Instructor Manual: Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business Ethics
Instructor Manual
Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business
Ethics
Table of Contents
Purpose and Perspective of the Chapter.......................................................................................................2
Cengage Supplements.................................................................................................................................2
Chapter Objectives......................................................................................................................................2
Complete List of Chapter Activities and Assessments................................................................................2
Key Terms...................................................................................................................................................3
What's New in This Chapter........................................................................................................................4
Chapter Outline...........................................................................................................................................5
Discussion Questions.................................................................................................................................15
Additional Activities and Assignments......................................................................................................17
Appendix...................................................................................................................................................21
Generic Rubrics......................................................................................................................................21
Standard Wri琀椀ng Rubric........................................................................................................................21
Standard Discussion Rubric...................................................................................................................22
1
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business Ethics
Purpose and Perspec琀椀ve of the Chapter
The purpose of this chapter is to provide an overview of business ethics. First, we develop a definition of
business ethics and discuss why it has become an important topic in business education. Next, we
examine the evolution of business ethics in North America and explore the benefits of ethical decision
making in business. Finally, we provide a framework for examining business ethics in this text.
Cengage Supplements
The following product-level supplements provide additional information that may help you in preparing
your course. They are available in the Instructor Resource Center.
Transition Guide (provides information about what’s new from edition to edition)
Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by
chapter with seat time)
PowerPoint (provides text-based lectures and presentations)
Test Bank (contains assessment questions and problems)
Role Play Exercises (provides in-class behavioral simulation exercises)
Guide to Teaching Online (provides information about the key assets within the product and how
to implement/facilitate use of the assets in synchronous and asynchronous teaching environments)
Accelerated Course Syllabus (provides guidance on the recommended delivery of course
materials given a 5-week, 8-week, 12-week, and 16-week course)
MindTap User Guide (provides information on how to navigate and use MindTap)
Chapter Objec琀椀ves
The following objectives are addressed in this chapter:
1.1 Explore conceptualizations of business ethics from an organizational perspective
1.2 Examine the historical foundations and evolution of business ethics
1.3 Provide evidence that ethical value systems support business performance
1.4 Describe the extent of ethical misconduct in the workplace and the pressures for unethical
behavior
Complete List of Chapter Ac琀椀vi琀椀es and Assessments
For additional guidance refer to the Teaching Online Guide.
Chapter PPT slide Activity/Assessment Duration
Objective
1.1 3 PowerPoint: Icebreaker 5 minutes
1.1 7 PowerPoint: Knowledge Check 2 minutes
1.3 23–24 PowerPoint: Discussion Activity 1 10 minutes
1.3 30–31 PowerPoint: Debate Issue 15 minutes
1.4 37–38 PowerPoint: Discussion Activity 2 10 minutes
1.1–1.4 N/A MindTap: Learn It: Concept Check 10–15 minutes
Quiz: Chapter 01 The Importance
2
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business Ethics
of Business Ethics
1.1–1.4 N/A MindTap: Assignment: Chapter 01 25 minutes
The Importance of Business Ethics
1.1–1.4 N/A MindTap: Video Case: Chapter 01 20 minutes
The Importance of Business Ethics
[return to top]
Key Terms
business ethics: Comprises organizational principles, values, and norms that may originate from
individuals, organizational statements, or from the legal system that primarily guide individual and group
behavior in the world of business
Consumers’ Bill of Rights: From President John F. Kennedy’s 1962 “Special Message on Protecting the
Consumer Interest” that outlined four basic consumer rights: the right to safety, the right to be informed,
the right to choose, and the right to be heard
corporate social responsibility (CSR): An organization’s obligation to maximize its positive impact on
stakeholders and minimize its negative impact
Defense Industry Initiative on Business Ethics and Conduct: An organization developed to guide
corporate support for ethical conduct
Dodd–Frank Wall Street Reform and Consumer Protection Act: Legislation that addressed some of
the issues related to the financial crisis and recession and designed to make the financial services industry
more ethical and responsible
Environmental Social Governance (ESG): A framework for evaluation of firm performance in the areas
of environmental, social, and governance
ethical culture: Acceptable behavior as defined by the company and industry; reflects the integrity of
decisions made and is a function of many factors, including corporate policies, top management’s
leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior
ethics: Behavior or decisions made within a groups’ values or morals
Federal Sentencing Guidelines for Organizations (FSGO): Guidelines that codified into law incentives
to reward organizations for taking action to prevent misconduct, such as developing effective internal
legal and ethical compliance programs
Global Compact: Set of 10 principles concerning human rights, labor, the environment, and anti-
corruption; the purpose is to create openness and alignment among business, government, society, labor,
and the United Nations
moral dilemma: Two or more morals in conflict with one another
morals: A person’s personal philosophies about what is right or wrong
principles: Specific and pervasive boundaries for behavior that should not be violated
Sarbanes–Oxley Act: The most far-reaching change in organizational control and accounting regulations
since the Securities and Exchange Act of 1934, which made securities fraud a criminal offense and
stiffened penalties for corporate fraud
3
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business Ethics
value dilemma: Two or more beliefs/ideals in conflict with one another
values: Enduring beliefs and ideals that are socially enforced
workplace integrity: The pressure to compromise organizational standards, observed misconduct,
reporting of misconduct when observed, and retaliation against reports
[return to top]
What's New in This Chapter
The following elements are improvements in this chapter from the previous edition:
Added new An Ethical Dilemma feature
Updated Table 1-1: Observed Misconduct in the U.S. Workforce with new data
Updated Figure 1-1: Global Trust in Industry Sectors with new data
Updated Table 1-2: Timeline of Ethical and Socially Responsible Concerns to include the 2010s
Expanded the timeline of business ethics development
Added new section “The 2010s: New Challenges in Business Ethics,” which discusses The
Dodd–Frank Wall Street Reform and Consumer Protection Act, anti-bribery legislation, the
multigenerational workplace, and the legal and regulatory environment
Added new section “The 2020s and Beyond,” which discusses Environmental Social Governance
(ESG), climate change, artificial intelligence (AI), and big data
Added new Business Ethics in the Real World boxed feature: “The Nuts and Bolts of the ‘Robot
Tax’ Debate”
Added new Debate Issue boxed feature: “Does Being Ethical Result in Better Performance?”
