ch007

Student: ___________________________________________________________________________

1.

An organization's reputation reflects the prominence of its brand in the minds of the public and the
perceived quality of its goods and services.
True False

2.

Reputation is a tangible asset that depends heavily on a company's ability to generate trust among its
employees and customers.
True False

3.

Trust is defined as the willingness to be vulnerable to a trustee based on positive expectations about the
trustee's actions and intentions.
True False

4.

Justice reflects the actual fairness of an authority's decision making.

True False

5.

When trust is cognition-based, it means that trust depends on feelings toward the authority that go beyond
any rational assessment.
True False

6.

The importance of trust propensity is most obvious in interactions with family, in which any acceptance
of vulnerability would amount to "blind trust."
True False

7.

Disposition-based trust guides us in the absence of data about a particular authority.

True False

8.

Cognition-based trust is driven by the trustor's faith in human nature.

True False

9.

People gauge the track record of an authority along three dimensions: ability, skills, and knowledge.
True False

10. Ability is defined as the belief that the authority wants to do good for the trustor, apart from any selfish or
profit-centered motives.
True False
11. Integrity is defined as the perception that the authority adheres to a set of values and principles that the
trustor finds acceptable.
True False
12. Affect-based trust is more rational than emotional.
True False
13. Affect-based trust is seen in a select few relationships.
True False
14. Employees gauge procedural justice by asking whether decision outcomes, such as pay, rewards,
evaluations, promotions, and work assignments, are allocated using proper norms.
True False
15. Informational justice reflects the perceived fairness of decision making outcomes.
True False

16. The equity norm is typically judged to be the fairest choice in situations in which the goal is to maximize
the productivity of individual employees.
True False
17. Under the need norm, members of the group are rewarded in identical measures regardless of their
individual productivity levels.
True False
18. Procedural justice is seen to be of enormous importance when outcomes are bad.
True False
19. Procedural justice tends to be a stronger driver of reactions to authorities than distributive justice.
True False
20. Interpersonal justice is fostered when authorities adhere to two particular rules: the justification rule and
the truth rule.
True False
21. Informational justice reflects the perceived fairness of the communications provided to employees from
authorities.
True False
22. Low levels of informational justice can make an organization vulnerable to wrongful termination
claims.
True False
23. Descriptive ethics evolved with scholars in philosophy debating how people ought to act using various
codes and principles.
True False
24. Whistle-blowing occurs when former or current employees expose illegal or immoral actions by their
organization.
True False
25. The four-component model of ethical decision making proposes that as people age and mature, they move
through the preconventional, conventional, and postconventional stages of moral development.
True False
26. All individuals move through the preconventional and conventional stages and finally operate from the
postconventional stage of moral development.
True False
27. In the context of trust and job performance, the ability to focus reflects the degree to which employees
can devote their attention to work, as opposed to engaging in workplace politics or saving themselves
from problems like abuse supervision.
True False
28. Economic exchanges are impersonal and resemble contractual agreements, such that employees agree to
fulfill the duties in their job description in exchange for financial compensation.
True False
29. The legal component of corporate social responsibility argues that the law represents society's
codification of right and wrong and must therefore be followed.
True False
30. Efforts to improve the quality of life in the communities in which organizations work is typically an effort
that comes under the citizenship component of corporate social responsibility.
True False

31. The willingness to be vulnerable to an authority based on positive expectations about the authority's
actions and intentions is called _____.
A. trust
B. morality
C. consensus
D. justice
E. proximity
32. Which of the following reflects the perceived fairness of an authority's decision making?
A. Ethics
B. Justice
C. Morality
D. Corporate social responsibility
E. Trust
33. When employees perceive high levels of _____, they believe that decision outcomes are fair and that
decision-making processes are designed and implemented in a fair manner.
A. risk
B. profit-centered motives
C. social responsibility
D. justice
E. economic exchange
34. _____ reflects the degree to which the behaviors of an authority are in accordance with generally
accepted moral norms.
A. Ethics
B. Justice
C. Competence
D. Trust
E. Morality
35. Which of the following statements is true with regard to trust, justice, and ethics?
A. Justice reflects the actual degree of fairness of an authority's decision making.
B. Reputation of a company is independent of how trustworthy and ethical its practices are.
C. Trust in authorities like the management in a firm depends on two factors: justice and ethics.
D Ethics reflects the degree to which the behaviors of an authority are in accordance with generally
. mandated legal requirements; morals and norms are not a part of ethics.
E. Relationships based on trust are completely free from risks and uncertainties.
36. When trust is rooted in a rational assessment of the authority's trustworthiness, it is called:
A. disposition-based trust.
B. affect-based trust.
C. cognition-based trust.
D. power-based trust.
E. feeling-based trust.
37. _____ refers to a general expectation that the words, promises, and statements of individuals and groups
can be relied upon.
A. Trust propensity
B. Moral judgment
C. Moral awareness
D. Moral intensity
E. Propriety

