Chapter 1:

1. Critically evaluate the proposition that business ethics is an oxymoron.

 business is often seen to be in some way unethical or at best, amoral (=outside of our
normal moral considerations)
 business ethics is the study of business situations, activities and decisions where issues
of right and wrong [in a moral sense] are addressed

2. Business ethics is of no practical importance to managers. Debates about right and

wrong should be left in the classroom.' Critically evaluate this statement using examples
where appropriate.
Reasons why this concept is important for managers:
 Power and influence of business in society is huge
 Business may contribute positively to the society
 Malpractices have the potential to inflict enormous harm

3. What is the relationship between business ethics and the law?

There is considerable overlap between ethics and the law. In fact, the law is essentially an
institutionalization or codification of ethics into specific social rules, regulations and
restrictions. Nevertheless, the two are not the same. Business law can be said to begin
where the law ends, the grey areas.
Example: just as there is no law preventing you from being unfaithful to your partner, so
there is no law in many countries preventing business from testing their products on
animals, an issue which many feel strongly about. In addition, driving on the right side of
the road is a law but it is not seen as an ethical issue.

4. Business ethics do not really matter to small firm owners. They will get away with
whatever they can in order to succeed.' Critically examine why such a view of small firms
might be pervasive and whether it is likely to be accurate.
There is less social control on small firms compared to multinationals who have constant
media attention. If an ethical issue occurs at a multinational, media immediately covers
this. Small business owners might believe that if they do something unethical, no one is
going to find out. Maybe it is true. Maybe they can get away with it on the short term, but
the past always catches up with you and this will have a negative effect on your business.
Moreover, if you as a small firm owner promote that you are ethical, no matter how small
your client base is, it will positively influence your business; increased productivity, greater
customer loyalty, positive brand image, avoiding negative publicity, opening up
opportunities.

1
(3) (1) What is globalization and (2) why is it important for understanding business ethics?
(3) Select one multinational corporation based in your home country and set out the
different ways in which globalization might have implications for business ethics in that
corporation.
(1) Globalization is a process which diminished the necessity of a common and shared
territorial basis for social, economic, and political activities, processes, and relations.
(2) Globalization as defined in terms of deterritorialization of economic activities is
particularly relevant for business ethics, evident in three main areas: culture, law, and
accountability
 Cultural: although globalization results in the deterritorialization of some processes
and activities, in many cases there is still a close connection between the local
culture, including moral values, and a certain geographical region.
 Legal: if business ethics largely begins where the law ends, then deterritorialization
increases the demand for business ethics because deterritorialized economic
activities are beyond control of the national (territorial) governments.
 Accountability: globalization leads to a growing demand for corporate
accountability.
The more economic activities get deterritorialized, the less governments can control
them, and the less they are open to democratic control by the affected people.
(3) The Dutch multinational Heineken has beer breweries all over the world. The issue of
beer promoters working in Cambodia under poor working conditions is an ethical
issue caused by globalization.

5. (1) What is sustainability? (2) To what extent do you think it is possible for corporations
in the following industries to be sustainable? Explain your answers.

(1) Sustainability refers to the long-term maintenance of systems according to

environmental, economic and social considerations.

(a) Tobacco industry.

No. Firstly, in some countries tobacco growing has lead to extensive land
clearance and deforestation to make room for new crops, and to provide
timber to fuel the heaters used to dry the tobacco leaf following harvest.
Secondly, all phases of tobacco production have the potential to ontribute to
climate change, from farming to curing the leaf (which for some kinds of
tobacco requires the use of heat generated by wood, oil, coal or gas), and the
manufacturing process.

(b) Oil industry.

Yes. We all use oil. We're all part of the problem. Therefore the "oil company" really
only gets part of the blame. And incidentally, oil is not all bad. It's pretty darn useful
stuff.
So yes, an "oil company" can be more sustainable, but it's really more about can
society as a whole get more "sustainable". You can only expect so much from an
oil company - or any company!
2
(c) Car industry.
Yes. Honestly, when thinking about car makers clean technologies and
sustainability aren’t the first thoughts that come into someone’s mind. But times
are changing! Besides some efforts in the development of hybrid or full electric
cars, currently numerous car producers switch to the implementation of bioplastics
into their vehicles and additionally explore the chances of different kinds of
biofuels.

