SM Ch12 - Answer Key PDF

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Chapter 12 Business Ethics, Fraud, and Fraud DetectionReview Questions: 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. What is business ethics? Respon...

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Chapter 12 Business Ethics, Fraud, and Fraud Detection Review 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 use of such technology…. [This includes] concerns about software as well as hardware and concerns about networks connecting computers as well as computers themselves.” 7.Ho wdot het h r e el e v e l sofc omput e re t h i c s —p op,pa r a ,a ndt he or e t i c a l —d i ffe r ? Re s po ns e :Thel o we s tl e v e lofc omput e re t h i c s —p op—me r e l yr e fle c t st h ee x pos ur et o s t or i e sa ndr e por t sr e g a r di n gt h er a mi fic a t i on so fc omput e rt e c hno l o g y ,s uc ha sc omput e rv i r us e s ( ba dr a mi fic a t i o ns )a nde du c a t i ona le nha n c e me nt sf orh a n di c a pp e di ndi vi d ua l s( g ood r a mi fic a t i o ns ) .Thene xtl e v e l —pa r a —r e q ui r e sal i t t l emo r ei n v ol v e me nti nl e a r n i n ga bou t c omput e re t hi c sc a s e sa nda c q ui r i n gs omes ki l la n dkno wl e dg ei ne t h i c si s s ue s .Thet h i r dl e v e l — t he or e t i c a l —i n v ol v e sa pp l i c a t i onoft h et he or i e so fphi l os oph y ,s oc i o l o gy ,a ndp s y c hol o gyt o c omput e rs c i e nc ewi t ht h ehopet h a tne wunde r s t a ndi n gi nt h efie l dc a nbea c hi e v e d . 8. Ar ec omput e re t hi c a li s s u e sne wpr obl e ms ,o rj u s tan e wt wi s tonol dpr obl e ms ? Re s po ns e :Comput e re t hi c a li s s u e sa r ec ons i d e r e dt obene wpr obl e msb yt hos egr oupst ha t f e e lt ha ti nt e l l e c t ua lpr ope r t yi snott h es a mea sr e a lpr o pe r t y .Ho we v e r ,o t h e rg r oupsf e e lt h a tt h e s a meg e ne r i cp r i n c i pl e ss houl da ppl y .Noa gr e e me n tb e t we e nt h e s et wogr oupsha sbe e nr e a c he d. 9. Wh a ta r et hec omput e re t hi c a li s s ue sr e g a r di n gpr i v a c y ? Re s po ns e :Pe opl ede s i r et ob ei nf ul lc ont r olo fwha ta ndho wmu c hi nf or ma t i ona bout t he ms e l v e si sa v a i l a bl et oot he r s ,a n dt owhomi ti sa v a i l a bl e .Th i si st hei s s u eofpr i v a c y .The c r e a t i ona ndma i n t e n a nc eofhu g e ,s ha r e dda t a ba s e sma kei tne c e s s a r yt opr ot e c tpe o pl ef r o mt he po t e nt i a lmi s us eofd a t a .Thi sr a i s e st hei s s u eofo wne r s hi pi nt h epe r s ona li nf or ma t i o ni ndus t r y . Sh oul dt hepr i v a c yofi nd i vi dua l sbepr o t e c t e dt h r ou ghpo l i c i e sa nds y s t e ms ?Wh a ti nf or ma t i o n

a bouto ne s e l fdoe st h ei ndi v i d ua lo wn ?Sho ul dfir mst ha ta r eunr e l a t e dt oi ndi vi dua l sbu ya n ds e l l i n f o r ma t i ona bo utt he s ei ndi v i dua l swi t h o utt h e i rpe r mi s s i on? 10.Wh a ta r et hec ompu t e re t h i c a li s s ue sr e g a r d i n gs e c ur i t y ? Re s po ns e :Comput e rs e c ur i t yi sa na t t e mp tt oa v oi ds uc hund e s i r a bl ee v e nt sa sal o s sof c onfide nt i a l i t yorda t ai n t e gr i t y .Se c ur i t ys y s t e msa t t e mp tt opr e v e n tf