Chapter 12: Ethical Crisis Leadership

Test Bank

Multiple Choice

1. One way to learn from a crisis is to examine what other groups and organizations have done. This is referred to as ______.

A. retrospective sense making

B. vicarious learning

C. reconsidering structure

D. issues management

Cognitive Domain: Comprehension

Answer Location: Stage 3: Postcrisis

Difficulty Level: Hard

AACSB Standard: Application of knowledge

2. Transparency consists of ______.

A. openness and rapid response

B. symmetry and strategic ambiguity

C. openness and symmetry

D. thoroughness and concern

Cognitive Domain: Knowledge

Answer Location: Practice Transparency

Difficulty Level: Medium

AACSB Standard: Application of knowledge

3. Which of the following is not true of mindful organizational cultures?

A. preoccupied with failure

B. simplify whenever possible

C. deference to expertise

D. sensitivity to operations

Cognitive Domain: Comprehension

Answer Location: Engage the Head as Well as the Heart

Difficulty Level: Hard

AACSB Standard: Application of knowledge

4. Which of the following is an example of an abnormal accident?

A. plane crash

B. oil spill

C. mining disaster

D. terrorist bombing

Cognitive Domain: Comprehension

Answer Location: Crisis: An Overview

Difficulty Level: Medium

AACSB Standard: Application of knowledge

5. Which of the following is not an additional competency to navigate for a crisis event?

A. decision-making under pressure

B. sensemaking

C. communicating effectively

D. risk-taking

Cognitive Domain: Application

Answer Location: Stage 2: Crisis Event

Difficulty Level: Medium

AACSB Standard: Application of knowledge

6. A product recall is which type of crisis?

A. terrorist

B. economic

C. product

D. public perception

Cognitive Domain: Knowledge

Answer Location: Crisis: An Overview

Difficulty Level: Easy

AACSB Standard: Application of knowledge

7. A bankruptcy is which type of crisis?

A. terrorist

B. economic

C. human resource

D. transportation

Cognitive Domain: Application

Answer Location: Crisis: An Overview

Difficulty Level: Easy

AACSB Standard: Application of knowledge

8. Stage 1 of three stages of a crisis is ______.

A. precrisis

B. crisis event

C. postcrisis

D. true crisis

Cognitive Domain: Knowledge

Answer Location: Stage 1. Precrisis

Difficulty Level: Easy

AACSB Standard: Application of knowledge

9. ______ during the postcrisis stage determines what members might have overlooked.

A. Reconsidering structure

B. Retrospective sensemaking

C. Vicarious learning

D. Discourse of renewal

Cognitive Domain: Application

Answer Location: Stage 3: Postcrisis

Difficulty Level: Hard

AACSB Standard: Application of knowledge

10. ______ in the postcrisis stage refers to making major changes in leadership, mission, organizational structure, and policies as a result of the disruption caused by the crisis event.

A. Reconsidering structure

B. Retrospective sensemaking

C. Vicarious learning

D. Discourse of renewal

Cognitive Domain: Comprehension

Answer Location: Stage 3: Postcrisis

Difficulty Level: Hard

AACSB Standard: Application of knowledge

11. ______ refers to maintaining balanced relationships with outside groups based on two-way communication.

A. Symmetry

B. Openness

C. Resiliency

D. Authenticity

Cognitive Domain: Comprehension

Answer Location: Practice Transparency

Difficulty Level: Easy

AACSB Standard: Application of knowledge

12. ______ is defined as “a firm’s ability to make decisions based on comprehensive information and analysis.”

A. Expertise

B. Rationality

C. Resilience

D. Transparency

Cognitive Domain: Knowledge

Answer Location: Engage the Head as Well as the Heart

Difficulty Level: Easy

AACSB Standard: Application of knowledge

13. All of the following are virtues of an extreme leader EXCEPT ______.

A. resiliency

B. courage

C. optimism

D. loyalty

Cognitive Domain: Comprehension

Answer Location: The Ethical Demands of Extreme Leadership

Difficulty Level: Easy

AACSB Standard: Application of knowledge

14. ______ accidents are deliberate acts designed to disrupt or destroy systems and organizations.

