bis law

Makea distinction between judgments based upon ethics and moral reasoning and the regulatory system.

Explain the difference between intentional torts and negligence.

What are the differences between assault and battery?

Why are these differences important?

Please use at least one research site to support your statements. The deliverable length requirement is three paragraphs. For additional research and APA information, please read Appendix A, B, C, G, and R.

Explain the differences and similarities of the types of invasion of privacy.

What do lemon laws,The Magnuson-Moss Warranty Act, and general warranties have in common?

What dangers do defective products pose to the public and the legal system?

Please use at least one research site to support your statements.

The deliverable length requirement is five pages. For additional research and APA information, please read Appendix A, B, C, G, and R.

Presentation

Presentation: The Ethics of Business: Accountability, Responsibility, and Risk Management

What do accountability, responsibility, and risk have to do with ethics in business? Everything. In today’s transparent society, there is no place for dishonesty, arrogance, or greed in the executive ranks of a corporation or its board. Increased media exposure and the speed of information exchange will ensure that the work of directors is scrutinized far greater than ever before.

Due to greater media and public scrutiny, and the accountability and legal liability inherent in executive roles, many qualified individuals are reluctant to take on the responsibility of being a director.

In a speech given by United States Treasury Secretary Paul H. O’Neill to the University of Chicago Graduate School of Business, Mr. O’Neill addressed the future leaders and future business leaders about the challenges they face (O’Neill, 2002).

In Mr. O’Neill’s opinion as to why corporate leaders have fallen, he had this to say, “…I think they strayed from their values in the anything-goes 90s, and by the time they realized how far they had strayed—after all, in their minds, everyone else was doing it, or would if they could—it was too late. Like frogs in boiling water, they didn’t feel the heat until they were cooked. There was nothing special about these people, except their hubris. They abandoned any pretense of moral direction to follow each dollar down its path, and figured they’d return to the main road before anyone noticed they were gone. But after the bubble popped, there was nowhere to hide” (O’Neill, 2002). Mr. O’Neill pointed out that while continuing with the accomplishments in the 90s-growth, productivity, and innovation-we need to actively work to make a new era of personal responsibility and public integrity.

In his conclusion, Mr. O’Neill stated, “In my view, the answer is simple: honest, accountable leadership. With leadership, everything is possible; without it, nothing is possible… Leaders must stand up and set an example not just for their employees, but for the general public as well. Honesty in business is the new patriotism. There is nothing better business leaders can do for this country right now than restore faith in the system that has made it great” (O’Neill, 2002).

What do scenarios like corporate financial collapse, environmental disasters, layoffs, and consumer law suits all have in common? These actions may not have to happen at all if corporations managed risk to their stakeholders and stockholders. Risk management is more important today than ever before. What’s the answer? Effective corporate governance standards.

According to Brian Brown, president of the Winnipeg Chapter of the Institute of Internal Auditors and director of corporate audit services at Winnipeg-based Agricore United, there are four pillars that will prevent corporate problems. The four pillars are: the board of directors, management, internal auditors, and external auditors.” Brown continues, “…to be effective, each of these four must operate independently. When they don’t, massive problems can occur” (Diplock, 2002).

Reference

s

Diplock, J. (2002). Clarity begins at home. Retrieved August 24, 2009, from New Zealand Securities Commission Web site: http://www.sec-com.govt.nz/speeches/2002/jds151102.shtml

O’Neill, P. H. (2002). Remarks to the Harvard Business School. Retrieved August 24, 2009, from U.S. Department of Treasury Office of Public Affairs Web site: http://www.treas.gov/press/releases/po3649.htm

Presentation

Presentation: Elements of White-Collar Crime

Introduction:

What do you think of when you hear the term white-collar crime? Most likely, you may think about the recent financial scandals of corporations and major bank fraud scandals, embezzlements, or telemarketing and internet scams. The U.S. Department of Justice combats antimoney laundering, antitrust violations, public corruption, financial institution fraud, defense procurement fraud, health care fraud, computer fraud, and other types of crimes. White-collar crimes apply to both individuals and organizations and can be prosecuted at both the state and federal levels. Laws, such as the Foreign Corrupt Practices Act, allow for prosecution for crimes occurring outside the United States.

