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WGU D072 Study Guide: Common Ethical Issues and
Organizational Culture Lessons | Complete Study set with
Solutions | 2026 Updates | 100% correct
Section 1 Common Ethical Issues
Lesson 1 – The Importance and Impact of Ethics
● Ethics, Morals, and Values:
○ Ethics refers to the principles that guide behavior based on what is right or
wrong, often set by society or a profession.
○ Morals are personal beliefs about right and wrong, shaped by upbringing,
culture, and experiences.
○ Values are the core beliefs or standards that influence decisions and priorities in
life.
○ Similarities/Differences: Ethics and morals are closely related—both deal with
right and wrong, but ethics are external (societal rules) while morals are internal
(personal beliefs). Values, on the other hand, drive behavior but don’t always
relate to right and wrong. For example, someone may value success, but their
morals dictate how they achieve it.
● Legal Definition:
○ Legal refers to what is permitted by law, meaning actions that follow the rules set
by the government.
● Examples:
○ Legal-Ethical: Donating to a charity and getting a tax write-off (both legal and
morally right).
○ Legal-Unethical: A company legally laying off employees to boost profits, even
though it negatively impacts workers.
○ Illegal-Ethical: A person speeding to get an injured person to the hospital faster.
● Conflict of Interest & Example:
○ A conflict of interest happens when personal interests interfere with
professional duties.
○ Example: A hiring manager giving a job to their friend instead of a more qualified
candidate.
● When Organizational Ethics Clash with Personal Ethics:
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○ If a company’s ethics don’t align with a person’s morals, they may feel pressured
to compromise their beliefs or leave the job. This can cause stress,
dissatisfaction, or even whistleblowing.
● Implications of Ethical Business Practices:
○ Builds trust with customers, attracts good employees, and improves reputation. It
also helps avoid legal trouble and increases long-term success.
● Implications of Unethical Business Practices:
○ Loss of customer trust, legal penalties, high employee turnover, and damaged
brand reputation. Unethical actions might bring short-term gains but usually
cause long-term harm.
Lesson 2 - Organizational Ethics and Corporate Social Responsibility (CSR)
● Corporate Social Responsibility (CSR) Definition:
○ CSR is when businesses go beyond making money and take responsibility for
their impact on society, the environment, and their stakeholders.
● Benefits & Reasons for CSR:
○ Builds a positive brand image, attracts socially conscious consumers and
employees, helps the environment, and can even lead to financial benefits in the
long run.
● Example of a CSR Activity (Not in Course):
○ A tech company providing free coding classes to underprivileged students.
● Six Company Stakeholders & CSR Benefits:
○ Employees – Fair wages, good working conditions.
○ Customers – Safe, high-quality products.
○ Investors – Ethical business increases long-term profits.
○ Suppliers – Fair trade partnerships.
○ Community – Local job creation, charity involvement.
○ Government – Fewer regulatory issues when companies act ethically.
● World Trade Organization (WTO) & Benefits:
○ The WTO helps regulate international trade, reduces trade barriers, and ensures
fair competition between countries. It also helps settle disputes between nations.
● Seven CSR Activities & Who Benefits:
○ Environmental Sustainability – Reduces pollution (benefits the planet and
future generations).
○ Ethical Sourcing – Fair trade practices (helps workers in developing countries).
○ Community Engagement – Donations, volunteering (benefits local
communities).
○ Employee Well-Being – Good wages, mental health support (benefits
employees).
○ Consumer Protection – Safe, ethical products (benefits customers).
○ Diversity & Inclusion – Equal opportunities (benefits marginalized groups).
○ Corporate Governance – Transparency in decision-making (benefits investors
and the public).
● Importance of a Code of Ethics:
○ It gives employees clear guidelines on ethical behavior, prevents misconduct,
and builds trust with customers and stakeholders.
● Nine Ethical Principles:
○ Honesty – Always tell the truth.
