Ethics and Leadership
Chapter Exam Questions
Course Introduction
This course explores the fundamental principles of ethical theory and their application to leadership in various organizational and societal contexts. Students will examine the relationship between ethics and effective leadership, analyzing case studies and real-world scenarios to understand the ethical challenges that leaders face. Topics include moral philosophies, ethical decision-making frameworks, the role of values and culture in leadership, and the responsibilities of leaders to stakeholders. Through critical reflection and discussion, students will develop the skills necessary to recognize ethical dilemmas and to act with integrity, accountability, and transparency in leadership roles.
Recommended Textbook
Business Ethics Ethical Decision Making Cases 12th Edition by O. C. Ferrell
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12 Chapters
619 Verified Questions
619 Flashcards
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Chapter 1: The Importance of Business Ethics
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51 Verified Questions
51 Flashcards
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Sample Questions
Q1) Morals are enduring beliefs and ideals that are socially enforced.
A)True
B)False
Answer: False
Q2) The _____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation.
A)U.S. Sentencing Commission
B)Defense Industry Initiative on Business Ethics and Conduct
C)World Trade Organization
D)United Nations Global Compact
E)Federal Sentencing Guidelines for Organizations
Answer: E
Q3) The Consumers' Bill of Rights developed by John F. Kennedy maintains that consumers have the right to safety, the right to be heard, the right to free speech, and the right to choose.
A)True
B)False
Answer: False
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Chapter 2: Stakeholder Relationships, Social Responsibility, and Corporate Governance
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50 Verified Questions
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Sample Questions
Q1) Why is ethical misconduct more difficult to overcome than poor financial performance?
Answer: Lost finances can be regained but loss of reputation and shareholder confidence could be deadly.
Q2) Which of the following is a major ethical concern among corporate boards of directors?
A)Compensation
B)The non-traditional directorship approach
C)Dividend reporting
D)Secondary stakeholders
E)Debt swaps
Answer: A
Q3) When unethical acts are discovered in a firm, in most instances
A)they are caused by unwilling participants.
B)the cause is due to external stakeholders.
C)the perpetrators are caught and prosecuted.
D)there was knowing cooperation or complicity from within the company.
E)the cause is a corrupt board of directors.
Answer: D
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Chapter 3: Emerging Business Ethics Issues
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Sample Questions
Q1) The first step toward understanding business ethics is to
A)know your company's ethical policies.
B)know your own morals and philosophies.
C)know society's ethical policies.
D)develop ethical issue awareness.
E)develop a set of decision-making rules.
Answer: D
Q2) 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
Q3) Developing ethical issue awareness is the first step toward understanding business ethics.
A)True
B)False
Answer: True
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Chapter 4: The Institutionalization of Business Ethics
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Sample Questions
Q1) Which of the following is not an aspect of the institutionalization of social responsibility?
A)Voluntary practices
B)Legal responsibilities
C)Core practices
D)Familial responsibilities
E)Strategic philanthropy
Q2) Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as
A)any practice is permitted.
B)any practice is permitted that does not substantially reduce competition and harm consumers or society.
C)any practice is permitted that does not substantially harm consumers or society, but this applies only within the United States.
D)any practice is permitted that does not harm the environment.
E)any practice is permitted that does not break the law.
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
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Sample Questions
Q1) Normative business ethics takes into account the _____ realities outside the legal realm in the form of industry standards.
A)Descriptive
B)Political
C)Social
D)Economic
E)Normative
Q2) Which of the following would not be considered a negative reinforcement of employee behavior?
A)Demotions
B)Firings
C)Ignoring the behavior
D)Reprimands
E)Pay penalties
Q3) A firm's core values provide a blueprint into the firm's purpose as well as how it views ethical decision making and prioritizes stakeholders.
A)True
B)False
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Chapter 6: Individual Factors: Moral Philosophies and Values
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Sample Questions
Q1) An individual who defines what is right by considering his/her duty to society, not just to other specific people, is in which of Kohlberg's stages of cognitive moral development?