Definitions

There are many definitions of white-collar crime. The first use of the term was by Edwin H. Sutherland. In his December l939 presidential address to the American Sociological Society, he offered a complementary and imprecise definition on white-collar crime. This meeting was a combined meeting of both the American Economic Association and the American Sociological Society (the American Sociological Association’s predecessor). Sutherland references white-collar crime as “Crime in the upper, white-collar class, which is composed of respectable, or at least respected, business and professional men” (Sutherland, 1940).

Sutherland, at least initially, implied that white-collar crime was a crime of social class and those who commit these crimes are in higher economic classes or social positions.

In 1949, Sutherland published a monograph titled White-collar Crime, to expand on his previous work in criminology. He combined both economic and sociological views, noting that white collar crime is found in all occupations and is more likely to be found in the financial sections of news pages than on the front page. Sutherland was concerned that white-collar crime did not get enough attention.

Sutherland’s 1949 publication included an updated version of his 1939 definition, stating that white-collar crime “may be defined approximately as crimes committed by person of respectability and high social status in the course of his occupation” (Sutherland, 1949).

Common Elements of White-collar Fraud

Although there are many definitions and classifications of white-collar crime, the following are some agreements on the elements:

White-collar crime occurs in an organizational or occupational context.

White-collar crimes are committed by organizations as corporate crimes or as individuals as employees.

White-collar crime is generally motivated by economic or occupational gain.

Much of white-collar crime is related to achieving some gain for the organization or the individual. The rewards can be identified in monetary terms.

White-collar crime does not generally include violence.

White-collar crime is not considered a violent act such as street crime or blue-collar crime.

White-collar crime offenders generally do not maintain a criminal self image of themselves.

White-collar crimes are often committed by ordinary people. The crimes are usually related to situational and organizational factors rather than a specific profile.

White-collar crime has, at least, until recently, received less attention than conventional street crime.

Much of the criminology literature and focus of law enforcement has been on street crime and more violent acts such as terrorism. Given the continuation of the global financial crisis of 2008, we can expect a greater emphasis and an increased attention on financial and white-collar crime. New legislation to regulate the securities industry may be enacted. A bill entered in 2009 for Supplemental Anti-Fraud Enforcement Markets Act (“SAFE Markets Act”) will materially increase funding for investigative and prosecutorial resources enforcement actions related to financial fraud, corruption, and other acts regarding the financial crisis.

References

Sutherland, E. H. (1940). White-collar criminality. American Sociological Review. 5(1), 1–12.

Sutherland, E. H. (1949). White-collar crime. New York: Dryden.

Presentation

Presentation: Torts, Negligence, Strict Liability, Criminal Law & Business Crimes

Tort is the French word for “wrong.” Tort law protects a variety of injuries and provides remedies for them. Tort damages are monetary damages that are sought from the offending party. They are intended to compensate the injured party for the injury suffered. They may consist of past and future medical expenses, loss of wages, pain and suffering, mental distress, and other damages caused by the defendant’s tortious conduct.

For members of society to peacefully coexist and commerce to flourish, people and their property must be protected from injury by other members of society. Federal, state, and local governments’ criminal laws are intended to accomplish this by providing an incentive to persons to act reasonably in society and imposing penalties on persons who violate them.

Under tort law, an injured party can bring a civil lawsuit to seek compensation for a wrong done to the party or to the party’s property. Many torts have their origin in common law. The courts and legislatures have extended tort law to reflect changes in modern society.

Torts can be:

Intentional against persons, which can include assault, battery, defamation of character, and so on;

Intentional against property, which can include trespassing to land or personal property;

Unintentional, in which the offender is liable for harm that is the foreseeable consequence of his or her actions;

Business-related, which can include failure to obtain a business license, unfair competition, or false advertising; or

Strict liability, which means that a participant in a covered activity will be held liable for any injuries caused by the activity even if he or she was not at fault.

