Chapter 04 - The Corporate CultureImpact and Implications

Chapter 04 The Corporate CultureImpact and Implications

True/False Questions 1. Due to diverse employee groups and management styles, the wor culture o! a large glo"al !irm in one country will di!!er signi!icantly !rom the wor culture o! the same !irm hal!way around the world. #nswer$ %alse Di!!iculty$ &asy 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ /emem"er ##C0,$ Diversity 1age$ 142 %eed"ac $ Despite the !act that corporations have many locations, with diverse employee groups and management styles, an individual wor ing !or a large glo"al !irm in one country will share various aspects o! her or his wor ing culture with someone wor ing !or the same !irm hal!way around the world. 3. Corporate culture shapes, and is shaped, "y the people who are mem"ers o! the organi4ation. #nswer$ True Di!!iculty$ &asy 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 150 %eed"ac $ *hile culture shapes the people who are mem"ers o! the organi4ation, it is also shaped "y the people who comprise it. 6. Di!!ering individual perception o! culture ma es it easier to de!ine the speci!ic culture within an organi4ation. #nswer$ %alse Di!!iculty$ 7edium 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 153 %eed"ac $ De!ining the speci!ic culture within an organi4ation is not an easy tas since it is partially "ased on each participant-s perception o! the culture. 4. #n ethical environment, or culture, would "e one in which employees are e.pected to act
4-1
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

"y the rules in spite o! unethical conditions. #nswer$ %alse Di!!iculty$ &asy 'earning (")ective$ 04-03 Topic$ Culture and &thics ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 156 %eed"ac $ #n ethical environment, or culture, would "e one in which employees are empowered and e.pected to act in ethically responsi"le ways, even when the law does not re=uire it. 5. (rgani4ations with similar missions, rules, and legal regulations, can have signi!icantly di!!erent cultures. #nswer$ True Di!!iculty$ 7edium 'earning (")ective$ 04-03 Topic$ Culture and &thics ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 155 %eed"ac $ %ederal &mergency 7anagement #gency and the Coast :uard are two very similar organi4ations with similar missions, rules, and legal regulations> "ut they have signi!icantly di!!erent cultures. ?. (rgani4ations that have a traditional approach to culture can "e classi!ied as compliance"ased cultures. #nswer$ True Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15? %eed"ac $ In the 1220s, a distinction came to "e recogni4ed in types o! corporate culture$ some !irms were classi!ied as compliance-"ased cultures Athe traditional approachB while others were considered to "e values-"ased or integrity-"ased cultures. C. # values-"ased culture recogni4es that where rules do not apply, the !irm must rely on the personal integrity o! its wor !orce during decision-ma ing. #nswer$ True Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic

4-3
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

1age$ 15C %eed"ac $ # values-"ased culture recogni4es that where a rule does not apply the !irm must rely on the personal integrity o! its wor !orce when decisions need to "e made. D. EFuietly ethicalG e.ecutives within the con!ines o! the top management team are li ely to "e perceived as ethical leaders "ecause they have the support o! the top management. #nswer$ %alse Di!!iculty$ &asy 'earning (")ective$ 04-04 Topic$ &thical 'eadership and Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?3 %eed"ac $ I! an e.ecutive is E=uietly ethicalG within the con!ines o! the top management team, "ut more distant employees do not now a"out her or his ethical stance, they are not li ely to "e perceived as an ethical leader. 2. #n e!!ective leader is not always an ethical leader. #nswer$ True Di!!iculty$ &asy 'earning (")ective$ 04-05 Topic$ &!!ective 'eadership and &thical, &!!ective 'eadership ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 1?3 %eed"ac $ &!!ective leaders are a"le to get !ollowers to their common destination. ,ut not every e!!ective leader is an ethical leader. 10. # !irm must !irst determine its mission "e!ore impacting the culture through a code o! conduct. #nswer$ True Di!!iculty$ &asy 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?4 %eed"ac $ ,e!ore impacting the culture through a code o! conduct or statement o! values, a !irm must !irst determine its mission so that decision ma ers have direction when determining dilemmas. 11. The !irst step in the construction o! a code or mission is to articulate a clear vision regarding the !irm-s direction. #nswer$ %alse Di!!iculty$ &asy 'earning (")ective$ 04-0?

4-6
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1??-1?C %eed"ac $ In the construction o! a personal code or mission, it is critical to !irst as yoursel! what you stand !or or what the company stands !or. The second step is the articulation o! a clear vision regarding the !irm-s direction. 13. (ne o! the most determinative elements o! integration is communication. #nswer$ True Di!!iculty$ &asy 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?D %eed"ac $ (ne o! the most determinative elements o! integration is communication "ecause without it there is no clarity o! purpose, priorities, or process. 16. *histle"lowing to e.ternal groups is usually pre!erred over internal mechanisms !or reporting wrongdoing. #nswer$ %alse Di!!iculty$ &asy 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?2 %eed"ac $ ,ecause whistle"lowing to e.ternal groups, such as the press and the legal authorities, can "e so harm!ul to "oth the whistle"lower and to the !irm itsel!, internal mechanisms !or reporting wrongdoing are pre!era"le !or all concerned. 14. 'ac o! any generally accepted !undamental values !or the organi4ation is a clear sign o! a Eto.icG culture. #nswer$ True Di!!iculty$ &asy 'earning (")ective$ 04-0D Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C3 %eed"ac $ The !irst clear sign o! a Eto.icG culture would "e a lac o! any generally accepted !undamental values !or the organi4ation. 15. The 8nited 0tates 0entencing Commission is an independent agency that regulates sentencing policies in the !ederal court system.

