Question 1

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 traditionally defined as the act of exposing wrongdoing, typically within an organization or government, to an audience that is able to take action. However, some experts have proposed that whistle blowing should be 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. This more narrow definition emphasizes the role of the whistle blower in serving the public interest and promoting ethical practices within organizations.

Question 2

When does a conflict of interest arise?

Accepted Answer

The answer of When does a conflict of interest arise?...

Question 3

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 do suggest that allowing insider trading could lead to a widespread perception that "the game is rigged."

Question 4

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 some general duties towards their employers, and they are also responsible for certain role-specific obligations depending on the nature of their job.

Question 5

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 argued that in the 1990s, the discussion of whistle blowing was similar to the discussion of civil disobedience in the 1960s, as both concerned breaking the law to expose unethical actions by those in power.

Question 6

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

This statement is false. The Foreign Corrupt Practices Act of 1977 (FCPA) prohibits companies from paying bribes or giving kickbacks to foreign officials or any other person with the intention of influencing their behavior in a business transaction. This applies to companies both within and outside the United States. The FCPA also requires companies to maintain accurate books and records and implement adequate internal controls to prevent corrupt practices.

Question 7

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 deemed invalid if they are too broad or restrictive, and can be challenged in court.

Question 8

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 in business management.

Question 9

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 two-step procedure is commonly known as the ethical decision-making process and is widely accepted in the field of business ethics.

Question 10

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 11

What is insider trading?

Accepted Answer

The answer of What is insider trading?...

Question 12

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

Accepted Answer

The Sarbanes-Oxley Act actually strengthened legal protections for whistle blowers by creating a new category of employee, known as a "protected whistle blower," who cannot be fired or retaliated against for reporting misconduct. The act also established the Office of the Whistleblower within the Securities and Exchange Commission to assist and protect employees who report securities law violations.

Quiz 10: Moral Choices Facing Employees