38. It is argued that _____ represents a sort of "faith in human nature."

A. cognition-based trust
B. trust propensity
C. competence
D. ability
E. rational assessment
39. Ron recently moved into a flat in the Oak Wood apartments. As Ron is at work all day, he has requested
his neighbor to collect his mails. He receives confidential letters and documents regarding work and his
estate. When the mails are given to him, Ron believes that he is the first one to open them. Ron has a high
degree of _____.
A. power-based trust
B. informational justice
C. cognition-based trust
D. moral awareness
E. trust propensity
40. Which of the following is true with regard to trust propensity?
A. The importance of trust propensity is seen interactions with family and friends.
B. Trust propensity is most likely to be seen in people who display cognition-based trust.
C. Trust propensity is a product of both nature and nurture.
D. Trust propensity refers to the use of track records and rational assessments in making decisions.
E. Low trust propensity is ideal as it prevents us from trusting others who are not trustworthy.
41. Just a week into the job at the marketing and advertising division of a company, Alex, Neil, and John
were given the task of creating an advertisement campaign for the company's new product. Alex and
Neil had much trouble with the task and when John volunteered to take it up on their behalf, they readily
agreed. Though they had no idea of John's skills in this area, they felt that John could be trusted to do a
good job. John, who had done a paper on marketing while in college, reviewed numerous articles, studied
the new product thoroughly, and came up with a campaign that received good reviews from his team
leaders.
Which of the following is true with regard to Alex and Neil?
A. Alex and Neil had a high degree of trustworthiness to execute the job they were given.
B. Alex and Neil had high degree of disposition-based trust.
C. Alex and Neil had used a rational assessment to arrive at the conclusion that John would do a good job
with their assignment.
D. Alex and Neil had a high degree of the abilities required for their job at present.
E. Alex and Neil share a mentor-protg relationship with John at present.
42. Just a week into the job at the marketing and advertising division of a company, Alex, Neil, and John
were given the task of creating an advertisement campaign for the company's new product. Alex and
Neil had much trouble with the task and when John volunteered to take it up on their behalf, they readily
agreed. Though they had no idea of John's skills in this area, they felt that John could be trusted to do a
good job. John, who had done a paper on marketing while in college, reviewed numerous articles, studied
the new product thoroughly, and came up with a campaign that received good reviews from his team
leaders.
John's success in creating a good campaign for the new product completely on his own reflects his
_____.
A. social consensus
B. ability
C. proximity
D. trust propensity
E. morality

43. The characteristics or attributes of a trustee that inspire trust are defined as his _____.
A. moral intensity
B. trust propensity
C. propriety
D. trustworthiness
E. ability
44. Cognition-based trust is driven by the:
A. authority's track record.
B. trustor's trust propensity.
C. trustor's intuitive feelings.
D. trustor's affect-based trust.
E. trustor's disposition.
45. _____ is a dimension of trustworthiness, that is defined as the skills, abilities, and the areas of expertise
that enable an authority to be successful in some specific context.
A. Character
B. Benevolence
C. Personality
D. Ability
E. Affect
46. Which of the following dimensions of trustworthiness is defined as the belief that the authority wants to
do good for the trustor, apart from any selfish or profit-centered motives?
A. Affect
B. Competence
C. Benevolence
D. Trust propensity
E. Ability
47. When authorities are perceived as benevolent, it means that:
A. they care for employees, are concerned about their well-being, and feel a sense of loyalty to them.
B. they display hostile verbal and nonverbal behaviors, excluding physical contact.
C. they reward employees for exposing illegal or immoral actions by their organization.
D. they lack a general expectation that the words and promises of employees can be relied upon.
E. they hinder the employees ability to focus which reflects the degree to which employees can devote
their attention to work.
48. _____ defined as the perception that the authority adheres to a set of values and principles that the trustor
finds acceptable.
A. Abuse supervision
B. Competence
C. Ability
D. Integrity
E. Benevolence
49. In the case of _____ trust, we rationally evaluate the strengths and weaknesses of an authority along the
dimensions of ability, integrity, and benevolence.
A. cognition-based
B. mentor-based
C. affect-based
D. emotion-based
E. disposition-based

