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WGU D072 FUNDAMENTALS FOR
SUCCESS IN BUSINESS STUDY GUIDE
QUESTIONS AND ANSWERS
Ethics Foundations
Ethics is a branch of philosophy concerned with the meaning of all aspects of human behavior.
Ethics encompasses the principles that guide a person’s behavior (what’s right and what’s
wrong).
• Legal: An act that is permissible or in conformity with the law of the land.
• Legal-ethical: When the law and personal or organizational ethics are in accordance with
each other.
• Legal-unethical: Dilemma in which established laws are not in accordance with or do
not uphold the ethical choice.
• Illegal-ethical: Dilemma in which the ethical choice would be in violation of established
laws.
Personal ethics guide interactions with others, both personally and professionally.
Factors that influence someone’s personal code of ethics: Family & community, personal
beliefs, experiences, and culture.
• Values: The stable, enduring goals that a person has for life.
• Morals: Sets of rules that individuals develop based on cultural norms and beliefs.
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Organizational ethics: A branch of applied ethics that focuses on rules, principles, and
standards in the context of business activities.
If an organization can create an ethically oriented culture, they are more likely to hire people
who behave ethically.
4 Main Levels of Ethical Issues Within an Organization
1. Societal issues
o Concerns issues relating to the world as a whole.
o Involvement happens because of the ethics the organization creates out of care
and concern for individuals.
2. Stakeholder issues
o Concerns policies that affect its customers, employees, suppliers, and people
within the community.
3. Internal policy issues
o Concerns internal relationships between a company and its employees.
o Examples: fairness in management, pay, and employee participation.
4. Personal issues
o Concerns how people treat others in their organization.
o Examples: gossiping at work or taking credit for another’s work.
Corporate Social Responsibility (CSR)
CSR: A philosophy in which a company voluntarily engages in actions that benefit society at
large.
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Stakeholders include: unions, the company’s employees, investors, suppliers, consumers, local
& national governments, and communities that may be affected by corporate activities (e.g.,
construction, manufacturing, and pollution).
Goal of CSR: To increase long-term profits and shareholder trust through positive public
relations and high ethical standards to reduce business and legal risks by taking responsibility for
corporate actions.
World Trade Organization (WTO) function: Govern global trade by overseeing the
implementation of trade agreements between nations.
Key Ethics Concepts & Programs
Compliance and ethics program: A company develops a program to help guide employees in
decision-making and defines expectations for accepting gifts from clients.
Code of ethics: Establishes the organization’s key values and describes the company’s
obligation to its stakeholders.
Greenwashing: Ethical commitments and statements run contrary to actual practices in an effort
to be seen as a more positive entity or more environmentally friendly.
Internal transparency: The ability of all individuals in an organization to exist in a system of
openness, communication, and accountability.
Sarbanes-Oxley Act (SOX):
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WGU D072 FUNDAMENTALS FOR
SUCCESS IN BUSINESS STUDY GUIDE
QUESTIONS AND ANSWERS
Ethics Foundations
Ethics is a branch of philosophy concerned with the meaning of all aspects of human behavior.
Ethics encompasses the principles that guide a person’s behavior (what’s right and what’s
wrong).
• Legal: An act that is permissible or in conformity with the law of the land.
• Legal-ethical: When the law and personal or organizational ethics are in accordance with
each other.
• Legal-unethical: Dilemma in which established laws are not in accordance with or do
not uphold the ethical choice.
• Illegal-ethical: Dilemma in which the ethical choice would be in violation of established
laws.
Personal ethics guide interactions with others, both personally and professionally.
Factors that influence someone’s personal code of ethics: Family & community, personal
beliefs, experiences, and culture.
• Values: The stable, enduring goals that a person has for life.
• Morals: Sets of rules that individuals develop based on cultural norms and beliefs.
p
g
.
1
, 2
Organizational ethics: A branch of applied ethics that focuses on rules, principles, and
standards in the context of business activities.
If an organization can create an ethically oriented culture, they are more likely to hire people
who behave ethically.
4 Main Levels of Ethical Issues Within an Organization
1. Societal issues
o Concerns issues relating to the world as a whole.
o Involvement happens because of the ethics the organization creates out of care
and concern for individuals.
2. Stakeholder issues
o Concerns policies that affect its customers, employees, suppliers, and people
within the community.
3. Internal policy issues
o Concerns internal relationships between a company and its employees.
o Examples: fairness in management, pay, and employee participation.
4. Personal issues
o Concerns how people treat others in their organization.
o Examples: gossiping at work or taking credit for another’s work.
Corporate Social Responsibility (CSR)
CSR: A philosophy in which a company voluntarily engages in actions that benefit society at
large.
p
g
.
2
, 3
Stakeholders include: unions, the company’s employees, investors, suppliers, consumers, local
& national governments, and communities that may be affected by corporate activities (e.g.,
construction, manufacturing, and pollution).
Goal of CSR: To increase long-term profits and shareholder trust through positive public
relations and high ethical standards to reduce business and legal risks by taking responsibility for
corporate actions.
World Trade Organization (WTO) function: Govern global trade by overseeing the
implementation of trade agreements between nations.
Key Ethics Concepts & Programs
Compliance and ethics program: A company develops a program to help guide employees in
decision-making and defines expectations for accepting gifts from clients.
Code of ethics: Establishes the organization’s key values and describes the company’s
obligation to its stakeholders.
Greenwashing: Ethical commitments and statements run contrary to actual practices in an effort
to be seen as a more positive entity or more environmentally friendly.
Internal transparency: The ability of all individuals in an organization to exist in a system of
openness, communication, and accountability.
Sarbanes-Oxley Act (SOX):
p
g
.
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