CFI CBCA Professional Ethics Exam
Questions With Solved Solutions.
Course Introduction
Ethics need to be understood, thought about, and embraced. - Answer -What to do when you
are faced with an ethical dilemma?
-How to respond and maintain your own ethical integrity?
Learning Objectives - Answer -Explain why ethics matter within an organization
-Describe the elements of business ethics
-Understanding the ethical culture of an organization -Apply professional ethics and the moral
principles of integrity
-Apply approaches to ethical decision making
-Utilize sources of ethical guidance
Why Ethics Matter - Answer Recent Public Lapses in Ethical Standards
Six companies that have had ethical lapses:
-Theranos
-WeWork
-Boeing
-Volkswagon
-BP
-Wells Fargo
For each of the organizations listed, research what the ethical lapse was and what the resultant
impact was on the company.
• How was the ethical lapse discovered?
• What was the impact of that lapse on the company?
Theranos and WeWork - Answer -Charismatic but unethical leaders
-Unicorn companies
-Have a valuation of over $1BN during startup
, • Theranos was dissolved in September 2018, and the lawsuits continue.
WeWork answers - Answer • Falsely inflated company value.
• CEO self-dealt in a number of different areas.
• Collapse of IPO.
• CEO was fired and the company has been trying to recover its reputation and financial
stability.
Beoing answers - Answer • Two Boeing MAX 737 crashes prompted full Federal Aviation
Authority investigation.
• Leaked incriminating documents showed that the MAX was known to be unsafe.
• However, Boeing chose profitability over safety and put a poorly-designed, unsafe airplane
into service.
• Stock price took a sharp decline and may never recover.
BP answers - Answer • In 2005, an oil refinery explosion caused one of the principal
investigators to write a book ("Failure to Learn") about the lack of safety culture over profits.
• In 2010, Deepwater Horizon offshore oil rig explosion killed 11 workers and destroyed a
significant portion of the Gulf Coast.
• Stock price took a sharp decline. Paid billions in legal costs and fines.
Volkswagon answers - Answer • European car manufacturer that wanted to enter the North
American market.
• Installed a software chip into cars to cheat emissions tests and advertised cars as "clean
diesel."
• Accidentally discovered by research students trying to replicate tests, and an insider revealed
the reason.
• Paid over $30BN in fines & legal fees, and many of their executives have received jail
sentences.
Wells Fargo answers - Answer • US retail bank with an aggressive sales culture
• Defrauded their customers by selling unwanted credit card accounts, opening unauthorized
accounts, transferring funds from good accounts to bad/unauthorized accounts, and making
unauthorized credit inquiries.
• Complaints to the Consumer Financial Protection Bureau and anonymous tips by employees
Questions With Solved Solutions.
Course Introduction
Ethics need to be understood, thought about, and embraced. - Answer -What to do when you
are faced with an ethical dilemma?
-How to respond and maintain your own ethical integrity?
Learning Objectives - Answer -Explain why ethics matter within an organization
-Describe the elements of business ethics
-Understanding the ethical culture of an organization -Apply professional ethics and the moral
principles of integrity
-Apply approaches to ethical decision making
-Utilize sources of ethical guidance
Why Ethics Matter - Answer Recent Public Lapses in Ethical Standards
Six companies that have had ethical lapses:
-Theranos
-WeWork
-Boeing
-Volkswagon
-BP
-Wells Fargo
For each of the organizations listed, research what the ethical lapse was and what the resultant
impact was on the company.
• How was the ethical lapse discovered?
• What was the impact of that lapse on the company?
Theranos and WeWork - Answer -Charismatic but unethical leaders
-Unicorn companies
-Have a valuation of over $1BN during startup
, • Theranos was dissolved in September 2018, and the lawsuits continue.
WeWork answers - Answer • Falsely inflated company value.
• CEO self-dealt in a number of different areas.
• Collapse of IPO.
• CEO was fired and the company has been trying to recover its reputation and financial
stability.
Beoing answers - Answer • Two Boeing MAX 737 crashes prompted full Federal Aviation
Authority investigation.
• Leaked incriminating documents showed that the MAX was known to be unsafe.
• However, Boeing chose profitability over safety and put a poorly-designed, unsafe airplane
into service.
• Stock price took a sharp decline and may never recover.
BP answers - Answer • In 2005, an oil refinery explosion caused one of the principal
investigators to write a book ("Failure to Learn") about the lack of safety culture over profits.
• In 2010, Deepwater Horizon offshore oil rig explosion killed 11 workers and destroyed a
significant portion of the Gulf Coast.
• Stock price took a sharp decline. Paid billions in legal costs and fines.
Volkswagon answers - Answer • European car manufacturer that wanted to enter the North
American market.
• Installed a software chip into cars to cheat emissions tests and advertised cars as "clean
diesel."
• Accidentally discovered by research students trying to replicate tests, and an insider revealed
the reason.
• Paid over $30BN in fines & legal fees, and many of their executives have received jail
sentences.
Wells Fargo answers - Answer • US retail bank with an aggressive sales culture
• Defrauded their customers by selling unwanted credit card accounts, opening unauthorized
accounts, transferring funds from good accounts to bad/unauthorized accounts, and making
unauthorized credit inquiries.
• Complaints to the Consumer Financial Protection Bureau and anonymous tips by employees
