1. The Enron scandal illustrates the difference between unethical behavior and illegal
behavior.
2. Ethical behavior requires more than following the law.
3. Legal behavior and ethical behavior are basically the same.
4. A society gets into trouble when people consider only what is illegal and not also what is
ethical or unethical.
5. Ethical behavior refers to the standards that are accepted by society as right or wrong.
6. People should look at each situation individually and decide for themselves if it is right or
wrong.
7. Given the level of diversity within the United States, agreement on common standards of
ethical behavior is unachievable.
8. An accurate statement regarding this chapter is: “Business law establishes ethical
behavior.”
9. Legal behavior is directly related to our relationships with others, while ethical behavior is
not.
10. Legal behavior is a first step toward ethical behavior.
11. Laws that protect us from fraud, theft and violence determine ethical behavior.
12. Moral behavior refers to behavior that is accepted by society as right versus wrong.
13. Ethical behavior focuses on treating others fairly.
14. Making accounting records more transparent may help restore trust in the free-market
system and leaders in general.
15. Punishing business leaders who have broken the law may help restore trust in the free-
market system and leaders in general.
16. Making businesspeople more accountable for company actions may help restore trust in
the free-market system and leaders in general.
17. People involved in business may be tempted to do something unethical in order to
increase sales and profits, but rarely do because if they are caught, our legal system will deal
harshly with them.
18. Jake and his college friends frequent a small pub on weekends. Last weekend, after a few
beers, one of his friends decided to take the salt and pepper shakers from their table because
they needed a set at their apartment. In this situation, this was not a particularly questionable
activity because it was a restaurant where one pays for these extras.
19. Ethical behavior involves the clear and easy choice of right and wrong actions toward
others.
20. Both managers and workers cite low managerial ethics as a major cause of American
businesses’ competitive woes.
21. A common form of cheating in schools today is plagiarizing online material.
22. Making ethical choices is always easy.
23. Two recent studies found a strong correlation between academic dishonesty among
undergraduates and dishonesty at work.
24. The question “Is it legal?” establishes ethical behavior.
25. It can be very difficult to maintain a balance between ethics and goals such as pleasing
stakeholders.
26. Trying to make decisions that will benefit all parties involved is consistent with the
question “How will it make me feel about myself?”
27. While telling an abusive joke about an ethnic group may not be unlawful, it is unethical.
28. An ethical manager’s decisions are based only on the following questions: “Is it legal?”
and “Is it profitable?”
29. Behavior that is in conflict with your values and sense of right and wrong can damage
your self-esteem.
30. When facing an ethical dilemma, it is often helpful to discuss the situation with your
supervisor because ethical decisions will always withstand scrutiny.
31. Business behavior determines the ethics of society. We can improve society’s moral and
ethical behavior by first making a commitment to improving business’s moral and ethical
behavior.
32. Utilizing the phrase “the ends justify the means” as a corporate value system can
negatively impact company morale and competitiveness.
33. According to the Making Ethical Decisions box, after ex-cons have completed their
sentences, they should not be allowed to start their own businesses.
34. Barney extends his lunch break beyond the allotted time. Wilma uses the office telephone
for unauthorized personal phone calls. Fred misrepresents his product to a potential customer.
All of these are examples of unethical behavior.
35. In reality, ethical behavior depends on the situation. For example, in negotiating a
contract with your employees, the way they win higher wages is by your losing the fight to hold
down labor costs. You realize it is a win-lose relationship.
36. You are in a business meeting at work that requires your group to make an ethical
decision. Your willingness to post the final decision on the bulletin board in the break room for all
to see passes the test: “How will it make me feel about myself?”
37. As the human resources director for your company, it is your job to evaluate the
company’s benefits plan. Although several workers utilize the company day care facility, the
facility costs the firm considerably more than another benefit might cost, such as having an on–
site physician. The on-site physician services are supported by insurance, and the physician
actually rents space from the company. Under these circumstances, eliminating the day care is a
balanced
decision.
38. On her company website, Ali asks customers who fill orders to place a check-mark in a
box if they are willing to let her share their information with her suppliers. By asking this
question, Ali is addressing privacy issues, and covering her actions in case someone should try to
sue her for sharing private information. She is responding to the question, “Are my proposed
actions legal?”
39. Trust between workers and managers must be based on a foundation of fairness, honesty,
openness, and moral integrity.
40. A growing number of people feel that an employee’s ethics are a personal matter, and
have nothing to do with management.
41. The majority of CEOs believe that employee misconduct results from the failure of
organizational leadership to establish ethical standards.
42. Management can create an environment in which unethical behavior can develop.
43. Corporate values, like personal values, are learned by observing what others do.
44. Effective corporate values start with employees and develop throughout the organization
to include top management.
45. In order to maintain a good reputation, it is good strategy to manage your business
ethically.
46. A business should be managed ethically to keep existing customers and attract new
customers.
47. One good reason for managing a business ethically is to help reduce employee turnover.
48. In order to do the right thing for all stakeholders, a business should be managed ethically.
49. Overly ambitious business goals and employee incentives can lead to unethical behavior.
50. An
ethic of justice
is based on a sense of responsibility to reduce actual harm or
suffering.
51. An
ethic of care
is based on a sense of responsibility to reduce actual harm or suffering.
52. An
ethic of care
is based on principles like justice, fairness, equality, or authority.
53. Employers should proceed cautiously when designing an employee incentive program
that rewards employees strictly on increased sales.
54. “Do what I say, not what I do” can be an effective code of conduct to instill corporate
values.