A crime is any act done by an individual in violation of those duties that he or she owes to society and for the breach of which the law provides that the wrongdoer shall make amends to the public. Many activities have been considered crimes through the ages, whereas other crimes are of recent origin. Felonies are the most serious type of crime because they are inherently evil. Misdemeanors are less serious in that they are not inherently evil, but are prohibited by society. Violations are neither felonies nor misdemeanors, but are punishable by a fine.

There are several types of crimes. For example, white collar crimes are those that are prone to be committed by businesspersons that involve cunning and trickery rather than physical force. Inchoate crimes are that that are incomplete or that are committed by nonparticipants, such a aiding and abetting a criminal.

There are several constitutional safeguards for those accused of crimes.

The Fourth Amendment Protection Against Unreasonable Searches and Seizures

The Fifth Amendment Privileges Against Self-Incrimination

The Fifth Amendment Protection Against Double Jeopardy, which means that someone cannot be tried twice for the same crime

The Sixth Amendment Right to a Public Jury Trial, and

The Eighth Amendment Protection Against Cruel and Unusual Punishment

Article

Business Decision-Making and Ethics

Question 1: What are ethics, morals, and values, and how do they affect business decision making?

Answer 1: Ethics refer to a code of conduct for an individual or a group. Morals are habits that people develop according to their cultural development. Values are what an individual deems as important. The extent to which ethics play an important role in an organization depends on the organizational culture. Many firms have a code of ethics to help their employees make better decisions. The influence that organization has in ethical decision making depends on the following factors:

How important are ethics to the company?

How does top management view ethics?

What are the organizational consequences for unethical behavior?

Is there agreement among managers as to what is ethical and what is not?

What probability for a harmful outcome causes unethical actions to be monitored?

What is the length of time between the decision and the consequences?

What number of people must be affected before consequential actions occur?

Question 2: What are some issues that should be included in an organization’s code of ethics?

Answer 2: Issues that should be considered for an organization’s code of ethics are acceptable business practices, internal control behavior, decision-making policies, and open discussion for acceptable and unacceptable behavior. Many companies have these policies, but it is up to the managers to ensure that they are put into effect and enforced.

Question 3: When does an action become a criminal act?

Answer 3: Crimes are generally defined by mens rea (state of mind) and actus reus (an act or omission proscribed by law). Statutes require that mens rea and actus reus be present to constitute a criminal violation. There is a difference in the law between acts that are unethical, immoral, negligent, or just plain wrong and acts which are criminal. If an employee has been negligent—in other words, did not exercise due care—then a crime was not committed. If an employee knowingly committed an act, then the employee committed a crime. Like all other crimes, the intent of the alleged wrongdoer may be proven by either direct or circumstantial evidence. Direct evidence is evidence that is readily apparent and can be seen or heard. Examples of direct evidence are eyewitness statements and confessions. Circumstantial evidence is evidence that may be inferred from the facts and circumstances or chain of events that occur.

Question 4: What is white-collar crime?

Answer 4: The phrase white-collar crime typically refers to a type of crime committed by professionals using deception, as opposed to violent crimes that involve force. White-collar crimes, however, are listed in state and federal statutes and criminal codes right alongside of murder, drug trafficking, rape, robbery, and others. Examples of white-collar crimes are the following:

mail fraud

wire fraud

embezzlement

bank fraud

securities fraud

failure to report financial transactions as required by the Patriot Act or Internal Revenue Code

tax evasion

securities fraud

transport or employment of persons in violation of immigration statutes, public corruption, money laundering, and conspiracy to commit those crimes

Depending upon the type of crime, defendants face imprisonment up to thirty years without parole and fines up to $250,000 or more.

Question 5: What is the pyramid of corporate social responsibility?

