Complete the below:
SELF-ASSESSMENT EXERCISE
How ethical are you? Review each of the following descriptions. For each, circle whether you believe the behavior described is ethical or unethical.
1. A company president found that a competitor had made an important scientific discovery that would Ethical sharply reduce the profits of his own company. The president hired a key employee of the competitor in an Unethical attempt to learn the details of the discovery.
2. To increase profits, a general manager used a production process that exceeded legal limits for environ- Ethical mental pollution. Unethical
3. Because of pressure from her brokerage firm, a stockbroker recommended a type of bond that she did Ethical not consider to be a good investment. Unethical
4. A small business received one-fourth of its revenues in the form of cash. On the company's income Ethical tax forms, the owner reported only one-half of the cash receipts. Unethical
5. A corporate executive promoted a loyal friend and competent manager to the position of divisional Ethical vice president in preference to a better qualified manager with whom she had no close ties. Unethical
6. An employer received applications for a supervisor's position from two equally qualified applicants. The Ethical employer hired the male applicant because he thought some employees might resent being supervised Unethical
7. An engineer discovered what he perceived to be a product design flaw that constituted a safety hazard. Ethical His company declined to correct the flaw. The engineer decided to keep quiet, rather than taking his Unethical
complaint outside the company.
8. A comptroller selected a legal method of financial reporting that concealed some embarrassing finan- Ethicalcial facts. Otherwise, those facts would have been public knowledge. Unethical
9. A company paid a $350,000 "consulting" fee to an official of a foreign country. In return, the offi- Ethical cial promised to help the company obtain a contract that should produce a $10 million profit for the Unethicaln company.
10. A member of a corporation's board of directors learned that his company intended to announce a stock Ethical split and increase its dividend. On the basis of this favorable information, the director bought addi- Unethicaltional shares of the company's stock. Following the announcement of the information, he sold the stock at a gain.