50. In the case of _____ trust, our trust arises mostly from the emotional feelings we have for the
authority.
A. cognition-based
B. mentor-based
C. affect-based
D. character-based
E. disposition-based
51. Affect-based trust is driven by the _____.
A. authority's track record
B. authority's strengths and weakness
C. trustor's disposition
D. trustor's feelings for the trustee
E. trustor's rational assessment of the trustee
52. Which of the following is true with regard to affect-based trust?
A. Affect-based trust depends completely on the trustor's propensity to trust.
B. Affect-based trust is more rational than emotional.
C. Affect-based trust is independent of any features of the trustee.
D. Affect-based trust is rooted in reason and analysis.
E. Affect-based trust is seen the most commonly seen type of trust.
53. _____ is defined as the dimension of justice that reflects the perceived fairness of decision-making
outcomes.
A. Procedural justice
B. Interpersonal justice
C. Informational justice
D. Distributive justice
E. Restorative justice
54. When employees evaluate outcomes such as pay, rewards, and promotions to determine whether they are
allocated using proper norms, they are applying the _____ type of justice
A. informational
B. procedural
C. distributive
D. interpersonal
E. retributive
55. Danny Locker recently put down his papers after his managers failed to give him a pay rise that he
felt would rightly compensate for his increasing work load. Danny, who had faced this kind of pay
discrimination in the company earlier, finally decided to quit and has begun looking for another job.
Danny's resentment related to his pay reflects the specific lack of _____ in the company that he worked
for.
A. informational justice
B. distributive justice
C. retributive justice
D. procedural justice
E. interpersonal justice
56. The _____ norm is typically judged to be the fairest choice in situations in which the goal is to maximize
the productivity of individual employees.
A. equity
B. equality
C. need
D. standard
E. prescriptive

57. The managers at Pulse, an HR firm, have noticed that the employees are not team players; they are
focused on achieving individual goals and the management seeks to change this attitude of its employees.
The company wants to create a reward system in which all group members would receive exactly the
same grade regardless of their individual productivity levels to promote their ability to work effectively in
groups. Which of the following allocation norms would you recommend for this purpose?
A. Standard norm
B. Consensus norm
C. Equity norm
D. Equality norm
E. Propensity norm
58. Which of the following is an allocation norm under which all group members receive exactly the same
grade on a project regardless of their individual productivity levels?
A. Propensity norm
B. Need norm
C. Equity norm
D. Reciprocity norm
E. Equality norm
59. When organizations protect new employees from committee assignments and other extra activities,
so that they can get their careers off to a productive start, they are using the _____ type of allocation
norms.
A. propensity norm
B. need norm
C. reciprocity norm
D. equity norm
E. equality norm
60. Leo Motors has an HR policy that does not allow its newly hired employees to work on committee
projects or get involved in the union meetings. This is done to ensure that the new employees can
concentrate on their work and do not get distracted with other minor issues. Which of the following
allocation norms has Leo Motors adopted?
A. Standard norm
B. Equity norm
C. Reciprocity norm
D. Need norm
E. Equality norm
61. Which of the following is a rule under the dimension of distributive justice?
A. Justification
B. Bias suppression
C. Equity
D. Respect
E. Voice
62. _____ is defined as a dimension of justice that reflects the perceived fairness of decision-making
processes.
A. Procedural justice
B. Interpersonal justice
C. Informational v
D. Distributive justice
E. Utilitarian justice

