CFI CBCA Professional Ethics | Questions with 100% Verified
Answers | Latest Update 2026/2027
Question: 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?
Question: 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
Question: 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?
Question: Theranos and WeWork
Answer: -Charismatic but unethical leaders -Unicorn companies -Have a valuation of over $1BN during startup
Question: Theranos answers
Answer: • The claims made that the blood tests worked were false.
• Thousands of blood tests were inaccurate and some cost people their lives.
• Whistleblower went to press.
• Theranos was dissolved in September 2018, and the lawsuits continue.
Question: WeWork answers
Answer: • Falsely inflated company value.
• CEO self-dealt in a number of different areas.
• Collapse of IPO.
• CEO was fired and the company has been trying to recover its reputation and financial
stability.
Question: Beoing answers
Answer: • Two Boeing MAX 737 crashes prompted full Federal Aviation Authority investigation.
• Leaked incriminating documents showed that the MAX was known to be unsafe.
• However, Boeing chose profitability over safety and put a poorly-designed, unsafe
airplane into service.
• Stock price took a sharp decline and may never recover.
Question: BP answers
Answer: • In 2005, an oil refinery explosion caused one of the principal investigators to write a
book ("Failure to Learn") about the lack of safety culture over profits.
• In 2010, Deepwater Horizon offshore oil rig explosion killed 11 workers and destroyed a
significant portion of the Gulf Coast.
• Stock price took a sharp decline. Paid billions in legal costs and fines.
, Question: Volkswagon answers
Answer: • European car manufacturer that wanted to enter the North American market.
• Installed a software chip into cars to cheat emissions tests and advertised cars as "clean
diesel."
• Accidentally discovered by research students trying to replicate tests, and an insider
revealed the reason.
• Paid over $30BN in fines & legal fees, and many of their executives have received jail
sentences.
Question: Wells Fargo answers
Answer: • US retail bank with an aggressive sales culture
• Defrauded their customers by selling unwanted credit card accounts, opening
unauthorized accounts, transferring funds from good accounts to bad/unauthorized accounts, and making
unauthorized credit inquiries.
• Complaints to the Consumer Financial Protection Bureau and anonymous tips by
employees to journalists helped uncover the fraud.
Question: A Measure of the World's Most Ethical Companies
Answer: -In 2020, 132 companies in 21 countries were considered to be the world's most ethical companies.
-These companies outperform the large-cap index by 13.5%.
Question: The Need for an Ethical Workplace
Answer: "Companies that invest in ethics reap an enormous return. Better workplace ethics cuts business risks
by reducing the chance that serious ethics problems will throw companies off course and distract them from
their core business." Ethics Compliance Initiative CEO, Patricia Harned
• Lawsuits
• Fines
• Penalties
• Jail time
• Company folded
• Lost trust
• Lives were lost
Question: Maintain Your Own Ethical Integrity
Answer: • Prepare to take a stand when needed
• Understand what the ethical culture and climate is in the organization
Question: What Are the Elements of Business Ethics
Answer: Defining: Ethics & Moral Principles
Question: Ethics
Answer: A system of moral principles accepted by a social group
Question: Moral Principles
Answer: The principles of right and wrong that are accepted by an individual or a social group
Question: Different social groups will have different moral principles, and the rules of conduct in each social
group may be different.
Answer: • Religious organizations
• Social groups
• Sporting events
Answers | Latest Update 2026/2027
Question: 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?
Question: 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
Question: 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?
Question: Theranos and WeWork
Answer: -Charismatic but unethical leaders -Unicorn companies -Have a valuation of over $1BN during startup
Question: Theranos answers
Answer: • The claims made that the blood tests worked were false.
• Thousands of blood tests were inaccurate and some cost people their lives.
• Whistleblower went to press.
• Theranos was dissolved in September 2018, and the lawsuits continue.
Question: WeWork answers
Answer: • Falsely inflated company value.
• CEO self-dealt in a number of different areas.
• Collapse of IPO.
• CEO was fired and the company has been trying to recover its reputation and financial
stability.
Question: Beoing answers
Answer: • Two Boeing MAX 737 crashes prompted full Federal Aviation Authority investigation.
• Leaked incriminating documents showed that the MAX was known to be unsafe.
• However, Boeing chose profitability over safety and put a poorly-designed, unsafe
airplane into service.
• Stock price took a sharp decline and may never recover.
Question: BP answers
Answer: • In 2005, an oil refinery explosion caused one of the principal investigators to write a
book ("Failure to Learn") about the lack of safety culture over profits.
• In 2010, Deepwater Horizon offshore oil rig explosion killed 11 workers and destroyed a
significant portion of the Gulf Coast.
• Stock price took a sharp decline. Paid billions in legal costs and fines.
, Question: Volkswagon answers
Answer: • European car manufacturer that wanted to enter the North American market.
• Installed a software chip into cars to cheat emissions tests and advertised cars as "clean
diesel."
• Accidentally discovered by research students trying to replicate tests, and an insider
revealed the reason.
• Paid over $30BN in fines & legal fees, and many of their executives have received jail
sentences.
Question: Wells Fargo answers
Answer: • US retail bank with an aggressive sales culture
• Defrauded their customers by selling unwanted credit card accounts, opening
unauthorized accounts, transferring funds from good accounts to bad/unauthorized accounts, and making
unauthorized credit inquiries.
• Complaints to the Consumer Financial Protection Bureau and anonymous tips by
employees to journalists helped uncover the fraud.
Question: A Measure of the World's Most Ethical Companies
Answer: -In 2020, 132 companies in 21 countries were considered to be the world's most ethical companies.
-These companies outperform the large-cap index by 13.5%.
Question: The Need for an Ethical Workplace
Answer: "Companies that invest in ethics reap an enormous return. Better workplace ethics cuts business risks
by reducing the chance that serious ethics problems will throw companies off course and distract them from
their core business." Ethics Compliance Initiative CEO, Patricia Harned
• Lawsuits
• Fines
• Penalties
• Jail time
• Company folded
• Lost trust
• Lives were lost
Question: Maintain Your Own Ethical Integrity
Answer: • Prepare to take a stand when needed
• Understand what the ethical culture and climate is in the organization
Question: What Are the Elements of Business Ethics
Answer: Defining: Ethics & Moral Principles
Question: Ethics
Answer: A system of moral principles accepted by a social group
Question: Moral Principles
Answer: The principles of right and wrong that are accepted by an individual or a social group
Question: Different social groups will have different moral principles, and the rules of conduct in each social
group may be different.
Answer: • Religious organizations
• Social groups
• Sporting events