3
 Chapter 2:
1. What are the main implications of the legal status of corporations for notions of
corporate social responsibility?
Corporations are separate entities in their own right. The corporation itself usually
owns the assets.
Corporations do indeed have some level of moral responsibility that is more than
the responsibility of the individuals constituting the corporation. Not only does the
legal framework of most developed countries treat the corporation as a ‘legal’ or
‘artificial’ person that has a legal responsibility for its actions, but the corporation
also appears to have moral agency of sorts that shape the decisions made by those
in the corporation.
In order to assign responsibility to corporations, it is necessary to show that a
corporation has:
1. Legal independence from their members
2. Agency independence from their members

2. 'Only human beings have a moral responsibility for their actions.' Critically assess
this proposition in the context of attempts to ascribe a moral responsibility to
corporations.
A corporation exists of a group of people working under the same roof. People
working in the corporation are making the decisions, not ‘the corporation’.
Therefore, also the corporation has moral responsibility for their actions, as the
actions are made by people.

3. (1) What is enlightened self-interest? (2) Compare and evaluate arguments for
corporate social responsibility based on enlightened self-interest with more
explicitly moral arguments.
(1) Enlightened self-interest is when to corporation takes on social responsibilities
insofar as doing so promotes its own self-interest.
(2) Corporations cause social problems (such as pollution), and hence have a
responsibility. However, they are getting rewarded (better brand image, loyal
customers etc.) for solving problems they’ve caused.

4
4. According to Archie Carroll, what are the four levels of corporate social
responsibility? How relevant is this model in a European, Asian, or African
context?
Philanthropic responsibilities: desired by society.  Be a good corporate citizen.
Example: because corporate taxes are higher in Europe than in the US, activities
such as funding/donating is less common in Europe than in the US.

Ethical responsibilities: expected by society.  Avoid harm. Obligation to do what

is right and fair.
Example: In North-America, where unlike in Europe, a consistent regulatory
framework for climate change has yet to be developed. Nevertheless, companies
feel pressure from stakeholders leading to voluntary initiatives. In the developing
world, ethical expectation are less widespread compared to economic and
philanthropic.

Legal responsibilities: required by society.  Obey the law

Example: In developing countries with weak or corrupt government, the legal level
is not a reliable standard of responsible behavior. In addition, Europeans tend to
have more concern (for greater mistrust) in corporations than other parts of the
world.

Economic responsibilities: required by society.  Make profit

Example: responsibility in the US is strongly focused on profitability and thus
especially looks at the responsibility to shareholders. In Europe and Asia tends to
define economic responsibility far more broadly and focuses, at least the same
extent (if not more), on the economic responsibility of corporations to employees
and local communities as well. In Africa, philanthropic responsibilities are nearly as
important as the economic level.

5. Explain the difference between normative, descriptive, and instrumental

versions of stakeholder theory. To what extent do stakeholders have intrinsic
moral rights in relation to the management of the corporation?

Normative stakeholder theory: attempts to provide a reason why corporations

should take into account stakeholder interest.

Descriptive stakeholder theory: attempt to make sure whether (and how)

corporations actually do take into account stakeholder interests.

Instrumental stakeholder theory: attempts to answer the question whether it is

beneficial for the corporation to take into account stakeholder interests.

Stakeholder theory can be justified on normative grounds, specifically its power to

satisfy the moral rights of individuals. The theory of the firm must be
reconceptualized "along essentially Kantian lines." This means each stakeholder
group has a right to be treated as an end in itself, and not as means to some other
end, "and therefore must participate in determining the future direction of the firm
in which [it has] a stake.
5
6. Define the extended view of corporate citizenship. Give examples to illustrate
the concept.
The extended perspective on CC – which ultimately sees the corporation as a
political actor governing the citizenship of individual stakeholders – helps up to
conceptualize the emerging role of corporations in the global economy, as well as
to clarify the ethical expectations (corporate accountability) increasingly placed
upon them.
1. Social rights (a.k.a. positive rights) provide the individual with the freedom to
participate in society.
Examples: the right to education and healthcare.
Example companies: many companies have pursued initiatives formerly
within the province of the welfare state: feeding homeless people, helping
teachers in management school budgets, enhancing employability of the
unemployment. Shell, Nike and Levi have improved the working conditions
in sweatshops, ensuring employees a living wage, providing schools and
medical centres.
2. Civil rights (a.k.a. negative rights) provide freedom from abuses and
interference by 3rd parties (especially the government).
Examples: the rights to own property, to engage in ‘free’ markets, or exercise
freedom of speech.
Example Shell: Shell discourages governments to live up to their
responsibility by possible role in the restriction of civil rights in Nigeria.
3. Political rights enable the individual to participate in the process of
governance beyond the sphere of his or her own privacy.
Examples: the right to vote or the right to hold office.

6
 Chapter 3:
1. What are ethical theories and why, if at all, do we need them?
- Ethical theories are rules and principles that determine right and wrong for a given
situation.
- We need ethical theories because
(1) in a business context, decisions need to be based on a rational and
understandable argument so that they can be defended, justified and explained to
relevant stakeholders.
- (2) if we believe an organization has done something wrong, we need a basis for
our case to argue

2. Is ethical theory of any practical use to managers? Assess the benefits and drawbacks
of ethical theory for managers in a global economy.
- Yes, ethical theories are of practical use to managers.
- Benefit: Managers can use ethical theories in a business context because decisions
need to be based on a rational and understandable argument so that they can be
defended, justified and explained to relevant stakeholders.