63. Safe Heaven Laboratories has a very liberal atmosphere where all employees are welcome to participate
in the decision making process. The company values the feedback and suggestions given by the
employees who in turn are pleased that they are able to express their opinions freely. Which of the
following dimensions of justice is the company promoting by giving its employees voice?
A. Informational justice
B. Procedural justice
C. Distributive justice
D. Interpersonal justice
E. Retributive justice
64. Which of the following is a procedural justice rule?
A. Voice
B. Justification
C. Equality
D. Respect
E. Propriety
65. _____ justice reflects the perceived fairness of the treatment received by employees from authorities.
A. Procedural
B. Interpersonal
C. Informational
D. Distributive
E. Utilitarian
66. Which of the following is an interpersonal justice rule?
A. Truthfulness
B. Consistency
C. Equity
D. Accuracy
E. Propriety
67. Bryan McPhelps, a first-line supervisor at Little Toys, regularly uses abusive and derogatory words
when dealing with his subordinates. Many employees have also heard Bryan refer to specific employees
with inappropriate labels ridiculing their ethnicity, names, or weaknesses. From the scenario, it can be
included that workers at Little Toys lack _____.
A. distributive injustice
B. informational injustice
C. procedural injustice
D. interpersonal injustice
E. restorative injustice
68. Which of the following represent the two interpersonal justice rules?
A. Voice and accuracy
B. Justification and truthfulness
C. Equity and equality
D. Consistency and accuracy
E. Respect and propriety
69. The _____ rule reflects whether authorities refrain from making improper or offensive remarks.
A. propriety
B. justification
C. truthfulness
D. accuracy
E. voice

70. _____ is defined as the sustained display of hostile verbal and nonverbal behaviors, excluding physical
contact.
A. Trust propensity
B. Bias suppression
C. Justification
D. Whistle-blowing
E. Abusive supervision
71. _____ justice reflects the perceived fairness of the communications provided to employees from the
authorities.
A. Interpersonal
B. Informational
C. Procedural
D. Distributive
E. Redistributive
72. Which of the following is an informational justice rule?
A. Truthfulness
B. Consistency
C. Equity
D. Bias suppression
E. Propriety
73. Informational justice is fostered when authorities adhere to the rules of:
A. voice and accuracy.
B. justification and truthfulness.
C. equity and equality.
D. consistency and accuracy.
E. respect and propriety.
74. The _____ rule requires that the decision-making procedures and outcomes that the authorities explain to
employees are honest and candid.
A. propriety
B. respect
C. consistency
D. equity
E. truthfulness
75. Which of the following is an example of especially ethical behaviors?
A. Moral awareness
B. Economic exchange
C. Abuse supervision
D. Legal compliance
E. Whistle-blowing
76. _____ is defined as the process by which employees expose illegal or immoral actions by their
employer.
A. Social exchange
B. Whistle-blowing
C. Abuse supervision
D. Distributive justice
E. Economic exchange

77. Paul McEnroe became a household name after he reported the rampant use of sweatshop labor by a
famous clothes and accessories company that he worked for. Following his allegations, the company had
to pay several million dollars as penalty along with funding rehabilitation programs for the same group of
laborers it was exploiting a few months back. This scenario reflects McEnroe's act of _____.
A. preconventional moral reasoning
B. whistle blowing
C. bias suppression
D. trust propensity
E. abusive supervision
78. The first step in the four-component model of ethical decision making is _____.
A. moral intent
B. moral judgment
C. ethical behavior
D. moral awareness
E. moral identity
79. The last step in the four-component model of ethical decision making is _____.
A. ethical behavior
B. moral awareness
C. moral identity
D. moral intent
E. trust propensity
80. _____ is defined as the authority's act of recognizing that a moral issue exists in a situation or that an
ethical standard or principle is relevant to the circumstance.
A. Ethical behavior
B. Moral judgment
C. Moral intent
D. Trust propensity
E. Moral awareness
81. _____ is defined as the degree to which an issue has ethical urgency.
A. Trust propensity
B. Abuse supervision
C. Moral identity
D. Moral intensity
E. Moral ability
82. Which of the following statements differentiates between moral intensity and moral attentiveness?
A. Moral intensity is an exclusive function of employees, while moral attentiveness must be maintained
by all employees.
BMoral intensity reflects the degree to which one perceives oneself as being a moral person, while moral
. attentiveness reflects to the organization's perception of the moral behavior of its employees.
CMoral intensity captures the degree to which an issue has ethical urgency, while moral attentiveness
. captures the degree to which people chronically perceive and consider issues of morality during their
experiences.
D Moral intensity is measured by its consequences and effect, while moral attentiveness is measured by
. the previous ethical actions and behaviors.
E. Moral intensity is constant across people of different nations, while moral attentiveness changes from
one society to another.
83. The second step in the four-component model of ethical decision making is _____.
A. ethical behavior
B. moral identity
C. moral intent
D. moral awareness
E. moral judgment