r a uda ndot he rmi s us eof c omput e rs y s t e ms ;t he ya c tt opr ot e c ta ndf ur t he rt hel e gi t i ma t ei n t e r e s t so ft h es y s t e m’ s c ons t i t u e nc i e s . Th ee t h i c a li s s ue si n v ol vi n gs e c ur i t ya r i s ef r omt hee me r g e nc eofs ha r e d, c omput e r i z e dda t a ba s e st h a tha v et hep o t e nt i a lt oc a us ei r r e pa r a bl eha r mt oi ndi v i dua l sb y di s s e mi na t i n gi na c c ur a t ei n f or ma t i o nt oa ut hor i z e dus e r s ,s u c ha st hr o ughi nc or r e c tc r e di t r e por t i n g . The r ei sas i mi l a rda n g e ri ndi s s e mi na t i n ga c c u r a t ei nf or ma t i o nt ope r s onsu na u t hor i z e d t or e c e i v ei t .Ho we v e r ,i nc r e a s i n gs e c ur i t yc a na c t ua l l yc a u s eo t he rpr obl e ms . Fore x a mpl e , s e c ur i t yc a nb eus e dbo t ht opr ot e c tpe r s ona lpr ope r t ya ndt ounde r mi n ef r e e domofa c c e s st o da t a ,whi c hma yha v ea ni n j ur i ouse ffe c tons o mei ndi vi du a l s . 11. Wh a ta r et hec ompu t e re t h i c a li s s u e sr e g a r di n go wne r s h i pofpr o pe r t y ? Re s po ns e :La wsde s i gne dt opr e s e r v er e a lp r o pe r t yr i gh t sha v ebe e ne x t e nde dt oc o v e rwha t i sr e f e r r e dt oa si n t e l l e c t ua lpr ope r t y ,t ha ti s , s of t wa r e .Th eque s t i onhe r ebe c ome swha t c a na n i n di v i du a l( oror g a ni z a t i on )o wn?I d e a s ?Me di a ?Sou r c ec ode ?Ob j e c tc ode ?Ar e l a t e dq ue s t i oni s wh e t he rornoto wne r sa ndus e r ss houl dbec ons t r a i ne di nt he i rus eofora c c e s st os of t wa r e .Thi s i n c l ud e sma ki n gc opi e sorpl a c i n gs of t wa r eonan e t wor kt ope r mi tmul t i pl ea c c e s s .So meb e l i e v e t ha tc op yr i g htl a wsc a nc a us emor eha r mt h a ng o od .Fore xa mpl e ,t heLe a guef o rPr ogr a mmi n g Fr e e d oma r gue st ha tc op y r i ght sf o rs of t wa r eflyi nt hef a c eoft h eor i gi na li n t e ntoft hel a w.I tf e e l s t ha tt h eb e s ti n t e r e s t so fc omput e rus e r sa r es e r v e dwhe ni n dus t r ys t a nda r d se me r g e ;c op yr i ght l a wswor kt od i s a l l o wt h i s .Pa r toft h epr obl e ma r i s e souto ft heun i que ne s sofs o f t wa r e ,i t se a s eof di s s e mi na t i o n,a n dt hep os s i bi l i t yofe x a c tr e p l i c a t i on.Do e ss o f t wa r efitwi t ht hec ur r e n t c a t e g o r i e sa n dc on v e nt i onsr e g a r di n go wne r s hi p ? 12.Wh a ta r et hec ompu t e re t h i c a li s s ue sr e g a r d i n ge q ui t yi na c c e s s ? Re s po ns e :Someba r r i e r st oa c c e s s( s e c ur i t ys y s t e ms )a r ei n t r i ns i ct ot het e c hn ol o gyof i n f o r ma t i ons y s t e ms , buts omea r ea v oi d a bl et h r ou ghc a r e f uls y s t e mde s i gn. Fa c t o r st ha tc a nl i mi t a c c e s st oc o mpu t i n gt e c hnol o gyi nc l u de :fina nc i a lc os t ,c ul t u r a lba r r i e r s , a ndp h y s i c a ll i mi t a t i ons ( bl i nd ne s s ,p a r a l y s i s , a ndpr e g na nc y) .Ho wc a nha r d wa r ea nds o f t wa r ebede s i gn e dwi t h c ons i de r a t i onf o rdi ffe r e n c e si nph y s i c a la ndc o gni t i v es k i l l s ?Wh a ti st hec os ti n v ol v e dwi t h pr o v i di n ge qui t yi na c c e s s ?Towha tg r oupsofs oc i e t ys h ou l de q ui t yi na c c e s sbe c omeapr i or i t y ? 