Ethical Leadership Study Guide Questions
Course Introduction
Ethical Leadership explores the principles and practices of leading organizations and teams with integrity, fairness, and accountability. The course examines major ethical theories and frameworks, applies them to real-world leadership challenges, and emphasizes the importance of personal values, ethical decision-making, and fostering an ethical organizational culture. Through case studies, discussions, and reflective activities, students develop the skills to recognize ethical dilemmas, evaluate their impact on stakeholders, and lead responsibly in diverse and evolving environments.
Recommended Textbook Business and Society Ethics Sustainability and Stakeholder Management 10th Edition by Carroll
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Page 2
Chapter 1: The Business and Society Relationship
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Sample Questions
Q1) The business environment in current times can best be described as turbulent.
A)True
B)False Answer: True
Q2) The social contract is the set of rights and duties imposed on citizens by their government.
A)True
B)False Answer: False
Q3) Affluence refers to the level of wealth, disposable income, and standard of living of a society.
A)True
B)False Answer: True
Q4) Some businesses are socially responsible; other businesses do just about anything they want.
A)True
B)False Answer: True
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Chapter 2: Corporate Social Responsibility, Citizenship, and Sustainability
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Sample Questions
Q1) The concept of business responsibility that is based on concern for the various groups that are affected by a business is known as the A) legal model.
B) classical economic model.
C) ethical model.
D) stakeholder model.
Answer: D
Q2) The relationship between corporate social performance and financial performance is viewed from three different perspectives. The most popular view is based on the belief that
A) socially responsible firms are more financially profitable.
B) more profitable firms have the ability to be more socially responsible.
C) social responsibility and financial performance are inter-related and affect each other.
D) there is no relationship between social responsibility and financial performance.
Answer: A
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Chapter 3: The Stakeholder Approach to Business, Society, and Ethics
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Sample Questions
Q1) Stakeholder management, with its normative content, holds out the promise of positive outcomes to the firms that use it. Discuss some of these expected outcomes and evaluate their likelihood of occurrence and their importance to the firm.
Answer: Researchers (Post, Preston, and Sachs, in Redefining the Corporation) have concluded that the key to effective implementation of stakeholder management is in recognizing and using it as a core competence. When this is done, at least four indicators are apparent. First, the firm survives, and second avoid certain costs. Third, the firm continues to accept and use stakeholder management, and finally its use spreads to other companies and consultants. All of these outcomes are logical outgrowths of successful implementation of stakeholder management. Any type of improved management technique should result in enhanced survival rates and reduced or avoided costs. Avoiding costs would seem to be especially relevant to stakeholder management because the firm will recognize potential problems before they happen and thus avoid them. The third outcome, continued use of the perspective and techniques makes complete sense--we tend to continue successful patterns of behavior. Finally, the spread to other organizations is equally sensible--the whole concept of institutional isomorphism in organizational theory is based on the idea that firms will copy what has been successful for other companies.
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Page 5
Chapter 4: Corporate Governance: Foundational Issues
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Sample Questions
Q1) One of the main ways in which shareholder activists communicate their concerns to management is through
A) the Internet.
B) blogging.
C) advertisements in mass media outlets.
D) shareholder resolutions.
Q2) Although initially, companies did not object to the compliance costs of Sarbanes-Oxley, after 10 years experience with the law, they now object strenuously
A)True
B)False
Q3) What are the two main issues associated with CEO pay?
Q4) Why are church groups particularly visible in the shareholder activist movement?
Q5) Shareholders are
A) owners of the corporation.
B) creditors of the corporation.
C) anyone who is affected by the corporation.
D) also employees of the corporation.
Q6) Forecast how society would change if business did lose its macro level of legitimacy.
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Chapter 5: Strategic Management and Corporate Public Affairs
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Sample Questions
Q1) Sustainability reports can be thought of as a planning and control system.
A)True
B)False
Q2) Public affairs management encompasses all of the following processes except A) environmental analysis.
B) issues management.
C) crisis management.
D) political lobbying.
Q3) Why would a firm elect to perform a sustainability report, when it is not required? What benefits can accrue from a sustainability report?
Q4) The concept of enterprise-level strategy is the idea that best links
A) ethics to performance.
B) strategy to performance.
C) public policy to performance.
D) ethics to strategy.
Q5) The enterprise-level strategy may addresses the firm's
A) Obligations to stockholders.
B) Role in society.
C) Implications of cohesion.
D) Competition strategy.
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Chapter 6: Risk, Issue, and Crisis Management
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Sample Questions
Q1) When managers consider issues that affect their firm, they often ignore
A) ethical considerations.
B) financial concerns.
C) personnel matters.
D) personal stakes.
Q2) The approach to issues management in which experience with each prior issue influences future issues is the
A) conventional approach.
B) strategic management approach.
C) portfolio approach.
D) changing mix approach.
Q3) In most companies, issues management is done in isolation from other departments.
A)True
B)False
Q4) Explain why having a prepared plan for dealing with crises is so important.
