The MBA Oath correct answers My purpose is to lead people and manage resources to create
value that no single individual can create alone.
My decisions affect the well-being of individuals inside and ouside my enterprise, today and
tomorrow.
Therefore I promise correct answers I will manage my enterprise with loyalty and care, and will
not advance my personal interests at the expense of society.
I will understand and uphold, in letter and spirit the laws and contracts governing my conduct
and that of the enterprise.
Bad Apple Theory correct answers People are good or bad and organizations are
powerless to change these folks. This bad apple idea is appealing in part because
unethical behavior can then be blamed on a few individuals with poor character.
Character correct answers a complex combination of traits that are thought to guide individual
behavior in ethical dilemmas. If character guides ethical conduct, training shouldn't
make much difference because character is thought to be relatively stable: it's difficult
to change, persists over time, and guides behavior across different contexts. Character
develops slowly as a result of upbringing and the accumulation of values that are
transmitted by schools, families, friends, and religious organizations
Good Apples and Bad Apples correct answers Good apples will be good and bad apples will be
bad. In fact, people do have predispositions to behave ethically or unethically (we talk about this
in Chapter 3). And sociopaths can certainly slip into organizations with the sole intent of helping
themselves to the organization's resources, cheating customers, and feathering their own nests at
the expense of others.
The Virtue Ethics Approach correct answers The virtue ethics approach focuses more
on the honesty of the moral actor (the person) than on the moral act itself (the decision or
behavior). The goal here is to be a good person because that is the type of person you wish to be.
Relevant Moral Community correct answers A community that holds you to the highest ethical
standards. There fore its important to think about the comunity or communities which the
decision maker operates.
Conflict of Interest correct answers When your judgment or objectivity is compromised. The
appearance of a conflict of interest. When a third party could think your judgement has ben
comprimized is generally considered just as damaging as an individual conflict.
Example of Conflict of interest correct answers Our financial crisis Standard and Poor's rated the
complex mortgage backed securities.
OVERT BRIBES OR KICKBACKS correct answers Anything that could be considered a bribe
or
, kickback is a clear conflict of interest. It doesn't matter whether the bribe or kickback
is in the form of money or something else of substantial value that is offered in
exchange for access to specific products, services, or influence.
Subtle "Bribes" correct answers Bribes can be interpreted to include gifts and entertainment.
Some organizations have instituted policies that allow no gifts at all, even gifts of
nominal value. For example, we know of one teaching hospital that does not allow its
employees to accept even a notepad or pen from pharmaceutical company representatives.
Influence correct answers Your relationship with someone in itself can constitute a conflict of
interest. For example, if you're in charge of purchasing corporate advertising and your cousin or
neighbor or college friend owns an advertising agency, it will be considered a conflict if you
make the decision to hire that firm. That doesn't preclude the firm from bidding, but it does
preclude you from making the decision
PRIVILEGED INFORMATION correct answers As an employee, you're naturally privy to
information that would be valuable to your employer's competitors. That's why it's generally
considered a conflict of interest if you hold a full-time job for ABC Insurance
Company and decide to do some consulting work for XYZ Insurance Company. There
are certainly exceptions to this rule of thumb. If you're a computer programmer at
Green's Restaurant, for example, it probably isn't a conflict to wait on tables at Red's
Restaurant.
WHISTLE BLOWING correct answers WHISTLE BLOWING
Reardon's Calculated Risk Taking correct answers 1. Ask yourself how strongly you feel about
the issue.
2. Ask yourself about your intentions.
3. Consider power and influence.
4.Weigh the risks and benefits of action.
5. Think about timimg.
6. Develop alternatives
When Do you Blow the Whistle correct answers Simple triggers:
Involves values such as truth, employee, or customer rights, trust, fairness, harm, your personal
reputation or the reputation of your organization, wether the law is being broken or comprimised.
How to Blow the Whistle correct answers 1. Approach your immediate manager First If You
Can.
2. Discuss the issue with your family.
3. Take it to the next level, go to the next level of management.
4. Contact Your Company's Ethics Officer or Ombudsman.
5.Consider going outside your chain of command.
6. Go outside the company.
7. Leave the Comany