Ethical Leadership
Pre-Test Questions
Course Introduction
Ethical Leadership explores the principles, challenges, and practices of leading with integrity in a variety of organizational and societal contexts. The course examines foundational ethical theories, decision-making frameworks, and the responsibilities of leaders to foster ethical cultures. Through case studies, discussions, and reflective activities, students analyze the complexities of ethical dilemmas, the influence of personal values, and the impact of organizational structures on ethical behavior. The course aims to equip future leaders with the skills and insights necessary to navigate moral challenges and promote trust, accountability, and social responsibility within their spheres of influence.
Recommended Textbook
Business and Society Ethics Sustainability and Stakeholder Management 10th Edition by Carroll
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19 Chapters
1512 Verified Questions
1512 Flashcards
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2
Chapter 1: The Business and Society Relationship
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Sample Questions
Q1) Major institutions in a pluralistic, special-interest society will inevitably receive A) praise.
B) special favors.
C) analysis and criticism.
D) tax advantages.
Answer: C
Q2) The authors of the textbook lay the primary responsibility for business's problems on the media.
A)True
B)False
Answer: False
Q3) The principal internal stakeholders of a corporation are its customers and employees.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Corporate Social Responsibility, Citizenship, and Sustainability
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Sample Questions
Q1) The CSR Pyramid is a stakeholder model--that is, each of its components addresses different stakeholders.
A)True
B)False
Answer: True
Q2) The relationship between corporate social performance and financial performance is viewed from three different perspectives. The symbiotic view
A) states that financial performance determines social performance.
B) high social performance leads to improved financial performance.
C) states that there is an interactive relationship among social performance, financial performance, and corporate reputation.
D) is synonymous with the contingency view of Husted.
Answer: C
Q3) An argument for corporate social responsibility is that it helps business compete in the global economy.
A)True
B)False
Answer: False
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Chapter 3: The Stakeholder Approach to Business, Society, and Ethics
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Sample Questions
Q1) The transactional level of stakeholder management capability requires companies to compete on the basis of their financial strength and tangible assets.
A)True
B)False
Answer: False
Q2) Which of the following statements is accurate?
A) Stockholders are the same thing as stakeholders.
B) All stakeholders are stockholders.
C) Stakeholders are a subset of stockholders.
D) Every stockholder is a stakeholder.
Answer: D
Q3) The perceived validity or appropriateness of a stakeholder's claim is referred to as A) power.
B) legitimacy.
C) urgency.
D) coercion.
Answer: B
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Page 5
Chapter 4: Corporate Governance: Foundational Issues
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Sample Questions
Q1) The textbook mentions that business as a whole rarely, if ever, addresses the issue of legitimacy at the macro level. Imagine that the Chamber of Commerce approaches you to design a campaign to assure its legitimacy with the public. What kinds of issues would you address?
Q2) Practically speaking the corporate CEO often does the work the nominating committee should do.
A)True
B)False
Q3) Why is the generous nature of CEO retirement packages particularly frustrating to the public?
Q4) Penalties under the Sarbanes-Oxley Act can include fines and prison terms.
A)True
B)False
Q5) Because of its theoretical role of authority over the CEO, it has always been the board's responsibility to get tough with the senior manager when needed.
A)True
B)False
Q6) Should directors be held personally liable in cases of corporate misconduct?
Q7) What are the two main issues associated with CEO pay?
Page 6
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Chapter 5: Strategic Management and Corporate Public Affairs
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Sample Questions
Q1) Three broad ways corporations intersect with society include each of the following except:
A) generic social issues
B) value chain social impacts
C) strategic social integration
D) social dimensions of competitive context
Q2) Sustainability reports help companies
A) By disrupting their communications systems
B) Managing their finances
C) Isolating their performance
D) With their competitive positions
Q3) What does a sustainability report attempt to measure? What is the benefit of integrated reporting?
