Professional Documents
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Business & Professional Ethics For Directors, Executives & Accountants
Business & Professional Ethics For Directors, Executives & Accountants
1
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Instructors Manual
Chapter 4
Learning objectives 2
Possible teaching approaches, using cases and readings2
Answers to questions for discussion.. 3
Case Notes..8
Multiple Choice Questions29
PowerPoints are in a separate file at www.cengage.com/accounting/brooks
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Prior to the recent financial scandals and governance reforms, few corporate leaders were
selected for their virtues other than their ability to make profits. Has this changed, and
if so, why?
Yes. With the recent revision and stiffening of governance requirements, directors
are now expected to select and monitor senior executives (CEO and CFO at least)
based in part on their ethicality as evidenced by their contribution of a wholesome
tone at the top. Without proactive ethical leadership, a companys ethics
program (see Figures 5.7, 5.8 and 5.9) will not succeed.
3.
Is it wise for a decision maker to take into account more than profit when making
decisions that have a significant social impact? Why?
Yes. An organization needs the support of its primary stakeholders to attain its
strategic objectives in the long run. It cannot afford to ignore the interests of
these stakeholders and those that they are influenced by. Profit is usually a shortterm concept that needs to be stretched into a multi-period framework by
considering more than just the next buck.
4.
5.
Is the modified 5-question approach to ethical decision making superior to the modified
moral standards or modified Pastin approach?
Not really. The superior approach for a specific problem depends on the nature of
the impacts involved. If future impacts of a subjective nature are involved, then
cost-benefit analysis should be employed. If the ground rules of a company are
expected to influence the implementation of a decision, then they should be
canvassed. If a commons is at stake, then employing that concept may help the
executives involved to analyze the proposed actions ethically. A particular
executives preference or style may also have to be taken into account. The
circumstances will dictate the approach which is most attractive/suitable.
6.
Under what circumstances would it be best to use each of the following frameworks: the
philosophical set of consequentialism, deontology, and virtue ethics; the modified 5question; the modified moral standards; and the modified Pastin approach?
The traditional philosophical approaches - consequentialism, deontology, and
virtue ethics are time-honored approaches that have been refined into the
modified 5-question; the modified Moral Standards; and the modified Pastin
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
How would you convince a CEO not to treat the environment as a cost-free commons?
Depending on the person involved, they may be responsive to: altruism, the
avoidance of big fines (corporate & personal) or jail; or to arguments that underpricing the use of the environment can lead to resource allocations which will
look foolish in a few years because the cost structures will change, or that
opportunities for opening up new markets or competitive advantages will be lost,
or that whistle-blowing or activist groups will make things uncomfortable, etc. I
would show the CEO what a cost-benefit or risk benefit analysis would look like
that would bring such factors into the decision computation. The decision would
be up to the CEO, but at least all the factors would be on the table, not hidden or
forgotten.
8.
9.
From a virtue ethics perspective, why would it be logical to put in place a manufacturing
process beyond legal requirements?
Definitely. A manufacturing process that protected the environment or the
workers involved would engender the support of key stakeholder groups such as
environmentalists and workers, leading to cooperative government and media
relations and the higher commitment of current employees to do their best, and
future employees to join. Reputational factors are definitely sensitive to the
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
List the companies that have faced ethical tragedies due the following failings in their
ethical culture:
a. Lack of ethical leadership: Livent, Enron, WorldCom, Tyco, Adelphia, Siemens,
Parmalat, Goldman Sachs, Hollinger/Ravelston
b. Lack of clarity about important values: Arthur Andersen, KPMG, E & Y
(aggressive tax shelters), Ford, Firestone
c. Lack of ethical awareness and expectations by employees: Dow Corning, MCI
d. Lack of monitoring of ethicality of actions: Barings Bank, Socit Gnrale
e. Unethical reward systems: Sears (auto centers), Bankers Trust, Royal Ahold,
many brokers
f. Unreasonable pressures for unrealistic performance: MCI, HealthSouth
11.
Give an example of behavior that might be unethical even though everyone is doing it.
Mechanics telling customers they need new tires before they really do.
Cell phone companies selling warrantee programs on the basis that they provide
for every eventuality, but require sending you phone away for repairs for 3-4
weeks each time, multiple times before they will give you a new phone.