A. Abnormal

B. Deliberate

C. Unfortunate

D. Realistic

Cognitive Domain: Comprehension

Answer Location: Crisis: An Overview

Difficulty Level: Easy

AACSB Standard: Application of knowledge

15. ______ refers to being deliberately vague so as to appeal to many different audiences.

A. Strategic thought

B. Strategic reasoning

C. Strategic ambiguity

D. Strategic intelligence

Cognitive Domain: Comprehension

Answer Location: Practice Transparency

Difficulty Level: Medium

AACSB Standard: Application of knowledge

16. ______ are the warning signs that warn a crisis is possible.

A. Palindromes

B. Prodromes

C. Prodrones

D. Megadrones

Cognitive Domain: Knowledge

Answer Location: Stage 1. Precrisis

Difficulty Level: Medium

AACSB Standard: Application of knowledge

17. Hospital emergency rooms, air traffic control systems, and aircraft carriers are examples of ______.

A. high-reliability organizations

B. low-reliability organizations

C. low uncertainty avoidance

D. high uncertainty avoidance

Cognitive Domain: Application

Answer Location: Engage the Head as Well as the Heart

Difficulty Level: Hard

AACSB Standard: Application of knowledge

18. The second stage of a crisis begins with a ______.

A. cognitive talk

B. self-talk

C. trigger event

D. precrisis

Cognitive Domain: Comprehension

Answer Location: Stage 2: Crisis Event

Difficulty Level: Easy

AACSB Standard: Application of knowledge

19. ______ learns from a crisis by looking for its causes.

A. Introspective sensemaking

B. Introspection

C. Retrospective sensemaking

D. Retrospection

Cognitive Domain: Knowledge

Answer Location: Stage 3: Postcrisis

Difficulty Level: Medium

AACSB Standard: Application of knowledge

20. A ______ is any major unanticipated event that poses a significant threat.

A. cognitive talk

B. self-talk

C. trigger event

D. crisis

Cognitive Domain: Comprehension

Answer Location: Implications and Applications

Difficulty Level: Easy

AACSB Standard: Application of knowledge

21. ______ is the period of normalcy between crisis events.

A. Cognitive talk

B. Self-talk

C. Trigger event

D. Precrisis

Cognitive Domain: Comprehension

Answer Location: Stage 1. Precrisis

Difficulty Level: Easy

AACSB Standard: Application of knowledge

22. ______ begins with identifying emerging issues through the environmental scanning.

