Exam 7: Corruption and Ethics in Global Business

Production quality control and internal auditing are example of feedback controls.

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 attempts to always conduct its business in an ethical manner. It investigates the foreign nations in which it operates so it will be aware of any upcoming business practice differences such as corruption levels the company may face. Which one of the following is the most likely source of the information sought by GCD Industries?

Internal control procedures fit into _____ categories.

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 acknowledges it is under the guidelines of the Foreign Corrupt Practices Act whenever it has dealings in the foreign marketplace. Which one of the following is not addressed by this Act?

SOX requires that the CEO and the CFO of a publicly traded corporation must certify in each periodic report containing financial statements that the report fully complies with the Securities Exchange Act of 1934 and that the information fairly represents the company's financial condition and results of operations.

In the business world, the purpose of ethics is to direct business men and women to make as much money as they can any way possible.

The third step of ethical decision making is to _____.

________ refers to a company's obligations to society, including the welfare of people and places affected by company activities

The Sarbanes-Oxley Act of 2002 set "green" standards for companies.

Of the following, which is NOT a mandate that companies with corporate social responsibility strive to do?

In 2005, Bernie Ebbers was recognized by the Better Business Bureau for his company being a leader in social responsibility.

________ is a report published each year by Transparency International, providing metrics to the potential corruption risk for 180 countries.

Internal control procedures fit into two categories: 1)preventing accidental errors and intentional misrepresentations and 2)identifying errors and irregularities after they occur so that corrective action may be taken.

Of the following statements, which is NOT true about ethics and integrity?

Which of the following is not a fundamentals of ethics education suggested by AACSB?

Corporate social responsibility refers only to the company's obligations to its stockholders and investors.

Do what is right, but filter the action by consideration of its consequences. Make a decision by considering the consequences if everyone made the same choice under similar circumstances. These statements refer to the _____ argument.

The Foreign Corrupt Practices act consist of two parts: an anti-bribery provision and a requirement to comply with green standards.

The _______ is a U.S. federal law that consists of two parts: an anti-bribery provision and a requirement to maintain an adequate internal control system over financial books and records