Answer 5: There are four types of social responsibility that make up the pyramid of corporate social responsibility. They are economic, legal, ethical, and philanthropic. Economic social responsibility involves the motto of “be profitable” (Lamb, Hair, & McDaniel, 2003). Profit is the responsibility on which all other responsibilities rest. Legal social responsibility’s motto is “obey the law” (Lamb et al.,2003). Law is society’s codification of right and wrong. Philanthropic social responsibility suggests good corporate citizenship. There should be effort to contribute resources to the community and improve the organization’s quality of life.

Question 6: Are there guidelines for codes of ethics?

Answer 6: Yes, most professional organizations have codes of ethics. The American Marketing Association (AMA), Sales & Marketing Executives International (SMEI), and Society for Human Resource Management (SHRM) all have codes of ethics pertaining to their business focus.

Question 7: What are the three levels of ethical development?

Answer 7: Ethical development occurs in the following three stages of development:

Preconventional morality, which is at the most basic level, appears child-like, self-centered, and selfish.

Conventional morality encompasses societal conventions.

Postconventional morality represents the morality of the mature adult in which there is less concern about other people’s views toward him or her but a thoughtful introspection of his or her own desired morality.

Reference

Lamb, C. W., Hair, J. F., & McDaniel, C. M. (2003). Essentials of marketing (3rd ed.). Mason, OH: South-Western/Cengage.

Activity

Basic Moral Issues

Activity 1

Moral Reasoning and Moral Judgment

You are out jogging when a dog owner releases his dog from the leash. The dog bites you and you must go to the hospital and get stitches. The owner is apologetic, saying that he didn’t see you. Based on this information, you must make moral decisions in order to manage the legalities of this instance. Was the owner morally wrong? You must have a justifiable reason for making a moral judgment. Moral principles must apply to all. Click on the button to begin examining some moral issues.

For each statement decide whether the statement is moral or nonmoral.

Statement 1. The dog was vicious.

The correct answer is: moral. There was justifiable reason the dog bit you.

Statement 2. The owner lacked good judgment in releasing the dog.

The correct answer is: moral. You can make a moral judgment on the owner.

Statement 3. All dog owners are responsible for their pets.

The correct answer is: nonmoral. This is a reasonable rule.

Statement 4. Dog bites are painful.

The correct answer is: nonmoral. This is generally understood to be true. There are no bites that are not painful.

Statement 5. Owners of biting dogs are evil.

The correct answer is: moral. This is a moral judgment because it is operated from an impartial point of view.

Statement 6. Joggers are moving targets.

The correct answer is: nonmoral. This is a true statement.

Activity 2

Of the following statements, which are components of a moral issue?

Impartial perspective

Prejudice about the subject

The issue will result in harm or benefit

The issue conforms to a given law or rule

Issues related to free will

The correct answers are: A, C, and E.

Impartial perspective: “Correct. This component depends upon a person who has no direct relationship with the issue.”

Prejudice about the subject: “Incorrect. The subject’s actions will not be judged as morally right or wrong.”

The issue will result in harm or benefit: “Correct. This is a component of morality.”

The issue conforms to a given law or rule: “Incorrect. These are rules set by society and are changeable if they turn out to be moral issues, such as abortion.”

Issues related to free will: “Correct. Issues related to conscious choice are components of morality.

Activity 3

During a professional football game, one of the players steals the ball from the opposing team. The ensuing play causes a touch down. The losing team argues that because of the Divine Command Theory, the ball should not have been stolen because this goes against the teachings of the Bible, which states: “You shall not steal.”

Explain why this reasoning is right or wrong.

The model answer is: Wrong. The problems with using the Divine Command Theory is that not everyone would agree that stealing a ball in a sport constitutes an immorality. Not all religions are centered around God so other teams would dispute that reasoning. Often Bible commands are contradictory which makes moral judgment difficult.

Activity 4

Match the definition with the correct theory.

Definition 1: It is right to obey God and wrong to disobey God.