A)Punishment and obedience
B)Individual instrumental purpose and exchange
C)Mutual interpersonal expectations, relationships, and conformity
D)Social system and conscience maintenance
E)Prior rights, social contract, or utility
Q2) This philosophy stipulates acts are morally right or acceptable if they produce some desired result, such as realization of self-interest or utility.
A)Teleology
B)Deontology
C)The relativist perspective
D)Ethical formalism
E)Hedonism
Q3) Interactional justice considers the processes and activities that produce a particular outcome.
A)True
B)False
Page 8
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Chapter 7: Organizational Factors: the Role of Ethical
Culture and Relationships
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Sample Questions
Q1) A cultural audit may be used to assess A)how cultured a firm's employees are.
B)unethical employees.
C)unethical organizations.
D)an organization's values.
E)organizational structure.
Q2) Both individual ethics and organizational ethics have an impact on an employee's A)productivity.
B)personal happiness.
C)compensation.
D)fitness level.
E)ethical intention.
Q3) The exacting organizational culture is interested in A)performance but has little concern for employees.
B)investors' impressions of profitability.
C)maintaining a strong corporate culture.
D)employees and performance.
E)employees' impressions.
Q4) Describe the different kinds of power. Are some types of power more likely to result in ethical behavior than others?
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Chapter 8: Developing an Effective Ethics Program
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Sample Questions
Q1) The FSGO encourages federal judges to reduce or eliminate fines for firms with extensive compliance programs that make due diligence attempts to abide by ethical and legal standards.
A)True
B)False
Q2) Which of the following is the most comprehensive?
A)Code of values
B)Code of conduct
C)Code of ethics
D)Statement of values
E)Statement of principles
Q3) Discuss the advantages and disadvantages of implementing an ethics program with a compliance orientation versus one with a values orientation. Is one better than the other at maintaining an ethical organization?
Q4) Centralization may reduce the opportunities lower-level managers and employees have to make unethical decisions.
A)True
B)False
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Chapter 9: Managing and Controlling Ethics Programs
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Sample Questions
Q1) Retaliation against employees that report misconduct is a problem in _____ cultures.
A)weak ethical
B)strong ethical
C)high power distance
D)diverse
E)international
Q2) Which of the following statements about ethics audits is false?
A)They provide an opportunity to measure conformity to the firm's desired ethical standards.
B)The terms ethics audits and social audits can be used interchangeably.
C)They provide an objective method for demonstrating a company's commitment to improving strategic planning, including its compliance with legal and ethical standards and social responsibility.
D)They can be a component of social audits.
E)They are systematic evaluations of an organization's ethics program and performance to determine whether it is effective.
Q3) Describe the process of conducting an ethics audit in detail.
Q4) Explain the benefits and risks of ethics auditing.
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Chapter 11: Ethical Leadership
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Sample Questions
Q1) What is not a necessity for strong ethical leaders to make good decisions?
A)Pertinent information
B)Courage
C)Experience making the right decisions
D)Knowledge
E)The ability to coerce subordinates
Q2) The _____ leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take initiative.
A)authoritative
B)affiliative
C)democratic
D)coaching
E)pacesetting
Q3) Strong ethical leaders have a passion for all of the following except to
A)do the right thing.
B)be proactive
C)consider stakeholder interests
D)be role models for the organization and its employees.
E)satisfy shareholders before other stakeholder groups.
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Chapter 12: Sustainability: Ethical and Social Responsibility
Dimensions
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Sample Questions
Q1) _____ can cause markedly shorter life spans, along with chronic respiratory problems in humans and animals.
A)Water pollution
B)Air pollution
C)Global warming
D)Deforestation
E)Acid rain
Q2) Geothermal energy provides _______________and is a more dependable energy source than some other forms of alternative energy.
A)heat from the sun
B)a radiated heat
C)heat from steam
D)a constant source of heat
E)a dry heat
Q3) Because ethanol is created from corn in the United States, there are concerns that the increased use of ethanol will decrease food supplies.
A)True
B)False
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