4-4
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

#nswer$ True Di!!iculty$ &asy 'earning (")ective$ 04-02 Topic$ 7andating and &n!orcing Culture$ The %ederal 0entencing :uidelines !or (rgani4ations ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C6-1C4 %eed"ac $ The 8nited 0tates 0entencing Commission A800CB, an independent agency in the 8nited 0tates Hudiciary, was created in 12D4 to regulate sentencing policy in the !ederal court system. Multiple Choice Questions 1?. *hich o! the !ollowing is true a"out corporate cultures+ a. Corporate cultures are not in!luenced "y the people comprising that organi4ation. ". Corporate cultures are not su")ect to changes over time. c. Corporate cultures can hinder individuals in ma ing the ErightG decisions. d. Corporate cultures in a glo"al !irm di!!er signi!icantly across di!!erent countries. #nswer$ c Di!!iculty$ 7edium 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 142 %eed"ac $ Individuals can "e helpedor hinderedin ma ing the ErightG or EwrongG decision Aaccording to their own valuesB "y the e.pectations, values, and structure o! the organi4ation in which they live and wor . 1C. Corporate culture$ a. is !ashioned "y a shared pattern o! "elie!s, e.pectations, and meanings that in!luence and guide the thin ing and "ehaviors o! the mem"ers o! that organi4ation. ". shapes the people who are mem"ers o! the organi4ation, "ut it is not shaped "y the people who comprise that organi4ation. c. is not in!luenced "y unspo en standards and e.pectations. d. is generally easy to modi!y. #nswer$ a Di!!iculty$ &asy 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 150 %eed"ac $ Corporate culture is !ashioned "y a shared pattern o! "elie!s, e.pectations, and

4-5
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

meanings that in!luence and guide the thin ing and "ehaviors o! the mem"ers o! that organi4ation. 1D. *hich o! the !ollowing is true a"out culture+ a. The speci!ic culture within an organi4ation can "e de!ined easily and o")ectively. ". The incentives an organi4ation employs do not help in determining the organi4ation-s speci!ic culture. c. #ttitude and "ehavior are the "iggest !raction o! the elements that determine culture. d. 1erception may actually impact the culture in a circular way. #nswer$ d Di!!iculty$ &asy 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 153 %eed"ac $ De!ining the speci!ic culture within an organi4ation is not an easy tas since it is partially "ased on each participant-s perception o! the culture. In !act, perception may actually impact the culture in a circular waya culture e.ists, we perceive it to "e a certain type o! culture, we respond to the culture on the "asis o! our perception, and we there"y impact others- e.perience o! the culture. 12. *hich o! the !ollowing situations could result in the "usiness culture "ecoming a determining !actor in ethical decision ma ing+ a. 'ac o! competition ". 'aw providing incomplete answers c. 'ac o! strong leadership d. 0tagnant or decreasing pro!its #nswer$ " Di!!iculty$ 7edium 'earning (")ective$ 04-03 Topic$ Culture and &thics ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 156 %eed"ac $ In situations where the law provides an incomplete answer !or ethical decision ma ing, the "usiness culture is li ely to "e the determining !actor in the decision. 30. *hich o! the !ollowing statements is true o! ethical cultures+ a. *or place ethical cultures have no impact on decision ma ing. ". 0u"ordinates are e.pected not to act unless directed "y superior authorities. c. Decisions are e.pected to "e ta en "ased on laws and not on ethical values. d. &mployees are e.pected to act in responsi"le ways, even i! the law does not re=uire it. #nswer$ d Di!!iculty$ 7edium 'earning (")ective$ 04-03

4-?
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

Topic$ Culture and &thics ,loom-s Ta.onomy$ 8nderstand ##C0,$ &thics> #nalytic 1age$ 156 %eed"ac $ #n ethical environment, or culture, would "e one in which employees are empowered and e.pected to act in ethically responsi"le ways, even when the law does not re=uire it. 31. #ccording to the IIIII ethics tradition, people act out o! ha"it than out o! deli"erations. a. Jantian ". virtue c. utilitarian d. principle-"ased #nswer$ " Di!!iculty$ 7edium 'earning (")ective$ 04-03 Topic$ Culture and &thics ,loom-s Ta.onomy$ 8nderstand ##C0,$ &thics> #nalytic 1age$ 155 %eed"ac $ The virtue ethics tradition reminds us that our decisions and our actions are very o!ten less deli"erate than that. *e are as li ely to act out o! ha"it and "ased on character as we are to act a!ter care!ul deli"erations. 33. *hich o! the !ollowing is a traditional approach to corporate culture+ a. @alues-"ased ". Integrity-"ased c. Customer-"ased d. Compliance-"ased #nswer$ d Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15? %eed"ac $ Compliance-"ased culture is a traditional approach to corporate culture. 36. *hich o! the !ollowing is true a"out value-"ased cultures+ a. They emphasi4e o"edience to the rules as the primary responsi"ility o! ethics. ". They are only as strong and as precise as the rules with which wor ers are e.pected to comply. c. They re!lect the traditional approach o! classi!ying corporate culture. d. These cultures are perceived to "e more !le.i"le and !ar-sighted corporate environments. #nswer$ d Di!!iculty$ 7edium

4-C
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15? %eed"ac $ In the 1220s, a distinction came to "e recogni4ed in types o! corporate culture$ some !irms were classi!ied as compliance-"ased cultures Athe traditional approachB while others were considered to "e integrity-"ased or values-"ased cultures. These latter cultures are perceived to "e more !le.i"le and !ar-sighted corporate environments. 34. *hich o! the !ollowing is emphasi4ed "y a compliance-"ased culture+ a. /eliance on personal integrity o! employees !or decision ma ing ". 8se o! values as the principle !or decision ma ing c. ("edience to rules as the primary responsi"ility o! ethics d. /ein!orcement o! a set o! values rather than a set o! rules #nswer$ c Di!!iculty$ 7edium 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15C %eed"ac $ # compliance-"ased culture emphasi4es o"edience to the rules as the primary responsi"ility o! ethics. 35. *hich o! the !ollowing cultures will empower legal counsel and audit o!!ices to mandate and to monitor con!ormity with the law and with internal codes+ a. Customer-"ased culture ". Integrity-"ased culture c. @alues-"ased culture d. Compliance-"ased culture #nswer$ d Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15C %eed"ac $ # compliance-"ased culture will empower legal counsel and audit o!!ices to mandate and to monitor compliance with the law and with internal codes. 3?. *hich o! the !ollowing is true a"out an integrity-"ased culture+ a. It rein!orces a particular set o! rules. ". It rein!orces a particular set o! values. c. It empowers legal "odies to monitor compliance. d. It emphasi4es rules as the primary responsi"ility o! ethics.

