1. Which of the following is the best way for a stakeholder to gain legitimacy?
a. Insisting that your group's interests are extremely important to society in general
b. Letting the media know the horrible things the company has done so that the rest of the world will know
c. Making claims that you feel are reasonable, regardless of the view of other stakeholders
d. Exploring the issue from a variety of perspectives and then communicating your desires for change in a respectful manner
e. Committing acts of violence to show the company and the community that you are serious
2. Perhaps the strongest argument against high levels of compensation for CEOs is
a. the discrepancy between the highest paid executives and the median employee wages.
b. that the CEO has very little affect on the company's performance.
c. that the CEO is usually just a figurehead, and the board of directors makes the decisions.
d. that the job is relatively simple because most duties are delegated to other managers.
e. the high turnover of executives throughout most large corporations.
3. A behavioral simulation, or role play exercise, is a relatively new ethics training device that
a. has been found less effective than traditional lecture training methods.
b. recreates the complexities of organizational relationships and aids the development of analytical skills for resolving ethical issues.
c. requires the use of technology, including video and the computer.
d. can only be used in small organizations.
e. focuses on legal issues in the workplace and the skills that employees need to resolve legal concerns.
4. Organizational crises are characterized by all of the following except
a. routine problems occurring in business.
b. a threat to a company's high-priority goals.
c. far-reaching events.
d. being a surprise to a company's membership.
e. the need for swift action.
5. Corporate governance requires a system of _________ similar to the distribution of power between the executive, legislative, and judiciary branches of the U.S. government.
a. goals and values
b. priorities and divisions
c. decision making authorities
d. division of labor
e. checks and balances
6. Which stakeholder provides the goods and services necessary for an organization to function effectively and efficiently?
a. Managers
b. Stockholders
c. Government
d. Suppliers
e. Employees
7. What is the primary concern of a board of directors?
a. To determine whether or not to pay dividends to stockholders
b. To watch out for the interests of the employees
c. To develop short-term goals for the company
d. To make decisions about how to run the day-to-day affairs of the business
e. To monitor the decisions made by managers on behalf of the company
8. Because no government system is perfect,
a. legal and regulatory systems are constantly evolving and changing in response to social institutions, including business.
b. the costs of business regulation have decreased.
c. companies do not have to worry about meeting every law and regulation, since they are likely to change.
d. self-regulatory mechanisms have created less of a need for government oversight.
e. the 'invisible hand of competition' has replaced many business and economic regulations.
9. _____ leadership is best suited for higher levels of ethical commitment among employees and strong stakeholder support for an ethical climate.
a. Territorial
b. Transcendental
c. Tactical
d. Transactional
e. Transformational
10. In the 'bad apple-bad barrel' analogy,
a. a code of conduct is not taken seriously as a key component of an ethics program.
b. the code of conduct is used to solve all ethical dilemmas faced in the workplace.
c. 'bad apples' refer to an unethical corporate culture.
d. no one has the right to label some conduct as unethical.
e. 'bad apples' are people who will always do things in their own self-interest regardless of organizational standards of conduct.