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Business & Professional
IA UV
Ethics, 9th Edition
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SOLUTIONS
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MANUAL
CAO
Leonard J. Brooks, Paul Dunn
PNP
Comprehensive Solutions Manual for Instructors
ROO
N
and Students
||| ||| || ||| || | || ||| | || ||| |
VE SE
9780357441886
I S
© Leonard J. Brooks & Paul Dunn. All rights reserved.
D? UR
Reproduction or distribution without permission is prohibited.
© MEDGEEK
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,TU ST
VIA U
TABLE OF CONTENTS
Solutions Manual – Business & Professional Ethics (9th Edition)
Authors: Leonard J. Brooks and Paul Dunn
ISBN: 9780357441886
PART I: THE ETHICAL ENVIRONMENT
_MIA
Chapter 1: Ethics Expectations
Chapter 2: Ethics & Governance Scandals
PART II: ETHICAL THEORY AND DECISION MAKING
V
Chapter 3: Ethical Behavior—Philosophers’ Contributions
Chapter 4: Practical Ethical Decision Making
ED?_
PART III: CORPORATE GOVERNANCE AND THE ACCOUNTING PROFESSION
Chapter 5: Corporate Ethical Governance & Accountability
Chapter 6: Professional Accounting in the Public Interest
CAO
PART IV: MANAGING RISKS AND CASE APPLICATIONS
Chapter 7: Managing Ethics Risks & Opportunities
Chapter 8: Subprime Lending Fiasco—Ethics Issues
PNP
ROO
N
VE SE
I S
D? UR
,TU ST
VIA U
Business & Professional Ethics
_MIA
for Directors, Executives &
Accountants, 9e
V
ED?_
Leonard J. Brooks and Paul Dunn
© 2021, 2018 Cengage Learning, Inc.
CAO
PNP
Chapter 1—Ethics Expectations
ROO
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Chapter Questions and Case Solutions
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Chapter Questions..................................................................2
I S
Case Solutions.........................................................................8
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Chapter Questions
1. Why have concerns over pollution become so important for management and directors?
Because the public perceive that our environment is finite and that our well-being is threatened.
In turn they have influenced politicians to enact tougher laws and heavier penalties...up to $2
million/day, with the prospect of personal liability and jail. In addition, U.S. courts have agreed
_MIA
to hear lawsuits brought by foreigners for pollution on foreign soil (see ethics case “Texaco: The
Ecuador Issue” in Chapter 1). Finally, pollution can erode the trust necessary to preserve
stakeholder support, and this will be seen by stakeholders with resultant negative consequences
in consumer and capital markets.
V
2. Why are we more concerned now than our parents were about fair treatment of employees?
ED?_
Our social consciousness is higher due to the reasons listed in Chapter 1.
3. What could professional accountants have done to prevent the development of the credibility gap
and the expectations gap?
See the discussion on the Treadway, Metcalf and Macdonald Commissions. Also see case
CAO
“Arthur Andersen’s Troubles,” in Chapter 2.
4. Why might ethical corporate behavior lead to higher profitability?
Because attention to ethical concerns can keep corporations out of costly problems such as
PNP
clean-up of pollution, fines, low morale, and loss of reputation and stakeholder support; and it
can open up profitable opportunities such as developing green product lines.
5. Why is it important for the clients of professional accountants to be ethical?
ROO
Because auditors don't check 100% of all transactions and, even if they did, there would be
N
conflicts of interest and other hidden issues which would be found only by chance. Making sure
that clients are ethical provides assurance that they will not be hiding things from the auditors
or engaging in unethical activities. The value of the auditor's opinion depends upon it.
6. How can corporations ensure that their employees behave ethically?
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By developing ethical corporate cultures based on codes of conduct to provide guidance;
I
training to provide awareness and understanding; monitoring to assure compliance; and
S
rewards or sanctions to reinforce the desired behavior. Also, the top executives should set the
best example possible.
D? UR
7. Why didn’t some corporations protect women employees from sexual abuse before 2017–2019?
Many factors have contributed to changes in workplaces and attitudes toward sexual abuse over
the last decade, including the following reasons.
Business & Professional Ethics for Directors, Executives & Accountants, 9e
Leonard J. Brooks and Paul Dunn, ©2021, 2018 Cengage Learning, Inc.
