Bribes and Kickbacks in Business Ethics

Play an AI-generated podcast conversation about this lesson

What is the potential danger of a person approving their own budget or expenditures without oversight?

It can lead to fraudulent activities and misuse of funds. (correct)
It ensures transparency and accountability in financial matters.
It saves time and resources for the organization.
It increases employee morale and trust in management.

How does oversight relate to policy enforcement?

Policies are not influenced by oversight activities.
Oversight is irrelevant in policy enforcement.
Policies can be implemented without any oversight.
Oversight ensures policies are followed and enforced. (correct)

What is the purpose of promulgation in the context of policy implementation?

To prevent employees from knowing about any policies.
To keep policies secret from those they affect.
To create confusion among affected parties about policies.
To inform affected parties about the vision behind specific policies. (correct)

Why might stinging employees be a controversial technique for policy enforcement?

It can create resentment among employees if not handled well. (C) Signup and view all the answers

What is the significance of electronic employee monitoring in organizations?

It is a common practice for enhancing security measures. (C) Signup and view all the answers

Why is periodic measurement beneficial when implementing policies in a company?

To indicate whether the company is improving or declining in policy implementation. (D) Signup and view all the answers

What is a key difference between bribes and kickbacks?

Bribes are monetary gifts to induce an employee, while kickbacks are payments made by a supplier to a corporate buyer. (B) Signup and view all the answers

Why is it important for an employee to never reveal trade secrets?

To avoid legal consequences and protect confidential business information. (A) Signup and view all the answers

Which statement best explains the necessity of implementing guidance for exception handling?

Exception handling helps in maintaining control over inevitable exceptions. (A) Signup and view all the answers

What is one of the first three rules for exceptions?

Only a select few individuals should be permitted to request exceptions. (B) Signup and view all the answers

Why would proper documentation and auditing be important in the context of exceptions?

To ensure transparency and accountability when handling exceptions. (A) Signup and view all the answers

What is an example of a dangerous exception that should be reported to a manager?

An exception exceeding a specific danger level without appropriate authorization. (A) Signup and view all the answers

Why is the avoidance of compliance considered a serious red flag?

It indicates a deliberate circumvention of security. (C) Signup and view all the answers

What distinguishes log files from documentation?

Log files are in database form, and documentation is on forms or memos. (B) Signup and view all the answers

Why are regularly scheduled audits beneficial for companies?

They allow for comparison of results over time. (A) Signup and view all the answers

Why should companies install anonymous protected hotlines?

To reduce fear of reprisal among informers. (A) Signup and view all the answers

What distinguishes internal audits from external audits?

Internal audits are conducted by an organization on itself, while external audits are done by outside firms. (D) Signup and view all the answers

Why are anonymity and protection against reprisals important when using hotlines?

They minimize fear of retaliation and encourage informers to report breaches. (B) Signup and view all the answers