Chapter 12Business Ethics PDF

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Chapter 12Business Ethics, Fraud, and Fraud DetectionReview Questions: 1. What is ethics? Response: Ethics pertains to the principles of conduct that individuals use in making choices and guiding their behavior in situations that involve the concepts of right and wrong. 2. What is business ethics? Response: Business ethics involves finding the answers to two questions: (1) How do managers decide what is right in conducting their business? and (2) Once managers have recognized what is right, how do they achieve it? 3. What are the four areas of ethical business issues? Response: equity, rights, honesty, and the exercise of corporate power 4. What are the main issues to be addressed in a business code of ethics required by the Securities and Exchange Commission?Response: conflicts of interest, full and fair disclosures, legal compliance, internal reporting of code violations, and accountability 5. What are three ethical principles that may provide some guidance for ethical responsibility?Response: proportionality, justice, and minimization of risk 6. What is computer ethics? Response: Computer ethics is “the analysis of the nature and social impact of computer technology and the corresponding formulation and justification of policies for the ethical useof such technology…. [This includes] concerns about software as well as hardware andconcerns about networks connecting computers as well as computers themselves.” 7. How do the three levels of computer ethics—pop, para, and theoretic al—differ? Response: The lowest level of computer ethics— Pop merely reflects the exposure to stories and reports regarding the ramifi cations of computer technology, such as computer viruses (bad ramific ations) and educational enhancements for handicapped individuals (go od ramifications). The next level—para requires a little more involvement in learning about computer ethics ca ses and acquiring some skill and knowledge in ethics issues. The third level—theoretical—involves application of the theories of phil osophy, sociology, and psychology to computer science with the hope t hat new understanding in the field can be achieved. 8. Are computer ethical issues new problems, or just a new twist on old problems? Response: Computer ethical issues are considered to be ne w problems by those groups thatfeel that intellectual property is not th

e same as real property. However, other groups feel that the same gen eric principles should apply. No agreement between these two groups h as been reached. 9. What are the computer ethical issues regarding privacy? Response:

about oneself does the individual own? Should firms that are unrelated to individuals buy and sell...