A. Impression management

B. Role management

C. Issues management

D. Cognitive management

Cognitive Domain: Knowledge

Answer Location: Stage 1. Precrisis

Difficulty Level: Medium

AACSB Standard: Application of knowledge

23. Proper crisis preparation can also keep us from abandoning our ______.

A. moral compass

B. moral landscape

C. moral principles

D. moral reasoning

Cognitive Domain: Application

Answer Location: Stage 1. Precrisis

Difficulty Level: Medium

AACSB Standard: Application of knowledge

24. The first step in preventing crises is to behave as a ______ person.

A. humble

B. moral

C. genuine

D. reasonable

Cognitive Domain: Comprehension

Answer Location: Assume Broad Responsibility

Difficulty Level: Easy

AACSB Standard: Application of knowledge

25. Extreme settings call for extreme ______.

A. leadership

B. power

C. intelligence

D. control

Cognitive Domain: Knowledge

Answer Location: The Ethical Demands of Extreme Leadership

Difficulty Level: Easy

AACSB Standard: Application of knowledge

26. Transparency begins with ______.

A. change

B. crisis

C. openness

D. hope

Cognitive Domain: Knowledge

Answer Location: Practice Transparency

Difficulty Level: Easy

AACSB Standard: Application of knowledge

27. Negative stories or publicity about an organization’s product would be considered which kind of crisis?

A. terrorist attack

B. product or service

C. economic

D. public perception

Cognitive Domain: Application

Answer Location: Crisis: An Overview

Difficulty Level: Medium

AACSB Standard: Application of knowledge

28. If a train derails or a plane crashes, this is considered which type of crisis?

A. industrial

B. transportation

C. economic

D. terrorist attack

Cognitive Domain: Application

Answer Location: Crisis: An Overview

Difficulty Level: Medium

AACSB Standard: Application of knowledge

29. What is it called when an organization needs to identify emerging issues through environmental scanning?

A. catastrophe probability

B. emerging needs

C. issues management

D. liability probability

Cognitive Domain: Knowledge

Answer Location: Stage 1. Precrisis

Difficulty Level: Medium

AACSB Standard: Application of knowledge

30. What is the first thing an ethical leader can do when a crisis occurs?

A. panic

B. recognize that the crisis has occurred

C. mobilize people and operations

D. run and hide

Cognitive Domain: Application

Answer Location: Stage 2: Crisis Event

Difficulty Level: Easy

AACSB Standard: Application of knowledge

31. ______ draws from the experience of other groups and organizations on what to do and what not to do.

A. Vicarious learning

B. Issues management

C. Reconsidering structure

D. Rapid response

Cognitive Domain: Knowledge

Answer Location: Stage 3: Postcrisis

Difficulty Level: Easy

AACSB Standard: Application of knowledge

32. What is it called when a person acts on behalf of other people with significant risk at hand?

A. the gamble

B. the standoff

C. dominant leadership

D. heroic leadership

Cognitive Domain: Knowledge

Answer Location: Take Decisive (Heroic) Action

Difficulty Level: Medium

AACSB Standard: Application of knowledge

33. What type of heroic leadership is used when leaders use a tactic of trying to get ahead of the crisis by ramping up the magnitude of response?

