Lesson 3: Ethics

Question 1

May be defined as the study of what is good or right for human beings. It asks what
goals people ought to pursue and what actions they ought to perform.

Answer 1

Ethics

Question 2

It is a
branch of applied ethics; it studies the relationship of what is good and right for business
(Hoffman, Frederick & Schwartz, 2014).

Answer 2

Business ethics

Question 3

It is defined as the principles, values and beliefs that define what is right and wrong
behavior (Robbins & Coulter, 2016).

Answer 3

Ethics

Question 4

Ethics is difficult to define in a precise way. In a general sense, ethics is the code of moral
principles and values that governs the behaviors of a person or group with respect to what
is right or wrong. Ethics sets standards as to what is good or bad in conduct and decision
making. Ethics deals with internal values that are a part of corporate culture and shapes
decisions concerning social responsibility with respect to the external environment. An
ethical issue is present in a situation when the actions of a person or organization may harm
or benefit others

Answer 4

(Daft, 2008).

Question 5

They refer to a person’s personal philosophies about what is right or wrong. It is
personal or singular. They relate to you and you alone.

Answer 5

Morals

Question 6

It comprises organizational principles, values, and norms that may
originate from individuals, organizational statements, or from the legal system that
primarily guide individual and group behavior in business.

Answer 6

Business ethics

Question 7

They are specific and pervasive boundaries for behavior that should not be
violated. They often become the basis for rules. Some examples
could include human rights, freedom of speech and fundamentals of justice.

Answer 7

Principles

Question 8

They are enduring beliefs and ideals that are socially enforced. Several desirable or
ethical values for business today are teamwork, trust and integrity. Such _ are
often based on organizational or industry best practices.

Answer 8

Values

Question 9

It is defined as behavior or decisions made within a group’s values – decisions
made in the course of business by groups of people that represent the business
organization.

Answer 9

Ethics

Question 10

Values and standards are written into the legal system and
enforceable in the courts. In this area, lawmakers set rules that people and corporations
must follow in a certain way, such as obtaining licenses for cars or paying corporate taxes

Answer 10

Domain of codified law

Question 11

It is at the opposite end of the scale and pertains to behavior about
which the law has no say and for which an individual or organization enjoys complete freedom. A manager’s choice of where to eat lunch or a music company’s choice of the
number of CDs to release is an example of it.

Answer 11

Domain of free choice

Question 12

This domain has
no specific laws, yet it does have standards of conduct based on shared principles and values about moral conduct that guide an individual or company.

Answer 12

Domain of ethics

Question 13

They involve a conflict between the needs of the part and the whole—the
individual versus the organization or the organization versus society as a whole. For example,
should a company implement mandatory alcohol and drug testing for employees, which might
benefit the organization as a whole but reduce the individual freedom of employees? Or should
products that fail to meet tough FDA standards be exported to other countries where
government standards are
lower, benefiting the company but potentially harming world citizens?

Answer 13

Ethical dilemma

Question 14

The stage of moral development is divided into three levels, each having two stages

Answer 14

pre-conventional level, conventional level and principled level

Question 15

Managers at this level would use an autocratic or coercive leadership style, with employees oriented toward dependable accomplishment of
specific tasks.

Answer 15

Preconventional

Question 16

Sticking to rules to avoid physical punishment

Answer 16

Preconventional

Question 17

Following rules only when doing so is in your immediate interest

Answer 17

Preconventional

Question 18

At this level, meeting social and interpersonal obligations is
important. Work group collaboration is the preferred manner for accomplishment of
organizational goals, and managers use a leadership style that encourages interpersonal
relationships and cooperation.

Answer 18

Conventional

Question 19

Living up to what is expected by people close to you

Answer 19

Conventional

Question 20

Maintaining conventional order by fulfilling obligations to which you have agreed

Answer 20

Conventional

Question 21

At this level, individuals are
guided by an internal set of values and standards and will even disobey rules or laws that
violate these principles. Internal values become more important than the expectations of
significant others.

Answer 21

Principled or postconventional level

Question 22

Valuing rights of others and upholding absolute values and rights regardless of the majority’s opinion

Answer 22

Principled

Question 23

Following self-chosen ethical principles even if they violate the law

Answer 23

Principled

Question 24

two individual characteristics that play an important role
whether a person behaves ethically

Answer 24

values and personality

Question 25

They represent basic
convictions about what is right and wrong. They develop from a young age based on
what we see and hear from parents, teachers, friends, and others.

Answer 25

Values

Question 26

Two personality variables have been found to influence an individual’s actions according to
his or her beliefs about what is right or wrong:

Answer 26

ego strength and locus of control

Question 27

It measures the strength of a person’s convictions. People with high _ are likely to
resist impulses to act unethically and instead follow their convictions.

Answer 27

Ego strength

Question 28

It is the
degree to which people believe they control their own fate.

Answer 28

Locus of control

Question 29

People with an _ believe they control their own destinies. They’re more likely to take responsibility for
consequences and rely on their own internal standards of right and wrong to guide their
behavior. They’re also more likely to be consistent in their moral judgments and actions.

Answer 29

internal locus of
control

Question 30

People
with an _ believe what happens to them is due to luck or chance. They’re
less likely to take personal responsibility for the consequences of their behavior and more likely
to rely on external forces.

Answer 30

external locus of control

Question 30

It is the “perceived relevance or importance of an ethical issue to an
individual or work group. It reflects the ethical sensitivity of the individual or work group that
triggers the ethical decision-making process”

Answer 30

Ethical issue intensity

Question 30

It is the “set of values, norms, and artifacts, including ways of solving problems
that members (employees) of an organization share. It is also “the shared beliefs
top managers in a company have about how they should manage themselves and other
employees, and how they should conduct their business(es).”

