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Exam 11: Strategic Leadership: Creating a Learning Organization and an Ethical Organization

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Question 41

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In the integrity-based approach to ethics management,behavioral assumptions include that social beings are guided by material self-interest,values,ideals,and peers.

A) True
B) False

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Question 42

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In integrity-based ethics programs,organizational ethics is seen as the responsibility of the employees.

A) True
B) False

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Question 43

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The expression the dark side of competition means that

Behavioral barriers to change occur because of conflicts between departments,conflicts arising from power relationships,and refusal to share information.

Ethics has everything to do with leadership.The character flaw of a lone actor always completely explains corporate misconduct.

In the compliance-based approach to ethics management,the objective is to

Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive,execute,and knowingly benefit from corporate misdeeds.

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.

CEOs who are _____________ tend to have a wide circle of acquaintances as well as a knack for finding common ground and building rapport.

Three key interdependent strategic leadership activities are: designing the organization,determining its direction,and nurturing a culture dedicated to excellence and ethical behavior.

According to Michael Williams,director of Entrepreneurship Activities and the Business and Entrepreneurship Clinic at the University of Wisconsin-Madison School of Business,effective leaders must design an organization to achieve the direction they have laid out for the business.Which of the following is not a key element in that design?

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

Ethical crises are bad for organization reputation,but they rarely have any financial consequences.

An effective way to instill ethical behavior in an organization is to distribute rewards strictly on the basis of outcomes.

Leaders as good role models must walk the talk.This means they must be _______ in their words and actions.

The Sarbanes-Oxley Act of 2002 does not provide legal protection to employee whistleblowers of publicly traded companies.

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

Although many organizations encourage creativity and risk taking,few successful companies tolerate failure.

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

Research supports that there are many potential benefits of an ethical organization,including that there is a strong and consistent relationship between ethical performance and measures of financial performance.