13. Wh a ta r et hec ompu t e re t h i c a li s s u e sr e g a r di n gt hee n v i r onme nt ? Re s pon s e :I n c r e a s e dc o mp ut i n ga n dt hel o wc os toff a s t s pe e dp r i nt e r sha v ec a us e dma n y us e r st opr i ntoutmor eha r dc o pi e sofdo c ume nt st h a ni sr e a l l yn e c e s s a r y .Be c a u s epa pe ri snot us ua l l yc ons i d e r e dah i ghc os ti t e m, mo s tfir msha v en otl ook e da tt hi sa sac os t / be n e fiti s s u e ; ho we v e r ,p e r ha pst h e ys h oul df r oma ne n vi r onme nt a lv i e wpo i nt . Also, of growing importance is the issue that disposal of obsolete computer hardware creates environmental risks and concerns. 14. Wh a ta r et hec ompu t e re t h i c a li s s u e sr e g a r di n ga r t i fic i a li n t e l l i g e nc e ? Re s pons e :Onei s s uei st her e s pon s i bi l i t yf ort hec ompl e t e ne s sa n da c c ur a c yofa kno wl e dg eba s e ,a swe l la si t sma i n t e na n c et or e fle c tc ha n g e s .Fur t he r ,whe r ed oe st h ekn o wl e d g e c omef r om?Th i si s s u ebe c o me so fpa r t i c u l a ri mpor t a nc ewhe ne xpe r ts y s t e msr e pl a c et het a s ksof mi dd l ema na g e r s ,ma n yofwhomma yha v ebe e nus e ddur i n gt hekno wl e dg ea c qui s i t i onpha s e .

Thus ,a ni mpor t a nti s s uei swhoo wnst hec ode de xpe r t i s e .Al s o ,wh a ta r et h el e g a lr a mi fic a t i onsi f a ne xpe r ts y s t e mma ke sa ne r r orori fade c i s i onma deb ya ne xp e r ts y s t e mi snotf ol l o we d? 15. Wh a ta r et hec ompu t e re t h i c a li s s u e sr e g a r di n gune mpl o yme nta ndd i s pl a c e me nt ? Re s pons e :Then a t u r eofmos tj ob si sc h a n g i n ga sar e s ul tofc omput e rt e c hnol o gy .I nma n y c a s e s ,c e r t a i noc c upa t i o nsa r eb e c omi n gr a r e .Th ei s s u ei swhe t h e re mpl o y e r ss houl da s s umet he r e s p o ns i bi l i t yofr e t r a i ni n ge mpl o y e e s . 16. Wh a ta r et hec ompu t e re t h i c a li s s u e sr e g a r di n gmi s us eofc omput e r s ? Re s pons e :Thec omput e re t hi c a li s s ue sr e g a r d i n gmi s us eofc omput e r sa r et hec o p yi n gof pr opr i e t a r ys o f t wa r e ,us i n gac ompa n y ’ sc omput e rf orpe r s ona lbe ne fit ,a nds noo pi n gt hr ou gh o t he rpe op l e ’ sfil e s .Sh ou l de mpl o y e e sbea l l o we dt odope r s on a lwor kont h ec ompa n yc omput e r a f t e rwor khou r s ?Doe st hi sa d di t i o na lu s ei mpi n g eont her i ght soft hes of t wa r ec ompa n y ?I ft h e e mpl o y e ed oe sn otha v et obuyh a r d wa r ea n d/ ors o f t wa r ef o rhi mo rhe r s e l f ,t he na ne t hi c a li s s u e a r i s e sr e g a r di n gpot e n t i a ll os tpr ofit st ot h ei ndu s t r i e ss e l l i n gt he s epr o duc t s . 17.Wh a ti st h eob j e c t i v eofS t a t e me ntonAu di t i ngSt an da r d sNo.99? Re s po ns e :Theob j e c t i v eo fSAS99i st os e a ml e s s l ybl e ndt h ea udi t o r ’ sc ons i d e r a t i ono f f r a udi nt oa l lp ha s e soft h ea udi tpr oc e s s . I na dd i t i o n,SAS99r e qu i r e st hea udi t o rt op e r f o r m ne w s t e p ss uc ha sabr a i ns t o r mi n gd ur i n ga udi tpl a nni n gt oa s s e s st h epot e nt i a lr i s ko fma t e r i a l mi s s t a t e me ntoft hefina n c i a ls t a t e me nt sf r omf r a uds c he me s . 