Question 1

In the Amgen case, former employees, Shawn O'Brien and Kassie Westmoreland, sued the company for:
A) Wrongful termination
B) Fraudulent actions
C) Discrimination
D) Retaliation

Accepted Answer

The former employees sued Amgen for retaliation after they raised concerns about the company's marketing practices. They claimed they were fired in retaliation for their whistleblowing activities.

Question 2

Explain the ethical dissonance model and what a high ethics individual should look for in finding an ethical employer.

Accepted Answer

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Question 3

Tommy Hubbs is the controller of XYZ Corporation. Recently, Hubbs was approached by Carol Franks, the CFO, and told in no uncertain terms to record $100,000 in revenue at the end of 2013 even though the sale was not made until January 3, 2014. Assume Hubbs decides not to go along with Franks' dictum. What steps should he take in trying to resolve the matter?

Accepted Answer

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Question 4

What are the most important values to include in a corporate code of ethics or credo and why are these important values?

Accepted Answer

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Question 5

A major allegation in the XTO Energy case was the:
A) Insider trading
B) Violation of FCPA
C) Breach of fiduciary duties by board of directors
D) Retaliation of whistleblower

Accepted Answer

Breach of fiduciary duties by board of directors is a major allegation in the XTO Energy case.

Question 6

The primary ethical issue in United Thermostatic Controls is:
A) Misappropriation of corporate assets
B) Accelerating the recording of revenue into an earlier period
C) Delaying the recording of expenses into a later period
D) Failure to fully disclose all information

Accepted Answer

The primary ethical issue in United Thermostatic Controls relates to accelerating the recording of revenue into an earlier period, which could misrepresent the company's financial situation and potentially mislead investors. This practice is known as revenue recognition manipulation and violates generally accepted accounting principles (GAAP).

Question 7

The case of Steve Jobs's Health deals with:
A) Disclosure issues beyond financial information
B) Disclosures required of members of board of directors
C) Fiduciary obligations of a CEO
D) Fiduciary obligations of a board of directors

Accepted Answer

The case of Steve Jobs's Health deals with disclosure issues beyond financial information, specifically his personal health information and whether or not it should have been disclosed to shareholders and the public.

Question 8

In the Parable of Sadhu case, Bowen T. MCoy's friend Steve summed up the dilemma by saying:
A) I feel that what happened with the sadhu is a good example of the breakdown between ethics in different cultures
B) I feel that what happened with the sadhu is a good example of the breakdown between the individual and corporate ethics
C) People tend to inevitably act in their own best interest
D) All of these

Accepted Answer

Steve's statement highlights the conflict between personal ethics and the collective responsibility of a group, which is central to the Parable of the Sadhu.

Question 9

What is whistleblowing? Distinguish between internal and external whistleblowing including the parties that might be contacted in each case. Is it ethical to provide incentives or rewards for people to whistle-blow?

Accepted Answer

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Question 10

An important issue in the Hewlett Packard pretexting case was:
A) Using false pretenses to obtain confidential information about members of the board of directors
B) Disclosing confidential client information without the approval of the client
C) Producing fraudulent financial statements
D) Twittering about a competitor and driving him out of business

Accepted Answer

The Hewlett Packard pretexting case involved the use of false pretenses (such as impersonating board members) to obtain confidential information about members of the board of directors. This was a violation of privacy laws and led to the resignation of several individuals involved in the case.

Question 11

An Internet Company has a chance to expand its business into a developing country. This chance would make money for its shareholders, as it would be the first Internet Company allowed in the country. However, the conditions demanded by the country is that the Internet Company must turn over to the government the history of Internet sites visited by its citizens. Additionally the Internet Company must also censor Internet sites requested through the search engine. In the United States and other countries, the Internet Company would not monitor, censor, or turn over a history of Internet sites to any government.
What should the Internet Company do? Use ethical theories and ethical decision making model to back up your decision.

