ABDM 3513 BUSINESS ORGANISATION & MANAGEMENT

TUTORIAL 2

Mini Case

You are a Finance Manager that evaluates companies for possible acquisition. If you
fabricated data on certain company’s cash flow, it would look like a good candidate for a
takeover.

By applying relevant ethical rules that you have studied, how would you go about
evaluating/deciding on this case?

Small Group Breakout Exercise

1. A sale of chewing gum is legal in the U.S. but it is illegal in Singapore. How can you use
ethical rules to decide when gum chewing is ethical or unethical, and if and when it
should be made illegal?

Moral right rule can be used to decide chewing gum is legal or illegal. Chewing gum is
illegal if government set the law that state chewing gum is illegal.

True/False Questions

1. Moral principles, values, or beliefs about what is "right" or "wrong" are known as ethics.
-True

2. Ethics and “the law” are the same thing. – False. Ethics provides us with guides on what
is the right thing to do in all aspects of life, while the law generally provides more
specific rules.

3. Ethics change over time. -True

4. The people and groups affected by the way a company and its managers behave are called
its stockholders. – False because it is called stakeholders

5. Employees are stakeholders of a company - True

6. Managers have a right to expect a good return or reward from their employer - True

7. Suppliers have no rights to expect anything from an organization they are doing business
with. - False because can get some benefits from organization.

8. Ethical companies are more likely to grow and expand. - True

9. In order for an organization to survive and prosper, it needs to satisfy its stakeholders.
True

10. All stakeholders benefit in the long run from companies making the right choices. - True

11. Under the utilitarian rule, an ethical decision is that which creates the greatest good from
the greatest number of people. True

12. Typically, in the U.S., the interests of employees are placed above the interests of
shareholders. - False

13. Under the moral rights rule, an ethical decision is the one that distributes benefits and
harms among people and groups in a fair, equitable, and impartial way. - False

14. From a moral rights perspective, managers should compare alternative courses of action
on the basis of how each will affect the rights of each stakeholder group. - True

15. Decisions that protect the rights of some stakeholders often hurt the rights of others. -
True

16. Under the justice rule, managers should determine fair rules and procedures from
distributing outcomes to stakeholders. -True

17. “An ethical decision is one that a typical person in a society would think is acceptable” is
a statement that reflects the justice rule. – False , practical rule

18. Managers should apply only the moral rights rule to all business decisions. – false,
should not apply the moral value

19. The “practical rule” ensures that managers are taking into account the interests of all
stakeholders. - True

20. The standards that govern how members of a profession should conduct themselves are
called organizational ethics. - True

21. A society's ethics are derived solely from the written values and norms of the society that
address how people should interact with one another. - True

22. The code of ethics is the same among different societies. - False because it has difference
moral value.

23. An organization's code of ethics is shaped by the ethics of the top managers of the
organization. -True

24. The way a company's managers view their duty to make decisions that enhance the well
being of stakeholders is called organizational ethics. -True
25. The top managers at Enron acted in a defensive approach when they prevented employees
from selling Enron stock. - True