Instructor’s Manual and Test Bank for
Boatright
Ethics and the Conduct of Business Eighth Edition
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CONTENTS 1. Chapter One Ethics in the World of Business........................................................................................1 2. Chapter Two Ethical Decision Making...................................................................................................7 3. Chapter Three Ethical Theories...............................................................................................................13 4. Chapter Four Whistle-Blowing..............................................................................................................18 5. Chapter Five Trade Secrets and Conflict of Interest..............................................................................24 6. Chapter Six Privacy.............................................................................................................................30 7. Chapter Seven Discrimination and Affirmative Action...........................................................................35 8. Chapter Eight Employment Rights.........................................................................................................41 9. Chapter Nine Occupational Health and Safety.....................................................................................47 10. Chapter Ten Marketing, Advertising, and Product Safety..................................................................53 11. Chapter Eleven Ethics in Finance............................................................................................................58 12. Chapter Twelve Corporate Social Responsibility.....................................................................................63 13. Chapter Thirteen Corporate Governance and Accountability....................................................................68 14. Chapter Fourteen International Business Ethics…….................................................................................74
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Chapter 1 Ethics in the World of Business Chapter Summary Business ethics is concerned with identifying and understanding the ethical issues that arise in business, along with the development of knowledge and skills needed by a practicing manager to address these issues and to make sound business decisions. Ethical issues are an inevitable element of business decision making, and they are deeply intertwined with managerial practice and economic activity in general. The success of individual managers, business organizations, and the whole economic system depend upon sound ethical decision making. Although economics and law are important guides for business decision making, they are not entirely sufficient. Organizational research conducted by psychologists and sociologists further show that the treatment of business ethics from a purely philosophical perspective is likewise an insufficient approach. Organizational misconduct is often the result of flaws in individual and organizational decision making that can be corrected only by changing the overall decision making process. Practicing managers can promote an ethical organizational culture by actively discouraging misconduct and rewarding ethical decision making and conduct. CHAPTER OBJECTIVES 1.1: Identify ethical issues created by diverse business situations and relationships and the level of decision making required to address them 1.2: Recognize the role of ethics in the conduct of business, with respect to economic principles and the law 1.3: Distinguish between ethical management and the management of ethics, and each of the three main roles of a manager 1.4: Analyze how ethical business conduct is challenged by decision making on individual and organizational levels SUGGESTED DISCUSSION PROMPTS 1. What types of ethical concerns do decision-makers at the management level need to take into account? 2. What types of ethical concerns do decision-makers at lower organizational levels need to take into account? 3. How would you respond to someone who says that a business should always do whatever is in its economic interests? 4. What is wrong with the thought that abiding by the law is all the ethics that a businessperson needs to worry about? 5. How does specialized knowledge come into play in the management of ethics?
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ASSESSMENT FOR IN-CLASS USE Multiple Choice Questions Choose the BEST possible answer for each of the following. 1. In many cases, rules of business ethics can be determined by _________ . A. applicable laws B. company guidelines C. economic requirements D. rules of conduct that apply in everyday life Correct Answer: D 1.1: Identify ethical issues created by diverse business situations and relationships and the level of decision making required to address them Topic/Concept: Business Decision Making Difficulty Level: Easy Skill Level: Understanding 2. The economic character of business can be seen in its _________ . A. trading characteristics B. ethical dimensions C. personal aspects D. legal guidelines Correct Answer: A 1.1: Identify ethical issues created by diverse business situations and relationships and the level of decision making required to address them Topic/Concept: Business Decision Making Difficulty Level: Easy Skill Level: Understanding 3. Organization in business is characterized mainly by its ________ . A. rules B. hierarchy C. profits D. products Correct Answer: B 1.1: Identify ethical issues created by diverse business situations and relationships and the level of decision making required to address them Topic/Concept: Business Decision Making
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Difficulty Level: Easy Skill Level: Understanding 4. Decision making in business occurs at various distinctive ________ . A. places B. levels C. objectives D. profits Correct Answer: B 1.1: Identify ethical issues created by diverse business situations and relationships and the level of decision making required to address them Topic/Concept: Business Decision Making Difficulty Level: Easy Skill Level: Understanding 5. If a business manager decides to proceed with a course of action although the manager has information that suggests the need to rethink the decision, the manager is being influenced by A. anchor heuristic B. confirmation bias C. sunk cost bias D. adjustment heuristic Correct Answer: C 1.4: Analyze how ethical business conduct is challenged by decision making on individual and organizational levels Topic/Concept: Ethics in Organizations Difficulty Level: Moderate Skill Level: Application 6. Economic reasoning describes how we _________. A. ought to reason B. prioritize our desires C. reason when pursuing our goals D. would reason if we could have whatever we wanted Correct Answer: C 1.2: Recognize the role of ethics in the conduct of business, with respect to economic principles and the law Topic/Concept: Ethics, Economics, and Law Difficulty Level: Easy Skill Level: Understanding
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