ETHICAL LEADERSHIP - C206 EXAM CRAM STUDY
GUIDE
ethics - Answers - the principles, norms, and standards of conduct governing an
individual or group—focuses on conduct
ethical behavior in business - Answers - behavior that is consistent with the principles,
norms, and standards of business practice that have been agreed upon by society
Process of Ethical Decision Making - Answers - ethical awareness > ethical judgement
> ethical behavior
ethical organizations - Answers - evidence suggests employees are more attracted to
and more committed
Defense Industry Initiative on Business Conduct and Ethics (DII) - Answers - 1) Adopt a
written code of conduct.
2) Conduct employees' orientation and training with respect to the code.
3) Provide employees a mechanism to express concerns about corporate compliance
with procurement laws and regulations.
4) Adopt procedures for voluntary disclosure of violations of federal procurement laws.
5) Participate in Best Practices Forums.
6) Publish information that shows each signatory's commitment to the above.
consequentialist theory - Answers - type of normative ethics that judges an action as
right or wrong by the consequences, utilitarianism is the best known consequentialist
theory
Consequentialist - Answers - focuses on doing what will maximize societal welfare
approach requires you to do a mental calculation of all the harms and benefits of these
consequences
Utilitarianism - Answers - consequentialist ethical decision should maximize benefits to
society and minimize harms. What matters is the net balance of good consequences
over bad for society overall
Consequentialist - Answers - focus attention on the results or consequences of the
decision
deontological theory - Answers - decisions about what's right on broad, abstract
universal ethical principles or values such as honesty, promise keeping, fairness,
loyalty, rights (to safety, privacy, etc.), justice, responsibility, compassion, and respect
for human beings and property
, deontological - Answers - focuses on doing what is "right" (based on moral principles or
values such as honesty)
deontological - Answers - What is Pat's ethical duty now that she knows about the
layoff?
virtue ethics - Answers - focuses more on the integrity of the moral actor (the person)
than on the moral act itself (the decision or behavior)
American Institute of Certified Public Accountants (AICPA) - Answers - National and
professional organization for CPAs, has a code of conduct for members and a mission
that includes establishing and enforcing conduct standards.
Conflict of interest - Answers - when your judgment or objectivity is compromised
Appearance of a conflict of interest - Answers - when a third party could think your
judgment has been compromised—is generally considered just as damaging as an
actual conflict
"subtle" bribe - Answers - gifts or entertainment provided by company representatives
How to blow the whistle - Answers - 1) Approach Your Immediate Manager First If You
Can (your manager isn't involved in the problem) 2) Discuss the issue with your family
3) Take it to the next level 4) Contact your company's ethics officer ombudsman 5)
Consider going outside your chain of command 6) Go outside of the company 7) Leave
the company
Sarbanes-Oxley Act (SOX) - protections - Answers - provides whistleblowers in publicly
traded companies with protections if they
Dodd-Frank Wall Street Reform and Consumer Protection Act - Answers - (SEC) will
pay 10 to 30 percent of the amount the government recovers from financial fraud if the
whistleblower provides original information leading to a recovery of more than a million
dollars
ethical awareness - Answers - first step in ethical decision making process
Dodd-Frank - Answers - increase transparency -lower risk in various parts of the U.S.
financial system.
an attempt to rein in the most egregious practices in the financial industry 10-30
ethical awareness- 3 factors - Answers - (1) if they believe that their peers will consider
it to be ethically problematic (2) if ethical language is used to present the situation to the
decision maker (3) if the decision is seen as having the potential to produce serious
harm to others
GUIDE
ethics - Answers - the principles, norms, and standards of conduct governing an
individual or group—focuses on conduct
ethical behavior in business - Answers - behavior that is consistent with the principles,
norms, and standards of business practice that have been agreed upon by society
Process of Ethical Decision Making - Answers - ethical awareness > ethical judgement
> ethical behavior
ethical organizations - Answers - evidence suggests employees are more attracted to
and more committed
Defense Industry Initiative on Business Conduct and Ethics (DII) - Answers - 1) Adopt a
written code of conduct.
2) Conduct employees' orientation and training with respect to the code.
3) Provide employees a mechanism to express concerns about corporate compliance
with procurement laws and regulations.
4) Adopt procedures for voluntary disclosure of violations of federal procurement laws.
5) Participate in Best Practices Forums.
6) Publish information that shows each signatory's commitment to the above.
consequentialist theory - Answers - type of normative ethics that judges an action as
right or wrong by the consequences, utilitarianism is the best known consequentialist
theory
Consequentialist - Answers - focuses on doing what will maximize societal welfare
approach requires you to do a mental calculation of all the harms and benefits of these
consequences
Utilitarianism - Answers - consequentialist ethical decision should maximize benefits to
society and minimize harms. What matters is the net balance of good consequences
over bad for society overall
Consequentialist - Answers - focus attention on the results or consequences of the
decision
deontological theory - Answers - decisions about what's right on broad, abstract
universal ethical principles or values such as honesty, promise keeping, fairness,
loyalty, rights (to safety, privacy, etc.), justice, responsibility, compassion, and respect
for human beings and property
, deontological - Answers - focuses on doing what is "right" (based on moral principles or
values such as honesty)
deontological - Answers - What is Pat's ethical duty now that she knows about the
layoff?
virtue ethics - Answers - focuses more on the integrity of the moral actor (the person)
than on the moral act itself (the decision or behavior)
American Institute of Certified Public Accountants (AICPA) - Answers - National and
professional organization for CPAs, has a code of conduct for members and a mission
that includes establishing and enforcing conduct standards.
Conflict of interest - Answers - when your judgment or objectivity is compromised
Appearance of a conflict of interest - Answers - when a third party could think your
judgment has been compromised—is generally considered just as damaging as an
actual conflict
"subtle" bribe - Answers - gifts or entertainment provided by company representatives
How to blow the whistle - Answers - 1) Approach Your Immediate Manager First If You
Can (your manager isn't involved in the problem) 2) Discuss the issue with your family
3) Take it to the next level 4) Contact your company's ethics officer ombudsman 5)
Consider going outside your chain of command 6) Go outside of the company 7) Leave
the company
Sarbanes-Oxley Act (SOX) - protections - Answers - provides whistleblowers in publicly
traded companies with protections if they
Dodd-Frank Wall Street Reform and Consumer Protection Act - Answers - (SEC) will
pay 10 to 30 percent of the amount the government recovers from financial fraud if the
whistleblower provides original information leading to a recovery of more than a million
dollars
ethical awareness - Answers - first step in ethical decision making process
Dodd-Frank - Answers - increase transparency -lower risk in various parts of the U.S.
financial system.
an attempt to rein in the most egregious practices in the financial industry 10-30
ethical awareness- 3 factors - Answers - (1) if they believe that their peers will consider
it to be ethically problematic (2) if ethical language is used to present the situation to the
decision maker (3) if the decision is seen as having the potential to produce serious
harm to others
