3 Ethics and the Law

Question 1

business law

Answer 1

reflecting society’s minimum norms and standards of business conduct

Question 2

Carrot and Stick

Answer 2

Carrot provides incentives to organizations to develop a strong internal control system to detect and manage illegal behavior.

Stick provides for severe punishment for organizations that are convicted of crimes and were not proactively managing legal compliance within the organization

Question 3

Hasnas’s 3 part injunction

Answer 3

1. do nothing that would help its employees defend themselves against criminal charges or discourage them for cooperating with the government
2. perform a through criminal investigation of its employees
3. turn the results of this investigation over to the government.

Question 4

Base fine is the greatest of the 3…

Answer 4

1. pretax gain from the crime
2. the amount of intentional loss inflicted on the victims
3. an amount based on the Sentencing Commission’s ranking of the seriousness of the crime

Question 5

Aggravating Factors (up)

Answer 5

Organization size, combined with the degree of participation, tolerance, or disregard for the criminal conduct by high level personnel or substantial authority personnel in firm

prior history of criminal conduct

role in obstructing or impeding an investigation

Question 6

Mitigating Factors (down)

Answer 6

organization must have in place an effective program to prevent and detect violations of the law.

the organization reports the criminal conduct promptly after becoming aware of the offense and before government investigation

Question 7

What managers should use when hiring

Answer 7

talent and ability