4-D
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

#nswer$ " Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15C %eed"ac $ # values-"ased or integrity-"ased culture is one that rein!orces a particular set o! values rather than a particular set o! rules. 3C. *hen would a values-"ased culture rely on the personal integrity o! its wor !orce !or ma ing decisions+ a. In situations where the rules o! the organi4ation do not apply ". *hen legal "odies are empowered to monitor compliance c. In situations where rules are applica"le to ma e decisions d. In situations where a set o! principles should "e en!orced #nswer$ a Di!!iculty$ 7edium 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15C %eed"ac $ # values-"ased culture recogni4es that where a rule does not apply the !irm must rely on the personal integrity o! its wor !orce when decisions need to "e made. 3D. *hich o! the !ollowing is true a"out a compliance-"ased culture andKor a value-"ased culture+ a. # compliance-"ased culture recogni4es that where a rule does not apply the !irm must rely on the personal integrity o! its wor !orce when decisions need to "e made. ". # values-"ased culture is one that rein!orces a particular set o! rules rather than a particular set o! values. c. @alues-"ased organi4ations include a compliance structure. d. @alue-"ased organi4ations do not have codes o! conduct. #nswer$ c Di!!iculty$ 7edium 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15C %eed"ac $ # values-"ased culture recogni4es that where a rule does not apply the !irm must rely on the personal integrity o! its wor !orce when decisions need to "e made. This is not to say that values-"ased organi4ations do not include a compliance structure. 32. #s compared to a traditional compliance-oriented program, an evolved and inclusive

4-2
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

ethics program$ a. !ocuses on meeting regulatory re=uirements. ". entails helping to uni!y a !irm-s glo"al operations. c. strives to minimi4e ris s o! litigation and indictment. d. wor s mainly toward improving accounta"ility mechanisms. #nswer$ " Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15C-15D %eed"ac $ The goals o! a more evolved and inclusive ethics program may entail a "roader and more e.pansive application to the !irm, including maintaining "rand and reputation, recruiting and retaining desira"le employees, helping to uni!y a !irm-s glo"al operations, creating a "etter wor ing environment !or employees, and doing the right thing in addition to doing things right. 60. *hat is the role o! an ethical leader in corporate cultures+ a. # leader should "e ethical within the con!ines o! the top management team. ". #n ethical leader must shrin his or her duties in the corporate structure. c. #n ethical leader should not place her or his own ethical "ehavior a"ove any other consideration. d. # leader must clearly advocate and model ethical "ehavior. #nswer$ d Di!!iculty$ 7edium 'earning (")ective$ 04-04 Topic$ &thical 'eadership and Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ &thics> #nalytic 1age$ 152 %eed"ac $ In thought, word, and deed, a company-s leaders must clearly and unam"iguously "oth advocate and model ethical "ehavior. 61. *hich o! the !ollowing is true a"out ethical leaders+ a. &thical "usiness leaders do not need to tal a"out ethics and act ethically on a personal level. ". They do not say EnoG to conduct that would "e inconsistent with their organi4ation-s and their own personal values. c. I! an e.ecutive is E=uietly ethicalG within the con!ines o! the top management team, "ut more distant employees do not now a"out her or his ethical stance, they are more li ely to "e perceived as an ethical leader. d. They e.pect others to say no to them. #nswer$ d Di!!iculty$ 7edium 'earning (")ective$ 04-04

4-10
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

Topic$ &thical 'eadership and Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ &thics> #nalytic 1age$ 152 %eed"ac $ &thical leaders say EnoG to conduct that would "e inconsistent with their organi4ation-s and their own personal values. I! they demonstrate this courage, they are sending the message that this is the way to succeed in this culture. They also e.pect others to say no to them. 63. Identi!y the correct statement a"out ethical leaders. a. Individuals perceived as ethical leaders avoid doing things that Etraditional leadersG do. ". # E=uietly ethicalG e.ecutive is li ely to "e perceived as an ethical leader. c. #n ethical leader-s traits and "ehaviors must "e socially visi"le. d. &thical leaders are not people-oriented leaders. #nswer$ c Di!!iculty$ &asy 'earning (")ective$ 04-04 Topic$ &thical 'eadership and Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?3 %eed"ac $ #n ethical leader-s traits and "ehaviors must "e socially visi"le and understood in order to "e noticed and in!luence perceptions. 66. ;ow is an ethical, e!!ective leader di!!erent !rom an e!!ective leader+ a. #n ethical leader will ta e decisions "ased only on a set o! rules. ". #n ethical leader will !ollow a set o! rules regardless o! conse=uences. c. #n ethical leader will empower the employees in decision ma ing. d. #n ethical leader will achieve his or her goals through intimidation. #nswer$ c Di!!iculty$ &asy 'earning (")ective$ 04-05 Topic$ &!!ective 'eadership and &thical, &!!ective 'eadership ,loom-s Ta.onomy$ /emem"er ##C0,$ &thics> #nalytic 1age$ 1?6 %eed"ac $ Creating a corporate culture in which employees are empowered and e.pected to ma e ethically responsi"le decisions is a necessary part o! "eing an ethical "usiness leader. 64. The means used to motivate others and achieve one-s goals plays a ey role in distinguishing "etween$ a. silent leaders and visi"le leaders. ". e!!ective leaders and ethical leaders. c. in!ormal leaders and !ormal leaders. d. silent leaders and ethical leaders. #nswer$ "

