Professional Conduct & Organizational Ethics Flashcards

A company publicly commits to sustainability but internally ignores environmental policies. This is known as:

Answer: Greenwashing

Greenwashing occurs when an organization claims environmental responsibility without genuine internal commitment or action.

Which ethical framework evaluates actions based on their adherence to rules or duties regardless of consequences?

Answer: Deontology

Deontology judges the morality of actions based on adherence to rules and duties, not on outcomes.

An employee reports financial misconduct to regulators after internal channels fail to respond. This person is known as a:

Answer: Whistleblower

A whistleblower is someone who reports illegal or unethical organizational conduct, often after internal remedies have been exhausted.

What does 'due diligence' mean in the context of organizational ethics?

Answer: Conducting thorough investigations to identify ethical risks before making decisions

Due diligence in ethics means proactively investigating potential risks and harms before taking action or entering into agreements.

Which situation BEST illustrates the 'slippery slope' concept in professional ethics?

Answer: Small ethical compromises that gradually lead to major misconduct

The slippery slope occurs when minor ethical violations are tolerated, normalizing larger misconduct over time.

In stakeholder theory, which group is considered a PRIMARY stakeholder of a corporation?

Answer: Employees and shareholders

Primary stakeholders—such as employees, shareholders, customers, and suppliers—have a direct economic relationship with the firm.

An ethics officer is asked by a CEO to drop an investigation into senior management misconduct. The officer should:

Answer: Consult with the board or audit committee to ensure the investigation proceeds appropriately

Ethics officers should escalate interference to the board or audit committee to protect the integrity of the investigation.