Selling products through unwarranted flattery
Blaming others for your own shortcomings
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Teaching suggestions
There are many examples of the dangers of ignoring evidence of hazardous products or processes
too long (Fords Pinto, Firestone tires, Union Carbide Bhopal, and Dow Cornings silicone breast
implant, to name a few) and Vioxx may be another of these. Students need to understand the
dynamics facing management and directors during these decisions, and to learn from the
mistakes made earlier. Consequently, it is useful to get the students to role play (say 2-3 students
per side) a debate between Mercks management and the representatives of patients who have
begun a class action. The instructor can ask what the Merck directors would have said about
issues debated when it has concluded. Following the debate, the analysis presented below can be
discussed with the class.
Alternatively, the two questions raised at the end of the case can be taken up using the analysis
presented below.
Discussion of ethical issues:
1. Utilizing the information provided and available from web sources, use the ethical
decision-making techniques discussed in the chapter to form an opinion about whether
Mercks decisions regarding Vioxx were ethical. Show your analysis.
1
This case is based upon an assignment submitted by Rahbar Rahimpour, one of the authors Executive MBA
students at the Rotman School of Management. He gave permission for this use.
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
______________
In addition to Rahbar Rahimpours analysis, the students should appreciate the nature and
structure of the court decisions that are appearing. At this early stage (May 2006), several
decisions have appeared. On April 12, 2006, a jury in New Jersey awarded John McDarby, a 77year-old $4.5 million in compensatory damages and $9 million in punitive damages3 because
Vioxx had been a significant contributing factor to his heart attack and that Merck failed to
warn adequately of the drugs risks.4 Punitive damage awards are capped at 5 times the
compensatory damages in New Jersey. One analyst opined that the legal costs facing Merck
might be comparable to what Wyeth has faced with its withdrawn fen-phen diet drugs. Wyeth
has already taken some $21 billion in charges.5
It should be noted that the second plaintiff (Tom Cona) in the McDarby case received virtually
no award. As at April 6th Merck had won two trials, and had been found liable in two others.
3
Mercks cost in Vioxx case increased to $13.5 million, by Anna Driver, Toronto Star, April 12, 2006, E6
Ibid.
5
Ibid.
4
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Note that, although the case does not speak to the issue of suppressing information on serious
side effects, students will come across articles that allege such behavior.
June 2006
Update/Subsequent Events
Feb. 28, 2008 In settlement of lawsuits in Federal, California, New Jersey and Texas courts,
Merck obligated to pay $4.85 billion to 44,000 eligible U.S. claimants,
see
http://www.officialvioxxsettlement.com/
For continuous company news releases, see http://www.merck.com/newsroom/vioxx/
For the Martin Report on the Conduct of Senior Management in the Development and Marketing
of Vioxx, see http://www.merck.com/newsroom/vioxx/martin_report.html
Case Updates Summary:
News - 2009: Merck, insurance plans settle Vioxx suits for $80M
News - May 14, 2009: Lawsuit Reveals Merck's Fake Vioxx Journals
6
Merck stock tumbles after Vioxx verdict, by Aaron Smith, CNNMoney.com, April 6, 2006, accessed on April 6,
2006. See also Jury finds Merck didnt warn of Vioxx heart risks, John Curran, Associated Press, Toronto Star,
April 6, 2006, p. C7.
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Teaching suggestions
Although the case can be taken up by the instructor, it would be helpful for a group of students to
present their case solution to the class. The presentation could then be critiqued by other groups
of students who were allocated the roles or issues bulleted above, such as: shareholder and other
stakeholder impacts, possible techniques and the flawed assumption of self-rectification,
professional accounting concerns and expectations, appropriate use of EDM approaches, lessons
learned from earlier cases, and why are deontological and virtue ethics important.
Discussion of ethical issues
Question: What should Ron consider in making his decision?
Ron, the CFO, should employ a full EDM analysis before making his decision but rarely would
there be enough time or the inclination for this in real life so using this case in class will
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
pressures and motivations that can come to bear on the CEO and CFO,
o incentives (greed), fear of losing ones job, reputation erosion
o its how the game is played normal business practice (Ken Lay style)
techniques that can be used to boost earnings and/or cash flow,
o capitalize and/or defer expenses, off-balance sheet transactions, misrepresentation
flawed prospect that manipulations will be self-cancelling when prospects improve,
o profits rarely rise as expected,
o inventory and/or other profit boosts do not automatically cancel the next year
they are usually additive, and require higher levels of manipulation to hide.