- Drawback: Ethical theories differ per country and this can give different
perspectives of what is right or wrong.

3. Define ethical absolutism, ethical relativism, and ethical pluralism. To what extent is
each perspective useful for studying and practicing business ethics?
Ethical absolutism assumes that there are eternal, universally applicable moral
principles and right and wrong are objective qualities that can be rationally
determined.

Ethical relativism claims that morality is context-dependent and subjective.

- Ethical relativism is different from descriptive relativism:
Descriptive relativism suggests that different cultures have different ethics
(e.g. religion), while ethical relativism proposes that both sets of beliefs can
be equally right.

For practical purposes of making effective decisions in business, both of these

positions are not particularly useful.

Ethical pluralism occupies a middle ground between absolutism and relativism.

Pluralism accepts different moral convictions and backgrounds, while suggesting that
a general agreement on basic principles and rules in certain social context can, and
should, be reached.

7
4. What are the two main families of Western modernist ethical theories? Explain the
difference between these two approaches to ethical theory.
Consequentialist theories base moral judgement on the outcome of a certain action. If
these outcomes are desirable, then the action in question is morally right <-> if the
outcomes of the action are not desirable, the action is morally wrong.

Non-consequentialist theories base the moral judgement on the underlying principles

of the decision maker’s motivation. According to these theories, an action is right or
wrong, not because we like the consequences they produce, but because the
underlying principles are morally right.

5. Which ethical theory do you think is most commonly used in business? Provide
evidence to support your assertion and give reasons explaining why this theoretical
approach is more likely than others to dominate business decisions.
Non-consequentialist Ethics, because even actions with bad outcomes (e.g. fire 100
employees) can be rated "good" because of their motivation (e.g. because otherwise
the company would go bankrupt and all 1000 employees would have to be fired)

6. Read the following case:

You are the manager of FoodFile, a busy city-centre restaurant catering mainly to
local office workers at lunchtimes and an eclectic, fashionable crowd of professionals
in the evenings. You are proud of your renowned food and excellent service. Most of
your staff have been with you since you opened three years ago-unusual in an
industry characterized by casual labor and high turnover. You consider this to be one
of the key factors in your consistency and success. Now, your head chef has come to
you and told you, in confidence, that she is HIV positive. She is very distressed and
you want to reassure her. However, you are troubled about her continuing to work
in the kitchens and are concerned about the effect this news could have on the other
staff, or even on your customers should they find out about her situation.

a) Using Figure 3.8, set out the main ethical considerations that are suggested by
each of the theories covered in this chapter.

b) Which theories are most persuasive in dealing with this dilemma?

c) What would you do in this situation and why?

8
 Chapter 4:
1. What is the difference between descriptive and normative ethical theories?
Descriptive business ethics seek to describe how ethical decisions are actually made in
business, and what influences the process and outcomes of those decisions.

Descriptive ethical theories provide an important addition to the normative theories.

Rather than telling us what businesspeople should do (which is the intention of the
normative theory), descriptive theories seek to tell use what businesspeople actually
do and why they do it.

2. Set out the four stages in Rest's (1986) ethical decision-making process. What
practical use is the model for managers seeking to understand ethical and unethical
behavior in their organizations?
1. Recognize moral issue
2. Make moral judgement
3. Establish moral intent
4. Engage in moral behavior
The stages are conceptually distinct, so that although one might reach one stage in the
model, but not necessarily move onto the next stage.

3. Is the prevalence of unethical behavior in business due to a few 'bad apples' or is it

more a case of good apples in bad barrels? How would your answer differ for
government or civil society organizations?
Individual = bad apple
Moral issue = bad case
Organizational environment = bad barrel

- I believe unethical behavior is due to both: bad apples and bad barrels. Ethical
decision-making is influenced by individual factors (age, gender, education,
employment, culture, nationality, psychological factors (CMD and locus of control,
personal values, personal integrity and moral imagination)).
- However, ethical decision-making is also influenced by situational factors related
to issue (moral intensity & moral framing), and context-related (rewards, authority,
bureaucracy, work role, organization culture and national context.
- My opinion is that in civil society organizations (compared with government)
situational factors have less influence than individual factors. Mainly because
employees of civil society organizations are working there for a reason: to
contribute to society. Therefore, I assume their personal values, personal integrity
and moral imaginations is more ethical than people working at the government.