Divine Command Theory

Egoism

Utilitarianism

Kantianism

The correct answer is A: Divine Command Theory. While divine command theory is one of the most accepted moral theories, it breaks down in proof.

Definition 2: There is no moral duty to give up our own self-interest to help others.

Divine Command Theory
Egoism
Utilitarianism
Kantianism

The correct answer is B: Egoism. Moral egosim differs from phychological egoism in that it describes a theory of how people should behave, not, as psychological egoism, how people actually do behave.

Definition 3: One should increase pleasure and decrease pain for as many as possible.

Divine Command Theory
Egoism
Utilitarianism
Kantianism

The correct answer is C: Utilitarianism. Utilitarianism is among the most widespread consequentalist moral theories.

Definition 4: Humans can know when something is inherently wrong.

Divine Command Theory
Egoism
Utilitarianism
Kantianism

The correct answer is D: Kantianism. Kant would say: ‘Judging a wrong action to be right would be contradicting. Contradicting ideas are logically inconsistent, or wrong.’

References

Barcalow, E. (2007). Moral Philosophy: Theories and Issues (4th ed.). Belmont, CA: Thomson-Wadsworth.

Article

Article: Important White Collar Crime Laws

History of White-collar Crime

Although the term white-collar crime was coined in 1939, white-collar crime has existed since ancient times; however, it was only since the Industrial Revolution that such crimes gained widespread attention. Laws were passed to respond to various events. The following are listings of some of these significant laws:

Federal Mail Fraud Act of 1872: Congress made it a crime to use the mail as part of a fraud scheme. Congress included the term, “any scheme or artifice to defraud” in the Mail Fraud Act, codified as 18 U.S.C. § 1341. An additional section was called the Wire Fraud Act, codified as 18 U.S.C. § 1343. Federal prosecutions of persons for white-collar crimes, such as security fraud, public corruption, and commercial fraud use the Mail Fraud Act extensively.

The Interstate Commerce Commission Act (ICC) of 1887: The ICC was enacted to monitor the railroad industry setting of fair antidiscriminatory transportation pricing rates.

The Sherman Act of 1890: The Sherman Act was established to regulate restraint on trade and monopolies.

The Food and Drug Act of 1906: The Food and Drug Act was established to protect the public from deceptive practices of food and drugs manufacturers and dealers. The intention was to prevent adulterated and below standards quality of food and drugs from being manufactured and sold to consumers. It was also intended to protect consumers from false claims, misbranding, and labeling.

The Clayton Act of 1914: The Clayton Act was an extension of the antitrust regulations of the Sherman Act. It primarily focused on price discrimination that lessened competition or created monopolies. It also included regulation regarding mergers and acquisitions and other matters regarding competition and restraint of trade.

The Fair Trade Act of 1914: The Fair Trade Act established the Federal Trade Commission (FTC).

Securities Act of 1933: This is the Federal Securities Act, which is also called the Truth in Securities Act. This act requires that securities be registered and include required disclosures regarding the business’ risk factors and financial information. This act was enacted after the stock market crash and was intended to address much of the misrepresentations and deceit that contributed to the 1929 Stock Market Crash.

Securities Act of 1933: This act established the Securities and Exchange Commission (SEC) to administer the federal securities laws.

Two critical laws recently added were the following:

The Foreign Corrupt Practices Act of 1977: This act prevented bribing of foreign official and included accounting and internal requirements.

The Sarbanes Oxley Act of 2002: The Sarbanes Oxley Act was enacted in 2002 in response to major scandals such as Enron and WorldCom. The Sarbanes Oxley Act, or SOX, was the most significant change to the security legislation since 1933. The act includes several far reaching provisions for corporate governance. Some of the major provisions include certification of financial information by corporate officers, including attesting to the adequacy of internal control. The act is intended to document and improve internal controls to prevent and detect misleading and fraudulent financial reporting. It is also intended to hold corporate officers accountable rather than claiming ignorance of misleading and fraudulent financial reporting. The act also included the White-collar Crime Penalty Enhancement Act (WCCPA) of 2002, adding significant penalties to the law.

