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File: ch05.

rtf, Chapter 5, Ethics as Organizational Culture

Matching

Reference: Matching Key Terms and Definitions a) Strong organizational culture b) Weak organizational culture c) Socialization (or enculturation)

1. Standards and guidelines that are known and widely shared by all. Ans: a Response: See page 151. Difficulty: Easy

2. Subcultures within divisions or departments that are more likely to guide behavior. Ans: b Response: See page 152. Difficulty: Easy

3. Process promoted through formal and informal transmission of norms. Ans: c Response: See page 152 Difficulty: Easy

Reference: Matching Key Terms and Definitions a) Heroes b) Norms c) Rituals d) Myths

Ans: True Response: See page 156. Difficulty: Easy 5. The US Sentencing Guidelines call for more attention to developing and maintaining the ethical culture of the organization. Ans: a Response: See page 181. Symbolically tells employees what the organization wants them to do and how it expects them to do it. Standards of behavior that are accepted as appropriate by members of a group.4. Ans: b Response: See page 182. Difficulty: Easy 7. Anecdotes about a sequence of events drawn from an organization’s history. Symbolic figures who set standards of performance by modeling certain behaviors. Difficulty: Easy . Ans: c Response: See page 182. Difficulty: Easy True/False 8. Difficulty: Easy 6. Ans: d Response: See page 183.

Ans: False Response: See page 192. but is perceived to be more self-centered and more focused on the bottom line. Difficulty: Easy 13. Difficulty: Easy 10.” Ans: False Response: See page 192. Because common ethical problems exist across virtually all organizations. Difficulty: Easy 12. Organization cultures vary widely.9. Ans: True Response: See page 163. Difficulty: Medium . Ans: False Response: See page 153. formal programs designed for ethics work well as “one size fits all. Companies that look for advice from consultants will do well to find a “spray and pray” plan. Difficulty: Easy 11. Organization cultures are maintained through formal systems alone. Ans: True Response: See page 151. An ethically neutral leader is not clearly unethical. even within the same industry.

Research has found that employees working in organizations with an enforced code of ethics report that they engage in less unethical behavior. A 2006 study found that 82 percent of Americans would prefer to be paid less but work for an ethical company than be paid more and work for an unethical company. Ans: False Response: See page 186. Difficulty: Medium 17. Ans.: True Response: See page 155 Difficulty: Medium 19. Difficulty: Medium 16. An ethical culture is maintained through alignment between the formal and informal systems. The more a firm demands unquestioning obedience to authority.14. Difficulty: Easy 15. Ans: True Response: See page 170 . Unethical leaders can just as negatively affect the culture of a company as ethical leaders can affect the ethical culture.: True Response: See page 153 Difficulty: Easy 18. the more likely the firm will experience higher levels of unethical conduct among their employees. . Ans. Ans: True Response: See page 176. Describing the decision-making process in the language of ethics does not help individuals make more ethical decisions.

Ans. Ans: False Response: See page 176 Difficulty: Moderate .Ans: True Response: See page 161 Difficulty: Medium 20. Ans.: True Response: See page 174 Difficulty: Moderate 23. False Response: See page 166. It is sufficient for executive leaders to be ethical persons and make ethical decisions. Alignment of the goals and rewards of an organization with the organization’s values is essential because employees will generally do what is measured and rewarded. This means that stated organizational policy can be an important source of guidance foe employees in making decisions. Ans. Employees do as they see. Cognitive moral development tells us that most people are looking outside of themselves for guidance on decision-making. Students are likely to say True.: True Response: See page 171 Difficulty: Difficult 22. Loyalty is paramount in business and employees who question unethical direction or an unethical boss are doomed. Difficulty: Difficult 21. The point of this question is that executives must lead on the question of ethics IF their commitment to an ethical culture is to register with employees.

c) Shows that ethics and values are an important part of the leader’s message. b) More and more consultants were discussing “ethical culture” in their programs. Given the less hierarchical organizational structures that are more common place today. it is less important for to have strongly aligned ethical culture to guide employees in their independent decision-making. c) Prior to the change. Ans: False Response: See page 177 Difficulty: Difficult Multiple Choice 25. c) desirable if an organization wants behavioral consistency. d) None of the above Ans: c Response: See page 156. b) Tells employees how the leader is likely to behave. Difficulty: Medium 27.24. b) desirable if an organization wants diversity of thought and action. Weak organizational cultures are: a) desirable if an organization has many subcultures. Ans: b Response: See page 152. . Difficulty: Medium 26. d) undesirable in all situations. The “moral person” component of ethical leadership: a) Tells employees how the leader expects them to behave. Why did the US Sentencing Commission begin to focus on the ethical culture of the organization in 2004? a) Researchers had just recently introduced the idea of an “ethical culture” in 2002. organizations used formal programs as “window dressing”.

Difficulty: Medium 28. d) New rules and values must be reinforced via training programs and reward systems. According to the Executive Ethical Leadership Reputation Matrix. ___________ is an executive characterized as a weak “moral person” and a strong “moral manager. See page 194.d) Demonstrates a reputation for ethical leadership among employees. . Difficulty: Easy 29. Difficulty: Easy 30.” a) Unethical leader b) Ethical leader c) Ethically neutral leader d) Hypocritical leader Ans: b Response: See pages 159-160. Ans: c Response: Culture changes are not short-term and may take as much as 6 to 15 years. Ans: b Response: See page 159. b) A cultural system includes both formal and informal systems. According to the Executive Ethical Leadership Reputation Matrix. ___________ is an executive characterized as a strong “moral person” and a strong “moral manager. Which of the following is false? a) Any attempt to change an organization’s ethics must consider the entire cultural system. c) An effective culture change may take as long as 1 to 2 years.” a) Unethical leader b) Ethical leader c) Ethically neutral leader d) Hypocritical leader Ans: d Response: See pages 162-163.

then the ethical culture of an organization is out of alignment. The major steps include a detailed diagnosis of the current culture. The implementation of the plan is probably the most difficult step because it involves the “art” of changing the informal systems as well as the informal systems. Response: An ethical culture consists of both an informal and formal system of communication. Difficulty: Difficult 32. Provide an example of how an ethical culture might be misaligned. implementation. implementation of the new plan. a reward system that focuses strictly on the bottom line and makes no allowances for how a goal is met is misaligned with the organization’s ethical culture.Difficulty: Medium Short Answer 31. if the reward system focuses strictly on the bottom line and makes no allowances for how goals are met. Briefly describe and provide examples of three steps involved in changing an organization’s culture. Therefore. Response: Changing an organization’s culture is a multi-dimensional process that must be taken seriously. the ethical culture is misaligned. Ans: Students should include steps related to diagnosis. a CEO may state in speeches to the employees that “our company cares about the environment. and subsequent evaluation. If messages from the informal and formal system differ. For example. Ans: Students should be able to demonstrate that ethical culture consists of informal and formal systems that must be sending the same message.” However. and evaluation after the plan is in motion. Difficulty: Difficult . Briefly describe what is meant by alignment of ethical culture.