A. the gamble

B. systematic use of luck

C. order of magnitude

D. the gambit

Cognitive Domain: Knowledge

Answer Location: Take Decisive (Heroic) Action

Difficulty Level: Medium

AACSB Standard: Application of knowledge

True/False

1. Many people should speak for the organization when a crisis strikes.

Cognitive Domain: Comprehension

Answer Location: The Ethical Demands of Extreme Leadership

Difficulty Level: Medium

AACSB Standard: Application of knowledge

2. Crisis preparation leads to quicker recovery from a crisis.

Cognitive Domain: Comprehension

Answer Location: Stage 1. Precrisis

Difficulty Level: Medium

AACSB Standard: Application of knowledge

3. Managing a crisis is the ultimate test of ethical leadership.

Cognitive Domain: Knowledge

Answer Location: What’s Ahead

Difficulty Level: Easy

AACSB Standard: Application of knowledge

4. Theft would be an example of an economic crisis.

Cognitive Domain: Application

Answer Location: Crisis: An Overview

Difficulty Level: Easy

AACSB Standard: Application of knowledge

5. Collapse of financial systems is an example of an outside environment crisis.

Cognitive Domain: Application

Answer Location: Crisis: An Overview

Difficulty Level: Medium

AACSB Standard: Application of knowledge

6. Human bias is a barrier to crisis prevention.

Cognitive Domain: Application

Answer Location: Stage 1. Precrisis

Difficulty Level: Easy

AACSB Standard: Application of knowledge

7. Stage 2 of the three stages of a crisis is the crisis event itself.

Cognitive Domain: Knowledge

Answer Location: Stage 2: Crisis Event

Difficulty Level: Easy

AACSB Standard: Application of knowledge

8. Stage 2 ends at the beginning of the crisis, before it is resolved.

Cognitive Domain: Knowledge

Answer Location: Stage 2: Crisis Event

Difficulty Level: Medium

AACSB Standard: Application of knowledge

9. Investigation and analysis take place during Stage 2 of the three-stage crisis model.

Cognitive Domain: Comprehension

Answer Location: Stage 3: Postcrisis

Difficulty Level: Easy

AACSB Standard: Application of knowledge

10. Good communication skill is one marker of a resilient organizational culture.

Cognitive Domain: Comprehension

Answer Location: Build Resilience

Difficulty Level: Medium

AACSB Standard: Application of knowledge

11. Deep social capital is one of the markers of a resilient organizational culture.

Cognitive Domain: Comprehension

Answer Location: Build Resilience

Difficulty Level: Medium

AACSB Standard: Application of knowledge

12. HROs are known as high-reliability organizations.

Cognitive Domain: Comprehension

Answer Location: Engage the Head as Well as the Heart

Difficulty Level: Easy

AACSB Standard: Application of knowledge

13. The image of an organization usually suffers as people blame it for not preventing the disaster in the first place.

Cognitive Domain: Comprehension

Answer Location: Stage 3: Postcrisis

Difficulty Level: Easy

AACSB Standard: Application of knowledge

Short Answer/Essay

1. Briefly describe the three stages of a crisis.

Cognitive Domain: Comprehension

Answer Location: Stage 1. Precrisis

Difficulty Level: Medium

AACSB Standard: Application of knowledge

2. Explain sensemaking.

What to look for: Did leaders create, facilitate, and rehearse a sensemaking method?

Cognitive Domain: Comprehension

Answer Location: Box 12.1: Crisis Leadership Scorecard

Difficulty Level: Medium

AACSB Standard: Ethical understanding and reasoning

3. Define strategic ambiguity.

Cognitive Domain: Comprehension

Answer Location: Practice Transparency

Difficulty Level: Medium

AACSB Standard: Application of knowledge

4. Discuss transparency as it relates to openness.

Cognitive Domain: Analysis

Answer Location: Practice Transparency

Difficulty Level: Medium

AACSB Standard: Application of knowledge

5. Identify the characteristics of high-reliability organizations.

Cognitive Domain: Comprehension

Answer Location: Engage the Head as Well as the Heart

Difficulty Level: Medium

AACSB Standard: Reflective thinking

6. Define “ethical rationality.”

Cognitive Domain: Comprehension

Answer Location: Engage the Head as Well as the Heart

Difficulty Level: Medium

AACSB Standard: Application of knowledge

7. Explain why assuming responsibility is the foundation of ethical crisis leadership.

Cognitive Domain: Application

Answer Location: Improvise From a Strong Moral Foundation

Difficulty Level: Hard

AACSB Standard: Ethical understanding and reasoning

8. Define transparency and explain why transparency is critical to ethical crisis management.

Cognitive Domain: Comprehension

Answer Location: Practice Transparency

Difficulty Level: Medium

AACSB Standard: Application of knowledge

9. What does it mean to engage the head as well as the heart when responding to crises?

Cognitive Domain: Comprehension

Answer Location: Engage the Head as Well as the Heart

Difficulty Level: Medium

AACSB Standard: Ethical understanding and reasoning

10. Why do you think a significant number of organizations invest little time or effort in crisis prevention?

Cognitive Domain: Application

Answer Location: The Three Stages of a Crisis

Difficulty Level: Hard

AACSB Standard: Ethical understanding and reasoning

11. Is strategic ambiguity always unethical in crisis situations? Why or why not?

Cognitive Domain: Application

Answer Location: Practice Transparency

Difficulty Level: Hard

AACSB Standard: Ethical understanding and reasoning

12. How does the ethic of care apply in crisis situations?

Cognitive Domain: Analysis

Answer Location: Demonstrate Care and Concern

Difficulty Level: Medium

AACSB Standard: Ethical understanding and reasoning

13. Identify three ideas/leadership principles from the course that you believe will contribute the most to your personal ethical development. Describe actual situations in which you will use them, and why you believe them to be of value.

Cognitive Domain: Application

Answer Location: Components of Ethical Crisis Management

Difficulty Level: Hard

AACSB Standard: Reflective thinking

14. How do you define ethical leadership? Defend your definition and provide supporting evidence.

Cognitive Domain: Analysis

Answer Location: Components of Ethical Crisis Management

Difficulty Level: Medium

AACSB Standard: Ethical understanding and reasoning

15. Create your own metaphor to describe ethical and unethical leadership. Explain your metaphor based on principles from the course and the text.

