Exam 7: Corruption and Ethics in Global Business

Scenario - Bradley Corporation The Bradley Corporation manufactures packaged food items that are sold around the globe. Baby food is the prominent product line currently produced by the corporation. Many of the customers for these products are located in third world countries where infant nutrition is a serious problem. Bradley has recently decided to change its internal management structure. New managers for the corporation are now in place; however these new leaders do not appear to have the same value system as the former leaders. The former leaders embraced the idea of product safety and exhibited integrity in the production of the corporation's product lines. While the new managers claim these are important to them also, it seems the bottom line profit has precedent with them. These changes have created concern in the company. There is strong disapproval for the way the company is conducting its business at the present time. The Board of Directors for Bradley is facing the serious question of whether profit is the only thing that matters now to the corporation. -There is a distinct difference in the value systems between the original and new managers of the Bradley Corporation. All of the following except which one represents a key issue in ethics education, which if reinforced to the new managers, could strengthen their current value systems?

Of the following statements about WorldCom, which is NOT true?

The five fundamentals of ethics education proposed by AACSB are: personal integrity, responsibility of business in society, ethical decision making, ethical leadership, and corporate governance.

The government can force an individual to sell his or her land so that a road can be built for the benefit of the public as a whole. This is an example of the _____ principle.

Vivendi, a French-based multination corporation, gained international scorn when it was discovered they cooked their books to make their performance appear better than it actually was for the purpose of making a number of acquisitions.

Act according to absolute moral rules represent the _____ argument.

_____ received the CSR Award for the Environment from the Retail Council of Canada in 2010.

Asking oneself "What if everyone did it?" is an example of the principle of _____.

There are _____ basic steps in ethical decision-making.

A company's obligations to society, including the welfare of people and places affected by company activities is called _____.

_________ are a system of rules and procedures within a business designed to ensure the accuracy and reliability of financial and accounting information

Which of the following is NOT true regarding the Foreign Corrupt Practices Act?

Scenario - Bradley Corporation The Bradley Corporation manufactures packaged food items that are sold around the globe. Baby food is the prominent product line currently produced by the corporation. Many of the customers for these products are located in third world countries where infant nutrition is a serious problem. Bradley has recently decided to change its internal management structure. New managers for the corporation are now in place; however these new leaders do not appear to have the same value system as the former leaders. The former leaders embraced the idea of product safety and exhibited integrity in the production of the corporation's product lines. While the new managers claim these are important to them also, it seems the bottom line profit has precedent with them. These changes have created concern in the company. There is strong disapproval for the way the company is conducting its business at the present time. The Board of Directors for Bradley is facing the serious question of whether profit is the only thing that matters now to the corporation. -Corporate social responsibility is defined as a company's obligations to society, including the welfare of people and places affected by the company's activities. Which one of the following would not demonstrate the Bradley Corporation's adherence to its corporate social responsibility?

If people did not ethically behave, trust is not possible.

Internal control procedures fit into two categories: 1)preventing accidental errors and intentional misrepresentations from occurring, and 2)_____.

Do what produces the greatest good. This statement refers to the _____ principle.

The branch of philosophy that addresses the values pertaining to human behavior, with regard to the "rightness" and "wrongness" of actions and to the "goodness" and "badness" of the intent and results of such actions is called _____.

Examples of _____ controls include production quality control and internal auditing.

Accounting practices that update the value of an asset to its current market levels are referred to as ______.

Scenario - GCD Industries GCD Industries is a multinational organization that produces heavy equipment. It supplies many foreign nations with the necessary equipment to conduct reconstruction after natural disasters. One of the company's largest sales resulted from the devastation that occurred in Japan after the tsunami hit that nation. GCD is committed to helping nations recover from destruction brought about by natural phenomenon. GCD prides itself on conducting its business in an honest and ethical manner. It does not wish to deal with countries that engage in corrupt business practices, but realizes that all nations have differing business practices. When the need arises for its products, this company strives to impart integrity into all of its business deals with foreign nations regardless of that nation's accepted practices. -GCD Industries employs a set of internal controls within its operations to help ensure ethical behavior and to help prevent financial impropriety. Which one of the following is least likely to be used as an internal control by this company?