9
4. Describe Kohlberg's theory of cognitive moral development and critically evaluate
its contribution to our understanding of ethical decision-making in organizations.
What are the main implications of the theory for business leaders?
- Cognitive moral development refers to the different levels of reasoning that an
individual can apply to ethical issues and problems.
- It contributes to our understanding of ethical decision-making because it is not so
much what is decided, but how the decision is reached.
- The main implications of the theory for business leaders is the fact that the
situational context in which employees might find themselves within their
organization is likely to be very influential in shaping their ethical decision-making,
e.g. be liked by your colleagues can influence a decision.
- In addition, individuals high in CMD are more likely to engage in whistle-blowing
behavior.

5. What are the two main types of issue-related factors in ethical decision-making?
What is the significance of these factors for managers seeking to prevent ethical
violations in their organizations?

Moral intensity: how important the issue is to the decision-maker.

This intensity varies according to 6 factors:
1. Magnitude of consequences (importance)
2. Social consensus (sum of harms/benefits)
3. Probability of effects
4. Temporal immediacy (speed with which the consequences are likely to occur)
5. Proximity (how close the decision-maker is with the issue)
6. Concentration of effect

Moral framing: how the issue is actually represented within the organization:
- Managers seeking to prevent ethical violations have to be aware of the two above
mentioned concepts.
- Some issues can be very important to the manager (high moral intensity), while
employees don’t recognize this importance and take decision-making regarding
this issue less serious.
- In addition, moral framing can be used by employees to make unethical decisions
seem less important.
- Managers have to recognize this in order to penalize unethical behavior.

6 strategies that can be used in moral reframing are:

1. Denial of responsibility
2. Denial of injury
3. Denial of victim
4. Social weighting
5. Appeal to higher loyalties
6. Metaphor of the ledger

10
6. What are the main impacts of bureaucracy on ethical decision-making? How would
you suggest that a highly bureaucratic organization could enhance its employees'
ethical decision-making?
The main (negative) impacts of bureaucracy on ethical decision-making are:
1. Suppression of moral autonomy
2. Instrumental morality
Bureaucracy focuses on achieving goals so morality will only be made
meaningful in terms of conformity to established rules for achieving those
goals.
3. Distancing
Bureaucracy distances us from the consequences of our actions, and thus
suppresses our morality.
4. Denial of moral status
Bureaucracy has been argued to consider moral objects, such as people or
animals as things.

- In order to enhance employees’ ethical decision-making in a highly bureaucratic

organization, I would suggest turning the above-mentioned negative impacts into
positive impacts.
- Rules can be loosened in order to free employees from suppression of moral
autonomy.
- Instead of using morality to establish rules, only make rules concerning standard
procedures and do not develop rules concerning decision-making.
- Furthermore, don’t consider animals and humans as things or traits.

11
 Chapter 5:
1. What are the main elements of business ethics management? To what extent are
they likely to be used in large versus small companies?
1. Mission or values statements All large and many small- and medium-sized
organizations have it (often fail to set out a very
specific social purpose).
2. Code of ethics It has been suggested that almost all large firms
have a code of ethics of some kind. In SME, codes
are less prevalent.
3. Reporting/advice channels Something like 50% of large firms have instituted
channels of this kind, although some EU
countries such as Germany and France prohibit
certain features of hotlines due to privacy
restrictions.
4. Risk analysis and Most companies not yet developed an integrated
management approach to risk and ethics.
5. Ethics managers, officers, In US common, in Europe and Asia less common.
and committees Large companies now have ethics or CSR
committee.
6. Ethics consultants
7. Ethics education and training
8. Stakeholder consultation, Are increasingly become accepted.
dialogue, and partnership
programmes
9. Auditing, accounting, and In Europe common, in US uncommon (e.g.
BodyShop, Shell)
reporting

2. What are codes of ethics and how useful are they for the management of business
ethics?
Codes of ethics are voluntary statements that commit organizations, industries, or
professions to specific beliefs, values, and actions and/or that set out appropriate
ethical behavior for employees.

Codes of ethics are useful for management of business ethics because they set out the
minimum expectations placed on organizations and their members. They are seen by
managers as a pragmatic necessity for running an organization in a complex society in
which moral concepts play an important part.

12
3. Set out the main types of relationship that corporations can have with their
stakeholders. Are any of these types preferable? Explain your answer with reference
to examples from current business practice.
1. Challenge  based on mutual opposition and conflict;
2. Sparring partners  based on ‘healthy conflict’ and periodic bouts of conflict.
3. One-way support  based on philanthropy, sponsorship, or other forms of
resource contribution from one party to the other.
4. Mutual support  based on formal and informal two-way support.
5. Endorsement  based on paid/unpaid public approval granted from one
partner to the other in relation to a specific product or programme.
6. Project dialogue  based on discussion between partners regarding specific
project or proposal.
7. Strategy dialogue  based on discussion between partners over longer-term
issues and development of overall strategy for organizations, industries, or
regulatory regimes.
8. Task force  based on cooperation to achieve a specific task.
9. Joint venture or alliance  based on formal partnership involving significant
mutual resource commitment to achieve specific goals.