Q5) Describe what "stakeholder integration techniques" are.
Q6) In a crisis, the first communication should be with internal stakeholders.
A)True
B)False
Page 8
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Chapter 7: Business Ethics Essentials
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Sample Questions
Q1) 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.
Q2) The sense that concern for fairness, justice, and due process to people, groups, and communities should be woven into managerial decision-making is called
A) integration of managerial and moral competence.
B) moral obligation.
C) moral sensitivity.
D) moral evaluation.
Q3) Compare and contrast ethics and the law. How are they similar? How are they different? Which is the higher standard? Why aren't they the equivalent of one another?
Q4) Moral identification and ordering refers to the ability to discern the ambiguity of moral factors.
A)True
B)False
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Chapter 8: Managerial and Organizational Ethics
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Sample Questions
Q1) Discuss and evaluate the Rawls principle of justice provided in the textbook.
Q2) Ethical issues at the organizational level
A) represent conflicts between two or more companies.
B) display conflicts between a person's role as family member and employee.
C) are generally more difficult to solve than issues at the personal level.
D) confront people in their roles as managers or employees.
Q3) The basic idea that underlies the principle of rights is that A) they must be earned.
B) they are granted by the government.
C) they cannot be overridden by a more basic or important right.
D) they are universal to all peoples.
Q4) According to research done by David Callahan, all of the following are reasons why cheating is on the rise except A) higher levels of inequality.
B) declining wages.
C) cheating goes unpunished.
D) wealth, status, and personal gratification are glorified.
Q5) Society's moral climate has an indirect impact on organizational ethics.
A)True
B)False
Page 10
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Chapter 9: Business Ethics and Technology
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Sample Questions
Q1) Data breaches at businesses are on the rise.
A)True
B)False
Q2) The major issue related to electronic surveillance is
A) productivity.
B) invasion of privacy.
C) company loyalty.
D) legality.
Q3) With respect to the three models of management ethics, discuss how technology might affect amoral management.
Q4) Evaluate the Government's involvement in internet privacy protection.
Q5) Most applications of biotechnology will come in the fields of A) health care.
B) pharmaceuticals.
C) agriculture.
D) all of these.
Q6) The practice of giving employees company cell phones has led to employees talking and texting while driving.
A)True
B)False
Page 11
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Chapter 10: Ethical Issues in the Global Arena
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Sample Questions
Q1) What are the most important factors leading a firm to take corporate action against corruption?
Q2) Involving two or more cultures in ethical issues makes their resolution much more difficult.
A)True
B)False
Q3) What questions were raised because of the Bhopal tragedy?
A) To what extent should MNCs maintain identical standards at home and abroad regardless of how lax laws are in the host country?
B) How wise are laws that require plants to be staffed entirely by local employees?
C) Should certain kinds of plants even be located in developing nations?
D) All of these questions.
Q4) Peter Drucker has labeled the expanded global marketplace the A) moral free space.
B) hypercompetitive economy.
C) transnational economy.
D) multinational competitive sphere.
Q5) Make a case for paying premium wages to workers in less-developed countries.
Q6) Review the major causes of the Nestlé infant formula controversy.
Page 12
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Chapter 11: Business, Government, and Regulation
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Sample Questions
Q1) Negative externalities are the additional costs incurred by business due to the outside regulations placed by government.
A)True
B)False
Q2) The level of government regulation of business has always been low.
A)True
B)False
Q3) Government attempts to persuade business to act in the public interest are called
A) monetary policies.
B) moral suasion.
C) standard setting.
D) transfer payments.
Q4) Newer social regulations covers business practices in all industries.
A)True
B)False
Q5) Is privatization always effective or successful? Give examples of a success and a failure.
Q6) Articulate a brief history of government's role in business.
Q7) Discuss the reasons for the overlapping trends of regulation and deregulation.
Page 13
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Chapter 12: Business Influence on Government and Public Policy
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Sample Questions
Q1) Lobbyists have been identified as having very narrow self-interests. Apparently some of these interests go no further than lining their own pockets, with no regard for their clients' needs. Research the activities of Jack Abramoff and Michael Scanlon in connection with their representation of several Native American tribes and their gambling casinos.
Q2) Government is not a central stakeholder of business.
A)True
B)False
Q3) Political contributions from undisclosed donors are called:
A) soft money
B) hard money
C) easy money
D) dark money
Q4) The channels through which corporations can make political contributions are.
A) limited.
B) many and varied.
C) difficult to navigate.
D) primarily tax loopholes.
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Q5) What has been the impact of the Citizens United and Speechnow decisions on campaign funding?
Chapter 13: Consumer Stakeholders: Information Issues
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Sample Questions
Q1) Issues related to product information include all of the following except A) advertising.
B) warranties.
C) labeling.
D) website design.
Q2) All of the following are significant issues in cigarette advertising except
A) promotion of a dangerous product.
B) its aim at young audiences.
C) its aim at less-educated consumer markets.
