| 2026 UNIT 2 MODULE 1 STUDY GUIDE PERSONAL AND
ORGANIZATIONAL ETHICS ~ WESTERN GOVERNORS
UNIVERSITY.
STUDY GUIDE:
Lesson 1: Personal versus As you read the lesson, answer the following questions in your own words.
Organizational Ethics
Define ethics. Principles that serve as a compass about how to behave
Define legal. An act that is allowed or is in conformity with the law of the land
Provide an example for each of ● Legal-Ethical: A company donating a pair of shoes for every pair that is
the following: bought
● Legal-Unethical: Moving company labor overseas and making the
legal-ethical
workers work in unsafe, yet legal in-country, conditions
legal-unethical ● Illegal-Ethical Conflicts: A judge not convicting a marajana possession
illegal-ethical conflicts charge where it is illegal, because they personally think it is not harmful
and should be legal.
Define values. Stable life goals that people have that reflect what is most important to them
Define morals. Rules people develop as a result of cultural norms and values and are,
traditionally passed down through generations and characterize a cultural
group
Define organizational ethics. Rules, principles, and standards for deciding what is morally right or wrong
when doing business
List the four main levels of 1. Societal issues
ethical issues and provide an a. Issues that affect the world as a whole. Including pollution,
emissions, greenhouse gases, etc.
example of each.
2. Stakeholder issues
a. Concerns policies that affect its customers, employees,
suppliers, and people within the community. Including
polluting communities around warehouses, irregularities in
quality of product, etc.
3. Internal policy issues
a. Concerns internal relationships between a company and its
employees. Includes paying employees, company policies, etc.
4. Personal issues
a. Concerns how people treat others in their organization. Includes
gossiping, taking credit for others work, etc.
Lesson 2: The Impact of As you read the lesson, answer the following questions in your own words.
Ethics on Organizations
How does a company's ethical
A lack of ethics can lead to a number of problems for any organization. Many
behavior impact organizational modern organizations are finding that customer bases are more inclined to
outcomes? purchase from a company who is “giving back” and has good ethics.
How does a company's A lack of ethics can lead to a number of problems for any organization. Moder
unethical behavior impact organizations will become named in scandals, and other public forums,
organizational outcomes? leading to a decline in the customer base who are more inclined to switch to
an ethical company.
, MOD 1 Activity:
QUESTION Student Answer CORRECT ANSWER
Provide an example A person may have a side Check to see how your example aligns with the
of when personal business doing handwork and following: A police officer may personally believe
and professional fix-it projects. They learn that that a law that he is required to enforce is wrong.
ethics may conflict. their employeer is looking to However, under the Code of Conduct for the New
add in some bookcases, and Zealand Police, he is required to obey all lawful and
other built-ins around the reasonable instructions to enforce that law unless
office. They may be tempted to there is good and sufficient cause to do otherwise.
offer their own services A doctor may not personally believe that the course
through their side company as of medical treatment chosen by a patient is the right
a first reference instead of one. However, under the Code of Ethics for the New
looking for other professionals Zealand Medical Association, she must respect the
to do the job. rights, autonomy and freedom of choice of the
patient.
What are some A company will benefit from Business ethics offer companies a competitive
benefits to an high organizational ethics advantage. Consumers learn to trust ethical brands
organization that because they will attract and remain loyal to them, even during difficult
has high employees who also have high periods. Employees feel more at ease, are more open
organizational ethics. This also attracts to taking educated chances, and have a more
ethics? modern consumers as they are pleasant work experience.
looking for ethical companies.
Where do an And organizations ethics start They start at the top and trickle down
organization's ethics at the top (management)
tend to start?
NOTES:
Unit 2: Common Ethical Issues Introduction
Module 1: The Importance and Impact of Ethics
● Ethics is a branch of philosophy concerned with the meaning of all aspects of human behavior.
Lesson 1: Personal versus Organizational Ethics
Learning Objectives
● Distinguish between personal and organizational ethics.
Lesson Introduction
organizational ethics is the application of ethical behavior in a business context.
Ethics Defined
Ethics: Principles that serve as a compass about how to behave
● Ethics reflects beliefs about what is right, what is wrong, what is just, what is unjust, what is good, and
what is bad in terms of human behavior.
Legal versus Ethical
Legal: An act that is allowed or is in conformity with the law of the land
● Laws are meant to protect one party from another.
Legal-Ethical: When the law and personal or organizational ethics are in accordance with each other
Legal-Unethical: Dilemma in which established laws are not in accordance or do not uphold the ethical choice