84. Which of the following is a feature of moral development at the pre-conventional stage?
A. Right versus wrong is referenced to the expectations of one's family and one's society.
B. Concepts such as doing one's duty and maintaining the social order come to be valued for their own
sakes.
C. People come to emphasize the laws, rules, and orders that govern society.
D. Right versus wrong is referenced to a set of defined, established moral principles.
E. Morality is practiced to avoid punishment regardless of any concern about moral order.
85. Moral development at the conventional stage is characterized by:
A. an emphasis on laws, rules, and orders that govern society.
B. self-interest and a lack of loyalty, gratitude, or fairness.
C. a set of defined, established moral principles.
D. specific principles like utilitarianism and egoism.
E. the desire to obtain pleasure and avoid pain regardless of any concern about moral order.
86. At the postconventional stage of moral development, right versus wrong is established on the basis
of:
A. consequences of various actions for the individual himself.
B. expectations of one's family and one's society.
C. stereotypes about what is considered right.
D. laws, rules, and orders that govern society.
E. a set of defined, established moral principles.
87. An act is morally right if it results in the greatest amount of good for the greatest number of people
according to the principle of _____.
A. egoism
B. ethics of rights
C. ethics of duties
D. virtue of ethics
E. utilitarianism
88. Which of the following specific principles considers an act to be morally right if the decision maker
freely decides to pursue either short-term or long-term interests?
A. egoism
B. ethics of rites
C. ethics of rights
D. ethics of duties
E. virtue of ethics
89. According to the specific principle of _____, an act is considered to be morally right if it allows the
decision maker to lead a "good life" by adhering to virtues like wisdom, honesty, courage, friendship,
mercy, loyalty, modesty, and patience.
A. ethics of rights
B. ethics of duties
C. egoism
D. virtue of ethics
E. utilitarianism
90. _____ is third step in the four-component model of ethical decision making which reflects an authority's
degree of commitment to the moral course of action.
A. Moral attentiveness
B. Moral awareness
C. Moral intensity
D. Moral judgment
E. Moral intent

91. _____ is defined as the degree to which a person sees himself as a "moral person."
A. Moral judgment
B. Moral identity
C. Trust propensity
D. Moral awareness
E. Moral intensity
92. _____ is defined as the degree to which employees can devote their attention to work, as opposed to
perpetrating or being victimized by office politics.
A. Moral intensity
B. Ability to focus
C. Moral awareness
D. Moral judgment
E. Trust propensity
93. Which of the following has been proven in research studying the impact of stress on performance and
commitment?
A. Trust has a strong positive effect on performance.
B. Trust has no effect on citizenship behavior.
C. Trust makes employees less likely to engage in counterproductive behaviors.
D. Trust has a strong positive relationship with continuance commitment.
E. Trust has a weak positive correlation with affective and normative commitment.
94. Research has shown that trust does NOT share a positive correlation with _____.
A. job performance
B. affective commitment
C. normative commitment
D. continuance commitment
E. task performance
95. Employees who do not trust their authorities have _____ relationships that are based on narrowly defined,
quid pro quo obligations.
A. emotional
B. social exchange
C. affect-based trust
D. mutually committed
E. economic exchange
96. Which of the following is a feature of economic exchange relationships between organizations and
employees?
A. Explicit repayment schedule
B. Open-ended job demands
C. Affective and normative organizational commitment
D. Vaguely defined obligations
E. Mutual investment
97. As trust increases between employees and their authorities, _____ relationships develop that are based on
vaguely defined obligations that are open-ended and long-term in their repayment schedule.
A. cognition-based trust
B. social exchange
C. disposition-based trust
D. economic exchange
E. contractual