D) its aim at less-developed countries.
Q3) The Federal Trade Commission (FTC)
A) achieves free and fair completion in the economy.
B) protects misleading practices.
C) issues trade regulation rules.
D) Monitors competitive practices.
Q4) Customer relationship management (CRM) is the ability of an organization to retain profitable customers.
A)True
B)False
Q5) Describe the main issues related to using psychological appeals in advertising.
Page 15
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Chapter 14: Consumer Stakeholders: Product and Service Issues
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Sample Questions
Q1) Quality and safety of products are central to consumers' concerns.
A)True
B)False
Q2) Which of the following is not an allegation commonly made in product liability suits?
A) The product was improperly manufactured.
B) The product's design was defective.
C) The manufacturer failed to provide satisfactory instructions.
D) The product was produced under inhumane conditions.
Q3) A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to
A) strict liability.
B) absolute liability.
C) relative liability.
D) market share liability.
Q4) With respect to service, consumers are concerned with which of the following?
A) performance
B) building time
C) provider attributes
D) durability
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Chapter 15: Sustainability and the Natural Environment
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Sample Questions
Q1) The "Not In My Back Yard (NIMBY)" mentality is an attitude based on avoidance or denial of responsibility.
A)True
B)False
Q2) The purpose of Superfund legislation was to
A) identify toxic waste sites.
B) eliminate dumping of toxic wastes.
C) clean up hazardous waste dumps and spills.
D) prevent land degradation.
Q3) Business that meets the need of the present without compromising the ability of future generations to meet their own needs is following principles of A) endurance.
B) long-termism.
C) sustainability.
D) ecological determinism.
Q4) Is economic growth an appropriate goal for business?
Q5) How is the Flint water crisis an example of the law versus ethics?
Q6) Is the green approach just a fad?
Q7) Describe the basic problems of producing toxic substances.
Page 17
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Chapter 16: Business and Community Stakeholders
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Sample Questions
Q1) Steps in developing a community action program include all of the following except A) knowing the community.
B) knowing the company's resources.
C) building bridges to the community.
D) monitoring projects.
Q2) What reasons to corporate executives use to justify corporate giving to the arts?
Q3) Making profits and addressing social concerns are not mutually exclusive.
A)True
B)False
Q4) Describe the Dollars for Doers service program in depth. What are some examples of current programs?
Q5) Responsibility is considered a standard of excellence in corporate community involvement.
A)True
B)False
Q6) Evaluate the Minnesota HEALS project, funded by General Mills. Was this an appropriate use of corporate funds?
Q7) Review the pros and cons of outsourcing.
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Chapter 17: Employee Stakeholders and Workplace Issues
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Sample Questions
Q1) Enterprise rights are derived from
A) employer promises.
B) labor demands.
C) negotiated contracts.
D) the labor market.
Q2) Studies of whistle-blowers indicate that many are praised by their peers and managers, and often receive promotions for their actions.
A)True
B)False
Q3) Courts have interpreted some communications from employer to employee as implied contracts, even though the employer did not intend them as contracts. Evaluate the reasonableness of the courts' interpretations.
Q4) ____ was protection for federal employees who expose illegal, corrupt, or wasteful government activities.
A) Employment-At-Will Doctrine
B) False Claims Act
C) Civil Service Reform Act
D) Michigan Whistle-Blowers Protection Act
Q5) 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) Experts on workplace violence recommend that companies respond to this hazard by
A) installing metal detection devices in their places of business.
B) Establishing a zero-tolerance policy toward workplace violence.
C) developing a strong relationship with the local law enforcement officials.
D) instituting stringent pre-hiring filters.
Q2) Workplace violence is one of the four leading causes of death in the workplace and leading cause of death for women.
A)True
B)False
Q3) Compare the potential for invasion of individuals' privacy from the USA Patriot Act and the average business.
Q4) Guidelines for performing drug tests on workers or job applicants include all of the following except:
A) Tests should be done in a uniform and impartial manner
B) Tests should be the highest quality that money can buy
C) Companies should provide clear documentation of the reason for the test
D) All employees should be informed in advance of the use, misuse, and test policies
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Q5) Describe some of the best family-friendly benefits that are provided to workers.
Chapter 19: Employment Discrimination and Workplace
Diversity
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Sample Questions
Q1) 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.
Q2) The Rehabilitation Act of 1973, Section 503, applies to
A) all rehabilitation facilities.
B) rehabilitation facilities who have contracts with the federal government.
C) all employers who have contracts with the federal government.
D) all state employees.
Q3) The general rule used to prove discrimination under the disparate impact concept is called the
A) four-fifths rule.
B) essential equality rule.
C) equal results rule.
D) evil intent rule.
Q4) "Operating against the continuing trends emphasizing civil rights is a growing sentiment against affirmative action." Explain this statement.
Q5) Describe the two types of commonly recognized sexual harassment.
Q6) Describe the main differences between disparate treatment and disparate impact. Page 21
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