4-11
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

Di!!iculty$ &asy 'earning (")ective$ 04-05 Topic$ &!!ective 'eadership and &thical, &!!ective 'eadership ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?3 %eed"ac $ (ne ey di!!erence "etween e!!ective leaders and ethical leaders lies with the means used to motivate others and achieve one-s goals. 65. *hich o! the !ollowing is an essential element in esta"lishing an ethical leadership+ a. The end or o")ective toward which the leader leads ". The prevailing culture in the e.ternal environment c. The ethical nature o! the team mem"ers d. The personality traits o! the team mem"ers #nswer$ a Di!!iculty$ &asy 'earning (")ective$ 04-05 Topic$ &!!ective 'eadership and &thical, &!!ective 'eadership ,loom-s Ta.onomy$ /emem"er ##C0,$ &thics> #nalytic 1age$ 1?6 %eed"ac $ *hile some means may "e ethically more appropriate than others Ae.g., persuasion rather than coercionB, it is not the method alone that esta"lishes a leader as ethical. The other element o! ethical leadership involves the end or o")ective toward which the leader leads. 6?. I! we )udge a leader solely "y the results produced, we are !ollowing the IIIII ethical tradition. a. deontological ". virtual c. Jantian d. utilitarian #nswer$ d Di!!iculty$ 7edium 'earning (")ective$ 04-05 Topic$ &!!ective 'eadership and &thical, &!!ective 'eadership ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 1?6 %eed"ac $ I! we )udge a leader solely "y the results producedthe utilitarian greatest good !or the greatest num"erwe may ignore the mistreatment o! wor ers that was necessary to achieve that end. 6C. *hich o! the !ollowing is a value that will impact the culture o! an organi4ation in the a"sence o! any other esta"lished values+ a. 1ro!itat any cost ". &thical "ehavior

4-13
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

c. 'egal compliance d. Customer satis!action #nswer$ a Di!!iculty$ &asy 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?4 %eed"ac $ ,e!ore impacting the culture through a code o! conduct or statement o! values, a !irm must !irst determine its mission so that decision ma ers have direction when determining dilemmas. In the a"sence o! other values, the only value is pro!itat any cost. 6D. #AnB IIIII provides concrete guidance !or internal decision ma ing creating a "uilt-in ris management system. a. code o! conduct ". organi4ation vision c. income statement d. om"udsman #nswer$ a Di!!iculty$ &asy 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?4 %eed"ac $ The code has the potential to "oth enhance corporate reputation and to provide concrete guidance !or internal decision ma ing, thus creating a "uilt-in ris management system. 62. The IIIII serves as an articulation o! the !undamental principles at the heart o! the organi4ation and should guide all decisions without a"ridgment. a. annual report ". vision statement c. mission statement d. income statement #nswer$ c Di!!iculty$ &asy 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?4 %eed"ac $ The mission statement or corporate credo serves as an articulation o! the !undamental principles at the heart o! the organi4ation and those that should guide all decisions, without a"ridgment.

4-16
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

40. The !irst step in constructing a personal code or mission !or a !irm is to$ a. articulate a clear vision regarding the !irm-s direction. ". as onesel! what one stands !or or what the !irm stands !or. c. "elieve that the culture is actually possi"le, achieva"le. d. identi!y clear steps as to how the cultural shi!t will occur. #nswer$ " Di!!iculty$ &asy 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?? %eed"ac $ #s with the construction o! a personal code or mission, it is critical to !irst as yoursel! what you stand !or or what the company stands !or. 41. The second step in the development o! guiding principles !or a !irm is to$ a. as onesel! what one stands !or or what the company stands !or. ". articulate a clear vision regarding the !irm-s direction. c. identi!y clear steps as to how the cultural shi!t will occur. d. "elieve that the culture is actually possi"le, achieva"le. #nswer$ " Di!!iculty$ &asy 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?C %eed"ac $ The second step in the development o! guiding principles !or the !irm is the articulation o! a clear vision regarding the !irm-s direction. 43. Identi!y the most determinative element in integration, without which, there is no clarity o! purpose, priorities, or process. a. &thics ". 'eadership c. Tradition d. Communication #nswer$ d Di!!iculty$ &asy 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?D %eed"ac $ (ne o! the most determinative elements o! integration is communication "ecause without it there is no clarity o! purpose, priorities, or process.

4-14
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

46. *hich o! the !ollowing is true a"out communicating unethical "ehavior in a corporate structure+ a. /eporting ethically suspect "ehavior is a simple thing to do. ". &mployees are always com!orta"le in raising =uestions against superiors. c. /eporting individuals can !ace retaliation !rom superiors. d. *histle"lowing is the most pre!erred mechanism !or communicating ethical "ehavior. #nswer$ c Di!!iculty$ &asy 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ &thics 1age$ 1?D %eed"ac $ Individuals o!ten pay a real cost when they report on unethical "ehavior Asuch as retaliationB, especially i! wor place superiors are involved in the report o! wrongdoing. 44. *hich o! the !ollowing involves the disclosure o! unethical or illegal activities to someone who is in a position to ta e action to prevent or punish the wrongdoing+ a. *histle"lowing ". /edlining c. :entri!ication d. %lyposting #nswer$ a Di!!iculty$ &asy 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?2 %eed"ac $ *histle"lowing involves the disclosure o! unethical or illegal activities to someone who is in a position to ta e action to prevent or punish the wrongdoing. 45. #n e!!ective internal mechanism o! whistle"lowing$ a. occurs when employees report wrongdoing to legal authorities. ". must e.pose unethical "ehaviors to the press. c. should not protect the rights o! the accused. d. must allow con!identiality, i! not anonymity. #nswer$ d Di!!iculty$ &asy 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?2 %eed"ac $ The internal mechanisms must "e e!!ective, must allow con!identiality, i! not

4-15
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

anonymity, and must strive to protect the rights o! the accused party. 4?. *hich o! the !ollowing statements is true a"out whistle"lowing+ a. It involves the disclosure o! ethical activities. ". It may seem disloyal, "ut it does not harm the "usiness. c. It can occur "oth internally and e.ternally. d. It does not cause any harm to the whistle"lower. #nswer$ c Di!!iculty$ 7edium 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 1?2 %eed"ac $ *histle"lowing in an organi4ation can occur "oth internally and e.ternally. 4C. *hich o! the !ollowing mechanisms allows employees to report wrongdoing and to create mechanisms !or !ollow-up and en!orcement+ a. #ccounta"ility ". (m"udsman c. #ppraisals d. Code o! conduct #nswer$ " Di!!iculty$ 7edium 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 1?2-1C0 %eed"ac $ In addition to or as part o! ethics and compliance o!!icers- responsi"ilities, many !irms have created ethics om"udsman and internal or e.ternal ethics hotlines. These mechanisms allow employees to report wrongdoing and to create mechanisms !or !ollow-up and en!orcement. 4D. *hich o! the !ollowing is an e!!ective way o! creating clear and success!ul reporting schemes+ a. 'eaders empowering su"ordinates to ta e decisions without providing guidance ". 7anagers ignoring the ris and ta ing a wait-and-see attitude c. Consistent and continuous communication o! the !irm-s values to all sta eholders d. 0u"ordinates staying away !rom reporting unethical "ehaviors o! superiors #nswer$ c Di!!iculty$ 7edium 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic

