CH: 7 Corruption and Ethics in Global Business

integrity

adherence to moral and ethical principles; soundness of moral character; honesty. As a practical matter, a person of integrity knows what is right and holds the courage to do it

Foreign Corrupt Practices Act (FCPA)

a U.S. federal law that consists of two parts: an anti-bribery provision and a requirement to maintain an adequate internal control system over financial books and records

corporate social responsibility (CSR)

a company's obligations to society, including the welfare of people and places affected by company activities

Corruption Perceptions Index (CPI)

a report published each year by Transparency International, providing metrics to the potential corruption risk for most of the world's countries

internal controls

a system of rules and procedures designed to ensure the accuracy and reliability of financial and accounting information

Ponzi scheme

a type of fraud, also called a pyramid scheme, in which money received from later investors is used to provide returns to earlier investors, thus giving an appearance of a profitable investment

mark to market accounting

accounting practices that update the value of an asset to its current market levels