D072 PRE-ASSESSMENT QUESTIONS
AND ANSWERS WITH COMPLETE
SOLUTIONS (GRADED A+)
1. Offshoring & Legal-Ethical Framework
An organization plans to close its local factory and shift manufacturing
operations overseas. This brings opposition from employees. Which term
describes this organizational move?
✔✔ ANSWER: Legal-Ethical (depending on Context: Legal-Unethical in some
curricula)
Rationale: Shifting manufacturing operations overseas to reduce labor costs is
completely legal under international business law (Legal). When done responsibly
with fair severance and transition support, companies argue it aligns with fiduciary
duties to remain competitive (Legal-Ethical). However, if local communities and
long-term workers are left without support, critics often view it as Legal-
Unethical.
2. Whistleblowing & Public Awareness
Individual authors wrote books about the negative environmental impacts of
some industries, including the coal industry. Which benefit did the authors'
work have on society?
✔✔ ANSWER: It drew the public's attention to the targeted issue.
Rationale: Investigative writing, public scholarship, and environmental journalism
serve to educate the public, increase transparency, and spark policy or regulatory
changes by spotlighting systemic issues that would otherwise stay hidden.
3. Accounting Integrity & Stakeholder Impact
The accountant of a company was asked to change the current quarterly sales
results by adding sales that were set to occur next quarter. Which stakeholder
group is directly impacted by this action?
✔✔ ANSWER: Shareholders
Rationale: Falsifying quarterly reports (revenue recognition fraud) misleads
investors and shareholders about the company's true financial health.
,Shareholders rely on accurate financial statements to value their equity, make
buying/selling decisions, and evaluate corporate management.
4. Operational Decisions & Ethical Quality
A new manager in a restaurant decides to cut costs by purchasing sub-
standard materials. What are the implications of this manager's actions?
✔✔ ANSWER: The customer base of the restaurant will decrease.
Rationale: Cutting corners on raw inputs/ingredients compromises product
quality, consistency, and customer safety. Poor quality leads to bad customer
experiences, lost brand trust, negative reviews, and ultimately a shrinking
customer base and falling revenue.
A U.S. company hires a new employee from Germany. The new employee is being
trained by other employees on the company's conflict resolution practices in
alignment with the company's mission and ethical standards. As part of the
training, the employee identifies how the ethical values of the company are
consistent with the employee's values.
Which aspect of the company is the employee learning?
Organizational culture :The shared values, beliefs, and norms of an organization
that affect the strategies and operating procedures of the business
A senior manager asks an employee to omit a key section from a financial report to
hide some distressing data.
Which aspect of the organization is being violated by the manager's behavior?
, Ethics :Principles that serve as a compass about how to behave
A company's chief executive officer (CEO) has decided to launch a corporate
social responsibility (CSR) program.
Who are the intended beneficiaries of a CSR program?
Community members
A corporation's code of ethics endorses a green work place.
Which employee activity models this code?
Starting an office recycling program
A manager recently decides to get employees involved in a new corporate social
responsibility (CSR) initiative to show that the company is dedicated to making a
difference in the local community.
Which activity demonstrates an appropriate way to meet this goal?
Initiate a community technology recycling program for old computers
AND ANSWERS WITH COMPLETE
SOLUTIONS (GRADED A+)
1. Offshoring & Legal-Ethical Framework
An organization plans to close its local factory and shift manufacturing
operations overseas. This brings opposition from employees. Which term
describes this organizational move?
✔✔ ANSWER: Legal-Ethical (depending on Context: Legal-Unethical in some
curricula)
Rationale: Shifting manufacturing operations overseas to reduce labor costs is
completely legal under international business law (Legal). When done responsibly
with fair severance and transition support, companies argue it aligns with fiduciary
duties to remain competitive (Legal-Ethical). However, if local communities and
long-term workers are left without support, critics often view it as Legal-
Unethical.
2. Whistleblowing & Public Awareness
Individual authors wrote books about the negative environmental impacts of
some industries, including the coal industry. Which benefit did the authors'
work have on society?
✔✔ ANSWER: It drew the public's attention to the targeted issue.
Rationale: Investigative writing, public scholarship, and environmental journalism
serve to educate the public, increase transparency, and spark policy or regulatory
changes by spotlighting systemic issues that would otherwise stay hidden.
3. Accounting Integrity & Stakeholder Impact
The accountant of a company was asked to change the current quarterly sales
results by adding sales that were set to occur next quarter. Which stakeholder
group is directly impacted by this action?
✔✔ ANSWER: Shareholders
Rationale: Falsifying quarterly reports (revenue recognition fraud) misleads
investors and shareholders about the company's true financial health.
,Shareholders rely on accurate financial statements to value their equity, make
buying/selling decisions, and evaluate corporate management.
4. Operational Decisions & Ethical Quality
A new manager in a restaurant decides to cut costs by purchasing sub-
standard materials. What are the implications of this manager's actions?
✔✔ ANSWER: The customer base of the restaurant will decrease.
Rationale: Cutting corners on raw inputs/ingredients compromises product
quality, consistency, and customer safety. Poor quality leads to bad customer
experiences, lost brand trust, negative reviews, and ultimately a shrinking
customer base and falling revenue.
A U.S. company hires a new employee from Germany. The new employee is being
trained by other employees on the company's conflict resolution practices in
alignment with the company's mission and ethical standards. As part of the
training, the employee identifies how the ethical values of the company are
consistent with the employee's values.
Which aspect of the company is the employee learning?
Organizational culture :The shared values, beliefs, and norms of an organization
that affect the strategies and operating procedures of the business
A senior manager asks an employee to omit a key section from a financial report to
hide some distressing data.
Which aspect of the organization is being violated by the manager's behavior?
, Ethics :Principles that serve as a compass about how to behave
A company's chief executive officer (CEO) has decided to launch a corporate
social responsibility (CSR) program.
Who are the intended beneficiaries of a CSR program?
Community members
A corporation's code of ethics endorses a green work place.
Which employee activity models this code?
Starting an office recycling program
A manager recently decides to get employees involved in a new corporate social
responsibility (CSR) initiative to show that the company is dedicated to making a
difference in the local community.
Which activity demonstrates an appropriate way to meet this goal?
Initiate a community technology recycling program for old computers