4-1?
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

1age$ 1C1 %eed"ac $ The most e!!ective way to ensure clarity and there"y ensure a success!ul reporting scheme is to consistently and continuously communicate the organi4ation-s values and e.pectations to all sta eholders. 42. *hich o! the !ollowing allows organi4ations to uncover silent vulnera"ilities that could pose challenges later to the !irm, serving as a vital element in ris assessment and prevention+ a. Code o! conduct ". (ngoing ethics audit c. *histle"lowing d. (m"udsman #nswer$ " Di!!iculty$ &asy 'earning (")ective$ 04-0D Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C3 %eed"ac $ 7onitoring and an ongoing ethics audit allow organi4ations to uncover silent vulnera"ilities that could pose challenges later to the !irm, thus serving as a vital element in ris assessment and prevention. 50. *hat is the term used to descri"e a potentially damaging or ethically challenged corporate culture+ a. ECausticG culture ". E1yrophoricG culture c. ECorrosiveG culture d. ETo.icG culture #nswer$ d Di!!iculty$ &asy 'earning (")ective$ 04-0D Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C3 %eed"ac $ # potentially damaging or ethically challenged corporate culture is sometimes re!erred to as a Eto.icG culture. 51. *hich o! the !ollowing statements is true a"out the %ederal 0entencing :uidelines !or (rgani4ations+ a. They provide uni!ormity and !airness to the )udiciary system. ". They are used to provide ar"itrary punishments. c. They are applica"le only to organi4ations and not to individuals. d. They assign most !ederal crimes to one o! 5 Eo!!ense levels.G. #nswer$ a

4-1C
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

Di!!iculty$ &asy 'earning (")ective$ 04-02 Topic$ 7andating and &n!orcing Culture$ The %ederal 0entencing :uidelines !or (rgani4ations ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C4 %eed"ac $ ,eginning in 12DC, the 800C prescri"ed mandatory %ederal 0entencing :uidelines !or (rgani4ations that apply to individual and organi4ational de!endants in the !ederal system, "ringing some amount o! uni!ormity and !airness to the system. 53. The 0upreme Court separated the EmandatoryG element o! the %ederal 0entencing :uidelines !or (rgani4ations !rom their advisory role, holding that their mandatory nature$ a. was only applica"le to individuals and not to organi4ations. ". provided ar"itrary punishments. c. violated the 0i.th #mendment right to a )ury trial. d. encouraged internal whistle"lowing. #nswer$ c Di!!iculty$ &asy 'earning (")ective$ 04-02 Topic$ 7andating and &n!orcing Culture$ The %ederal 0entencing :uidelines !or (rgani4ations ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C4 %eed"ac $ In its 30005 decision in 8.0. v. ,oo er, the 0upreme Court separated the EmandatoryG element o! the %ederal 0entencing :uidelines !or (rgani4ations !rom their advisory role, holding that their mandatory nature violated the 0i.th #mendment right to a )ury trial. 56. *hich o! the !ollowing directed the 800C to consider and to review its guidelines !or !raud relating to securities and accounting, as well as to o"struction o! )ustice, and speci!ically as ed !or severe and aggressive deterrents in sentencing recommendations+ a. ,an 0ecrecy #ct ". 0ar"anes-(.ley #ct c. :ramm-'each-,liley #ct d. %air Credit /eporting #ct. #nswer$ " Di!!iculty$ &asy 'earning (")ective$ 04-02 Topic$ 7andating and &n!orcing Culture$ The %ederal 0entencing :uidelines !or (rgani4ations ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C4 %eed"ac $ The 800C strived to use the %ederal 0entencing :uidelines !or (rgani4ations to

4-1D
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

create "oth a legal and an ethical corporate environment. This e!!ort was supported "y the 0ar"anes-(.ley #ct, which su"se=uently directed the 800C to consider and to review its guidelines !or !raud relating to securities and accounting, as well as to o"struction o! )ustice, and speci!ically as ed !or severe and aggressive deterrents in sentencing recommendations. 54. *hich o! the !ollowing is true a"out the 0ar"anes-(.ley #ct+ a. It speci!ically as ed !or lenient penalties in sentencing recommendations. ". It re=uired pu"lic companies to esta"lish a code o! conduct !or top e.ecutives and, i! they did not have one, to e.plain why it did not e.ist. c. Its mandatory nature violated the 0i.th #mendment right to a )ury trial. d. It did not support the 8nited 0tates 0entencing Commission-s guidelines to create "oth a legal and an ethical corporate environment. #nswer$ " Di!!iculty$ &asy 'earning (")ective$ 04-02 Topic$ 7andating and &n!orcing Culture$ The %ederal 0entencing :uidelines !or (rgani4ations ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C4 %eed"ac $ The 0ar"anes-(.ley #ct re=uired pu"lic companies to esta"lish a code o! conduct !or top e.ecutives and, i! they did not have one, to e.plain why it did not e.ist. 0everal stoc e.changes !ollowed suit and also re=uired codes o! "usiness conduct and ethics !rom its pu"licly held companies. 55. *hich o! the !ollowing should an organi4ation do in order to have an e!!ective compliance and ethics program+ a. It should do a pu"lic display o! an employee-s report on an unethical "ehavior. ". It should ensure that people who have previously engaged in unethical activities are placed in charge o! programs. c. The organi4ation should communicate its standards and procedures to all mem"ers. d. 'ow-level personnel must "e assigned to have responsi"ility !or the program. #nswer$ c Di!!iculty$ &asy 'earning (")ective$ 04-02 Topic$ 7andating and &n!orcing Culture$ The %ederal 0entencing :uidelines !or (rgani4ations ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C? %eed"ac $ %or an e!!ective compliance and ethics program the organi4ation shall communicate its standards and procedures to all mem"ers o! the organi4ation through training or other means appropriate to such individuals- respective roles and responsi"ilities. Fill in the Blank Questions

