- Creating competition between employees within the corporation:
A. can encourage employees to deceive customers.
B. should focus on improving corporate profit.
C. must be ignored when corporate ethics are developed.
D. can bring out the best in employees.
The text refers to the Sears experience in automotive repairs. The emphasis on meeting sales quotas created an environment that led employees to deceive their customers.
- Following an ethics-based approach to decision making will normally lead to higher:
A. profits.
B. trust and cooperation.
C. prices.
D. employee turnover.
- Following an ethics-based approach to decision making will normally lead to:
A. higher profits.
B. lower employee turnover.
C. lower prices.
D. more competition.
- The Hum-dinger Corporation recently instituted a corporate ethics code. The president of the company realizes that ethical relationships are based on:
A. fairness and honesty.
B. strict penalties for illegal activities.
C. a full-time compliance officer monitoring employee behavior.
D. watchdogs and whistleblowers.
The correct answer and explanation is:
1. Creating competition between employees within the corporation:
Correct Answer: D. can bring out the best in employees.
Explanation: In many organizations, creating healthy competition can stimulate performance and innovation. When employees compete, they often push themselves to perform better, try new ideas, and aim to achieve higher productivity. In some cases, competition can also foster a sense of teamwork, as employees may collaborate to win together. However, in some circumstances, such as when incentives are poorly structured, competition can lead to negative behaviors like dishonesty and unethical practices. For example, as in the case with Sears in automotive repairs, when employees are pressured to meet sales quotas, they may engage in deceptive practices to meet their targets. However, when competition is rooted in ethical principles, it can lead to better outcomes and higher quality work.
2. Following an ethics-based approach to decision making will normally lead to higher:
Correct Answer: B. trust and cooperation.
Explanation: Ethics-based decision-making focuses on fairness, respect, transparency, and doing what is right. By applying ethical principles in corporate decision-making, organizations build trust among stakeholders, including customers, employees, and shareholders. Trust is crucial for long-term success because it encourages cooperation, loyalty, and positive relationships. Employees are more likely to collaborate and work together effectively if they know the company values honesty and integrity. This leads to a more harmonious workplace, where people are committed to common goals. Ethical behavior is also associated with customer loyalty, as customers are more likely to return to businesses they trust.
3. Following an ethics-based approach to decision making will normally lead to:
Correct Answer: B. lower employee turnover.
Explanation: When a company consistently makes decisions based on ethics, it creates a positive workplace culture that values transparency, respect, and fairness. Employees are more likely to stay with an organization that aligns with their personal values and treats them with fairness. Ethical workplaces also tend to have lower levels of stress and conflict, which contributes to higher employee satisfaction. This can ultimately result in lower employee turnover because employees feel respected, valued, and proud to work for the organization.
4. The Hum-dinger Corporation recently instituted a corporate ethics code. The president of the company realizes that ethical relationships are based on:
Correct Answer: A. fairness and honesty.
Explanation: Ethical relationships in business rely heavily on the principles of fairness and honesty. These values ensure that employees, customers, and other stakeholders are treated with respect and integrity. Fairness involves equal treatment and providing opportunities for all parties involved, while honesty ensures transparency in actions and decisions. In contrast to relying solely on strict rules, penalties, or surveillance (such as a compliance officer or whistleblowers), ethical relationships are built on these fundamental principles. When fairness and honesty are prioritized, a company can foster trust, cooperation, and positive interactions, which contribute to long-term business success.