Explain how integrity applies to various stakeholder groups, including owners, customers, employees, the community and the government.
What will be an ideal response?
Some of the points that should be made are the following:
·Integrity is behaving in a way that is consistent with the noble values, beliefs, and principles an entrepreneur claims to hold.
·High standards of integrity require an honest attempt to promote the interests of all the owners, which include a commitment to financial performance and protection of the firm's reputation.
·Small businesses must care for their customers as individuals, and the marketing of their products or services must "tell the truth, the whole truth and nothing but the truth."
·A firm's integrity is also expressed by the value it places on its employees. Showing proper appreciation for subordinates as human beings and as valuable members of the team is an essential ingredient of managerial integrity.
·An ethical business is one that acts as a good citizen in the community, starting with job creation and adding to the local tax revenues, but also giving back even more to the community in return for the local support it enjoys.
·A small business with integrity will report fully and properly the income and expenses of the business and avoid concealing income or claiming personal expenses as a business expense. Further, it will comply with all laws and regulations of the various governmental jurisdictions within which it operates.
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According to the study mentioned in the text, which of the following is true about fraud perpetrators compared to property offenders?
a. Fraud perpetrators are more likely to be caught than property offenders b. Fraud perpetrators are more educated than property offenders c. Fraud perpetrators are more likely to be men than property offenders d. Fraud perpetrators are much younger than property offenders
How does Congress determine the federal minimum wage level?
a. congressional vote based on proposed raises b. indexed to inflation c. indexed to poverty threshold d. matched to highest state minimum wage levels
What was the main argument of APB Opinion 8?
a. ERISA did not create a pension liability except in the likelihood of plan termination. b. The cost of providing pension benefits should be spread over the remaining service life of employees. c. Pension expense should be computed using any one of five acceptable accumulated benefit methods, regardless of cash contributions. d. The balance sheet should report unfunded vested benefits.
Explain the meaning of the following ethics traps: rationalization, conformity, following orders, lost in a crowd, and blind spots