D072 BUSINESS MANAGEMENT Study
Guide Questions and Answers
Distinguish between personal and organizational ethics -CORRECT ANSWER ->>Personal ethics refers to
the ethics a person identifies with, which guides how they interact with others daily.
Organizational ethics focuses on rules, principles and standards in respect to the business' activities
Identify how ethics impact outcomes in organizations -CORRECT ANSWER ->>· Organizations tainted by
questionable ethics suffer by a decline in their consumer base, increase employee turnover, and
mistrust from their investor's.
· Setting an unrealistic goal can lead to the compromise of ethics and standards.
(These tend to happen when the desire for profit outweighs ethical decision-making.)
· Organizations who practices good ethical behavior are more likely to flourish and are trusted by their
stakeholders.
Example of personal ethics -CORRECT ANSWER ->>Speaking the truth, respecting elders, and never
purposely hurt others
Example of professional ethics -CORRECT ANSWER ->>Being punctual, refraining from gossip, and having
good time management
Provide an example of when personal and professional ethics may conflict -CORRECT ANSWER ->>Under
the 'Code of Conduct,' police officers are obligated to enforce and uphold the law even if they don't
agree with it.
Police may believe smoking marijuana is ethically wrong, but by law, smoking marijuana is legal.
Where does an organization's ethics tend to start? -CORRECT ANSWER ->>Organization's ethics tend to
start (or fail) from the top (management) then trickle down.
What are the 4 main ethical issues and their roles within organizations? -CORRECT ANSWER ->>1.
Societal Issues- Relates to society and getting involve in societal issues out of care and concern.
,2. Stakeholder Issues- Anyone affected by the company's actions (consumers, employees, suppliers, and
people within the community).
3. Internal issues- Relates to relationship between organization and its employees (fairness in
management, pay, and employee participation).
4. Personal Issues- Deals with how employees treat each other (gossiping, taking credit for someone
else's work).
Example of a high/low level of organizational ethic -CORRECT ANSWER ->>Good: Sharing credit with co-
workers and treating subordinates with respect demonstrates high level of organizational ethics.
Bad: Treating others unfairly, showing preferences within the workplace is a low level of organizational
ethics.
What are some benefits to an organization that practices high ethics? -CORRECT ANSWER -
>>Organizations with high ethics benefit from the trust of their stakeholders and has a competitive
advantage in the marketplace.
Define Corporate Social Responsibility (CSR) -CORRECT ANSWER ->>CSR is when an organization
voluntarily engages in issues that are affecting the environment, community or society at large
What is the importance of CSR in the organization and in the community? -CORRECT ANSWER ->>CSR is
important in the organization because
· It's beneficial to both the organization and its stakeholders. It creates long-term profits and
shareholder's trust for the organization.
· Attract consumers who share the same values.
· Increases organization's brand image (awareness) /creates a better image
· Creates an advantage over competitors.
CSR is important in the community because
· Organization is gives back to the community (food bank/ school supplies giveaways,
charities/donations, scholarships).
· Ability to influence organization's economic practices.
Compare corporate ethical commitments with reality of how the commitments are acted out in
accordance with commitments, or in discord to the commitments -CORRECT ANSWER ->>Company in
, accordance with their commitment example: Company ABC, states that they are becoming more eco-
friendly. They show their commitments by manufacturing in a sustainable way, using renewable
products, encouraging employees to recycle, partnering with like-minded people within the community.
Company in discord with their commitment example: Company DEF, states that they are becoming more
eco-friendly, but their actions are contrary. They don't manufacture in a sustainable fashion, don't
practice recycling. All the company's actions are detrimental to the environment. This action is also
known as Greenwashing- (company's actions goes against their ethical commitments).
What is internal transparency and why is it important? -CORRECT ANSWER ->>Internal transparency is
the ability of everyone in an organization to exist within a system of openness, communication, and
accountability. This is important because of good ethical behavior practice, others can see this behavior
and follow suit. Internal transparency is one of the keys to defeating corruption.
What is whistleblowing? -CORRECT ANSWER ->>Whistleblowing is when someone tells the public or
authorities of alleged misconduct in a government department, private company or organization.
Whistleblowers are protected under the Sarbanes-Oxley Act (SOX). This law aims at improving
transparency in organizations by requiring clear reporting practices.
What are the 5 main functions of departments within an organization? -CORRECT ANSWER ->>1.
Marketing- customer and market research, target market identification, branding, advertising
2. Human Resource (HR)- labor laws compliance, recruitment and onboarding, payroll compensation and
benefits, internal relations, training and development, safety and maintenance
3. Accounting and Finance- accounts payable/receivable, revenue tracking, payroll and taxes, financial
reporting, financial controls
4. Research and Development (R&D)- product improvisation, new product development
5. Information Technology (IT)- governance, infrastructure, functionality
Distinguish between Process and Relationship management -CORRECT ANSWER ->>Process
Management/Business Process management (BPM)- refers to management's initiative to design work
processes so that they align with the organization's strategic goals. This involves automation of work
processes using technology, analyzing, optimizing, and monitoring business processes to improve
business performance. BPM can also help outline ethical standards by standardizing decision-making
and workflow procedures.
