Exam 5: Ethical Leadership and Corporate Governance

The principles of ethical power are purpose, perspective, patience, and persistence.

The ____________ actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions.

Which of the following is not recognized as one of the six core ethical values that are recommended to guide the behaviors of board members?

From the perspective of _____________, high levels of CEO compensation coincide with the agency theory model of maximizing the returns to the stockholders.

A(n) _______________ leader is one who is focused on creating a positive ethical climate for the firm's employees

Board members can be classified as either _______________.

____________ in boards occur when the board is composed of mainly inside members

The Securities and Exchange Commission in 2004 proposed a code of disclosure that excluded the compensation for the chairman of the board.

The _______________ of ethical power refers to the leader establishing a long term vision for the organization.

Transactional leadership is based on inspirational motivation, idealized influence, individualized considerations and intellectual stimulation.

A(n) ____________ board member is a person who has direct financial ties to the firm.

A(n) _____________ board member is one who does not have any direct financial ties to the firm.

A(n) ______________ leader is a very dangerous position for a manager to establish with other employees within the firm because this leader would have destroyed all three critical traits of a moral person.

The principles of ethical power include all of the following except

In a short essay, define and describe ethical leadership. a. Ethical leadership is the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships and the promotion of such conduct to followers through two-way communication, reinforcement, and decision making. Ethical leadership is the driving force for a firm to have a positive ethical climate with its employees. With a positive ethical climate, employees have a supportive work environment, which leads to higher commitment and job satisfaction of the employees. Ethical leadership reinforces the beliefs of social learning theory that suggests that when the firm has role models for the employees, the employees will try to copy the behavior of the role models. Ethical leadership is demonstrated in the leader's various actions. The ethical commitment of the leader affects the leader's character, which influences the leader's motives and influences strategies. b. Ethical leaders are effective, credible, and legitimate role models to their subordinates. In addition, ethical leaders present a powerful and salient ethical message to subordinates through effective communication and reinforcement. Leaders influence the attitudes, beliefs, and behaviors of employees through either the transactional or the transformational leadership style.

The certifying board actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions.

A weak moral person and weak moral manager would generate a reputation of _____________ leadership.

_______________ can be defined as the system that is used by firms to control and direct their operations and the operations of their representatives, the employees.

The operating board actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions.

In a short essay, describe the following types of leaders based on the combination of moral person and moral manager scenarios: (a) unethical leader, (b) ethical leader, (c) hypocritical leader, and (d) inconsistent leader.