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Chapter 7 Employee Responsibilities
Chapter Seven - Employee Responsibilities
Review Questions
1. Explain how responsibilities can depend upon the relationships one has with other people.
2. How is the relationship between a person and her real estate agent or lawyer similar to the
relationship between an employer and employee? How are they different?
3. How might the narrow view of employee responsibilities be defended ethically? What are its
shortcomings?
4. What is a conflict of interest and when and under what conditions are they unethical? Do the
dual roles of auditor and consultant, as played by Arthur Andersen and other major accounting
firms, constitute an unethical conflict of interest?
5. Define trust and loyalty. Do all employees have a responsibility to be trustworthy? To be
loyal? Why does Duska believe that loyalty is inappropriate in the workplace?
6. In what way is business like poker? In what ways is it different?
7. What conditions do DeGeorge suggest are necessary to make whistleblowers ethically
permissible? When is it ethically required?
8. Explain at least two ethical objections to insider trading. What, exactly, was wrong (if
anything) with insiders selling Enron’s stock throughout 2001?
Chapter Seven - Employee Responsibilities
Discussion Questions
1. What were the responsibilities of the accountants at Arthur Andersen? To whom did they
owe these responsibilities?
2. Who was harmed by the insider trading of Enron executives? What harm, if any, was
done to employees who were prevented from selling Enron stock in their 401(k)
accounts?
3. Who was harmed by misvaluing of subprime mortgages? Who was benefited?
4. Who, if anyone, was harmed by Andrew Fastow’s dual roles as Enron’s CFO and as
managing partner of Enron’s SPEs?
5. What laws or policies would you recommend to prevent future Enrons?
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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 7 Employee Responsibilities
6. What laws or policies would you recommend to reform lending practices in high-risk
credit markets?
2
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
