Module 1: An Overview of Ethics

Question 1

The moral corruption of people in power, which is often facilitated by a tendency for people to look the other way when their leaders act inappropriately.

Answer 1

Bathsheba syndrome

Question 2

A statement that highlights an organization’s key ethical issues and identifies the overarching values and principles that are important to the organization and its decision-making.

Answer 2

Code of Ethics

Question 3

A senior-level manager who provides an organization with vision and leadership in the area of business conduct

Answer 3

Corporate ethics officer

Question 4

The concept that an organization should act ethically by taking responsibility for the impact of its actions on its shareholders, consumers, employees, community, environment, and suppliers.

Answer 4

Corporate social responsibility (CSR)

Question 5

A code of behavior that is defined by the group to which an individual belongs.

Answer 5

Ethics

Question 6

Adherence to a personal code of principles.

Answer 6

Integrity

Question 7

A system of rules that tells us what we can and cannot do.

Answer 7

Law

Question 8

The personal principles upon which an individual bases his or her decisions about what is right and what is wrong.

Answer 8

Morals

Question 9

A clear, concise description of the issue that needs to be addressed.

Answer 9

Problem statement

Question 10

A process whereby an organization reviews how well it is meeting its ethical and social responsibility goals and communicates its new goals for the upcoming year.

Answer 10

Social audit

Question 11

A form of copyright infringement that involves making copies of software or enabling others to access software to which they are not entitled.

Answer 11

Software piracy

Question 12

A component of corporate social responsibility (CSR) that focuses on developing and maintaining a supply chain that meets the needs of the present without compromising the ability of future generations to meet their needs.

Answer 12

supply chain sustainability

Question 13

Someone who stands to gain or lose, depending on how a particular situation is resolved.

Answer 13

Stakeholder

Question 14

A habit of unacceptable behavior.

Answer 14

Vice

Question 15

A habit that inclines people to do what is acceptable.

Answer 15

virtue

Question 16

What is Relativism?

Answer 16

Relativism is the philosophical theory that truth and morality are not absolute but are relative to the cultures or individuals who perceive them. Key features include:

• Cultural Relativism: Beliefs about right and wrong vary by society; there are no universal moral standards.
• Individual Relativism (Subjectivism): Moral judgments are based on individual beliefs, differing from person to person.
• Challenges the concept of universal truths in ethics, advocating that context and culture significantly influence moral perspectives.
• Contrasts with moral absolutism, which asserts the existence of universal moral truths applicable to all humans.

Question 17

What are Consequentialism and Utilitarianism?

Answer 17

Consequentialism is an ethical theory that judges the rightness or wrongness of actions based solely on their outcomes or results. Utilitarianism, a type of consequentialism, specifically measures these outcomes based on the principle of utility, which seeks the greatest happiness for the greatest number. Key points include:

• Focus on Outcomes: Actions are morally right if they produce good outcomes or minimize negative ones.
• Utilitarianism: Founded by Jeremy Bentham and further developed by John Stuart Mill; it promotes actions that
  maximize overall happiness or pleasure
• Principle of Utility: Assess actions by the extent to which they contribute to overall well-being.
• Challenges notions that morality is based on duties or inherent virtues, arguing instead that the consequences
  of actions are what matter most in ethical evaluation.

Question 18

What is Virtue Ethics?

Answer 18

Virtue ethics is a branch of moral philosophy that focuses on character and virtues rather than actions or consequences. Key aspects include:

• Central importance of moral virtues like honesty, courage, and compassion.
• Morality is assessed based on the character traits of the individual.
• Emphasizes developing good character habits and aligning one’s life with ideal virtues.
  Aims for personal growth and positive human relationships.
• Contrasts with deontology (rule-based) and consequentialism (outcome-based ethics).

Question 19

What is Deontology?

Answer 19

Deontology is an ethical theory that determines right and wrong based on adherence to a set of rules or duties, independent of the consequences. Key features include:

• Emphasis on following moral laws or principles.
• Actions are right if they align with universal principles applicable to all rational beings.
• Prominent advocate: Immanuel Kant, known for the Categorical Imperative.
• Focuses on principles like fairness, rights, and justice.
• Some actions are inherently right or wrong, regardless of their outcomes

Question 20

Laws provide a complete guide to ethical behavior. True or False?

Answer 20

False

Question 21

According to the Ethics Resource Center, the most commonly observed form of employee misconduct is?

Answer 21

Misuse of company time

Question 22

Nonmanagers are responsible for what percent of instances of reported misconduct?

Answer 22

About 40 percent

Question 23

The goodwill that CSR activities generate can make it easier for corporations to conduct their business but is unlikely to affect the profitability of the firm. True or False?

Answer 23

False

Question 24

If an employee acts in a manner contrary to corporate policy and their employee’s directions, the employer cannot be held responsible for these actions. True or False?

Answer 24

False

Question 25

Approximately how many U.S. workers have reported worker or manager misconduct and then suffered some sort of retribution from their supervisor or negative reactions from their coworkers?

Answer 25

Some 6.2 million

Question 26

Identifying the stakeholders and their positions on an issue is a part of which decision-making step?

Answer 26

Define the problem

Question 27

If you find yourself rationalizing a decision with the statement “Well, our competitors are doing something far worse”—what action should you not take?

Answer 27

Drop this option, and implement the same policy as your competitors.

Question 28

Important decisions with strong ethical implications are too often left to the technical experts; general business managers must assume greater responsibility for these decisions. True or False?

Answer 28

True