Instructor’s Manual and Test
Bank for
Boatright Ethics and the Conduct of Business
Seventh Edition
,Contents
Chapter 1 Ethics in the World of Business 1
Chapter 2 Ethical Decision Making 4
Chapter 3 Ethical Theories 7
Chapter 4 Whistle-Blowing 10
Chapter 5 Trade Secrets and Conflict of Interest 13
Chapter 6 Privacy 17
Chapter 7 Discrimination and Affirmative Action 20
Chapter 8 Employment Rights 23
Chapter 9 Occupational Health and Safety 26
Chapter 10 Marketing, Advertising, and Product Safety 30
Chapter 11 Ethics in Finance 33
Chapter 12 Corporate Social Responsibility 37
Chapter 13 Corporate Governance and Accountability 40
Chapter 14 International Business Ethics 43
© 2012 Pearson Education, Inc. All Rights Reserved.
iii
,Chapter 1
Ethics in the World of Business
CHAPTER SUMMARY
Business ethics is concerned with identifying and understanding the ethical issues that arise in business and with
developing the knowledge and skills needed by a practicing manager to address these issues and to make sound
business decisions—that is, decisions that are sound from both an ethical and a business perspective. Ethical issues are
an inevitable element of business decision making and are deeply intertwined with managerial practice and economic
activity generally. Business ethics is important for managers because many business decisions upon which the success of
individual managers, business organizations, and, indeed, the whole economic system depend, are involved in ethical
issues. Both economics and law are important guides for business decision making, but they are not complete. Nor is
business ethics understood merely as the treatment of ethical issues from a philosophical perspective. As the work of
psychologists and sociologists on organizational misconduct show, it is not enough merely to determine a right course
of action. Misconduct in organizations is also the result of flaws in individual and organizational decision making that
can be corrected only by changes in decision-making processes. Practicing managers must also address the larger
challenge of preventing misconduct within organizations.
CHAPTER OBJECTIVES
• Explain how business decision-making can run afoul of ethical concerns.
• Describe the kinds of decisions that are characteristic of the various levels of business organization.
• Describe the relationship between ethics and the law.
SUGGESTED DISCUSSION PROMPTS
1. What types of ethical concerns do decision-makers at the management level need to take into account?
2. What types of ethical concerns do decision-makers at lower organizational levels need to take into
account?
3. How would you respond to someone who says that a business should always do whatever is in its
economic interests?
4. What is wrong with the thought that abiding by the law is all the ethics that a businessperson needs
to worry about?
5. How does specialized knowledge come into play in the management of ethics?
© 2012 Pearson Education, Inc. All Rights Reserved.
1
, ASSESSMENT FOR IN-CLASS USE
The following assessment has been created for in-class use. This assessment may be available through Pearson’s
MyTest website—allowing for easy access for creating your own tests. This assessment may also be offered in a
Blackboard/Angel/D2L/WebCT package. Please contact your local Pearson sales representative to learn about the
options available. Visit, http://www.pearsonhighered.com/replocator.
Multiple Choice Questions
Choose the BEST possible answer for each of the following.
1. In many cases, rules of business ethics can be determined by .
A. applicable laws
B. company guidelines
C. economic requirements
D. rules of conduct that apply in everyday life
Answer: D
2. The economic character of business can be seen in its .
A. trading characteristics
B. ethical dimensions
C. personal aspects
D. legal guidelines
Answer: A
3. Organization in business is characterized mainly by its .
A. rules
B. hierarchy
C. profits
D. products
Answer: B
4. Decision making in business occurs at various distinctive .
A. places
B. levels
C. objectives
D. profits
Answer: B
5. It is possible for there to be unethical actions that are not .
A. illegal
B. wrong
C. avoidable
D. harmful
Answer: A
© 2012 Pearson Education, Inc. All Rights Reserved.
2
Bank for
Boatright Ethics and the Conduct of Business
Seventh Edition
,Contents
Chapter 1 Ethics in the World of Business 1
Chapter 2 Ethical Decision Making 4
Chapter 3 Ethical Theories 7
Chapter 4 Whistle-Blowing 10
Chapter 5 Trade Secrets and Conflict of Interest 13
Chapter 6 Privacy 17
Chapter 7 Discrimination and Affirmative Action 20
Chapter 8 Employment Rights 23
Chapter 9 Occupational Health and Safety 26
Chapter 10 Marketing, Advertising, and Product Safety 30
Chapter 11 Ethics in Finance 33
Chapter 12 Corporate Social Responsibility 37
Chapter 13 Corporate Governance and Accountability 40
Chapter 14 International Business Ethics 43
© 2012 Pearson Education, Inc. All Rights Reserved.
iii
,Chapter 1
Ethics in the World of Business
CHAPTER SUMMARY
Business ethics is concerned with identifying and understanding the ethical issues that arise in business and with
developing the knowledge and skills needed by a practicing manager to address these issues and to make sound
business decisions—that is, decisions that are sound from both an ethical and a business perspective. Ethical issues are
an inevitable element of business decision making and are deeply intertwined with managerial practice and economic
activity generally. Business ethics is important for managers because many business decisions upon which the success of
individual managers, business organizations, and, indeed, the whole economic system depend, are involved in ethical
issues. Both economics and law are important guides for business decision making, but they are not complete. Nor is
business ethics understood merely as the treatment of ethical issues from a philosophical perspective. As the work of
psychologists and sociologists on organizational misconduct show, it is not enough merely to determine a right course
of action. Misconduct in organizations is also the result of flaws in individual and organizational decision making that
can be corrected only by changes in decision-making processes. Practicing managers must also address the larger
challenge of preventing misconduct within organizations.
CHAPTER OBJECTIVES
• Explain how business decision-making can run afoul of ethical concerns.
• Describe the kinds of decisions that are characteristic of the various levels of business organization.
• Describe the relationship between ethics and the law.
SUGGESTED DISCUSSION PROMPTS
1. What types of ethical concerns do decision-makers at the management level need to take into account?
2. What types of ethical concerns do decision-makers at lower organizational levels need to take into
account?
3. How would you respond to someone who says that a business should always do whatever is in its
economic interests?
4. What is wrong with the thought that abiding by the law is all the ethics that a businessperson needs
to worry about?
5. How does specialized knowledge come into play in the management of ethics?
© 2012 Pearson Education, Inc. All Rights Reserved.
1
, ASSESSMENT FOR IN-CLASS USE
The following assessment has been created for in-class use. This assessment may be available through Pearson’s
MyTest website—allowing for easy access for creating your own tests. This assessment may also be offered in a
Blackboard/Angel/D2L/WebCT package. Please contact your local Pearson sales representative to learn about the
options available. Visit, http://www.pearsonhighered.com/replocator.
Multiple Choice Questions
Choose the BEST possible answer for each of the following.
1. In many cases, rules of business ethics can be determined by .
A. applicable laws
B. company guidelines
C. economic requirements
D. rules of conduct that apply in everyday life
Answer: D
2. The economic character of business can be seen in its .
A. trading characteristics
B. ethical dimensions
C. personal aspects
D. legal guidelines
Answer: A
3. Organization in business is characterized mainly by its .
A. rules
B. hierarchy
C. profits
D. products
Answer: B
4. Decision making in business occurs at various distinctive .
A. places
B. levels
C. objectives
D. profits
Answer: B
5. It is possible for there to be unethical actions that are not .
A. illegal
B. wrong
C. avoidable
D. harmful
Answer: A
© 2012 Pearson Education, Inc. All Rights Reserved.
2
