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Referent power refers to manager identification with his or her employees.

A) True
B) False

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Codes of conduct help employees from diverse backgrounds to work more effectively across cultural backgrounds.

A) True
B) False

Correct Answer

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An ethically sound organization, drawing on the concepts of stakeholder management, can also strengthen its bonds among its ____________, ____________, and ___________.


A) policies; procedures; values
B) values; organizational design; employees
C) suppliers; customers; governmental agencies
D) current employees; potential employees; future employees

E) A) and B)
F) A) and C)

Correct Answer

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Establishing a culture of dissent can be an effective means of questioning the status quo.

A) True
B) False

Correct Answer

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Codes of conduct have no role in attracting individuals who might want to work for a business that embraces high standards.

A) True
B) False

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If leaders do not believe in the ethical standards that they are trying to inspire, they will not be effective as good role models.

A) True
B) False

Correct Answer

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The two broad bases of leader power are organizational and hierarchical.

A) True
B) False

Correct Answer

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Creating an ethical framework and developing organizational capabilities to make it operational is the responsibility of


A) employees.
B) shareholders.
C) the law.
D) leadership.

E) A) and B)
F) None of the above

Correct Answer

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Methods used for ethics management in a compliance-based approach include education, reduced discretion, auditing and controls, and penalties.

A) True
B) False

Correct Answer

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Inspiring and motivating people with a mission or purpose is a ______________ for developing an organization that can learn and adapt.


A) necessary and sufficient condition
B) necessary but not sufficient condition
C) goal but not a necessary condition
D) goal and a required precondition

E) None of the above
F) All of the above

Correct Answer

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Which of the following statements about leadership is false?


A) Leadership is focused on the creation and implementation of a creative vision.
B) Leadership is the process of transforming organizations from what they are to what the leader would have them become.
C) Leaders support the status quo and seek control mechanisms to maintain it.
D) Effective implementation of strategy is essential for successful leadership.

E) A) and C)
F) A) and D)

Correct Answer

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Policies and procedures guide employee behavior, but are effective only if they are reinforced with specific corporation action such as enforcement and monitoring.

A) True
B) False

Correct Answer

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According to Strategy Spotlight 11.6, the example of Alliant Energy of Iowa developed a successful green-energy program called Second Nature that demonstrates how companies can capitalize on consumer desire to be socially responsible.

A) True
B) False

Correct Answer

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In the integrity-based approach to management, ethics is the responsibility of the


A) shareholders.
B) outside stakeholders.
C) management.
D) employees.

E) C) and D)
F) B) and D)

Correct Answer

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In an integrity-based approach to ethics management, ethos is concerned with conformity with externally imposed standards.

A) True
B) False

Correct Answer

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Proactive measures to prevent organizational ethics problems do not include


A) instituting a reward system which considers outcomes as its primary criterion.
B) using leaders as role models of ethical behavior.
C) issuing statements describing organization commitment to certain standards of behavior.
D) using organization information systems as a control system.

E) A) and D)
F) B) and C)

Correct Answer

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To successfully empower employees to achieve organizational goals, leaders must perform the tasks of resource allocation and power brokering.

A) True
B) False

Correct Answer

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Many of the scandals on Wall Street might have been eliminated if corporate codes of conduct had outlined more clearly the consequences of unethical behavior.

A) True
B) False

Correct Answer

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Empowering individuals by soliciting their input helps an organization to enjoy better employee


A) retention.
B) performance.
C) morale.
D) communication.

E) B) and C)
F) A) and D)

Correct Answer

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The example of Dennis Bakke, CEO of AES, in which he and his team took responsibility for employees who lied to the EPA about water quality at the plant, suggests that for an ethical organization, it is not necessary to do more than just take strong punitive action against those who act contrary to the company-established expected behavior.

A) True
B) False

Correct Answer

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