CFI CBCA Professional Ethics Study Questions

CFI CBCA Professional Ethics Questions Study 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? Ethical code - ANSWER An ethical code is adopted by an organization in an attempt to assist those in the organization called upon to make a decision to understand the difference between 'right' and 'wrong' and to apply this understanding to their decision. Code of conduct - ANSWER A code of conduct is a set of rules outlining the responsibilities of, or proper practices for, an individual or organization. Code of Conduct & Ethics Policies The topics that a code of conduct typically will cover: - ANSWER -Respect for the Law: Won't knowingly break any laws -Personal Integrity: Act in an ethically responsible way -Confidentiality of Information: Any information you receive must be kept confidential -Conflicts of Interest: Won't take advantage of your employment for a personal benefit -Compliance with the Code: Failure of compliance will result in disciplinary action The Ethical Culture of Organizations - ANSWER -What comprises an ethical culture -Can a corporation be unethical? -It's not the organization that's unethical. Rather, it's the people within the organization that drive its culture. Culture is another way of saying "the way things are done around here." - ERC Leadership, Supervision, Peer Commitment (PYRAMID) - ANSWER -Providing direction and setting expectations - "tone at the top" -Reinforcement of ethical behavior - "mood in the middle" -Supporting each other in doing the right thing - "buzz at the bottom" Symptoms of a Weak Ethical Culture The best way to gain a sense of what the ethical culture is in an organization is to listen to what people are saying. Watch out for rationalizations: AND Watch out for signals: - ANSWER -This isn't bad! You should have seen... -This is the way it has always been done. -Everybody does this. -It doesn't really hurt anyone. -Find a way! -I don't care how you do it. -Whatever it takes. -So long as it's legal. 2019 ECI Global Business Ethics Survey An organization with a weak ethical culture will tend to have a greater amount of misconduct that both occurs and goes unreported compared to others. - ANSWER -Observed misconduct -did not report -global median -Africa & Middle East, Asia Pacific, Europe, North America, South America Whistleblowing is the act of - ANSWER raising concerns about one or more acts that co-workers, superiors, or others connected to the company are performing that are essentially illegal. This usually is attributed to fraud, corruption, or a health or safety concern that would threaten the public as a whole. Who are the whistleblowers? - ANSWER Company insiders; employees who have a strong moral compass Who receives the report? - ANSWER An independent party (e.g., the chair of the audit committee) Who investigates? - ANSWER Internal audit will be tasked with a preliminary investigation How do whistleblowers remain anonymous? - ANSWER Use a confidential whistleblower hotline The Whistleblower Dilmena - ANSWER People may be reluctant to report misconducts. 34% of the observed misconduct went unreported. -What do you think are the reasons people don't "blow the whistle"? -For those who do, what do you believe are the protections in place for them?