18. Wh a ta r et hefiv ec ond i t i o nst h a tc ons t i t ut ef r a udunde rc ommonl a w? Re s pons e : a .f a l s er e pr e s e nt a t i on b .ma t e r i a lf a c t c .i n t e nt d .j us t i fia bl er e l i a nc e e .i n j ur yorl os s 19.Na met h et hr e ef r a u dmo t i v a t i n gf or c e s . Re s po ns e : a .s i t u a t i ona lpr e s s u r e b .oppor t u ni t i e s c .e t hi c s 20. Wh a ti se mpl o y e ef r a ud? Re s pons e :Empl o y e ef r a u di sa na c tc ommi t t e db ynonma n a g e me nte mpl o y e e s .I ti s g e ne r a l l yde s i gne dt odi r e c t l yc on v e r tc a s horot he ra s s e t st ot h ee mpl o y e e ’ spe r s ona lbe ne fit . Employee fraud usually involves three steps: (1) stealing something of value (an asset), (2) converting the asset to a usable form (cash), and (3) concealing the crime to avoid detection. 21. What is management fraud? Response: Management fraud is committed by managers who are not subject to the same controls as employees. This fraud more insidious than employee fraud because it often escapes detection until the organization has suffered irreparable damage or loss. Management fraud typically contains three special characteristics: 1. The fraud is perpetrated at levels of management above the one to which internal control structures generally relate.

2. The fraud frequently involves using the financial statements to create an illusion that an entity is healthier and more prosperous than, in fact, it is. 3. If the fraud involves misappropriation of assets, it frequently is shrouded in a maze of complex business transactions, often involving related third parties. 22.Wh a tt hr e ef o r c e sc ons t i t ut et het r i a n g l eoff r a ud? Re s po ns e : a .s i t u a t i ona lpr e s s u r e s b .a v a i l a bl eo ppor t u ni t i e s c .e t hi c s( p e r s ona lc h a r a c t e r i s t i c s ) 23.Ho wc a ne xt e r n a la ud i t o r sa t t e mp tt ounc o v e rmot i v a t i o nsf orc ommi t t i n gf r a ud? Re s po ns e : Re s e a r c hb yf or e n s i ce xpe r t sa nda c a de mi c sha ss ho wnt h a tt hea udi t or ’ se v a l ua t i on off r a udi se nha nc e dwhe nt hef r a udt r i a n gl ef a c t or sa r ec o ns i d e r e d .Ob vi o us l y ,ma t t e r s ofe t h i c sa ndp e r s ona ls t r e s sdonotl e n dt he ms e l v e st oe a s yobs e r v a t i ona nda n a l y s i s .Topr o vi d e i n s i ghti nt ot h e s ef a c t or s ,a udi t or sof t e nus ear e d fla gc he c kl i s tc ons i s t i n goft hef ol l o wi n gt ype s ofque s t i o ns : •Dok e ye x e c u t i v e sh a v eunus u a l l yhi ghp e r s on a lde bt ? •Dok e ye x e c u t i v e sa ppe a rt obel i vi n gb e y on dt he i rme a ns ? •Dok e ye x e c u t i v e se n g a g ei nha bi t ua lg a mb l i n g ? •Dok e ye x e c u t i v e sa ppe a rt oa bus ea l c oholordr ug s ? •Doa n yo ft h ek e ye x e c u t i v e sa ppe a rt ol a c kpe r s o na lc ode sofe t hi c s ? •Ar ee c on omi cc ondi t i onsunf a v or a b l ewi t hi nt hec ompa n y ’ si ndus t r y ? •Doe st h ec ompa n yus es e v e r a ldi ffe r e n tba nks ,noneo fwhi c hs e e st h ec o mpa n y ’ s e nt i r efin a nc i a lpi c t ur e ? •Doa n yk e ye x e c ut i v e sha v ec l o s ea s s oc i a t i o nswi t hs uppl i e r s ? •I st hec ompa n ye xpe r i e nc i n gar a pi dt ur no v e rofk e ye mpl o y e e s ,e i t h e rt h r ou gh r e s i gna t i onort e r mi n a t i o n? •Doon eort woi ndi v i dua l sd o mi na t et hec ompa n y ? 