1. B. BUSINESS ETHICS 1.Ethical behavior is behavior that conforms to individual beliefs and social standings about what is right and good. It is based on values such as trustworthiness, respect, responsibility, caring, justice, good, citizenship, and having adherence to moral rules. Ethics are important for getting along with others, living with yourself and having a good character 2.A person’s morals serve as a guide in regard to what’s good and what’s bad, while values indicate what is important. If a person’s morals and values are in conflict, the person may have a hard time choosing between doing what’s right and what will make him or her happy

2. 3. A code of ethics is a document that explains specifically how employees should respond in different situations. It is useful when problems arise in a business, as it helps different people approach problems in the same way. 4. A business may have an ethical dilemma if it has to weigh values and morals against profitability and competitiveness. Businesses may be faced with ethical dilemmas regarding the downsizing of staff, pollution control, disposal of toxic waste, depletion and allocation of scarce resources, employee rights, discrimination against women and minorities, and product safety

3. 5. A person faced with an ethical dilemma should take into consideration who will be helped and who will be hurt by the decision. He or she should also consider the benefits and problems of the decision and whether it will survive the test of time 6. A whistle-blowing employee is likely to inform officials or the public about unethical, immoral, or illegal actions at the workplace. An employee may blow the whistle if he or she discovers someone submitting false information on an expense report, or that the business is ignoring hiring procedures for minorities, knowingly ignoring workplace safety codes, or not observing mandated health codes

4. 7. Can include any three of the following: false or misleading advertising, bait and switch selling, double ticketing, bank fraud, consumer fraud, contract fraud, insurance fraud, mail fraud, pyramid scheme fraud, stock market fraud, telemarketing fraud, or welfare fraud 8. Auditors are outside accountants who check the financial records or companies to ensure that no fraud has occurred, accounting scandals have the potential to cost shareholders millions of dollars, which is why regular auditing of a company’s assets and liabilities is important 9.Insider trading occurs when someone makes an investment decision based on confidential information about a company that is not available to the public, this gives the person an unfair advantage over the other investors when buying or selling stock, which is unethical. It is illegal in order to deter people from doing it

5. C. ETHICAL OR UNETHICAL Q 1. a) the company you work for b) the person who brought the lawsuit against the company c) you keep your job d) dishonest; may impede the investigation; justice may not be served; if caught, you could face jail time e) you might get caught later on and go to jail

6. Q. 2 a) the boy/girl that asked you out b) your best friend c) you get to go out on a date d) best friend will be hurt; may lose friendship e) romantic relationships come and go, but friendships last for years

7. Q. 3 a) the person being bullied b) you may be hurt if the bully turns on you c) you may save the person being bullied from more harm d) the bully may chose you as the next target; you could get hurt

8. Q. 4 a)You will be helped with passing the exam b)You will be hurt because you won’t truly be learning anything c)You will do well on the exam d)You may get caught and potentially fail the exam or be expelled from school e)You may get caught later and face the consequences

9. Q. 5 a)Your friend and her family b)The store from which she is stealing c)Her family will have food on the table and won’t go hungry d)She may get caught and arrested; stealing is against the law, and knowledge of a crime can get you in trouble, too. e)It will help her family eat for a short time, but then she will need to seat again

10. D. EVALUATING (UN) ETHICAL BEHAVIOUR Q. 1 If true, the actions of those few retailers demonstrate fraud and are unethical. The actions are fraudulent because such retailers are lying to their patrons about their winnings and pretending to be purchasers of the winning tickets.

11. Q. 2 This behaviour is ethical because the company removed the products from being sold when it became aware of the issue. Not to do so would have been unethical as it would have knowingly harmed numerous animals.

12. Q. 3 This behaviour is unethical because the teenager in this case gave fraudulent advice to others. He intentionally deceived others for his own gain.

13. Q. 4 This behaviour is unethical. People in the community were exposed to the deadly bacteria for longer than necessary because they weren’t made aware of the situation as soon as it was discovered.

14. Q. 5 This behaviour is ethical because the public was informed of the error as soon as it was discovered. To not release the information would have been unethical.

15. F. ETHICS AND CORPORATE SOCIAL RESPONSIBILITY Q. 1 A socially responsible business provides goods and services in line with society’s values. Socially responsible businesses are concerned about how they protect customers and treat employees and shareholders.

16. Q. 2 1)Providing a safe and healthy work environment for employees may improve employee productivity and diminish work-related accidents and sick time. 2)Adopting fair labour policies encourages skilled workers to work for your company 3)A business that protects the environment can encourage communities to do the same, and then we all benefit. 4)Truthful advertising benefits consumers as they can make their purchases knowing that any claims made about a product or service are accurate 5)Avoiding price discrimination helps remove any confusion over a products price 6)Making it easier for employees to donate to charities may encourage them to donate more, and thus the charities benefit by getting donations they might not otherwise have received

17. Q.3 Corporations have a duty to disclose all important information to shareholders, business partners, lenders, insurers, communities, regulators, consumers, employees, and investors. Employees who have knowledge that a law, regulation, policy or ethical guideline has been, or may be violated must promptly report such information

18. Q.4 Under the act, workers have three basic rights in the workplace: the right to refuse unsafe work, the right to participate in the workplace health and safety activities, and the right to know about the actual hazards in the workplace. In order to comply with the act, employers have to provide healthy and safe work environments for their employees. Q. 5 The invisible barriers of the glass ceiling are most likely to affect women, minorities, and the disabled as they attempt to move into senior leadership positions.

