Ethics Exam One

Ethics

Moral principles guiding right and wrong behavior.

Law

Rules enforced by the government.

Fraud Triangle

A model explaining the three components that lead to fraud: Pressure, Opportunity, and Rationalization.

Motivation

Financial or performance-based stress that pushes someone toward committing fraud.

Opportunity

Lack of oversight or weak controls that allow fraud to occur.

Rationalization

Mental justification for unethical behavior.

Ethical Awareness

Recognizing an issue as ethical and being able to act accordingly.

Consequentialism

An ethical approach focused on outcomes, advocating for the greatest good for the greatest number.

Deontological Ethics

An ethical approach that emphasizes rules and duties regardless of outcomes.

Virtue Ethics

An ethical approach focusing on character and moral integrity.

Kohlberg’s Moral Reasoning Theory

A theory with three levels: Preconventional, Conventional, and Postconventional moral reasoning.

Milgram’s Experiment

A study revealing that individuals will follow authority figures even to the extent of harming others.

Dark Triad

A set of three personality traits: narcissism, Machiavellianism, and psychopathy, associated with unethical behavior.

Locus of Control

The degree to which individuals believe they can control events affecting them.

Cognitive Dissonance

Mental discomfort experienced from holding contradictory beliefs or behaving inconsistently with one's values.

Moral Disengagement

The process by which individuals convince themselves that ethical standards do not apply to them in a particular context.

Confirmation Bias

The tendency to seek out and interpret information that confirms preexisting beliefs while ignoring contradictory evidence.

Dunning-Kruger Effect

A cognitive bias in which people with low ability in a subject overestimate their competence.

Loss Aversion

The psychological phenomenon where losses are felt more intensely than equivalent gains.

Sunk Cost Fallacy

The tendency to continue an unwise decision due to prior investments.

Organizational Culture

The shared values, norms, and practices within an organization that shape the behavior of its members.

Formal Systems

Policies, codes of conduct, and leadership messaging that influence ethical behavior.

Informal Systems

Workplace norms and social expectations that affect ethical culture.

Ford Pinto Case

An ethical issue where Ford prioritized profit over safety by not fixing a deadly design flaw.

Theranos

A company that misled investors and patients about the effectiveness of its technology.

Atlanta Cheating Scandal

An incident where teachers altered test scores under pressure, illustrating ethical breakdowns.

Uber’s Ethical Issues

A toxic workplace culture that led to ignoring harassment claims and breaking laws.

Wells Fargo Fraud

The unethical practice of pressuring employees to open fraudulent accounts to meet sales quotas.