Ethical Leadership
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Course Introduction
Ethical Leadership explores the principles and practices of leading with integrity in diverse organizational settings. The course examines foundational theories of ethics and leadership, and analyzes the complex role of values, moral decision-making, and social responsibility in leadership contexts. Students will engage with real-world case studies, current events, and ethical dilemmas to develop critical thinking skills and strategies for fostering ethical cultures within teams and institutions. Emphasis is placed on self-reflection, transparent communication, and the ways leaders influence positive change, trust, and accountability in their organizations and communities.
Recommended Textbook
Business and Society Stakeholders Ethics Public Policy 13th Edition by Anne T. Lawrence
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Chapter 1: The Corporation and Its Stakeholders
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Q1) Corporations who run their operations according to the stakeholder theory of the firm create value by:
A) Innovating new products.
B) Increasing their stock price.
C) Developing their employees' professional skills.
D) All of the above.
Answer: D
Q2) When a community group sues a company for health effects caused by unsafe toxic chemicals disposal, it is an exercise of a stakeholders':
A) Legal power.
B) Voting power.
C) Economic power.
D) Political power.
Answer: A
Q3) A stakeholder map is a useful tool because:
A) It enables mangers to see quickly how stakeholders feel about an issue.
B) It allows managers to evaluate what outcomes are likely regarding an issue.
C) It helps managers discourage or dissolve stakeholder coalitions.
D) Both A and B, but not
Answer: D
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Chapter 2: Managing Public Issues and Stakeholder Relationships
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Q1) The issues management process is a:
A) Beneficial tool used only to maximize the positive effects of a public issue for the organization's advantage.
B) Beneficial tool used only to minimize the negative effects of a public issue for the organization's advantage.
C) Systematic process companies use when responding to public issues that are of greatest importance to the business.
D) Confusing process that is rarely used to help top management within an organization.
Answer: C
Q2) Once an organization has implemented the issue management program, it must:
A) Use trade associations or consultants to follow high priority issues.
B) Study the results and make necessary adjustments.
C) Not limit the number of public issues the firm can address.
D) Pick a selected number of issues to address immediately.
Answer: B
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Chapter 3: Corporate Social Responsibility
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Q1) The concept of corporate social responsibility is rooted in the meaning "to pledge back," creating a commitment to give back to society and the organization's stakeholders.
A)True
B)False
Answer: True
Q2) Socially responsible actions frequently occur as a result of:
A) A genuine desire to promote worthy social goals.
B) A wish to project a caring corporate image.
C) An obligation to follow the law.
D) All of the above.
Answer: D
Q3) Philanthropic funding and public relations are two examples of corporate social responsibility:
A) Drivers of the Corporate Social Responsiveness phase.
B) Policy instruments of the Corporate Social Stewardship phase.
C) Policy instruments of the Corporate Social Responsiveness phase.
D) Drivers of the Charity Principle phase.
Answer: B
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Page 5
Chapter 4: Ethics and Ethical Reasoning
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Q1) According to the utilitarian reasoning, if the benefits outweigh the costs, then the action is ethical because it produces:
A) The greatest good for the greatest number of people.
B) An equal amount of good for an equal number of people.
C) The greatest good for a select number of people.
D) An equal amount of good for the greatest number of people.
Q2) Business managers need a set of ethical guidelines to help them:
A) Understand the changing customs throughout the world.
B) Justify the resolution which best helps themselves.
C) Identify and analyze the nature of ethical problem.
D) None of the above.
Q3) Business executives are finding that a trusting, ethical relationship with a business partner is:
A) Best left to not-for-profit companies.
B) Too costly to maintain.
C) Likely to cause legal problems.
D) Often essential in conducting business.
Q4) Explain the purpose of the Sarbanes-Oxley Act. What issues does the act address?
Discuss recent changes in regulatory interpretation of the Act.
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Chapter 5: Organizational Ethics and the Law
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Q1) The International Accounting Standards are essential for:
A) Imposing greater oversight by governments.
B) Integrating the European Union capital markets.
C) Promoting the integrity of global capital markets.
D) All of the above.
Q2) Building ethical safeguards into a company's everyday routines is called:
A) Change management.
B) Justifying ethics.
C) Institutionalizing ethics.
D) Ethical awareness.
Q3) A member of the Chartered Financial Analyst Institute (CFA) must:
A) Promote the integrity of and uphold the rules governing global capital markets.
B) Exercise sensitive and moral judgments in all activities.
C) Maintain objectivity.
D) All of the above.
Q4) The International Accounting Standards (IAS) were created by the Sarbanes-Oxley Act.
A)True
B)False
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Chapter 6: The Challenges of Globalization
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Q1) Most nations in the world share similar political, social and economic beliefs.
A)True
B)False
Q2) An individual who is a supporter of globalization would argue that it helps the developing world by:
A) Giving entrepreneurs access to foreign investment funds to support economic development.
B) Allowing new ideas and technological innovations to spread quickly.
C) Providing people in developing countries with more jobs.
D) All of the above.
Q3) Compare and contrast the world's political and economic systems and their effects on globalization.
