CFI CBCA Professional Ethics Questions and
Answers | Complete Pack | A+ Verified
• Learning Objectives -✓✓-Explain why ethics matter within an organization
-Describe the elements of business ethics
-Understanding the ethical culture of an organization -Apply professional ethics
and the moral principles of integrity
-Apply approaches to ethical decision making
-Utilize sources of ethical guidance
• Why Ethics Matter -✓✓Recent Public Lapses in Ethical Standards
Six companies that have had ethical lapses:
-Theranos
-WeWork
-Boeing
-Volkswagon
-BP
-Wells Fargo
For each of the organizations listed, research what the ethical lapse was and what
the resultant impact was on the company.
• How was the ethical lapse discovered?
• What was the impact of that lapse on the company?
• Theranos and WeWork -✓✓-Charismatic but unethical leaders
-Unicorn companies
-Have a valuation of over $1BN during startup
,• Theranos answers -✓✓• The claims made that the blood tests worked were false.
• Thousands of blood tests were inaccurate and some cost people their lives.
• Whistleblower went to press.
• Theranos was dissolved in September 2018, and the lawsuits continue.
• WeWork answers -✓✓• Falsely inflated company value.
• CEO self-dealt in a number of different areas.
• Collapse of IPO.
• CEO was fired and the company has been trying to recover its reputation and
financial stability.
• Beoing answers -✓✓• Two Boeing MAX 737 crashes prompted full Federal
Aviation Authority investigation.
• Leaked incriminating documents showed that the MAX was known to be unsafe.
• However, Boeing chose profitability over safety and put a poorly-designed,
unsafe airplane into service.
• Stock price took a sharp decline and may never recover.
• BP answers -✓✓• In 2005, an oil refinery explosion caused one of the principal
investigators to write a book ("Failure to Learn") about the lack of safety culture
over profits.
• In 2010, Deepwater Horizon offshore oil rig explosion killed 11 workers and
destroyed a significant portion of the Gulf Coast.
• Stock price took a sharp decline. Paid billions in legal costs and fines.
, • Volkswagon answers -✓✓• European car manufacturer that wanted to enter the
North American market.
• Installed a software chip into cars to cheat emissions tests and advertised cars as
"clean diesel."
• Accidentally discovered by research students trying to replicate tests, and an
insider revealed the reason.
• Paid over $30BN in fines & legal fees, and many of their executives have
received jail sentences.
• Wells Fargo answers -✓✓• US retail bank with an aggressive sales culture
• Defrauded their customers by selling unwanted credit card accounts, opening
unauthorized accounts, transferring funds from good accounts to bad/unauthorized
accounts, and making unauthorized credit inquiries.
• Complaints to the Consumer Financial Protection Bureau and anonymous tips by
employees to journalists helped uncover the fraud.
• A Measure of the World's Most Ethical Companies -✓✓-In 2020, 132 companies
in 21 countries were considered to be the world's most ethical companies. -These
companies outperform the large-cap index by 13.5%.
• The Need for an Ethical Workplace -✓✓"Companies that invest in ethics reap an
enormous return. Better workplace ethics cuts business risks by reducing the
chance that serious ethics problems will throw companies off course and distract
them from their core business." Ethics Compliance Initiative CEO, Patricia Harned
• Lawsuits
• Fines
• Penalties
• Jail time
Answers | Complete Pack | A+ Verified
• Learning Objectives -✓✓-Explain why ethics matter within an organization
-Describe the elements of business ethics
-Understanding the ethical culture of an organization -Apply professional ethics
and the moral principles of integrity
-Apply approaches to ethical decision making
-Utilize sources of ethical guidance
• Why Ethics Matter -✓✓Recent Public Lapses in Ethical Standards
Six companies that have had ethical lapses:
-Theranos
-WeWork
-Boeing
-Volkswagon
-BP
-Wells Fargo
For each of the organizations listed, research what the ethical lapse was and what
the resultant impact was on the company.
• How was the ethical lapse discovered?
• What was the impact of that lapse on the company?
• Theranos and WeWork -✓✓-Charismatic but unethical leaders
-Unicorn companies
-Have a valuation of over $1BN during startup
,• Theranos answers -✓✓• The claims made that the blood tests worked were false.
• Thousands of blood tests were inaccurate and some cost people their lives.
• Whistleblower went to press.
• Theranos was dissolved in September 2018, and the lawsuits continue.
• WeWork answers -✓✓• Falsely inflated company value.
• CEO self-dealt in a number of different areas.
• Collapse of IPO.
• CEO was fired and the company has been trying to recover its reputation and
financial stability.
• Beoing answers -✓✓• Two Boeing MAX 737 crashes prompted full Federal
Aviation Authority investigation.
• Leaked incriminating documents showed that the MAX was known to be unsafe.
• However, Boeing chose profitability over safety and put a poorly-designed,
unsafe airplane into service.
• Stock price took a sharp decline and may never recover.
• BP answers -✓✓• In 2005, an oil refinery explosion caused one of the principal
investigators to write a book ("Failure to Learn") about the lack of safety culture
over profits.
• In 2010, Deepwater Horizon offshore oil rig explosion killed 11 workers and
destroyed a significant portion of the Gulf Coast.
• Stock price took a sharp decline. Paid billions in legal costs and fines.
, • Volkswagon answers -✓✓• European car manufacturer that wanted to enter the
North American market.
• Installed a software chip into cars to cheat emissions tests and advertised cars as
"clean diesel."
• Accidentally discovered by research students trying to replicate tests, and an
insider revealed the reason.
• Paid over $30BN in fines & legal fees, and many of their executives have
received jail sentences.
• Wells Fargo answers -✓✓• US retail bank with an aggressive sales culture
• Defrauded their customers by selling unwanted credit card accounts, opening
unauthorized accounts, transferring funds from good accounts to bad/unauthorized
accounts, and making unauthorized credit inquiries.
• Complaints to the Consumer Financial Protection Bureau and anonymous tips by
employees to journalists helped uncover the fraud.
• A Measure of the World's Most Ethical Companies -✓✓-In 2020, 132 companies
in 21 countries were considered to be the world's most ethical companies. -These
companies outperform the large-cap index by 13.5%.
• The Need for an Ethical Workplace -✓✓"Companies that invest in ethics reap an
enormous return. Better workplace ethics cuts business risks by reducing the
chance that serious ethics problems will throw companies off course and distract
them from their core business." Ethics Compliance Initiative CEO, Patricia Harned
• Lawsuits
• Fines
• Penalties
• Jail time
