Solution Manual –
Business And Professional Ethics,
By Len Brooks
9th Edition
,Table Of Contents
Chapter 1: Ethics Expectations
Chapter 2: Ethics & Governance Scandals
Chapter 3: Ethical Behavior-Philosophers’ Contributions
Chapter 4: Practical Ethical Decision Making
Chapter 5: Corporate Ethical Governance & Accountability
Chapter 6: Professional Accounting In The Public Interest
Chapter 7: Managing Ethics Risks & Opportunities
Chapter 8: Subprime Lending Fiasco-Ethics Issues
,Chapter Questions
1. Why Have Concerns Over Pollution Become So Important For Management And Directors?
Because The Public Perceive That Our Environment Is Finite And That Our Well-Being Is
Threatened. In Turn They Have Influenced Politicians To Enact Tougher Laws And Heavier
Penalties...Up To $2 Million/Day, With The Prospect Of Personal Liability And Jail. In Addition,
U.S. Courts Have Agreed To Hear Lawsuits Brought By Foreigners For Pollution On Foreign Soil
(See Ethics Case “Texaco: The Ecuador Issue” In Chapter 1). Finally, Pollution Can Erode The
Trust Necessary To Preserve Stakeholder Support, And This Will Be Seen By Stakeholders With
Resultant Negative Consequences In Consumer And Capital Markets.
2. Why Are We More Concerned Now Than Our Parents Were About Fair Treatment Of
Employees? Our Social Consciousness Is Higher Due To The Reasons Listed In Chapter 1.
3. What Could Professional Accountants Have Done To Prevent The Development Of The Credibility Gap
And The Expectations Gap?
See The Discussion On The Treadway, Metcalf And Macdonald Commissions. Also See Case
“Arthur Andersen’s Troubles,” In Chapter 2.
4. Why Might Ethical Corporate Behavior Lead To Higher Profitability?
Because Attention To Ethical Concerns Can Keep Corporations Out Of Costly Problems Such As
Clean-Up Of Pollution, Fines, Low Morale, And Loss Of Reputation And Stakeholder Support;
And It Can Open Up Profitable Opportunities Such As Developing Green Product Lines.
5. Why Is It Important For The Clients Of Professional Accountants To Be Ethical?
Because Auditors Don't Check 100% Of All Transactions And, Even If They Did, There Would Be
Conflicts Of Interest And Other Hidden Issues Which Would Be Found Only By Chance. Making
Sure That Clients Are Ethical Provides Assurance That They Will Not Be Hiding Things From The
Auditors Or Engaging In Unethical Activities. The Value Of The Auditor's Opinion Depends Upon
It.
6. How Can Corporations Ensure That Their Employees Behave Ethically?
By Developing Ethical Corporate Cultures Based On Codes Of Conduct To Provide Guidance;
Training To Provide Awareness And Understanding; Monitoring To Assure Compliance; And
Rewards Or Sanctions To Reinforce The Desired Behavior. Also, The Top Executives Should Set
The Best Example Possible.
7. Why Didn’t Some Corporations Protect Women Employees From Sexual Abuse Before 2017–2019?
Many Factors Have Contributed To Changes In Workplaces And Attitudes Toward Sexual Abuse
Over The Last Decade, Including The Following Reasons.
, Sexual Abuse Was Once A Taboo Subject, But When Media Reported On Sometimes Decades-
Old Abuses Associated With Pedophile Priests, Residential Schools, And Sports Coaches, Etc.,
Taboos Were Eroded, Particularly Because Abuses Had Been Directed Toward Boys And Men.
Public Outrage, Media Appetite, And Victims Realizing That They Were Not Alone, Increased
Coverage Of The Topic.
At The Same Time, Cultural Norms Concerning The Roles And Treatment Of Women Were Changing.
The Advent Of Desktop Computers Even Played A Role, Because Corporate Employees Were
Expected To Type Their Own Documents And Not Rely On “Traditional” Secretarial Work By
Women. In Professions And Workplaces, More And More Women Were Moving Into Non-
Traditional Jobs. In Still Male-Dominated Workplace And Professions, Women In New Roles
Feared Reprisal If They Complained Of Sexual Abuse—If, Indeed, They Could Find Anyone To
Complain To. Complaints In Male-Dominated Workplaces—Particularly Against A High-Power Or
High-Profile Abuser–May Have Fallen On Deaf Ears. As More Women Gained Roles Of Influence,
Recognition Of Workplace Discrimination Led To Employment Equity And Pay Equity Programs.
