Chap 3 Flashcards
What is the Fraud Reduction and Data Analytics Act?
The Fraud Reduction and Data Analytics Act was passed by Congress in 2016 to identify and assess fraud risks in federal government agencies. The purpose of the law is to prevent, detect, and respond to fraud (including improper payments) in federal programs
When was the Dodd Frank Act Passed?
After alleged ethical lapses on Wall Street contributed to a financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act.Footnote Dodd-Frank made sweeping changes to the United States’ financial regulatory environment in an attempt to promote financial stability and protect consumers from abusive financial services practices.
What is the Sarbanes-Oxley Act?
Congress enacted the Sarbanes-Oxley ActFootnote (SOX) after Enron, a major energy company, engaged in risky financial maneuvers that resulted in the loss of billions of dollars to shareholders. SOX was designed to help reduce corporate fraud and unethical management decisions by setting up accountability measures for publicly traded companies. Company heads must verify that they have read quarterly and annual reports and vouch for their accuracy. SOX also requires companies to set up confidential systems so that employees and others can “raise red flags” about suspected illegal or unethical auditing and accounting practices.Footnote Laws cannot, however, codify all ethical requirements.
How may a company respond to misconduct allegations if a law is unclear regarding the matter?
When it is not entirely clear how a law applies, a company’s best defense to allegations of misconduct is to show that the firm acted honestly and responsibly under the circumstances.
What is the moral minimum?
The minimum level of ethical behavior expected by society, which is usually defined as compliance with the law
What are company codes?
Most companies attempt to link ethics and law through the creation of internal codes of ethics.Company codes are not laws. Instead, they are rules that the company sets forth and that it can enforce (by terminating an employee who does not follow them, for instance).
What are industry ethical codes?
These codes can give guidance to decision makers facing ethical questions. Violation of a code may result in the discipline of an employee or sanctions against a company from the industry organization. Remember, though, that these internal codes are not laws, so their effectiveness is determined by the commitment of the industry or company leadership to enforcing the codes.
What is triple bottom line theory?
A measure that includes a corporation’s profits, its impact on people, and its impact on the planet.
What is four part analysis?
Whether one believes in profit-maximization theory or corporate citizenship, ethics is important in business decision making. When making decisions, a business should evaluate each of the following:
The legal implications of each decision.
The public relations impact.
The safety risks for consumers and employees.
The financial implications.
What does the Fair Labor Standard Act say with relation to employee overtime work?
In the United States, payment for overtime work is strictly regulated under the Fair Labor Standards Act (FLSA). According to the Supreme Court, in this context, work is “physical or mental exertion (whether burdensome or not) controlled or required by the employer and pursued necessarily for the benefit of the employer and his business.”Footnote This definition was extended to off-duty work if such work is an “integral and indispensible part of [employees’] activities.
What is outsourcing?
The practice by which a company hires an outside firm or individual to perform work rather than hiring employees to do it.
What is the Foreign Corruption Practices Act say about U.S businesses and private officials?