Presentation

Code of Ethics

Creating a Code of Ethics

When professional organizations create a code of ethics, the code’s purpose is to unify or compromise differences in morality. Different people may have different personal morals when dealing with a particular issue. Two people with differing personal values can share a set of values that they agree will promote their particular profession. Regardless of the nature of the profession, there are some basic concepts that generally span most professions, which may include protection of client’s privacy, avoiding conflicts of interest, being honest, and being competent in the profession.

The following will not focus on the philosophical definition of ethics. It will focus instead on the definition of ethics, “the standards that govern the conduct of a person, especially a member of a profession.” The following will examine the standards that govern the conduct of chemical dependency counselors. It will also examine why the rules are important, what the rules are, and ultimately, in understanding what motivates chemical dependency counselors to behave ethically. With this understanding, it may be easier for a new professional to make ethical decisions in those situations that can test an individual’s morals.

Why are the rules important? The rules are important because they promote a particular standard of ethical behavior. This means that the rules set a minimum standard, a baseline with respect to certain levels of acceptable behavior expected of all members of the organization. The rules are also important because they are the result of reasoned discussion and collaboration by successful professionals in the particular field and those interested in promoting ethical behavior. The process of creating an organization’s code of ethics can be a long and very involved process.

The result of that process is a set of rules relating to the professional conduct of members of the organization. The code of ethics not only sets a standard of behavior, it helps to ultimately shape the image and public opinion of that organization. The code of ethics will embody the values of that organization. These values are often presented in the mission statement of the organization. The code of ethics must establish standards that promote the achievement of the mission statement.

Many jurisdictions have adopted the ACA Code of Ethics; the code of ethics for the American Counseling Association. The code has a statement of purpose, which describes the five main purposes for the ACA Code of Ethics. In essence, the five main purposes are the following (ACA Code of Ethics, 2005):

Clarify ethical responsibilities for members.

Help “support the mission of the association”

Establish principles of ethical behavior and best practices.

A guide for ethical decision making.

A mechanism for processing complaints against members.

Reference

ACA code of ethics. (2005). Retrieved June 24, 2009, from American Counseling Association Web site: http://www.counseling.org/Resources/CodeOfEthics/TP/Home/CT2.aspx

Article

FAQ: Personal Legal Perspectives

Question 1: How do you acquire ownership rights of real and personal property?

Answer 1: You acquire ownership rights through a number of methods. These include:

Possession – a method of acquiring ownership of unowned personal property.

By purchase or production – for example, a manufacturer who purchases raw materials and produces a finished product owns that product.

By gift – a voluntary transfer of title to property without payment of consideration by the donee.To be a valid gift, three elements must be shown: 1) donative intent, 2) delivery, and 3) acceptance.

Will or inheritance – if a person who dies has a valid will, the property is distributed to the beneficiaries, pursuant to the provisions of that will.

Accession – this occurs when the value of personal property increases, because it is added to or improved by natural or manufactured means.

Confusion – this occurs if two or more persons commingle fungible goods.

Divorce – when a marriage is dissolved by a divorce, the parties obtain certain rights in the property of the martial estate.

Question 2: What are bailments?

Answer 2: A bailment is when someone delivers their property to someone else to be held, stored, delivered, or some other purpose. Title does not transfer. The elements necessary to create a bailment are:

Only personal property can be bailed;

There has to be a delivery of the possession; and

An agreement must be reached.

A bailment is different than a sale or a gift, because the title to the goods does not transfer to the bailee. Instead, the bailee must follow the bailor’s directions concerning the goods.

Question 3: When and why do companies file for bankruptcy?

Answer 3: The main purpose of bankruptcy is to enable the debtor to seek relief from debt, and to restart their operations. They do this when the debt load becomes impossible to service and to protect them from:

Abusive activities by creditors in collecting debts.

