Test Your Knowledge of Organizational Ethics and Reputation Management

The repeat-prescription effect means that the more ethical an organization becomes, the longer it continues with the same way of managing ethics, until this becomes outdated. This may lead to unethical behavior in organizations when the unchanging way of managing ethics becomes less effective in preventing, detecting, and responding to unethical behavior.

The concept of organizational inertia applies to the ethical development of organizations because the more successful an organization’s management of ethics is, the less likely will the organization change it, even when new stakeholders, new issues, and new ethical risks may require changes in the ethics program of an organization.

The paradox of the repeat-prescription effect is that what once worked well to improve the ethics of an organization is the very thing that leads to its deterioration, thus making unethical behavior in the organization more likely.

<p>The keeping-up appearances effect means that the more ethical an organization becomes, the more the defects in the organization are disapproved of and thus, hidden, until they cannot stay hidden anymore. As the ethical level of an organization increases, so do the pressure and tendency for the organization to maintain its ethical reputation and keep up appearances.</p> Signup and view all the answers

<p>The halo tax, as described by McDonnell and King, refers to the influence of prestige on audience evaluations by shaping expectations. As a result, organizations with higher reputations are judged more harshly for transgressions, which can lead to unethical behavior being hidden to maintain the ethical reputation.</p> Signup and view all the answers

<p>Reputation has a social control function because the more stakeholders consider an organization to be ethical, the higher their expectations and disapproval when unethical behavior is discovered. However, this can also lead to unethical behavior being hidden to maintain the ethical reputation, which can lead to cover-ups and even more unethical behavior.</p> Signup and view all the answers

<p>High performing employees may face higher expectations from their stakeholders to stay at this level, which may lead to these stars becoming more self-interested.</p> Signup and view all the answers

<p>Social psychological theories of status can be useful in explaining the keeping-up appearances effect because they suggest that the more an organization is perceived as ethical, the more its members are motivated to maintain their status, which can lead to the hiding of defects and unethical behavior.</p> Signup and view all the answers

<p>The forward force is the belief that when something goes well, it should remain well. This can relate to the ethical development of organizations because the more successful an organization’s management of ethics is, the less likely the organization will change it, even when new stakeholders, new issues, and new ethical risks may require changes in the ethics program of an organization.</p> Signup and view all the answers

<p>The ethical reputation of an organization can increase the risks of unethical behavior because it can lead to the hiding of defects and unethical behavior to maintain the ethical reputation, which can lead to cover-ups and even more unethical behavior. Additionally, the higher the reputation, the higher the expectations and disapproval when unethical behavior is discovered.</p> Signup and view all the answers