updated business ch1

What is the fundamental definition of personal ethics?

Ethics means choosing what is right or wrong—acting honestly, fairly, and responsibly—even when nobody is watching.

What four self-reflection questions should be asked before acting to ensure an action is ethical?

1) Am I being honest? 2) Is this fair to others? 3) Could my decision harm someone? 4) Would I be comfortable explaining my action openly?

What five fundamental ethical principles govern professional accountants under the ACCA framework?

Integrity, objectivity, competence and due care, confidentiality, and professional behavior.

Under the Institute of Internal Auditors (IIA) framework, what ethical principle requires auditors to report evidence-based findings despite management pressure?

Objectivity and due professional care.

According to the SHRM code of ethics, what action must an HR professional take if a personal relative applies for a job?

Disclose the personal relationship, manage the conflict of interest, and ensure recruitment follows objective job criteria.

What is the primary ethical obligation of engineering professionals according to the NSPE?

Hold paramount the safety, health, and welfare of the public.

Under World Medical Association (WMA) ethical standards, what step is required before initiating patient treatment?

Obtaining informed consent while respecting patient autonomy and prioritizing welfare.

In Buddhist ethics, what is the meaning of the key principle of "Right Livelihood"?

Earning a living through work that avoids causing harm, exploitation, or deception to others.

What are the Five Precepts (សីលប្រាំ) in lay Buddhist ethics?

Refraining from: 1) killing living beings, 2) taking what is not given (stealing), 3) sexual misconduct, 4) false speech, and 5) intoxicants leading to carelessness.

How do the Buddhist Eight Precepts (សីលប្រាំបី) extend beyond the Five Precepts?

By adding refraining from eating after noon, engaging in entertainment/beautification, and using high or luxurious beds/seats.

How does the scope of general ethics differ from business ethics?

General ethics applies to all areas of life, whereas business ethics specifically focuses on decisions, behaviors, and relationships in business and the workplace.

What is the definition of business ethics?

The application of moral principles and ethical standards to business decisions, policies, and workplace behavior.

What does the business ethics principle of "Morality" require a company to do regarding defective or unsafe products?

Refuse to produce or sell unsafe products, even when selling them would be profitable.

How does the principle of "Fairness" apply to human resource management?

Recruiting, evaluating, and promoting employees based on merit, competence, and performance using objective criteria.

What does the principle of "Confidentiality" obligate employees to do regarding customer data?

Protect customer records from unauthorized access and share information only with authorized persons for legitimate business purposes.

What are the three core values of Microsoft's Trust Code?

Respect, Integrity, and Accountability.

In corporate frameworks like Microsoft's Trust Code, what ethical responsibility is owed to investors and the public?

Keeping accurate financial records, communicating honestly, preventing insider trading, and protecting company assets.

What distinguishes a legal rule (law) from an organizational policy?

Laws are legally binding rules established and enforced by government authorities, whereas policies are internal rules established and enforced by a specific organization.

What core question distinguishes ethics from law and organizational policy?

Ethics asks "What is the right thing to do?" (whereas law asks "What is legally required?" and policy asks "What does the organization require?").

What is the primary risk of an unethical decision when no formal law or organizational policy is broken?

Loss of public trust, reputational damage, and weakened stakeholder support.

What is Corporate Social Responsibility (CSR)?

The commitment of a business to manage and take responsibility for its broader social, economic, and environmental impacts.

How does morality differ from ethics in professional contexts?

Morality refers to individual personal beliefs and values, while ethics refers to shared professional standards and rules of conduct.

How does high business ethics impact customer relationships?

It builds public confidence and customer loyalty, encouraging repeat business.

Why is business ethics essential for human resource management?

It helps attract and retain skilled talent by supporting safety, fairness, and workplace morale.

How does commitment to business ethics lower an organization's risk profile?

It supports regulatory compliance and reduces internal misconduct, fraud, legal penalties, and operational losses.

What main ethical responsibility do financial institutions owe to borrowers?

Treating borrowers fairly by transparently disclosing interest rates, fees, loan terms, and repayment risks before agreements are signed.

What ethical issue must manufacturing managers address regarding factory production targets?

Ensuring workers are provided with necessary safety equipment and that safety procedures are never bypassed to meet quotas.

What primary ethical duty governs non-governmental organizations (NGOs) and charities regarding funding?

Spending donated funds responsibly on designated social projects and reporting expenses transparently.

What ethical challenge must family-owned businesses manage when hiring staff?

Managing conflicts of interest by hiring based on applicant qualifications rather than automatically favoring family relatives.

What main ethical duty do educational institutions owe to students during assessments?

Maintaining academic integrity and grading students using consistent, unbiased criteria without favoritism.

Why is globalization a critical context for business ethics?

Because business decisions cross international borders where laws, cultural standards, and labor expectations differ.

What ethical responsibility does a global corporation have when operating in countries with weak labor enforcement?

Auditing and ensuring safe, fair working conditions and stopping harmful labor practices throughout its supply chain.

How should a purchasing manager handle local gift customs in international trade?

Respect cultural norms while strictly adhering to clear corporate policies on gift registration and conflict-of-interest controls.

What is the core expectation that society now holds regarding corporate profit?

Society expects companies to earn profits while acting honestly, treating stakeholders fairly, and managing environmental and social impacts.

In supply chain management, what is the modern expectation beyond unit price?

Checking whether suppliers treat workers fairly and avoid hazardous practices, rather than evaluating vendors solely on price.

Why are charitable donations insufficient to establish an organization's ethical standing?

Because donations cannot compensate for dishonest core business sales, mistreatment of workers, or unaddressed environmental harm.

What function does a remuneration committee serve in ethical corporate governance?

Reviewing sales and executive incentives to ensure compensation structures do not encourage dishonest behavior or excessive risk-taking.

What is the purpose of an accessible workplace grievance channel?

Allowing employees to raise ethical concerns or report harassment confidentially with guaranteed protection against retaliation.

What are the four key operational areas where values-based management should be applied?

Recruitment, sales practices, leadership, and incentive rewards.

What is risk-based ethics management?

Proactively identifying workplace situations that create temptation for unethical behavior and introducing preventive and detective controls.

What warning sign in sales data indicates potential ethical risk in sales practices?

High sales target achievement accompanied by high customer complaint rates regarding unexpected fees or misrepresentation.

What primary obligation do professional accountants owe to society?

Serving the public interest by providing accurate, objective, and transparent financial information.

What action must an accountant take upon discovering a duplicate expense entry that understates reported profits?

Verify the records and correct the duplicate entry so financial statements accurately state net profit.

If a company executive uses corporate funds for personal travel, what is the accountant's duty?

Record the facts accurately and refer the matter through proper channels for governance review.

Why must professional auditors clarify service limitations to company management?

To set realistic expectations that audits rely on selective transaction testing rather than absolute verification of every single entry.

What is the difference between an ethics risk and an ethics opportunity?

An ethics risk is potential harm from misconduct (e.g., fraud, bribery), whereas an ethics opportunity is potential gain in trust, reputation, and loyalty from responsible conduct.

What defines a corporate "culture of integrity"?

An organizational environment where employees consistently make ethical choices, even under target pressure or when unsupervised.

What six core practices develop an organizational culture of integrity?

1) Leadership by example, 2) Clear standards, 3) Practical ethics training, 4) Safe reporting channels, 5) Fair accountability, and 6) Ethical incentives.

What is corporate governance?

The system of rules, practices, structures, and processes by which an organization is directed, overseen, and held accountable.

What key role does an Audit Committee play in corporate governance?

Overseeing financial reporting integrity, internal control systems, and internal/external audit functions.

What is the key functional distinction between operational management and internal audit regarding internal controls?

Management owns and implements internal controls, whereas internal audit independently evaluates their effectiveness.

What five steps are required under good governance when a purchasing manager faces a supplier conflict of interest?

1) Disclosure of relationship, 2) Independent bid evaluation, 3) Manager withdrawal from decision, 4) Documented reasoning, and 5) Independent review/approval.

What percentage of Gen Z respondents report feeling anxious about climate change?

62%

What percentage of Gen Z respondents state that purpose-driven work is important to overall job satisfaction?

86%

What percentage of Gen Z respondents believe businesses must ensure technology like AI is used ethically?

65%

What ethical concern must businesses address when using AI tools in applicant recruitment?

Auditing automated recruitment algorithms to prevent systemic bias and improper rejection of qualified candidates.

What percentage of Gen Z respondents reported experiencing harassment or microaggressions at work in the past year?

61%

What specific data confidentiality rule must employees follow when using public AI software for daily tasks?

Refraining from uploading confidential company or customer information into unapproved public AI tools.