- In my opinion, sparring partners is preferable because you compete against each

other in a friendly way that improves your company. One-way support can improve
your company’s image. Mutual support is also preferable.
- Actually, everything is preferable except for challenge.

4. What is social accounting and why do companies engage in it?

- Social accountability is the voluntary process concerned with assessing and
communicating organizational activities and impacts on social, ethical, and
environmental issues relevant to stakeholders.
- Companies engage in social accountability because:
1. Internal and external pressure
2. Identifying risks
3. Improved stakeholder management
4. New channel of communication to stakeholders: organizations might seek to
improve their reputation
5. Enhanced accountability and transparency

13
5. Assess the relative benefits and drawbacks of different approaches to ethics
management. Would you recommend that an organization emphasized a formal or
an informal approach to business ethics management?
Formal ethics programmes:

1. Compliance orientation
Preventing, detecting, and punishing violations of the law
2. Values orientation
Defining organizational values and encouraging employee commitment to
certain ethical aspirations
3. External orientation
Satisfying external stakeholders; what is acceptable to key external
constituencies
4. Protection orientation
Protecting top management from blame for ethical problems or legal
violations.
These four approaches are not mutually inconsistent; most organizations combine two
or more approaches. Values orientation is the most effective single orientation for
encouraging ethical behavior.

Without a supportive culture, formal programmes hardly influence behavior. So, in

organizing for business ethics management, it is important to also consider the ethical
culture of the organization!

Informal ethics management: ethical culture and climate

Culture change
Organizations can and should proactively develop an ethical organizational culture,
and that organizations with ‘ethics problems’ should take a culture change approach
to solve them (seeking conformity to a single set of values).

Cultural learning
Focus on smaller sub cultural groups within the firm and enabling employees to make
their own ethical decisions.

6. Identify a well-known business leader and critically examine the case that they are
an ethical leader.
Steve Jobs was not an ethical leader. Jobs was a genius. He was also cruel, rude,
obsessive and controlling. He hurt many people both personally and professionally. In
the pursuit of a goal, he let no one stand in his way and would not hesitate to run
down, push aside or destroy anyone who got in this way. As CEO he had the power to
do something about the fact that Apple as a company prevents free speech and had
authoritarian labor relations in its Chinese factory that approached sweatshop
conditions. Apple admitted that its suppliers used underage workers, a practice Apple
has been attempting to eradicate, including firing one factory supplier.

14
 Chapter 1:
2. Business ethics is of no practical importance to managers. Debates about right and
wrong should be left in the classroom.' Critically evaluate this statement using examples
where appropriate.
_____ _____ this _____ is _____ for _____:
 _____ and _____ of _____ in _____ is _____
 _____ _____ _____ _____ to the _____
 _____ _____ the _____ to _____ _____ _____

4. Business ethics do not really matter to small firm owners. They will get away with
whatever they can in order to succeed.' Critically examine why such a view of small firms
might be pervasive and whether it is likely to be accurate.
_____ is _____ _____ _____ on _____ _____ _____ to _____ who have _____ _____.
_____ an _____ _____ _____ at a _____, _____ _____ _____ _____. _____ _____ _____
_____ _____ that _____ they _____ _____ _____, _____ _____ is _____ to _____ _____.
_____ it is _____. _____ they _____ get _____ with it _____ the _____ _____, but the
_____ _____ _____ _____ _____ _____ and _____ _____ _____ a _____ _____ on _____
_____.
_____, if _____ as a _____ _____ _____ _____ that _____ are _____, _____ _____ _____
_____ your _____ _____ is, it _____ _____ _____ your _____ ; _____ _____, _____ _____
_____, _____ _____ _____, _____ _____ _____, _____ up _____.

15
 Chapter 2:
2. 'Only human beings have a moral responsibility for their actions.' Critically assess
this proposition in the context of attempts to ascribe a moral responsibility to
corporations.
A _____ _____ of a _____ of _____ _____ _____ the _____ _____. _____ _____ in
the _____ are _____ the _____, _____ ‘the _____. _____, also the _____ has _____
_____ for their _____, as the _____ are _____ by _____.

3. (1) What is enlightened self-interest? (2) Compare and evaluate arguments for
corporate social responsibility based on enlightened self-interest with more
explicitly moral arguments.
(3) _____ _____ is _____ to _____ _____ on _____ _____ _____ as _____ so
_____ its _____ _____.
(4) _____ _____ _____ _____ (_____ as _____), and _____ _____ a _____. _____,
they are _____ _____ (_____ _____ _____, _____ _____ etc.) for _____ _____
they’ve _____.

