ETHICS AND PROFESSIONAL CONDUCT
UPDATED EXAM 2 COMPREHENSIVE STUDY
SHEET 2026 SOLVED QUESTIONS PREMIUM
BUNDLE
◉ Motivated blindness.
Answer: The common failure of people to notice others' unethical
behavior when seeing that behavior would harm the observer
◉ Moral blindness.
Answer: Enron paid Andersen $52 million is services, Andersen's
second largest account and the largest client in the Houston office.
Their judgment was compromised by this relationship and led to
______________ with respect to Enron's accounting for so-called special-
purpose entitiies (SPEs)--entities set up by the firm and kept off the
balance sheet
◉ Ethical Judgment.
Answer: -"Every act is to be judged by the intention of the agent."
-is not enough, the decision maker must carry through with the
ethical action
◉ Cognitive development.
,Answer: thought process followed in one's moral development
◉ Kohlberg's Cognitive Development Approach.
Answer: -An individual's ability to make reasoned judgments about
moral matters develops in stages
-These stages characterize the way people think about ethical
dilemmas
◉ Kohlberg believes:.
Answer: -Moral reasoning processes become more complex &
sophisticated with development
-Higher stages use cognitive operations not available to those at
lower stages
◉ Higher stages.
Answer: Many believe that ________ ______ are better because they are
consistent with certain philosophical theories of rights & justice
◉ Problems with Kohlberg's Cognitive Development Approach.
Answer: -Used 75 boys 10 to 16 to develop stages
-Small sample, young, all male
-Denigrates the roles of religion and laws
,◉ Kohlberg's 6 Stages of Moral Development.
Answer: -People change their decision priorities over time & with
additional education & experience.
-Individual's moral development can be influenced by corporate
culture, especially ethics training.
-Assumes stage sequence universal, same in all cultures (disagrees
with Hofstede).
◉ 1. Obedience to Rules; Avoidance of Punishment
2. Satisfying One's Own Needs
3. Fairness to Others
4. Law and Order
5. Social Contract
6. Universal Ethical Principles.
Answer: 6 stages of Kohlberg's Moral Development
◉ 1. Level 1 - Preconventional
2. Level 2 - Conventional
3. Level 3 - Postconventional.
Answer: 3 levels of Kohlberg's Cognitive Development Approach
◉ Level 1 - Preconventional.
, Answer: The individual is very self-centered, rules are seen as
something external imposed on the self
◉ 1. Stage 1 - Obedience to Rules; Avoidance of Punishment
2. Stage 2 - Satisfying One's Own Needs.
Answer: 2 stages of level 1 - Preconventional:
◉ Stage 1 - Obedience to Rules; Avoidance of Punishment.
Answer: What is right is judged by one's obedience to rules and
authority; avoidance of punishment
EX: A company forbids making payoffs to government or other
officials to gain business. Susan, the company's contract negotiator,
might justify refusing the request of a foreign government official to
make a payment to gain a contract as being contrary to company
rules, or Susan might make the payment if she believes there is little
chance of being caught and punished
◉ Stage 2: Satisfying One's Own Needs.
Answer: Rules and authority are important only if acting in
accordance with them satisfies one's own needs (egoism)
EX: Susan might make the payment even though it is against
company rules if she perceives that such payments are a necessary
part of doing business. She view the payment as essential to gain the
contract. Susan may believe that competitors are willing to make
payments, and that making such payments are part of the culture of
UPDATED EXAM 2 COMPREHENSIVE STUDY
SHEET 2026 SOLVED QUESTIONS PREMIUM
BUNDLE
◉ Motivated blindness.
Answer: The common failure of people to notice others' unethical
behavior when seeing that behavior would harm the observer
◉ Moral blindness.
Answer: Enron paid Andersen $52 million is services, Andersen's
second largest account and the largest client in the Houston office.
Their judgment was compromised by this relationship and led to
______________ with respect to Enron's accounting for so-called special-
purpose entitiies (SPEs)--entities set up by the firm and kept off the
balance sheet
◉ Ethical Judgment.
Answer: -"Every act is to be judged by the intention of the agent."
-is not enough, the decision maker must carry through with the
ethical action
◉ Cognitive development.
,Answer: thought process followed in one's moral development
◉ Kohlberg's Cognitive Development Approach.
Answer: -An individual's ability to make reasoned judgments about
moral matters develops in stages
-These stages characterize the way people think about ethical
dilemmas
◉ Kohlberg believes:.
Answer: -Moral reasoning processes become more complex &
sophisticated with development
-Higher stages use cognitive operations not available to those at
lower stages
◉ Higher stages.
Answer: Many believe that ________ ______ are better because they are
consistent with certain philosophical theories of rights & justice
◉ Problems with Kohlberg's Cognitive Development Approach.
Answer: -Used 75 boys 10 to 16 to develop stages
-Small sample, young, all male
-Denigrates the roles of religion and laws
,◉ Kohlberg's 6 Stages of Moral Development.
Answer: -People change their decision priorities over time & with
additional education & experience.
-Individual's moral development can be influenced by corporate
culture, especially ethics training.
-Assumes stage sequence universal, same in all cultures (disagrees
with Hofstede).
◉ 1. Obedience to Rules; Avoidance of Punishment
2. Satisfying One's Own Needs
3. Fairness to Others
4. Law and Order
5. Social Contract
6. Universal Ethical Principles.
Answer: 6 stages of Kohlberg's Moral Development
◉ 1. Level 1 - Preconventional
2. Level 2 - Conventional
3. Level 3 - Postconventional.
Answer: 3 levels of Kohlberg's Cognitive Development Approach
◉ Level 1 - Preconventional.
, Answer: The individual is very self-centered, rules are seen as
something external imposed on the self
◉ 1. Stage 1 - Obedience to Rules; Avoidance of Punishment
2. Stage 2 - Satisfying One's Own Needs.
Answer: 2 stages of level 1 - Preconventional:
◉ Stage 1 - Obedience to Rules; Avoidance of Punishment.
Answer: What is right is judged by one's obedience to rules and
authority; avoidance of punishment
EX: A company forbids making payoffs to government or other
officials to gain business. Susan, the company's contract negotiator,
might justify refusing the request of a foreign government official to
make a payment to gain a contract as being contrary to company
rules, or Susan might make the payment if she believes there is little
chance of being caught and punished
◉ Stage 2: Satisfying One's Own Needs.
Answer: Rules and authority are important only if acting in
accordance with them satisfies one's own needs (egoism)
EX: Susan might make the payment even though it is against
company rules if she perceives that such payments are a necessary
part of doing business. She view the payment as essential to gain the
contract. Susan may believe that competitors are willing to make
payments, and that making such payments are part of the culture of
