Ethics Exam 2 Chapter 7

explicit mission statement

A values-based ethics approach to ethical corporate cultures
defines the firm as well as how customers and employees should be treated

differential association

The idea that people learn ethical or unethical behavior while interacting with others who are a part of their role-sets

Culture is shared, relatively stable, and is formed over a long period of time.

Over the years, scholars have developed more than 100 definitions of culture. According to the text, all have the following common elements:

Melinda is a very popular executive. She inspires her employees to follow a common vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Melinda has helped to create a(n) culture.

integrative

Work groups

are used to subdivide duties within functional areas of a company

Integrative culture

combines high levels of concern for people and performance

legitimate power

When a foreman orders an assembly-line employee to carry out a task, which the employee perceives as unethical yet the employee feels compelled to complete, the foreman is exercising

Motivation

a force within the individual that focuses his or her behavior on achieving a goal.

Management's sense of the organization's culture

may be quite different from employees' perceptions

Which of the following statements about group norms is false?

Group norms never conflict with the overall organization's culture.

In order for whistle-blowing to be effective,

it requires that the individual have adequate knowledge of wrongdoing that could damage society.

informal groups.

Individuals, often from the same department, who band together for purposes that may or may not be relevant to the organization

Which of the following statements about group norms is false?

Group norms never conflict with the overall organization's culture

. In order for whistle-blowing to be effective

it requires that the individual have adequate knowledge of wrongdoing that could damage society.

Teams

bring together the functional expertise of employees from several different areas of the organization on a single project

Marcus is the top-performing development director his non-profit organization has ever had. He possesses countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have
over new development departm

. expert power

The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary concern about these new incentives is

whistle-blowers might be tempted to report to the SEC with their reports and not report the misconduct to the
company's internal compliance program.

No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent

informal expressions of an organization's culture

Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as

differential association

The exacting organizational culture is interested in

performance but has little concern for employees

The apathetic organizational culture exhibits

minimal concern for people and performance

When developing an ethical culture, there has to be a(n)______________element because every organization has employees that will try to take advantage if there is an opportunity for misconduct

compliance

An advantage of the decentralized organization is that

it is adaptable and can quickly respond to external change.

reward power

The ability to influence the behavior of others by offering them something desirable

Which of the following statements about power is true?

Power can be used to motivate individuals ethically or unethically

Expert power usually stems from

a superior's credibility with his or her subordinates

An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is

decentralized.

Which of the following is not a characteristic of an ethical corporate culture?

Management conducts itself in a way that is not consistent with the code of conduct

Although both structures can create opportunities for unethical conduct, which organizational structure tends to be more ethical?

Centralized

Corporate Culture

Values, beliefs, rules, and ceremonies that are accepted, shared, and circulated throughout an organization

Sarbanes-Oxley 404

Requires firms to adopt a set of values that forms a portion of the company's culture

Organizational Cultures

Apathetic, Caring, Integrative, Exacting

Compliance culture

Uses laws and regulatory rules to create compliance codes and requirements

Values-based ethics culture

Relies on a mission statement that defines the core values of the firm and how customers and employees should be treated