16
 Chapter 3:
1. What are ethical theories and why, if at all, do we need them?
- _____ _____ are _____ and _____ that _____ _____ and _____ for a _____ _____.
- _____ _____ _____ _____ _____
(1) _____ a _____ _____, _____ _____ to be _____ on a _____ and _____ _____
_____ that _____ can be _____, _____ and _____ to _____ _____.
- (2) _____ we _____ an _____ has _____ _____ _____, we _____ a _____ for _____
_____ to _____

2. Is ethical theory of any practical use to managers? Assess the benefits and drawbacks
of ethical theory for managers in a global economy.
- _____, _____ _____ are of _____ _____ to _____.
- _____: _____ _____ _____ _____ _____ in a _____ _____ _____ _____ _____ to
be _____ on a _____ and _____ _____ so that _____ _____ be _____, _____ and
_____ to _____ _____.

- _____: _____ _____ _____ per _____ and this _____ give _____ _____ of _____ is
_____ or _____.

3. Define ethical absolutism, ethical relativism, and ethical pluralism. To what extent is
each perspective useful for studying and practicing business ethics?
_____ _____ _____ that _____ _____ _____, _____ _____ _____ _____ and _____ and
_____ are _____ _____ that _____ be _____ _____.

_____ _____ _____ that _____ is _____ and _____.

- _____ _____ is _____ from _____ _____:
_____ _____ _____ that _____ _____ _____ _____ _____ (e.g. _____), _____
_____ _____ _____ that _____ _____ of _____ _____ be _____ _____.

_____ _____ _____ of _____ _____ _____ in _____, _____ of _____ _____ _____ not
_____ _____.

_____ _____ _____ a _____ _____ _____ _____ and _____. _____ _____ _____ _____
_____ and _____, _____ _____ that a _____ _____ on _____ _____ and _____ in _____
_____ _____ _____, and _____, be _____.

17
4. What are the two main families of Western modernist ethical theories? Explain the
difference between these two approaches to ethical theory.
_____ _____ _____ _____ _____ on the _____ of a _____ _____. If these _____ are
_____, then the _____ in _____ is _____ _____ <-> _____ the _____ of the _____ are
_____ _____, the _____ is _____ _____.

_____ _____ _____ the _____ _____ on the _____ _____ of the _____ _____ _____.
_____ to _____ _____, an _____ is _____ or _____, _____ _____ we _____ the _____
they _____, but _____ the _____ _____ are _____ _____.

5. Which ethical theory do you think is most commonly used in business? Provide
evidence to support your assertion and give reasons explaining why this theoretical
approach is more likely than others to dominate business decisions.
_____ _____, _____ _____ _____ with _____ _____ (e.g. _____ _____ _____) can be
_____ "_____ " _____ of their _____ (e.g. _____ _____ the _____ _____ _____ _____
and all _____ _____ _____ have to be _____)

6. Read the following case:

You are the manager of FoodFile, a busy city-centre restaurant catering mainly to
local office workers at lunchtimes and an eclectic, fashionable crowd of professionals
in the evenings. You are proud of your renowned food and excellent service. Most of
your staff have been with you since you opened three years ago-unusual in an
industry characterized by casual labor and high turnover. You consider this to be one
of the key factors in your consistency and success. Now, your head chef has come to
you and told you, in confidence, that she is HIV positive. She is very distressed and
you want to reassure her. However, you are troubled about her continuing to work
in the kitchens and are concerned about the effect this news could have on the other
staff, or even on your customers should they find out about her situation.

d) Using Figure 3.8, set out the main ethical considerations that are suggested by
each of the theories covered in this chapter.

e) Which theories are most persuasive in dealing with this dilemma?

f) What would you do in this situation and why?

18
 Chapter 4:
1. What is the difference between descriptive and normative ethical theories?
_____ _____ _____ _____ to _____ _____ _____ _____ are _____ _____ in _____, and
_____ _____ the _____ and _____ of those _____.

_____ _____ _____ _____ an _____ _____ to the _____ _____. _____ than _____
_____ what _____ _____ do (_____ is the _____ of the _____ _____), _____ _____
_____ to _____ _____ what _____ _____ _____ and _____ they _____ it.

2. Set out the four stages in Rest's (1986) ethical decision-making process. What
practical use is the model for managers seeking to understand ethical and unethical
behavior in their organizations?
1. _____ _____ _____
2. _____ _____ _____
3. _____ _____ _____
4. _____ in _____ _____
The _____ are _____ _____, so that _____ _____ _____ _____ _____ _____ in the
_____, _____ _____ _____ _____ _____ the _____ _____.

