Emerging Business Ethics Issues

Question 1

An Ethical Issue is a

Answer 1

Is a problem, situation, or opportunity that requires an individual or group to choose among actions.

Question 2

Three traits to solve ethical issues

Answer 2

Integrity
Honesty
Fairness

Question 3

Most common types of misconduct

Answer 3

Misuse of company time
Abusive behavior
Lying to employees
Company recourse abuse 
Violating company Internet use policies

Question 4

Misuse of Company Resources

Answer 4

The leading form of observed misconduct

- can range form unauthorized use of equipment and computers to embezzling company funds.

Question 5

Abusive or Intimidating behavior

Answer 5

• can be physical threats, false accusations. profanity, insults, harshness, ignoring someone, or unreasonableness.

Question 6

Lying

Answer 6

• Joking without malice
• Commission lying
• Omission lying

Question 7

Bribery

Answer 7

• Active bribery
• Passive bribery (offense committed by officials)
• Facilitation payments (payments that allow for faster and smoother business activity)

Question 8

Corruption

Answer 8

It has long been illegal to bribe officials in Canada

Question 9

Hacking

Answer 9

Stealing company or employees information

• System hacking (with company accounts, form the inside)
• Remote hacking ( hacking through a different location)
• physical hacking (physically going in to a building and stealing information)

Question 10

Discrimination

Answer 10

Is illegal- intentional or unintentional discrimination based on race, gender, age, religion

Question 11

Sexual Harassment

Answer 11

A repeated, unwanted behavior of sexual nature perpetrated upon an individual by another.

Question 12

Fraud

Answer 12

Any purposful communication that deceives, manipulates, or conceals facts in order to create a false impression.
Accounting fraud/ Financial misconduct
-Misrepresentation of company’s financial reports
-Dramatic changes in accounting field
-Increased competition and pressures to perform can create opportunities for misconduct
-Accounts should abide by a strict code of ethics

Question 13

Marketing Fraud

Answer 13

The process of dishonesty creating, distributing, promoting, and pricing products

• Puffery
• Implied falsity
• Literally false

Question 14

Insider Trading

Answer 14

Two types

• legal insider trading: involves legally buying and selling stock in an insiders own company, but not all the time
• Illegal insider trading: The buying or selling of stock by insiders who possess material that is not public

Question 15

Intellectual Property Rights and Privacy

Answer 15

Involve the legal protection of intellectual properties
- Books, movies, software
Many issues in the business world
- Employee use if technology
- Consumer privacy
- Can be challenging for businesses today to meet the needs of consumers while protecting privacy

Question 16

Three dimensions of institutionalization

Answer 16

Voluntary practices
Core practices
Mandated boundaries

Question 17

Types of Law

Answer 17

Types of legal systems:
Common Law
Civil Law
Theocratic Law

Question 18

Legislation in Canada

Answer 18

• The charter of Rights and Freedoms
• the Canadian Human Rights Act
• Employment Standards Legislation
• Employment Equity Act
• Official Languages Act
• Personal Information Protection and Electronic Documents Act

Question 19

Mandated Requirement for Legal Compliance

Answer 19

Laws establish the basic ground rules for responsible business activities

Question 20

Voluntary Responsibilities

Answer 20

• Cause-related marketing: Ties an organizations product(s) to a social concern through a marketing program.
• Strategic philanthropy: The synergistic and mutually beneficial use of core competencies and resources to deal wit stakeholders, benefit the company and society.

Question 21

Institutionalization in Buiness Ethics

Answer 21

Involves embedding values, norms, and artifacts in organizations, industries, and society

• Failure to understand highly appropriate core practices provides the opportunity for unethical conduct
• Institutionalization of business ethics has advanced rapidly in past 20 years