CEA Ethical Principles & Moral Reasoning 5 — Questions and Answers
Question 1: Which term refers to the unconscious tendency to make ethical judgments that favor oneself or one's in-group?
- Moral disengagement
- Self-serving bias (Correct answer)
- Ethical fading
- Confirmation bias
Correct answer: Self-serving bias
Self-serving bias causes individuals to interpret situations in ways that protect their own interests, distorting moral reasoning.
Question 2: A company donates to charity only to improve its public image with no genuine concern for beneficiaries. This is best characterized as:
- Genuine corporate social responsibility
- Instrumental altruism or ethics washing (Correct answer)
- Stakeholder engagement
- Philanthropic virtue
Correct answer: Instrumental altruism or ethics washing
When ethical or charitable actions are taken purely for reputational gain without sincere concern for those served, it is considered instrumental altruism or 'ethics washing.'
Question 3: The principle of 'justice as fairness' requires that inequalities in society be arranged so that they:
- Eliminate all differences in wealth and status
- Benefit the least advantaged members of society (Correct answer)
- Reward only those who contribute the most economically
- Reflect the natural order of talent and effort
Correct answer: Benefit the least advantaged members of society
Rawls' difference principle holds that social and economic inequalities are only just if they benefit the worst-off members of society.
Question 4: Which ethical concept describes the gradual erosion of moral sensitivity through repeated exposure to questionable practices?
- Moral disengagement
- Slippery slope
- Ethical fading (Correct answer)
- Moral hazard
Correct answer: Ethical fading
Ethical fading refers to the process by which ethical considerations gradually become less salient as individuals adapt to a culture of small ethical compromises.
Question 5: An auditor discovers fraud at a client company. Reporting it will end the business relationship. Which ethical framework most strongly supports mandatory disclosure?
- Ethical egoism — protect the auditor's financial interest
- Deontology — the duty to report wrongdoing is absolute (Correct answer)
- Cultural relativism — norms vary by industry
- Moral subjectivism — it depends on the auditor's feelings
Correct answer: Deontology — the duty to report wrongdoing is absolute
A deontological framework holds that certain duties, such as reporting fraud, are obligatory regardless of personal consequences.
Question 6: Which of the following is NOT one of the commonly cited 'pillars' or foundational principles in professional ethics?
- Integrity
- Objectivity
- Profitability (Correct answer)
- Confidentiality
Correct answer: Profitability
Profitability is a business goal, not an ethical principle; integrity, objectivity, and confidentiality are widely recognized pillars of professional ethics.
Question 7: A supervisor pressures employees to meet sales targets by misleading customers about product features. This is an example of:
- Effective leadership that prioritizes results
- Institutional pressure creating unethical behavior (Correct answer)
- Autonomous decision-making by employees
- Acceptable competitive business practice
Correct answer: Institutional pressure creating unethical behavior
When organizational pressure drives employees to act unethically, it illustrates how institutional culture can corrupt individual moral behavior.
CEA Ethical Principles & Moral Reasoning 5
Which term refers to the unconscious tendency to make ethical judgments that favor oneself or one's in-group?