19. Q.6 Harassment refers to making a particular person or group feel uncomfortable in a work situation because or race, religion, or gender. Examples include bullying, stalking, and sexual harassment Q.7 Employers have an obligation to take appropriate steps to eliminate discrimination against employees. Failure to accommodate, short of undue hardship for the business, may result in legal action against the business

20. Q.8 The environment has typically been low on many business’s lists of priorities. Even with more media attention and the passing of new legislation, some businesses are slow to react because of the high costs of doing so and the potential decrease in profitability

21. Q.9 1.Contributing to sustainable development through pollution prevention 2.Protecting the environment and human life/health from risks associated with toxic substances 3.Establishing a public registry that improves the public’s access to environmental information 4.Giving citizens the right to sue when a CEPA violation results in significant harm to the environment 5.Providing expanded whistle-blower protection

22. Q.10 The Kyoto Protocol requires countries to reduce carbon dioxide emissions so, by 2012, they will be about 5 percent less than they were in 1990. Canada’s progress has been much slower the anticipated because reducing emissions has provided more difficult and costly for both businesses and individuals that was initially expected

23. Q.11 Energy efficiencies and waste reduction may reduce costs, while the use of modern, cleaner technologies may increase productivity. Responding to environmental and social concerns can attract customers, enhancing a business’s competitive advantage in the marketplace

24. Q.12 In Ontario, the Employment Standard Act sets out certain mandatory minimum conditions of employment. It governs areas such as hours of work, overtime pay, minimum wage, holidays, vacations, equal pay for both males and females, employee benefit plans, pregnancy, parental leave and other leaves of absence, notice of termination or employment, and severance and termination pay.

25. Q.13 On average, women earn 72 cents every dollar men earn. This wage gap may be due to differences in education, experiences, and hours of work, or persistent discriminatory attitude towards women in the workplace

26. Q.14 The law requires all provincially regulated businesses to fully explain what personal information they require from employees or customers, and why they need it, before they obtain it. The law gives individuals the right to demand full disclosure of any personal information a company holds on them, and people can challenge the accuracy or use of their personal information

27. Q.15 Using fair trade helps ensure that the basic labour rights of employees in other countries are respected. Fair trade exemplifies ethical trading because it helps producers in developing countries bypass middlemen so they can sell their products for a fair profit, thereby ensuring that workers are not exploited.

28. H. CORPORATE ETHICS Action Health and safety Anti- discrimination HarassmentAccessiblity Environmental responsibility Labour practices Telling racist jokes x Building a ramp for wheelchair bound employees xx Allowing flexible work hours xx Establishing waste reduction programs x Not hiring someone because of physical disability XXx Paying a woman less that a man do the same nature of work xx Encouraging others to insult others based on race Xx Defining worker’s rights and responsibilities xx Dumping toxic waste in the lake x

29. J. WHISTLE-BLOWING AND THE ENVIRONMENT 1.Chantale’s ethical dilemma is whether she should blow the whistle on her company for disposing medical waste in a municipal landfill, which is illegal and could cause harm to public health. She feels that this is the right thing to do, but risks losing her job by doing so, so she must decide between doing what she feels is right or keeping her job. 2.By knowingly putting potentially harmful medical waste into a municipal landfill Avco Environmental is not protecting the environment and may actually be doing harm to the health of the community. The action is also illegal.

30. K. REVIEW 1.The system of personal beliefs and social standards about right and wrong is called ethics 2.Our values tell us what we think is important, while morals are the rules we decide to use to decide what's good and what's bad 3.Businesses develop a code of ethics to guide employees in a variety if situations 4.An ethical dilemma is a moral problem with a choice between potential right and wrong answers 5.An employee who informs the public of an ethical violation is a whistle-blower

31. 6.A person or business that lies to the public is guilty of fraud 7.A company perpetrating telemarketing fraud may use high-pressure phone calls to get customers to donate to a non-existant charity 8.An audit of U.S. company Enron revealed that it was involved in an accounting scandal 9.Embezzlement is the type of accounting fraud where accountants or senior executives divert company funds for their own gain 10.An accountant who fraudulently records assets and liabilities is “cooking the books”

32. 11.A company’s assets are items that it owns, such as buildings, land and equipment. On the other hand, a company’s liabilities are the debts it owes 12.A person using confidential information about a company to buy and sell shares is involved in insider trading 13.Businesses can exhibit corporate social responsibility through their values, their ethics, and the contribution they make to their communities 14.Because corporations have a duty to report, they must disclose any significant information to shareholders, business partners, lenders, insurers, communities, regulators, consumers, employees, and investors

33. 15.Women are most likely to face gender discrimination in the workplace 16.Women, minorities and the disabled workers may face a glass celling in their desire to reach senior leadership positions 17.Bullying, stalking, verbal insults and ridicule are examples of harassment 18.An employer’s obligation to eliminate discrimination against its employees is know as the duty to accommodate

34. 19.The Kyoto Protocol is the agreement reached by countries worldwide to reduce greenhouse gasses in the atmosphere 20.Pay equity legislation requires employers to provide equal pay for work of equal value 21.Buying fair-trade coffee helps producers in developing countries receive a profit 22.Grassroots movements develop from the bottom and spread up.