Ethical Leadership
Chapter Exam Questions
Course Introduction
Ethical Leadership explores the principles and practices of leading with integrity, fairness, and social responsibility in diverse organizational settings. The course examines theoretical frameworks of ethics and leadership, emphasizing the impact of values-driven decision-making on individual, organizational, and societal outcomes. Through case studies, discussions, and self-assessment, students develop critical skills for recognizing ethical dilemmas, resolving conflicts, and fostering ethical cultures within teams and institutions. Students also learn how ethical leadership contributes to sustainability, trust, and long-term success in both public and private sectors.
Recommended Textbook
Business Ethics Ethical Decision Making and Cases 9th Edition by O. C. Ferrell
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Chapter 1: The Importance of Business Ethics
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Sample Questions
Q1) Principles are
A) laws and regulations that guide behavior in the world of business.
B) mores, values, and customs that guide behavior in general.
C) specific and pervasive boundaries for behavior that are universal and absolute.
D) the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders.
E) the mores, values, and customs that parents teach their children.
Answer: C
Q2) Investors are concerned about business ethics because they know that misconduct can
A) foster stability.
B) improve employee commitment.
C) improve customer loyalty.
D) lower stock value and prices.
E) complicate business financial reporting.
Answer: D
Q3) How do values and judgments play a critical role when we make ethical decisions?
Answer: Page 7
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Chapter 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance
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Sample Questions
Q1) Which ISO guideline pertains to environmental regulation standards and was designed to help reduce a firm's pollution, waste, and carbon footprint?
A) ISO 3000
B) ISO 2000
C) ISO 265000
D) ISO 26000
E) ISO 14000
Answer: E
Q2) Why were the International Organization for Standardization (ISO) 26000 guidelines established?
A) To promote a common understanding in the area of social responsibility.
B) To provide organizations with another social responsibility certification.
C) To educate organizations.
D) To help organizations look good to stakeholders.
E) To establish international environmental standards.
Answer: A
Q3) Why do some businesspeople and scholars question whether ethics should have a role in business?
Answer: Page 37
Page 4
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Chapter 3: Emerging Business Ethics Issues
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Sample Questions
Q1) War metaphors are common in business. This kind of mindset can be dangerous for business leaders because
A) it may lead executives to become violent.
B) it may foster the idea that honesty is unnecessary in business.
C) it may lead organizations to be excessively aggressive.
D) business is not like warfare and the metaphors are not appropriate.
E) business is more like a game than a war.
Answer: B
Q2) What are the different definitions of bribery?
Answer: Page 70-71
Q3) What type of fraudulent activity involves an employee who assists a consumer in fraud?
A) Whacking
B) Duplicity
C) Guile
D) Defamation
E) Collusion
Answer: E
Q4) What is a conflict of interest? Provide an example.
Answer: Page 70
Page 5
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Chapter 4: The Institutionalization of Business Ethics
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Sample Questions
Q1) Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.
A) Sarbanes-Oxley Act
B) U.S. Sentencing Commission's Guidelines for Ethical Compliance
C) Ethical Compliance Act
D) Social Responsiveness Compliance Act
E) Federal Sentencing Guidelines for Organizations
Q2) Cause related marketing can affect consumer _____, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.
A) individual ethics
B) tastes
C) perceptions
D) budgets
E) buying patterns
Q3) Why do you think the costs of compliance with Sarbanes Oxley go down over time?
Q4) What ethical issues affecting consumers and society as a whole are created by unfair competition?
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Chapter 5: Ethical Decision Making and Ethical Leadership
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Sample Questions
Q1) The relationship between business ethics and age
A) shows a negative correlation.
B) is simple. Greater experience leads to better ethical decision making.
C) is complex, although experience helps older employees make ethical decisions.
D) suggests that employees with less experience have a greater ability to deal with complex industry-specific ethical issues.
E) does not demonstrate a statistically significant correlation.
Q2) Which of the following leadership types has a strong influence on coworker support and building an ethical culture through increasing employee commitment and fostering motivation?
