Ethics Quiz 2

1. the dviation from a profit only focus dows not mean that profit will fall 2. profit is now recognized as an incomplete measure of coporate performance and therefor an inaccurate measure for resource allocation 3. Friedman explicitly expected the performance would be within the law and ethical custom

The public's expecatations for trustworthy reports on corporate performance cannot be met unless the professional accountants who prepare or audit those reports focus their primary loyalty on the public interest and adopt principles such as (3) that protect the public interest.

Expanding legal liablitiy for coporate directors
management assertions to shareholders on the adequacy of internal controls, and a state intention to manage risk and protect reputation

delayers, employee empowerment, and the use of electronic data interfaces and an increased reliance by management on non financial performance indicators used on a real time basis.

the system of shared values that drive action

general training and training to instill decision frameworks; compliance check off lists, encouragement of internal whistle-blowing, mind focusing scorecards and categorizations, inclusion of ethical performance as a factor in internal and external reports, creation of specific ethical operating goals, creation of whistleblowing programs and positions like chief ethics or bompliance officer

added to directors responsibilities the requirement of proactively seeking out ethical problems

includes shareholders, employees, customersm suppliersm competitiors, lenders & creditors, governemnts, activitists, and others(media)

include surveys, focus groups, and mapping accoding to stereotypes.

values that are respected by most groups or cultures around the world. Should be built into a corporations code of conduct, policies, strategies, and activities.

Set Guidance and Boundaries (policies, codes, culture, copliance) Set Direction (strategies, goals, remuneration, incentives), Appoints CEO, who appoint other executives and CFO, Arrange for resources, Monitor Feedback(opperations, policy compliance, financial reports,) Reports to shareholders, Govern) Nominantes/decides on auditor

Hypernorms involve the demonstration of 6 basic values:

4 determinates of Corporate Reputation

Risk events causing drops of over 25% share value 4

the chance of something happening that will have an impact on objectives

inclues the culture, processes, and structures that are directed toward the effective managemnt of potential opportunities and adverse effects includes the systematic application of managemnt policies, proceduresm abd practives to the tasks of establishing the context, identifying, analyzing, assessing, managing, monitoring, and communicating risk

Stakeholder expectation not met by stealing, misuse of funds or assets

Stakeholder expectation not met by conflict of interest with officiers

Stakeholder expectation not met by Performance level

Stakeholder expectation not met by Reporting transparency, accuracy

Stakeholder expectation not met by Employee Safety

Stakeholder expectation not met by Employees Diverstiy

Stakeholder expectation not met by Child/ Sweatshop labor

Stakeholder expectation not met by Customer Safety

Stakeholder expectation not met by Customer Performance

Stakeholder expectation not met by Pollution

Corporate reports frequently lack ______ because they do not cover some issues, nor is there always a clear, balanced presentation of how the interest of stakeholders will be affected.

Sometimes issues will be mentioned, but in such an obtuse or unclear manner that a lack of ____ will could the understanding of the reader

____ or faithful representation is fundamental to an understanding of the underlying facts

Stakeholder Report Topics:
1)Health and Safety
2)Sustainability
3)Philanthropy

happiness is achieved by leading a virtuous life in accorance with reason. In business directors, executives and accountants should demonstarte integirty, should honor the terms of contracts, and should be loyal to their employees, customers, and suppliers, should have courage to be candid and transparent in their dealings and should be forthright when providing explanations

people are ethical when they do not use other people opportunistically, and when they do not act in hypocritical manner demanding a high level of conduct for everyone else, while making exceptions for themselves

goal of life is to max happines or min unhappinies or pain, and the goal of society is to max the net social benefits to all people - goal of business is to contribute to increasing the physical/psychological benefits of socity by providing goods and services required by society

dociety should be structured so that there is a fiar distribution of rights and benefits, and any inequalities shoudl be to everyone's advantage. Business hould act in an ethical manner when they do not have discriminatory prices and hiring systems and should not provide g&s to one segment of society at the expense of other segments

the evolving relationship between corporations nd society

requires that an ethical decision have good consequence

an ethical act depends upon the duty, rights, and justice involved

considersan act ethical if it demonstartes the virtues expected by stakeholders of the participants

challenging any proposed policy or action with five quesionts designed to rate the proposal on the the following scales: profitability ,legality, fairness, impact on the rights of ecah stakeholder, and the envir. specifically, and demonstration of virtues expected by stakeholders

focus on four dimensions of impact of the proposed action 1) whether it provides a net benefit to society 2) whether it is fair to all stakeholders 3) whether it is right 4) whither it demonstarts the virtures expected by stakehoders

taking specific account of culture within the corporation and of common problems. Any proposed decision should be evaluated in comparison to the companies ground rues, the net benefit it produces, whether it impinges on any stakeholders rights and requires rules to seolve problems.

The way employees view their own treatment by the company determines what the employees think about their

FDA approved beta-1b for tresuppliers were insufficient to meet inital demand and shorages were forecasted
the price was expected to be about $10,000 per year for each patient

Purpose of the project was to develop ecuadors natrual resources and encourage colonizaiton
Ecuador recieved 98% of profit
Tribes in ecuador sued texaco for ruining water and hunting supplies

Graduate questioning whether or not to become an accountant due to ethical issues

Prairieland Bank was participating in unethical reporting of loans.
The bank insisted nothing was wrong.
The auditors decided to resign from the account (Ben Hunt)