What is business ethics?
Definition • Core concept
Business ethics is the application of moral principles and
standards to business decisions, behavior, and policies. It asks
whether actions are right or wrong, fair or unfair, beyond just
“Is it legal?”
How is ethics different from law?
Definition • Comparison
Law sets minimum standards enforced by
government and courts. Ethics is broader—it
asks what is right, fair, and responsible, even when something
may be legal but still harmful or unfair.
What is stakeholder theory?
Definition • Framework
Stakeholder theory says managers should consider the interests
of all groups affected by a decision—employees, customers,
shareholders, suppliers, communities, regulators—rather than
focusing only on shareholders.
Define corporate social responsibility (CSR).
Definition • CSR
CSR is the idea that businesses have duties beyond profit and
compliance: to operate in ways that are socially responsible,
environmentally sustainable, and beneficial (or at least not
harmful) to society.
What is a conflict of interest?
Definition • Risk area
A conflict of interest occurs when an employee’s personal
interests (financial, family, relationships) could improperly
influence their professional judgment or decisions for the
company.
What is whistleblowing?
Definition • Behavior
Whistleblowing is reporting suspected illegal, unethical, or
unsafe practices to someone who can act—internally (supervisor,
hotline) or externally (regulator, media) when internal channels
fail or are unsafe.
Describe the utilitarian approach.
Framework • Consequences
The utilitarian approach looks at consequences and chooses the
option that produces the greatest net benefit or least harm for
the greatest number of people.
Describe the rights-based approach.
Framework • Rights
The rights approach asks whether a decision respects and
protects fundamental rights (like privacy, safety, fair pay,
non-discrimination) of each person, not just overall outcomes.
Describe the justice/fairness approach.
Framework • Fairness
The justice approach focuses on fairness: Are benefits and
burdens distributed fairly? Are people treated equally unless
there is a morally relevant reason to treat them differently?
Describe virtue ethics.
Framework • Character
Virtue ethics asks: “What would a person of good character do?”
It emphasizes traits like honesty, courage, integrity, and
responsibility, and aims for decisions that build those virtues.
Which framework fits: consistency & equal treatment?
Framework • Apply
That language points to the justice/fairness
approach—consistent rules, equal treatment, and fair distribution
of benefits and burdens.
Which framework fits: “most benefit, least harm”?
Framework • Apply
“Most benefit, least harm” is utilitarian
thinking—comparing outcomes and choosing the option with the
greatest net positive impact.
Scenario: Sales rep pressured to hide safety issues. Best first step?
Scenario • Safety & honesty
Recognize the conflict between sales pressure and duty to
protect customers. The best first step is to raise the concern
through an appropriate internal channel (supervisor, ethics
hotline) and document the issue—upholding honesty and safety
obligations.
Scenario: Manager wants to reward only top 5% with a policy change. Which principle is at risk?
Scenario • Fairness
The justice/fairness principle may be at risk if the policy
unfairly disadvantages others without a clear, job-related
reason. The manager should check whether rewards and
opportunities are being distributed fairly.
Scenario: Layoffs vs. reduced hours. Which framework compares total impact on all groups?
Scenario • Utilitarian
The utilitarian approach fits best: compare
overall harms and benefits (financial, emotional, community
impact) of layoffs versus reduced hours and pick the option that
minimizes total harm.
Scenario: Monitoring employee emails without notice. Which principle focuses on privacy concerns?
Scenario • Rights
The rights-based approach highlights privacy
and respect for persons. Even if monitoring is legal, employees
should be clearly informed and policies should balance security
with reasonable expectations of privacy.
Scenario: Friend applies for a role you’re hiring for. What’s the key ethical risk?
Scenario • Conflict of interest
The main risk is a conflict of interest. The
ethical response is to disclose the relationship, possibly
recuse yourself from the decision, and ensure a fair, documented
selection process.
Scenario: You discover data is being misreported to regulators. Which actions align with ethical duty?
Scenario • Whistleblowing
Correct answer choices will emphasize internal reporting to the
appropriate level (compliance, ethics, leadership), refusing to
participate in falsification, and escalating or external
reporting if internal channels ignore serious violations.
Deep practice idea: in Test mode, pick a scenario card and say out
loud: (1) stakeholders, (2) main principle, (3) best action. Then
tap to reveal and compare.