Prevents certain creditors from obtaining unfair advantage over other creditors.

Protects creditors from actions of the debtor that would diminish the bankruptcy.

Provides for the speedy, efficient, and equitable distribution of the debtor’s claims.

Preserves the business.

Question 4: What is the difference between Chapter 7 and Chapter 11 bankruptcy?

Answer 4: Under Chapter 7, the debtor’s property that is not exempted by the court is sold for cash and then distributed to the creditors to settle any unpaid debts.

Under Chapter 11, there is an opportunity to reorganize the debtor’s financial affairs under the supervision of the Bankruptcy Court. Normally the debtor is left in place to operate the business.

Question 5: What is an executory contract and how can it be avoided in bankruptcy?

Answer 5: This is a contract that has not yet been fully performed, and under certain conditions the court can approve their rejection by a debtor who is in bankruptcy. In general, unfavorable executory contracts will be rejected, and favorable executory contracts will be assumed. For example, a debtor-in-possession may reject an unfavorable lease. Court approval is necessary to reject an executory contract.

Activity

Activity: Accountability and Responsibility

What do accountability, responsibility, and risk have to do with ethics in business? Everything. In today’s transparent society, there is no place for dishonesty, arrogance, or greed in the executive ranks of a corporation or its board. Increased media exposure and the speed of information exchange will ensure that the work of directors is scrutinized far greater than ever before.

Due to greater media and public scrutiny, and the accountability and legal liability inherent in executive roles, many qualified individuals are reluctant to take on the responsibility of being a director. Boards are generally comprised of retired executives who were compensated very well by their organizations. However, directors on a board are not compensated so generously. So, it is harder today to get qualified individuals to oversee the operations of a corporation when the compensation is low and the risk to them, both personally and professionally, is high. When an individual does accept a position as a director and something within the corporation goes amiss, the excuse that the director was not aware of unethical actions by the corporation is no longer acceptable.

In a speech given by United States Treasury Secretary Paul H. O’Neill to the University of Chicago Graduate School of Business, Mr. O’Neill addressed the future leaders and future business leaders about the challenges they face. Regarding today’s environment, he stated, “Nothing is what it seemed—earnings statements, revenue projection, or the boundless, bump-less, New Economy” (2002). He pointed to the wild ride of the corporations of late that has caused this phenomenon.

In O’Neill’s (2002) opinion as to why corporate leaders have fallen, he had this to say:

I think they strayed from their values in the anything-goes 90s, and by the time they realized how far they had strayed—after all, in their minds, everyone else was doing it, or would if they could—it was too late. Like frogs in boiling water, they didn’t feel the heat until they were cooked. There was nothing special about these people, except their hubris. They abandoned any pretense of moral direction to follow each dollar down its path, and figured they’d return to the main road before anyone noticed they were gone. But after the bubble popped, there was nowhere to hide.

O’Neill pointed out that while continuing with the accomplishments in the 90s—growth, productivity, and innovation, we need to actively work to make a new era of personal responsibility and public integrity.

In his conclusion, O’Neill stated,

In my view, the answer is simple: honest, accountable leadership. With leadership, everything is possible; without it, nothing is possible… Leaders must stand up and set an example not just for their employees, but for the general public as well. Honesty in business is the new patriotism. There is nothing better business leaders can do for this country right now than restore faith in the system that has made it great.

What do scenarios like corporate financial collapse, environmental disasters, layoffs, and consumer law suits all have in common? These actions may not have to happen at all if corporations managed risk to their stakeholders and stockholders. Risk management is more important today than ever before. What’s the answer? Effective corporate governance standards.

According to Brian Brown, president of the Winnipeg Chapter of the Institute of Internal Auditors and director of corporate audit services at Winnipeg-based Agricore United, there are four pillars that will prevent corporate problems. The four pillars are: the board of directors, management, internal auditors, and external auditors. Brown continues, “to be effective, each of these four must operate independently. When they don’t, massive problems can occur” (as cited in Clarity Begins at Home, 2002).

