CEA Ethical Leadership Development 3 — Questions and Answers
Question 1: An ethical leader notices that a company policy inadvertently disadvantages a minority group. The best course of action is to:
- Enforce the policy as written regardless of impact
- Apply the policy selectively based on personal judgment
- Document the disparate impact and advocate for policy review (Correct answer)
- Ignore the issue since the policy was not intentionally discriminatory
Correct answer: Document the disparate impact and advocate for policy review
Ethical leaders are responsible for identifying and addressing unintended harms, even when a policy was not designed to discriminate.
Question 2: Which ethical framework focuses on a leader's duty to act according to universal principles regardless of outcomes?
- Utilitarianism
- Virtue ethics
- Deontological ethics (Correct answer)
- Consequentialism
Correct answer: Deontological ethics
Deontological ethics, associated with Kant, holds that actions must conform to duties and universal moral rules independent of their consequences.
Question 3: A leader in a cross-cultural team discovers that what is considered acceptable gift-giving in one culture is viewed as bribery in their home country. The ethical approach is to:
- Allow the practice since it is culturally accepted by the giver
- Apply the stricter standard and clearly communicate the reasoning (Correct answer)
- Adopt the most permissive standard to avoid cultural offense
- Ignore the issue because it involves external parties
Correct answer: Apply the stricter standard and clearly communicate the reasoning
When cultural practices conflict with legal or ethical standards, leaders should apply the more rigorous standard and explain it respectfully.
Question 4: The concept of 'servant leadership' is best associated with which ethical principle?
- Maximizing shareholder value above all else
- Prioritizing the growth and well-being of followers over the leader's own interests (Correct answer)
- Enforcing strict hierarchy to maintain order
- Focusing on personal achievement as a model for others
Correct answer: Prioritizing the growth and well-being of followers over the leader's own interests
Servant leadership, developed by Robert Greenleaf, emphasizes putting the needs of followers first as the primary ethical obligation of a leader.
Question 5: When developing an organizational ethics program, which element is considered foundational?
- Establishing punitive measures for all violations
- Creating a code of ethics aligned with core organizational values (Correct answer)
- Outsourcing ethics training to third-party vendors
- Publishing annual ethics reports for shareholders
Correct answer: Creating a code of ethics aligned with core organizational values
A code of ethics that reflects core values provides the foundational framework from which all other ethics program elements derive.
Question 6: A leader must choose between laying off 10% of staff to save the company or keeping all employees while risking eventual bankruptcy. This scenario is best described as:
- A compliance issue requiring legal counsel only
- An ethical dilemma with competing legitimate moral obligations (Correct answer)
- A situation where one option is clearly right and one clearly wrong
- A financial decision with no ethical dimension
Correct answer: An ethical dilemma with competing legitimate moral obligations
An ethical dilemma exists when two or more values or obligations conflict and no option is entirely without moral cost.
Question 7: Which behavior by a leader most effectively builds a speak-up culture?
- Promising anonymity but rarely acting on reported concerns
- Responding constructively and visibly when employees raise ethical concerns (Correct answer)
- Limiting speak-up channels to reduce noise
- Rewarding only concerns that turn out to be valid
Correct answer: Responding constructively and visibly when employees raise ethical concerns
Leaders build speak-up cultures by demonstrating through action that raising concerns leads to genuine, visible follow-through.
CEA Ethical Leadership Development 3
An ethical leader notices that a company policy inadvertently disadvantages a minority group.
The best course of action is to: