Ethics Audit Exam Worksheet
Ethics Audit
Professional Standards & Social Responsibility
Agent Name:
Audit Date:
Instruction: This audit evaluates your understanding of business ethics. Complete all sections with professional clarity.
Part I: Foundation Check
1. Which of the following best defines an "ethical issue"?
Maximizing quarterly profit for investors. A situation where actions result in harm or benefit to others. Any decision that involves a legal labor contract. Following all local and federal business laws.
2. "Business Ethics" is primarily concerned with making choices that are:
Strictly legal, regardless of consequences. Both legal and morally acceptable. Focused solely on shareholder dividends.
3. Success measured by "People, Planet, and Profit" is known as:
The Triple Bottom Line. The Moral Compass. Corporate Philanthropy.
4. Which of these is a SECONDARY stakeholder?
An employee. A customer. A local news station.
Part II: Theoretical Perspectives
Match the ethical theories to the core principle. Write the letter in the blank.
___ 1. Utilitarian Approach
___ 2. Individual Rights Approach
___ 3. Fairness (Justice) Approach
___ 4. Common Good Approach
___ 5. Virtue Approach
A. Act according to good character and values.
B. Greatest good for the greatest number.
C. Best for the community as a whole.
D. Treat everyone equally unless reason not to.
E. Respect basic freedoms and dignity.
Stakeholder Categorization
| Stakeholder | Category | Reasoning (Why?) |
|---|
| Employees | | |
| Local Community | | |
| Shareholders | | |
Part III: The Decision-Making Lab
Scenario: The Blue-Wave Dilemma
You are a manager at AquaTech. Your R&D team found a chemical used in filters is legally safe but likely harms marine life when disposed. Replacing it costs $2M annually, reducing employee bonuses and stock price. However, it protects the ecosystem and matches your "Earth First" branding.
1. Investigate the Ethical Issues
2. Identify Stakeholders (Primary)
3. Generate Alternative Actions
4. Inspect Consequences (Short vs Long Term)
Part IV: Extended Analysis
1. Legal vs. Ethical
Explain the difference between a decision being legal and ethical. Use the AquaTech scenario as an example.
2. Triple Bottom Line
A critic says: "Only profit matters." Respond using the Triple Bottom Line. Why benefit long-term?
Final Audit: Personal Theory
Choose ONE ethical theory. Why is it most effective for modern business?
Bureau of Business Integrity // 77-L14-2026 Page 4 of 4
Ethics Audit Exam Worksheet Answer Key
Answer Key
Audit Reference Material // Business Ethics
Total Points: 100 Est. Grading: 5-7 min/student
Part I: Foundations (2 pts ea)
1. B (Harm/Benefit to others)
2. B (Legal & Morally acceptable)
3. A (Triple Bottom Line)
4. C (Local news station)
Part II: Perspectives & Stakeholders
1. B
2. E
3. D
4. C
5. A
Stakeholder Table Rubric (10 pts)
| Group | Category | Key Reasoning Points |
|---|
| Employees | Primary | Direct involvement; livelihoods and safety depend on company actions. |
| Community | Secondary | Indirect impact; affected by environmental footprint and economic health. |
| Shareholders | Primary | Direct financial ownership; focus on dividends and stock value. |
Part III: Decision-Making Lab (30 pts)
1. Investigate
Core Conflict: Legality (safe) vs. Ethics (marine harm). The decision is legal but morally questionable.
2. Stakeholders
Primary: Marine ecosystem, Employees (bonuses), Shareholders (stock value), Local water users.
3. Alternatives
Options: Immediate chemical switch; Phase-out over 3 years; Investment in filtration; Total transparency.
4. Consequences
ST: $2M cost, bonus loss, stock dip. LT: Brand loyalty, environmental safety, avoid future lawsuits.
Part IV: Analysis Rubric (30 pts)
1. Legal vs. Ethical:
Legality is the "floor" (minimum requirements). Ethics is the "ceiling" (what's right). AquaTech's choice is legal but causes known harm.
2. TBL/Critic Response:
Social responsibility builds Brand Reputation. This leads to customer loyalty and reduced risk, which secures long-term Profit.
3. Personal Theory:
Grade on logic. Utilitarian (Efficiency/Group impact), Virtue (Integrity), or Rights (Dignity) should be clearly defended.
Answer Key // Bureau of Business Integrity Page 4 of 4