98. Which of the following is a feature of social exchange relationships between organizations and
employees?
A. Narrow definition of work demands
B. Explicit repayment schedule
C. Advance knowledge of occupational obligations
D. Impersonal and contractual
E. Mutual investment
99. _____ is a perspective that acknowledges that the responsibility of a business encompasses the economic,
legal, ethical, and citizenship expectations of society.
A. Corporate social responsibility
B. Social exchange theory
C. Rational choice and responsibility
D. Consequentialist egosim
E. Predicted outcome value theory
100.Fulfilling the legal component of corporate social responsibility suggests that the organization has
reached the _____ of moral development.
A. pre-conventional level
B. principled level
C. post-conventional level
D. conventional level
E. pre-operational level
101.While fulfilling the ethical component of corporate social responsibility, an organization does what is
right, just, and fair. This suggests that the organization has reached the _____ of moral development.
A. pre-conventional level
B. principled level
C. pre-operational level
D. conventional level
E. post-conventional level
102.Which of the following is a unique feature of the citizenship component of corporate social
responsibility?
A. It demands that organizations follow the prescribed ethical codes for their business.
B. It proposes that law represents society's codification of right and wrong and must therefore be
followed.
C It ensures legal compliance so that a company's reputation is protected against allegations like violation
. of intellectual property rights or labor laws.
D. It argues that organizations should contribute resources to improve the quality of life in the
communities in which they work.
E. It represents the conventional level of moral development.
103.Tina and her sister Rita work for the Central Park library. Rita recently found out that her sister has
been issuing free membership cards to her friends. This caused a significant dip in the membership fee
account. Tina would lose her job if the management found out.
Define trust. Briefly explain the relationship between trust, justice, and ethics.

104.Carol a fresher out of college has got her first job at Leo Motors. Many of her friends would now be her
colleagues and competition. Carol is concerned about the various issues she could face at work. Illustrate
and briefly explain the factors that influence trust levels.

105.What is trustworthiness? Explain how employees can gauge the "track record" of their supervisors.

106.How can employees evaluate the fairness of an authority's decision making?

107.What are the rules under procedural justice that serve to create equal employment opportunity?
Explain.

108.Describe interpersonal justice and its significance. Explain the two rules that foster interpersonal
justice.

109.What is moral intensity? Briefly explain the factors that drive moral intensity.

110.Discuss how relationships based on the economic and social exchange play an important role in the
employee-authority relationships.

111.Differentiate between the ethical and legal components of corporate social responsibility.

ch007 Key
1. (p. 200) TRUE
2. (p. 200) FALSE
3. (p. 200) TRUE
4. (p. 201) FALSE
5. (p. 202) FALSE
6. (p. 203) FALSE
7. (p. 204) TRUE
8. (p. 205) FALSE
9. (p. 205) FALSE
10. (p. 205) FALSE
11. (p. 205) TRUE
12. (p. 206) FALSE
13. (p. 206) TRUE
14. (p. 208) FALSE
15. (p. 208) FALSE
16. (p. 208) TRUE
17. (p. 208) FALSE
18. (p. 210) TRUE
19. (p. 210) TRUE
20. (p. 210) FALSE
21. (p. 211) TRUE
22. (p. 212) TRUE
23. (p. 213) FALSE
24. (p. 213) TRUE
25. (p. 218) FALSE
26. (p. 218-219) FALSE
27. (p. 221) TRUE
28. (p. 222) TRUE
29. (p. 223) TRUE
30. (p. 224) TRUE
31. (p. 200) A
32. (p. 201) B
33. (p. 201) D
34. (p. 201) A
35. (p. 201) C
36. (p. 202) C