As Workplace Norms Changed, So Did Cultural Ones. Through Continued Media Coverage,
People Learned More About The Pervasiveness Of Abuse And Its Recipe: Abusers Were Usually In
Positions Of Power And Worked To Isolate Insecure Or Vulnerable Victims And Pressure Them
Into Secrecy Through Shame Or Threats Of Reprisal. Old Attitudes Of Victim Blaming—That
Women Were Responsible For Or Complicit In Abuse, And That “No!” Did Not Mean “No”–Were
Being Dispelled.
Social Media, Used As A Vehicle By The #Metoo Movement In 2017, Rocketed The Awareness Of
Abuses Against Women To New Heights. The Movement Spread A Feeling Of Strength-In-
Numbers And An Attitude Of “We’re Not Going To Take It Anymore.” Emboldened By
Widespread Support, Changing Attitudes Among Women And Men, And More Women In Roles
Of Influence, Corporations Were Forced To Appear Proactive And Intolerant Of Abuse.
Prior To 2017, There Were Relatively Few Instances Were Powerful Men Were Successfully
Prosecuted In Court With Serious Fines Or Prison As Outcomes. That All Changed With Cases
Involving Bill Cosby (Convicted In 2018) And Harry Weinstein (Convicted In 2020).12 Corporations
Took Note, And They Took Action Against Executives They Formerly Excused.
See Also The Answer To Question 13, Chapter 7, Page 590: “The #Metoo Movement Has Finally
Succeeded In Getting Women’s Allegations Of Sexual Abuse To Be Taken Seriously By
Management And Boards Of Directors. Why Did It Take So Long For This Tipping Point To Be
Reached?”
8. Should Executives And Directors Be Sent To Jail For The Acts Of Their Corporation's
Employees? Yes, They Should, If The Executives And Directors Act Negligently Or Without
Engaging In Due
Business And Professional Ethics,
By Len Brooks
9th Edition
,Table Of Contents
Chapter 1: Ethics Expectations
Chapter 2: Ethics & Governance Scandals
Chapter 3: Ethical Behavior-Philosophers’ Contributions
Chapter 4: Practical Ethical Decision Making
Chapter 5: Corporate Ethical Governance & Accountability
Chapter 6: Professional Accounting In The Public Interest
Chapter 7: Managing Ethics Risks & Opportunities
Chapter 8: Subprime Lending Fiasco-Ethics Issues
,Chapter Questions
1. Why Have Concerns Over Pollution Become So Important For Management And Directors?
Because The Public Perceive That Our Environment Is Finite And That Our Well-Being Is
Threatened. In Turn They Have Influenced Politicians To Enact Tougher Laws And Heavier
Penalties...Up To $2 Million/Day, With The Prospect Of Personal Liability And Jail. In Addition,
U.S. Courts Have Agreed To Hear Lawsuits Brought By Foreigners For Pollution On Foreign Soil
(See Ethics Case “Texaco: The Ecuador Issue” In Chapter 1). Finally, Pollution Can Erode The
Trust Necessary To Preserve Stakeholder Support, And This Will Be Seen By Stakeholders With
Resultant Negative Consequences In Consumer And Capital Markets.
2. Why Are We More Concerned Now Than Our Parents Were About Fair Treatment Of
Employees? Our Social Consciousness Is Higher Due To The Reasons Listed In Chapter 1.
3. What Could Professional Accountants Have Done To Prevent The Development Of The Credibility Gap
And The Expectations Gap?
See The Discussion On The Treadway, Metcalf And Macdonald Commissions. Also See Case
“Arthur Andersen’s Troubles,” In Chapter 2.
4. Why Might Ethical Corporate Behavior Lead To Higher Profitability?
Because Attention To Ethical Concerns Can Keep Corporations Out Of Costly Problems Such As
Clean-Up Of Pollution, Fines, Low Morale, And Loss Of Reputation And Stakeholder Support;
And It Can Open Up Profitable Opportunities Such As Developing Green Product Lines.
