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D072 study guide Questions and Correct Answers/
Latest Update / Already Graded
Distinguish between personal and organizational ethics
Ans: Personal ethics refers to the ethics a person identifies with, which guides
how they interact with others daily.
Organizational ethics focuses on rules, principles and standards in respect to the
business' activities
Identify how ethics impact outcomes in organizations
Ans: · Organizations tainted by questionable ethics suffer by a decline in their
consumer base, increase employee turnover, and mistrust from their investor's.
· Setting an unrealistic goal can lead to the compromise of ethics and standards.
(These tend to happen when the desire for profit outweighs ethical decision-
making.)
· Organizations who practices good ethical behavior are more likely to flourish
and are trusted by their stakeholders.
Example of personal ethics
Ans: Speaking the truth, respecting elders, and never purposely hurt others
Example of professional ethics
Ans: Being punctual, refraining from gossip, and having good time management
Provide an example of when personal and professional ethics may conflict
Ans: Under the 'Code of Conduct,' police officers are obligated to enforce and
uphold the law even if they don't agree with it.
Police may believe smoking marijuana is ethically wrong, but by law, smoking
marijuana is legal.
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Where does an organization's ethics tend to start?
Ans: Organization's ethics tend to start (or fail) from the top (management)
then trickle down.
What are the 4 main ethical issues and their roles within organizations?
Ans: 1. Societal Issues- Relates to society and getting involve in societal issues
out of care and concern.
2. Stakeholder Issues- Anyone affected by the company's actions (consumers,
employees, suppliers, and people within the community).
3. Internal issues- Relates to relationship between organization and its employees
(fairness in management, pay, and employee participation).
4. Personal Issues- Deals with how employees treat each other (gossiping, taking
credit for someone else's work).
Example of a high/low level of organizational ethic
Ans: Good: Sharing credit with co-workers and treating subordinates with
respect demonstrates high level of organizational ethics.
Bad: Treating others unfairly, showing preferences within the workplace is a low
level of organizational ethics.
What are some benefits to an organization that practices high ethics?
Ans: Organizations with high ethics benefit from the trust of their stakeholders
and has a competitive advantage in the marketplace.
Define Corporate Social Responsibility (CSR)
Ans: CSR is when an organization voluntarily engages in issues that are affecting
the environment, community or society at large
What is the importance of CSR in the organization and in the community?
© 2025/ 2026 | ® All rights reserved
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Ans: CSR is important in the organization because
· It's beneficial to both the organization and its stakeholders. It creates long-term
profits and shareholder's trust for the organization.
· Attract consumers who share the same values.
· Increases organization's brand image (awareness) /creates a better image
· Creates an advantage over competitors.
CSR is important in the community because
· Organization is gives back to the community (food bank/ school supplies
giveaways, charities/donations, scholarships).
· Ability to influence organization's economic practices.
Compare corporate ethical commitments with reality of how the commitments
are acted out in accordance with commitments, or in discord to the
commitments
Ans: Company in accordance with their commitment example: Company ABC,
states that they are becoming more eco-friendly. They show their commitments
by manufacturing in a sustainable way, using renewable products, encouraging
employees to recycle, partnering with like-minded people within the community.
Company in discord with their commitment example: Company DEF, states that
they are becoming more eco-friendly, but their actions are contrary. They don't
manufacture in a sustainable fashion, don't practice recycling. All the company's
actions are detrimental to the environment. This action is also known as
Greenwashing- (company's actions goes against their ethical commitments).
What is internal transparency and why is it important?
Ans: Internal transparency is the ability of everyone in an organization to exist
within a system of openness, communication, and accountability. This is important
because of good ethical behavior practice, others can see this behavior and follow
suit. Internal transparency is one of the keys to defeating corruption.
What is whistleblowing?
© 2025/ 2026 | ® All rights reserved
, 4 | Page
Ans: Whistleblowing is when someone tells the public or authorities of alleged
misconduct in a government department, private company or organization.
Whistleblowers are protected under the Sarbanes-Oxley Act (SOX). This law
aims at improving transparency in organizations by requiring clear reporting
practices.
What are the 5 main functions of departments within an organization?
Ans: 1. Marketing- customer and market research, target market identification,
branding, advertising
2. Human Resource (HR)- labor laws compliance, recruitment and onboarding,
payroll compensation and benefits, internal relations, training and development,
safety and maintenance
3. Accounting and Finance- accounts payable/receivable, revenue tracking, payroll
and taxes, financial reporting, financial controls
4. Research and Development (R&D)- product improvisation, new product
development
5. Information Technology (IT)- governance, infrastructure, functionality
Distinguish between Process and Relationship management
Ans: Process Management/Business Process management (BPM)- refers to
management's initiative to design work processes so that they align with the
organization's strategic goals. This involves automation of work processes using
technology, analyzing, optimizing, and monitoring business processes to improve
business performance. BPM can also help outline ethical standards by
standardizing decision-making and workflow procedures.
Relationship management- utilize initiatives that govern how organization
maintains relationships with an audience (relationships between different
departments, relationships between individual employees and departments,
relationships between business and its consumers, and relationship between
business and other businesses).
