Chapter 4:

Problems 4-21 (a-e)

a. Describe what constitutes “ethics” and highlight the challenges of developing a set of rules
and guidance to increase ethical behavior in society.

Ethics can be described as a set of moral principles and values. It has to do with what is good for
individuals and society. Ethics involves concepts of behaving right or wrong in a particular
situation or in general. It can be defined differently by different groups. Ethics are necessary for
a society to function in an orderly manner. The challenges with ethic is that ethical standards
different for different people or people act unethically due to selfishness.

b. Why is ethics important to the conduct of business in a market-based economy?

Ethics is important as it is necessary to conduct business in trustworthiness, respect,

responsibility, fairness for others. If a doctor was acting unethically, we wouldn’t be able to trust
them to help us with our health issues. This goes for every profession.

c. Why do induvial act unethically? Mostly there are two reasons why people act unethically:
1. Personal standards are different than the general society
2. Person chooses to act selfishly

d. What are common rationalizations individuals use to justify their unethical behavior?

These are some of the rationalizations for unethical behaviors:

1. People tell themselves it’s not unethical

2. They do it because they think they can get in trouble if they don’t therefore, they’re doing it
to protect themselves
3. They are being selfish or lazy
4. They don’t think they’ll get in trouble because no one will ever find out

d. Discuss whether ethics should be taught, for example, in university courses.

I believe ethics should be thought not only in university courses but starting from an early age as
soon as it’s appropriate to teach children to be honest and ethical. Having this knowledge and
desire to be honest and ethical starting early, will not be hard to adhere to or get used to
hearing it again in the university classes.