Business Ethics - Ethical Breakdowns

What is the primary reason corporate leaders fail to notice unethical behavior in their organizations?

• Lack of ethics training

• Ethical blindness caused by cognitive biases

• Intentional corruption

• Inadequate rules and regulations

What phenomenon occurs when individuals ignore the moral implications of a decision and view it purely as a business one?

• Ethical fading

• Moral disengagement

• Ethical leadership

• Conflict of interest

What led to the unethical decision-making process in the case of Ford Pinto?

• Intentional disregard for safety

• Lack of regulations

• A cost-benefit analysis that overlooked ethical considerations

• Pressure from consumer safety organizations

Which cognitive bias explains why people fail to see unethical behavior when it benefits them?

• Overvaluing outcomes

• Motivated blindness

• The slippery slope

• Indirect blindness

In the case of Sears, what was the unintended consequence of setting a sales target for mechanics?

• Increased repair speed

• Honest reporting

• Overcharging and unnecessary repairs

• Improved customer satisfaction

What is the term for when unethical actions are outsourced to third parties, making them harder to recognize?

• Ethical fading

• Conflict of interest

• Slippery slope

• Indirect blindness

How did the credit rating agencies contribute to the 2008 financial crisis?

• By providing objective ratings

• By issuing lower-than-expected ratings

• By having conflicts of interest with companies they rated

• By rejecting risky securities

Which psychological phenomenon explains why gradual erosion of ethical standards goes unnoticed?

• Slippery slope

• Ethical fading

• Motivated blindness

• Indirect blindness

What was one of the main causes of unethical behavior during the financial crisis under President Bill Clinton's administration?

• Paper-thin down payments for mortgages

• Increasing interest rates

• Lack of homeownership incentives

• Strong lending standards

What is a critical mistake managers make when judging employee performance?

• Focusing on the process rather than the outcome

• Punishing employees for ethical behavior

• Rewarding employees who report unethical behavior

• Rewarding good outcomes without considering the ethics of the decision-making process