24.Wh a ti sl a ppi n g ? Re s po ns e :La ppi n gi n v o l v e sac a s hr e c e i p t sc l e r ks t e a l i n gc u s t o me rpa y me nt st ha ta r ei nt he f or mofc h e c ks ,b yc a s hi n gt h ec he c khi m/he r s e l f .Ma n ye mpl o y e e svi e wt hi sa sbor r o wi n g ,s i nc e t he ypl a nt or e pa yi ts omeda y .La ppi n gofa c c ount sr e c e i v a bl ewo r ksa sf ol l o ws : Pe r i od1: Ca s hi e rr e c e i v e s$10 00f r omABCCompa n ya ndke e psi t . Pe r i od2: Ca s hi e rr e c e i v e s$10 00f r omXYZCo mpa n ya ndc r e di t sABCCompa n y ’ s a c c ount sr e c e i v a b l ea c c ount . Pe r i od3: Ca s hi e rr e c e i v e s$10 00f r omJ KLCompa n ya ndc r e di t sXYZCompa n y ’ s a c c ount sr e c e i v a b l ea c c ount . Ata n ygi v e nt i me ,a c c ou nt sr e c e i v a bl ei so v e r s t a t e db y$1000,a swe l la sc a s h.Th ee mpl o y e e k e e p s“ l a ppi n g”t h ea c c ount s , s oac us t o me rwi l lno tr e c e i v eade l i nque ntb i l ln ot i c e . 25. 25.Wh a ti sc ol l u s i on? Re s po ns e :Col l us i oni n v o l v e st woormo r ee mpl o y e e swor ki n gt o g e t he rt ope r pe t r a t ea f r a udul e nta c tt ha ti nt e r n a lc ont r o l swo ul dha v eo t he r wi s epr e v e nt e d.Fo re x a mpl e , t hei n v e nt o r y c ont r olc l e r ka ndt hewa r e hou s ec l e r kc o ul dc ol l u det os t e a li n v e nt or ya ndt h e na d j u s tt h e i n v e n t or yr e c or dst oc o v e r u pt h ea c t .

26.Wh a ti sb r i be r y ? Re s po ns e :Br i b e r yi n v ol v e sgi vi n g ,offe r i n g ,s ol i c i t i n g ,orr e c e i v i n gt h i n g sofv a l u et o i n flue n c ea noffic i a li nt hep e r f or ma nc eofh i sorhe rl a wf u ldut i e s .Offic i a l sma ybee mpl o y e db y g o v e r nme nt( o rr e gul a t or y)a g e nc i e sorb ypr i v a t eor g a ni z a t i o ns .Br i be r yde f r a udst hee nt i t y ( bus i n e s so r g a ni z a t i ono rg o v e r nme nta g e nc y)oft her i ghtt ohon e s ta ndl o y a ls e r vi c e sf r omt hos e e mpl o y e db yi t . 27.Wh a ti se c o nomi ce xt or t i on? Re s po ns e :Ec on omi ce x t or t i oni st heus e( ort hr e a t )o ff or c e( i n c l udi n ge c onomi c s a nc t i o n s )b ya ni ndi v i dua loror g a ni z a t i o nt oobt a i ns o me t hi n gofv a l ue .Th ei t e mofv a l uec oul d beafina nc i a lore c onomi ca s s e t , i nf o r ma t i o n,orc oope r a t i o nt oo bt a i naf a v o r a bl ede c i s i onon s o mema t t e runde rr e v i e w. 28.Wh a ti sc onfli c to fi n t e r e s t ? Re s po ns e :Ac onfli c to fi nt e r e s toc c u r swhe na ne mpl o y e ea c t so nb e ha l fofat hi r dpa r t y dur i n gt hedi s c ha r g eofhi so rhe rdut i e sorha ss e l f i n t e r e s ti nt hea c t i vi t ybe i n gpe r f or me d.Wh e n t hee mpl o y e e ’ sc onfli c tofi n t e r e s ti sun kno wnt ot hee mpl o y e ra ndr e s ul t si nfina n c i a ll os s , t h e n f r a udha soc c ur r e d . 