Relationship management- utilize initiatives that govern how organization maintains relationships with
an audience (relationships between different departments, relationships between individual employees
Guide Questions and Answers
Distinguish between personal and organizational ethics -CORRECT ANSWER ->>Personal ethics refers to
the ethics a person identifies with, which guides how they interact with others daily.
Organizational ethics focuses on rules, principles and standards in respect to the business' activities
Identify how ethics impact outcomes in organizations -CORRECT ANSWER ->>· Organizations tainted by
questionable ethics suffer by a decline in their consumer base, increase employee turnover, and
mistrust from their investor's.
· Setting an unrealistic goal can lead to the compromise of ethics and standards.
(These tend to happen when the desire for profit outweighs ethical decision-making.)
· Organizations who practices good ethical behavior are more likely to flourish and are trusted by their
stakeholders.
Example of personal ethics -CORRECT ANSWER ->>Speaking the truth, respecting elders, and never
purposely hurt others
Example of professional ethics -CORRECT ANSWER ->>Being punctual, refraining from gossip, and having
good time management
Provide an example of when personal and professional ethics may conflict -CORRECT ANSWER ->>Under
the 'Code of Conduct,' police officers are obligated to enforce and uphold the law even if they don't
agree with it.
Police may believe smoking marijuana is ethically wrong, but by law, smoking marijuana is legal.
Where does an organization's ethics tend to start? -CORRECT ANSWER ->>Organization's ethics tend to
start (or fail) from the top (management) then trickle down.
What are the 4 main ethical issues and their roles within organizations? -CORRECT ANSWER ->>1.
Societal Issues- Relates to society and getting involve in societal issues out of care and concern.
,2. Stakeholder Issues- Anyone affected by the company's actions (consumers, employees, suppliers, and
people within the community).
3. Internal issues- Relates to relationship between organization and its employees (fairness in
management, pay, and employee participation).
4. Personal Issues- Deals with how employees treat each other (gossiping, taking credit for someone
else's work).
Example of a high/low level of organizational ethic -CORRECT ANSWER ->>Good: Sharing credit with co-
workers and treating subordinates with respect demonstrates high level of organizational ethics.
Bad: Treating others unfairly, showing preferences within the workplace is a low level of organizational
ethics.
What are some benefits to an organization that practices high ethics? -CORRECT ANSWER -
>>Organizations with high ethics benefit from the trust of their stakeholders and has a competitive
advantage in the marketplace.
Define Corporate Social Responsibility (CSR) -CORRECT ANSWER ->>CSR is when an organization
voluntarily engages in issues that are affecting the environment, community or society at large
What is the importance of CSR in the organization and in the community? -CORRECT ANSWER ->>CSR is
important in the organization because
· It's beneficial to both the organization and its stakeholders. It creates long-term profits and
shareholder's trust for the organization.
· Attract consumers who share the same values.
· Increases organization's brand image (awareness) /creates a better image
· Creates an advantage over competitors.
CSR is important in the community because
· Organization is gives back to the community (food bank/ school supplies giveaways,
charities/donations, scholarships).
· Ability to influence organization's economic practices.
Compare corporate ethical commitments with reality of how the commitments are acted out in
accordance with commitments, or in discord to the commitments -CORRECT ANSWER ->>Company in
, accordance with their commitment example: Company ABC, states that they are becoming more eco-
friendly. They show their commitments by manufacturing in a sustainable way, using renewable
products, encouraging employees to recycle, partnering with like-minded people within the community.
Company in discord with their commitment example: Company DEF, states that they are becoming more
eco-friendly, but their actions are contrary. They don't manufacture in a sustainable fashion, don't
practice recycling. All the company's actions are detrimental to the environment. This action is also
known as Greenwashing- (company's actions goes against their ethical commitments).
What is internal transparency and why is it important? -CORRECT ANSWER ->>Internal transparency is
the ability of everyone in an organization to exist within a system of openness, communication, and
accountability. This is important because of good ethical behavior practice, others can see this behavior
and follow suit. Internal transparency is one of the keys to defeating corruption.
What is whistleblowing? -CORRECT ANSWER ->>Whistleblowing is when someone tells the public or
authorities of alleged misconduct in a government department, private company or organization.
Whistleblowers are protected under the Sarbanes-Oxley Act (SOX). This law aims at improving
transparency in organizations by requiring clear reporting practices.
What are the 5 main functions of departments within an organization? -CORRECT ANSWER ->>1.
Marketing- customer and market research, target market identification, branding, advertising
2. Human Resource (HR)- labor laws compliance, recruitment and onboarding, payroll compensation and
benefits, internal relations, training and development, safety and maintenance
3. Accounting and Finance- accounts payable/receivable, revenue tracking, payroll and taxes, financial
reporting, financial controls
4. Research and Development (R&D)- product improvisation, new product development
5. Information Technology (IT)- governance, infrastructure, functionality
Distinguish between Process and Relationship management -CORRECT ANSWER ->>Process
Management/Business Process management (BPM)- refers to management's initiative to design work
processes so that they align with the organization's strategic goals. This involves automation of work
processes using technology, analyzing, optimizing, and monitoring business processes to improve
business performance. BPM can also help outline ethical standards by standardizing decision-making
and workflow procedures.
Relationship management- utilize initiatives that govern how organization maintains relationships with
an audience (relationships between different departments, relationships between individual employees
