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business
ethics of management
Questions and Answers of
Ethics of Management
If a corporation’s governance process does not involve ethics risk management, what unfortunate consequences might befall that corporation?
Descriptive commentary about corporate social responsibility performance is sometimes included in annual reports. Is this indicative of good performance, or is it just window dressing? How can the
Assume that you have just been placed in charge of the Claims Investigation Unit of a small insurance company based in Minneapolis. Your personnel department has provided the following details on
If a company is to be sentenced for paying bribes 10 years ago, should the company be banned from all government contracts for 10 years, just made to pay a fine, or both? Consider the impacts on all
Headquartered in London, Barclays is an investment and financial services bank with operations throughout the world. In December 2015, Barclays hired Jes Staley as CEO. Previously, Staley had been a
It’s legal, but is it ethical?For years, a nationally known doughnut chain only sold sugary drinks at its retail outlets on a prominent university campus.Sugar consumption is known to contribute to
Tiger Woods, once probably the world’s greatest golfer, lost his number one ranking in October 2010, the same year that his marriage to Elin Nordegren blew up when she chased him out of the house
Telus Corp., the second-largest wireless company in Canada, introduced an “adult content” service to their cell phone customers in 2007. Customers were charged $3 to $4 for downloads, and the
Should executives and directors be sent to jail for the acts of their corporation’s employees?
How can a corporation show respect for its stakeholders?
What are the common elements of the three practical approaches to ethical decision making that are briefly outlined in this chapter?
Decades after the event, Johnson & Johnson (J&J), the 130-year-old American multinational, is still praised for swiftly The company indicated that its response was based on the expectations
On April 13, 2006, Bausch & Lomb (B&L) CEO Ron Zarrella indicated that B&L would not be recalling their soft contact lens cleaner Renu with MoistureLoc. Drugstores in the United States
The Prairieland Bank was a mediumsized midwestern financial institution. The management had a good reputation for backing successful deals, but the CEO (and significant shareholder) had recently
At GM and Takata, whose improper actions finally came to light, a whistleblower raised objections to the actions before or very early in the production process. Why were their concerns ignored and
The CEOs of Valeant Pharmaceuticals and Turing Pharmaceuticals took the view that they could jack up the price of their drugs by huge percentages because they could, and they failed to consider
What are the reactions and outcomes that can be attributed to the leaked Panama Papers and Paradise Papers?
The legal consequences for frauds, bribery, or other malfeasance have become very severe, particularly since 2009. Why has this happened? Are higher legal consequences having much of an impact?
The J&J (talcum powder) and Wells Fargo (unethical incentives) scandals suggest that even companies whose reputations are based on ethical conduct can suffer ethical scandals. Why is this?
Is the 2019 Business Roundtable Statement (BRS) redefining the purpose of corporations likely to make any difference to boards of directors and to activists?
Eric Hebborn (1934–1996) was an English painter and art forger. Hebborn attended the Royal Academy of Arts and then the British School at Rome, two of the most prestigious fine arts schools at the
Adverse selection occurs when one party has an information advantage over the other party. In the case of insurance, people taking out insurance know more about their health and lifestyle than the
Must a company be incorporated as a benefit corporation in order to legally consider actions other than those in pursuit of profit?
If Lynn Stout is correct, that the drive for shareholder value is a myth, why do so many companies continue to use it as a goal?
Dan Price is the owner of Gravity Payments, a Seattle-based credit card company that he founded in 2004. In 2014, the company processed more than $65 billion of credit card transactions for more than
Lululemon Athletica, Inc., was founded by Chip Wilson in 1998 to sell yoga-inspired athletic clothing. The company’s target market was women who wanted stylish exercise apparel. In 2012, the
Can an apparent conflict of interest where there are adequate safeguards to prevent harm be as important to an executive or a company as one where safeguards are not adequate?
What is the most important contribution of a corporate code of conduct?
What is the difference between an honest financial statement and one with integrity?
How do the NOCLAR Standards change the traditional practice of maintaining confidentiality of audit or client information? Why?
Albert Gable is a partner in a CPA firm located in a small midwestern city that has a population of approximately 65,000. Mr. Gable’s practice is primarily in the area of personal financial
An auditor naturally wishes his or her activity to be as profitable as possible, but when, if ever, should the drive for profit be tempered?
If the provision of management advisory services can create conflicts of interest, why are audit firms still offering them?
If you were a management accountant, would you buy a product from a supplier for personal use at 25% off list?
If you were a professional accountant and you discovered your superior was inflating his or her expense reports, what would you do?
“John, I have questions about that job you want me to do next week—the one where I am supposed to go and be part of that multidisciplinary team to study how the hospitals in Denver ought to be
1. Why was Enron so successful at the start? 2. What went wrong?3. How should Kenneth Lay have acted to prevent the development of the arrogant/deceptive culture, and to maintain control of the
1. Why do airlines resist the hard and fast time limit?2. Why did not the senior pilot of the stranded jet take charge? 3. What are the best and worst experiences students have had on
1. What were the warning flags at the investment banking firms? 2. What were the warning flags at the mortgage marketing firms?3. What, if any, should be the penalties to the senior
1. Why in your opinion did Bernard Madoff do this? He had been exceedingly successful in the electronic exchange trading that he had started and that his firm continued, and he had clearly achieved