Define:
Ethics
The set of moral principles or values that drives behavior and decisions, consisting of standards of conduct originating from a group or society.
What is the definition of business ethics?
A field of study that analyzes the practices within organizations to determine whether they are acceptable and is a set of principles or a code of conduct by which business activities are judged to be appropriate or questionable.
What are principles in the context of business ethics?
They are specific boundaries for behavior that should not be violated, such as human rights, freedom of speech, and fundamentals of justice.
What role do values play in business ethics?
They are beliefs and ideals that are socially enforced, such as teamwork, trust, and integrity, and they reflect what an individual considers important in the larger scheme of things.
Define:
Norms
(in the context of business ethics)
Standards of behavior that are judged to be proper and acceptable.
How should ethics be incorporated into an organization’s culture?
Ethics should be formally incorporated into an organization’s culture as part of the company’s code of conduct and informally through peer pressure or the tone set by the management team.
What is a conflict of interest?
A situation in which a public official, business executive, or other individual in a position of trust might receive personal gain for themselves or for a friend or family member from their official or professional actions.
Define:
Whistleblower
A person who reports wrongdoing or corruption, including concerns about safety, financial fraud, mistreatment of employees, or other improper actions.
What is a bribe?
Something that is given or offered to a person or organization in a position of trust to induce that agent to behave in a manner inconsistent with that trust.
What is business fraud?
Any intentional communication or action that deceives, manipulates, or conceals facts to provide the perpetrator with an unlawful financial gain and harm another or others.
What is asset misappropriation?
Any action that causes the company to expend cash for goods and services that do not benefit or provide value to the company.
It includes cash theft, inventory theft and misuse, accounts receivable fraud, fraudulent disbursements and fake suppliers, expense reimbursement schemes, check tampering, and payroll fraud.
What is manipulation of financial statements?
It includes fraudulent financial reporting and other actions that may or may not rise to the level of illegality but are unethical even if not illegal.
What is marketing fraud?
Dishonestly creating, promoting, pricing, and selling products, which can involve false and deceptive advertising, exaggerated claims, concealed facts, or outright lying.
What is consumer fraud?
Occurs when a consumer attempts to deceive a business to gain an unfair economic advantage over the business.
It includes friendly fraud, price arbitrage, return fraud, wardrobing, and returning stolen goods and asking for a refund.
What is friendly fraud in the context of consumer fraud?
It involves a consumer making a big purchase, receiving it, then claiming it was never received and requesting a refund.
What is price arbitrage in the context of consumer fraud?
It involves a consumer requesting a refund for a returned item when the item actually returned is a lower-priced but similar item to the one purchased.
What is return fraud in the context of consumer fraud?
It involves a consumer requesting a refund for a returned item, but instead of returning the item, replacing it in its box with something different, such as rocks, and shipping it back.
What does wardrobing mean in the context of consumer fraud?
It involves a consumer purchasing an expensive item of clothing, wearing it once for an event, then attempting to return it for a full refund.
What is financial misconduct?
Occurs when members of the financial industry take inappropriate risks that cause problems for the whole economy.
Examples include the subprime mortgage lending crisis and Ponzi schemes.
Describe a Ponzi scheme.
It lures investors with promises of high returns, but instead of earning legitimate returns, the perpetrator pays returns to earlier investors using funds from more recent investors.
What is intellectual property infringement?
The violation of someone else’s right to intellectual property they developed.
This includes copyright, patent, trademark, or design infringement.
What does espionage involve in a business context?
It includes the theft of proprietary information and the manipulation of IT systems.
List some examples of corruption.
- Illegal gratuities
- Bribes
- Kickbacks
- Conflicts of interest
- Economic extortion
What is fake charity fraud?
People are made to believe they are donating to a charity when the charity does not exist and the perpetrator keeps the money received.
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A.1. Comparative Financial Statement Analysis11
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A.2. Financial Ratio Analysis150
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A.3. Profitability Analysis37
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A.4. Advanced Financial Topics60
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B.1. Risk and Return Fundamentals57
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B.2. Long-Term Financial Management124
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B.3. Raising Capital and Financial Markets38
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B.4. Working Capital Management105
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B.5. Corporate Restructuring and Valuation39
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B.6. International Finance68
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C.1. Cost-Volume-Profit (CVP) Analysis52
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C.2. Marginal Analysis and Decision Making57
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C.3. Pricing Decisions86
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D.1. Enterprise Risk Management (ERM)80
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E.1. Capital Investment Analysis and Cash Flows34
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E.2. Capital Investment Methods and Risk97
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F.1. Business Ethics and Fraud30
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F.2. IMA Code of Ethics and Fraud Triangle14
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F.3. Organizational Ethics and Culture64