4-12
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

5?. I! one )oins a !irm with a culture that supports values other than those with which one is com!orta"le, there will "e a IIIII. #nswer$ values con!lict Di!!iculty$ &asy 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 150 %eed"ac $ I! you )oin a !irm with a culture that supports other values than those with which you are com!orta"le, there will "e values con!licts!or "etter or worse. 5C. De!ining the speci!ic culture within an organi4ation is not an easy tas since it is partially "ased on each participant-s IIIII o! the culture. #nswer$ perception Di!!iculty$ &asy 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 153 %eed"ac $ De!ining the speci!ic culture within an organi4ation is not an easy tas since it is partially "ased on each participant-s perception o! the culture. 5D. #AnB IIIII environment is one in which employees act in responsi"le ways, even when the law does not re=uire it. #nswer$ ethical Di!!iculty$ &asy 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 156 %eed"ac $ #n ethical environment, or culture, would "e one in which employees are empowered and e.pected to act in ethically responsi"le ways, even when the law does not re=uire it. 52. The IIIII tradition reminds us that we are as li ely to act out o! ha"it and "ased on character as we are to act a!ter care!ul deli"erations. #nswer$ virtue ethics Di!!iculty$ &asy 'earning (")ective$ 04-03 Topic$ Culture and &thics ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic

4-30
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

1age$ 155 %eed"ac $ *hen we tal a"out decision ma ing, it is easy to thin in terms o! a rational, deli"erative process in which a person consciously deli"erates a"out and weighs each alternative "e!ore acting. ,ut the virtue ethics tradition reminds us that our decisions and our actions are very o!ten less deli"erate than that. *e are as li ely to act out o! ha"it and "ased on character as we are to act a!ter care!ul deli"erations. ?0. @alues-"ased cultures are also nown as IIIII cultures. #nswer$ integrity-"ased Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15? %eed"ac $ In the 1220s, a distinction came to "e recogni4ed in types o! corporate culture$ some !irms were classi!ied as compliance-"ased cultures Athe traditional approachB while others were considered to "e values-"ased or integrity-"ased cultures. ?1. # IIIII culture will empower legal and audits o!!ices to mandate and to monitor compliance with the law and with internal codes. #nswer$ compliance-"ased Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15C %eed"ac $ # compliance-"ased culture will empower legal counsel and audit o!!ices to mandate and to monitor compliance with the law and with internal codes. ?3. &thics holds a higher position in the !irm i! a highly s illed individual is hired into an e.clusive position as IIIII and is given a sta!! and a "udget to support the wor re=uired. #nswer$ ethics o!!icer Di!!iculty$ &asy 'earning (")ective$ 04-04 Topic$ &thical 'eadership and Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?0 %eed"ac $ &thics was not a priority i! the general counsel served as the ethics o!!icer in her Espare time,G and no additional resources were allocated to that activity. &thics holds a di!!erent position in the !irm i! a highly s illed individual is hired into an e.clusive position as ethics o!!icer and is given a sta!! and a "udget to support the wor re=uired. ?6. (ne o! the ey mani!estations o! ethical leadership is the articulation o! IIIII !or the

4-31
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

organi4ation. #nswer$ values Di!!iculty$ &asy 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?4 %eed"ac $ (ne o! the ey mani!estations o! ethical leadership is the articulation o! values !or the organi4ation. ?4. IIIII involves the disclosure o! unethical or illegal activities to someone who is in a position to ta e action to prevent or punish the wrongdoing. #nswer$ *histle"lowing Di!!iculty$ &asy 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?2 %eed"ac $ *histle"lowing involves the disclosure o! unethical or illegal activities to someone who is in a position to ta e action to prevent or punish the wrongdoing. ?5. 800C prescri"ed mandatory IIIII that apply to individual and organi4ational de!endants in the !ederal system, "ringing some amount o! uni!ormity and !airness to the system. #nswer$ %ederal 0entencing :uidelines !or (rgani4ations Di!!iculty$ &asy 'earning (")ective$ 04-02 Topic$ 7andating and &n!orcing Culture$ The %ederal 0entencing :uidelines !or (rgani4ations ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1C4 %eed"ac $ ,eginning in 12DC, the 800C prescri"ed mandatory %ederal 0entencing :uidelines !or (rgani4ations that apply to individual and organi4ational de!endants in the !ederal system, "ringing some amount o! uni!ormity and !airness to the system. Essay Questions ??. *hat is corporate culture+ ;ow does it shape an employee+ #nswer$ &very organi4ation has a culture, !ashioned "y a shared pattern o! "elie!s, e.pectations, and meanings that in!luence and guide the thin ing and "ehaviors o! the mem"ers o! that organi4ation. *hile culture shapes the people who are mem"ers o! the organi4ation, it is also shaped "y the people who comprise it. &ven in this age o! decentrali4ed corporations and other institutions, there remains a sense o! culture in organi4ations. This is

