COMM 103 Chapter Notes - Chapter 5: Resource Management, Consumerism, Employee Benefits
Ponzi scheme: investment fraud involving payment to existing investors by funds of new investors. Identify whether ethical dilemma exists: gather facts about situation, evaluate alternatives from various ethical positions, choose the best alternative and test with a valued adviser. Ethics and culture: board of directors sets ethical guidelines, which management executes, zones of decision-making, green, grey, red, actions for bod, clearly define boundaries of acceptable behaviour and create evaluation standards, clearly communicate through code of conduct. Senior management must buy into it: appoint representatives to audit performance and review compensation packages, create supportive mechanism for whistleblowers so employees are not penalised. Interact with management/external agencies to discuss issues and better interests of all. Regulating ethics: requirement for ethics laws grew following financial crisis of 2008, canada mostly uses sarbanes-oaxley, g20 agreed to develop global standards, fraud triangle, opportunity, motive, attitude/rationalisation, forensic accounting.