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1. Define business ethics.
ANSWER: Ethics is the study of right and wrong and of the morality of the choices individuals
make. Business ethics, more specifically defined, is the application of moral standards
to business situations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 34
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Business Ethics Defined
KEYWORDS: Bloom's: Knowledge
2. Why are fairness and honesty in business important ethical concerns? Give examples.
ANSWER: Fairness and honesty in business are considered as two important ethical concerns. In
addition to obeying all laws and regulations, businesspeople are expected to refrain
from knowingly deceiving, misrepresenting, or intimidating others. The
PricewaterhouseCoopers LLP and Anderson’s Ark and Associates cases prove that
the lack of fairness and honesty also is an expensive proposition.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 35
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Ethical Issues
KEYWORDS: Bloom's: Comprehension
3. What are the major ethical issues businesspeople face?
ANSWER: Challenges to being fair and honest, temptations of placing personal welfare above the
welfare of the organization, and conflicts of interest are among common ethical issues
that businesspeople may regularly face. Business communications, especially
advertising, can also present ethical questions for employees within organizations.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: pp. 34-36
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
,TOPICS: Ethical Issues
KEYWORDS: Bloom's: Comprehension
,4. What are the three major sets of factors believed to affect ethical behavior in an organization?
ANSWER: Individual factors such as individual knowledge of issues, personal values, and personal
goals influence the level of ethical behavior in an organization. Social factors such as
cultural norms, actions and decisions of co-workers, significant others, and the use of
the Internet affect ethical behavior. Also, the amount of freedom an organization gives
an employee to behave unethically affects ethical behavior in an organization.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: pp. 37-38
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-3
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Factors Affecting Ethical Behavior
KEYWORDS: Bloom's: Knowledge
5. What are some of the social factors that affect ethical decisions?
ANSWER: Cultural norms is an important factor in considering ethical decision making. The
actions and decisions of coworkers impact other employees’ sense of business
ethics. Significant others--spouses, friends, and relatives--also can affect an
employee’s perception of ethical and unethical decisions in the workplace. Also, the
use of the Internet by employees in a business setting is also an important social
factor that affects ethical decision making.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: pp. 37-38
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-3
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Factors Affecting Ethical Behavior
KEYWORDS: Bloom's: Knowledge
6. How can the government encourage ethical behavior? Give an example.
ANSWER: The government encourages ethical behavior by legislating regulations. One of the
important landmark regulations that the government has created is the Sarbanes-
Oxley Act of 2002 which deals with corporate responsibility, conflicts of interest, and
corporate accountability.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 38
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Encouraging Ethical Behavior
KEYWORDS: Bloom's: Knowledge
, 7. Define a code of ethics. Do codes cover every business situation?
ANSWER: A code of ethics is a written guide to acceptable and ethical behavior in an
organization. A code outlines uniform policies, standards, and punishments for
violations. A code of ethics cannot possibly cover every situation that might arise in an
organization. An environment in which employees recognize the importance of
complying with the written code must also be in place.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 39
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Encouraging Ethical Behavior
KEYWORDS: Bloom's: Comprehension
8. What might be the personal and social consequences of whistle-blowing within one's own firm?
ANSWER: Whistle-blowing, the practice of informing the press or government officials about
unethical practices within one’s organization, could impact the employee who blew the
whistle through loss of his or her job even though the Sarbanes-Oxley Act of 2002
protects whistle-blowers who report corporate misconduct. Retaliation by executives
is a criminal offense but, nevertheless, retaliation does occur.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 41
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Encouraging Ethical Behavior
KEYWORDS: Bloom's: Comprehension
9. What are a few examples of companies acting socially responsible?
ANSWER: Student answers will vary. Some possible answers include Walmart’s donation of $20
million in cash, 100 truckloads of free merchandise, and food for 100,000 meals after
Hurricane Katrina, General Mills’ foundation that awards millions of dollars in grants
to community organizations, and Dell’s foundation that supports a wide range of
programs that benefit children in Dell’s principal U.S. locations.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 42
