Chapter 7: Corruption and Ethics in Global Business

The three philosophical principles regarding ethics include the imperative principle, the utilitarian principle, and the generalization argument.

True

The CPI ranks 180 countries and provides a measurement of the potential travel risk per country.

False

CPI

Corruption Perceptions Index

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

The principle of consistency dictates that because everyone is doing something on a consistent basis, it is ethical.

False

Utilitarian Principle

Do what produces the greatest good

Generalization Argument

Do what is right, but filter the action by consideration of the consequences

Imperative Principle

Do what is right

Corporate social responsibility

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

Parmalat, an Italian-based multinational corporation, is recognized as a leader in quality control and employee benefits.

False

The five basic threats to security are national disasters, dishonest employees, disgruntled employees, persons external to the organization, and accidental errors or omissions.

True

A person of integrity has ______ essential characteristics.

two

Three philosophical principles regarding ethics include the imperative principle, the utilitarian principle, and the _____ argument.

generalization

The first step of ethical decision making is to _______.

define all the facts and circumstances

Two principles can help when making an ethical choice: the principle of consistency, and the principle of ________.

respect

A type of fraud in which money received from later investors is used to provide returns to earlier investors, thus giving an appearance of a profitable investment, is called a(n) __________.

Ponzi scheme

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

When the company officially entered bankruptcy, the Italian government used illegal means to save the trademark.

The human trafficking business earns about $_____ a year.

30 billion

A U.S. federal law that consists of two parts: an anti-bribery provisions and a requirement to maintain an adequate internal control system over financial books and records in the ________.

Foreign Corrupt Practices Act

Which year was SOX enacted?

2002

SOX

protects shareholders and the general public from accounting errors and fraudulent practices in the enterprise, as well as improve the accuracy of corporate disclosures