Q4) What is a "value shift" and how does it come about?
Q5) Enterprise-level strategy and societal-level strategy are synonymous.
A)True
B)False
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Q6) Why would a firm elect to perform a sustainability report, when it is not required? What benefits can accrue from a sustainability report?
Chapter 6: Risk, Issue, and Crisis Management
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Sample Questions
Q1) Which of the following is not one of the four stages of a crisis?
A) prodromal stage
B) acute crisis stage
C) chronic crisis stage
D) crisis regulation stage
Q2) The most important thing in issue identification is
A) selection of the proper sources to scan.
B) assigning the right person to scan the environment.
C) identification of stakeholders with power, legitimacy, and urgency.
D) getting the people who are confronted with new issues in touch with top managers.
Q3) Emerging issues have all of the following characteristics except
A) the terms of the debate are not clearly defined.
B) the issue deals with matters of conflicting values and interests.
C) trade-offs are not yet needed.
D) the issue does not lend itself to resolution by expert knowledge.
Q4) Differentiating between risk, issue, and crisis management is easy.
A)True
B)False
Q5) Describe the issues development process.
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Chapter 7: Business Ethics Essentials
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Sample Questions
Q1) There is no doubt that the media are
A) ignoring ethical violations in their own industry.
B) reporting ethical problems more frequently and fervently.
C) defending the right of business to be conducted amorally.
D) reporting breaches of ethics in politics more than they are reporting business ethics violations.
Q2) Distinguish between descriptive and normative ethics.
Q3) Managers who believe that business decisions are not subject to moral constraints tend to utilize the
A) immoral management model.
B) moral management model.
C) intentional amoral management model.
D) unintentional amoral management model.
Q4) The public's view of business ethics has always been very high until the recent scandals.
A)True
B)False
Q5) If business ethics have, in reality, declined over the past decades, what are the primary reasons for this movement?
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Chapter 8: Managerial and Organizational Ethics
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Sample Questions
Q1) The Rawls Principle of Justice indicates that we need a fair method by which we may choose the principles through which conflicts will be resolved. Which of the following is not a principle of justice underlying his theory?
A) each person has equal rights to the most extrinsic basic liberties compatible with similar liberties for all others.
B) social and economic inequalities are arrange so that they are both to be everyone's advantage and attached to positions and offices open to all.
C) each person is to be treated equally.
D) public policy should raise as high as possible the social and economic well-being of society's best-off individuals.
Q2) Throughout the text, theory after theory has been offered. Some would even say that you should just go on your "gut feeling" anyway. With this in mind, what relevance does the common sense test and one's best self ethical tests have in this idea.
Q3) Society's moral climate has an indirect impact on organizational ethics.
A)True
B)False
Q4) Evaluate the principle of utilitarianism.
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Chapter 9: Business Ethics and Technology
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Sample Questions
Q1) A continuing concern in the realm of privacy issues is:
A) identity theft.
B) DNA duplication.
C) theft of intellectual property.
D) the distinction between "opting in" versus "opting out."
Q2) The Non GMO Project is:
A) non-profit collaboration of manufacturers, retailers, processors, distributors, farmers, seed companies and consumers
B) mission driven to ensure the lack of non-GMO choices
C) about everyone having limited availability of non-GMO choices
D) about genetically modified foods
Q3) At one time, it was assumed that the use of robotics in the workplace would lead to:
A) more jobs
B) fewer jobs
C) no change in the number of jobs
D) higher tech jobs
Q4) Discuss the pros and cons of genetic testing. Analyze what impact you believe the Genetic Information and Nondiscrimination Act will have on this issue.
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11
Chapter 10: Ethical Issues in the Global Arena
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Sample Questions
Q1) Cultural differences between an MNC's home country and its host country sometimes make it difficult to distinguish between cultural issues and ethical issues.
A)True
B)False
Q2) Transparency International has sought to fight world corruption. Reflect on the meaning of their five priorities and two principles.