Updated Table 1-3: Our Framework for Studying Business Ethics
[return to top]
Chapter Outline
In the outline below, each element includes references (in parentheses) to related content. “#.#” refers to
the chapter objective; “PPT Slide #” refers to the slide number in the PowerPoint deck for this chapter
(provided in the PowerPoints section of the Instructor Resource Center). Introduce the chapter and use
the Ice Breaker in the PPT if desired. Review learning objectives for Chapter 1. (PPT Slide 2).
I. Business Ethics Defined (1.1, PPT Slides 4–7)
a. Business ethics is a complicated and controversial topic. Highly visible business ethics
issues influence the public’s attitudes toward business and can destroy trust.
The field of business ethics concerns questions about whether specific business
practices are acceptable.
Business ethics is controversial, and there is no universally accepted approach
for resolving ethical issues. Business ethics is controversial, and there is no
universally accepted approach for resolving ethical issues.
Values and judgments play a critical role in the making of ethical decisions.
b. Morals refer to a person’s personal philosophies about what is right or wrong.
c. Business ethics comprises organizational principles, values, and norms that may
originate from individuals, organizational statements, or from the legal system that
primarily guide individual and group behavior in the world of business.
4
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
Instructor Manual
Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business
Ethics
Table of Contents
Purpose and Perspective of the Chapter.......................................................................................................2
Cengage Supplements.................................................................................................................................2
Chapter Objectives......................................................................................................................................2
Complete List of Chapter Activities and Assessments................................................................................2
Key Terms...................................................................................................................................................3
What's New in This Chapter........................................................................................................................4
Chapter Outline...........................................................................................................................................5
Discussion Questions.................................................................................................................................15
Additional Activities and Assignments......................................................................................................17
Appendix...................................................................................................................................................21
Generic Rubrics......................................................................................................................................21
Standard Wri琀椀ng Rubric........................................................................................................................21
Standard Discussion Rubric...................................................................................................................22
1
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business Ethics
Purpose and Perspec琀椀ve of the Chapter
The purpose of this chapter is to provide an overview of business ethics. First, we develop a definition of
business ethics and discuss why it has become an important topic in business education. Next, we
examine the evolution of business ethics in North America and explore the benefits of ethical decision
making in business. Finally, we provide a framework for examining business ethics in this text.
Cengage Supplements
The following product-level supplements provide additional information that may help you in preparing
your course. They are available in the Instructor Resource Center.
Transition Guide (provides information about what’s new from edition to edition)
Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by
chapter with seat time)
PowerPoint (provides text-based lectures and presentations)
Test Bank (contains assessment questions and problems)
Role Play Exercises (provides in-class behavioral simulation exercises)
Guide to Teaching Online (provides information about the key assets within the product and how
to implement/facilitate use of the assets in synchronous and asynchronous teaching environments)
Accelerated Course Syllabus (provides guidance on the recommended delivery of course
materials given a 5-week, 8-week, 12-week, and 16-week course)
MindTap User Guide (provides information on how to navigate and use MindTap)
Chapter Objec琀椀ves
The following objectives are addressed in this chapter:
1.1 Explore conceptualizations of business ethics from an organizational perspective
1.2 Examine the historical foundations and evolution of business ethics
1.3 Provide evidence that ethical value systems support business performance
1.4 Describe the extent of ethical misconduct in the workplace and the pressures for unethical
behavior
Complete List of Chapter Ac琀椀vi琀椀es and Assessments
For additional guidance refer to the Teaching Online Guide.
