What Is the Relationship Between Organizational Culture and Business Ethics

question 20

Multiple Choice

What is the relationship between organizational culture and business ethics?

• A) Companies with a strong organizational culture are more likely to have employees with higher ethical standards of behavior.
• B) When companies have a weak organizational culture, employees are more likely to rely on their ethical values to make decisions.
• C) An organization's culture may strengthen ethical values.
• D) Organizational culture can be a source of ethical problems.
• E) An organization's culture may strengthen ethical values AND can be a source of ethical problems.

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Definitions:

Asymmetric Information

One of the parties to a transaction has information relevant to the transaction that the other party does not have.

Adverse Selection

A situation in which asymmetric information results in high-quality goods or high-quality consumers being squeezed out of transactions because they cannot demonstrate the quality of the product they are offering for sale.

Fair Bet

A wager in which the expected value to both parties involved is equal; no side has an advantage.

Standard 52-card Deck

A common set of playing cards used for a variety of games, consisting of four suits with thirteen ranks each.