MGT 313 Exam 2 Question and
answers verified to pass 2026
Discuss the meaning of ethics - correct answer ✔Ethics is a conception of right and wrong conduct. It
tells us whether our behavior is moral or immoral and deals with fundamental human relationships--
how we think and behave towards others and how we want them to think and behave towards us.
Discuss why businesses should be ethical - correct answer ✔Businesses should be ethical because it
helps them meet business stakeholder demands. When you meet their demands they will be more
willing to conduct business with them in the future.
Enhance Business Performance- when a business is ethical it enhances the firm's performance. ETHICS
PAYS.
Comply with legal requirements- there are two legal requirements that provide direction for companies
that want to be ethical. The U.S Corporate Sentencing Guidelines provides an incentive of lesser
sentences and fines for companies that use the steps. Also the Sarbanes-Oxley Act which seeks to
ensure that firms maintain high ethical standards in how they conduct and monitor business operations.
Prevent or Minimize Harm- They should act ethically to prevent harm to the general public and the
corporations many stakeholders. (Great Recession)
Promote Personal Morality- Most people want to act in ways that are consistent with their own sense of
right and wrong.
Explain the purpose of the Sarbanes-Oxley Act. What issues does the act address? Discuss recent
changes in regulatory interpretation of the act. - correct answer ✔The Sarbanes Oxley act seeks to
ensure that firms maintain high ethical standards in how they conduct and monitor business operations.
The act addresses the need for executives to vouch for the accuracy of a firm's financial reports and
requires them to pay back bonuses based on earnings that are later proved to be fraudulent. In recent
years the act has been loosed a little bit. Companies are no longer required to get third-party audits and
the guidelines for small businesses have been loosened.
, there are four reasons states in the textbook as to why ethical problems occur in business. Identify the
nature of each ethical problem and the typical approach taken in response to the problem. - correct
answer ✔Personal Gain and Selfish Interest- Desire for personal gain or even greed, causes ethics
problems. Ethical egoist, or someone who puts his own self-interest above all other considerations, like
Dennis Kozlowski CEO of Tyco who stole more than $170 million of company money for personal use,
are the problem.
Competitive Pressures on Profits- When companies are squeezed by tough competition, they sometimes
engage in unethical activities to protect their profits. Ex. German coffee roaster firms were fined for
price fixing cost of beans, espresso, and filtered bags which was burdening consumers making them pay
a higher price. (Bottom-line mentality)
Conflicts of Interest- occurs when an individual's self-interest conflicts with acting in the best interest of
another, when the individual has an obligation to do so. Ex. Boss purchasing something from a certain
company because they receive a bonus from there even though it may not offer the best quality or
value.
Cross-Cultural Contradictions- When corporations do business in other societies where ethical standards
differ from those at home. Ex. Lead paints sold by PPG in Cameroon vs. U.S.
How does a person's spirituality influence his/her ethical behavior? How have organizations responded
to increased attention to spirituality and religion at work attempting to accommodate their employees?
- correct answer ✔A person's spirituality-- is a personal belief in a supreme being, religious
organization, or the power of nature or some other external, life-guiding force-- has always been a part
of the human makeup. Since 1976 scholars have found a positive relationship between a company's
economic performance and its attention to spiritual values. Organizations have begun to hire full time or
part time chaplains as part of an employee assistance program.
Define and discuss the six stages of moral development. What is the ethics referent at each stage? What
is the basis of ethics reasoning at each stage? - correct answer ✔1. Childhood- Punishment avoidance:
avoid harm, obedience to power. Ego-centered reasoning.
2. Adolescence, Youth- Reward seeking: self-interest, own needs, reciprocity. Ego-centered reasoning.
answers verified to pass 2026
Discuss the meaning of ethics - correct answer ✔Ethics is a conception of right and wrong conduct. It
tells us whether our behavior is moral or immoral and deals with fundamental human relationships--
how we think and behave towards others and how we want them to think and behave towards us.
Discuss why businesses should be ethical - correct answer ✔Businesses should be ethical because it
helps them meet business stakeholder demands. When you meet their demands they will be more
willing to conduct business with them in the future.
Enhance Business Performance- when a business is ethical it enhances the firm's performance. ETHICS
PAYS.
Comply with legal requirements- there are two legal requirements that provide direction for companies
that want to be ethical. The U.S Corporate Sentencing Guidelines provides an incentive of lesser
sentences and fines for companies that use the steps. Also the Sarbanes-Oxley Act which seeks to
ensure that firms maintain high ethical standards in how they conduct and monitor business operations.
Prevent or Minimize Harm- They should act ethically to prevent harm to the general public and the
corporations many stakeholders. (Great Recession)
Promote Personal Morality- Most people want to act in ways that are consistent with their own sense of
right and wrong.
Explain the purpose of the Sarbanes-Oxley Act. What issues does the act address? Discuss recent
changes in regulatory interpretation of the act. - correct answer ✔The Sarbanes Oxley act seeks to
ensure that firms maintain high ethical standards in how they conduct and monitor business operations.
The act addresses the need for executives to vouch for the accuracy of a firm's financial reports and
requires them to pay back bonuses based on earnings that are later proved to be fraudulent. In recent
years the act has been loosed a little bit. Companies are no longer required to get third-party audits and
the guidelines for small businesses have been loosened.
, there are four reasons states in the textbook as to why ethical problems occur in business. Identify the
nature of each ethical problem and the typical approach taken in response to the problem. - correct
answer ✔Personal Gain and Selfish Interest- Desire for personal gain or even greed, causes ethics
problems. Ethical egoist, or someone who puts his own self-interest above all other considerations, like
Dennis Kozlowski CEO of Tyco who stole more than $170 million of company money for personal use,
are the problem.
Competitive Pressures on Profits- When companies are squeezed by tough competition, they sometimes
engage in unethical activities to protect their profits. Ex. German coffee roaster firms were fined for
price fixing cost of beans, espresso, and filtered bags which was burdening consumers making them pay
a higher price. (Bottom-line mentality)
Conflicts of Interest- occurs when an individual's self-interest conflicts with acting in the best interest of
another, when the individual has an obligation to do so. Ex. Boss purchasing something from a certain
company because they receive a bonus from there even though it may not offer the best quality or
value.
Cross-Cultural Contradictions- When corporations do business in other societies where ethical standards
differ from those at home. Ex. Lead paints sold by PPG in Cameroon vs. U.S.
How does a person's spirituality influence his/her ethical behavior? How have organizations responded
to increased attention to spirituality and religion at work attempting to accommodate their employees?
- correct answer ✔A person's spirituality-- is a personal belief in a supreme being, religious
organization, or the power of nature or some other external, life-guiding force-- has always been a part
of the human makeup. Since 1976 scholars have found a positive relationship between a company's
economic performance and its attention to spiritual values. Organizations have begun to hire full time or
part time chaplains as part of an employee assistance program.
Define and discuss the six stages of moral development. What is the ethics referent at each stage? What
is the basis of ethics reasoning at each stage? - correct answer ✔1. Childhood- Punishment avoidance:
avoid harm, obedience to power. Ego-centered reasoning.
2. Adolescence, Youth- Reward seeking: self-interest, own needs, reciprocity. Ego-centered reasoning.