3. Is the prevalence of unethical behavior in business due to a few 'bad apples' or is it

more a case of good apples in bad barrels? How would your answer differ for
government or civil society organizations?
_____ = _____ _____
_____ _____ = _____ case
_____ _____ = _____ _____

- _____ _____ _____ _____ is _____ to _____: _____ _____ and _____ _____. _____
_____ is _____ by _____ _____ (_____, _____, _____, _____, _____, _____, _____
_____ (_____ and _____ of _____, _____ _____, _____ _____ and _____ _____)).
- _____, _____ _____ is also _____ by _____ _____ _____ to _____ (_____ _____ &
_____ _____), and _____ (_____, _____, _____, _____ _____, _____ _____ and
_____ _____.
- _____ _____ is that in _____ _____ _____ (_____ with _____) _____ _____ _____
_____ _____ than _____ _____. _____ _____ _____ of _____ _____ _____ are
_____ there for a _____: to _____ to _____. _____, _____ _____ their _____
_____, _____ _____ and _____ _____ is _____ _____ than _____ _____ at the
_____.

19
4. Describe Kohlberg's theory of cognitive moral development and critically evaluate
its contribution to our understanding of ethical decision-making in organizations.
What are the main implications of the theory for business leaders?
- _____ _____ _____ _____ to the _____ _____ of _____ that an _____ _____ _____
to _____ _____ and _____.
- _____ _____ to _____ _____ of _____ _____ _____ it is _____ so _____ what is
_____, but _____ the _____ is _____.
- The _____ _____ of the _____ for _____ _____ is the _____ that the _____ _____
in which _____ _____ _____ _____ within their _____ is _____ to _____ _____
_____ in _____ their _____ _____, e.g. be _____ by _____ _____ _____ _____ a
_____.
- In _____, _____ _____ in _____ are _____ _____ to _____ in _____ _____.

5. What are the two main types of issue-related factors in ethical decision-making?
What is the significance of these factors for managers seeking to prevent ethical
violations in their organizations?

_____ _____: _____ _____ the _____ is to the _____.

This _____ _____ _____ to _____ _____:
1. _____ of _____ (_____)
2. _____ _____ (_____ of _____ /_____)
3. _____ of _____
4. _____ _____ (_____ with _____ the _____ are _____ to _____)
5. _____ (_____ _____ the _____ is with the _____)
6. _____ of _____

_____ _____: _____ the _____ is _____ _____ _____ the _____:
- _____ _____ to _____ _____ _____ _____ to be _____ of the _____ _____ _____
_____.
- _____ _____ _____ be _____ _____ to the _____ (_____ _____ _____), while
_____ _____ _____ this _____ and _____ _____ _____ this _____ _____ _____.
- In _____, _____ _____ _____ be _____ by _____ to _____ _____ _____ _____
_____ _____.
- _____ _____ to _____ this in _____ to _____ _____ _____.

_____ _____ that _____ be _____ in _____ _____ _____:

1. _____ of _____
2. _____ of _____
3. _____ of _____
4. _____ _____
5. _____ to _____ _____
6. _____ of the _____

20
6. What are the main impacts of bureaucracy on ethical decision-making? How would
you suggest that a highly bureaucratic organization could enhance its employees'
ethical decision-making?
The _____ (_____) _____ of _____ on _____ _____ _____:
1. _____ of _____ _____
2. _____ _____
_____ _____ on _____ _____ so _____ _____ _____ be _____ _____ in _____
of _____ to _____ _____ for _____ those _____.
3. _____
_____ _____ _____ from the _____ of _____ _____, and _____ _____ _____
_____.
4. _____ of _____ _____
_____ has _____ _____ to _____ _____ _____, _____ as _____ or _____ as
_____.

- _____ _____ to _____ _____ _____ _____ in a _____ _____ _____, _____ _____
_____ _____ the _____ _____ _____ _____ _____ _____.
- _____ _____ be _____ in _____ to _____ _____ from _____ of _____ _____.
- _____ of _____ _____ to _____ _____, _____ _____ _____ _____ _____ _____ and
_____ _____ _____ _____ _____ _____.
- _____, _____ _____ _____ and _____ as _____ or _____.