Q3) An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions are contained in A) social audits.
B) ethical impact statements.
C) human rights statements.
D) environmental impact statements.
Q4) All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except
A) allowing workers to form unions.
B) prohibiting corporal punishment.
C) providing retirement benefits.
D) limiting work to a maximum of 48 hours per week.
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Page 12
Chapter 11: Business, Government, and Regulation
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Sample Questions
Q1) According to the authors, the tension between business and government is "a clash of ethical systems." If it is, compare such a viewpoint with Neil Jacoby's comments provided in the text.
Q2) Proponents of privatization want government to be a producer of services.
A)True
B)False
Q3) Discuss the reasons for the overlapping trends of regulation and deregulation.
Q4) Articulate a brief history of government's role in business.
Q5) Describe the history of the U.S. government as to industries in distress.
Q6) The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of government.
A)True
B)False
Q7) Business generally follows the ethic of A) deontology.
B) collectivism.
C) individualism.
D) socialism.
Q8) Who determines the public interest?
Q9) Why does government regulate business? Page 13
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Page 14
Chapter 12: Business Influence on Government and Public Policy
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Sample Questions
Q1) Suppose that tobacco companies are faced with the threat of legislation that would make all tobacco products illegal to sell. How would these companies keep this issue off the public agenda and out of the limelight?
Q2) Microsoft was able to effectively defend against an antitrust suit by the United States, but lost a similar case in the European Union. The European Commission charged that Microsoft exploited its monopoly position in several foreign countries. Investigate the resolution of this case.
Also, how did Microsoft take advantage of its win in the U.S.?
Q3) Universities do more lobbying when congressional appropriations committee members serve the districts in which they are located. This targeted lobbying is: A) successful B) unsuccessful.
C) mixed.
D) untested.
Q4) To be effective, grassroots lobbying must be genuine.
A)True
B)False
Q5) Describe the role of political activity to the success of business.
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Chapter 13: Consumer Stakeholders: Information Issues
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Sample Questions
Q1) The Warranty Act
A) sets standards for what must be contained in a warranty and ease with which consumers must be able to understand it.
B) says that any unconditional assurance must be promoted as a full warranty.
C) says that full warranties do not have to include repair.
D) says that shipping charges do not have to be included in a full warranty.
Q2) The effects of advertising have clearly had a net positive effect on society. A)True
B)False
Q3) The Children's Television Act was passed to
A) prevent violent shows from being broadcast during morning hours.
B) prohibit the airing of commercials about products or characters during a show about those products or characters.
C) regulate the plotlines of children's shows.
D) limit the number of hours children could watch television.
Q4) What is the basic reason for the ethical issues surrounding product information?
Q5) Young children seldom have any money of their own to spend, nor can they get to the store to buy things. Why, then, are marketers so anxious to advertise to children?
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Chapter 14: Consumer Stakeholders: Product and Service Issues
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Sample Questions
Q1) The Consumer Product Safety Commission works to reduce the risk of harm from consumer products in all of the following ways except
A) banning consumer products.
B) passing legislation outlawing products.
C) obtaining recall of products.
D) informing and educating consumers.
Q2) With respect to service, consumers are concerned with which of the following?
A) performance
B) building time
C) provider attributes
D) durability
Q3) TQM must emphasize all of the following except?
A) leadership
B) individualism
C) recognition
D) communication
Q4) Market share liability is rarely used today due to the absence of punitive damages.
A)True
B)False
Page 17
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Chapter 15: Sustainability and the Natural Environment
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Sample Questions
Q1) Explain the concept of the "tragedy of the commons."
Q2) Businesses are paying close attention to all of the following green groups except A) consumers.
B) legislators.
C) employees.
D) investors.
Q3) Deforestation occurs only in less developed countries (LDCs).
A)True
B)False
Q4) Describe the ethics of the solution that some businesses have for hazardous wastes - transporting and dumping them elsewhere, legally or illegally.
