📘 1. Ethics Basics
What is ethics, and how does it differ from law?
Ethics is about moral right and wrong; law is a set of rules enforced by governments. Something legal may still be unethical.
What is the definition of corruption in an organization?
The misuse of power for personal gain.
What is the definition of transparency in a business context?
Openness about internal processes, allowing external monitoring and accountability.
What is greenwashing?
Making misleading claims to appear environmentally friendly without real sustainable action.
What is a stakeholder in business ethics? Give one example.
A stakeholder is anyone affected by business decisions—e.g., employees, customers, the community.
Name two forms of corruption.
Bribery and fraud (others include favoritism, absenteeism, resource abuse).
How does transparency help reduce corruption?
It exposes unethical behavior, making it harder to hide misconduct.
Is it ethical to charge more for Fair Trade products? Why or why not?
Yes, if the higher price supports fair wages and ethical sourcing.
What makes an issue an "ethical dilemma"?
A conflict between two or more moral values where no choice seems entirely right or wrong.
List two negative effects of corruption on society.
Increases poverty and unemployment; worsens inequality.
Name one limitation of transparency.
Cultural norms, legal restrictions, or performative transparency can limit real change.
How can businesses balance profit with environmental responsibility?
By investing in clean technologies, reducing waste, and making sustainability part of core strategy.
Name one ethical principle and apply it to a business context.
Non-maleficence: A company should avoid harming the environment or communities.
How can culture influence corruption in an organization or country?
Some cultures may normalize corruption through social justifications or informal rules.
What is the Fashion Transparency Index, and what does it measure?
It ranks fashion brands by how openly they disclose their human rights and sustainability practices.
Should a company stop using a supplier known for environmental harm if they offer the best price?
Ethically, yes—they should seek alternatives that align with sustainability values.
Why is ethics important in long-term business strategy?
Ethical behavior builds trust, loyalty, and sustainability—protecting the company’s reputation and ensuring social license to operate.
What makes corruption difficult to detect and eliminate in large companies?
It’s often hidden, systemic, and supported by silence or fear among employees.
Give an example of organizational hypocrisy related to transparency.
A company claims to be green but hides pollution data or ignores poor labor conditions.
What’s one example of an ethical dilemma related to product lifespan and sustainability?
Designing products to break quickly (planned obsolescence) boosts sales but increases environmental waste.