Corporate leadership has detected several instances of potentially illegal behavior by
employees of the company. The corporation is concerned about being held liable for the actions
of its employees.
Select the strategy that would be least effective in reducing the company's criminal
liability.
● A.)
It could document its efforts to develop a thorough and active compliance program to
deter legal violations.
● B.)
It could refuse to cooperate with any external investigations of its employees. ( correct )
● C.)
It could institute a biannual corporate-wide retreat to discuss issues surrounding criminal
behavior.
● D.)
It could establish an internal reporting system for employees with concerns about
criminal behavior they encounter.
An employee with a nuclear power company begins keeping a list of major safety violations that
she’s noticed at the power plant. Her supervisor is aware of these violations but is not acting on
them, so the employee goes to upper management to report what she knows. The company’s
code of ethics encourages employees to disclose any information the public has a right to know,
including such serious safety violations. However, the employee ends up losing her job.
Consider what you have learned about the factors that impact corporate culture. What is
the ethical strength of the corporation in the example?
● A.)
Strong, because now other employees know that if they point out an ethical issue, it will
result in change.
● B.)
Weak, because the corporation doesn't seem to have a way for employees to report
violations of the law.