Q5) Which of the following is not a problem central to the toxic substances issue?
A) not being aware of the effects
B) the need for daily reports to the EPA
C) population increase
D) toxic substances can be associated with industrial accidents
Q6) The hole in the ozone layer was caused primarily by CFCs.
A)True
B)False
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Chapter 16: Business and Community Stakeholders
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Sample Questions
Q1) Employees might consider their roles in plant closings
A) to be to fight for their jobs.
B) an extension of numerous employee rights issues.
C) an opportunity to find better employment.
D) a chance to form an employee-owned business.
Q2) It is usually easy to assess the true motives behind businesses' giving.
A)True
B)False
Q3) The primary reason given for support of higher education programs is
A) the value of a liberal arts education.
B) civic duty.
C) to increase the pool of trained personnel.
D) to have an educated voter pool.
Q4) Outsourcing refers to
A) small (usually fewer than ten employees) layoffs.
B) transferring employees to overseas postings.
C) layoffs at small companies.
D) the relocation of business processes to a different company.
Q5) Describe how a company can provide support to "survivors" of a layoff.
Q6) Delineate the arguments for and against the practice of cause-related marketing.
Page 19
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Chapter 17: Employee Stakeholders and Workplace Issues
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Sample Questions
Q1) The new free agent workers will be
A) highly educated scientists and managers.
B) more proactive about their work environments.
C) more loyal to good employers than were their predecessors.
D) willing to move overseas to pursue good opportunities.
Q2) Requirements of a due process system include all of the following except A) institutionalization.
B) ease of use.
C) subject to review and appeal.
D) applicable to all employees.
Q3) Which of the following is not an action that managers should take when terminating employees?
A) Fire employees in a private space
B) Email the employee the termination
C) Preserve the employee's dignity
D) Use transparent criteria for layoffs
Q4) What advice would you give to management faced with a potential whistle-blowing situation? What should management do, and not do?
Q5) What are the impacts of a global economic recession on employee loyalty?
Page 20
Q6) Contrast the roles of ombudsman and human resource manager.
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Chapter 18: Employee Stakeholders: Privacy, Safety, and Health
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Sample Questions
Q1) The Employee Polygraph Protection Act (EPPA) of 1988
A) requires employee consent before administration of a polygraph test.
B) banned most private sector uses of the lie detector.
C) allows lie detector tests to be admitted as evidence in cases involving fraud.
D) banned all uses of the lie detector.
Q2) Guidelines for designing a drug testing program include all of the following except A) any report to the employer should provide only the information needed for work placement purposes or as required by government regulations.
B) companies would provide clear documentation of the reason for conducting the drug testing.
C) companies should have written policies and procedures applied impartially. D) all level of employees should be subject to drug testing.
Q3) Describe the people who might be left out of family-friendly work policies because they do not fit the stereotypical "family" mode.
Q4) Use of the polygraph has been banned in virtually all situations.
A)True
B)False
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Chapter 19: Employment Discrimination and Workplace
Diversity
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Sample Questions
Q1) Why do you suppose retaliation claims to the EEOC are at their highest?
Q2) The principle objection to Affirmative Action is that it leads to
A) compensatory justice.
B) reverse discrimination.
C) "what goes around comes around."
D) legalized discrimination.
Q3) Religious discrimination complaints
A) do not exist.
B) are declining.
C) are consistent.
D) more than doubled.
Q4) Explain the history and purpose of the Genetic Information Nondiscrimination Act. What is unique about it?
Q5) Which groups' buying power is expected to increase to $1.1 trillion by 2020?
A) African-Americans.
B) Asian-Americans.
C) Hispanics.
D) Arabs.
Q7) What impact did a 2010 U.S. Supreme Court decision have on employee testing? Page 22
Q6) Describe the main differences between disparate treatment and disparate impact.
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Page 23