Question 1

According to Jennifer Moore the real reason insider trading should be prohibited is that it undermines the fiduciary relationship that is at the heart of business management.

Accepted Answer

Jennifer Moore argues that insider trading undermines the fiduciary relationship between managers and shareholders, which is a key element in business management.

Question 2

What is a key lesson to be learned from the example of the cashier at a truck stop who is asked by her manager to provide the truckers with phony chits so they can get a larger reimbursement from their companies?

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Question 3

When does a conflict of interest arise?

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Question 4

According to Norman Bowie,whistle-blowing is morally justified only if five criteria are met.What are these five criteria?

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Question 5

Employees have certain general duties to their employers,and because of the specific business,professional,or organizational responsibilities they have assumed,they may have other more precise role-based obligations.

Accepted Answer

This statement is true. Employees have general duties to their employers, such as performing their job duties to the best of their abilities and being loyal to the company. They may also have specific role-based obligations, such as keeping confidential information secure or upholding ethical standards.

Question 6

Name an argument that's given against legalizing insider trading?

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Question 7

Justice Ginsberg and Arthur Levitt suggest that allowing insider trading could lead to a widespread perception that "the game is rigged."

Accepted Answer

Justice Ginsberg and Arthur Levitt have indeed suggested that allowing insider trading could lead to a widespread perception that "the game is rigged." This is because insider trading gives an unfair advantage to a select few, which undermines the integrity of the financial markets and creates an unfair playing field for other investors. This perception of unfairness could erode public trust in the financial system and lead to decreased investor confidence.

Question 8

There are at least seven factors to take into consideration in determining the morality of giving and receiving gifts in a business situation.Explain three of them.

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Question 9

What are the main features of the 1977 Foreign Corrupt Practices Act (FCPA)?

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Question 10

Name an argument given against foreign forms of bribery.

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Question 11

According to one expert's definition,whistle blowing is conceptually restricted to reporting on activities that are harmful to third parties,violations of human rights,or contrary to the public purpose and legitimate goals of the organization.

Accepted Answer

Whistle blowing is commonly defined as the disclosure of information about illegal or unethical conduct by an organization or its members. However, some experts limit the definition to cases where harm is being done to third parties, human rights are being violated, or the organization's legitimate goals are being undermined.

Question 12

How do trade secrets differ from information that is patented or copyrighted?

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Question 13

Prudential reasons are those moral reasons that are separate from self-interest.

Accepted Answer

Prudential reasons are specifically related to one's own self-interest, focusing on what is beneficial for oneself, rather than being separate from it.

Question 14

The Sarbanes-Oxley Act weakened legal protections for whistle blowers.

Accepted Answer

The Sarbanes-Oxley Act strengthened legal protections for whistle blowers by establishing a separate enforcement mechanism for whistle blower complaints and protecting whistle blowers from retaliation by their employer.

Question 15

According to Norman Bowie,a discussion of whistle blowing in the 1990s parallels the discussion of civil disobedience in the 1960s.

Accepted Answer

Norman Bowie argues that whistleblowing was a topic of discussion in the 1990s much like civil disobedience was discussed in the 1960s.

Question 16

What is insider trading?

Accepted Answer

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Question 17

When faced with a moral decision,employees should follow the two-step procedure of identifying the relevant obligations,ideals,and effects;and then decide where the emphasis should lie among these considerations.

Accepted Answer

This is known as the ethical decision-making process and involves identifying all relevant moral considerations before deciding which should take priority in the decision-making process.

Question 18

What is whistle-blowing,and what motivates whistle-blowers?

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Question 19

The Foreign Corrupt Practices Act of 1977 forbids companies to pay kickbacks in the United States,but permits them to pay kickbacks to companies outside the United States.

Accepted Answer

The Foreign Corrupt Practices Act of 1977 prohibits companies from paying kickbacks both in the United States and outside of the United States. It is illegal to bribe foreign officials or engage in other corrupt practices to obtain or retain business or gain an unfair advantage.

Question 20

Sometimes companies require employees to sign contracts restricting their ability to get a job with,or start,a competing company.Because they can conflict with freedom of employment,not all such "noncompete" or "nondisclosure" contracts are legally valid.

Accepted Answer

Noncompete or nondisclosure contracts can be invalidated if they are found to be too restrictive or violate the employee's freedom of employment. However, the specifics of each case can vary and depend on the jurisdiction and terms of the contract.

Quiz 10: Moral Choices Facing Employees