Reading 2: Ethics and the Law

Question 1

morals

Answer 1

beliefs about behavior as judged by society

Question 2

ethics

Answer 2

the philosophical study of what is right and wrong, good and bad

Question 3

values

Answer 3

beliefs or standards considered worthwhile, and from which a society derives is moral rules

Question 4

Sarbanes-Oxley Act

Answer 4

a federal statute that placed an onus on upper management to monitor closely the financial dealings and disclosures of their firms and that established a board to oversee accounting practices in the United States.

Question 5

duty-based reasoning

Answer 5

ethical reasoning that is based on consequences of actions

Question 6

outcome-based reasoning

Answer 6

ethical reasoning based on creating the greatest good for the most people

Question 7

code of ethics

Answer 7

a set of rules that a company or other group adopts to express principles of ethical behavior that are expected of its personnel

Question 8

stakeholders

Answer 8

people or groups who may be affected by a firm’s actions or decisions

Question 9

whistleblower

Answer 9

an employee who discloses to the government, media, or upper management that the company is involved in wrongful or illegal activities