4-33
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

especially true in small local !irms, "ut it is )ust as true o! ma)or glo"al corporations. Despite the !act that corporations have many locations, with diverse employee "ases and management styles, an individual wor ing !or a large glo"al !irm in one country will share various aspects o! her or his wor ing culture with someone wor ing !or the same !irm hal!way around the world. This is not to say that their wor ing environments cannot "e wholly di!!erent in many regards> the corporate culture, however, survives the distance and di!!erences. ,usinesses also have unspo en yet in!luential standards and e.pectations. I! one )oins a !irm with a culture that supports other values than those with which one is com!orta"le, there will "e values con!licts!or "etter or worse. Di!!iculty$ 7edium 'earning (")ective$ 04-01 Topic$ *hat is Corporate Culture+ ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 142-150 ?C. ;ow does perception a!!ect the culture within an organi4ation+ #nswer$ De!ining the speci!ic culture within an organi4ation is not an easy tas since it is partially "ased on each participant-s perception o! the culture. In !act, perception may actually impact the culture in a circular waya culture e.ists, people perceive it to "e a certain type o! culture, people respond to the culture on the "asis o! their perception, and people there"y impact others- e.perience o! the culture. Di!!iculty$ 7edium 'earning (")ective$ 04-01 Topic$ *hat Is Corporate Culture+ ,loom-s Ta.onomy$ #naly4e ##C0,$ #nalytic 1age$ 153 ?D. In addition to attitudes and "ehaviors, list the other determinants o! culture within an organi4ation. #nswer$ 0everal o! the elements that are easiest to perceive, such as attitudes and "ehaviors, are only a small !raction o! the elements that comprise the culture. In addition, culture is present in and can "e determined "y e.ploring any o! the !ollowing, among others$ tempo o! wor , the organi4ationLs approach to humor, methods o! pro"lem solving, the competitive environment, incentives, individual autonomy, and hierarchical structure. &ven with this list o! cultural elements, it can "e di!!icult !or individuals in a !irm to identi!y the speci!ic characteristics o! the culture within which they wor . Culture "ecomes so much a part o! the environment that participants do not even notice its e.istence. Di!!iculty$ 7edium 'earning (")ective$ 04-01 Topic$ *hat is Corporate Culture+ ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 153-156

4-36
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

?2. ;ow are the corporate culture and ethics related in an organi4ation+ #nswer$ The law can "e am"iguous in determining i! a "usiness should ma e a reasona"le accommodation !or an employee with allergies, arthritis, dysle.ia, hearing loss, or high "lood pressure. In situations where the law is an incomplete answer !or ethical decision-ma ing, the "usiness culture is li ely to "e the determining !actor in the decision. &thical "usinesses must !ind ways to encourage, to shape, and to allow ethically responsi"le decisions. #n ethical culture would "e one in which employees are empowered and e.pected to act in ethically responsi"le ways even when the law does not re=uire it. Di!!iculty$ 7edium 'earning (")ective$ 04-03 Topic$ Culture and &thics ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 156 C0. &.plain how corporate culture and virtue ethics are related. #nswer$ The cultivation o! ha"its, including the cultivation o! ethical virtue, is greatly shaped "y the culture in which one lives. *hen we tal a"out decision-ma ing, it is easy to thin in terms o! a rational, deli"erative process in which a person consciously deli"erates a"out and weighs each alternative "e!ore acting. ,ut the virtue ethics tradition reminds us that our decisions and our actions are very o!ten less deli"erate than that. *e are as li ely to act out o! ha"it and "ased on character than we are to act a!ter care!ul deli"erations. It is also clear that people-s ha"its are shaped and !ormed "y education and training"y culture. It also ta es place in the wor place, where individuals =uic ly learn appropriate and e.pected "ehaviors. Intentionally or not, "usiness institutions provide an environment in which ha"its are !ormed and virtues, or vices, are created. Di!!iculty$ 7edium 'earning (")ective$ 04-03 Topic$ Culture and &thics ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 155 C1. ;ow can an ethical culture have a direct e!!ect on the "ottom line o! an organi4ation+ #nswer$ I! attended to and supported, a strong ethical culture can serve as a deterrent to sta eholder damage and improve "ottom line sustaina"ility. I! ignored, the culture could instead rein!orce a perception that Eanything goes,G and Eany way to a "etter "ottom line is accepta"le,G destroying long-term sustaina"ility. Di!!iculty$ 7edium 'earning (")ective$ 04-03 Topic$ Culture and &thics ,loom-s Ta.onomy$ #naly4e ##C0,$ #nalytic 1age$ 155 C3. Descri"e how a values-"ased culture wor s.

4-34
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

#nswer$ # values-"ased culture is one that rein!orces a particular set o! values rather than a particular set o! rules. Certainly, these !irms may have codes o! conduct> "ut those codes are predicated on a statement o! values and it is presumed that the code includes mere e.amples o! the valuesL application. Integrating these values into the !irmLs culture encourages a decision-ma ing process that uses the values as underlying principles to guide employee decisions rather than as hard-and-!ast rules. The argument in !avor o! a values-"ased culture is "ased on the !act that a compliance culture is only as strong and as precise as the rules with which wor ers are e.pected to comply. # !irm can only have a certain num"er o! rules and the rules can never unam"iguously apply to every conceiva"le situation. # values-"ased culture recogni4es that where a rule does not apply, the !irm must rely on the personal integrity o! its wor !orce when decisions need to "e made. This is not to say that values-"ased organi4ations do not include a compliance structure. Di!!iculty$ 7edium 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 15C C6. ;ow does a compliance-"ased structure wor + #nswer$ # compliance-"ased culture emphasi4es o"edience to the rules as the primary responsi"ility o! ethics. # compliance-"ased culture will empower legal and audits o!!ices to mandate and monitor compliance with the law and with internal codes. Di!!iculty$ &asy 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 15C C4. &.plain the reasoning "ehind the popularity o! the values-"ased culture. #nswer$ The argument in !avor o! a values-"ased culture is "ased on the !act that a compliance culture is only as strong and as precise as the rules with which wor ers are e.pected to comply. # values-"ased culture recogni4es that where a rule does not apply, the !irm must rely on the personal integrity o! its wor !orce when decisions need to "e made. Di!!iculty$ 7edium 'earning (")ective$ 04-06 Topic$ Compliance and @alue-,ased Cultures ,loom-s Ta.onomy$ #naly4e ##C0,$ #nalytic 1age$ 15C C5. ;ow are leaders responsi"le !or supporting ethical decision-ma ing+ #nswer$ I! the goal o! corporate culture is to cultivate values, e.pectations, "elie!s, and patterns o! "ehavior that "est and most e!!ectively support ethical decision-ma ing, it