37. (p. 203) A

38. (p. 203) B
39. (p. 203) E
40. (p. 203) C
41. (p. 203) B
42. (p. 205) B
43. (p. 204) D
44. (p. 205) A
45. (p. 205) D
46. (p. 205) C
47. (p. 205) A
48. (p. 205) D
49. (p. 205) A
50. (p. 206) C
51. (p. 206) D
52. (p. 206) C
53. (p. 208) D
54. (p. 208) C
55. (p. 208) B
56. (p. 208) A
57. (p. 208) D
58. (p. 208) E
59. (p. 208) B
60. (p. 208) D
61. (p. 208) C
62. (p. 208) A
63. (p. 208-209) B
64. (p. 209) A
65. (p. 210) B
66. (p. 210) E
67. (p. 210) D
68. (p. 210) E
69. (p. 210) A
70. (p. 210) E
71. (p. 211) B
72. (p. 211) A
73. (p. 211) B
74. (p. 211) E

75. (p. 213) E

76. (p. 213) B
77. (p. 213) B
78. (p. 213) D
79. (p. 213) A
80. (p. 213) E
81. (p. 214) D
82. (p. 214-215) C
83. (p. 217) E
84. (p. 218) E
85. (p. 218) A
86. (p. 218) E
87. (p. 218) E
88. (p. 218) A
89. (p. 218) D
90. (p. 219) E
91. (p. 220) B
92. (p. 221) B
93. (p. 222) C
94. (p. 222) D
95. (p. 222) E
96. (p. 222) A
97. (p. 222) B
98. (p. 222) B
99. (p. 223) A
100. (p. 223) D
101. (p. 224) B
102. (p. 224) D
103. (p. 201) Trust is defined as the willingness to be vulnerable to an authority based on positive expectations about the authority's actions and
intentions. Issues of trust are intertwined with two related concepts. Justice reflects the perceived fairness of an authority's decision making. Ethics
reflects the degree to which the behaviors of an authority are in accordance with generally accepted moral norms. For an organization's employees
to display ethical behavior, the organization should ensure that it is meeting the employee's expectations regarding trust, justice, and ethics. It must
also ensure that employees develop trust in the organization so as to elicit their long-term commitment to the company. This would also stop them
from taking any steps that hamper the company.
104. (p. 204) Trust is rooted in different kinds of factors. Sometimes trust is disposition-based, meaning that your personality traits include a general
propensity to trust others. Sometimes trust is cognition-based, meaning that it is rooted in a rational assessment of the authority's trustworthiness.
Sometimes trust is affect-based, meaning that it depends on feelings toward the authority that go beyond any rational assessment. As a new
employee Carol is likely to be cautious and display cognition-based trust, at first (unless she has a high propensity to trust people as in the case of
disposition-based trust). With time, if Carol views the company's policies and people as trustworthy, she may develop a high level of organization
commitment and display affect-based trust toward the company, managers, and colleagues.

105. (p. 205) An authority's trustworthiness is defined as the characteristic or attributes of a trustee that inspire trust. At some point, our trust begins
to be based on cognitions we've developed about the authority, as opposed to our own personality of disposition. In this way, cognition-based
trust is driven by the authority's "track record". Research suggests that we gauge the track record of an authority along three dimensions: ability,
character and benevolence. The first dimension of trustworthiness is ability, defined as the skills, abilities, and areas of expertise that enable an
authority to be successful in some specific area. The second dimension of trustworthiness is benevolence, defined as the belief that the authority
wants to do good for the trustor, apart from any selfish or profit-centered motives. The third dimension of trustworthiness is integrity, defined as
the perception that the authority adheres to a set of values and principles that the trustor finds acceptable.
Informational justice reflects the perceived fairness of the communications provided to employees from authorities. Informational justice is
fostered when authorities adhere to two particular rules. The justification rule mandates that authorities explain decision-making procedures and
outcomes in a comprehensive and reasonable manner, and the truthfulness rule requires that those communications be honest and candid.
Interpersonal justice reflects the perceived fairness of the treatment received by employees from authorities. Interpersonal justice is fostered
when authorities adhere to two particular rules. The respect rule pertains to whether authorities treat employees in a dignified and sincere manner,
and the propriety rule reflects whether authorities refrain from making improper or offensive remarks.
Procedural justice reflects the perceived fairness of decision-making processes. Procedural justice is fostered when authorities adhere to rules of
fair process. One of those rules is voice, or giving employees a chance to express their opinions and views during the course of decision making. A
related rule is correctability, which provides employees with a chance to request an appeal when a procedure seems to have worked ineffectively.
Distributive justice reflects the perceived fairness of decision making outcomes. Employees gauge distributive justice by asking whether decision
outcomes, such as pay, rewards, evaluations, promotions, and work assignments, are allocated using proper norms.
106. (p. 208) Employees evaluate the fairness of an authority's decision making along four dimensions of justice; these are explained below.

