Business Ethics and Leadership

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Questions and Answers

What is the primary role of a leader in creating an ethical culture?

Establishing hierarchical structures and power dynamics

Enforcing policies and viewpoints

Motivating employees through rewards and incentives

Influencing corporate culture and ethical posture (correct)

What is the potential outcome of a leader's ability to motivate and enforce norms?

Decreased employee satisfaction and commitment

Normative myopia

Increased employee satisfaction and commitment (correct)

Improved stakeholder relationships

What is the primary dimension of leadership that influences ethical decision-making?

Operational decision-making

Strategic decision-making

Ethical decision-making (correct)

Tactical decision-making

What is the potential pitfall of a leader's influence on corporate culture and ethical posture?

Normative myopia Signup and view all the answers

What is the primary way a leader can create an ethical culture?

Through influencing corporate culture and ethical posture Signup and view all the answers

What is a key characteristic of ethical leaders?

They consider the interests of all stakeholders. Signup and view all the answers

Why are ethical leaders important for an organization?

They create a positive corporate culture. Signup and view all the answers

What is the result of an organization having an ethical leader?

Enhanced employee satisfaction and commitment. Signup and view all the answers

What can be a consequence of a lack of ethical leadership?

Normative myopia, or ignoring ethical considerations. Signup and view all the answers

What is a key principle of ethical decision-making?

Consider the interests of all stakeholders. Signup and view all the answers

What is the underlying assumption of managers who reject the application of normative values in their decision-making processes?

That business decisions are inherently objective and value-free. Signup and view all the answers

Which of the following is a consequence of embracing a fact-value dichotomy in business decision making?

Managerial decisions are made solely based on objective facts. Signup and view all the answers

What is a potential drawback of normative myopia in corporate decision making?

Inadequate consideration of stakeholders' interests. Signup and view all the answers

Which of the following is a characteristic of an organization that prioritizes ethical values in decision making?

A strong sense of social responsibility and stakeholder engagement. Signup and view all the answers

What is a potential consequence of ignoring normative values in business decision making?

Decreased reputation and long-term success. Signup and view all the answers

Study Notes

Ethical Leadership

Ethical decisions are a crucial aspect of leadership, enabling the creation of an ethical culture within an organization.
Leaders have the power to motivate and enforce norms, policies, and viewpoints, thereby influencing the corporate culture and ethical posture.

Characteristics of Ethical Leaders

Ethical leaders consider the interests of all stakeholders in their decision-making process.
They serve as role models for the organization's values.

Misconceptions about Normative Values

Some individuals believe that normative values do not apply to managerial decisions.
Others think that facts and values can be separated in decision-making.
Another misconception is that normative values are outside the realm of business.

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Description

This quiz covers the importance of ethical decisions in leadership, creating an ethical culture, and influencing corporate culture. It assesses the power of leaders to motivate and enforce norms, policies, and viewpoints.