ethics.

b) Expect ethical behavior from others.

c) Define ethical behavior for others.

d) Reward ethical behaviors.

Title: Chapter 6 Test Bank, Question 67

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: Leaders clearly define what ethical behavior means in their sphere of authority. They don’t use phrases like “Just do the right thing.”

68) 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?

a) Lyle is teaching ethical action to his team.

b) His direct reports should live by a code of ethics.

c) Lyle wants to measure ethical performance.

d) Lyle plans to reward ethical behaviors.

Title: Chapter 6 Test Bank, Question 68

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

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

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

a) Madison holds formal training sessions to discuss the importance of integrity in action.

b) Nigel takes his employees on a two-day retreat to discuss what it means to live authentically.

c) Otto walks by each employee’s work space a few times each day and comments on behavior when warranted.

d) Priya routinely discusses ethics in each employee’s performance review.

Title: Chapter 6 Test Bank, Question 69

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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.

70) 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

a) define her expectations for ethical behavior in others

b) communicate confidence in her employees’ abilities to live up to her expectations

c) live by a code of ethics herself

d) expect ethical behavior from those who work for her

Title: Chapter 6 Test Bank, Question 70

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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.

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

a) Simone engages her employees in a discussion of a news story about a challenging ethical situation.

b) In a staff meeting, Tabitha mentions a current situation where the ethical issue is minor and easy for all to understand.

c) Urban converses with another manager about an ethical issue his team grappled with last month.

d) Vito monitors employee attendance at conferences or events on compliance.

Title: Chapter 6 Test Bank, Question 71

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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.

72) 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?

a) People like targets to aim for, so any behaviors that we measure will improve.

b) If we do not measure ethical performance, we have nothing on which to base our training processes.

c) Having a clear performance standard helps the company set financial goals.

d) Taking measurements is the only way to create an ethical culture.

Title: Chapter 6 Test Bank, Question 72

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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.

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

a) frequently and formally

b) frequently and informally

c) infrequently and formally

d) infrequently and informally

Title: Chapter 6 Test Bank, Question 73

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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.

74) 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?

A. When a company is performing profitably, the need for continuity of leadership is important. A leader’s or board’s decision to change leadership is not an appropriate response when it is employees who are responsible for ethical issues.

B. In this example, the CEO acted as a real leader by refusing to resign and continuing to lead the company in the face of the fake accounts scandal.

C. The tone at the top is an important aspect of a company’s ethical tone. The company’s financially competitive culture and the leadership team’s failure to discover and remedy the problem and cause involving the incentive compensation program meant there was a need for new leadership at the top to send an ethical message.

D. A harsh penalty of resignation or dismissal of CEO Stumpf would send the wrong message to employees and customers.

Title: Chapter 6 Test Bank, Question 74

Difficulty: Hard

Bloomcode: Evaluation

Min: 2

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: 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 type: Short Answer

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

Title: Chapter 6 Test Bank, Question 75

Difficulty: Medium

Bloomcode: Analysis

Min: 5

AACSB: Ethics

Learning Objective: LO 6.4 List the ways in which corporate leadership can positively influence culture.

Section Reference: Sec: 6.4 Tone at the Top and Ethical Leadership

Solution: Corporate leadership influences company culture by setting an appropriate “tone at the top” and acting as role models for all the other employees. Additionally, ethical leaders do six specific things: Live by a code of ethics, define ethical behavior for others, teach ethical action to those who work for and with them, expect ethical behavior from others, measure ethical performance, and reward ethical behaviors.