Ethical Leadership
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following is a key characteristic of ethical
leadership?
- A) Authoritarian decision-making
- B) Transparency and integrity
- C) Focus on personal gain
- D) Ignoring stakeholder concerns
- ANS: B) Transparency and integrity
©/2025
, - Rationale: Ethical leadership involves transparency,
integrity, and a commitment to doing what is right for all
stakeholders.
2. What is the primary purpose of a code of ethics in an
organization?
- A) To increase revenue
- B) To provide guidelines for ethical behavior
- C) To limit employee autonomy
- D) To simplify decision-making
- ANS: B) To provide guidelines for ethical behavior
- Rationale: A code of ethics provides a framework for
ethical behavior and decision-making within an organization.
Fill-in-the-Blank Questions
3. The __________ principle in ethical leadership emphasizes
treating all stakeholders fairly and equitably.
- ANS: justice
- Rationale: The principle of justice in ethical leadership
emphasizes fairness and equity in treating all stakeholders.
©/2025
,4. __________ is the process by which leaders influence their
followers to achieve a common goal through ethical means.
- ANS: Ethical leadership
- Rationale: Ethical leadership involves influencing followers
to achieve common goals through ethical behavior and decision-
making.
True/False Questions
5. True or False: Ethical leaders should prioritize short-term
gains over long-term sustainability.
- ANS: False
- Rationale: Ethical leaders prioritize long-term sustainability
over short-term gains to ensure the well-being of the organization
and its stakeholders.
6. True or False: Ethical leadership requires a commitment to
continuous learning and self-improvement.
- ANS: True
- Rationale: Ethical leadership involves a commitment to
continuous learning and self-improvement to maintain high
ethical standards.
Multiple Response Questions
©/2025
, 7. Which of the following are components of ethical decision-
making? (Select all that apply)
- A) Evaluating the impact on stakeholders
- B) Ignoring potential risks
- C) Considering legal and ethical standards
- D) Personal biases
- ANS: A) Evaluating the impact on stakeholders, C)
Considering legal and ethical standards
- Rationale: Ethical decision-making involves evaluating the
impact on stakeholders and considering legal and ethical
standards. Ignoring potential risks and personal biases are not
components of ethical decision-making.
8. Which of the following strategies can help promote ethical
behavior in an organization? (Select all that apply)
- A) Providing ethics training
- B) Implementing a whistleblower policy
- C) Ignoring unethical behavior
- D) Leading by example
- ANS: A) Providing ethics training, B) Implementing a
whistleblower policy, D) Leading by example
©/2025