107. (p. 209) The various rules under procedural justice are explained below. The first rule is that of voice, or giving employees a chance to
express their opinions and views during the course of decision making. A related rule is correctability, which provides employees with a chance to
request an appeal when a procedure seems to have worked ineffectively. Aside from voice and correctability, procedural justice is fostered when
authorities adhere to four rules that serve to create equal employment opportunity. The consistency, bias suppression, representativeness, and
accuracy rules help ensure that procedures are neutral and objective, as opposed to biased and discriminatory. These sorts of procedural rules are
relevant in many areas of working life. As one example, the rules can be used to make hiring practices fairer by ensuring that interview questions
are unbiased and asked in the same manner across applications.
108. (p. 210) Interpersonal justice reflects the perceived fairness of the treatment received by employees from authorities. Interpersonal justice
is fostered when authorities adhere to particular rules. The respect rule pertains to whether authorities treat employees in a dignified and sincere
manner, and the propriety rule reflects whether authorities refrain from making improper or offensive remarks.
109. (p. 214) Moral intensity captures the degree to which the issue has ethical urgency. Moral intensity is driven by six factors. The six factors are:
magnitude of consequences; probability of effect; temporal immediacy; concentration of effect; social consensus; and proximity.
110. (p. 222) The employee-authority relationships in organizations can take on many forms. Employees who don't trust their authorities have
economic exchange relationships that are based on narrowly defined, quid pro quo obligations that are specified in advance, and have an explicit
repayment schedule. On the contrary, social exchange relationships are characterized by vaguely defined obligations that are open-ended and
long term in their repayment schedule. Economic exchanges are impersonal and resemble contractual agreements, such that employees agree to
fulfil the duties in their job description in exchange for financial compensation. On the other hand, social exchanges are characterized by mutual
investment, such that employees agree to go above and beyond their duties in exchange for fair and proper treatment by authorities.
111. (p. 223) First, the legal component of corporate social responsibility argues that the law represents society's codification of right and wrong
and must therefore be followed, while the ethical component of corporate social responsibility argues that organizations have an obligation to do
what is right, just, and fair and to avoid harm. Second, fulfilling the legal component speaks of the integrity of the organization and suggests that
it has reached the conventional level of moral development. On the other hand, fulfilling the ethical component is relevant to the benevolence and
integrity of the organization and suggests that it has reached the principled level of moral development.

ch007 Summary
Category
AACSB: Analytic
AACSB: Ethics
AACSB: Reflective Thinking
Blooms: Analyze
Blooms: Apply
Blooms: Remember
Blooms: Understand
Colquitt - Chapter 07
Difficulty: 1 Easy
Difficulty: 2 Medium
Difficulty: 3 Hard
Learning Objective: 07-01 What is trust; and how does it relate to justice and ethics?
Learning Objective: 07-02 In what three sources can trust be rooted?
Learning Objective: 07-03 What dimensions can be used to describe the trustworthiness of an authority?
Learning Objective: 07-04 What dimensions can be used to describe the fairness of an authoritys decision making?
Learning Objective: 07-05 What is the four-component model of ethical decision making?
Learning Objective: 07-06 How does trust affect job performance and organizational commitment?
Learning Objective: 07-07 What steps can organizations take to become more trustworthy?
Topic: Application: Social Responsibility
Topic: How Important Is Trust?
Topic: Trust, Justice, and Ethics
Topic: Why Are Some Authorities More Trusted Than Others?

# of Questions
54
46
11
7
8
63
33
111
22
79
10
10
11
17
39
17
10
7
6
11
10
84