Chapter PPT slide Activity/Assessment Duration
Objective
1.1 3 PowerPoint: Icebreaker 5 minutes
1.1 7 PowerPoint: Knowledge Check 2 minutes
1.3 23–24 PowerPoint: Discussion Activity 1 10 minutes
1.3 30–31 PowerPoint: Debate Issue 15 minutes
1.4 37–38 PowerPoint: Discussion Activity 2 10 minutes
1.1–1.4 N/A MindTap: Learn It: Concept Check 10–15 minutes
Quiz: Chapter 01 The Importance
2
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business Ethics
of Business Ethics
1.1–1.4 N/A MindTap: Assignment: Chapter 01 25 minutes
The Importance of Business Ethics
1.1–1.4 N/A MindTap: Video Case: Chapter 01 20 minutes
The Importance of Business Ethics
[return to top]
Key Terms
business ethics: Comprises organizational principles, values, and norms that may originate from
individuals, organizational statements, or from the legal system that primarily guide individual and group
behavior in the world of business
Consumers’ Bill of Rights: From President John F. Kennedy’s 1962 “Special Message on Protecting the
Consumer Interest” that outlined four basic consumer rights: the right to safety, the right to be informed,
the right to choose, and the right to be heard
corporate social responsibility (CSR): An organization’s obligation to maximize its positive impact on
stakeholders and minimize its negative impact
Defense Industry Initiative on Business Ethics and Conduct: An organization developed to guide
corporate support for ethical conduct
Dodd–Frank Wall Street Reform and Consumer Protection Act: Legislation that addressed some of
the issues related to the financial crisis and recession and designed to make the financial services industry
more ethical and responsible
Environmental Social Governance (ESG): A framework for evaluation of firm performance in the areas
of environmental, social, and governance
ethical culture: Acceptable behavior as defined by the company and industry; reflects the integrity of
decisions made and is a function of many factors, including corporate policies, top management’s
leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior
ethics: Behavior or decisions made within a groups’ values or morals
Federal Sentencing Guidelines for Organizations (FSGO): Guidelines that codified into law incentives
to reward organizations for taking action to prevent misconduct, such as developing effective internal
legal and ethical compliance programs
Global Compact: Set of 10 principles concerning human rights, labor, the environment, and anti-
corruption; the purpose is to create openness and alignment among business, government, society, labor,
and the United Nations
moral dilemma: Two or more morals in conflict with one another
morals: A person’s personal philosophies about what is right or wrong
principles: Specific and pervasive boundaries for behavior that should not be violated
Sarbanes–Oxley Act: The most far-reaching change in organizational control and accounting regulations
since the Securities and Exchange Act of 1934, which made securities fraud a criminal offense and
stiffened penalties for corporate fraud
3
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
, Instructor Manual: Ferrell, Business Ethics, 13e, 2022, 9781337614436; Chapter 01: The Importance of Business Ethics
value dilemma: Two or more beliefs/ideals in conflict with one another
values: Enduring beliefs and ideals that are socially enforced
workplace integrity: The pressure to compromise organizational standards, observed misconduct,
reporting of misconduct when observed, and retaliation against reports
[return to top]
What's New in This Chapter
The following elements are improvements in this chapter from the previous edition:
Added new An Ethical Dilemma feature
Updated Table 1-1: Observed Misconduct in the U.S. Workforce with new data
Updated Figure 1-1: Global Trust in Industry Sectors with new data
Updated Table 1-2: Timeline of Ethical and Socially Responsible Concerns to include the 2010s
Expanded the timeline of business ethics development
Added new section “The 2010s: New Challenges in Business Ethics,” which discusses The
Dodd–Frank Wall Street Reform and Consumer Protection Act, anti-bribery legislation, the
multigenerational workplace, and the legal and regulatory environment
Added new section “The 2020s and Beyond,” which discusses Environmental Social Governance
(ESG), climate change, artificial intelligence (AI), and big data
Added new Business Ethics in the Real World boxed feature: “The Nuts and Bolts of the ‘Robot
Tax’ Debate”
Added new Debate Issue boxed feature: “Does Being Ethical Result in Better Performance?”
Updated Table 1-3: Our Framework for Studying Business Ethics
[return to top]
Chapter Outline
In the outline below, each element includes references (in parentheses) to related content. “#.#” refers to
the chapter objective; “PPT Slide #” refers to the slide number in the PowerPoint deck for this chapter
(provided in the PowerPoints section of the Instructor Resource Center). Introduce the chapter and use
the Ice Breaker in the PPT if desired. Review learning objectives for Chapter 1. (PPT Slide 2).
I. Business Ethics Defined (1.1, PPT Slides 4–7)
a. Business ethics is a complicated and controversial topic. Highly visible business ethics
issues influence the public’s attitudes toward business and can destroy trust.
The field of business ethics concerns questions about whether specific business
practices are acceptable.
Business ethics is controversial, and there is no universally accepted approach
for resolving ethical issues. Business ethics is controversial, and there is no
universally accepted approach for resolving ethical issues.
Values and judgments play a critical role in the making of ethical decisions.
b. Morals refer to a person’s personal philosophies about what is right or wrong.
c. Business ethics comprises organizational principles, values, and norms that may
originate from individuals, organizational statements, or from the legal system that
primarily guide individual and group behavior in the world of business.
4
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to
a publicly accessible website, in whole or in part.