Accepted Answer

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Question 12

Analyze the reaction of Toyota from an ethical perspective to disclosures that occurred in late 2009 and early 2010 that the accelerator in some brands might get stuck and result in unintended acceleration of the car. How does Toyota's reaction relate to that of Ford with the Pinto and Johnson & Johnson with the Tylenol poisoning?

Accepted Answer

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Question 13

An important issue in the HP case with "event hostess" Jodie Fisher is:
A) Conflict of interest of Mark Hurd
B) Alleged sexual harassment of Jodi Fisher
C) Disclosure of confidential client information by Hurd to Fisher
D) All of these
Essay Questions

Accepted Answer

The HP case involving Jodie Fisher included allegations of sexual harassment, conflict of interest, and the disclosure of confidential information, all of which were significant issues in the case.

Question 14

What is meant by corporate governance? Describe the elements of a governance system and how it can help to enhance financial reporting.

Accepted Answer

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Question 15

The Bennie and the Jets case deals with:
A) Proper income classification of rebates received from insurers
B) Accelerating revenues
C) Delaying expenses
D) Failing to record rebates from insurers

Accepted Answer

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Question 16

The IRS whistleblowing Case deals with
A) Ethics of retaliation
B) Professional whistleblowing for gain
C) Revenge whistleblowing
D) Ethics of whistleblowing

Accepted Answer

The IRS whistleblowing case primarily deals with professional whistleblowing for gain, as it involves individuals reporting tax fraud or evasion to the IRS in exchange for monetary rewards.

Question 17

Tommy Hubbs is the controller of XYZ Corporation. Recently, Hubbs was approached by Carol Franks, the CFO, and told in no uncertain terms to record $100,000 in revenue at the end of 2013 even though the sale was not made until January 3, 2014. Describe Hubbs's ethical responsibilities in this matter if he is a CPA?

Accepted Answer

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Question 18

A strong and effective system of internal controls can help to create an ethical corporate culture. Explain how the internal control system can enhance ethical decision making.

Accepted Answer

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Question 19

Compare and contrast the agency and stakeholder theories of corporate governance from the perspective of those involved in and affected by managerial decision making.

Accepted Answer

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Question 20

In the Bhopal case, in evaluating its exposure to possible future liability due to technology failures, Union Carbide used which of the following concepts:
A) Professional skepticism
B) Business risk
C) Cost-benefit analysis
D) Rights Theory

Accepted Answer

Union Carbide used the concept of business risk to evaluate its exposure to possible future liability due to technology failures in the Bhopal case. Business risk refers to the potential for loss or damage to a business's operations, finances, or reputation due to external factors such as legal, technological, or environmental risks. In this case, Union Carbide recognized the risk associated with the use of the technology and the potential for harm, but still chose to take the risk due to the potential financial benefits.

Quiz 3: Creating an Ethical Organization Environment and Effective Corporate Governance Systems

In the Amgen case, former employees, Shawn O'Brien and Kassie Westmoreland, sued the company for:

Explain the ethical dissonance model and what a high ethics individual should look for in finding an ethical employer.

What are the most important values to include in a corporate code of ethics or credo and why are these important values?

A major allegation in the XTO Energy case was the:

The primary ethical issue in United Thermostatic Controls is:

The case of Steve Jobs's Health deals with:

In the Parable of Sadhu case, Bowen T. MCoy's friend Steve summed up the dilemma by saying:

What is whistleblowing? Distinguish between internal and external whistleblowing including the parties that might be contacted in each case. Is it ethical to provide incentives or rewards for people to whistle-blow?

An important issue in the Hewlett Packard pretexting case was:

An important issue in the HP case with "event hostess" Jodie Fisher is:

What is meant by corporate governance? Describe the elements of a governance system and how it can help to enhance financial reporting.

The Bennie and the Jets case deals with:

The IRS whistleblowing Case deals with

A strong and effective system of internal controls can help to create an ethical corporate culture. Explain how the internal control system can enhance ethical decision making.

Compare and contrast the agency and stakeholder theories of corporate governance from the perspective of those involved in and affected by managerial decision making.

In the Bhopal case, in evaluating its exposure to possible future liability due to technology failures, Union Carbide used which of the following concepts: