Ethics and Organizational Culture Quiz

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Questions and Answers

What is the primary role of a chief ethics officer in an organization?

To ensure that all employees meet financial targets

To manage the marketing strategies of the company

To handle all customer complaints and grievances

To oversee and coordinate the organization's ethical initiatives (correct)

Which of the following is NOT one of the four ethical norms used to assess ethical behavior?

Rights

Justice

Utility

Competitiveness (correct)

How might discussing the cost and effectiveness of medication influence the doctor-patient relationship?

It may cause patients to feel undervalued and disregarded (correct)

It increases trust and transparency between the doctor and patient (correct)

It pressures the doctor to prescribe more expensive medications

It has no measurable impact on the relationship

Which of the following is a common function of ethics committees within organizations?

To make rulings on ethical dilemmas and enforce disciplinary actions Signup and view all the answers

What could be a consequence of a policy requiring employees to work overtime without additional pay?

Potential burnout and decreased job satisfaction Signup and view all the answers

What primarily initiates the organizational culture within a company?

The founder or early leader's vision and values Signup and view all the answers

Which of the following is NOT typically considered an underlying element of organizational culture?

Observable behaviors of employees Signup and view all the answers

What happens to an organization's values and ideas when they lead to success?

They become institutionalized Signup and view all the answers

How do members of an organization participate in its culture?

By adopting visible artifacts and behaviors Signup and view all the answers

What is a common challenge managers face when implementing new strategies?

Misalignment with basic cultural norms Signup and view all the answers

Which statement best defines organizational culture?

Shared values, norms, and beliefs among members Signup and view all the answers

What key factor influences the communication and coordination mechanisms within an organization?

Founder's initial vision Signup and view all the answers

What can emerge when subcultural values outweigh corporate cultural values?

Conflicts that hurt performance Signup and view all the answers

Which of the following statements about the impact of a strong culture is true?

Strong cultures can be detrimental if they become outdated. Signup and view all the answers

What defines ethical behavior within a social context?

Conformity to accepted social norms Signup and view all the answers

What are individual ethics determined by?

Individual beliefs and social concepts Signup and view all the answers

What does the rule of law consist of?

Codified principles and regulations Signup and view all the answers

Business ethics primarily involve which aspect of behavior?

Employee conduct in professional settings Signup and view all the answers

Managerial ethics concerning behavior toward employees address which of the following?

Hiring, firing, and working conditions Signup and view all the answers

What is an example of both unethical and illegal behavior in hiring?

Discrimination against specific groups Signup and view all the answers

Which factor affects how individuals perceive ethical or unethical behavior?

Personal beliefs and the situation Signup and view all the answers

What is a potential consequence of strong subcultural values within an organization?

Resistance to change and outdated practices Signup and view all the answers

What is primarily influenced by how people and departments are arranged within an organization?

The cultural values emphasized Signup and view all the answers

In a power relationship context within organizations, which factor might determine the influence of finance or engineering personnel?

The formal hierarchy Signup and view all the answers

Which culture focuses on flexibility and change to meet customer needs?

Adaptability culture Signup and view all the answers

What is one key feature of adaptability culture as exemplified by Google?

Valuing innovation and risk-taking Signup and view all the answers

What is an important characteristic of mission culture?

Serving specific customers without the need for rapid change Signup and view all the answers

Which aspect is generally less emphasized in organizations with a strong culture of control?

Employee autonomy Signup and view all the answers

In terms of cultural management, what should top managers prioritize according to the discussion?

Strategy and structure Signup and view all the answers

What is a notable consequence of an adaptability culture within an organization?

Quick response to customer demands Signup and view all the answers

Which of the following does NOT represent a characteristic of power relationships in organizations?

Influence based solely on employee expertise Signup and view all the answers

What ethical issue is primarily involved when a manager pays a worker less than their deserving wage?

Exploitation of power Signup and view all the answers

Which behavior exemplifies a potential ethical breach by an employee?

Calling in sick to relax Signup and view all the answers

What term describes a situation in which there is a conflict between right and wrong based on differing values?

Ethical dilemma Signup and view all the answers

Which of the following is a common practice to prevent ethical issues related to gifts in business transactions?

Policies forbidding acceptance of gifts Signup and view all the answers

In Dr. Ahmed's case, what is the primary concern regarding the more expensive medication?

It creates a financial burden on the patient. Signup and view all the answers

What potential solution could Dr. Ahmed explore to address the patient's financial constraints?

Provide samples of the medication until the patient can afford it. Signup and view all the answers

What kind of ethical ambiguity might a business face in its advertising practices?

Misleading product claims Signup and view all the answers

What role do stakeholders play in the ethical considerations of a business?

They can create pressures that lead to ethical breaches. Signup and view all the answers

Which of the following behaviors does NOT typically raise ethical concerns in an organization's dealings?

Accurate financial disclosures Signup and view all the answers

How can a manager contribute to creating an ethical workplace culture?