consequences of manipulation on all the stakeholders,
o see Illustrative Case
professional accounting stance on manipulations, and why,
o code of conduct discussion, professionalism, reputation concern, lessons fro other
manipulation cases
lessons learned from earlier manipulation cases, including: Enron, WorldCom, Waste
Management, Sunbeam, Adelphia, Tyco, Nortel, HealthSouth, Parmalat, and Royal
Ahold.
o Enron off-statement deals, sham transactions
o WorldCom capitalization of line costs and other expenses
o Waste Management capitalized and /or failed to record expenses, overstated
environmental revenue reserves, understated provisions for income tax, etc
o Sunbeam channel stuffing, misrecording of fees, false sales,
o Adelphia misrepresentation of transactions
o Tyco misuse of benefit plans, unauthorized bonuses and compensation,
improper credits
o Nortel misrecording the timing of revenue and expense, soft reserves (cookie jar
accounting)
o HealthSouth recording of imaginary revenues
o Parmalat fake transactions
o Royal Ahold recording of non-existent commissions from suppliers
I would conclude with a discussion of the importance of deontology (duty, respect for rights, and
fairness) and the demonstration of the virtue expected of senior company officials and the related
director oversight. While it is easy to argue that a utilitarian analysis may indicate no significant
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
FORD PINTO
______________________________________________________
What this case has to offer
The Pinto Case has become an icon in business ethics. It affords the opportunity to stress the
importance of:
1.
2.
Estimating and balancing future impacts with and against shortterm impacts, such as profit.
3.
4.
Specifically, the case affords the opportunity to explore the following issues, among others, in a
business context:
Can/should a price be put on life?
Why was the cost-benefit analysis deficient?
Estimates of lawsuit settlements
Lost reputation - how to measure it
Discounting - why and how
Didn't bring the future to the present
When is product risk normal or abnormal, acceptable or not acceptable?
Was disclosure an option?
What is the general trend in social conscience over time?
Teaching suggestions
My approach to the Pinto Case depends on whether I use it to start a class on ethical decision
making (EDM) frameworks, or to cement the framework issues that I have taught at the
beginning of the class. Usually I use the Kardell Paper Case to introduce the "Five
Question/Box" Framework in the first class on EDM. I begin the second with a discussion on
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Was the decision not to install the rubber bladder appropriate? Use the 5
question/box framework to support your analysis.
The five question framework suggests the identification and ranking of stakeholders and then
employs the following challenges to proposed actions - in this case with the results indicated:
Is the proposed action profitable?
According to Ford's CBA - Yes
Is the proposed action legal?
Yes. But it is interesting to note that the Ford engineers knew that the Pinto would not
pass 21 mph crash test which was expected to be introduced as the government's
mandatory safety standard - an introduction which was "delayed" until the late 1970's
after the bulk of the court work on this case was complete.
Is the proposed action fair?
No, certainly not to the people who died or were burned or to their families, provided it is
decided that the product carried inherent risks which were greater than was reasonable for
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Question 2:
The most frequent observations made in response to this question are: how can anyone put a
value on a human life, settlement costs look low, Ford's reputation suffered but this not valued,
and there is no discounting of future cash flows. Here are some comments on each.
Putting a value on human life and suffering: Gruesome though it may be, courts do it all the
time in damage cases, generally as a function of lost future earnings plus damages for pain and
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
39.174 mil
92.175
122.900
215.075
($175.001)
Note: The income tax consequences of these cash flows have not be taken into account.
If this picture of reality had been available to Ford executives, the decision would quite likely
have been different.
Question 3:
Should Ford have given its Pinto customers the option to have the rubber
bladder installed during production for, say $20?
The impracticality of this suggestion is obvious, but it provides a jumping off point to discuss the
common misperception that disclosure will make an unethical action all right. Somehow, telling
a victim what is in store for him/her is expected to pass the from the manufacturer to the victim.
However, when such communication can be done without severe consequences for the
company's credibility, the victim can easily claim inability to understand, or not having the
freedom to chose another alternate - in which case the manufacturer will still be stuck with the
problem. Usually, asking the students how to compose the copy for the $20 option provides
some levity at the end of the case.
Once again, the students will find the case invigorating and instructive, and will marvel at the
changes in social conscience over time.
Useful Update Reference: http://en.wikipedia.org/wiki/Ford_Pinto
Case Updates Summary
On January 15, 1980, the Ford Motor Company went on trial on charges of reckless homicide in
the 1978 death of three Indiana teenagers who burned to death after their 1973 Fort Pinto was hit
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
YouTube video: Carnage: Car Safety & Car Crashes: Pt 4: High Toll, Ralph Nader,
Corvair & Pinto http://www.youtube.com/watch?v=DLrMaFkLjlI&feature=related
Birsch, D. (1994). Introduction: The Pinto Controversy. In D. Birsch & J.H. Fielder
(Eds.), The Ford Pinto Case: A Study in Applied Ethics, Business, and Technology (p. 3-14).