4-35
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

"ecomes the primary responsi"ility o! corporate leadership to steward this e!!ort. 'eaders are charged with this duty in part "ecause sta eholders throughout the organi4ation are guided to a large e.tent "y the Etone at the top.G I! a leader is perceived to "e shir ing her or his duties, misusing corporate assets, misrepresenting the !irmLs capa"ilities, or engaging in other inappropriate "ehavior, sta eholders receive the message that this type o! "ehavior is not only accepta"le, "ut perhaps e.pected and certainly the way to get ahead in that organi4ation. Instead, i! a leader is clearly placing her or his own ethical "ehavior a"ove any other consideration, sta eholders are guided to !ollow that role model and to emulate that priority scheme. ,eyond personal "ehavior, leadership sets the tone through other mechanisms such as the dedication o! resources. &thical "usiness leaders not only tal a"out ethics and act ethically on a personal level, "ut they also allocate corporate resources to support and promote ethical "ehavior. Di!!iculty$ 7edium 'earning (")ective$ 04-04 Topic$ &thical 'eadership and Corporate Culture ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 15D-152 C?. *hich traits should a leader possess so that he or she can "e perceived as "eing ethical+ #nswer$ (ne study o! the nature o! ethical leadership emphasi4ed the importance o! "eing perceived as a people-oriented leader, as well as the importance o! leaders engaging in visi"le ethical action. Traits that were also important included receptivity, listening, and openness, in addition to the more traditionally considered traits o! integrity, honesty, and trustworthiness. %inally, "eing perceived as having a "road ethical awareness, showing concern !or multiple sta eholders, and using ethical decision processes are also important. Those perceived as ethical leaders do many o! the things Etraditional leadersG do Ae.g., rein!orce the conduct they are loo ing !or, create standards !or "ehavior, and so onB, "ut they do that within the conte.t o! an ethics agenda. 1eople perceive that the ethical leaderLs goal is not simply )o" per!ormance, "ut per!ormance that is consistent with a set o! ethical values and principles. %inally, ethical leaders demonstrate caring !or people Aemployees and e.ternal sta eholdersB in the process. Di!!iculty$ 7edium 'earning (")ective$ 04-04 Topic$ &thical 'eadership and Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?0-1?3 CC. *hat are the di!!erences "etween an e!!ective leader and an ethical leader+ #nswer$ 'eaders guide, direct, and escort others toward a destination, an e!!ective leader is someone who does this success!ully and, presuma"ly, e!!iciently. &!!ective leaders are a"le to get !ollowers to their common destination. ,ut not every e!!ective leader is an ethical leader. (ne ey di!!erence lies with the means used to motivate others and achieve one-s goals. &!!ective leaders might "e a"le to achieve their goals through threats, intimidation,

4-3?
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

harassment, and coercion. (ne can also lead using more attractive means such as modeling ethical "ehavior, persuasion, or simply using oneLs institutional role. Certainly ethically appropriate methods o! leadership are central to "ecoming an ethical leader. Creating a corporate culture in which employees are empowered and e.pected to ma e ethically responsi"le decisions is a necessary part o! "eing an ethical "usiness leader. ,ut, while some means may "e ethically "etter than others Ae.g., persuasion rather than coercionB, it is not the method alone that esta"lishes a leader as ethical. *hile perhaps necessary, ethical means o! leading others are not su!!icient !or esta"lishing ethical leadership. The other element o! ethical leadership involves the end or o")ective toward which the leader leads. Di!!iculty$ 7edium 'earning (")ective$ 04-05 Topic$ &!!ective 'eadership and &thical, &!!ective 'eadership ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 1?3-1?6 CD. *hat is a code o! conduct+ *hat is its role within an organi4ation+ #nswer$ # code o! conduct is a set o! statements or principles designed "y an organi4ation to aid in the process o! decision ma ing. The code has the potential to "oth enhance corporate reputation and provide concrete guidance !or internal decision-ma ing, thus creating a "uilt-in ris management system. ,y esta"lishing the core tenets on which a company is "uilt, corporate leadership is e!!ectively laying down the law with regard to the "asis and o")ectives !or all !uture decisions. Di!!iculty$ 7edium 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ #naly4e ##C0,$ #nalytic 1age$ 1?4 C2. *hat is the last step in the development o! guiding principles !or a !irm+ #nswer$ To have an e!!ective code that will success!ully impact culture, there must "e a "elie! throughout the organi4ation that this culture is actually possi"le, achieva"le. I! con!licts remain that will prevent certain components !rom "eing reali4ed, or i! ey leadership is not on "oard, no one will have !aith in the changes articulated. Di!!iculty$ &asy 'earning (")ective$ 04-0? Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ /emem"er ##C0,$ #nalytic 1age$ 1?C D0. ;ow is communication important !or the integration o! an ethical culture+ *hat is whistle"lowing+ #nswer$ Integrating an ethical culture throughout a !irm and providing means !or en!orcement is vitally critical "oth to the success o! any cultural shi!t and to the impact on all sta eholders.

4-3C
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.

Chapter 04 - The Corporate CultureImpact and Implications

(ne o! the most determinative elements o! integration is communication "ecause without it there is no clarity o! purpose, priorities, or process. Communication o! culture must "e incorporated into the !irmLs voca"ulary, ha"its, and attitudes to "ecome an essential element in the corporate li!e, decision-ma ing, and determination o! success. *histle"lowing involves the disclosure o! unethical or illegal activities to someone who is in a position to ta e action to prevent or punish the wrongdoing. *histle"lowing can e.pose and end unethical activities, "ut it can also seem disloyal> it can harm the "usiness> and it can e.tract signi!icant costs on the whistle"lower. Di!!iculty$ 7edium 'earning (")ective$ 04-0C Topic$ ,uilding a @alues-,ased Corporate Culture ,loom-s Ta.onomy$ 8nderstand ##C0,$ #nalytic 1age$ 1?D-1?2

4-3D
9 3014 "y 7c:raw-;ill &ducation. This is proprietary material solely !or authori4ed instructor use. <ot authori4ed !or sale or distri"ution in any manner. This document may not "e copied, scanned, duplicated, !orwarded, distri"uted, or posted on a we"site, in whole or part.