Answer 30

Corporate culture

Question 31

Six characteristics that determine issue
intensity:

Answer 31

1) greatness of harm; 2) consensus of wrong; 3) probability of harm; 4) immediacy of
consequences; 5) proximity to victim/s; and 6) concentration of effect

Question 32

Under this approach, a decision maker is expected to
consider the effect of each decision alternative on all parties and select the one that optimizes
the satisfaction for the greatest number of people”

Answer 32

Utilitarian approach

Question 33

It contends that “acts are moral when they promote the individual’s
best long-term interests. Individual self-direction is paramount, and external forces that restrict
self-direction should be severely limited. Individuals calculate the best long-term advantage to
themselves as a measure of a decision’s goodness. The action that is intended to produce a
greater ratio of good to bad for the individual compared with other alternatives is the right one to perform (Daft, 2016, p. 142).

Answer 33

Individualism approach

Question 34

This approach asserts that “human beings have
fundamental rights and liberties that cannot be taken away by an individual’s decision. Thus, an
ethically correct decision is one that best maintains the rights of those affected by it.

Answer 34

Moral-rights approach

Question 35

Individuals are to be treated only as they knowingly and freely
consent to be treated.

Answer 35

The right of free consent

Question 36

Individuals can choose to do as they please away from work and have
control of information about their private life.

Answer 36

The right to privacy.

Question 37

Individuals may refrain from carrying out any order that
violates their moral or religious norms.

Answer 37

The right of freedom of conscience.

Question 38

Individuals may criticize truthfully the ethics or legality of actions of
others.

Answer 38

The right of free speech.

Question 39

Individuals have a right to an impartial hearing and fair treatment.

Answer 39

The right to due process.

Question 40

Individuals have a right to live without endangerment or
violation of their health and safety.

Answer 40

The right to life and safety.

Question 41

This approach holds that “moral decisions must be based on standards of equity, fairness,
and impartiality.

Answer 41

Justice approach

Question 42

It requires
that different treatment of people not be based on arbitrary characteristics. Individuals who are
similar in ways relevant to a decision should be treated similarly. Thus, men and women should
not receive different salaries if they are performing the same job.

Answer 42

Distributive justice

Question 43

It requires that rules be
administered fairly. Rules should be clearly stated and be consistently and impartially enforced.

Answer 43

Procedural justice

Question 44

It argues that individuals should be compensated for the cost of their
injuries by the party responsible. Moreover, individuals should not be held responsible for
matters over which they have no control.

Answer 44

Compensatory justice

Question 45

“The selection process (interviews, tests, background checks, and so
forth) should be viewed as an opportunity to learn about an individual’s level of moral
development, personal values, ego strength, and locus of control. However, a carefully
designed selection process isn’t foolproof and, even under the best circumstances,
individuals with questionable standards of right and wrong may be hired. That means
having other ethics controls in place” (Robbins & Coulter, 2016, p. 197).

Answer 45

Employee selection

Question 46

“Uncertainty about what is and is not ethical can be a problem for
employees. A code of ethics, a formal statement of an organization’s values and the ethical
rules it expects employees to follow, is a popular choice for reducing that ambiguity”
(Robbins & Coulter, 2016, p. 197).

Answer 46

Code of ethics

Question 47

“Doing business ethically requires a commitment from managers at all
levels, but especially the top level. Why? Because they’re the ones who uphold the shared
values and set the cultural tone. They’re role models in terms of both words and actions, though what they do is far more important than what they say. If top managers, for
example, take company resources for their personal use, inflate their expense accounts, or give favored treatment to friends, they imply that such behavior is acceptable for all
employees” (Robbins & Coulter, 2016, p. 199).

Answer 47

Ethical leadership

Question 48

Robbins & Coulter (2016) cautioned against
unrealistic goals as employees might do everything necessary, even do unethical acts, to
meet those goals. “If performance appraisals focus only on economic goals, ends will begin
to justify means. To encourage ethical behavior, both ends and means should be evaluated.
For example, a manager’s annual review of employees might include a point-by-point
evaluation of how their decisions measured up against the company’s code of ethics as well
as how well goals were met (Robbins & Coulter, 2016, p. 200).

Answer 48

Job goals and performance appraisal

Question 49

To encourage ethical behavior, most organizations are setting up seminars,
workshops, and similar ethics programs. Robbins & Coulter (2016) points out that a primary
concern with ethics training is whether ethics can be taught. Critics stress that the effort is
pointless because people establish their individual value systems when they’re young.
However, studies have shown that values can be learned after early childhood. In addition,
proponents cite evidence that shows that teaching ethical problem solving can make an
actual difference in ethical behaviors (Robbins & Coulter, 2016, p. 200).

Answer 49

Ethics training

Question 50

“The fear of being caught can be an important deterrent to
unethical behavior. Independent social audits, which evaluate decisions and management
practices in terms of the organization’s code of ethics, increase that likelihood. Such audits
can be regular evaluations or they can occur randomly with no prior announcement”
(Robbins & Coulter, 2016, p. 200).

Answer 50

Independent social audits

Question 51

“Employees who face ethical dilemmas need protective
mechanisms so they can do what’s right without fear of reprimand. An organization might
designate ethical counselors for employees facing an ethics dilemma. These advisors also
might advocate the ethically “right” alternatives. Other organizations have appointed ethics
and compliance officers who design, direct, and modify the organization’s
ethics/compliance programs as needed. In fact, many organizations have raised the visibility
of their compliance officers, even to the point of being a direct report to the CEO” (Robbins
& Coulter, 2016, p. 201).

Answer 51

Protective mechanisms