Asked by Donald Winters on May 09, 2024
Verified
Risk compartmentalization occurs when
A) companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically.
B) all profit centers within a corporation are aware of the code of ethics.
C) all profit centers within an organization become aware of the consequences of competitors' actions.
D) various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.
E) ethics and compliance programs reduce the risk of misconduct.
Risk Compartmentalization
The division of risks into different categories or compartments in an organization, which can lead to disjointed risk management and a failure to recognize the aggregate extent of risks.
Profit Centers
Individual units or divisions within a company that are responsible for generating their own revenue and profit.
Code of Ethics
A document outlining the principles and values that guide the behavior of individuals within an organization, setting standards for ethical conduct.
- Acquire knowledge of the ethical considerations in international commerce.
Verified Answer
Learning Objectives
- Acquire knowledge of the ethical considerations in international commerce.
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