29.Wh a ti sc omput e rf r a ud,a ndwha tt ype sofa c t i vi t i e sdoe si ti nc l ude ? Re s po ns e :Comput e rf r a udr e f e r st ous i n gha r d wa r ea nds of t wa r et odi v e r to ra c q u i r et he a s s e t so ft hefir m.I t sa c t i vi t i e si n c l ude :  Th e f t ,mi s us e ,ormi s a ppr opr i a t i ono fa s s e t sb ya l t e r i n gc omput e r r e a da bl er e c or dsa nd fil e s ,  Th e f t ,mi s us e ,ormi s a ppr opr i a t i ono fa s s e t sb ya l t e r i n gt hel o gi cofc o mpu t e rs of t wa r e ,  Th et he f to fi l l e g a lu s eofc omput e r r e a da bl ei n f o r ma t i o n,  Th et he f t , c o r r u pt i on ,i l l e g a lc op y i n g ,ori nt e n t i on a lde s t r u c t i o no fc omput e rs of t wa r e ,  Th et he f t , mi s u s e ,ormi s a ppr opr i a t i o nofc o mpu t e rha r dwa r e . 30.Atwhi c hs t a g eo ft heg e ne r a la c c ount i n gmo d e li si te a s i e s tt oc o mmi tc omput e rf r a u d? Re s po ns e :I ti se a s i e s tt oc ommi tc omput e rf r a uda tt h eda t a c ol l e c t i onorda t a e nt r ys t a g e . Fr a udsoft h i st yper e q ui r el i t t l eornoc omput e rs k i l l s .Att hi spo i nt , t hepe r pe t r a t o ronl yne e dst o unde r s t a ndho wt h es y s t e mwor k st oe n t e rd a t at ha ti twi l lpr o c e s s . 31.De finec he c kt a mpe r i n g . Re s po ns e :Che c kt a mpe r i n gi n v o l v e sf or gi n go rc ha n gi n gi ns omema t e r i a lwa yac he c kt ha t t heor g a ni z a t i o nha swr i t t e nt oal e gi t i ma t ep a y e e . 32.Wh a ti sb i l l i n g( orv e ndo r )f r a ud? Re s po ns e :Bi l l i n gs c he me s ,a l s okn o wna sv e n do rf r a ud,a r epe r pe t r a t e db ye mpl o y e e swho c a us et he i re mpl o y e rt oi s s ueapa yme ntt oaf a l s es uppl i e ro rv e ndo r .Thi si sa c c ompl i s h e db y s u bmi t t i n gi n v oi c e sf orfic t i t i ousg oodsors e r v i c e s ,i n fla t e di n v oi c e s ,ori n v oi c e sf orp e r s ona l pur c ha s e s . 33.De finec a s hl a r c e n y . Re s po ns e :Ca s hl a r c e n yi n v ol v e ss c h e me si nwhi c hc a s hr e c e i pt sa r es t ol e nf r o ma n or g a ni z a t i o na f t e rt he yha v ebe e nr e c or de di nt heor g a ni z a t i o n ’ sbooksa ndr e c or ds . 34.Wh a ti ss ki mmi n g ?

Re s po ns e :Ski mmi n gi n v o l v e ss t e a l i n gc a s hf r oma nor g a ni z a t i o nbe f or ei ti sr e c or de do n t heor g a ni z a t i o n ’ sbook sa ndr e c or ds .

Di s c us s i onQue s t i o ns : 1. Di s t i n g ui s hbe t we e ne t h i c a li s s u e sa ndl e g a li s s u e s . Re s po ns e :Somea c t sma yno tbea g a i ns tt hel a w, butma ybec ons i d e r e du ne t hi c a l . For e x a mpl e ,i tma yno tbei l l e g a lt os i mul t a ne ous l ya c c e ptt woj obo ffe r sv e r b a l l ywhi l et r yi n gt o de c i d ebe t we e nt h et woc o mpa ni e s .Ho we v e r ,e t h i c a l l y ,t hi st ypeofbe ha v i ori sc ons i d e r e dt obe unde s i r a bl e . 2. Somea r g uea g a i n s tc or por a t ei n v ol v e me nti ns oc i a l l yr e s p ons i bl ebe ha vi o rbe c a us et hec os t s i n c u r r e db ys uc hbe ha vi orp l a c et h eor g a ni z a t i ona tadi s a dv a nt a g ei nac ompe t i t i v ema r ke t . Di s c us st h eme r i t sa ndfla wsoft h i sa r gume nt . Re s po ns e :Thec o s t so...