1. During its 100-year history, a company departed from its founder's original values. Over time, leaders became more and more focused on the bottom line and less committed to operating with integrity. This led to a toxic organizational culture that encouraged doing whatever it took to secure sales.

Which of the following statements does this scenario support?

a. An ethical corporate culture can under no circumstances be maintained through effective leadership.

b. An ethical corporate culture must be maintained through effective leadership at all times during the firm's existence.

c. Top managers do not need to express desired ethical behaviors and goals because corporate culture is static and does not change.

d. It is enough to start with strong ethical leadership and corporate values in the beginning.

2. Rob, the founder of a home cleaning franchise, has had years of training, experience, and learning other best practices of leadership. Rob models organizational values both in his day-to-day activities and in his interactions with company employees. A venture capitalist wanted to buy the cleaning company, but because they did not reflect the company's high standards for ethics and integrity, Rob turned down the multi-million-dollar opportunity. Because there are such big decisions to be made about the future of his franchise, Rob tends to make decisions by himself. Now that he has a growing network of franchisees, he recently established a hotline for reporting ethical misconduct. Although he appears to be an ethical leader, which ethical requirement does Rob fail to meet in this scenario?

a. Rob does not place what is best for the organization over his own interests.

b. Rob does not model organizational values.

c. Rob has not established reporting mechanisms.

d. Rob operates in a silo.

3. Janeena's Jams, a small condiment company, had operated successfully for many years without experiencing ethical misconduct or an ethical disaster. Janeena's Jams is now experiencing a surge of growth after being featured on a popular reality TV series. The company has quickly grown from a team of three to a company of 50 individuals. Though the pay is good, workers are not committed to the company. When Janeena, the owner, decides to sell the business to an investor, the investor pledges to appoint an ethical leader. How will Janeena's Jams likely be affected by ethical leadership?

a. The company's relationships with external stakeholders will be damaged.

b. There may be a higher level of employee commitment within the company.

c. The company's competitive advantages will be weakened.

d. Employees will be discouraged from acting in an ethical manner in their day-to-day work environment.

4.

Rahul was excited to meet his new boss Bella, but he immediately knew there was something off about her. She was passionate about the company's mission and was outgoing, but her charm seemed superficial. One day Rahul mentioned to Bella that he was overwhelmed by his workload, but she showed no empathy and told him to just work harder. Which type of leader is Bella in this scenario?

a. Unethical

b. Psychopathic

c. Apathetic

d. Eclectic

5.

Mallory, a car salesperson, has two cars for sale, a Toyota and a Kia. The Toyota is rated higher in quality than the Kia but is priced the same. Mallory's manager says if she sells the Kia, he will give her a higher rate of commission, so Mallory spends the day trying to sell the Kia. Which type of power does Mallory's manager demonstrate in this scenario?

a. Expert power

b. Legitimate power

c. Coercive power

d. Reward power