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Social Responsibility
KEYWORDS: Bloom's: Knowledge
COURSES, TEST BANKS, FINAL EXAMS, AND
SOLUTION MANUALS
CONTACT US
AT
1. Define business ethics.
ANSWER: Ethics is the study of right and wrong and of the morality of the choices individuals
make. Business ethics, more specifically defined, is the application of moral standards
to business situations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 34
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Business Ethics Defined
KEYWORDS: Bloom's: Knowledge
2. Why are fairness and honesty in business important ethical concerns? Give examples.
ANSWER: Fairness and honesty in business are considered as two important ethical concerns. In
addition to obeying all laws and regulations, businesspeople are expected to refrain
from knowingly deceiving, misrepresenting, or intimidating others. The
PricewaterhouseCoopers LLP and Anderson’s Ark and Associates cases prove that
the lack of fairness and honesty also is an expensive proposition.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 35
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Ethical Issues
KEYWORDS: Bloom's: Comprehension
3. What are the major ethical issues businesspeople face?
ANSWER: Challenges to being fair and honest, temptations of placing personal welfare above the
welfare of the organization, and conflicts of interest are among common ethical issues
that businesspeople may regularly face. Business communications, especially
advertising, can also present ethical questions for employees within organizations.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: pp. 34-36
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
,TOPICS: Ethical Issues
KEYWORDS: Bloom's: Comprehension
,4. What are the three major sets of factors believed to affect ethical behavior in an organization?
ANSWER: Individual factors such as individual knowledge of issues, personal values, and personal
goals influence the level of ethical behavior in an organization. Social factors such as
cultural norms, actions and decisions of co-workers, significant others, and the use of
the Internet affect ethical behavior. Also, the amount of freedom an organization gives
an employee to behave unethically affects ethical behavior in an organization.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: pp. 37-38
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-3
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Factors Affecting Ethical Behavior
KEYWORDS: Bloom's: Knowledge
5. What are some of the social factors that affect ethical decisions?
ANSWER: Cultural norms is an important factor in considering ethical decision making. The
actions and decisions of coworkers impact other employees’ sense of business
ethics. Significant others--spouses, friends, and relatives--also can affect an
employee’s perception of ethical and unethical decisions in the workplace. Also, the
use of the Internet by employees in a business setting is also an important social
factor that affects ethical decision making.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: pp. 37-38
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-3
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Factors Affecting Ethical Behavior
KEYWORDS: Bloom's: Knowledge
6. How can the government encourage ethical behavior? Give an example.
ANSWER: The government encourages ethical behavior by legislating regulations. One of the
important landmark regulations that the government has created is the Sarbanes-
Oxley Act of 2002 which deals with corporate responsibility, conflicts of interest, and
corporate accountability.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 38
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Encouraging Ethical Behavior
KEYWORDS: Bloom's: Knowledge
, 7. Define a code of ethics. Do codes cover every business situation?
ANSWER: A code of ethics is a written guide to acceptable and ethical behavior in an
organization. A code outlines uniform policies, standards, and punishments for
violations. A code of ethics cannot possibly cover every situation that might arise in an
organization. An environment in which employees recognize the importance of
complying with the written code must also be in place.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 39
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Encouraging Ethical Behavior
KEYWORDS: Bloom's: Comprehension
8. What might be the personal and social consequences of whistle-blowing within one's own firm?
ANSWER: Whistle-blowing, the practice of informing the press or government officials about
unethical practices within one’s organization, could impact the employee who blew the
whistle through loss of his or her job even though the Sarbanes-Oxley Act of 2002
protects whistle-blowers who report corporate misconduct. Retaliation by executives
is a criminal offense but, nevertheless, retaliation does occur.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 41
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Encouraging Ethical Behavior
KEYWORDS: Bloom's: Comprehension
9. What are a few examples of companies acting socially responsible?
ANSWER: Student answers will vary. Some possible answers include Walmart’s donation of $20
million in cash, 100 truckloads of free merchandise, and food for 100,000 meals after
Hurricane Katrina, General Mills’ foundation that awards millions of dollars in grants
to community organizations, and Dell’s foundation that supports a wide range of
programs that benefit children in Dell’s principal U.S. locations.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 42
LEARNING OBJECTIVES: FOBU.PRIDE.15.2-4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Social Responsibility
KEYWORDS: Bloom's: Knowledge