(1994). State University of New York Press.
Dowie, M. (1977). Pinto Madness. In D. Birsch & J.H. Fielder (Eds.), The Ford Pinto
Case: A Study in Applied Ethics, Business, and Technology (p. 15-36). (1994). State University
of New York Press.
http://en.wikipedia.org/wiki/Lee_Iacocca
www.autosafety.org/article.php?scid=96&did=522
http://www.biogs.com/famous/iacocca.html
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Introduce and illustrate the stakeholder analysis approach as it deals with financial
and non-financial issues with impacts in both the long and short term.
2.
Get the students to grapple with the need for decisions based on partial or
uncertain information.
3.
4.
Learn to anticipate functional fixation, conflicts of interest and other forms of bias
from lawyers and other advisors or decision makers.
5.
Appreciate what "due diligence" requirements decision makers must keep in mind
to minimize the impact of charges of negligence with regard to the treatment of
the environment and the handling of hazardous waste.
6.
7.
Teaching suggestions
I use the Kardell Co. Case either after developing the 5-question/box Approach (5QA) with the
students, or after developing the Moral Standards Approach (MSA) and the Pastin Approach
(PA) as well. I start the discussion with a short scene-setting statement which raises the reality of
the case setting - actually it is an embellished real case with changed names, and with sonox
really being dioxin, a suspected carcinogen produces in the pulp making process. Then I ask the
following questions, in order:
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Who are the stakeholders here and what are their interests?
What are the major issues and how are the interests of each stakeholder group affected by
them?
Which ethical decision making approach should be used: 5QA; MSA; PA? Why?
What are the major decisions to be made?
How should the stakeholder's interests be ranked? Why?
What facts and analyses would we like to have?
What decisions would the students make?
What was wrong with the quality of the debate at the board of directors?
What is the downside if the right decision is not made - consider economic factors and
also what Jack might do?
The discussion moves along quite quickly, taking 30-45 minutes. At the end of the case, students
feel quite good about the decision making approaches and their understanding of corporate
governance.
Discussion of ethical issues
Stakeholders and their interests: The discussion of stakeholders and their interests produces the
expected list except that usually neither Jack, the technician who discovered the potential
problem and who is most concerned with the impact of sonox, and the unborn, are mentioned. I
usually have to probe for these, and sometimes I let the discussion proceed until the quality of
debate at the board level comes up before asking who is going to raise their issues and argue for
their interests. A satisfactory decision is unlikely unless they are recognized as stakeholders and
their interests taken into account. You can delve into the issue of whether mothers can adequately
represent the unborn or not, but remember that mothers may suffer from conflicts of interest in
regard to the perceived short-term need for jobs for their families, etc.
Similarly, the issue of whether the environment should be accorded status as a stakeholder in its
own right, or simply as an extension of known human needs, is an interesting one. Pointing to
the recent movie "Medicine Man" in which Sean Connery was trying to find a cure for the cancer
in the Brazilian rain forest, but was prevented from doing so by efforts to clear for grazing cattle,
is helpful here.
Ranking the stakeholder's interests: The ranking of stakeholders interests can be done after or in
conjunction with the identification of the major decisions to be taken. Provided sonox is
considered a health risk, the usual ordering of concerns by the public would be: life, health,
quality of life, financial. I usually find that their is quite a debate in class over the primacy of
shareholders concerns (financial) vs. those related to life and health. In the end, it usually boils
down to how serious a health risk the student thinks that sonox is. This is an issue that is
unresolved in the case due to lack of information (the same as in real life - dioxins are very
harmful to monkeys, but science has not been able to make the same case for humans yet).
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
As a result, an alternate decision would be to defer the closed loop decision and seek more info
on one or more of the above. In the interim, several decisions arise:
Getting the class to make decisions: I usually force the class to vote on the closed loop decision
right after the choice of ethical decision making approach. They resist doing so, and I ask why then the other questions come out. I keep asking for a decision and this forces the group to think
through each stage of the process. Ultimately the class is usually split between those wanting to
take the ethical "high road" and install the loop right away, and those who what to move more
slowly.
