Chapter 3

Question 1

What are ethics?

Answer 1

Ethics are rules that help us tell the difference between right and wrong. They encourage us to do the right thing.

Question 2

What are values and morals?

Answer 2

Values tell us what is important. They help us make decisions about right and wrong. Morals are rules we use to decide what is good or bad.

Question 3

What is the purpose of a code of ethics?

Answer 3

A Code of Ethics Some companies write a code of ethics, a document that explains specifically how employees should respond in certain situations. Canadian laws address acceptable business behaviours. However, businesses can still behave unethically without breaking these laws.

Question 4

Define dilemma and an ethical dilemma?

Answer 4

A dilemma is a situation where a difficult choice must be made between two or more options.
An ethical dilemma is a moral problem with a choice between potential right and wrong. Some questions to consider are

Question 5

Define whistle-blowing.

Answer 5

Whistle-blowing happens when an employee informs officials or the public about an illegal or ethical violation.

Question 6

Who is Enron and what happened to them?

Answer 6

Enron was an energy company that began to trade extensively in energy derivatives markets. The company hid massive trading losses, ultimately leading to one of the largest accounting scandals and bankruptcy in recent history.

Question 7

What is fraud?

Answer 7

Fraud is a crime of lying or pretending. Some businesses mislead consumers and trick them to buy their products or services. The Competition Act 2002 bans such fraud and deceptive business
practices and defines these as
* false or misleading advertising
* “bait and switch” selling
* double ticketing items for sale

Question 8

What is insider trading?

Answer 8

Insider trading is buying or selling shares of a company based on confidential information. This type of trading is illegal.

Question 9

What is CSR? Name an example of a company that practices CSR.

Answer 9

1. Providing a safe and healthy work environment
2. Adopting fair labour polices
3. Protecting the environment
4. Being truthful in advertising
5. Avoiding price discrimination
6. Donating to charity

Example; GAP (assignment)