Q4) Representation on the World Bank's board of directors is based on:
A) The size of the member nation's population.
B) The size of the member nation's economy.
C) The size of the member nation's land mass.
D) Equal representation of all member nations.
Q5) Discuss the benefits and costs of globalization. Provide examples of how globalization has helped or harmed individual nations and the world economy.
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Chapter 7: Global Corporate Citizenship
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Q1) According to a comparative study of corporate citizenship in Latin America and the Caribbean, which of the following is not one of the four levels of corporate social responsibility activity?
A) Delayed.
B) Running.
C) Catching up.
D) Stalled.
Q2) Define balanced score card. What are the four quadrants of the balanced score card approach?
Q3) Define the five stages of corporate citizenship. Provide an example of a company in each stage.
Q4) Social performance audits look at what an organization does, not at the results of the actions.
A)True
B)False
Q5) Once a company enters the innovative stage of corporate citizenship, it will:
A) Begin reporting its efforts to stakeholders.
B) Step up its philanthropic giving.
C) Increase the number of stakeholders to the firm.
D) Build more coherent initiatives with stakeholders.
Page 9
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Chapter 8: Business-Government Relations
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Q1) In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority.
A)True
B)False
Q2) Total social regulation costs are:
A) Slightly higher than total economic regulation costs.
B) Slightly less than total economic regulation costs.
C) Significantly higher than total economic regulation costs.
D) Equal to total economic regulation costs.
Q3) Around the world, government:
A) Tends to cooperate with business.
B) Tends to be in conflict with business.
C) Sometimes cooperates and sometimes is in conflict with business.
D) Tends to be controlled by business.
Q4) The Mullahs in Iran is an example of the power of government derived from:
A) A monarchy.
B) A military dictatorship.
C) A religious authority.
D) A democracy.
Q5) Compare and contrast economic policies with social assistance policies.
Page 10
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Chapter 9: Influencing the Political Environment
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Q1) The emergence of public issues often encourages companies to monitor public concerns, respond to government proposals, and participate in the political process.
A)True
B)False
Q2) Campaign finance reform was sought in the United States to:
A) Reduce the corrupting influence of money in the political process.
B) Include more participants in financing political campaigns.
C) Balance business and labor unions political campaign contributions.
D) Enable non-U.S. citizens access to the U.S. campaign financing arena.
Q3) One of the most effective organizations promoting direct communications between business and policymakers is:
A) The Knights of the Roundtable.
B) The Business Roundtable.
C) The Government Partnership Roundtable.
D) The Strategic Roundtable.
Q4) Describe two tactics used to promote each of the three types of corporate political strategies.
Q5) Prepare a strong argument in favor of and in opposition to businesses being involved in the political process.
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Chapter 10: Ecology and Sustainable Development in Global Business
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Q1) Depletion of the ozone layer, destruction of the rain forests, and species extinctions all have an impact on:
A) All of society.
B) A particular region.
C) A particular nation.
D) Only developing countries.
Q2) The most successful global businesses in coming years will be those companies that:
A) Develop short-term partnerships between companies in developing countries to transfer environmental technologies.
B) Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action.
C) Avoid fully accounting environmental costs in calculating measures of production such as the gross domestic product (GDP).
D) Produce products with a limited useful life.
Q3) Three critical factors have combined to accelerate the ecological crisis facing the world community and to make sustainable development more difficult. Explain and discuss these three factors.
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Chapter 11: Managing Environmental Issues
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Q1) The Safe Drinking Water Act of 1974 requires permits for most point sources of pollution, such as industrial emissions.
A)True
B)False
Q2) Which of the following is not true about the guidelines for sentencing environmental wrongdoers set by the U.S. Sentencing Commission?
A) The penalties reflect the severity of the offense and the company's demonstrated environmental commitment.
B) Businesses having an active compliance program would receive lighter sentences in the event of a violation.
C) Businesses having no active compliance program would be granted an extension to develop a program.
D) Businesses that promptly assisted any victims would receive lighter sentences in the event of a violation.
Q3) Briefly describe acid rain. Do you think a command-and-control or market-based regulatory approach would work better to reduce acid rain emissions, and why?
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Chapter 12: Technology, Organizations, and Society
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Q1) Define technology and describe its three primary features.
Q2) Technology is an unmistakable ethical force, but not an economic or social force, in the world where we live.
A)True
B)False
Q3) Discuss the issue of digital divide. Is it lessening or widening with more technological innovation? How have businesses, government bodies, and nonprofit organizations met the digital divide challenge?
Q4) The current phase of technology is the service society.
A)True
B)False
Q5) The information phase of technology primarily requires:
A) Providing services.
B) Intellectual and electronic skills.
C) Manual and machine skills.
D) The same skills as needed in previous phases.
Q6) Although technology is not the only cause of change in society, it is a primary cause.
A)True
B)False
Page 14
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Chapter 13: Managing Technology and Innovation
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Q1) This Act makes it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufactures and their users:
A) Software Business Piracy Act.
B) Digital Millennium Copyright Act.
C) Intellectual Property Millennium Act.
D) Copyright Act of 1998.