What was wrong with the Board debate? At this point, it is easy to see that the board was not
sufficiently representative of the stakeholders to meaningfully present and understand the
important issues facing the company. Moreover, there was no one with sufficient technical
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
ANSWER: b
2) The AACSB Ethics Education taskforce has called for business students to be familiar with the
following approaches to ethical decision making:
a.
b.
c.
d.
e.
ANSWER: a
3) These are character traits that dispose a person to act ethically and thereby make that person a morally
good human being:
a.
b.
c.
d.
e.
Norms
Moral judgements
Virtues
Values
Ethical judgements
ANSWER: c
4) From a stakeholder point of view, which of the following must be satisfied for a decision to
be considered ethical?
a. The decision should demonstrate virtues reasonabley expected
b. The decision should result in more benefits than costs
c. The decision should not offend the rights of any other stakeholders
d. The distribution of benefits and burdens should be fair
e. All of the above must be satisfied for a decision to be considered ethical
ANSWER: e
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Surrogates
Externalities
Future impacts
Collateral damages
Ethical costs
ANSWER: b
6) These costs can be measured indirectly by using costs incurred in similar circumstances or mirror
image alternatives:
a.
b.
c.
d.
e.
Surrogates
Externalities
Future impacts
Collateral damages
Ethical costs
ANSWER: b
7) What is the most common measure of shareholder well-being:
a.
b.
c.
d.
e.
Profit or loss
Profit or loss plus externalities
Profit or loss plus cost-benefit analysis
Profit or loss plus risk-benefit analysis
All of the above
ANSWER: a
8) Which of the following is not a stakeholder right?
a. Life, heath and safety
b. To earn a reasonable return on an investment
c. Freedom of speech
d. Fair treatment before the law
e. All of the above are stakeholder rights
ANSWER: b
9) This approach incorporates the expected future impacts of a decision into the analysis:
a. Virtue ethics
b. Consequentialism
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
ANSWER: e (I do not understand the difference between Q8 and Q9; when are future impacts
not expected in an analysis? I think that Q8 should be deleted; Ive added a replacement question
at the end.)
10) These values are the combinations of a value and the probability of its occurrence:
a.
b.
c.
d.
e.
Probable values
Common values
Present values
Expected values
Risk-adjusted values
ANSWER: d
11) Which of the following is not one of the 5 questions in Graham Tuckers original approach to ethical
decision making?
a.
b.
c.
d.
e.
Is it profitable
Is it right?
Is it fair?
Is it legal?
Does it demonstrate the virtues expected?
ANSWER: e
12) The following three standards make up the moral standards approach:
a.
b.
c.
d.
e.
ANSWER: a
13) Pastins approach adds the following concepts to stakeholder impact analysis:
a.
b.
c.
d.
e.
Rule ethics
Ground rule ethics
End-point ethics
Social contract ethics
All of the above
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
5-question approach
Moral standards approach
Pastins approach
All of the above
(a) and (b) only
ANSWER: d
15) Lack of awareness of the following problem results in executives not attributing enough value to the
use of an environmental resource:
a.
b.
c.
d.
e.
Commons problem
Ethics problem
Value problem
Risk-assessment problem
Moral problem
ANSWER: a
16) If a decision is expected to be unfair to a particular stakeholder group, the decision may be improved
by:
a.
b.
c.
d.
e.
ANSWER: c
17) Which of the following is not an example of a common ethical decision-making pitfall?
a.
b.
c.
d.
e.
ANSWER: e
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010
Bias
Conforming to an unethical corporate culture
Conflicts of interests
Failure to consider the motivation for the decision
All of the above
ANSWER: e
19) Completing the following steps in this order provides a sound basis for challenging a proposed
decision:
a. Identify facts and stakeholders, rank stakeholders and their interests, and assess the impact of
the proposed action
b. Identify a proper ethical decision framework, rank stakeholders and their interests, and assess
the impact of the proposed action
c. Rank stakeholders and their interests, identify facts and stakeholders, and assess the impact of
the proposed action
d. Identify a proper ethical decision framework, identify facts and stakeholders, and assess the
impact of the proposed action
e. Rank stakeholders and their interests, identify a proper ethical decision framework, and
assess the impact of the proposed action
ANSWER: a
20) Frequently, decision makers have been subject to unreasonable expectations and unrealistic deadlines,
this is an example of:
a.
b.
c.
d.
e.
ANSWER: a
Business & Professional Ethics for Directors, Executives & Accountants, 5e,
L.J. Brooks & P. Dunn, Cengage Learning, 2010