21
 Chapter 5:
1. What are the main elements of business ethics management? To what extent are
they likely to be used in large versus small companies?
1. _____ or _____ _____ _____ _____ and _____ _____ - and _____ _____
_____ it (_____ _____ to _____ _____ a _____
_____ _____ _____).
2. _____ of _____ _____ has _____ _____ that _____ all _____
_____ _____ a _____ of _____ of _____ _____.
In _____, _____ are _____ _____.
3. _____ /_____ _____ _____ like _____ of _____ _____ have _____
_____ of this _____, _____ some _____ _____
_____ as _____ and _____ _____ _____ _____ of
_____ _____ to _____ _____.
4. _____ _____ and _____ _____ _____ _____ _____ _____ an _____ _____
to _____ and _____.
5. _____ _____, _____, and In _____ _____, in _____ and _____ _____
_____ _____. _____ _____ _____ have _____ or _____
_____.
6. _____ _____
7. _____ _____ and _____
8. _____ _____, _____, and _____ _____ _____.
_____ _____
In _____ _____, in _____ _____ (e.g. _____,
9. _____, _____, and _____
_____)

2. What are codes of ethics and how useful are they for the management of business
ethics?
_____ of _____ are _____ _____ that _____ _____, _____, or _____ to _____ _____,
_____, and _____ and/or that _____ out _____ _____ _____ for _____.

_____ of _____ are _____ for _____ of _____ _____ _____ they _____ _____ the _____
_____ _____ on _____ and _____ _____. _____ are _____ by _____ as a _____ _____
for _____ an _____ in a _____ _____ in _____ _____ _____ _____ an _____ _____.

22
3. Set out the main types of relationship that corporations can have with their
stakeholders. Are any of these types preferable? Explain your answer with reference
to examples from current business practice.
1. _____  _____ on _____ _____ and _____ ;
2. _____ _____  _____ on ‘_____ _____ and _____ _____ of _____.
3. _____ _____  _____ on _____, _____, or other _____ of _____ _____ from
_____ _____ to the _____.
4. _____ _____  _____ on _____ and _____ _____ _____.
5. _____  _____ on _____ /_____ _____ _____ _____ from _____ _____ to the
_____ in _____ to a _____ _____ or _____.
6. _____ _____  _____ on _____ _____ _____ _____ _____ _____ or _____.
7. _____ _____  _____ on _____ _____ _____ _____ _____ _____ and _____
of _____ _____ for _____, _____, or _____ _____.
8. _____ _____  _____ on _____ to _____ a _____ _____.
9. _____ _____ or _____  _____ on _____ _____ _____ _____ _____ _____
_____ to _____ _____ _____.

- _____ my _____, _____ _____ is _____ because _____ _____ _____ each _____ in
a _____ _____ that _____ _____ _____. _____ _____ can _____ your _____ _____.
_____ _____ is also _____.
- _____, _____ is _____ _____ for _____.

4. What is social accounting and why do companies engage in it?

- _____ _____ is the _____ _____ _____ with _____ and _____ _____ _____ and
_____ on _____, _____, and _____ _____ _____ to _____.
- _____ _____ in _____ _____ _____:
1. _____ and _____ _____
2. _____ _____
3. _____ _____ _____
4. _____ _____ of _____ to _____: _____ _____ _____ to _____ their _____
5. _____ _____ and _____

23
5. Assess the relative benefits and drawbacks of different approaches to ethics
management. Would you recommend that an organization emphasized a formal or
an informal approach to business ethics management?
_____ ethics _____:

1. _____ _____
_____, _____, and _____ _____ of the _____
2. _____ _____
_____ _____ _____ and _____ _____ _____ to _____ _____ _____
3. _____ _____
_____ _____ _____ ; _____ is _____ to _____ _____ _____
4. _____ _____
_____ _____ _____ from _____ for _____ _____ or _____ _____.
_____ _____ _____ are _____ _____ _____ ; _____ _____ _____ _____ or _____
_____. _____ _____ is the _____ _____ _____ _____ for _____ _____ _____.

_____ a _____ _____, _____ _____ _____ _____ _____. _____, in _____ for _____
_____ _____, it is _____ to also _____ the _____ _____ of the _____ !

_____ _____ _____: _____ _____ and _____

_____ _____
_____ _____ and _____ _____ _____ an _____ _____ _____, and that _____ with
‘_____ _____ _____ _____ a _____ _____ _____ to _____ them (_____ _____ to a
_____ _____ of _____).

_____ _____
_____ on _____ _____ _____ _____ _____ the _____ and _____ _____ to _____ their
_____ _____ _____.

6. Identify a well-known business leader and critically examine the case that they are
an ethical leader.
_____ _____ _____ _____ an _____ _____. _____ was a _____. _____ was _____
_____, _____, _____ and _____. He _____ _____ _____ _____ _____ and _____. In
the _____ of a _____, he _____ _____ _____ _____ in his _____ and _____ _____
_____ to _____ _____, _____ _____ or _____ _____ _____ _____ in this _____. As
_____ he _____ the _____ to _____ _____ _____ the _____ that _____ as a _____
_____ _____ _____ and _____ _____ _____ _____ in its _____ _____ that _____ _____
_____. _____ _____ that its _____ _____ _____ _____, a _____ _____ _____ _____
_____ to _____, _____ _____ _____ _____ _____.

24