Distinguish between management and leadership
© 2025/ 2026 | ® All rights reserved
D072 study guide Questions and Correct Answers/
Latest Update / Already Graded
Distinguish between personal and organizational ethics
Ans: Personal ethics refers to the ethics a person identifies with, which guides
how they interact with others daily.
Organizational ethics focuses on rules, principles and standards in respect to the
business' activities
Identify how ethics impact outcomes in organizations
Ans: · Organizations tainted by questionable ethics suffer by a decline in their
consumer base, increase employee turnover, and mistrust from their investor's.
· Setting an unrealistic goal can lead to the compromise of ethics and standards.
(These tend to happen when the desire for profit outweighs ethical decision-
making.)
· Organizations who practices good ethical behavior are more likely to flourish
and are trusted by their stakeholders.
Example of personal ethics
Ans: Speaking the truth, respecting elders, and never purposely hurt others
Example of professional ethics
Ans: Being punctual, refraining from gossip, and having good time management
Provide an example of when personal and professional ethics may conflict
Ans: Under the 'Code of Conduct,' police officers are obligated to enforce and
uphold the law even if they don't agree with it.
Police may believe smoking marijuana is ethically wrong, but by law, smoking
marijuana is legal.
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Where does an organization's ethics tend to start?
Ans: Organization's ethics tend to start (or fail) from the top (management)
then trickle down.
What are the 4 main ethical issues and their roles within organizations?
Ans: 1. Societal Issues- Relates to society and getting involve in societal issues
out of care and concern.
2. Stakeholder Issues- Anyone affected by the company's actions (consumers,
employees, suppliers, and people within the community).
3. Internal issues- Relates to relationship between organization and its employees
(fairness in management, pay, and employee participation).
4. Personal Issues- Deals with how employees treat each other (gossiping, taking
credit for someone else's work).
Example of a high/low level of organizational ethic
Ans: Good: Sharing credit with co-workers and treating subordinates with
respect demonstrates high level of organizational ethics.
Bad: Treating others unfairly, showing preferences within the workplace is a low
level of organizational ethics.
What are some benefits to an organization that practices high ethics?
Ans: Organizations with high ethics benefit from the trust of their stakeholders
and has a competitive advantage in the marketplace.
Define Corporate Social Responsibility (CSR)
Ans: CSR is when an organization voluntarily engages in issues that are affecting
the environment, community or society at large
What is the importance of CSR in the organization and in the community?
© 2025/ 2026 | ® All rights reserved
, 3 | Page
Ans: CSR is important in the organization because
· It's beneficial to both the organization and its stakeholders. It creates long-term
profits and shareholder's trust for the organization.
· Attract consumers who share the same values.
· Increases organization's brand image (awareness) /creates a better image
· Creates an advantage over competitors.
CSR is important in the community because
· Organization is gives back to the community (food bank/ school supplies
giveaways, charities/donations, scholarships).
· Ability to influence organization's economic practices.
Compare corporate ethical commitments with reality of how the commitments
are acted out in accordance with commitments, or in discord to the
commitments
Ans: Company in accordance with their commitment example: Company ABC,
states that they are becoming more eco-friendly. They show their commitments
by manufacturing in a sustainable way, using renewable products, encouraging
employees to recycle, partnering with like-minded people within the community.
Company in discord with their commitment example: Company DEF, states that
they are becoming more eco-friendly, but their actions are contrary. They don't
manufacture in a sustainable fashion, don't practice recycling. All the company's
actions are detrimental to the environment. This action is also known as
Greenwashing- (company's actions goes against their ethical commitments).
What is internal transparency and why is it important?
Ans: Internal transparency is the ability of everyone in an organization to exist
within a system of openness, communication, and accountability. This is important
because of good ethical behavior practice, others can see this behavior and follow
suit. Internal transparency is one of the keys to defeating corruption.
What is whistleblowing?
© 2025/ 2026 | ® All rights reserved
, 4 | Page
Ans: Whistleblowing is when someone tells the public or authorities of alleged
misconduct in a government department, private company or organization.
Whistleblowers are protected under the Sarbanes-Oxley Act (SOX). This law
aims at improving transparency in organizations by requiring clear reporting
practices.
What are the 5 main functions of departments within an organization?
Ans: 1. Marketing- customer and market research, target market identification,
branding, advertising
2. Human Resource (HR)- labor laws compliance, recruitment and onboarding,
payroll compensation and benefits, internal relations, training and development,
safety and maintenance
3. Accounting and Finance- accounts payable/receivable, revenue tracking, payroll
and taxes, financial reporting, financial controls
4. Research and Development (R&D)- product improvisation, new product
development
5. Information Technology (IT)- governance, infrastructure, functionality
Distinguish between Process and Relationship management
Ans: Process Management/Business Process management (BPM)- refers to
management's initiative to design work processes so that they align with the
organization's strategic goals. This involves automation of work processes using
technology, analyzing, optimizing, and monitoring business processes to improve
business performance. BPM can also help outline ethical standards by
standardizing decision-making and workflow procedures.
Relationship management- utilize initiatives that govern how organization
maintains relationships with an audience (relationships between different
departments, relationships between individual employees and departments,
relationships between business and its consumers, and relationship between
business and other businesses).
Distinguish between management and leadership
© 2025/ 2026 | ® All rights reserved