Edrftgyihu jiuh
Business & Professional
IA UV
Ethics, 9th Edition
_MIA
SOLUTIONS
ED?_
MANUAL
CAO
Leonard J. Brooks, Paul Dunn
PNP
Comprehensive Solutions Manual for Instructors
ROO
N
and Students
||| ||| || ||| || | || ||| | || ||| |
VE SE
9780357441886
I S
© Leonard J. Brooks & Paul Dunn. All rights reserved.
D? UR
Reproduction or distribution without permission is prohibited.
© MEDGEEK
?
,TU ST
VIA U
TABLE OF CONTENTS
Solutions Manual – Business & Professional Ethics (9th Edition)
Authors: Leonard J. Brooks and Paul Dunn
ISBN: 9780357441886
PART I: THE ETHICAL ENVIRONMENT
_MIA
Chapter 1: Ethics Expectations
Chapter 2: Ethics & Governance Scandals
PART II: ETHICAL THEORY AND DECISION MAKING
V
Chapter 3: Ethical Behavior—Philosophers’ Contributions
Chapter 4: Practical Ethical Decision Making
ED?_
PART III: CORPORATE GOVERNANCE AND THE ACCOUNTING PROFESSION
Chapter 5: Corporate Ethical Governance & Accountability
Chapter 6: Professional Accounting in the Public Interest
CAO
PART IV: MANAGING RISKS AND CASE APPLICATIONS
Chapter 7: Managing Ethics Risks & Opportunities
Chapter 8: Subprime Lending Fiasco—Ethics Issues
PNP
ROO
N
VE SE
I S
D? UR
,TU ST
VIA U
Business & Professional Ethics
_MIA
for Directors, Executives &
Accountants, 9e
V
ED?_
Leonard J. Brooks and Paul Dunn
© 2021, 2018 Cengage Learning, Inc.
CAO
PNP
Chapter 1—Ethics Expectations
ROO
N
Chapter Questions and Case Solutions
VE SE
Chapter Questions..................................................................2
I S
Case Solutions.........................................................................8
D? UR
,TU ST
VIA U Page |2
Chapter Questions
1. Why have concerns over pollution become so important for management and directors?
Because the public perceive that our environment is finite and that our well-being is threatened.
In turn they have influenced politicians to enact tougher laws and heavier penalties...up to $2
million/day, with the prospect of personal liability and jail. In addition, U.S. courts have agreed
_MIA
to hear lawsuits brought by foreigners for pollution on foreign soil (see ethics case “Texaco: The
Ecuador Issue” in Chapter 1). Finally, pollution can erode the trust necessary to preserve
stakeholder support, and this will be seen by stakeholders with resultant negative consequences
in consumer and capital markets.
V
2. Why are we more concerned now than our parents were about fair treatment of employees?
ED?_
Our social consciousness is higher due to the reasons listed in Chapter 1.
3. What could professional accountants have done to prevent the development of the credibility gap
and the expectations gap?
See the discussion on the Treadway, Metcalf and Macdonald Commissions. Also see case
CAO
“Arthur Andersen’s Troubles,” in Chapter 2.
4. Why might ethical corporate behavior lead to higher profitability?
Because attention to ethical concerns can keep corporations out of costly problems such as
PNP
clean-up of pollution, fines, low morale, and loss of reputation and stakeholder support; and it
can open up profitable opportunities such as developing green product lines.
5. Why is it important for the clients of professional accountants to be ethical?
ROO
Because auditors don't check 100% of all transactions and, even if they did, there would be
N
conflicts of interest and other hidden issues which would be found only by chance. Making sure
that clients are ethical provides assurance that they will not be hiding things from the auditors
or engaging in unethical activities. The value of the auditor's opinion depends upon it.
6. How can corporations ensure that their employees behave ethically?
VE SE
By developing ethical corporate cultures based on codes of conduct to provide guidance;
I
training to provide awareness and understanding; monitoring to assure compliance; and
S
rewards or sanctions to reinforce the desired behavior. Also, the top executives should set the
best example possible.
D? UR
7. Why didn’t some corporations protect women employees from sexual abuse before 2017–2019?
Many factors have contributed to changes in workplaces and attitudes toward sexual abuse over
the last decade, including the following reasons.
Business & Professional Ethics for Directors, Executives & Accountants, 9e
Leonard J. Brooks and Paul Dunn, ©2021, 2018 Cengage Learning, Inc.