5. Why Is It Important For The Clients Of Professional Accountants To Be Ethical?
Because Auditors Don't Check 100% Of All Transactions And, Even If They Did, There Would Be
Conflicts Of Interest And Other Hidden Issues Which Would Be Found Only By Chance. Making
Sure That Clients Are Ethical Provides Assurance That They Will Not Be Hiding Things From The
Auditors Or Engaging In Unethical Activities. The Value Of The Auditor's Opinion Depends Upon
It.
6. How Can Corporations Ensure That Their Employees Behave Ethically?
By Developing Ethical Corporate Cultures Based On Codes Of Conduct To Provide Guidance;
Training To Provide Awareness And Understanding; Monitoring To Assure Compliance; And
Rewards Or Sanctions To Reinforce The Desired Behavior. Also, The Top Executives Should Set
The Best Example Possible.
7. Why Didn’t Some Corporations Protect Women Employees From Sexual Abuse Before 2017–2019?
Many Factors Have Contributed To Changes In Workplaces And Attitudes Toward Sexual Abuse
Over The Last Decade, Including The Following Reasons.
, Sexual Abuse Was Once A Taboo Subject, But When Media Reported On Sometimes Decades-
Old Abuses Associated With Pedophile Priests, Residential Schools, And Sports Coaches, Etc.,
Taboos Were Eroded, Particularly Because Abuses Had Been Directed Toward Boys And Men.
Public Outrage, Media Appetite, And Victims Realizing That They Were Not Alone, Increased
Coverage Of The Topic.
At The Same Time, Cultural Norms Concerning The Roles And Treatment Of Women Were Changing.
The Advent Of Desktop Computers Even Played A Role, Because Corporate Employees Were
Expected To Type Their Own Documents And Not Rely On “Traditional” Secretarial Work By
Women. In Professions And Workplaces, More And More Women Were Moving Into Non-
Traditional Jobs. In Still Male-Dominated Workplace And Professions, Women In New Roles
Feared Reprisal If They Complained Of Sexual Abuse—If, Indeed, They Could Find Anyone To
Complain To. Complaints In Male-Dominated Workplaces—Particularly Against A High-Power Or
High-Profile Abuser–May Have Fallen On Deaf Ears. As More Women Gained Roles Of Influence,
Recognition Of Workplace Discrimination Led To Employment Equity And Pay Equity Programs.
As Workplace Norms Changed, So Did Cultural Ones. Through Continued Media Coverage,
People Learned More About The Pervasiveness Of Abuse And Its Recipe: Abusers Were Usually In
Positions Of Power And Worked To Isolate Insecure Or Vulnerable Victims And Pressure Them
Into Secrecy Through Shame Or Threats Of Reprisal. Old Attitudes Of Victim Blaming—That
Women Were Responsible For Or Complicit In Abuse, And That “No!” Did Not Mean “No”–Were
Being Dispelled.
Social Media, Used As A Vehicle By The #Metoo Movement In 2017, Rocketed The Awareness Of
Abuses Against Women To New Heights. The Movement Spread A Feeling Of Strength-In-
Numbers And An Attitude Of “We’re Not Going To Take It Anymore.” Emboldened By
Widespread Support, Changing Attitudes Among Women And Men, And More Women In Roles
Of Influence, Corporations Were Forced To Appear Proactive And Intolerant Of Abuse.
Prior To 2017, There Were Relatively Few Instances Were Powerful Men Were Successfully
Prosecuted In Court With Serious Fines Or Prison As Outcomes. That All Changed With Cases
Involving Bill Cosby (Convicted In 2018) And Harry Weinstein (Convicted In 2020).12 Corporations
Took Note, And They Took Action Against Executives They Formerly Excused.
See Also The Answer To Question 13, Chapter 7, Page 590: “The #Metoo Movement Has Finally
Succeeded In Getting Women’s Allegations Of Sexual Abuse To Be Taken Seriously By
Management And Boards Of Directors. Why Did It Take So Long For This Tipping Point To Be
Reached?”
8. Should Executives And Directors Be Sent To Jail For The Acts Of Their Corporation's
Employees? Yes, They Should, If The Executives And Directors Act Negligently Or Without
Engaging In Due
