Corporate Fraud and Internal Control Workbook: A Framework for Prevention

Chapter Six

Role of Ethics in Fighting Fraud

WHEN COMPANIES IGNORE the need to maintain a strong ethical foundation for themselves and their employees, they open up the floodgates and expose themselves to fraud.

QUESTIONS: FILL IN THE BLANKS

Refer to Chapter 6 in Corporate Fraud and Internal Control: A Framework for Prevention.

1. As applied in a business context, ethics are intended to provide organizations with the tools required to deal with ___________ since many business decisions have an ethical component.

2. Wheelright defined three fundamentals underlying the impact of ethics and decision making:

• Ethics involve questions requiring .
• Ethics are concerned with the ___________ of decisions.
• Ethics involve ___________ as to what is right and wrong.

3. The most fundamental schism in ethical theory is the division between ___________ , which claims that it is possible to know moral wrong from right ___________ , and ___________ , which claims that we cannot know ___________ because all such judgments are ___________ and influenced by cultural preferences.

4. The view that morality is culturally relative is known as ___________ and is supported by the differences in existing cultural views seen around the world.

5. The ___________ reflects a belief that there are effectively no choices.

6. The ___________ holds that actions should bring the most good to the most people.

7. ...