1. Unhealthy company cultures typically have such characteristics as

A. an aversion to bold strategies and aggressive pursuit of sustainable competitive advantage, a preference for rapid revenue growth even if it means some sacrifice of profitability, an unwillingness to spend more on environmental protection than is required by law and/or by regulators, and a lax approach to adopting best practices.

B. no statement of core values, a weak commitment to high ethical standards, an unwillingness to devote more than a token amount of company resources to a social responsibility strategy, a strong preference for hiring managers from outside the company, and an aversion to risky strategies (even if there is a prospect of a big profit payoff).

C. tight budget controls, strict enforcement of policies and procedures, close monitoring of employee work habits during job hours, close supervision of worker activities, and a wariness of setting stretch objectives.

D. a politicized internal environment, hostility to change, an insular thinking and an inward focus, a low regard for ethical behavior, unethical and greed-driven behaviors, and/or incompatible, clashing subcultures.

E. an aversion to empowering employees, a multilayered management bureaucracy, more resource weaknesses than resource strengths, a willingness to take big risks, a strong preference for being a late mover, and a thick manual of policies and procedures.

2. Which one of the following are typical characteristics of a weak company culture?

A. No code of ethics and deep hostility to change and to people who champion new ways of doing things

B. A lack of widely-shared and strongly-held values, principles, and behavioral norms

C. Decentralized decision-making, the presence of several entrenched subcultures, an anti-union bias among many employees, and strong resistance to new or different operating practices

D. No strong sense of teamwork, strong opposition to benchmarking, the use of best practices, and frequent strategy changes

E. Strictly-enforced policies and procedures, the presence of clashing subcultures, weak ethical standards, and a preference for the status quo

3. Which one of the following statements about the role and influence of a company's core values and ethical standards on its culture is false or inaccurate?

A. Once established, company cultures can be embedded and perpetuated by having senior managers frequently reiterate core values, ethical standards, and the desired cultural behaviors in daily conversations, at company events, and in intracompany communications.

B. A company that works hard at putting its stated core values and ethical principles into practice fosters a work climate where company personnel share common and strongly held convictions about how the company's business is to be conducted.

C. A company's stated values and ethical principles provide company personnel with guidance about the manner in which they are to do their jobs--what behaviors and ways of doing things are approved (and expected) and which are out-of-bounds.

D. A company's culture can be more deeply ingrained by making the display of core values and ethical standards a factor in evaluating each person's job performance, granting compensation increases, and deciding who to promote.

E. A company's values statement and code of ethics are particularly valuable in creating a culture and work climate that prevents company personnel from engaging in unethical or socially irresponsible conduct that tarnishes a company's public image and puts its financial performance and market standing at risk.