A) Transformational leaders
B) Transactional leaders
C) Coercive leaders
D) Pacesetting leaders
E) Authoritative leaders
Q3) 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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Chapter 6: Individual Factors: Moral Philosophies and Values
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Q1) Compare and contrast the two teleological philosophies: egoism and utilitarianism. Include a discussion of the bases that each type uses to evaluate the morality of activities.
Q2) Which moral philosophy considers an act to be morally right or acceptable if it produces some desired result?
A) Teleology
B) Deontology
C) The relativist perspective
D) Ethical formalism
E) Hedonism
Q3) A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n)
A) egoist.
B) teleologist.
C) utilitarian.
D) relativist.
E) humanitarian.
Q4) What is white collar crime and why has it become such a widespread problem?
Page 8
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Chapter 7: Organizational Factors: the Role of Ethical
Culture and Relationships
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Q1) Which of the following is not a form of retaliation commonly experienced by whistle-blowers?
A) Relocation or reassignment
B) No promotion or raises
C) The cold shoulder by coworkers
D) Exclusion from work activities
E) Praise by supervisors for their honesty
Q2) The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary concern about these new incentives is
A) they will encourage too many employees to attempt to blow the whistle on firms, even those that have done nothing wrong.
B) people do not generally respond at all to monetary incentives.
C) whistle-blowers might be tempted to report to the SEC with their reports and not report the misconduct to the company's internal compliance program.
D) people may exaggerate their claims in order to get a reward.
E) the funds paid out to whistle-blower might bankrupt companies.
Q3) Explain how corporate culture influences the ethical behavior of employees within an organization.
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Chapter 8: Developing an Effective Ethics Program
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Sample Questions
Q1) For an ethical compliance program to properly function,
A) consistent enforcement and disciplinary action are essential.
B) employees must be monitored using any means necessary.
C) it is not necessary to set measurable program objectives.
D) the same program should be used in all countries of operation, regardless of cultural differences.
E) the company must wait until after misconduct occurs to develop a means of preventing it.
Q2) Which of the following statements about codes of conduct is false?
A) They are formal statements of what an organization expects of its employees.
B) They guarantee an ethical business climate.
C) They help employees determine what behaviors are acceptable.
D) They provide rules and guidelines for employees to follow.
E) They should be specific enough to be reasonably capable of preventing misconduct.
Q3) What are some of the ways that organizations can develop effective ethics programs?
Q4) What are the major features of a successful ethics training program and communication systems? Think of an example of a company with strong employee ethics training.
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Chapter 9: Managing and Controlling Ethics Programs
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Q1) Independent verification of the ethics audit is important because it lends the report
A) credibility and formality.
B) credibility and reliability.
C) credibility and objectivity.
D) objectivity and civility.
E) objectivity and reliability.
Q2) _____ is an independent assessment of the quality, accuracy, and completeness of a company's social or ethics report.
A) Publication
B) Verification
C) Auditing
D) Analysis
E) Validation
Q3) Which of the following is not a phase of escalation during an ethical disaster?
A) The firm's discovery of the misconduct
B) Ethical issue recognition
C) The firm's response to the misconduct
D) The decision to act unethically
E) The firm's decision to conduct an ethics audit
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Page 11
Chapter 10: Globalization of Ethical Decision Making
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Q1) _____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants.
A) Rational economics
B) Socialism
C) Capitalism
D) Behavioral economics
E) Consumerism
Q2) What is a major role of the International Monetary Fund (IMF)?
A) It determines the credit ratings of countries.
B) It is the lender of last resort for individuals who cannot secure other types of loans.
C) It functions as a collection agent for global banks.
D) It makes short-term loans to member countries that have deficits and provides foreign currencies for its members.
E) It provides mortgage loans to international home buyers.
Q3) How can differences in two countries' cultures create ethical issues in business?
Q4) What are the roles of the IMF and the WTO in encouraging, monitoring, and regulating international trade?
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