Q2) It is critical for businesses to maintain information in a secure location and guard this valuable resource. How secure is information in a free-access information society. Are digital certificates or other detection systems sufficient to protect information from hackers?
Q3) The identification of human genes is critical to:
A) Early diagnosis of life-threatening diseases.
B) New ways to prevent illnesses.
C) Development of drug therapies.
D) All of the above.
Q4) Children are the least vulnerable to invasions of privacy.
A)True
B)False
Q5) How is the corporate Chief Information Officer a "coach" for the organization?
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Chapter 14: Stockholder Rights and Corporate Governance
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Q1) Institutional investors are sometimes referred to as:
A) Main Street investors.
B) Wall Street investors.
C) Inside investors.
D) Outside investors.
Q2) Do you think U.S. executives are compensated too highly? Why or why not?
Q3) The paramount duty of the board of directors of a public corporation is to:
A) Ensure the company is profitable.
B) Select and oversee competent and ethical management to run the company.
C) Audit the firm's financial statements for transparency.
D) Make certain that employees are dealt with in a fair and equitable manner.
Q4) Which of the following is not an argument for high executive compensation?
A) High salaries provide an incentive for innovation and risk-taking.
B) High salaries are necessary to attract and retain top talent.
C) Inflated executive pay helps U.S. firms compete with foreign rivals.
D) Well-paid managers are being compensated for outstanding performance.
Q5) Eighty-four percent of large company boards now have an independent lead director, a sharp decrease in the past decade.
A)True
B)False
Page 16
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Chapter 15: Consumer Protection
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Q1) Outline some of the major government agencies responsible for consumer related issues. What is the major mission of each?
Q2) Because of the movement towards quality management, companies are now focusing on the customer. How does this occur? How could a specific industry be even more socially responsible to its customers? Explain.
Q3) Managing for product quality is an attempt by business to address its suppliers' needs.
A)True
B)False
Q4) Consumer groups have generally opposed the idea of product liability reform using which of the following arguments?
A) Punitive damages should be limited.
B) Strict liability should be retained.
C) The burden of proof should be shifted to consumers.
D) Losers should be made to pay some of the other side's legal bills.
Q5) Deceptive advertising is still legal in most countries.
A)True
B)False
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Chapter 16: Employees and the Corporation
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Q1) Polygraph testing:
A) Is encouraged by the Employee Polygraph Protection Act of 1988.
B) Is used by 85 percent of U.S. companies as a pre-employment screening procedure.
C) Has been replaced by written psychological tests.
D) Is used by 85 percent of U.S. companies to discover employee theft.
Q2) The U.S. Constitution protects the right to free speech-which means only the government can take away this right.
A)True
B)False
Q3) According to a recent study, nearly all companies test employees or job applicants for drugs.
A)True
B)False
Q4) Provide an example where employee whistle-blowing is justified and an example where it is not. Provide support for each example.
Q5) Discuss working conditions around the world. What challenges face multinational corporations? What approaches are companies using to establish fair labor standards? Which approaches might work better than others?
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Chapter 17: Managing a Diverse Workforce
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Q1) "Glass walls" refers to:
A) Fewer opportunities for upward advancement.
B) Fewer opportunities to move sideways into jobs that lead to the top.
C) Reliance on word of mouth by recruiters for top positions - "the old boys' network" from which women are excluded.
D) A company's lack of commitment to diversity.
Q2) Under the Family Medical Leave Act, companies that employ 50 or more people must grant unpaid, job-protected leaves for up to 12 weeks to employees with serious family needs, including the birth or adoption of a baby.
A)True
B)False
Q3) When a mother or father is granted time off when children are born or adopted and during the early months of a child's development, this is called:
A) The parent track.
B) Baby care.
C) Parental leave.
D) Family leave.
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Chapter 18: The Community and the Corporation
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Q1) The share of all giving made up by in-kind contributions of products and services has been:
A) Rising steadily over the past decade.
B) Declining steadily over the past decade.
C) Remaining relatively constant over the past decade.
D) Declining sharply over the past decade.
Q2) When companies like Whole Foods Markets work to address community problems, their actions help create:
A) Legal obligations.
B) Social capital.
C) Corporate foundations.
D) Social contracts.
Q3) An important aspect of the business-community relationship is corporate philanthropy.
A)True
B)False
Q4) Describe how companies can target their corporate contributions strategically to meet the needs of the recipient while satisfying business goals and objectives. Cite an example.
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Chapter 19: Managing Public Relations
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Q1) The major activity carried out by public relations managers is writing blogs.
A)True
B)False
Q2) A significant business disruption that stimulates extensive news media and social networking coverage is called a(n):
A) Explosion.
B) Crisis management.
C) Corporate crisis.
D) Human error.
Q3) Evaluate public opion influencing strategies used by business organization, such as public service announcements, image advertisements, and issue advertisements.
Q4) GPS is an acronym for:
A) Global positioning system.
B) Global public strategy.
C) Group performance session.
D) Group philanthropy segment.
Q5) What new challenges emerge when public relations strategies take on a global perspective?
Q6) How is the public protected through government regulations?
Page 21
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