By encouraging open communication about ethical dilemmas Signup and view all the answers

Study Notes

Organization Culture & Ethical Values

Organization culture is a shared set of values, norms, beliefs, and understandings that members of an organization learn and adopt as the correct way to think, feel, and behave.
Culture is often unnoticed by those within an organization, but becomes apparent when conflicting strategies or programs are introduced.
Culture shapes how people dress, behave, communicate, and allocate power/status within an organization.
Visible elements of culture include symbols, ceremonies, stories, slogans, behaviors and physical settings.
Underlying aspects of culture include values, beliefs, assumptions and feelings. These are unconscious, and shape the true culture.
Underlying values of many organizations include: openness, collaboration, teamwork, innovation, and constant change.
Organizational culture typically begins with a founder or early leader who articulates and implements particular ideas and values as a vision, philosophy, or business strategy. Successful ideas and values become institutionalized.
Disney's training program is an example of culture standardization. Employees are trained to create a sense of happiness through a specific method of communication.
Organizations have communication mechanisms to transport information and knowledge. Disney is a huge organization comprising theme parks, resorts, business solutions, a retail shop, and Marvel movies.
Culture is important because of internal integration and external adaptation.
- Internal Integration: Members develop a collective identity, understand how to work together effectively understand each other's communication styles, know what behaviors are acceptable, and understand how power and status are allocated.
- External Adaptation: Organizations meet their goals and effectively deal with outside parties (customers, suppliers, etc...).
Strong organizational culture can improve an organization's performance from average to great. Organizations with strong cultures often guide employee decision-making in the absence of formal procedures

Components of Organizational Culture

Rites and Ceremonies: Planned activities that make up a special event and mark important life stages or transitions within the organization.
Stories and Myths: Narratives based on true events about heroes who serve as models. These stories might include fictional embellishments for enhanced impact
Symbols: Objects or actions that represent another thing; physical symbols capture attention, which often symbolizes deeper values.
Organization Structures: The way people are arranged into teams and departments and the type of flexibility and autonomy that people have. This aspect of culture reflects what values an organization prioritizes.
Power Relationships: In some organizations certain groups (e.g., finance) may be more powerful than others (e.g., design or engineering). Power relationships can vary between informal and formal hierarchies.

Types of Organizational Culture

Adaptability Culture: Focuses on the external environment, prioritizing flexibility, change, interpretation of signals to adjust behavior and creativity. (Examples: Google, tech companies)
Mission Culture: Focuses on a stable environment to serve specific customers. Goals are measurable, and emphasis on professionalism and aggressive behavior to achieve sales goals. (Example: Insurance)
Clan Culture: Focuses on employee involvement and participation to create a sense of responsibility and ownership. Emphasis on employee creativity, with opportunities for learning and professional development. (Examples: Retail, fashion)
Bureaucratic Culture: Focuses internally and prioritizes consistency and collaboration among members. Processes are often structured, and effectiveness focused on staying on budget and on time. (Examples: Big manufacturing companies)

Culture Strength

The degree of agreement among members of an organization about the importance of specific organizational values

Subculture

Cultures that reflect the common problems, goals, and experiences that members of teams, departments, or other units share.
Subcultures may include the basic values of the dominant culture + additional values specific to that subculture. Conflicts can arise when subculture values become too strong, surpassing the organizational culture.

Ethics

A code of moral principles and values that governs a person or group's behavior in relation to right and wrong.
Unethical behavior does not conform to generally accepted social norms

Individual Ethics

Ethical and unethical behavior are partly determined by the individual and partly by culture. Ethics vary between individuals and cultures

Societal Environment

History, religion, philosophy, geography, nationality, and societal culture affect societal morality and shape the local environment
Local environment shapes an individual's behavior concerning ethics.

Rule of Law

The codified principles and regulations that describe accepted behavior in society, which are enforceable by courts.

Business Ethics

The ethical or unethical behaviors of employees, in the context of their jobs.

Managerial Ethics

Standards of behavior that guide individual managers in their work, including behavior towards employees, the organization, and other economic agents.
Behavior towards employees can include hiring, firing, wages, and working conditions. This also includes issues of respect and privacy.
Behavior towards the organization includes issues like honesty and confidentiality.
Behavior towards other economic agents can include issues of advertising, financial disclosure, bargaining, purchasing, ordering and other processes.

Ethical Dilemmas

Situations where right and wrong are in conflict.

Case Study: The Prescription Predicament

Dr. Ahmed is faced with prescribing a relatively expensive medication that could benefit Adham, the patient. However, the medication is not covered by his insurance.
This creates a dilemma between Dr. Ahmed's responsibility to the patient's health, and his awareness that Adham is on a tight budget.
Questions related to the case study include: how to approach the decision, if there are compromise/alternative solutions, and how communication with the patient might influence the doctor-patient relationship.

Ethics Committee

A cross-functional group of executives that oversees company ethics, providing rulings for questionable issues.
The committee assumes discipline responsibility for wrongdoers.
The committee may assign a specific position for overseeing ethics, as a symbol of the company's commitment

Chief Ethics Officer

Often the head of the ethics department.
Oversight includes ethics training, investigation of ethical issues, and advice about ethical decisions

Ethical Behavior Assessment

Steps involved in assessing ethical behavior include gathering facts, identifying appropriate moral principles, making a judgment about right/wrong, and acting ethically.
Four standards for creating ethical norms are: utility, rights, justice and caring.

Management's obligation to make decisions that contribute to the well-being of all organizational stakeholders (e.g., customers, employees, environment, investors, etc...).
This obligation is reflected in environmental, customer, employee, and investor concerns. Examples of environmental concerns can include reducing air, water, and land pollution. Examples of customer concerns can include regulations like the FTC and FDA.

Obstructionist Stance: Doing the minimum possible to address social or environmental issues and denying wrongdoings.
Defensive Stance: Meeting legal requirements only; admitting to mistakes only as required to avoid legal action.
Accommodative Stance: exceeding legal minimums in social/environmental commitments if requested.
Proactive Stance: seeks opportunities and activities in socially responsible ways

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Description

Test your knowledge on the role of ethics in organizations and the concept of organizational culture. This quiz covers various aspects including the functions of chief ethics officers, ethics committees, and the impact of culture on organizational success. Challenge yourself with questions that delve into ethical norms and managerial challenges.