References

Clarity begins at home. (2002, November 15). Retrieved from the Securities Commission of New Zealand Web site: http://www.seccom.govt.nz/speeches/2002/jds151102.shtml?print=true

From the Office of Public Affairs. (2002, October 22). Retrieved from the U.S. Department of Treasury Press Room Web site: http://www.ustreas.gov/press/releases/po3565.htm

Questions and Answers

Question #1

What are intentional torts? Unintentional torts? What types of torts exist?

An intentional tort is when the defendant intended to do harm, to act in a way that caused the plaintiff’s injuries. Examples include assault; battery; false imprisonment; defamation of character; slander; and libel. Unintentional torts are those usually occurring out of negligence, and hold a person liable for harm that is a foreseeable consequence of their action. It is more a situation of not doing what a reasonable person would do to prevent injury. Some types include infliction of emotional distress, professional malpractice, or just negligence per se.

Question #2

How can you determine if there has been professional malpractice?

This is a case in which the professional breaches a duty of care, and is liable for the injury caused by their actions. The textbook mentions the example of a doctor amputating the wrong leg as a basis for medical malpractice. For example, a doctor who amputates the wrong leg is liable for medical malpractice. A lawyer who fails to file a document with the court on time, causing the client’s case to be dismissed, is liable for legal malpractice.

Question #3

What is crime? Are there different types of crime?

Crime is defined as a violation of a statute for which the government imposes a punishment. These include felonies, misdemeanors, and violations. A felony, which is inherently evil, is the most serious type of crime. Most crimes against the person and some business-related crimes are felonies. Misdemeanors, not inherently evil but prohibited by society, are less serious. Many crimes against property are misdemeanors. Violations are crimes that are neither felonies nor misdemeanors, and are usually punishable by a fine.

Question #4

What are white-collar crimes?

White-collar crimes typically involve only cunning and deceit rather than violent or physical force. These crimes are called “white-collar” crimes, because they are typically perpetrated by businesspersons. (Businesspersons are often called “white-collar” workers because of the formal clothing (e.g., white shirts) typical of an office environment—as distinguished from “blue-collar” workers, who perform manual labor in work clothes.) Some examples of white collar crimes include:

Embezzlement: the fraudulent conversion of property by a person to whom that property was entrusted.

Criminal fraud: obtaining title to property through deception or trickery. Also known as false pretenses or deceit.

Bribery: when one person gives another person money, property, favors, or anything else of value for a favor in return. Often referred to as payoff or “kickback.”

Question #5

What is the procedure by which criminal acts are resolved?

There is a process by which criminal actions are resolved, and thus could serve as a deterrent. The legal process for suspected criminal acts include a pretrial action, such as arrest, indictment, arraignment, and possible plea bargaining. The end result is a criminal trial in which a jury must find the defendant guilty of the crime for which they are charged. All jurors must agree on the guilt or innocence of the defendant, or the jury is considered a hung jury.

Resource Links

Drug Testing

(http://www.dol.gov/elaws/asp/drugfree/drugs/screen92.asp)

This section of the U.S. Department of Labor web site has information on drug testing laws and guidelines. There is a brief discussion on why employers test for drugs and also links to other resources on the topic.

Drug Testing Information

(http://www.erowid.org/psychoactives/testing/testing.shtml)

Information about drug tests and drug testing

U.S. Department of Labor e-Laws

(http://www.dol.gov/elaws/asp/drugfree/drugs/screen15.asp?selection_list=)

This website include legal and ethical mandates that are often dealt with in the human resource department. It includes links in policy development,supervisor trainingemployee education, employee assistance program, and drug testing.

Governance & Accountability

(http://www.bsr.org/research/reports-by-category.cfm?DocumentID=5)

Download reports about some of the most current business ethics issues aligned with governance and accountability.

ABA Business Law Section

(http://www.abanet.org/buslaw/home.shtml)

The Business Law section of the American Bar Association provides resources for professional development and business law related articles.