Ethics Exam

Please list the 4 criteria Moses used to select the leaders from Exodus 18

1. capable men 2. fear God 3. trustworthy 4. hate bribes

What are the keys to successful corporate governance?

A good balance of all internal and external business responsibilities that are taken very seriously by everyone in the organization

What was the technique that the donkey used to get Balaam's attention?

Asked questions, to establish the viewpoint of the authority

How was the fraud discovered in the Rita Crundwell case in the City of Dixon, Illinois?

Assistant asked for all bank accounts when Rita was away and realized there was a bank account with large sums of money she was using on a very regular basis

Psalm 1

Blessed is the man that walketh in the counsel of the ungodly, nor standeth in the way of sinners, nor sitteth in the seat of the scornful. But his delight is in the law of the Lord; and his law doth he meditate day and night. And he shall be like a tree planted by the rivers of water, that bringeth forth his fruit in his season; his leaf also shall not wither; and whatsoever he doeth shall prosper. The ungodly are not so: but are like the chaff which the wind driveth away Therefore the ungodly shall not stand in the judgment, nor sinners in the congregation of the righteous. For the lord knoweth the way of the righteous: but the way of the ungodly shall perish

List and briefly describe the following from page 138 and 139 in the text Compensatory Justice Utilitarianism

Compensatory - Certain moral and legal rights should be honored Justice - Focus on fairness, to identify a fair/just course of action Utilitarianism - seeks to consider the results or consequences of an act or decision

Please describe the characteristics of the World's wisdom described in James chapter 3

Earthly, sensual, natural, devilish, boastful

What are the three prongs of the Fraud Triangle? Please be prepared to describe each in detail

Pressure Opportunity Rationalization

Please describe the characteristics of Biblical wisdom from the James chapter 3

Pure, peaceable, gentle, easily entreated, full of mercy, good fruits

Truth is always our _______________!

friend

Be prepared to answer questions from the Nehemiah discussion in class regarding Nehemiah's ethical leadership. Nehemiah chapters 1-6

ok

Be prepared to describe a situation in your life that you were asked to do something unethical or someone you knew was doing something unethical. Please apply the Steps to an Effective Appeal (from the course notes on Brightspace) to the situation. What did you do right? What would you do different if you had the opportunity to apply the Steps to an Effective Appeal

ok

What did Cynthia Cooper's mom teach her as a young girl that helped her through that difficult time at WorldCom?

perseverance

Define and describe internal controls and provide two examples

procedures, corporate behaviors, or policies that a company has in place designed to eliminate risk and avoid the loss of assets (ex. Signing off on reports, restricted access to certain files)

How did Cynthia Copper approach the investigation of the fraud at WorldCom?

she went to her partner and the CFO to ask them questions but they told her to leave it alone

According to Psalm 23:3, for the Christian, what should be the foundational reason for making ethical choices?

- "Lead me in the path of righteousness for his name's sake" - You are either bringing people closer or further away from the savior

List and describe the four levels of the ethical framework

- Biblical principles - Organizational policies - Professional standards - Laws, rules, regulations

What is the Sarbanes Oxley Act (SOX)? What led congress to pass this major piece of legislation?

- CEO and CFO get 25 years in prison if they sign off on inaccurate books/records - Response to corporate fraud scams

What are some of the common pressures that people face that may lead to unethical or illegal behavior?

- Financial difficulties - Family problems - Health issues - Fear of failure - Inadequate compensation

List and describe the Four Main responsibilities of Leadership according to the text - pages 100 and 101 in the textbook

- Fulfilling mission -Obeying the law - Being ethical - Good citizenship

What were the problems associated with the organizational structure that Moses implemented prior to receiving his father-in-law's advice?

- He was the only judge - Sat around all day waiting for him - Could have been using his skills/knowledge elsewhere

As we discussed in class, what is the overarching attribute of God? Why?

- Holiness, to be set apart from wrong - God has never done wrong, he is everything that is right in the world

What does Jeremiah 17:9 say regarding the condition of our hearts?

- Our heart is wicked and deceitful above all things - Need to understand that there will always be opportunities to act unethically

What were the leadership and governance failures that led to the Larry Nassar scandal?

- The school knew there was stuff going on but ignored it to keep the face of the university - The FBI completely turned a blind eye and made false claims

According to the text on pages 178-179, what are the four signs of an ethical collapse?

- Weak board of directors - Excessive pressure to meet the numbers - Fear and silence - Leaders doing good works in community to cover up dishonest practices

What pressure did Betty Vinson face at WorldCom? Who put the pressure on her?

- her boss and other management - family pressures to provide - liked having the money Who? - her boss was very hostile towards her

What should Betty have done differently when faced with the request to commit fraud?

- simply said no, quit her job, or went to the police

Please list the various ways in which we may subtly deceive others. (According to our discussion in class i.e., I Peter 2:22 and Revelation 14:5 what does it mean to be truthful in your heart?) What was one of the main characteristics that God considered when choosing those mentioned in Revelation 14:5?

- tone, not telling the whole truth, facial expression, lying to yourself, silence, cheating - no guile

Please list and describe the steps to an effective appeal

1. Prepared to make an appeal - in the right standing with organization 2. Search your heart - right motives 3. Provide and opportunity for sufficient consideration - timely manner 4. Gather facts objectively - accurate information 5. Emulate christ in your attitude 6. Choose your words wisely 7. Seek wise counsel 8. Always respond in a biblical Chrisklike manner 9. Be prepared to appeal again

What advice did Jethro, Moses' father-in-law, give to Moses regarding the best structure to lead the people?

To elect abled men to judge the people at all times so they can govern thousands

Why do companies have internal controls?

To protect themselves from fraudulent activity within the organization

List and describe the five reasons why employees do not report unethical behavior

1. No corrective action 2. No confidentiality of reports 3. Retaliation by superiors 4. Retaliation by coworkers 5. Unsure whom to contact