TEST BANK FOR BUSINESS ETHICS
ETHICAL DECISION MAKING AND
CASES 13TH EDITION BY O C
FERRELL JOHN FRAEDRICH 2026
ETHICS SCRIPT SOLVED QUESTIONS
VERIFIED ANSWERS A+
◉ Bad Barrel.
Answer: An organization that engages in unethical conduct without
initially intending to — the system itself becomes unethical.
◉ Code of Conduct.
Answer: Clear rulebook/guidelines for what doing the right thing means
for employees.
◉ Code of Ethics.
Answer: The company's moral compass — values it stands for,
including how to report issues and consequences of violations.
◉ Value Statement.
Answer: Core beliefs and culture of the organization — a reflection of
what matters most to the company.
◉ Ethics Officer.
, Answer: A high-level executive responsible for managing the
organization's ethics and legal compliance programs, training, and
government regulations.
◉ Ethics Audit.
Answer: A 'report card' for a company — examines how well they
follow their own ethical standards and policies. Tracks improvement
over time.
◉ FSGO (Carrot & Stick).
Answer: Federal Sentencing Guidelines for Organizations. Companies
with safeguards face reduced penalties (carrot); those without are
heavily penalized (stick).
◉ Compliance-Based Programs.
Answer: Focus on rules, laws, enforcement with clear defined policies
and risk management.
◉ Value/Integrity-Based Programs.
Answer: Focus on shared principles and ethical culture, integrating
fairness and transparency into all decisions.
◉ 7 Points for Ethics & Compliance Programs.
Answer: Clear standards, strong ethical leadership, ethical hiring
practices, safety for whistleblowers, responsiveness to ethical issues,
FSGO safeguards, effective deterrent to misconduct.
ETHICAL DECISION MAKING AND
CASES 13TH EDITION BY O C
FERRELL JOHN FRAEDRICH 2026
ETHICS SCRIPT SOLVED QUESTIONS
VERIFIED ANSWERS A+
◉ Bad Barrel.
Answer: An organization that engages in unethical conduct without
initially intending to — the system itself becomes unethical.
◉ Code of Conduct.
Answer: Clear rulebook/guidelines for what doing the right thing means
for employees.
◉ Code of Ethics.
Answer: The company's moral compass — values it stands for,
including how to report issues and consequences of violations.
◉ Value Statement.
Answer: Core beliefs and culture of the organization — a reflection of
what matters most to the company.
◉ Ethics Officer.
, Answer: A high-level executive responsible for managing the
organization's ethics and legal compliance programs, training, and
government regulations.
◉ Ethics Audit.
Answer: A 'report card' for a company — examines how well they
follow their own ethical standards and policies. Tracks improvement
over time.
◉ FSGO (Carrot & Stick).
Answer: Federal Sentencing Guidelines for Organizations. Companies
with safeguards face reduced penalties (carrot); those without are
heavily penalized (stick).
◉ Compliance-Based Programs.
Answer: Focus on rules, laws, enforcement with clear defined policies
and risk management.
◉ Value/Integrity-Based Programs.
Answer: Focus on shared principles and ethical culture, integrating
fairness and transparency into all decisions.
◉ 7 Points for Ethics & Compliance Programs.
Answer: Clear standards, strong ethical leadership, ethical hiring
practices, safety for whistleblowers, responsiveness to ethical issues,
FSGO safeguards, effective deterrent to misconduct.
