The 2001 Collapse of Enron,resulting in One of the Biggest

question 2

Multiple Choice

The 2001 collapse of Enron,resulting in one of the biggest bankruptcies in U.S.history,demonstrates that:

• A) An organization may have a mission statement promoting ethical behavior, but it must have strong organizational values to guide the behavior of employees.
• B) Employees observe managerial behavior and tend to follow it.
• C) Having strong ethical values inside an organization is important for long-term success.
• D) All of these.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational factors.

Defensive Attribution

A psychological process by which individuals tend to ascribe greater blame to the victims of misfortune for their own victimization when they feel threatened by the likelihood of a similar event happening to them.

Observational Learning

A learning process through which behaviors, attitudes, or skills are acquired by watching and imitating the actions of others.

Classical Conditioning

A method of learning through which a response is cultivated by the combination of a stimulus found in the environment and one that naturally exists, leading to a behavioral response.