Cognitive Domain: Application

Answer Location: Crisis: An Overview

Difficulty Level: Hard

AACSB Standard: Ethical understanding and reasoning

16. How have you become more of an ethical expert as a result of completing the text and the course?

Cognitive Domain: Application

Answer Location: Components of Ethical Crisis Management

Difficulty Level: Hard

AACSB Standard: Reflective thinking

17. Discuss the virtues that extreme leaders demonstrate.

Cognitive Domain: Comprehension

Answer Location: The Ethical Demands of Extreme Leadership

Difficulty Level: Medium

AACSB Standard: Ethical understanding and reasoning

18. The curriculum at your college or university is going to be revised. The leadership ethics course may be dropped from the catalog. What would you say in defense of the class to the committee making the final decision?

Cognitive Domain: Comprehension

Answer Location: Components of Ethical Crisis Management

Difficulty Level: Medium

AACSB Standard: Ethical understanding and reasoning

19. Discuss the 10 types of crises from Seeger, Sellnow, and Ulmer.

Natural disasters: tornadoes, hurricanes, mudslides, wildfires, blizzards, earthquakes, and volcano eruptions.

Product or service: product recalls, food-borne illnesses, concern about products, and services generated by the media.

Terrorist attacks: bombings, hijackings, abductions, and poisonings.

Economic: cash shortages, bankruptcies, hostile takeovers, and accounting scandals.

Human resource: workplace violence, strikes, labor unrest, discrimination, sexual harassment, school and workplace shootings, theft, and fraud.

Industrial: mine collapses, nuclear accidents, fires, and explosions.

Oil and chemical spills: tanker and railway spills, pipeline and well leaks.

Transportation: train derailments, plane crashes, truck accidents, and multivehicle pileups.

Outside environment: collapse of financial systems, rising fuel prices, deregulation, nationalization of private companies, and mortgage crisis.

Cognitive Domain: Comprehension

Answer Location: Crisis: An Overview

Difficulty Level: Medium

AACSB Standard: Application of knowledge

20. Identify and debunk the five unethical beliefs about crisis management.

Myth 2: We lack the basic knowledge to prevent or understand crises. Researchers don’t know everything about crisis management. However, they have identified a number of steps leaders can take to prevent crises and to manage them when they occur. When leaders fail to act, the problem is not a lack of knowledge but a lack of will.

Myth 3: Better technology will prevent future crises. Resolving crises calls for more than technical solutions. For example, leaders must also communicate effectively, demonstrate flexibility, and think creatively.

Myth 4: Crisis management is inherently detrimental to progress. Risk can never be totally eliminated. Yet some crisis-prone organizations and leaders shouldn’t be allowed to engage in dangerous activities without some oversight. Following the financial crisis that began in 2008, for instance, many observers argued that greater restrictions should be placed on the financial industry to prevent future recessions.

Myth 5: Emotions have no place in crisis management. Emotions have a key role to play in crisis management, as they do in other kinds of ethical decision-making (see Chapter 5). Leaders need to see ethics as a conversation, connecting with stakeholders before, during, and after the crisis. They also need to acknowledge the pain and suffering generated by the crisis, which may have been caused by their decisions and actions.

Cognitive Domain: Comprehension

Answer Location: Stage 1. Precrisis

Difficulty Level: Medium

AACSB Standard: Ethical understanding and reasoning

21. Describe what it would mean to be a chief resilience officer.

Cognitive Domain: Comprehension

Answer Location: Build Resilience

Difficulty Level: Medium

AACSB Standard: Application of knowledge

22. Describe the six principles and/or strategies that equip ethical leaders in each stage of the three stages of a crisis.

Cognitive Domain: Comprehension

Answer Location: Components of Ethical Crisis Management

Difficulty Level: Medium

AACSB Standard: Ethical understanding and reasoning

23. Discuss the four components of a resilient organizational culture.

Cognitive Domain: Analysis

Answer Location: Build Resilience

Difficulty Level: Medium

AACSB Standard: Application of knowledge