WGU D072 Study Guide: Common Ethical Issues and
Organizational Culture Lessons | Complete Study set with
Solutions | 2026 Updates | 100% correct
Section 1 Common Ethical Issues
Lesson 1 – The Importance and Impact of Ethics
● Ethics, Morals, and Values:
○ Ethics refers to the principles that guide behavior based on what is right or
wrong, often set by society or a profession.
○ Morals are personal beliefs about right and wrong, shaped by upbringing,
culture, and experiences.
○ Values are the core beliefs or standards that influence decisions and priorities in
life.
○ Similarities/Differences: Ethics and morals are closely related—both deal with
right and wrong, but ethics are external (societal rules) while morals are internal
(personal beliefs). Values, on the other hand, drive behavior but don’t always
relate to right and wrong. For example, someone may value success, but their
morals dictate how they achieve it.
● Legal Definition:
○ Legal refers to what is permitted by law, meaning actions that follow the rules set
by the government.
● Examples:
○ Legal-Ethical: Donating to a charity and getting a tax write-off (both legal and
morally right).
○ Legal-Unethical: A company legally laying off employees to boost profits, even
though it negatively impacts workers.
○ Illegal-Ethical: A person speeding to get an injured person to the hospital faster.
● Conflict of Interest & Example:
○ A conflict of interest happens when personal interests interfere with
professional duties.
○ Example: A hiring manager giving a job to their friend instead of a more qualified
candidate.
● When Organizational Ethics Clash with Personal Ethics:
, lOMoAR cPSD| 61371432
○ If a company’s ethics don’t align with a person’s morals, they may feel pressured
to compromise their beliefs or leave the job. This can cause stress,
dissatisfaction, or even whistleblowing.
● Implications of Ethical Business Practices:
○ Builds trust with customers, attracts good employees, and improves reputation. It
also helps avoid legal trouble and increases long-term success.
● Implications of Unethical Business Practices:
○ Loss of customer trust, legal penalties, high employee turnover, and damaged
brand reputation. Unethical actions might bring short-term gains but usually
cause long-term harm.
Lesson 2 - Organizational Ethics and Corporate Social Responsibility (CSR)
● Corporate Social Responsibility (CSR) Definition:
○ CSR is when businesses go beyond making money and take responsibility for
their impact on society, the environment, and their stakeholders.
● Benefits & Reasons for CSR:
○ Builds a positive brand image, attracts socially conscious consumers and
employees, helps the environment, and can even lead to financial benefits in the
long run.
● Example of a CSR Activity (Not in Course):
○ A tech company providing free coding classes to underprivileged students.
● Six Company Stakeholders & CSR Benefits:
○ Employees – Fair wages, good working conditions.
○ Customers – Safe, high-quality products.
○ Investors – Ethical business increases long-term profits.
○ Suppliers – Fair trade partnerships.
○ Community – Local job creation, charity involvement.
○ Government – Fewer regulatory issues when companies act ethically.
● World Trade Organization (WTO) & Benefits:
○ The WTO helps regulate international trade, reduces trade barriers, and ensures
fair competition between countries. It also helps settle disputes between nations.
● Seven CSR Activities & Who Benefits:
○ Environmental Sustainability – Reduces pollution (benefits the planet and
future generations).
○ Ethical Sourcing – Fair trade practices (helps workers in developing countries).
○ Community Engagement – Donations, volunteering (benefits local
communities).
○ Employee Well-Being – Good wages, mental health support (benefits
employees).
○ Consumer Protection – Safe, ethical products (benefits customers).
○ Diversity & Inclusion – Equal opportunities (benefits marginalized groups).
○ Corporate Governance – Transparency in decision-making (benefits investors
and the public).
● Importance of a Code of Ethics:
○ It gives employees clear guidelines on ethical behavior, prevents misconduct,
and builds trust with customers and stakeholders.
● Nine Ethical Principles:
○ Honesty – Always tell the truth.
