BMAL 590 BUSINESS ETHICS_MASTER EXAM QUESTIONS
AND ANSWERS WITH COMPLETE SOLUTIONS GRADED
A++
Which of the following statements is false regarding strong ethical leaders?
Strong ethical leaders are reactive
Business Ethics
comprises principles and standards that guide behavior in the world of business. Investors, employees,
customers, interest groups, the legal system, and the community often determine whether a specific
action is right or wrong -- ethical or unethical
Ethical Issue Intensity
can be defined as the relevance or importance of an ethical issue in the eyes of the individual, work
group, and/or organization. Research suggests that individuals are subject to six "spheres of influence"
when confronted with ethical choices: the workplace, family, religion, legal system, community, and
profession.
Ethical Decision Making - Individual Factors
Gender
Education
,Nationality
Age
Locus of Control
This factor relates to individual differences in relation to a generalized belief about how one is affected
by internal versus external events or reinforcements. Those who believe in external control (that is,
externals) see themselves as going with the flow because that is all they can do. Conversely, those who
believe in internal control (that is, internals) believe that they control the events in their lives by their
own effort and skill. These individuals view themselves as masters of their destinies and trust in their
capacity to influence their environment.
Corporate Culture
can be defined as a set of values, beliefs, goals, norms, and ways of solving problems that members
(employees) of an organization share
Opportunity Factors
Opportunity describes the conditions in an organization that limit or permit ethical or unethical behavior.
Opportunity results from conditions that either provide rewards, whether internal or external, or fail to
erect barriers against unethical behavior. Opportunity relates to individuals' immediate job context:
where they work, with whom they work, and the nature of the work
The Role of Leadership In Developing An Ethics Program
1. Conduct a rigorous self-assessment of the firm's values and its existing ethics and compliance
program.
2. Maintain commitment from top managers.
3. Publish, post, and make codes of ethics available and understandable.
, 4. Communicate ethical standards through multiple channels (for example, paper documents and web
pages).
5. Provide timely training to reinforce knowledge.
6. Provide confidential resources to whom employees can go for advice or to report their concerns.
7. Ensure consistent implementation.
8. Respond and enforce consistently, promptly and fairly.
9. Monitor and assess using appropriate methods.
10. Revise and reform to ensure continuous improvement.
Coercive Leadership Style
the coercive leader demands instantaneous obedience and focuses on achievement, initiative, and self
control.
Authoritative Leadership Style
the authoritative leader, considered to be one of the most effective styles, inspires employees to follow a
vision, facilitates change, and creates a strong positive performance climate
Affiliative Leadership Style
the affiliative leader values people, their emotions and their needs, and relies on friendship and trust to
promote flexibility, innovation, and risk taking
Democratic Leadership Style
the democratic leader relies on participation and teamwork to reach collaborative decisions. This style
focuses on communication and creates a positive climate for achieving results.
Pacesetting Leadership Style
AND ANSWERS WITH COMPLETE SOLUTIONS GRADED
A++
Which of the following statements is false regarding strong ethical leaders?
Strong ethical leaders are reactive
Business Ethics
comprises principles and standards that guide behavior in the world of business. Investors, employees,
customers, interest groups, the legal system, and the community often determine whether a specific
action is right or wrong -- ethical or unethical
Ethical Issue Intensity
can be defined as the relevance or importance of an ethical issue in the eyes of the individual, work
group, and/or organization. Research suggests that individuals are subject to six "spheres of influence"
when confronted with ethical choices: the workplace, family, religion, legal system, community, and
profession.
Ethical Decision Making - Individual Factors
Gender
Education
,Nationality
Age
Locus of Control
This factor relates to individual differences in relation to a generalized belief about how one is affected
by internal versus external events or reinforcements. Those who believe in external control (that is,
externals) see themselves as going with the flow because that is all they can do. Conversely, those who
believe in internal control (that is, internals) believe that they control the events in their lives by their
own effort and skill. These individuals view themselves as masters of their destinies and trust in their
capacity to influence their environment.
Corporate Culture
can be defined as a set of values, beliefs, goals, norms, and ways of solving problems that members
(employees) of an organization share
Opportunity Factors
Opportunity describes the conditions in an organization that limit or permit ethical or unethical behavior.
Opportunity results from conditions that either provide rewards, whether internal or external, or fail to
erect barriers against unethical behavior. Opportunity relates to individuals' immediate job context:
where they work, with whom they work, and the nature of the work
The Role of Leadership In Developing An Ethics Program
1. Conduct a rigorous self-assessment of the firm's values and its existing ethics and compliance
program.
2. Maintain commitment from top managers.
3. Publish, post, and make codes of ethics available and understandable.
, 4. Communicate ethical standards through multiple channels (for example, paper documents and web
pages).
5. Provide timely training to reinforce knowledge.
6. Provide confidential resources to whom employees can go for advice or to report their concerns.
7. Ensure consistent implementation.
8. Respond and enforce consistently, promptly and fairly.
9. Monitor and assess using appropriate methods.
10. Revise and reform to ensure continuous improvement.
Coercive Leadership Style
the coercive leader demands instantaneous obedience and focuses on achievement, initiative, and self
control.
Authoritative Leadership Style
the authoritative leader, considered to be one of the most effective styles, inspires employees to follow a
vision, facilitates change, and creates a strong positive performance climate
Affiliative Leadership Style
the affiliative leader values people, their emotions and their needs, and relies on friendship and trust to
promote flexibility, innovation, and risk taking
Democratic Leadership Style
the democratic leader relies on participation and teamwork to reach collaborative decisions. This style
focuses on communication and creates a positive climate for achieving results.
Pacesetting Leadership Style
