Business and Society wK 8

1.      According to the text, recent disclosures of corporate scandals and unethical business practices have heightened the government and society’s attention to exorbitant CEO salaries. Examine the fundamental rationale behind corporations’ decisions to pay executives such high salaries. Based on the discussion case in Chapter 14, judge whether the mandate under Section 951 of the Dodd-Frank Act sufficiently protects stockholders’ rights and interests from been abused by business executives. Justify your response.

2.      From the e-Activity, give your opinion on whether or not the companies responsible for the product recalls that you researched addressed those recalls in an effective manner. Suggest the manner in which manufacturers, retailers, and consumers should share responsibility for the safe use of the consumer products you researched. Provide a rationale for your response.

a.      E-activity: Go to the Consumer Product Safety Commission Website, located at http://www.cpsc.gov, to research the circumstances behind two (2) recent product recalls.

3.      *From the e-Activity, describe the ways in which the fraud occurred, and identify which accounts were impacted in the case you researched. Describe the accounting method used to commit the fraud, where in the accounting process the fraud occurred, and the impact to users of financial statements. Provide specific examples in your response.

1. Use the Internet to research at least three (3) recent cases of fraud in the workplace.

4.      Employee theft is a major problem in the U.S. retail industry. Information obtained from SecurityInfoWatch reported that 23 major retailers alone apprehended over 1.1 million shoplifters and dishonest employees, and recovered more than $189 million from these thieves in 2012. Identify at least four (4) internal controls effective in mitigating employee theft and / or fraud. Provide at least two (2) examples of internal controls that could be implemented to reduce theft in the U.S. retail industry.