Term
| The new car and slippage (moving on/of lines) |
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Definition
| when you go from not wanting water in your car---to eating icecream |
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Term
| Levels of moral development |
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Definition
-morally clueless-not aware of the rules
-morally superior-those less gifted, not as good
-inherently moral-natural law/always follow your credo
-amoral technician-"law is law" "rules are rules" personal ethics are irrelevant
-morally schizophrenic-one set of ethics at work another in your personal life
-procrastinator-aware of ethical issues but worry about it later
-compartmentalizer/irrationalize- "I will only do this in certain situations"
-decentralized- denying ethical issues (conscience)
-detached-accutely aware of ethical issues but stay morally disengaged, depressed
-chameleon- adapts to ethics of people you're working with
-sycophant- adapts to the ethics of those in charge |
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Term
| Why corporations can't control chicanery(trickery) |
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Definition
Companies won’t face the real causes: pressures that push management to test the boundaries of the permissible.
Executives have more temptations and opportunities to do wrong.
Blame rogue employees or business schools
Won’t change organizational structure
Defines its problem as one of public relations |
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Term
| Inaffective methods-unethical conduct |
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Definition
Preaching ethics (Code of Ethics)
Distributing company Credo
Experts and Seminars. More like Sunday School that on-the-line or in-the fire- situations
Employees may know about Kant but they “can’t make it work outside the serene classroom. |
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Term
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Definition
| The executives are stuck b/w meeting their numbers and making a profit security exchange compensation(SEC) |
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Term
| 7 traits of ethical collapse |
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Definition
-pressure to maintain #'s
-fear&silence
-youngins and the bigger than life executives
-weak boards
-conflicts
-innovation like no other
-goodness in some areas atones for evil in others |
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Term
| What makes up a weak board |
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Definition
-lack of experience
-lack of time commitment
-conflicts everywhere
-failure to understand industry issues |
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Term
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Definition
1. establish better relationships with shareholder groups that have reform proposals
2. consider bifurcation of the design and certification functions of pay consultants
3. check w/compensation consulting firms to see what checks and balances they have implemented internally to guard against potential conflicts and independents
4. consider bold reforms in compensation packages looking at issues such as upper limitations, pay relationship limitations, kill clauses, and limits on or elimination of perks |
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Term
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Definition
The Sarbanes-Oxley Act of 2002
The Investor Confidence Act
The Public Accounting and Corporate Accountability Act
The Public Company Accounting Reform and Investor Protection Act of 2002 |
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Term
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Definition
| Public company accounting oversight board |
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Term
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Definition
The majority of the board must be made up of outsiders.
The audit committee of the board must be comprised entirely of independent directors. An independent director is defined as one who is not employed by the company (or was employed), is not related to an officer of the company, does not do business with the company, and has no personal compensation contracts with the company.
The compensation committee must also be made up of independent directors.
The compensation committee must establish and disclose clear policies for officer compensation and must approve all compensation packages for officers.
Boards can no longer make loans to officers.
The board must sign off on the financial statements.
The audit committee must certify the internal controls of the company as sufficient for ensuring the accuracy of the financial report.
Independent of management meetings.
Ethics training. |
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Term
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Definition
| (sign off on financial statements) |
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Term
| Financial statements that aren't GAAP must accompany a GAAP statement |
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Definition
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Term
| Stock transaction recording |
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Definition
| SOX (protects against)- groups that go in and protect fraud and insider trading |
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Term
| B of A legal issues- attorney client/privilege meopolis (Bank of America |
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Definition
| attorney/client privilege |
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Term
| Kozlowski- conflicts of interest |
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Definition
No consulting contracts
No advisory contracts
No work with subsidiaries
Must have at least one financial expert on the audit committee
Direct and independent contact with audit firm
Procedures for notification of internal control problems |
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Term
| Boards relationship with Kozlowski |
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Definition
$150 million stolen
upper management (some) admitted they had done wrong |
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Term
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Definition
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Term
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Definition
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Term
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Definition
-1934 Securities Exchange Act
Secondary markets
Reporting ($10M or more in assets and 500 or more shareholder or NSE listing): 10K, 10Q, and 8K
Insider trading
Fraud |
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Term
| Bank of America legal issues |
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Definition
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Term
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Definition
| the TYCO employee loan association-Kozlowski was taking that money for his personal use |
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Term
| According to Milton Friedman, an executive imposes taxes on shareholders when: |
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Definition
| He or she uses corporate funds for social causes |
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Term
| Which of the following is not considered a stakeholder? |
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Definition
Competitors
(suppliers, customers, and shareholders all are) |
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Term
| Nobel economist Milton Friedman said that the social responsibility of a business is to make money for its shareholders. Into which school of social responsibility would you place Dr. Friedman? |
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Definition
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Term
| List/explain the four reasons why Robert Maxwell believes that "people who desire to find a good, honest standard of ethical behavior to live by can find it in the "Golden Rule" |
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Definition
1) Common sense/accepted by everyone- hard to ask for what you won't give, no one wants to be treated badly
2) Easy to understand- no rules, every problem won't be solved instantly
3) Win-win- both sides are treated well, no losers
4) Compass- eliminates uncertainty, brings inner peace, your moral compass points in the same direction always |
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Term
| Tocqueville was a proponent of socialism (T/F) |
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Definition
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Term
| Robert Halfon sees activists movements as a threat to corporate property rights (T/F) |
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Definition
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Term
| Outsourcing manufacturing jobs from the US to developing countries is example of a utilitarianism application (T/F) |
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Definition
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Term
| Who said "All business, forewarned, should be proactive, not reactive. They must be prepared to fight fire with fire and, if necessary, should be prepared to take their case all the way to the court?" |
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Definition
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Term
| Whom does Majorie Kelly believe should be rewarded the most for the creation of wealth in a corporation? |
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Definition
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