1. What is ethics?

Ethics are guidelines or rules derived from external sources such as societal norms, legal systems, or
professional codes. These rules determine what is considered acceptable behavior, guiding individuals
and companies to make fair and responsible choices that align with the values of the society in which they
operate.

2. What are morals?

Morals guide a person's conscience based on their values and beliefs about what is right and wrong,
setting personal standards. Unlike ethics, which are influenced by external sources like books and societal
norms, morals are personal and based solely on an individual's convictions.

3. Moral dilemma:
This scenario presents a moral dilemma involving a conflict of interest versus honesty. It challenges the
ethical boundaries between personal actions and professional duties. The issue arises from claiming
personal entertainment expenses as company money, highlighting a conflict of interest and raising
concerns about honesty and integrity. As an employee, you face the difficult choice between supporting
unethical behavior by complying with the request or upholding ethical standards by reporting the fraud,
thereby balancing personal morals and professional ethics.

4. Identifying Stages:
a. Level of Development:
Jacob's decision not to take money from the shared savings account because he fears his wife's anger
reflects Level One: Pre-Conventional Morality, specifically the second stage (Self-Interest Orientation),
where decisions are made to avoid punishment or negative consequences.

b. Decision at Level Three:

At Level Three: Post-Conventional Morality, Jacob would base his decision on internal principles and a
deeper understanding of morality. He would recognize the importance of trust, honesty, and fairness in his
relationship with his wife. At this level, Jacob would choose not to take the money because it would
compromise his integrity and the mutual respect and trust in his marriage, regardless of whether he gets
caught or faces immediate consequences.